Hersha Hospitality Trust, a Philadelphia based investment firm, has acquired the Annapolis Waterfront Hotel. This comes one day after it was announced that the Westin Annapolis hotel was sold to a different Texas investment firm.
The 150 room property was sold for $41.5 million dollars.
“We are pleased to acquire the Annapolis Waterfront Hotel, expanding our Mid-Atlantic cluster, at an attractive economic capitalization rate of 8.7% and 10.4x EBITDA multiple. The location of the hotel in the pedestrian scale core of the city is irreplaceable. The Hotel is situated on the Harbor adjacent to the town square, the Annapolis Yacht Basin and the Annapolis Yacht Club, at the base of Main Street’s restaurant and bars. It is a short 3-block walk from the Main Gate of the United States Naval Academy, all local tourism attractions and demand generators. This unique waterfront location provides a competitive advantage that enables the hotel to achieve strong occupancies and premium rates in a high barrier-to-entry marketplace,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
The Annapolis Waterfront Hotel was converted to an Autograph Collection in 2015. The property boasts 15,000 square feet of function space, half of which is allocated to the hotel’s outdoor terrace, along with a leased waterside restaurant and bar. In addition to the F&B lease, the asset also generates lease income through onsite parking, slip rental fees and various antenna leases.
Hersha owns 49 hotels including the Ritz-Carlton in Georgetown.