Hersha Hospitality Downgraded After $1.4B KSL Acquisition, Analyst Calls It 'End Of An Era'
Portfolio Pulse from Lekha Gupta
Hersha Hospitality Trust (HT) has been downgraded to Neutral from Buy by B.Riley Securities analyst Bryan Maher, following the announcement of HT's acquisition by KSL Capital Partners for $10 per share. The all-cash transaction is valued at approximately $1.4 billion, representing a premium of approximately 60% over Hersha's closing share price on August 25, 2023. HT shares are currently trading higher by 0.31% at $9.85.
September 01, 2023 | 6:02 pm
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NEUTRAL IMPACT
Hersha Hospitality Trust's stock has been downgraded following its acquisition by KSL Capital Partners. Despite the downgrade, the stock is trading higher.
The downgrade by B.Riley Securities is a significant event for Hersha Hospitality Trust. However, the stock is trading higher, indicating that the market may have a different view on the acquisition. The acquisition by KSL Capital Partners, a company with deep expertise in owning hotels and resorts, could potentially bring positive changes to Hersha's operations.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100