UNITE HERE Local 26 Releases Report Critical of KSL Capital Partner Purchase and Multiple Financings of the Hersha Hospitality REIT

For best results when printing this announcement, please click on link below: UNITE HERE Local 26 Releases Report Critical of KSL Capital Partner Purchase and Multiple Financings of the Hersha Hospitality REIT On November 28, 2023, KSL Capital Partners VI closed on the purchase of the publicly traded hotel REIT Hersha Hospitality Trust in a roughly $1.4 billion deal. UNITE HERE Local 26 issued a report today that questions key decisions made by KSL Capital Partners in its financing, refinancing and re-refinancing of large portions of the Hersha Hospitality Portfolio. The report finds that Hersha has paid over $169 million in financing and closing costs related to the transactions, and an additional $93.7 million in anticipated golden parachute payments to Hersha executives. The report also finds that the five portfolio properties that KSL has sold brought in $72.9 million less than their “as is” appraisals and $120.2 million less than their “stabilized” appraisals. With over $250 million in added costs, and below appraisal property sales, the report asks when Limited Partners are likely to see a return on this investment. The report should raise questions for LPs in KSL Capital