By Dean Seal
Affiliates of KSL Capital Partners have agreed to acquire luxury hotel owner Hersha Hospitality Trust in a $1.4 billion all-cash transaction.
Hersha said Monday that the private-equity firm’s affiliates will acquire outstanding Hersha shares for $10 apiece, marking a 60% premium over their closing price last Friday. Holders of Hersha’s preferred shares will receive $25 in cash per share.
The deal has been approved by Hersha’s board and is expected to close in the fourth quarter.
Hersha’s shares soared 56% to $9.77 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
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