PHILADELPHIA— Through its joint venture with Waterford Hospitality Group, LLC, Hersha Hospitality Trust has purchased an interest in six hotels scattered across Connecticut and Rhode Island. The stabilized properties, which contain a total of 773 rooms, are the 285-room Mystic Marriott Hotel & Spa in Groton, CT; 78-key Danbury Residence Inn in Danbury, CT; 94-unit Southington Residence Inn in Southington, CT; 144-key Norwich Courtyard by Marriott and Rosemont Suites in Norwich, CT; 92-unit Warwick Courtyard by Marriott in Warwick, RI; and 80-room Waterford SpringHill Suites in Waterford, CT. The firms’ joint venture, called Mystic Partners, LLC, is also now under contract to buy three other hotels from Waterford. The assets include the 392-key Hilton Hartford in Hartford, CT; 133-room Mystic Residence Inn in Mystic, CT; and 409-key Marriott Hartford Downtown in Hartford, CT. The Hilton- and Residence Inn-related deals are expected to close during the third quarter. Meanwhile, the Marriott Hartford deal is scheduled to close in the fourth quarter once the property officially opens. The combined value of all nine hotels is about $250 million. Hersha will have a 66.7% interest in the first six hotels. Waterford will hold a 33.3% ownership interest in the portfolio and will continue as the hotels’ operator. The joint venture now plans on placing $160 million in debt on the hotels before the end of 2005.
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