SANTA BARBARA, CALIF. — Hersha Hospitality Trust has acquired the 122-room Hotel Oceana in Santa Barbara for $41.7 million. The resort is located at 202 W. Cabrillo Blvd. near Santa Barbara Harbor. The hotel reported a 92 percent occupancy rate in 2013.
“We recently completed the sale of 16 non-core assets, and the completion of the Hotel Oceana acquisition is further indication of our commitment to prudently recycle capital,” says Jay H. Shah, Hersha’s CEO. “These initiatives have resulted in a refined pure play transient focused portfolio with exposure to the highest demand gateway markets in the United States. Together with our properties in San Diego, Los Angeles and the San Francisco Bay Area, the company’s West Coast assets are positioned to leverage solid growth fundamentals and limited supply growth in some of the leading markets on the West Coast.”
The Oceana acquisition was funded with a portion of the net proceeds from the non-core portfolio sale. It included the assumption of $24.9 million in mortgage debt at a fixed rate of 4.4 percent that will mature in 2023.