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BMO ‘cannot entirely rule out another’ Hersha Hospitality bid, ups target to $10

BMO ‘cannot entirely rule out another’ Hersha Hospitality bid, ups target to $10

BMO Capital analyst Ari Klein raised the firm’s price target on Hersha Hospitality to $10 from $7 and keeps a Market Perform rating on the shares after Hersha agreed to be acquired by KSL for $10 per share. With 16 lodging REITs and relatively small market caps, the lodging REIT sector “has long been viewed as ripe for consolidation,” says the analyst, who “cannot entirely rule out another bidder” for Hersha. However, the firm does not expect other lodging REITs to get involved, the analyst added.

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