Hotel Workers Union Questions KSL's $1.4 Billion Hersha Deal

UNITE HERE Local 26, the hospitality workers union, released a report on October 13, 2026 challenging how KSL Capital Partners has financed and repeatedly refinanced much of the former Hersha Hospitality Trust hotel portfolio, according to a statement distributed by Business Wire.

KSL Capital Partners VI completed its acquisition of Hersha, a publicly traded hotel real estate investment trust, on November 28, 2023 in a transaction valued at roughly $1.4 billion.

The union's report puts financing and closing costs tied to those debt transactions at more than $169 million. It also counts $93.7 million in expected severance payouts to Hersha executives tied to the change of control.

On asset sales, the report says the five portfolio hotels KSL has sold so far fetched $72.9 million below their "as is" appraised values and $120.2 million below their stabilized appraised values.

Citing more than $250 million in what it describes as added costs, along with the below-appraisal sales, the union questions when limited partners in the fund can expect a return. The report also directs its argument at current investors in KSL Capital Partners VI and prospective investors in the firm's newer vehicle, KSL Credit Opportunities V.

This story was first reported by Business Wire.