Hersha Hospitality Trust has agreed to acquire the under-construction 175-key Hyatt Union Square in New York City for US $104.1 million, or about US$595,000 per key.

The hotel is expected to open next year.The 4-star hotel features a historic facade and 23-ft. lobby ceilings, an upscale restaurant, a destination lobby bar, an exclusive rooftop lounge, private terraces, a fitness facility and a pool.The transaction, which is expected to close shortly after the seller completes the hotel's construction, consists of US$36 million cash paid to the seller, the cancellation of a US$10 million development loan and its accrued interest, and the assumption of two mortgage loans secured by the hotel worth US$55 million in principal.Hersha sourced this off-market transaction through its development loan program. The hotel will be managed by Hersha Hospitality Management LP.The 4-star hotel features a historic facade and 23-ft. lobby ceilings, an upscale restaurant, a destination lobby bar, an exclusive rooftop lounge, private terraces, a fitness facility and a pool.