Hospitality Properties raises $357.7M in offering

NEWTON, Mass. (AP) — Hospitality Properties Trust has raised $357.7 million from a public offering of 14 million shares.

The real estate investment trust said Tuesday that it priced the offering at $25.55 per share. This is a 6 percent discount to the Monday closing price of $27.19.

Shares of Hospitality Properties Trust dropped $1.09, or 4 percent, to $26.10 in morning trading. Over the past year, the stock has traded in a range of $21.13 to $27.99.

The Newton, Mass., company expects to use the offering's net proceeds to pay back outstanding amounts under its unsecured revolving credit facility and for general business purposes.

Hospitality Properties Trust is giving the underwriters a 30-day option to buy up to an additional 2.1 million shares.

The offering is expected to close on Friday.