Hersha Hospitality Trust has sold a 70% stake in seven Manhattan hotels to Chinese investment firm Cindat Capital for $571.4M.

The deal covers seven limited service hotels operating under the Hampton Inn, Holiday Inn and Candlewood Suites brands, located in Herald Square, Chelsea, Times Square and the Financial District.

The hotels have a total of 1,087 rooms, meaning Cindat paid roughly $526k per key in the deal, reports The Real Deal.

Cindat and Hersha will form a new partnership, with Cindat the preferred JV partner and Hersha retaining a 30% equity interest. The deal is expected to close by the end of the first quarter.

Hersha expects to net $300M from the sale and plans to use roughly $175M to acquire two Washington, DC, hotels and a Sanctuary Beach Resort in Monterey, CA, as part of a 1031 exchange.

Hersha still fully owns 10 other hotels with a total of nearly 1,400 rooms in NYC, including the Hyatt Union Square. Cindat recently bought a $135M equity stake in Bizzi & Partners Development’s planned luxury condo tower at 565 Broome St. [TRD]