PHILADELPHIA, Pa., September 8, 2003 � Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) that owns mid-priced segment hotels in the northeastern United States, announced today that its joint venture with CNL Hospitality Properties, Inc., an Orlando-based REIT, purchased the newly-opened, 144-room Hampton Inn-Chelsea in Manhattan.  The acquisition is the first for HT/CNL Metro Hotels, the strategic investment and joint venture announced in April 2003.  The joint venture has the capacity to acquire approximately $150 million of

Hampton Inn New York - Chelsea - Manhattan   108 W. 24th Street New York, NY

�The Hampton Inn Chelsea is the prototypical property we seek � newly-built, mid-market hotels in northeastern U.S. markets with high barriers to new competition,� said Hasu P. Shah, Chairman and Chief Executive Officer of Hersha Hospitality Trust.  �New York has one of the highest barriers to hotel development in the nation and the highest historical RevPAR. We believe the property will quickly gain a competitive edge as Manhattan�s first Hampton Inn, offering its guests quality and value and its owners strong, sustainable cash flows.� 

Located on 24th Street, just off of 6th Avenue, the 20-story hotel features boutique furnishings designed by leading New York City design firm, VegaP Architects, and an intimate outdoor patio.  Other amenities include high-speed Internet access in guest rooms and public areas, a fitness center, complimentary local telephone calls and complimentary daily breakfast. 

Hersha Hospitality Trust is a self-advised real estate investment trust that owns premium limited and full service hotels in the northeastern United States with leading national franchise affiliations. The company focuses on acquisition and joint venture opportunities in primary and secondary markets near or in major metropolitan markets. The company currently owns 19 hotels in New York, Pennsylvania, Maryland and Georgia. 

CNL Hospitality Properties, Inc. is an affiliate of CNL Financial Group, Inc. and specializes in investing in quality hotels and resorts. Through partnering with several top-tier lodging companies, CNL owns interests in a portfolio of 126 hotels with more than 26,000 rooms in 37 states with 19 nationally recognized hotel brands. For more information, please visit www.cnlonline.com.

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements.