Jay H. Shah Promoted to Chief Executive Officer
|PHILADELPHIA - Dec. 14, 2005 -- Hersha Hospitality Trust (AMEX: HT
- News), a real estate investment trust (REIT) and owner of nationally
franchised, upscale and midscale hotels, today announced several changes
affecting the Company's executive staff, effective January 1, 2006.
Mr. Jay H. Shah has been promoted to Chief Executive Officer
and has been elected to serve as a member of the Board of Trustees of the
Company. Mr. Jay H. Shah is the Company's current President and Chief Operating
Officer. Mr. Neil H. Shah has been promoted to President and Chief
Operating Officer from Executive Vice President with the Company. Mr. Hasu
P. Shah will retire as the Company's Chief Executive Officer but will
maintain his role as Chairman of the Company's Board of Trustees.
Mr. Hasu P. Shah, Chairman of the Board, commented, "The board unanimously agreed to the promotions of Jay and Neil, as both are talented executives, well-versed in the Company's strategy. They will provide strong leadership for the Company by growing the Company's portfolio of hotels and supporting the Company's history of providing stable dividends to our shareholders."
Since 2002, both Mr. Jay H. Shah and Mr. Neil H. Shah have spearheaded more than $543 million in acquisitions, including joint-venture investments, totaling 33 hotel properties with 4,290 rooms. These acquisitions have allowed the Company to expand its footprint to nine states in the Eastern U.S. from two. Together, they have also implemented a successful joint-venture strategy that has continued the tradition of steady cash flow for shareholders and created a proprietary pipeline of upscale hotels in challenging to source markets.
The Shah's also propelled the Company's equity capitalization growth and improved balance sheet structure. The Company's current market cap at December 13, 2005 is approximately $214 million versus approximately $15 million from the beginning of 2002 with debt as a percentage of total capitalization reduced to 46% through the end of the third quarter 2005 from 59% at the beginning of 2002.
Mr. Hasu P. Shah concluded, "Jay and Neil have meaningfully contributed to the growth of this Company. Their vision for the future is to create significant value through acquisition and select development. With significant ownership stakes, their interests, along with mine, remain properly aligned with all shareholders."
About Hersha Hospitality
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 statement.
Hersha Hospitality Trust
|Also See:||Jay H. Shah Named President and Chief Operating Officer, Hersha Hospitality Trust / September 2003|
|Hersha Hospitality Reports 2nd Qtr Net Income Up 159.3% to $3.76 million, Compared to $1.45 million for the 2004 2nd Qtr / August 2005|