Hotel Online  Special Report

 Hersha Hospitality Trust Acquiring Two Hilton Branded Hotels and a
Marriott Branded Hotel for Approximately $76 million
PHILADELPHIA - Jan. 19, 2006--Hersha Hospitality Trust (AMEX: HT ), a real estate investment trust (REIT) and owner of 50 nationally franchised, upscale and midscale hotels, today announced the signing of separate agreements to purchase hotels in Philadelphia, metro-New York City and metro-Washington, D.C. for approximately $76 million.

The Company entered into an agreement with Metro JFK Associates, LLC, a related party hotel developer, to purchase the Hilton Garden Inn at JFK Airport. The hotel has 188 rooms, was built in 2005, and is situated at the JFK Airport, the hotel is also easily accessible to both LaGuardia Airport and New York City.

Hersha Hospitality Trust has also finalized the agreement on the purchase of the 96-room Tyson's Corner Residence Inn located in Vienna, Virginia. The property is located in one of Northern Virginia's fastest growing corporate markets within easy access to Reagan National Airport, Dulles International Airport and the Washington D.C. area. These transportation hubs help facilitate approach for travelers to the many attractions and government offices of the nation's Capital District.

In addition, the Company entered into a joint-venture agreement with Affordable Hospitality Associates, L.P., a related party hotel developer, giving the Company an 80% equity interest carrying a 9% participating preferred return, on the Hampton Inn Philadelphia. The hotel has 250 rooms, was built in 2001, and is located adjacent to the Philadelphia Convention Center.

Mr. Jay H. Shah commented, "These acquisitions compliment our strategy of building a portfolio of newer hotel properties in high-barrier to entry Northeast corridor markets that we believe can benefit from growth in RevPAR over the next few years. The purchase the Hilton Garden Inn is a prime example of the benefits derived from our development loan financing program, which affords Hersha Hospitality Trust a first right of refusal to purchase a financed asset. As with our other hotel joint-ventures, the Hampton Inn transaction has the potential to create solid value through a preferred return, while also participating in the performance of the hotel."

The agreements are subject to customary closing conditions. The Company expects to close these acquisitions by the end of the first quarter of 2006. The purchase of these hotels will be completed with a combination of cash, mortgage debt and operating partnership units, to be determined at the closing of the transactions. The purchase price for the Tyson's Corner Residence and the Hilton Garden Inn, JFK include assumable mortgages with principal balances of $9.6 and $13.0 million, respectively.

About Hersha Hospitality
Hersha Hospitality Trust is a self-advised real estate investment trust that owns interests in 50 midscale, upscale and upper upscale hotel properties with 5,852 rooms located in high barrier to entry markets primarily from Metro Boston, Massachusetts to Metro Washington, DC with strong, national franchise affiliations. The Company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets. More information on the Company is available on the Company's web site at

Forward-Looking Statement:
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
Ashish Parikh

Also See: Hasu P. Shah to Retire as Hersha Hospitality Trust's Chief Executive Officer; Jay H. Shah Promoted to Chief Executive Officer / December 2005


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