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Hersha Hospitality Trust Acquires Three Hotel Properties Valued at $12 Million
HARRISBURG, Pa., Aug. 23, 1999 - Hersha Hospitality Trust (Amex: HT) announced it had entered into definitive contractual agreements to purchase three hotel properties. The hotels acquired include a 72-room Hampton Inn located in Danville, Pennsylvania, a 77-room Clarion Suites located in Harrisburg, Pennsylvania and a 60-room Comfort Inn adjacent to the JFK International Airport in New York. These properties are expected to add lease revenues of approximately 1.8 million dollars and are expected to be immediately accretive to Hersha’s portfolio.

The properties under contract continue Hersha’s acquisition strategy in the mid-Atlantic states and along the east coast while offering the Company an entry into the strong New York marketplace. All Hersha properties are currently leased to its affiliated management company Hersha Hospitality Management, L.P. This structure provides an opportunity to monitor the portfolio’s performance more closely and keeps the management of the REIT in touch with the day-to-day operations of the hotels.

HT is also benefiting from continued development of hotels through the Hersha Construction Company (“HCC”), which specializes in hotel construction and land development. Per Hasu P. Shah, Chairman and CEO, “The Company has realized strong synergies through HCC development efforts and expects to add several new properties to the REIT within the next twelve months.” During the next six months, HCC anticipates the completion of construction and the commencement of operations at a Hampton Inn in Hershey, PA and a Mainstay Suites in Frederick, Maryland. HT maintains an option to acquire both properties upon stabilization.

Within the next twelve months, HCC is also contemplating the completion of construction and the commencement of operations on an innovative dual branded hotel in Valley Forge, PA and a 256-room Hampton Inn located adjacent to the Convention Center in Philadelphia, PA.
HT is a self advised Maryland real estate investment trust that intends to qualify as a REIT for federal income tax purposes. HT completed an initial public offering in January, 1999. The Company’s mission is to continue its hotel acquisition and development strategies and to leverage its operational expertise in managing hotels to grow the earnings and cash flow of the REIT.

Hersha Enterprises is an entrepreneurial, high-growth real estate development and management company focussed on the hospitality industry. Hersha currently owns, operates, and develops a portfolio of hotels and assisted living facilities in the mid-Atlantic region of the United States. We fly Holiday Inn, Hampton Inn, and a variety of Choice banners.

With over $50 million in assets and nearly $30 million in yearly sales, Hersha Enterprises combines a strong financial position with an aggressive entrepreneurial drive. 

Hersha was created in 1984 with the purchase of a single, independent motel in Harrisburg, Pennsylvania. Registering over 25% annual growth in nearly every corporate indicator (revenues, profits, rooms, employees) ever since, Hersha has now grown into a full service, vertically integrated real estate company with 800 employees and over 20 properties in operation or under development. 

Ashish Parikh
CFO of Hersha Hospitality Trust
Also See: The Hotel REIT's: Named One of the Biggest Losers in Real Estate Finance in 1998 / Dec 1998 
Timing the Sale or Acquisition of Hotels in Today's Volatile Market / April 1999 

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