|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
|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
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.