Hersha Hospitality Trust Closes Acquisition of LodgeWorks Portfolio.

PHILADELPHIA -- Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT), which owns interests in 66 nationally franchised, upper-upscale, upscale and midscale hotels, today announced that the Company has completed its previously announced acquisition of seven extended-stay Hyatt Summerfield Suites hotels with a total of 1,005 suites from LodgeWorks, L.P.

The purchase price of approximately $169 million was financed with interest only 10-year first mortgages totaling $120 million from Goldman Sachs Commercial Mortgage, bearing interest at approximately 5.6% per annum and available cash on hand, including the Company's proceeds from the recently completed sale of its four Atlanta hotels. The total purchase price equates to a capitalization rate of 8.5 percent based upon estimated Net Operating Income (NOI) for the full year 2007 and a purchase price to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) multiple of 10.5 times based upon estimated EBITDA for the full year 2007. A reconciliation of this portfolio's estimated NOI less capital expenditure reserve and EBITDA to the most directly applicable generally accepted accounting principles (GAAP) measure is included at the end of this release.

The purchased portfolio of hotels includes four Hyatt Summerfield Suites in the Company's core Northeast and Mid-Atlantic markets comprising of a 159-suite property in White Plains, New York, a 128-suite property in Bridgewater, New Jersey, a 140-suite property in Gaithersburg, Maryland and a 144-suite property in Charlotte, North Carolina. Additionally, the Company will enter into two new markets with the purchase of a 164-suite Hyatt Summerfield Suites in Scottsdale, Arizona and two northern California Hyatt Summerfield Suites, including a 142-suite property in Pleasant Hill/Walnut Creek and a 128-suite property in Pleasanton, California.

The Company has funded an additional $2.5 million for anticipated capital improvements at the properties. LodgeWorks will continue to manage the hotels and bear any additional costs for brand compliance.

Mr. Jay H. Shah noted, "Across the last several years, we believe that we have assembled the highest quality upscale, limited service portfolio in the industry. We expect this young portfolio of market leading urban and extended stay hotels to provide strong growth in their high barrier-to-entry markets. We are confident that our efforts will deliver superior internal growth for the foreseeable future and our properties will weather economic cycles better than most other lodging portfolios."

Non-GAAP Disclosures

Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) is a non-GAAP financial measure within the meaning of the Securities and Exchange Commission rules. Management believes EBITDA to be a meaningful measure of a property's performance and that it should be considered along with, but not as an alternative to, net income, cash flow, Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO), as a measure of the company's operating performance.

Capitalization Rate is a non-GAAP financial measure used by management to help discuss the pricing of acquired or disposed hotel(s). Capitalization rate, as used herein, is derived by dividing the net operating income of the hotel(s) for a specified period, less a management fee and an allowance for recurring capital expenditures for such period, by the purchase price paid or received for the hotel asset(s).

Net Operating Income, EBITDA and GAAP Reconciliation

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About LodgeWorks

The LodgeWorks L.P. partner team pioneered extended-stay lodging with the development of the Residence Inn([R]) concept (which was later sold to Marriott) and the upscale Summerfield Suites([R]) hotel chain (which was sold to Wyndham International and then Global Hyatt). Currently the company owns and operates Sierra Suites Hotels, an upscale suite brand with locations in Branchburg and Parsippany, New Jersey; San Ramon and Santa Clara, California, and Fishkill, New York. Development plans call for 2007 openings in Dulles Airport-Sterling, Virginia and Seattle-Bellevue, Washington. The company has also launched an upper-upscale boutique collection with 2008 openings in Napa and Long Beach, California, and Savannah-Historic District, Georgia.

About Hersha Hospitality

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 66 high quality, upper-upscale, upscale and midscale hotel properties with 8,640 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 www.hersha.com.

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. For a description of these factors, please review the information under the heading "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC.