Hersha Hospitality Trust Completes Acquisition of Two Marriott Hotels; Company Continues to Execute Growth Plan of Doubling Portfolio Value by Year End.

PHILADELPHIA -- Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) and owner of high quality mid-scale hotels, today announced that it has completed the acquisition of two Marriot-branded hotels, the 120-suite Residence Inn by Marriott-Greenbelt in Maryland, near Washington, D.C., and the 130-room Courtyard by Marriott Ewing Hopewell in New Jersey, near Princeton. Both properties are managed by Hersha Hospitality Management.

"With these transactions, we continue our strategy of acquiring quality assets in high-barrier-to-entry metropolitan markets in the northeastern United," said Jay H. Shah, Hersha's president and chief operating officer. "In addition, both properties are recently opened, further lowering the average age of our portfolio, already the 'youngest' in the publicly traded hotel REIT segment."

Residence Inn--Greenbelt, Md.

Located at 6320 Golden Triangle Drive in Greenbelt, Md., the four-story Residence Inn is surrounded by a number of corporate and government demand generators, including the NASA Goddard Space Flight Center, IRS, Andrews Air Force Base, and corporate offices of Lockheed Martin, Verizon, Compaq/Hewlett Packard, Giant Food and Cellular One, and a short drive from downtown Washington, D.C., Fed Ex Field and the University of Maryland.

"The Residence Inn acquisition continues our push into the Metro Washington, D.C. area, an attractive market with high barriers to new entry and multiple demand generators," Shah said. "The Residence Inn is the only extended-stay property and newest hotel in the immediate market, making it the hotel of choice for business and government travelers."

Hotel amenities include two meeting rooms, outdoor pool, exercise room, whirlpool, complimentary buffet breakfast, self-service laundry facilities and a full array of business services. Each room is equipped with an oversized work desk, phone with voice mail, high speed Internet access, full kitchen and utensils, iron and ironing board.

Courtyard by Marriott-Ewing Hopewell, N.J.

Located at 360 Scotch Road, the Courtyard by Marriott Ewing Hopewell opened in March and is Marriott's first new prototype Courtyard in New Jersey. The hotel, situated in the Princeton - Trenton corridor, is surrounded by a number of corporate and government offices and tourist attractions, including Merrill Lynch, Bristol Myers Squibb, Princeton University, Rider University, ETS, N.J. State House, Sesame Place, Six Flags Great Adventure and New Hope, Pa.

The new prototype features redesigned guest rooms and public spaces upgraded with the addition of functional enhancements and new decor and furnishings. Practical additions such as a 24-7 food market and business library, featuring individual workstations with high-speed data ports and ergonomic chairs, combine with aesthetic elements, including the use of curved surfaces, rich woods, designer fabrics, granite counters and superior lighting. Other hotel amenities include an indoor pool, exercise room, whirlpool, laundry valet and the Courtyard Cafe.

Each guest room features a new bedding package that includes an inviting, plush, oversized mattress with superior quality linens, duvets and oversized pillows. The bathrooms have a modern, residential look with granite vanities, full-length mirrors and brighter lighting. Each guest room has free high-speed in-room Internet access, as well as wireless Internet access in the lobby and public spaces.

The Courtyard transaction is a joint venture with American Properties Realty, a privately held, full-service, residential and commercial real estate development firm in New Jersey.

Hersha Hospitality Trust is a self-advised real estate investment trust that owns premium limited and full service hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets.

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.