Hersha Hospitality Trust Names Jay H. Shah President and Chief Operating Officer; Company Bolsters Senior Executive Team to Facilitate Rapid Growth.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Sept. 18, 2003

Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) that owns mid-priced hotels in the northeastern United States, today announced that it has named Jay H. Shah president and chief operating officer. In his new position, he will oversee the management of the REIT's portfolio of hotels and the company's strategic relationships.

"Based on our growth over the past five years and our future plans, we believe the timing is right to further strengthen our management team," said Hasu P. Shah, chairman and CEO. "Jay was instrumental in the formation of Hersha Hospitality Trust in 1999 and has helped us achieve our goals through his leadership at our affiliated management and development company. He is uniquely qualified to take our company forward."

As president and COO, Shah will play a key role in the company's acquisition program, which concentrates on institutional grade, three- and four-star assets, located in selected markets between metro Boston and metro Washington in markets with high barriers to new competition.

He previously was managing director of the Hersha Group, a hotel development/ownership/management organization with 20 hotels in the Northeast, and was intimately involved in the operational and transactional activities of the Group's regional real estate development and management company. He also is the founder and former principal of Shah & Byler, LLP, a boutique real estate and construction law firm based in Philadelphia, Pa. He is a graduate of Cornell University School of Hotel Administration and earned his law degree and MBA from Temple University. Shah also serves on the Board of Trustees of the Please Touch Museum, the Philadelphia Children's Museum.

"Hersha's management team has established an impressive track record," Jay Shah said. "I look forward to focusing my experience and energy on the company's future success."

Hersha Hospitality Trust is a hotel-focused real estate investment trust. The Harrisburg, Pa.-based company's portfolio is concentrated in established markets along the Eastern seaboard with 19 hotels comprising 1,738 rooms. The company focuses on owning and operating high-quality, upscale, mid-scale, and premium limited-service hotels under leading brands such as Hampton Inn(R), Hilton Garden Inn(R), Doubletree(R), and Holiday Inns(R).

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, including the matters described under the caption "Risk Factors" in Hersha Hospitality Trust's registration statement on Form S-11 (File No. 333-5608) filed with the SEC. Hersha assumes no obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances.