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Hersha Hospitality Announces New Revolving Credit Agreement; Provides for a Revolving Line of Credit in the Amount of $60 Million.

PHILADELPHIA -- Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) and owner of 50 nationally franchised, upscale and midscale hotels, today announced the Company has entered into a Revolving Credit Loan and Security Agreement with Commerce Bank, N.A.

The Credit Agreement provides for a revolving line of credit (the "Line of Credit") in the principal amount of $60 million. The Credit Agreement provides that $10 million of the Line of Credit shall be made available on an unsecured basis and $50 million of the Line of Credit shall be made available on a secured basis. The proceeds of the Credit Loan and Security Agreement shall be used for working capital and general corporate purposes, including payment of distributions or dividends and the future purchase of additional hotels.

The Line of Credit expires on December 31, 2008, and the Bank may renew the line of credit for an additional period of one year.

The Line of Credit replaces a $35 million line of credit with Sovereign Bank. For more information on the new line of credit, please refer to a Current Report on Form 8-K filed by the Company on January 23, 2005.

About Hersha Hospitality

Hersha Hospitality Trust is a self-advised real estate investment trust that owns interests in 50 midscale, upscale and upper upscale hotel properties with 5,852 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.
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Publication:Business Wire
Date:Jan 24, 2006
Words:333
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