PHILADELPHIA, PA (REIT Media) October 4, 2007 - Hersha Hospitality Trust (AMEX: HT), owner of nationally franchised premium full service and limited service hotels, today announced that it has completed the purchase of the remaining 20% interest in its joint-venture with Affordable Hospitality Associates, LP. The joint-venture owns the 250-room Hampton Inn Philadelphia.

This transaction values the hotel at approximately $41.9 million (which includes approximately $21.4 million of outstanding debt on the property), which was based upon operating results and sales data of comparable hotels in Philadelphia. As a result of this transaction, Hersha's cost basis for the asset will be approximately $30.0 million, which equates to approximately $120,000 per key. The Company will issue approximately 406,877 Hersha Hospitality Limited Partnership Units to 3344 Associates, LP, a related party entity comprised of certain members of the Company's management team and trustees.

Jay H. Shah, Chief Executive Officer commented, "This is a very attractive transaction for all of our shareholders, from a financial perspective, as our cost basis equates to 8.8 times trailing twelve months earnings before interest, taxes, depreciation and amortization (EBITDA). The Hampton Inn Philadelphia, which is located across the street from the Philadelphia convention center, has been a strong performing asset since our initial transaction with steady growth in revenue per available room (RevPAR), led by rate gains and increased occupancy. The strength of the Philadelphia market in conjunction with the improved performance of the hotel strongly supports the growth in the value of the asset and provides us with a very attractive cost basis in the asset."

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 73 hotels totaling 9,395 rooms, primarily along the Northeast Corridor from Boston to Washington D.C. The Company also owns hotels in Northern California and Scottsdale, Arizona. Hersha focuses on high quality upscale hotels in high barrier to entry markets. More information on the Company and its portfolio of hotels is available on Hersha's Web site at http://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, 2006, filed with the Securities Exchange Commission (SEC).

Disclosure of Non-GAAP Measures

EBITDA

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 REIT's performance and that it should be considered along with, but not as an alternative to, net income, cash flow, FFO and AFFO, as a measure of the company's operating performance.

Hersha Hospitality Trust
Ashish Parikh, 215-238-1046
CFO