Hersha Hospitality Prices Public Offering of 6,000,000 Common Shares

Business Wire, May 13, 2008

PHILADELPHIA -- Hersha Hospitality Trust (NYSE: HT) owner of nationally franchised premium select service and full service hotels, today announced it has priced a public offering of 6,000,000 of its common shares of beneficial interest, par value $.01 per share, at $9.90 per share. The net proceeds of the offering, after deducting underwriting discounts and commissions, will be approximately $56.43 million. The company has granted the underwriters of the offering a 30-day option to purchase up to an additional 900,000 of its common shares to cover over-allotments, if any. UBS Investment Bank and Raymond James & Associates, Inc. are the joint book-running managers for the offering, Deutsche Bank Securities Inc. and Wachovia Capital Markets, LLC are the co-lead managers. Robert W. Baird & Co. Incorporated, JMP Securities LLC and Stifel, Nicolaus & Company, Incorporated will be the co-managers for the offering. The company expects to use the net proceeds of the offering to repay outstanding indebtedness under its revolving credit line.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Company's securities, nor shall there be any sale of these securities or a solicitation of an offer to buy these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Offers for the securities will be made only by means of a prospectus supplement and accompanying prospectus forming part of the registration statement. A prospectus supplement and accompanying prospectus relating to these securities, when available, may be obtained from UBS Investment Bank, Prospectus Department, 299 Park Avenue, New York, NY 10171 or by calling 1-(888) 827-7275 or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, or by calling 1-(800) 248-8863.

About Hersha Hospitality

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 74 hotels, totaling 9,374 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.

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, 2007, filed with the Securities Exchange Commission (SEC) and Prospectus Supplement relating to the offering.