Hersha Hospitality Completes Acquisition of the Marriott Courtyard Hotel Los Angeles Westside

Hersha Hospitality Trust (NYSE: HT), owner of upscale and mid-priced hotels in major metropolitan markets, announced that the Company has completed the acquisition of the 260 room Marriott Courtyard Westside in Los Angeles (Culver City), CA for $47.5 million, or $182,500 per key, including closing costs and fees. The hotel was completely renovated and reopened as the Courtyard Westside in 2008 and includes approximately 11,000 square feet of meeting space.

This hotel is Hersha’s first property in Los Angeles and is located in western Los Angeles County near the intersection of two major freeways, I-405 and I-10. The Courtyard Westside is surrounded by abundant commercial and leisure demand generators including large concentrations of Class A office space, high end retailers, entertainment venues and production studios. It is also proximate to the Los Angeles International Airport, Venice Beach, the Santa Monica Pier and the Los Angeles Convention Center.

The Los Angeles hotel market has displayed favorable dynamics, with 15% year over year growth in Revenue per Available Room (or RevPAR) year to date through April. Since 1995, Los Angeles has offered the second highest RevPAR growth in the country, behind only New York. Additionally, the market average RevPAR is still approximately 17% below its 2008 peak.

The total purchase price represents a first year economic capitalization rate of approximately 8.3% and an expected stabilized capitalization rate of approximately 11%.

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 79 hotels, totaling 10,702 rooms, primarily along the Northeast Corridor from Boston, MA to Washington DC. Hersha also owns hotels in Northern California and Scottsdale, Arizona. Hersha focuses on upscale, mid-priced and extended stay hotels in major metropolitan markets.

Forward Looking Statement

Certain matters within this press release are discussed using “forward-looking statements” within the meaning of 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” in Hersha Hospitality Trust’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2010.

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