Hersha Hospitality Sells 600,000 Common Shares Pursuant to Underwriters' Over-allotment...

Hersha Hospitality Sells 600,000 Common Shares Pursuant to Underwriters' Over-allotment Option

PHILADELPHIA--(Business Wire)--
Hersha Hospitality Trust (NYSE: HT) owner of nationally franchised
premium select service and full service hotels, announced today that
the underwriters of the Company's recent public offering of common
shares have exercised the over-allotment option to purchase an
additional 600,000 common shares at the public offering price of $9.90
per share, less underwriting discounts and commissions. The closing of
the over-allotment option occurred today, May 20, 2008. As a result of
the exercise, the Company received additional net proceeds, after
underwriting discounts and commissions, of approximately $5.6 million.
This resulted in total net proceeds from the offering, before
expenses, of approximately $62.1 million.

UBS Investment Bank and Raymond James & Associates, Inc. acted as
the joint book-running managers for the offering, Deutsche Bank
Securities Inc. and Wachovia Capital Markets, LLC acted as the co-lead
managers. Robert W. Baird & Co. Incorporated, JMP Securities LLC and
Stifel, Nicolaus & Company, Incorporated acted as 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.

Hersha Hospitality Trust
Investors:
Ashish Parikh, 215-238-1046

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