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Hersha Hospitality Trust Closes $400 Million Senior Unsecured Credit Facility

Hersha Hospitality Trust (NYSE: HT) (the “Company”), owner of upscale hotels in urban gateway markets, today announced that it closed on a new $400 million senior unsecured credit facility (the “Facility”) that is expandable to $550 million. The credit facility consists of a $250 million senior unsecured revolving line of credit (the “Revolving Credit Facility”) and a $150 million senior unsecured term loan (the “Term Loan”). This new Facility replaces the Company’s $250 million senior secured revolving credit facility.

Concurrent with the closing of the Facility, the Company funded a $100 million tranche of the Term Loan at a fixed interest rate of 3.195% for four years. The Company anticipates funding the remaining $50 million tranche of the Term Loan prior to December 31, 2012. The Term Loan borrowings were used to pay off the existing balance on the secured revolving credit facility, pay off the balance on mortgage loans at six hotel properties, and for general corporate purposes.

“The overwhelming support of the banking community resulted in a significant oversubscription that allows us to eliminate our floor pricing and reduce our weighted average cost of debt, extends the term of the Facility and provides us access to the unsecured debt markets,” commented Ashish R. Parikh, Chief Financial Officer. “We appreciate the confidence shown by the 16 members of this bank group and the size and pricing of the new Facility further validates the embedded growth potential of our portfolio and the conservative balance sheet strategy we have undertaken.”

The Facility was arranged by Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Book Running Managers. Bank of America, N.A., Raymond James Bank, N.A., Manufacturers and Traders Trust Company and TD Bank, N.A. are acting as Co-Documentation Agents. BBVA Compass, Fifth Third Bank, Regions Bank and US Bank National Association are acting as Senior Managing Agents. Other lenders under the Facility include Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., UBS Loan Finance LLC, PNC Bank, The Provident Bank, and Beneficial Bank.

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