Hersha Hospitality Trust Announces Dividend Tax Classification For 2011

Hersha Hospitality Trust (NYSE: HT), owner of upscale and mid-priced hotels in urban gateway markets, announced the tax classification of its Priority Class A Common Share (“Common Shares”), Series A Cumulative Redeemable Preferred Share (“Series A Preferred Shares”) and Series B Cumulative Redeemable Preferred Share (“Series B Preferred Shares”) distributions for 2011 for Federal income tax reporting purposes. The tax information provided below should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders should consult their own tax advisors as to the tax treatment of the distributions.

COMMON SHARES
        Total     Taxable     Total         Nontaxable
Record Cash Distribution Ordinary Capital Gain Unrecaptured Distribution
Dates   Paid Dates Per Share   Income*   Distribution   Sec. 1250 Gain   (Return of Capital)**
 
1/4/2011 1/17/2011 $ 0.0500 $ 0.036650 $ - $ - $ 0.013350
3/31/2011 4/15/2011 $ 0.0500 $ 0.036650 $ - $ - $ 0.013350
6/30/2011 7/15/2011 $ 0.0600 $ 0.043980 $ - $ - $ 0.016020
9/30/2011 10/14/2011 $ 0.0600 $ 0.043980 $ - $ - $ 0.016020
TOTAL $ 0.2200 $ 0.161260 $ - $ - $ 0.058740
Percent 100.00% 73.30% N/A N/A 26.70%
 
The CUSIP number for Hersha Hospitality Trust's Common Shares is 427825104.
 
 

SERIES A PREFERRED SHARES
Total Taxable Total Nontaxable
Record Cash Distribution Ordinary Capital Gain Unrecaptured Distribution
Dates   Paid Dates Per Share   Income*   Distribution   Sec. 1250 Gain   (Return of Capital)
 
1/1/2011 1/17/2011 $ 0.5000 $ 0.500000 $ - $ - $ -
4/1/2011 4/15/2011 $ 0.5000 $ 0.500000 $ - $ - $ -
7/1/2011 7/15/2011 $ 0.5000 $ 0.500000 $ - $ - $ -
10/1/2011 10/17/2011 $ 0.5000 $ 0.500000 $ - $ - $ -
TOTAL $ 2.0000 $ 2.000000 $ - $ - $ -
Percent 100.00% 100.00% N/A N/A N/A
 
The CUSIP number for Hersha Hospitality Trust's Series A Preferred Shares is 427825203.
 
 

SERIES B PREFERRED SHARES
Total Taxable Total Nontaxable
Record Cash Distribution Ordinary Capital Gain Unrecaptured Distribution
Dates   Paid Dates Per Share   Income*   Distribution   Sec. 1250 Gain   (Return of Capital)
 
7/1/2011 7/15/2011 $ 0.2389 $ 0.238900 $ - $ - $ -
10/1/2011 10/17/2011 $ 0.5000 $ 0.500000 $ - $ - $ -
TOTAL $ 0.7389 $ 0.738900 $ - $ - $ -
Percent 100.00% 100.00% N/A N/A N/A
The CUSIP number for Hersha Hospitality Trust's Series B Preferred Shares is 427825302.
 
* For Federal income tax reporting purposes, none of Hersha Hospitality Trust's ordinary income dividends are treated as qualified dividend income.
** Distributions will reduce a shareholder's adjusted tax basis in its shares. Any amount of the distribution that exceeds a shareholder's adjusted tax basis in its shares will be treated as gain from the sale or exchange of property.

 

Shareholders of Common Shares should note that the 2011 fourth quarter distribution, which had a record date of January 3, 2012 and was paid on January 13, 2012, will be reported and the taxable portion determined in 2012.

Shareholders of Series A Preferred Shares should note that the 2011 fourth quarter distribution, which had a record date of January 1, 2012 and was paid on January 17, 2012, will be reported and the taxable portion determined in 2012.

Shareholders of Series B Preferred Shares should note that the 2011 fourth quarter distribution, which had a record date of January 1, 2012 and was paid on January 17, 2012, will be reported and the taxable portion determined in 2012.

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns 80 hotels in major markets including New York, Washington, Boston, Philadelphia, Miami and Los Angeles. HT focuses on upscale and mid-priced hotels in urban gateway markets.

Forward-Looking Statements

This press release contains 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 reflected in the forward-looking statement. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the U.S. Securities Exchange Commission and the prospectus supplement and accompanying prospectus relating to the offering.

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX