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.

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