Hersha Hospitality Trust (NYSE: HT), owner of upscale hotels in urban gateway markets, announced today that the Company acquired an interest in a mixed-use building, which includes a condominium interest in the 111-room Rittenhouse Hotel and 44,000 square feet of retail and office space and a fee interest in an adjacent parking garage. The total purchase price for the tangible and intangible assets of the hotel, office, retail and parking garage is $42.0 million. Including the anticipated renovations, the hotel portion is valued at $23.9 million or $215,000 per key. The Rittenhouse Hotel has historically produced the highest revenue per available room (RevPAR) in the Philadelphia market. “We are pleased to enhance our presence in the emerging Philadelphia market with the acquisition of the highly rated Rittenhouse Hotel,” commented Jay H. Shah, Chief Executive Officer. “This AAA Five Diamond hotel boasts the largest guestrooms and the best location in the city. The property is ideally situated on Philadelphia’s famed Rittenhouse Square, within walking distance to Center City’s primary corporate demand generators and its premier retail corridor. Additionally, the hotel affords easy access to the Convention Center and the City’s numerous arts, cultural, dining and leisure venues. The property has consistently been the top performer in the market, and we have identified further opportunities for enhanced asset management, upgrades and expansion which should improve operating margins and maximize Hersha’s investment in the property. The revenue from the adjacent parking garage and the income from the retail and office leases will also provide consistent cash flow at the property.” The hotel features the highly rated Lacroix Restaurant, an indoor pool, fitness center, 8,500 square feet of business and social function space and 100 underground parking spaces. Hersha Hospitality Management has assumed management of the hotel. Included in the acquisition is 44,000 square feet of retail and office space. The primary leaseholders include Smith & Wollensky, Citizens Bank, Prudential, Adolf Biecker Spa & Salon, and Saxbys Coffee. Hersha is also purchasing the adjacent fee simple stand-alone parking garage with 300 parking spaces.
With strong, long-term demand fundamentals and limited supply growth, Philadelphia is poised to be one of the top five growth markets over the next several years according to PKF Hospitality. In addition, the Philadelphia Convention Center is expected to have one of its strongest years in 2012.The Company has posted a presentation of supplemental information about the Rittenhouse Hotel acquisition located at www.hersha.com on the investor relations section under “Presentations.” About Hersha Hospitality Trust Hersha Hospitality Trust is a self-advised real estate investment trust, which owns 67 hotels in major urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami totaling 9,598 rooms. HT follows a highly selective investment approach and leverages operational advantage through rigorous and sustainable asset management practices. For further information on the Company visit our website at www.hersha.com. 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, 2011, filed with the U.S. Securities Exchange Commission and the prospectus supplement and accompanying prospectus relating to the offering.