Hersha Hospitality Trust Announces Dividend Tax Classification For 2012

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 2012 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        
Record Dates   Paid Dates Total

Cash Distribution

Per Share
Taxable

Ordinary

Income*
Total

Capital Gain Distribution
Unrecaptured

Sec. 1250 Gain
Nontaxable Distribution

(Return of Capital)**
 
 
1/3/2012 1/13/2012 $ 0.0600 $ 0.000766 $ - $ - $ 0.059234
3/30/2012 4/16/2012 $ 0.0600 $ 0.000766 $ - $ - $ 0.059234
6/29/2012 7/16/2012 $ 0.0600 $ 0.000766 $ - $ - $ 0.059234
10/1/2012 10/15/2012 $ 0.0600   $ 0.000766   $ -   $ -   $ 0.059234  
TOTAL $ 0.2400 $ 0.003064 $ - $ - $ 0.236936
Percent 100.00% 1.28% N/A N/A 98.72%
 
The CUSIP number for Hersha Hospitality Trust's Common Shares is 427825104.
 
 
SERIES A PREFERRED SHARES
Record Dates Paid Dates Total

Cash Distribution

Per Share
Taxable

Ordinary

Income*
Total

Capital Gain Distribution
Unrecaptured

Sec. 1250 Gain
Nontaxable Distribution

(Return of Capital)
 
 
1/1/2012 1/17/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
4/1/2012 4/16/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
7/1/2012 7/16/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
10/1/2012 10/17/2012 $ 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
Record Dates Paid Dates Total

Cash Distribution

Per Share
Taxable

Ordinary

Income*
Total

Capital Gain Distribution
Unrecaptured

Sec. 1250 Gain
Nontaxable Distribution

(Return of Capital)
 
 
1/1/2012 1/17/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
4/1/2012 4/16/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
7/1/2012 7/16/2012 $ 0.5000 $ 0.500000 $ - $ - $ -
10/1/2012 10/15/2012 $ 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 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 2012 fourth quarter distribution, which had a record date of December 31, 2012 and was paid on January 15, 2013, will be reported and the taxable portion determined in 2013.

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