Hersha Hospitality Trust Announces Dividend Tax Classification for 2012

  Hersha Hospitality Trust Announces Dividend Tax Classification for 2012

Business Wire

PHILADELPHIA -- January 22, 2013

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                                                                   
                         Total          Taxable                                      Nontaxable
                                                       Total          Unrecaptured   Distribution
Record      Paid Dates  Cash           Ordinary                                                  
Dates                    Distribution                  Capital Gain   Sec. 1250      (Return of
                                        Income*        Distribution   Gain           Capital)**
                         Per Share
                                                                                                  
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
                         Total          Taxable                                      Nontaxable
                                                       Total          Unrecaptured   Distribution
Record       Paid Dates  Cash           Ordinary                                                  
Dates                    Distribution                  Capital Gain   Sec. 1250      (Return of
                                        Income*        Distribution   Gain           Capital)
                         Per Share
                                                                                                  
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
                         Total          Taxable                                      Nontaxable
                                                       Total          Unrecaptured   Distribution
Record       Paid Dates  Cash           Ordinary                                                  
Dates                    Distribution                  Capital Gain   Sec. 1250      (Return of
                                        Income*        Distribution   Gain           Capital)
                         Per Share
                                                                                                  
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.

Shareholders of Series A Preferred Shares should note that the 2012 fourth
quarter distribution, which had a record date of January 1, 2013 and was paid
on January 15, 2013, will be reported and the taxable portion determined in
2013.

Shareholders of Series B Preferred Shares should note that the 2012 fourth
quarter distribution, which had a record date of January 1, 2013 and was paid
on January 15, 2013, will be reported and the taxable portion determined in
2013.

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust, that
owns 64 hotels in major urban gateway markets including New York, Washington,
Boston, Philadelphia, Los Angeles and Miami totaling 9,221 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 on February 29, 2012
and other documents filed by the Company with the U.S. Securities Exchange
Commission.

Contact:

HERSHA HOSPITALITY TRUST
Michael Gillespie, Chief Accounting Officer, (717) 236-4400