Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) and owner of nationally franchised, premium, limited-service hotels, today announced that its Board of Trustees has declared a quarterly cash dividend of $0.18 per common share for the fourth quarter ended December 31, 2004. The common dividend is payable on January 14, 2005 to shareholders of record on December 30, 2004.

The dividend represents an approximate annualized yield of 7.1 percent, based upon today's closing share price of $10.09, and is the 23rd consecutive common share dividend paid by the company since its initial public offering.

Additionally, HT announced that its operating partnership, Hersha Hospitality, L.P., of which HT is the general partner and has an approximate 88 percent ownership interest, also declared a regular quarterly cash dividend of $0.18 per limited partnership unit. Dividends to the limited partnership unitholders also are payable on January 14, 2005 to unitholders of record on December 30, 2004.

Hersha Hospitality Trust is a self-advised real estate investment trust that owns premium limited and full service hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets.

Certain matters within this press release are discussed using forward-looking language as specified in 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 projected in the forward-looking statement.