Hersha Purchases New Residence Inn
Adds Twentieth Hotel in the High Barrier-to-Entry New England Market
NEW CUMBERLAND, PA, July 27, 2006. Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) and owner of 60 nationally franchised, upper-upscale, upscale and midscale limited service and extended-stay hotels, today announced that it has closed on the purchase of the 96-suite Residence Inn in Norwood, Massachusetts, for $14.25 million. The Company will use a combination of cash and issue 425,486 operating partnership units to the seller to complete the transaction.
Jay H. Shah, Chief Executive Officer commented, "We are pleased to acquire this newly built property, which is our tenth in the vibrant Boston marketplace. This Residence Inn was sourced to us through an off market negotiation with one of our key development partners in New England. This is our second transaction in 2006 where the developer has provided a vote of confidence in our strategy by electing to accept consideration in the form of Hersha Hospitality operating partnership units. We expect this transaction to provide an unlevered yield of 8 percent at the outset, but rise to 11 percent after stabilization. This property complements our existing portfolio of twelve upscale extended stay hotels."
The Residence Inn Norwood, Massachusetts, which opened today, July 27, 2006, is located on 275 Norwood Park South and is convenient to the corporate offices of Bayer Diagnostics, New York Life, Pepsi, the famous Auto Mile, and Gillette Stadium, home of the New England Patriots Football and New England Revolution Soccer Teams.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
