Hersha Hospitality Trust (NYSE: HT), owner of select service and upscale hotels in major metropolitan markets, today announced that it has sold 5.7 million common shares to Real Estate Investment Group L.P., (“REIG”), a majority owned and controlled subsidiary of Inversiones y Representaciones Sociedad Anónima (“IRSA”), an Argentina based real estate investment company. IRSA (NYSE: IRS) is paying $2.50 per common share, a premium to our twenty day volume weighted average price, for a total purchase price of $14.25 million pursuant to a purchase agreement executed between the parties.

“We are very pleased with the confidence in our business model that an offshore capital investment by a firm such as IRSA represents” said Mr. Jay H. Shah, Hersha’s Chief Executive Officer. “Their investment goes beyond their financial commitment. This capital investment provides us with an experienced strategic partner. IRSA will support us as we navigate the current economic challenges and contribute to our efforts as we take advantage of opportunities to grow Hersha’s platform as the lodging cycle turns.”

In connection with the investment, Hersha has also entered into an Investor Rights and Option Agreement with REIG and IRSA pursuant to which REIG has a five year option to buy up to 5.7 million additional common shares at a price of $3.00 per share. If after two years, the closing price for the common shares on the New York Stock Exchange exceeds $5.00 for twenty consecutive trading days, Hersha has the right to call and cancel the option by issuing common shares with a market value equal to the difference between the exercise price and the market value of the shares.

Also in conjunction with the investment, Hersha announced today the appointment of Eduardo S. Elsztain to its Board of Trustees. Mr. Elsztain has been Chairman and Chief Executive of IRSA since 1991, and has been engaged in the real estate business for more than twenty years.

John Sabin, Chair of Hersha’s Nominating and Corporate Governance committee, commented, “The Board is pleased to appoint Eduardo as a member and believes that his global real estate and capital markets experience will provide Hersha with a unique perspective as it maneuvers through the current challenges and looks to capture opportunities over the next several years.”

About IRSA Inversiones y Representaciones Sociedad Anónima

IRSA is one of Argentina’s leading real estate companies in terms of total assets. IRSA is engaged, directly and indirectly through subsidiaries and joint ventures, in a range of diversified real estate related activities in Argentina, including: acquisition, development and ownership of premium shopping centers, office properties, lodging and residential land. Its shares are listed and traded on the Bolsa de Comercio de Buenos Aires and its Global Depositary Shares are listed and traded on the New York Stock Exchange under the ticker symbol “IRS”.

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 73 hotels totaling 9,294 rooms, primarily along the Northeast Corridor from Boston to Washington D.C. The Company also owns hotels in northern California and Scottsdale, Arizona. Hersha focuses on high quality upscale hotels in high barrier to entry markets. More information on the Company and its portfolio of hotels is available on Hersha's Website 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 our Annual Report on Form 10-K for the year ended December 31, 2008, filed with the U.S. Securities Exchange Commission and the prospectus supplement relating to the offering.