Hersha Hospitality Trust 1-for-4 Reverse Share Split Effective June 22, 2015

- Repurchases 7.9 Million Shares for $50.2 Million in 2015 -

- Represents 4.0% of Shares Outstanding -

PHILADELPHIA--(BUSINESS WIRE)-- Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of upscale hotels in urban gateway markets, announced today that the previously announced 1-for-4 reverse split of the Company’s issued and outstanding Common Shares took effect at 5:00 p.m., EDT, on June 22, 2015 (the “Effective Time”).

Accordingly, at the Effective Time, every four issued and outstanding Common Shares were combined into one Common Share. In addition, at the market open on June 23, 2015, the Common Shares began trading on the New York Stock Exchange on a post-split basis under the existing symbol “HT” and under a new CUSIP number: 427825 500.

As a result of the reverse share split, the number of outstanding Common Shares was reduced from approximately 191.1 million to approximately 47.8 million. The Company’s previously announced second quarter dividend, to be paid on July 15, 2015 to the holders of record of Common Shares on the close of business on June 30, 2015, will be adjusted to $0.28 per Common Share (reflecting four times the previously announced second quarter dividend of $0.07 per Common Share to reflect the reverse share split). The amount of any future dividends payable by the Company will be determined by and at the sole discretion of the Company’s Board of Trustees.

No fractional common shares were issued in connection with the reverse share split. Instead, each shareholder that was otherwise entitled to receive a fractional Common Share will instead be entitled to receive, in lieu of such fractional share, cash in an amount equal to the relevant percentage of the product of a fraction of a share, multiplied by $26.08 (the closing price of a Common Share, on a split-adjusted basis, as reported by the New York Stock Exchange on June 22, 2015). The reverse share split applied to all of the Company’s issued and outstanding Common Shares and therefore did not affect any shareholder’s relative ownership percentage (except for de minimis changes as a result of the elimination of fractional shares). Shareholders of record will receive information from American Stock Transfer & Trust Company, LLC, the Company’s transfer agent and the exchange agent for the reverse share split, regarding their shareholdings following the reverse share split and cash payments for any fractional interest. Shareholders who hold their shares in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares.

In addition to the 1-for-4 reverse share split, the Company has continued to repurchase outstanding common shares. As of June 22, 2015, the Company has repurchased approximately 7.9 million common shares at an average pre-split price of $6.39 for an aggregate repurchase price of $50.2 million in 2015, as the Company continues to see a large variance between the current trading price and the Company’s net asset value.

Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets. The Company's 52 hotels totaling 8,414 rooms are located in New York, Boston, Philadelphia, Washington, DC and select markets on the West Coast and South Florida. The Company's shares are traded on The New York Stock Exchange under the ticker “HT”.

Forward Looking Statement

This press release contains forward-looking information based upon the Company’s current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company’s control, including the factors listed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150623005403/en/

Hersha Hospitality Trust
Ashish Parikh, Chief Financial Officer
215-238-1046

Source: Hersha Hospitality Trust

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