NOTE 10 – EARNINGS PER SHARE

	Three Months Ended						Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Numerator:
BASIC AND DILUTED*
Income (Loss) from Continuing Operations	$	4,801		$	974		$	(249	)	$	(8,383	)
(Income) Loss from Continuing Operations allocated to Noncontrolling Interests		(45	)		(186	)		527			275
Distributions to 8.0% Preferred Shareholders		(3,500	)		(1,200	)		(6,999	)		(3,600	)
Dividends Paid on Unvested Restricted Shares		(56	)		(45	)		(176	)		(144	)
Income (Loss) from Continuing Operations applicable to Common Shareholders		1,200			(457	)		(6,897	)		(11,852	)

Discontinued Operations
(Loss) Income from Discontinued Operations		(27,305	)		628			(27,325	)		(645	)
Loss (Income) from Discontinued Operations allocated to Noncontrolling Interests		1,046			(77	)		1,092			26
(Loss) Income from Discontinued Operations applicable to Common Shareholders		(26,259	)		551			(26,233	)		(619	)

Net (Loss) Income applicable to Common Shareholders	$	(25,059	)	$	94		$	(33,130	)	$	(12,471	)

Income (loss) allocated to noncontrolling interest in Hersha Hospitality Limited Partnership has been excluded from the numerator and units of limited partnership interest in Hersha Hospitality Limited Partnership have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would have no impact..

	Three Months Ended						Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Denominator:
Weighted average number of common shares - basic		168,985,193			138,636,206			168,666,752			125,193,554
Effect of dilutive securities:
Restricted Stock Awards		296,101			-	**		-	**		-	**
Contingently Issued Shares		1,385,723			-	**		-	**		-	**
Option to acquire common shares		1,599,281			-	**		-	**		-	**
Partnership Units		-	*		-	*		-	*		-	*
Weighted average number of common shares - diluted		172,266,298			138,636,206			168,666,752			125,193,554

	Three Months Ended						Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Earnings Per Share:
BASIC
Income (Loss) from Continuing Operations applicable to Common Shareholders	$	0.01		$	(0.00	)	$	(0.04	)	$	(0.09	)
(Loss) Income from Discontinued Operations applicable to Common Shareholders		(0.16	)		0.00			(0.16	)		(0.01	)
Net (Loss) Income applicable to Common Shareholders	$	(0.15	)	$	0.00		$	(0.20	)	$	(0.10	)

DILUTED*
Income (Loss) from Continuing Operations applicable to Common Shareholders	$	0.01		$	(0.00	)	$	(0.04	)	$	(0.09	)
(Loss) Income from Discontinued Operations applicable to Common Shareholders		(0.16	)		0.00			(0.16	)		(0.01	)
Net (Loss) Income applicable to Common Shareholders	$	(0.15	)	$	0.00		$	(0.20	)	$	(0.10	)

*Income (loss) allocated to noncontrolling interest in Hersha Hospitality Limited Partnership has been excluded from the numerator and units of limited partnership interest in Hersha Hospitality Limited Partnership have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would have no impact. Unvested stock awards, contingently issuable share awards and options to acquire our common shares have been omitted from the denominator for the purpose of computing diluted earnings per share for the three months ended September 30, 2010 and the nine months ended September 30, 2011 and 2010, since the effect of including these awards in the denominator would be anti-dilutive to loss from continuing operations applicable to common shareholders

The following table summarizes potentially dilutive securities that have been excluded from the denominator for the purpose of computing diluted earnings per share:

	Three Months Ended				Nine Months Ended
	September 30, 2011		September 30, 2010		September 30, 2011		September 30, 2010

Common Units of Limited Partnership Interest		7,246,195		8,242,509		7,331,458		8,994,295
Unvested Stock Awards Outstanding		-		196,560		510,677		258,125
Contingenty Issuable Share Awards		-		988,428		1,754,130		455,283
Options to Acquire Common Shares Outstanding		-		2,245,455		2,503,738		2,006,695
Total potentially dilutive securities excluded from the denominator		7,246,195		11,672,952		12,100,003		11,714,398