CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Share data	3 Months Ended				9 Months Ended
	Sep. 30, 2011		Sep. 30, 2010		Sep. 30, 2011		Sep. 30, 2010
Revenue:
Hotel Operating Revenues	$ 80,053		$ 67,992		$ 207,006		$ 172,631
Interest Income from Development Loans	656		1,049		2,810		3,599
Other Revenues	90		79		240		252
Total Revenues	80,799		69,120		210,056		176,482
Operating Expenses:
Hotel Operating Expenses	41,653		36,150		112,605		94,872
Hotel Ground Rent	181		256		692		685
Real Estate and Personal Property Taxes and Property Insurance	4,861		4,713		14,422		12,435
General and Administrative	2,498		1,968		6,619		6,714
Stock Based Compensation	1,495		1,869		4,765		4,025
Acquisition and Terminated Transaction Costs	147		1,213		2,263		4,751
Depreciation and Amortization	12,796		11,381		37,628		32,155
Total Operating Expenses	63,631		57,550		178,994		155,637
Operating Income	17,168		11,570		31,062		20,845
Interest Income	144		12		363		69
Interest Expense	10,621		10,288		30,761		30,906
Other Expense	299		77		866		255
Loss on Debt Extinguishment	21		0		55		730
Income (Loss) before (Loss) Income from Unconsolidated Joint Venture Investments and Discontinued Operations	6,371		1,217		(257)		(10,977)
Income (Loss) from Unconsolidated Joint Ventures	107		(243)		(1,072)		(1,414)
Impairment of Investment in Unconsolidated Joint Venture	(1,677)		0		(1,677)		0
Gain from Remeasurement of Investment in Unconsolidated Joint Venture	0		0		2,757		4,008
(Loss) Income from Unconsolidated Joint Venture Investments	(1,570)		(243)		8		2,594
Income (Loss) from Continuing Operations	4,801		974		(249)		(8,383)
Discontinued Operations (Note 12):
Gain on Disposition of Hotel Properties	843		345		843		315
Impairment of Assets Held for Sale	(30,248)		0		(30,248)		0
Income (Loss) from Discontinued Operations	2,100		283		2,080		(960)
(Loss) Income from Discontinued Operations	(27,305)		628		(27,325)		(645)
Net Income (Loss)	(22,504)		1,602		(27,574)		(9,028)
(Loss) Income Allocated to Noncontrolling Interests	(1,001)		263		(1,619)		(302)
Preferred Distributions	3,500		1,200		6,999		3,600
Net (Loss) Income applicable to Common Shareholders	$ (25,003)		$ 139		$ (32,954)		$ (12,326)
BASIC
Income (Loss) from Continuing Operations applicable to Common Shareholders (in dollars per share)	$ 0.01		$ 0.00		$ (0.04)		$ (0.09)
(Loss) Income from Discontinued Operations applicable to Common Shareholders (in dollars per share)	$ (0.16)		$ 0.00		$ (0.16)		$ (0.01)
Net Loss applicable to Common Shareholders (in dollars per share)	$ (0.15)		$ 0		$ (0.20)		$ (0.10)
DILUTED
Income (Loss) from Continuing Operations applicable to Common Shareholders (in dollars per share)	$ 0.01	[1]	$ 0.00	[1]	$ (0.04)	[1]	$ (0.09)	[1]
(Loss) Income from Discontinued Operations applicable to Common Shareholders (in dollars per share)	$ (0.16)	[1]	$ 0.00	[1]	$ (0.16)	[1]	$ (0.01)	[1]
Net Loss applicable to Common Shareholders (in dollars per share)	$ (0.15)	[1]	$ 0	[1]	$ (0.20)	[1]	$ (0.10)	[1]
Weighted Average Common Shares Outstanding:
Basic (in shares)	168,985,193		138,636,206		168,666,752		125,193,554
Diluted (in shares)	172,266,298	[1]	138,636,206	[1]	168,666,752	[1]	125,193,554	[1]

[1] 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.