EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 10 – EARNINGS PER SHARE

The following table is a reconciliation of the income or loss (numerator) and the weighted average shares (denominator) used in the calculation of basic and diluted earnings per common share. The computation of basic and diluted earnings per share is presented below.

	Year Ended
	December 31, 2011			December 31, 2010			December 31, 2009
Numerator:
BASIC AND DILUTED*
Loss from Continuing Operations	$	(197	)	$	(13,226	)	$	(53,029	)
Loss from Continuing Operations allocated to Noncontrolling Interests		670			596			7,742
Distributions to 8.0% Series A Preferred Shareholders		(10,499	)		(4,800	)		(4,800	)
Dividends Paid on Unvested Restricted Shares		(224	)		(189	)		(255	)
Loss from Continuing Operations attributable to Common Shareholders		(10,250	)		(17,619	)		(50,342	)
Discontinued Operations
Loss from Discontinued Operations		(26,771	)		(3,976	)		(5,429	)
Loss from Discontinued Operations allocated to Noncontrolling Interests		1,064			249			855
Loss from Discontinued Operations attributable to Common Shareholders		(25,707	)		(3,727	)		(4,574	)
Net Loss attributable to Common Shareholders	$	(35,957	)	$	(21,346	)	$	(54,916	)
Denominator:
Weighted average number of common shares - basic		168,753,382			134,370,172			51,027,742
Effect of dilutive securities:
Restricted Stock Awards		-	*		-	*		-	*
Contingently Issued Shares		-	*		-	*		-	*
Option to acquire common shares		-	*		-	*		-	*
Partnership Units		-	*		-	*		-	*
Weighted average number of common shares - diluted		168,753,382			134,370,172			51,027,742

* 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 twelve months ended December 31, 2011, 2010, and 2009, 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:

	Twelve Months Ended
	December 31, 2011		December 31, 2010		December 31, 2009
Common Units of Limited Partnership Interest		7,295,112		8,628,492		8,724,725
Unvested Stock Awards Outstanding		584,216		396,328		-
Contingently Issuable Share Awards		2,097,456		934,097		-
Options to Acquire Common Shares Outstanding		2,360,156		2,327,219		-
Total potentially dilutive securities excluded from the denominator		12,336,940		12,286,136		8,724,725

	Year Ended
	December 31, 2011			December 31, 2010			December 31, 2009
Earnings Per Share:
BASIC
Loss from Continuing Operations applicable to Common Shareholders	$	(0.06	)	$	(0.13	)	$	(0.99	)
Loss from Discontinued Operations applicable to Common Shareholders		(0.15	)		(0.03	)		(0.09	)
Net Loss applicable to Common Shareholders	$	(0.21	)	$	(0.16	)	$	(1.08	)
DILUTED
Loss from Continuing Operations applicable to Common Shareholders	$	(0.06	)	$	(0.13	)	$	(0.99	)
Loss from Discontinued Operations applicable to Common Shareholders		(0.15	)		(0.03	)		(0.09	)
Net Loss applicable to Common Shareholders	$	(0.21	)	$	(0.16	)	$	(1.08	)