HERSHA HOSPITALITY TRUST AND SUBSIDIARIES

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2011

[IN THOUSANDS]

				Initial Costs				Costs Capitalized Subsequent to Acquisition						Gross Amounts at which Carrried at Close of Period						Accumulated			Net Book Value
																				Depreciation			Land
Description	Encumbrances			Land		Buildings & Improvements		Land			Buildings & Improvements			Land		Buildings & Improvements		Total		Buildings & Improvements*			Buildings & Improvements		Date of Acquisition

Holiday Inn Exp, Hershey, PA	$	(5,772	)	$	426	$	2,645	$	410		$	4,061		$	836	$	6,706	$	7,542	$	(2,534	)	$	5,008	10/01/97
Comfort Inn, Harrisburg, PA		-			213		1,934		81			1,381			294		3,315		3,609		(935	)		2,674	03/06/98
Hampton Inn, Hershey, PA		-			807		5,714		4			1,189			811		6,903		7,714		(2,424	)		5,290	01/01/00
Residence Inn, Framingham, MA		(8,164	)		1,325		12,737		-			876			1,325		13,613		14,938		(2,966	)		11,972	03/26/04
Hampton Inn, New York, NY		(24,784	)		5,472		23,280		-			1,320			5,472		24,600		30,072		(4,368	)		25,704	04/01/05
Residence Inn, Greenbelt, MD		(11,171	)		2,615		14,815		-			1,404			2,615		16,219		18,834		(3,061	)		15,773	07/16/04
Holiday Inn Exp, Langhorne, PA		(6,152	)		1,088		6,573		-			280			1,088		6,853		7,941		(1,158	)		6,783	05/26/05
Holiday Inn Exp, King of Prussia, PA		(12,162	)		2,557		13,339		-			1,195			2,557		14,534		17,091		(2,468	)		14,623	05/23/05
Courtyard, Wilmington, DE		(11,955	)		988		10,295		-			1,290			988		11,585		12,573		(2,206	)		10,367	06/17/05
Inn at, Wilmington, DE		-			898		4,515		-			794			898		5,309		6,207		(1,210	)		4,997	06/17/05
Courtyard, Brookline, MA		(38,189	)		-		47,414		-			1,409			-		48,823		48,823		(8,271	)		40,552	06/15/05
Courtyard, Langhorne, PA		(14,489	)		3,064		16,068		-			920			3,064		16,988		20,052		(2,700	)		17,352	01/03/06
Residence Inn, Tyson's Corner, VA		(8,337	)		4,283		14,475		-			993			4,283		15,468		19,751		(2,312	)		17,439	02/02/06
Hilton Garden Inn, JFK Airport, NY		(20,579	)		-		25,018		-			926			-		25,944		25,944		(4,072	)		21,872	02/16/06
Hawthorne Suites, Franklin, MA		(8,018	)		1,872		8,968		-			339			1,872		9,307		11,179		(1,378	)		9,801	04/25/06
Comfort Inn, Dartmouth, MA (1)		(2,968	)		902		3,525		(447	)		(1,470	)		455		2,055		2,510		(573	)		1,937	05/01/06
Holiday Inn Exp, Cambridge, MA		(10,400	)		1,956		9,793		-			1,522			1,956		11,315		13,271		(1,819	)		11,452	05/03/06
Residence Inn, Norwood, MA		-			1,970		11,761		-			161			1,970		11,922		13,892		(1,631	)		12,261	07/27/06
Hampton Inn, Brookhaven, NY		(13,703	)		3,130		17,345		1			882			3,131		18,227		21,358		(2,755	)		18,603	09/06/06
Holiday Inn Exp, Hauppauge, NY		(9,371	)		2,737		14,080		-			914			2,737		14,994		17,731		(2,297	)		15,434	09/01/06
Residence Inn, Langhorne, PA		-			1,463		12,094		95			891			1,558		12,985		14,543		(1,611	)		12,932	01/08/07
Hampton Inn, Chelsea, NY		(35,122	)		8,905		33,500		-			1,801			8,905		35,301		44,206		(4,941	)		39,265	09/29/06
Hyatt House, Bridgewater, NJ		(14,492	)		3,373		19,685		-			965			3,373		20,650		24,023		(2,563	)		21,460	12/28/06
Hyatt House, Gaithersburg, MD		(13,720	)		2,912		16,001		-			1,290			2,912		17,291		20,203		(2,219	)		17,984	12/28/06
Hyatt House, Pleasant Hills, CA		(20,160	)		6,216		17,229		-			161			6,216		17,390		23,606		(2,195	)		21,411	12/28/06
Hyatt House, Pleasanton, CA		(14,490	)		3,941		12,560		-			1,374			3,941		13,934		17,875		(1,668	)		16,207	12/28/06
Hyatt House, Scottsdale, AZ		(16,778	)		3,060		19,968		-			2,736			3,060		22,704		25,764		(2,724	)		23,040	12/28/06
Hyatt House, White Plains, NY		(33,030	)		8,823		30,273		-			2,514			8,823		32,787		41,610		(4,167	)		37,443	12/28/06
Holiday Inn Exp & Suites, Chester, NY		(6,553	)		1,500		6,671		-			111			1,500		6,782		8,282		(845	)		7,437	01/25/07
Residence Inn, Carlisle, PA		(6,597	)		1,015		7,511		-			47			1,015		7,558		8,573		(947	)		7,626	01/10/07
Hampton Inn, Seaport, NY		(18,559	)		7,816		19,040		-			158			7,816		19,198		27,014		(2,395	)		24,619	02/01/07
Hotel 373-5th Ave, New York, NY		(22,000	)		14,239		16,778		-			93			14,239		16,871		31,110		(1,955	)		29,155	06/01/07
Sheraton Hotel, JFK Airport, NY		-			-		27,315		-			314			-		27,629		27,629		(2,515	)		25,114	06/13/08
Hampton Inn, Philadelphia, PA		-			3,490		24,382		-			5,727			3,490		30,109		33,599		(7,076	)		26,523	02/15/06
Duane Street, Tribeca, NY		(14,886	)		8,213		12,869		-			691			8,213		13,560		21,773		(1,499	)		20,274	01/04/08
NU Hotel, Brooklyn, NY		(18,000	)		-		22,042		-			277			-		22,319		22,319		(1,962	)		20,357	01/14/08

Towneplace Suites, Harrisburg, PA		-			1,237		10,136		-			55			1,237		10,191		11,428		(932	)		10,496	05/08/08
Holiday Inn Express, Camp Springs, MD		-			1,629		11,094		-			329			1,629		11,423		13,052		(1,089	)		11,963	06/26/08
Hampton Inn, Smithfield, RI		(6,540	)		2,057		9,486		-			47			2,057		9,533		11,590		(816	)		10,774	08/01/08
Hilton Garden Inn, Tribeca, NY		(31,798	)		21,077		42,955		-			116			21,077		43,071		64,148		(2,890	)		61,258	05/01/09
Hampton Inn, West Haven, CT		(7,407	)		1,053		10,751		-			47			1,053		10,798		11,851		(589	)		11,262	11/04/09
Hampton Inn, Times Square, NY		-			10,691		41,637		-			24			10,691		41,661		52,352		(1,967	)		50,385	02/09/10
Holiday Inn Express, Times Square, NY		(41,160	)		11,075		43,113		-			26			11,075		43,139		54,214		(2,037	)		52,177	02/09/10
Candlewood Suites, Times Square, NY		-			10,281		36,687		-			5			10,281		36,692		46,973		(1,732	)		45,241	02/09/10
Hyatt Place, KOP, PA		-			1,133		7,267		-			3,884			1,133		11,151		12,284		(2,503	)		9,781	08/17/10
Holiday Inn Express, Wall Street, NY		-			12,152		21,100		-			1			12,152		21,101		33,253		(871	)		32,382	05/09/10
Hampton Inn, Washington, DC		-			9,335		58,048		-			8			9,335		58,056		67,391		(1,935	)		65,456	09/01/10
Courtyard, Alexandria, VA		(24,392	)		6,376		26,089		-			1,654			6,376		27,743		34,119		(3,727	)		30,392	09/29/06
Sheraton, Wilmington South, DE		-			1,765		16,929		-			-			1,765		16,929		18,694		(58	)		18,636	12/21/10
Holiday Inn, Water Street, NY		-			7,341		28,591		-			-			7,341		28,591		35,932		(550	)		35,382	03/25/11
Capital Hill Suites Washington, DC		(32,500	)		8,095		35,141		-			358			8,095		35,499		43,594		(629	)		42,965	04/15/11
Courtyard, LA Westside, CA		(30,000	)		13,489		27,025		-			16			13,489		27,041		40,530		(419	)		40,111	05/19/11
Courtyard, Miami, FL		(29,987	)		35,699		55,805		-			-			35,699		55,805		91,504		(164	)		91,340	11/16/11
8th Ave Land, New York City, NY (1)		(11,890	)		21,575		-		(9,031	)		108			12,544		108		12,652		(27	)		12,625	06/28/06
Total Investment in Real Estate	$	(656,275	)	$	287,329	$	1,044,066	$	(8,887	)	$	46,214		$	278,442	$	1,090,280	$	1,368,722	$	(115,355	)	$	1,253,367

Assets Held For Sale
Hampton Inn, Carlisle, PA	$	-		$	300	$	3,109	$	200		$	2,412		$	500	$	5,521	$	6,021	$	(1,938	)	$	4,083	06/01/97
Hampton Inn, Selinsgrove, PA		-			157		2,511		93			2,519			250		5,030		5,280		(1,966	)		3,314	09/12/96
Hampton Inn, Danville, PA		-			300		2,787		99			1,282			399		4,069		4,468		(1,361	)		3,107	08/28/97
Hilton Garden Inn, Edison, NJ		-			-		12,159		-			(4,529	)		-		7,630		7,630		(2,583	)		5,047	10/01/03
Fairfield Inn, Laurel, MD		(7,071	)		927		6,120		(48	)		710			879		6,830		7,709		(1,463	)		6,246	01/31/05
Holiday Inn Exp, Malvern, PA		(3,822	)		2,639		5,324		(1,085	)		(2,261	)		1,554		3,063		4,617		(883	)		3,734	05/24/05
Residence Inn, Williamsburg, VA		(6,542	)		1,911		11,625		(495	)		(1,241	)		1,416		10,384		11,800		(3,084	)		8,716	11/22/05
Springhill Suites, Williamsburg, VA		(4,455	)		1,430		10,293		(755	)		(2,507	)		675		7,786		8,461		(2,567	)		5,894	11/22/05
Courtyard, Scranton, PA		(5,866	)		761		7,193		(106	)		712			655		7,905		8,560		(1,621	)		6,939	02/01/06
Fairfield Inn, Bethlehem, PA		(5,791	)		1,399		6,778		(426	)		(1,470	)		973		5,308		6,281		(1,166	)		5,115	01/03/06
Residence Inn, Dartmouth, MA		(8,223	)		1,933		10,434		(313	)		(851	)		1,620		9,583		11,203		(1,510	)		9,693	05/01/06
HyattHouse, Charlotte, NC		(7,330	)		770		7,315		-			1,654			770		8,969		9,739		(1,641	)		8,098	12/28/06
Holiday Inn, Norwich, CT		-			1,984		12,037		(1,085	)		(5,563	)		899		6,474		7,373		(1,377	)		5,996	07/01/07
Hilton Garden Inn, Glastonbury, CT		(12,658	)		1,898		12,981		(175	)		(1,135	)		1,723		11,846		13,569		(542	)		13,027	01/01/10

Total Assets Held For Sale	$	(61,758	)	$	16,409	$	110,666	$	(4,096	)	$	(10,268	)	$	12,313	$	100,398	$	112,711	$	(23,702	)	$	89,009

Total Real Estate	$	(718,033	)	$	303,738	$	1,154,732	$	(12,983	)	$	35,946		$	290,755	$	1,190,678	$	1,481,433	$	(139,057	)	$	1,342,376

(1) Costs capitalized subsequent to acquisition include reductions of asset value due to impairment.

* Assets are depreciated over a 7 to 40 year life, upon which the latest income statement is computed

The aggregate cost of land, buildings and improvements for Federal income tax purposes for the years ended December 31, 2011, 2010 and 2009 is approximately $1,362,064, $1,183,694, and $911,634 respectively.

Depreciation is computed for buildings and improvements using a useful life for these assets of 7 to 40 years.

	2011			2010			2009
Reconciliation of Real Estate
Balance at beginning of year	$	1,291,213		$	997,212		$	987,639
Additions during the year		248,358			297,450			79,170
Dispositions / Deconsolidation of consolidated joint venture during the year		(29,216	)		(3,449	)		(53,493	)
Changes / Impairments in Assets Held for Sale		(141,633	)		-			(37,406	)
Investment in Real Estate		1,368,722			1,291,213			975,910
Assets Held for Sale, net of impairment		112,711			-			21,302
Total Real Estate	$	1,481,433		$	1,291,213		$	997,212

Reconciliation of Accumulated Depreciation
Balance at beginning of year	$	112,161		$	83,556		$	67,824
Depreciation for year		28,229			29,654			22,667
Accumulated depreciation on assets sold		(1,333	)		(1,049	)		(6,935	)
Balance at the end of year	$	139,057		$	112,161		$	83,556