INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2011

Equity Method Investments and Joint Ventures [Abstract]

Investment in unconsolidated joint ventures

As of December 31, 2011 and December 31, 2010 our investment in unconsolidated joint ventures consisted of the following:

		Percent			Preferred		December 31,		December 31,
Joint Venture	Hotel Properties	Owned			Return		2011		2010
Inn American Hospitality at Ewing, LLC	Courtyard by Marriott, Ewing, NJ		50.0	%	11.0% cumulative		$	-	$	28
SB Partners, LLC	Holiday Inn Express, South Boston, MA		50.0	%		N/A		1,681		1,852
Hiren Boston, LLC	Courtyard by Marriott, South Boston, MA		50.0	%		N/A		5,035		-
Mystic Partners, LLC	Hilton and Marriott branded hotels in CT and RI		8.8%-66.7	%	8.5% non-cumulative			23,762		25,935
Metro 29th Street Associates, LLC	Holiday Inn Express, New York, NY		50.0	%		N/A		8,361		7,746
							$	38,839	$	35,561

Summary financial information related to unconsolidated joint ventures

Balance Sheets

	December 31,			December 31,
	2011			2010
Assets
Investment in hotel properties, net	$	140,550		$	144,675
Other Assets		33,142			27,970
Assets Held For Sale		19,308			-
Total Assets	$	193,000		$	172,645
Liabilities and Equity
Mortgages and notes payable	$	139,032		$	156,976
Other liabilities		40,583			37,797
Liabilities Related to Assets Held For Sale		31,219			-
Equity:
Hersha Hospitality Trust		43,140			38,394
Joint Venture Partner(s)		(60,974	)		(60,522	)
Total Equity		(17,834	)		(22,128	)
Total Liabilities and Equity	$	193,000		$	172,645

Statements of Operations

	Twelve Months Ended December 31,
	2011			2010			2009
Room Revenue	$	69,945		$	62,297		$	69,654
Other Revenue		22,574			20,844			21,975
Operating Expenses		(60,844	)		(56,165	)		(61,706	)
Interest Expense		(8,378	)		(9,899	)		(14,378	)
Loss on Impairment of Building and Equipment		1			-			(7	)
Lease Expense		(5,505	)		(5,363	)		(5,647	)
Property Taxes and Insurance		(4,913	)		(6,128	)		(5,983	)
General and Administrative		(5,963	)		(6,163	)		(6,443	)
Loss Allocated to Noncontrolling Interests		(44	)		608			814
Depreciation and Amortization		(7,144	)		(9,056	)		(13,037	)
Net (loss) From Continuing Operations		(271	)		(9,025	)		(14,758	)
Income from Discontinued Operations		2,193			1,128			888
Net Income (Loss)		1,922			(7,897	)		(13,870	)

Reconciliation of the Company's share in unconsolidated joint ventures' equity to the Company's investment in unconsolidated joint ventures as presented on the Company's balance sheets

The following table is a reconciliation of the Company's share in the unconsolidated joint ventures' equity to the Company's investment in the unconsolidated joint ventures as presented on the Company's balance sheets as of December 31, 2011 and 2010.

	December 31,			December 31,
	2011			2010
Company's share of equity recorded on the joint ventures' financial statements	$	43,140		$	38,394
Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsoldiated joint ventures(1)		(4,301	)		(2,833	)
Investment in Unconsolidated Joint Ventures	$	38,839		$	35,561

(1)  Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following:

- cumulative impairment of our investment in joint ventures not reflected on the joint ventures' financial statements,

- our basis in the investment in joint ventures not recorded on the joint ventures' financial statements, and

- accumulated amortization of our equity in joint ventures that reflects our portion of the excess of the fair value of joint ventures' assets on the date of our investment over the carrying value of the assets recorded on the joint ventures financial statements.  This excess investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on our consolidated statement of operations.

Income Loss Table

Income (loss) recognized during the years ended December 31, 2011, 2010, and 2009, for our Investments in Unconsolidated Joint Ventures is as follows:

	Twelve Months Ended December 31,
	2011			2010			2009
PRA Glastonbury, LLC	$	-		$	-		$	(77	)
Inn American Hospitality at Ewing, LLC		(28	)		(331	)		(127	)
Hiren Boston, LLC		158			-			(460	)
SB Partners, LLC		(171	)		(83	)		(156	)
Mystic Partners, LLC		(364	)		(1,650	)		(1,686	)
PRA Suites at Glastonbury, LLC		-			-			(6	)
Metro 29th Street Associates, LLC		615			313			(137	)
		210			(1,751	)		(2,649	)
Impairment from Unconsolidated Joint Ventures		(1,677	)		-			(4,541	)
Gain from Remeasurement of Investment in Unconsolidated Joint Venture		2,757			4,008			-
Income (Loss) from Unconsolidated Joint Venture Investments	$	1,290		$	2,257		$	(7,190	)