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1 HERSHA o u r c o m p a n y. o u r v i s i o n.

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3 HERSHA Hersha s position as one of the nation s premiere hospitality companies can be traced to the keen entrepreneurial spirit of its founders and the commitment to deliver value to our shareholders whether supported by favorable economic currents or through challenging market environments. Best-inclass capital allocation and operational capabilities managed by a talented, cycle-tested team has been foundational to our success. We continue to enhance our thoughtfully assembled portfolio, focusing on hotels that generate current income and promise strong future growth in the country s most valuable real estate markets. The characteristics that have distinguished Hersha since its inception are stronger today than at any time since we set out on this journey 17 years ago. Hersha s meaningful total return performance over the years proves the inherent value to our business approach, and energizes our commitment to creating sustainable long-term value for our shareholders now and well into the future. As we move forward well-positioned for the future, we take this opportunity to acknowledge and thank the professionals and teams with whom we have the privilege to work, and we take equal pride in thanking our fellow shareholders for their support, clarity and continued confidence. jay h. shah chief executive officer neil h. shah president and chief operating officer

4 HERSHA Since its IPO in 1999, Hersha Hospitality Trust has evolved into one of the leading hotel REITs in America. In furtherance of its strategic vision, 2016 was a transformative year as Hersha completed several multi-year value creating initiatives positioning the Company for growth for decades to come. Across the last several years, Hersha completed over $1.3 billion in hotel transactions, expanding the Company s presence in its strategic growth markets -- Boston, Washington, DC and the West Coast -- while reducing its exposure to the challenged Manhattan market and lower growth suburban markets. Today, Hersha s refined portfolio is concentrated in the nation s highest demand urban gateway and destination markets, with younger, high growth hotels that dominate the lifestyle and luxury segments. Hersha s ability to successfully execute complex and large scale transactions, as both a buyer and seller, while delivering consistent shareholder returns is a distinguishing hallmark of the Company s success. Hersha continually recycles investment capital and upgrades the quality of its portfolio by selling mature, lower growth hotels, and re-deploying the appreciated capital into newer, market leading hotels that are consistent with the Company s emerging strategic vision. The result is a differentiated portfolio clustered in the most dynamic markets in the country with sturdy current income and tremendous growth potential. Hersha s cycle-tested management team seeks to bridge the compromise between current yield and future growth in its portfolio strategy. The Company concentrates hotels in markets and locations

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7 HERSHA that are expected to grow at a faster rate over the long-term fueled by diverse hotel demand generators and barriers to new competition, with the added benefit of real estate appreciation. The Company focuses on high margin transient-oriented hotels, both branded and independent, that cater to today s business and leisure travelers and are designed and operated to create powerful customer loyalty. The Company's portfolio hotels consistently outperform the competition, delivering robust margins relative to their peers. The margin profile of select service hotels has been the foundation of Hersha s success, and its independent lifestyle and luxury hotels offer the Company greater profit margin growth and real estate value appreciation. Hersha s investment philosophy is underpinned by valuation, potential earnings growth and the dynamics of the real estate market where the hotel operates. The decision to acquire is made when all of the pieces come together and the Company believes it can bring its unique operational advantage to the investment. This opportunistic and nimble approach has enabled the Company to assemble a portfolio of hotels with durable income streams and attractive growth profiles. Though Hersha owns hotels across multiple rate segments -- from 3 star to 5 star -- the Company s acquisition philosophy is keenly focused on urban gateway and destination markets and their demand fundamentals. The portfolio concentration in New York City, Boston, Washington, DC, Miami and the West Coast drives extraordinary value from the long-term real estate appreciation in these markets,

8 HERSHA in addition to the sturdy growth in operating income that the hotels deliver. While investing in growth through new hotel acquisitions in our strategic markets is a priority, there are times when buying back the Company s stock is as productive, and allows a return of capital to shareholders, driving their returns. At Hersha, all major decisions are focused on long-term, sustainable value creation and commitment to total shareholder returns. When the Company s shares are trading below their intrinsic value, or below the private market valuation of the portfolio hotels, management will use excess capital to buy back shares. Over the course of the past several years, Hersha has repurchased approximately 20% of its public float. Share buybacks, in addition to the Company s strong dividend policy, are a demonstration of the Company s total return philosophy, and sustained commitment to shareholder value. Hersha has positioned itself as one of the country s premiere hospitality enterprises based on its proven thesis that ownership of high-quality real estate generating robust cash flow will outpace the market. The Company s unique hotel portfolio, characterized by high absolute RevPAR and sector-leading margins, located in the most valuable markets in the country is further supported by a talented management team that thinks like long-term investors and manages like owner-operators -- valuable clarity and differentiation in today s complex and crowded hospitality sector.

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11 HERSHA The EarthView sustainable hospitality program was born from Hersha s value for the communities in which it does business. A cross-functional team from our hotels and corporate finance developed and manages an economically sustainable program in furtherance of our belief that environmental and community stewardship are integral in maintaining and building a successful and growing business. Our approach is thoughtful and pragmatic. Hersha applies a rigorous quantitative methodology to measure EarthView s financial, environmental and social impact for the good of all stakeholders -- guests, team members, shareholders, communities, and the environment. Hersha breaks the compromise between strong economic returns and responsible stewardship of our communities and environment. Through EarthView, the Company studies and invests in capital projects that reduce energy and water consumption, positively impacting the portfolio s operating margins and return on investment. The Company s industry leadership in sustainability is recognized by numerous governmental agencies, cities, brands and trade organizations. Across multiple years, the National Association of Real Estate Investment Trusts (NAREIT) has rated Hersha as the top company in the Lodging & Resorts sector for best-in-class portfolio-wide energy use practices and sustainability initiatives. Hersha s commitment to sustainable hospitality is enduring, and a testament to how we build and deploy unique capabilities. Please visit us at Hersha.com to discover more about EarthView s innovative sustainability programs.

12 Noteworthy hersha returns since ipo in % 282% HERSHA 212% 178% 150% 150% 143% 125% 121% 112% -6% -62% RMZ P&G SNL US REIT Hotel S&P 500 NAREIT IBM Microsoft Walmart Dow Jones GE Ford hersha portfolio by market segment 2 Upscale 43% Luxury/Upper Upscale 40% Upper Midscale 17% hersha portfolio by location 2 hersha portfolio by hotel brand 2 West Coast 26% New York City 23% Washington, DC 17% Miami & Key West 11% Boston 11% Philadelphia 7% Other 5% Marriott 37% Independent 24% Hilton 22% Hyatt 11% IHG 6% (1) Source: Bloomberg and SNL Financial. Total Returns from January 20, 1999 through December 31, (2) Reflects estimated 2017 Pro Forma Consolidated Portfolio EBITDA.

13 Financial Highlights HERSHA (In thousands, except per share data) consolidated hotel operating results Year Ended December 31, hotel operating revenues $ 466, , , , ,005 average daily rate occupancy revenue per available room $ $ % % % % % (In thousands, except per share data) hersha hospitality trust operating data: (Excluding Impairment Charges) Year Ended December 31, Total Revenues (Including Discontinued Operations) Net Income applicable to Common Shareholders Adjusted EBITDA Adjusted Funds from Operations $ 466,629 95, , , ,385 27, , , ,346 54, , , ,458 44, ,064 86, ,690 8, ,291 76,046 per share data: (Excluding Impairment Charges) Diluted Earnings Per Common Share AFFO Distributions to Common Shareholders $ balance sheet data: (as of December 31st) Total Assets Total Debt Total Liabilities and Equity $ 2,155,536 1,103,327 2,155,536 1,962,649 1,169,964 1,962,649 1,855, ,923 1,855,539 1,748, ,336 1,748,097 1,707, ,708 1,707,679

14 Property Portfolio new york city Hyatt Union Square Duane Street Hotel, Tribeca NU Hotel, Brooklyn Hilton Garden Inn, Manhattan Midtown East Hilton Garden Inn, Tribeca Holiday Inn Express, Madison Square Garden Hampton Inn, Downtown Financial District Hampton Inn, Seaport Sheraton Hotel, JFK International Airport Hilton Garden Inn, JFK International Airport Holiday Inn Express, Times Square South 3 Candlewood Suites, Times Square South 3 Hampton Inn, Manhattan/Times Square 3 Hampton Inn, Chelsea 3 Hampton Inn, Madison Square Garden 3 Holiday Inn, Wall Street 3 Holiday Inn Express, Wall Street 3 Hyatt House, White Plains Holiday Inn Express, Chester boston The Envoy, Seaport The Boxer, Boston Courtyard by Marriott, Boston/Brookline Holiday Inn Express, Cambridge Courtyard by Marriott, South Boston 3 Holiday Inn Express, South Boston 3 Mystic Marriott Hotel & Spa, Mystic philaldelphia The Rittenhouse, Center City Hampton Inn, Center City/Convention Center Sheraton Wilmington South, Wilmington washington, d.c. The Ritz-Carlton, Georgetown The St. Gregory Hotel The Capitol Hill Hotel Hilton Garden Inn, M-Street Hampton Inn, Convention Center Residence Inn by Marriott, Tysons Corner, VA Hyatt House, Gaithersburg, MD miami & key west The Ritz-Carlton, Coconut Grove 1 The Cadillac Courtyard Miami Beach Oceanfront The Winter Haven Hotel, Miami Beach The Blue Moon Hotel, Miami Beach Residence Inn by Marriott, Coconut Grove The Parrot Key Hotel & Resort, Key West west coast The Pan Pacific, Seattle 1 Courtyard by Marriott, Sunnyvale TownePlace Suites, Sunnyvale The Sanctuary Beach Resort, Monterey Bay The Hotel Milo, Santa Barbara The Ambrose Hotel, Santa Monica Courtyard by Marriott, Westside Los Angeles Courtyard by Marriott, Downtown San Diego Hyatt House, Pleasant Hill/Walnut Creek 2 Hyatt House, Pleasanton/Dublin 2 Hyatt House, Scottsdale, AZ 2 1) Acquired February, ) Under contract to sell. 3) Unconsolidated Joint-Venture.

15 HERSHA board of trustees Hasu P. Shah Chairman, Hersha Hospitality Trust Jay H. Shah Chief Executive Officer, Hersha Hospitality Trust Donald J. Landry Lead Director, Hersha Hospitality Trust Former President & CEO, Sunburst Hospitality Inc. Michael A. Leven Former President and Chief Operating Officer, Las Vegas Sands Corp. Thomas J. Hutchison III Former CEO, CNL Hotels & Resorts and CNL Retirement Properties, Inc. Dianna F. Morgan Former Senior Vice President, Walt Disney World Co. John M. Sabin Executive Vice President and CFO, Revolution LLC. and Case Foundation management team Jay H. Shah Chief Executive Officer Neil H. Shah President and Chief Operating Officer Ashish R. Parikh Chief Financial Officer Michael R. Gillespie Chief Accounting Officer David L. Desfor Treasurer and Corporate Secretary William J. Walsh Senior Vice President of Asset Management Robert C. Hazard III Senior Vice President of Acquisitions and Development Bennett Thomas Senior Vice President of Finance and Sustainability executive offices One Washington Square 510 Walnut Street, 9th Floor Philadelphia, PA Telephone: (215) Fax: (215) corporate/securities counsel Hunton & Williams LLP independent registered public accounting firm KPMG LLP Registrant Address 44 Hersha Drive Harrisburg, PA Telephone: (717) Fax: (717) registrar & stock transfer agent American Stock Transfer & Trust Company common stock information The Common Stock of Hersha Hospitality Trust is traded on the New York Stock Exchange under the Symbol HT management certifications The Company s Chief Executive Officer and Chief Financial Officer provided certifications to the Securities and Exchange Commission as required by Section 302 of the Sarbanes-Oxley Act of 2002 and these certifications are included in the Company s Annual Report on Form 10-K for the year ended December 31, In addition, as required by Section 303A.12(a) of the New York Stock Exchange (NYSE) Listed Company Manual, on June 27, 2016 the Company s Chief Executive Officer submitted to the NYSE the annual CEO certification regarding the Company s compliance with the NYSE s corporate governance listing standards. annual report on form 10-k Shareholders may obtain a copy of the Company s Annual Report on Form 10-K as filed with the Securities and Exchange Commission free of charge (except for exhibits), by writing to the Company s Investor Relations Manager, Hersha Hospitality Trust, 510 Walnut Street, 9th Floor, Philadelphia, PA 19106; or, visit the Company s website at and refer to the Company s SEC Filings. annual meeting The annual meeting of shareholders of Hersha Hospitality Trust will be held at 9:00 A.M. (EDT) on Thursday, June 1, The annual shareholders meeting will take place at The Ritz-Carlton, Boston, 10 Avery Street, Boston, MA 02111, in The Avery Room.

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