HERSHAour c om p a n y . o u r v i s i o n .

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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-in-

class 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.

neil h. shahpresident and

chief operating officer

jay h. shahchief executive officer

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

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,

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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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®

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.

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(In thousands, except per share data)

2016 2015 2014 2013 2012

2016 2015 2014 2013 2012hersha hospitality trustoperating data: (Excluding Impairment Charges)

consolidated hotel

operating results

(In thousands, except per share data) Year Ended December 31,

Total Revenues (Including Discontinued Operations) Net Income applicable to Common ShareholdersAdjusted EBITDAAdjusted Funds from Operations

per share data: (Excluding Impairment Charges)Diluted Earnings Per Common ShareAFFODistributions to Common Shareholders

balance sheet data: (as of December 31st)Total Assets Total Debt Total Liabilities and Equity

hotel operating revenues

average daily rateoccupancyrevenue per available room

$

$

$

470,385 27,440177,288118,093

0.562.351.12

1,962,6491,169,9641,962,649

419,346 54,638162,506102,832

1.081.961.04

1,855,539918,923

1,855,539

396,45844,467145,06486,487

0.881.640.96

1,748,097819,336

1,748,097

364,6908,376

143,29176,046

0.161.520.96

1,707,679792,708

1,707,679

466,629 95,579171,564109,804

2.182.401.32

2,155,5361,103,3272,155,536

470,272

197.2984.1%165.83

466,370

202.5982.5%167.13

417,226

187.8282.6%155.19

299,005

175.2378.6%137.78

338,064

179.7079.7%143.30

$

$

$

Year Ended December 31,

(1) Source: Bloomberg and SNL Financial. Total Returns from January 20, 1999 through December 31, 2016. (2) Reflects estimated 2017 Pro Forma Consolidated Portfolio EBITDA.

hersha portfolio by hotel brand

Marriott 37%

Independent 24%

Hilton 22%

Hyatt 11%

IHG 6%

2hersha portfolio by location

West Coast 26%

New York City 23%

Washington, DC 17%

Miami & Key West 11%

Boston 11%

Philadelphia 7%

Other 5%

2

hersha portfolio by market segment

Upscale 43%

Luxury/Upper Upscale 40%

Upper Midscale 17%

2

282%

212%

178%150% 150% 143%

125% 121% 112%

-6% -62%

267%

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SH

A

Noteworthy Financial Highlights

1hersha returns since ipo in 1999

GERMZ P&G Dow JonesNAREIT WalmartMicrosoftIBMSNL US REIT Hotel S&P 500

Ford

new york cityHyatt Union SquareDuane Street Hotel, TribecaNU Hotel, BrooklynHilton Garden Inn, Manhattan Midtown EastHilton Garden Inn, Tribeca Holiday Inn Express, Madison Square Garden Hampton Inn, Downtown Financial DistrictHampton Inn, Seaport Sheraton Hotel, JFK International Airport Hilton Garden Inn, JFK International AirportHoliday Inn Express, Times Square South3

Candlewood Suites, Times Square South3

Hampton Inn, Manhattan/Times Square3

Hampton Inn, Chelsea3

Hampton Inn, Madison Square Garden3

Holiday Inn, Wall Street3

Holiday Inn Express, Wall Street3

Hyatt House, White PlainsHoliday Inn Express, Chester

bostonThe Envoy, SeaportThe Boxer, BostonCourtyard by Marriott, Boston/BrooklineHoliday Inn Express, CambridgeCourtyard by Marriott, South Boston3

Holiday Inn Express, South Boston3

Mystic Marriott Hotel & Spa, Mystic

philadelphiaThe Rittenhouse, Center CityHampton Inn, Center City/Convention CenterSheraton Wilmington South, Wilmington

washington, d.c.The Ritz-Carlton, GeorgetownThe St. Gregory HotelThe Capitol Hill HotelHilton Garden Inn, M-StreetHampton Inn, Convention CenterResidence Inn by Marriott, Tysons Corner, VAHyatt House, Gaithersburg, MD

miami & key westThe Ritz-Carlton, Coconut Grove1

The Cadillac Courtyard Miami Beach OceanfrontThe Winter Haven Hotel, Miami BeachThe Blue Moon Hotel, Miami BeachResidence Inn by Marriott, Coconut GroveThe Parrot Key Hotel & Resort, Key West

west coastThe Pan Pacific, Seattle1

Courtyard by Marriott, SunnyvaleTownePlace Suites, SunnyvaleThe Sanctuary Beach Resort, Monterey BayThe Hotel Milo, Santa BarbaraThe Ambrose Hotel, Santa MonicaCourtyard by Marriott, Westside Los Angeles Courtyard by Marriott, Downtown San DiegoHyatt House, Pleasant Hill/Walnut Creek2

Hyatt House, Pleasanton/Dublin2

Hyatt House, Scottsdale, AZ2

Property Portfolio

1) Acquired February, 2017.2) Under contract to sell.3) Unconsolidated Joint-Venture.

HERSHA

Hasu P. ShahChairman, Hersha Hospitality Trust

Jay H. ShahChief Executive Officer, Hersha Hospitality Trust

Donald J. LandryLead Director, Hersha Hospitality TrustFormer President & CEO, Sunburst Hospitality Inc.

Michael A. LevenFormer President and Chief Operating Officer,Las Vegas Sands Corp.

Thomas J. Hutchison IIIFormer CEO, CNL Hotels & Resorts and CNL Retirement Properties, Inc.

Dianna F. MorganFormer Senior Vice President,Walt Disney World Co.

John M. SabinExecutive Vice President and CFO, Revolution LLC. and Case Foundation

Jay H. ShahChief Executive Officer

Neil H. ShahPresident and Chief Operating Officer

Ashish R. ParikhChief Financial Officer

Michael R. GillespieChief Accounting Officer

David L. DesforTreasurer and Corporate Secretary

William J. WalshSenior Vice President of Asset Management

Robert C. Hazard IIISenior Vice President of Acquisitions and Development

Bennett ThomasSenior Vice President of Finance and Sustainability

Registrant Address44 Hersha DriveHarrisburg, PA 17102Telephone: (717) 236-4400Fax: (717) 774-7383

independent registered public accounting firmKPMG LLP

common stock informationThe Common Stock of Hersha Hospitality Trust is traded on the New York Stock Exchange under the Symbol “HT”

management certificationsThe Company’s Chief Executive Officer and Chief FinancialOfficer provided certifications to the Securities and Exchange Commission as required by Section 302 of the Sarbanes-Oxley Act of 2002 and these certifications areincluded in the Company’s Annual Report on Form 10-K forthe year ended December 31, 2016. In addition, as requiredby 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 NYSEthe annual CEO certification regarding the Company’s compliance with the NYSE’s corporate governance listingstandards.

annual meetingThe annual meeting of shareholders of Hersha Hospitality Trustwill be held at 9:00 A.M. (EDT) on Thursday, June 1, 2017. Theannual shareholders meeting will take place at The Ritz-Carlton,Boston, 10 Avery Street, Boston, MA 02111, in The Avery Room.

corporate/securities counselHunton & Williams LLP

registrar & stock transfer agentAmerican Stock Transfer & Trust Company

executive officesOne Washington Square510 Walnut Street, 9th FloorPhiladelphia, PA 19106Telephone: (215) 238-1046Fax: (215) 238-0157

board of trustees management team

annual report on form 10-kShareholders may obtain a copy of the Company’s AnnualReport 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 atwww.hersha.com and refer to the Company’s SEC Filings.

HERSHA

www.hersha.com

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