CNL Invests in Hersha Op Unit

Hersha Hospitality Trust, Harrisburg, Pa., and CNL Hospitality Properties Inc., Orlando, Fla., have announced that CNL has invested $10 million in convertible preferred partnership units of Hersha Hospitality LP.The companies said CNL has committed to invest up to an additional $15 million in Hersha Hospitality LP, the operating partnership of the Hersha real estate investment trust, and up to $40 million in a joint venture with the partnership. The preferred partnership units and joint venture interests are convertible into common stock of the REIT at $6.7555 per share, the weighted average closing price of the stock over the 20 trading days ended April 21. CNL will own a majority limited partnership interest in the joint venture, and the REIT, which owns and operates mid-priced hotels in the Northeast, will serve as the general partner of the venture, the companies said. They can be found online at http://www.hersha.com and http://www.cnlonline.com.