Hersha Reports Options Cancellation Pact

Hersha Hospitality Trust, Harrisburg, Pa., has announced an agreement with Hasu P. Shah, Hersha's chairman and chief executive officer, and trustee K. D. Patel to cancel all the unit options held by them that were issued at the time of the company's initial public offering.The real estate investment trust said the units were issued in conjunction with a special stock appreciation rights plan established for the benefit of employees of Hersha's affiliated management company, Hersha Hospitality Management LP. To cancel the options and SARs, Hersha paid in cash the difference between the $6 exercise price and $9.69 (the closing price per common share on Dec. 11) for the more than 250,000 SARs outstanding. The proceeds were distributed to approximately 150 employees of HHMLP. The hotel REIT can be found online at http://www.hersha.com.