LUXURY HOTEL PROJECT SECURES $55 MILLION CONSTRUCTION LOAN

NEW YORK CITY —A $55 million construction loan has been secured for a new upscale hotel currently under construction at the corner of Lexington Avenue and 48th Street in Midtown Manhattan, New York City. The 25-story tower will feature 116 guest suites. Hotel amenities will include a library lounge, a wine bar and café, an executive boardroom and a fitness center with in-room spa services. The project will also include 3,800 square feet of retail space fronting Lexington Avenue, which will be located on the ground and first floors of the building. Completion is scheduled for 2010. The loan was arranged by locally based Cushman & Wakefield Sonnenblick Goldman. The project is being developed by executives from Hersha Hospitality Trust. Upon completion, the hotel will be managed by Hersha Hospitality Management LP. Terms of the financing were not disclosed.