Both hotels will be managed by Hersha Hospitality Management, a Hersha-affiliated, regional hotel management company. "These acquisitions mark our commitment to growing our portfolio in the most desirable markets in the Northeast with the highest barriers to new competition," says Jay H. Shah, Hersha Hospitality president and chief operating officer.

Hersha is making a $3-million investment in the Four Points by Sheraton Boston hotel. The deal is a joint venture with locally based Krager Realty. Financial details of the acquisition of the Residence Inn Boston have not yet been released as the deal will close at the end of the month.

The trust acquired two hotels in Hartford, CT at the end of 2003 and Shah says that purchase along with this most recent purchase demonstrates the firm's commitment to expanding its portfolio in clusters and to establishing a significant foothold in New England with "the newest assets of the highest quality in our segment." Shah adds that Hersha is continuing to look acquisition opportunities, especially where the trust can cluster several properties together "to achieve economies of scale in marketing, purchasing and management."