The seller is Hersha Development Corp. and Hersha Hospitality Management LP will manage the properties. Both are affiliates of the REIT. Shah describes the REIT's relationship with the development company this way: "We obtain a lot of assets from our affiliated development company, since the REIT doesn't take on development risk. We don't do a forward commitment for the properties, and there is no first right of refusal. If the REIT can't afford to purchase the properties at market rate, or if it doesn't want to acquire them for any reason, the development company retains them.

"These two hotels are strong infill opportunities to our already successful Maryland and central Pennsylvania cluster of properties, allowing for significant economies of scale," he adds. This acquisition follows by 10 days Hersha's purchase of two Marriott-branded properties. They are in Greenbelt, MD near Washington DC, and in Princeton, NJ, just outside of Philadelphia.

The latest acquisitions are brand new. Hilton Garden Inn opened a week ago and the Frederick Comfort Inn opened three months ago. Both "further our strategy of targeting high quality assets in leading markets in the Northeastern US," Shah says.

The Hilton at 1061 York St. in Gettysburg is near that town's historic battlefields and Gettysburg College and is a short drive from Harrisburg and attractions in Hershey. It has a 24-hour convenience mart, exercise facilities, indoor pool and spa, a 24-hour business center, and in-room, free Internet access.

The four-story Comfort Inn at 7300 Executive Way in Frederick is on the I-70 corridor in the Baltimore-Washington metro area. It has a fitness center, free high-speed Internet access and free local phone service.