Calling the company's 2007 growth "very strong" during aconference call, Jay Shah, CEO, said "significant internal growthfrom both our stabilized and newer hotels contributed to our 16.1%revenue increase per available room." He also said RevPAR growth inthe Hersha properties in the metro areas of New York City, Bostonand Washington, DC rose 28.4%, 20.6% and 18.6%, respectively. Thatcompared with overall industry estimates of 13.5%, 18.6%, and 7.4%,respectively for those same markets, he noted.

Just seven hotels were added to the Hersha portfolio in 2007,compared with 44 additions during the previous two years. "Wepurposely shifted our primary focus to internal growth and assetmanagement in order to drive our portfolio RevPAR and hotelprofitability," he said, adding that would be a "continuingpriority in the years ahead."

During a Q and A session with Wall Street analysts, Shahacknowledged "many uncertain factors in the coming year." Thecompany's 2008 guidance calls for consolidated same-store RevPARgrowth of between 4% and 5%.