The total operating revenues for its 56 consolidated hotelsincreased from $23.9 million in the Q1 2006 to $46.4 million for Q1of this year, an increase of 94%, Shah said. The increase was dueto an increase in room revenues and hotel acquisitions such as theacquisition of the LodgeWorks portfolio which increased itspresence in the California and Arizona markets, as GlobeSt.comreported.

There was an increase in net loss applicable to commonshareholders for Q1 of $5.4 million, as compared to a net loss of$5.1 million for the Q1 2006, CFO Ashish Parikh said. The increasewas due to increased interest expenses and other expenses fromHersha's property acquisitions.

However, operating income increased in the first quarter to $5.8million, compared to $1.9 million for the first quarter of 2006;due to an increase in the average daily rate, partial stabilizationof newer assts and the ability to decrease some administrativecosts because of the increased scale of operations fromacquisitions, Parikh said.