Hospitality Properties Trust Announces 2007 Second Quarter Results

August 1, 2007

NEWTON, Mass.--Hospitality Properties Trust (NYSE: HPT) today announced its results of operations for the quarter and six months ended June 30, 2007.

Results for the quarter ended June 30, 2007:

Net income available for common shareholders was $46.8 million, or $0.50 per share, for the quarter ended June 30, 2007, compared to $33.5 million, or $0.47 per share, for the same quarter last year.

Funds from operations (FFO) for the quarter ended June 30, 2007, were $111.5 million, or $1.19 per share. This compares to FFO for the quarter ended June 30, 2006, of $82.4 million, or $1.14 per share.

The weighted average number of common shares outstanding totaled 93.9 million and 72.0 million for the quarters ended June 30, 2007 and 2006, respectively.

Results for the six months ended June 30, 2007:

Net income available for common shareholders was $85.8 million, or $0.93 per share, for the six months ended June 30, 2007, compared to $66.8 million, or $0.93 per share, for the same period last year. Net income available for common shareholders for the six months ended June 30, 2007, includes $2.7 million, or $0.03 per share, of costs associated with the spin off of TravelCenters of America LLC (AMEX: TA), or TA, to HPT's shareholders on January 31, 2007.

Funds from operations (FFO) for the six months ended June 30, 2007, were $210.0 million, or $2.27 per share. This compares to FFO for the six months ended June 30, 2006, of $155.1 million, or $2.16 per share.

The weighted average number of common shares outstanding totaled 92.3 million and 71.9 million for the six months ended June 30, 2007 and 2006, respectively.

Hotel Portfolio Performance:

For the quarter ended June 30, 2007 compared to the same period in 2006, revenue per available room, or RevPAR, increased by 4.4% to $78.89, average daily rate, or ADR, increased 6.1% to $105.05 and occupancy declined 1.2 percentage points to 75.1%.

For the six months ended June 30, 2007 compared to the same period in 2006, RevPAR increased by 4.4% to $76.12, ADR increased 6.5% to $105.28 and occupancy declined 1.5 percentage points to 72.3%.

Investing Activities:

On May 30, 2007, HPT acquired 40 travel centers from Petro Stopping Centers Holdings, L.P. for approximately $655 million including closing costs. The purchase was funded with borrowings under HPT's revolving credit facility. Simultaneous with this acquisition, the sites were leased to TA for an initial minimum rent of $62.2 million per year.

Subsequent Event:

On July 26, 2007, HPT sold 18 Homestead Studio Suites hotels for approximately $205 million. Net proceeds from this sale were used to reduce amounts outstanding under HPT's revolving credit facility. HPT expects to recognize a gain on this sale of approximately $95 million in the 2007 third quarter.

Conference Call:

On Wednesday, August 1, 2007, at 1:00 p.m. Eastern Time, John Murray, president and chief operating officer, and Mark Kleifges, chief financial officer, will host a conference call to discuss the results for the second quarter and six months ended June 30, 2007.

The conference call telephone number is (800) 810-0924. Participants calling from outside the United States and Canada should dial (913) 981-4900. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through Tuesday, August 7, 2007. To hear the replay, dial (719) 457-0820. The replay pass code is 3942994.

A live audio webcast of the conference call will also be available in a listen only mode on the company's web site, which is located at www.hptreit.com. Participants wanting to access the webcast should visit the company's web site about five minutes before the call. The archived webcast will be available for replay on HPT's web site for about one week after the call.

Supplemental Data:

A copy of HPT's Second Quarter 2007 Supplemental Operating and Financial Data is available for download at HPT's web site, www.hptreit.com.

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns 292 hotels and 186 travel centers located in 44 states, Puerto Rico and Canada. HPT is headquartered in Newton, Massachusetts.

                     Hospitality Properties Trust
      CONSOLIDATED STATEMENT OF INCOME AND FUNDS FROM OPERATIONS
                (in thousands, except per share data)
                             (Unaudited)

                               Quarter Ended June   Six Months Ended
                                       30,               June 30,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues:
  Hotel operating revenues (1) $249,774  $233,627  $474,245  $435,455
  Rental income (1)              81,530    32,870   143,130    65,346
  FF&E reserve income (2)         5,769     5,273    11,208    10,263
  Interest income                   658       428     3,806       850
                               --------- --------- --------- ---------
    Total revenues              337,731   272,198   632,389   511,914
                               --------- --------- --------- ---------

Expenses:
  Hotel operating expenses (1)  184,311   172,625   344,709   316,814
  Interest (including
   amortization of deferred
   financing costs of $913,
   $635, $1,652 and $1,245,
   respectively)                 33,795    21,162    64,450    40,150
     Depreciation and
      amortization               55,259    35,848   104,330    70,800
  General and administrative     10,084     7,186    18,535    13,540
  TA spin off costs (3)              --        --     2,711        --
                               --------- --------- --------- ---------
    Total expenses              283,449   236,821   534,735   441,304
                               --------- --------- --------- ---------
Net income                       54,282    35,377    97,654    70,610
Preferred distributions          (7,470)   (1,914)  (11,829)   (3,828)
                               --------- --------- --------- ---------
Net income available for common
 shareholders                  $ 46,812  $ 33,463  $ 85,825  $ 66,782
                               ========= ========= ========= =========

Calculation of FFO (4):
Net income available for common
 shareholders                  $ 46,812  $ 33,463  $ 85,825  $ 66,782
Add: FF&E deposits not in net
 income (2)                         492       533       990     1,045
  Depreciation and amortization  55,259    35,848   104,330    70,800
  TA spin off costs (3)              --        --     2,711        --
  Deferred percentage rent (5)    1,684     1,528     3,354     3,176
  Deferred additional returns
   (6)                            7,294    10,993    12,793    13,343
                               --------- --------- --------- ---------
Funds from operations ("FFO")  $111,541  $ 82,365  $210,003  $155,146
                               ========= ========= ========= =========


Weighted average common shares
 outstanding                     93,868    71,953    92,323    71,937
                               ========= ========= ========= =========

Per common share amounts:
  Net income available for
   common shareholders         $   0.50  $   0.47  $   0.93  $   0.93
  FFO (4)                      $   1.19  $   1.14  $   2.27  $   2.16
  Common distributions declared$   0.76  $   0.74  $   1.52  $   1.47

NOTES TO CONSOLIDATED STATEMENT OF INCOME AND FUNDS FROM
OPERATIONS

(in thousands, except per share data)

(1) At June 30, 2007, each of our 310 hotels are included in one of eleven combinations of hotels of which 201 are leased to our taxable REIT subsidiaries and managed by independent hotel operating companies and 109 are leased to third parties. Our 186 travel centers are leased under two agreements. Our consolidated statement of income includes hotel operating revenues and expenses of managed hotels and rental income from our leased hotels and travel centers.

(2) Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E Reserve escrows. We own the FF&E Reserve escrows for all the hotels leased to our taxable REIT subsidiaries and for most of the hotels leased to third parties. We have a security and remainder interest in the FF&E Reserve escrows for the remaining hotels leased to third parties. When we own the FF&E Reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we have a security and remainder interest in the FF&E Reserve escrows, deposits are not included in revenue but are included in FFO. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.

(3) During the first quarter of 2007, we expensed $2,711 of costs in connection with the spin off of our former subsidiary, TravelCenters of America LLC, or TA, to our shareholders on January 31, 2007.

(4) We compute FFO as shown. Our calculation of FFO differs from the NAREIT definition because we include FF&E deposits not included in net income (see note 2), deferred percentage rent (see note 5) and deferred additional returns (see note 6) and exclude TA spin off costs (see note 3). We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense, it may facilitate comparison of operating performance among REITs. FFO does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is among the important factors considered by our board of trustees when determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future capital needs and operating performance.

(5) In calculating net income we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include the amount in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.

(6) Our share of the operating results of our managed hotels in excess of the minimum returns due to us, or additional returns, are generally determined based upon annual calculations. In calculating net income we recognize additional returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income, we include the amount in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.

                     Hospitality Properties Trust
                      CONSOLIDATED BALANCE SHEET
              (dollars in thousands, except share data)
                                              June 30,     December
                                                              31,
                                                2007         2006
                                             ------------ ------------
                                             (Unaudited)   (Audited)
ASSETS
--------------------------------------------

Real estate properties, at cost:
  Land                                       $ 1,399,743  $   584,199
  Buildings, improvements and equipment        4,859,610    3,457,818
                                             ------------ ------------
                                               6,259,353    4,042,017
Accumulated depreciation                        (776,165)    (707,838)
                                             ------------ ------------
                                               5,483,188    3,334,179
Cash and cash equivalents                         11,535      553,256
Restricted cash (FF&E reserve escrow)             30,684       27,363
Other assets, net                                264,606       42,665
                                             ------------ ------------
                                             $ 5,790,013  $ 3,957,463
                                             ============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------

Revolving credit facility                    $   658,000  $         -
Senior notes, net of discounts                 1,495,330    1,196,130
Convertible senior notes                         575,000            -
Mortgage payable                                   3,664        3,700
Security deposits                                185,366      185,366
Accounts payable and other liabilities           153,320      119,536
Due to affiliate                                   3,074        3,277
Dividends payable                                  4,754        1,914
                                             ------------ ------------
  Total liabilities                            3,078,508    1,509,923
                                             ------------ ------------

Commitments and contingencies

Shareholders' equity:
  Preferred shares of beneficial interest;
   no par value; 100,000,000 shares
   authorized:
Series B preferred shares; 8 7/8% cumulative
redeemable; 3,450,000 shares issued and
 outstanding,
aggregate liquidation preference $86,250          83,306       83,306
Series C preferred shares; 7% cumulative
 redeemable;
12,700,000 shares and none issued and
 outstanding,
respectively, aggregate liquidation
 preference $317,500                             306,833            -
  Common shares of beneficial interest;
   $0.01 par value; 150,000,000 shares
   authorized; 93,869,429 and 86,284,251
   shares issued and outstanding,
   respectively                                      939          863
  Additional paid-in capital                   3,048,690    2,703,687
  Cumulative net income                        1,477,765    1,380,111
  Cumulative preferred distributions             (78,821)     (66,992)
  Cumulative common distributions             (2,127,207)  (1,653,435)
                                             ------------ ------------
Total shareholders' equity                     2,711,505    2,447,540
                                             ------------ ------------
                                             $ 5,790,013  $ 3,957,463
                                             ============ ============

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

Hospitality Properties Trust
Timothy A. Bonang
617-796-8149
www.hptreit.com
Manager of Investor Relations

Cautionary Language

The information appearing on HPT’s website includes statements which constitute forward looking statements. These forward looking statements are based upon HPT’s present intents, beliefs or expectations, but forward looking statements are not guaranteed to occur and may not occur. HPT’s actual results may differ materially from those contained in HPT’s forward looking statements. The information contained in HPT’s filings with the Securities and Exchange Commission, including under “Risk Factors" and “Warnings Concerning Forward Looking Statements” in HPT’s periodic reports and other filings, identifies important factors that could cause HPT’s actual results to differ materially from those stated in HPT’s forward looking statements. HPT’s filings with the SEC are available on the SEC’s website at www.sec.gov and are also accessible on HPT’s website at the following link: SEC Filings. You should not place undue reliance upon forward looking statements.

The documents provided in this archived section are provided for historical purposes only. The information contained in each document is accurate only as of the date each document was originally issued or such earlier date stated in those documents. Except as required by law, Hospitality Properties Trust does not undertake any obligation to update any information contained in these documents. For current information about the company, please refer to our most recent public SEC Filings.

OK