Hospitality Properties Trust Sells 18 Homestead Hotels For $205.35 Million

July 26, 2007

NEWTON, Mass.--Hospitality Properties Trust (NYSE: HPT) today announced that it has sold 18 Homestead Studio Suites hotels (2,399 rooms) for $205.35 million. HPT expects to recognize a gain on this sale of approximately $95 million.

HPT purchased these 18 hotels in 1999 from Homestead Village, Inc. (which was then a publicly owned company) for $145 million. The expected gain reflects depreciation expense realized by HPT since 1999. Simultaneous with this purchase, these hotels were leased by HPT to a subsidiary of that seller for minimum rent of $15,960,000/year plus percentage rent based upon increases in gross revenues at the hotels. In 2006, the percentage rent received by HPT for these hotels was approximately $509,000.

In 2001, an entity affiliated with Blackstone Group (NYSE: BX) purchased Homestead Village, Inc. and HPT's tenant for these hotels. On June 11, 2007, Blackstone sold Homestead Village, Inc. and the tenant entity together with a larger group of hotels to an affiliate of the Lightstone Group, a privately owned entity. This sale resolves outstanding disputes between HPT and Lightstone. Seventeen of these hotels were purchased by an affiliate of Lightstone for approximately $192.25 million. One hotel was purchased by HRPT Properties Trust (NYSE: HRP) for approximately $13.1 million, and this one hotel will be short term leased by an affiliate of Lightstone until that hotel property may be redeveloped as part of a larger project including adjacent property currently owned by HRPT Properties Trust.

HPT intends to use the net proceeds from the sale of these hotels to reduce amounts outstanding under its revolving bank credit agreement.

Hospitality Properties Trust is a real estate investment trust which owns 292 hotels and 186 hospitality and travel centers located throughout the United States, Puerto Rico and Ontario, Canada.

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

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.

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