Education Realty Trust Provides Update on Hotel Development at Indiana University of Pennsylvania Campus


MEMPHIS, Tenn., March 8, 2010 (GLOBE NEWSWIRE) -- Education Realty Trust, Inc. (NYSE:EDR) today provided an update on a previously announced agreement the Company's development subsidiary, Allen & O'Hara Development Co., LLC (Allen & O'Hara), signed to provide Indiana University of Pennsylvania (FIUP) third party development and construction oversight services for a new hotel to be located on the IUP campus.

EDR will not be the owner of the hotel, which will be a mid-sized hotel connected to the Kovalchick Convention and Athletic complex (KCAC), now under construction at Indiana University of Pennsylvania. According to Dan Prushnok, President of the FIUP Board of Directors, a hotel franchise affiliation has not yet been determined but discussions are being held with a number of national hotel companies.

Allen & O'Hara was selected by the Foundation because of its successful public-private partnership with the university in EDR's replacement of 3,500 beds of housing on the IUP campus over the last four years. Known as the Residential Revival, the housing replacement program was put in place to stimulate new enrollment growth for the university.

In September 2007, the IUP Council of Trustees approved the authorization of a ground lease arrangement for the hotel with the Foundation for IUP. The KCAC hotel project has been in the discussion phase since July 2007, when IUP President Dr. Tony Atwater announced the intention for IUP officials to move forward with construction of a hotel connected to the facility.

The KCAC is a 150,000-square-foot building that will offer the 4,000- to 6,000-seat Ed Fry Arena, the 650-seat Christine Toretti auditorium, athletic department administrative offices and conference facilities.

The hotel project is projected to generate more than $211 million in economic impact for the region in the first decade of operation. Coupled with the economic impact projections for the KCAC, the two properties are projected to generate more than $358 million in economic impact for the regional community.

EDR is one of the nation's largest developers, owners and managers of quality university housing properties. The company also has a 50-year history of developing hotels. EDR will not be the owner of this hotel.

The hotel will start construction as soon as possible during 2010.   Allen & O'Hara's development services are subject to finalized project feasibility, executing final agreements with FIUP and obtaining project financing.

About Education Realty Trust

Education Realty Trust (NYSE:EDR) is a self-administered, self-managed real estate investment trust that currently owns, develops and manages 64 high-quality student housing communities in 22 states with 37,827 beds. Led by a team with more than 200 years of collective industry experience, EDR is one of America's largest owners and operators of collegiate student housing. For more information, please visit the Company's website at www.educationrealty.com.

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Statements about the Company's business that are not historical facts are "forward-looking statements." Forward-looking statements are based on current expectations. You should not rely on our forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Company's future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such statements. Such risks are set forth under the captions "Item 1A. Risk Factors" and "Forward-Looking Statements" in our annual report on Form 10-K and under the caption "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" (or similar captions) in our quarterly reports on Form 10-Q, and as described in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any guidance or other forward-looking statement, whether as a result of new information, future developments, or otherwise.



            

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