Hudson Hotels Announces Second Quarter 2000 Financial Results
Sales: $13.9 Million EBITDA: $5.2 Million EPS: 7 cents Net Income: Up 32%

Press Release: Hudson Hotels Corporation
August 15, 2000
ROCHESTER, NY -- Hudson Hotels Corporation (Nasdaq: HUDSC; ``Hudson'' or the ``Company''), Rochester, New York, yesterday announced its second quarter 2000 financial results. For the second quarter, Hudson had net income of $763,681, compared to net income of $577,177 in the second quarter of 1999, an increase of 32%. Earnings per share for that same period decreased from 9 cents in 1999 to 7 cents per share in 2000, based on a larger number of shares outstanding in the current quarter. Sales for the second quarter at $13,802,598 were flat compared to the second quarter of 1999 at $13,860,930. EBITDA, as well, remained constant for the comparable periods at $5.2 million.

Commenting on these results, E. Anthony Wilson, Chairman and Chief Executive Officer of the Company, stated ``the increase in net income is mainly due to significant reductions in corporate overhead and one month of reduced interest expense. The full affect of reduced interest expense will be felt in the third quarter and thereafter. Additionally, the continued increase in royalty revenue from the Microtel system enhances our bottom line.'' The Microtel system continues to expand and now has 196 properties open at June 30, 2000, compared to 151 at June 30, 1999.

                          HUDSON HOTELS CORPORATION
                             Results of Operation
                                 (Unaudited)

                               Three Month                 Six Month
                               Period Ended               Period Ended
                                 June 30                     June 30
                            2000         1999          2000          1999
    Total Operating
     Revenues          $13,802,598   $13,860,930  $25,650,776   $25,776,725
    EBITDA (a)           5,181,239     5,157,972    8,190,740     8,956,121
    Income (Loss)
     Before Tax (b)        747,276       553,990  (1,119,500)     (249,349)
    Net Income (Loss)      763,681       577,177  (1,175,308)     (256,716)
    Net Income (Loss)
     Per Share
      Basic                  $0.09         $0.09      $(0.17)       $(0.05)
      Diluted                $0.07         $0.09      $(0.17)       $(0.05)
    Weighted Average
     Number of Shares
     Outstanding         7,840,584     6,399,161    7,173,001     6,093,450

    (a)  Earnings before interest, taxes, depreciation and amortization.
    (b)  Income (Loss) from operations, before income taxes, minority interest
         and equity in income of affiliates.


Hudson Hotels Corporation is a Rochester, New York-based leading limited-service and middle market hotel development and management company. Hudson manages primarily well-known national hotel brands pursuant to franchise agreements from Marriott International, Inc., Hilton Hotels Corporation, Choice Hotels International, Inc., Bass Hotels and Resorts, Red Roof Inns, Inc., and U. S. Franchise Systems, Inc. The Company owns 25 hotels and manages a total of 46 hotels, together totaling more than 5,100 rooms.

Except for the historical information presented in this press release, the press release includes forward-looking statements that involve risks and uncertainties including, but not limited to, quarterly fluctuations and results, the management of growth, competition and other risks detailed in the Company's Securities and Exchange Commission filing. Actual results may differ materially from such information as set forth herein.

See the company's website: http://www.hudsonhotels.com.

SOURCE: Hudson Hotels Corporation