MeriStar Hospitality Corporation Sells Three Limited-Service Hotels

Company Press Release
June 21, 2000
WASHINGTON, DC -- MeriStar Hospitality Corporation (NYSE: MHX), the nation's third largest hotel real estate investment trust (REIT), yesterday announced that it has completed the sale of three limited-service hotels from its portfolio--the 168-room Hampton Inn Ocean City, Md.; the 159-room Holiday Inn Express B.W.I. Airport, Baltimore, Md.; and the 125-room Hampton Inn Richmond Airport, Va. The REIT specializes in upscale, full-service hotels in major market and resort locations in North America.

``The sale of these limited-service hotels is consistent with our previously announced strategy to divest non-core assets and use the proceeds to reduce debt, repurchase shares and invest in higher-yielding properties with greater strategic value to the REIT,'' said John Emery, chief operating officer.

Washington, D.C.-based MeriStar Hospitality Corporation owns 113 principally upscale, full-service hotels in major market and resort locations with 28,897 rooms in 27 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Weston, Radisson and Doubletree. For more information about MeriStar Hospitality Corporation, visit the company's web site: www.meristar.com.

The matters in this press release include ``forward-looking statements'' within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are qualified by cautionary statements contained herein and in MeriStar Hospitality Corporation's filings with the Securities and Exchange Commission.


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Contact:

MeriStar Hospitality Corporation
Bruce Riggins, Director of Finance, 202/295-2276
or
Melissa Thompson, Director of Corporate Communications

202/295-2228

or
Daly Gray Public Relations (Media)
Jerry Daly or Carol McCune
703/435-6293