Hawthorn Inn & Suites Opens for Business

Company Press Release

March 8, 2000
ROCHESTER, NY -- Hudson Hotels Corporation, Rochester, New York (NASDAQ:HUDS; Hudson or the Company), the management company for the new Hawthorn Inn & Suites in Lancaster, PA (the ``Hotel'') announced the hotel opened its doors for business on Wednesday, March 1, 2000.

Diane Ragland, Senior Regional Director of Sales and Marketing for Hudson states that ``the Hotel will provide a full complement of services and amenities, including two separate telephone lines with separate modem and personal voicemail, daily complimentary full hot breakfast buffet, a Wednesday night reception, daily housekeeping service, cable television with movie channel, pay-per-view movies, exercise room, guest laundry, valet services, 24-hour front desk services and much more.''

Business or pleasure, the Hotel offers 73 business and family suites with living areas, efficiency kitchenettes, including appliances and dishes, everything to make your stay comfortable, enjoyable and as if you were at home. It is committed to providing its guests with fresh, clean accommodations and a friendly, reliable service.

The hotel is owned by Lancaster Hospitality, LLC, Mount Joy, PA. Managing members are J. Michael and Carole A. Futer; members include Ian L. Schouten and Barry Nunnally. Hawthorn Inn & Suites is part of U.S. Franchise Systems family of franchise offerings located in Atlanta, GA (401) 321-4045.

Hudson Hotels Corporation is a Rochester, New York-based leading limited-service hotel development and management company. Hudson manages primarily well-known national hotel brands pursuant to franchise agreements from Marriott International, Inc., Promus Hotels Corporation, Choice Hotels International, Inc., Red Roof Inns, Inc., Bass Hotels & Resorts and U.S. Franchise Systems, Inc. The Company owns 25 hotels and manages an additional 24 hotels for other owners for a total of 49 hotels, together totaling 5,380 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 filings. Actual results may differ materially from the information set forth herein.


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Contact:

Hudson Hotels Corporation, Rochester
E. Anthony Wilson/Thomas W. Blank, 716/454-3400