MeriStar Hotels & Resorts Signs Agreement to Manage Sheraton National Hotel in Arlington, Va.

Company Press Release

March 17, 2000
WASHINGTON, DC -- MeriStar Hotels & Resorts (NYSE:MMH), the nation's largest independent management company, yesterday announced that the company signed an agreement to manage the 415-room Sheraton National Hotel in the Crystal City/Pentagon City area of Arlington, Virginia. The property is owned by National Hospitality Corporation, a wholly owned subsidiary of U.S. Property Development Corporation. The hotel will begin a comprehensive renovation to dramatically upgrade and reposition the property.

``The addition of the Sheraton National Hotel is an ideal fit with our growing portfolio of upscale hotels in hard-to-penetrate urban markets,'' said Paul Whetsell, MeriStar chairman and CEO. ``Our cluster of 10 hotels in the Washington, D.C./Northern Virginia market presents numerous synergies and cross-selling opportunities.''

Located near the Pentagon, the 15-story hotel is approximately 2.5 miles from the Ronald Reagan National Airport. The property features 20,000 square feet of meeting space, a business center, fitness center, three food and beverage outlets, enclosed rooftop swimming pool and 500 underground parking spaces. Rooms feature ergonomically designed chairs, ample task lighting, extra electrical outlets, personalized voice mail, and a combination printer/copier/fax machine.

MeriStar Hotels & Resorts operates 235 hospitality and leisure properties with more than 46,000 rooms and 10 golf courses in 34 states, the District of Columbia, Canada, Puerto Rico and the U.S. Virgin Islands.

The matters in this press release include ``forward looking statement'' 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's and MeriStar Hotels & Resorts' filings with the Securities and Exchange Commission.


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Contact:

MeriStar Hotels & Resorts, Washington
Bruce Riggins
Director of Finance
202/295-2276

Melissa Thompson
Director of Corporate Communications
202/295-2228
or
Daly Gray Public Relations, Herndon, Va
Jerry Daly or Chris Daly, media
703/435-6293