Company Press Release
May 4, 2000
WASHINGTON, DC -- MeriStar Investment Partners, a $400 million investment partnership, yesterday announced that
it has completed the acquisition of the 249-suite Embassy Suites Walnut Creek in California. The property is the
ninth hotel acquired by the partnership since its April 1999 formation.
The partnership plans to invest approximately $1.5 million to renovate completely 72 suites (two floors), as well
as replace carpeting and other soft goods in public areas. Participants in the investment partnership are MeriStar
Hospitality Corporation (NYSE: MHX - news), MeriStar Hotels & Resorts (NYSE: MMH), which will manage the hotel,
and Oak Hill Capital Partners, L.P., a private equity investment group.
``The acquisition of the Embassy Suites Walnut Creek fits our strategy of acquiring high quality, attractively
priced hotels in locations with high barriers to new competition where we can improve their performance through
the application of capital and our proven operating strengths,'' said Paul Whetsell, chairman and CEO of both MeriStar
Hospitality and MeriStar Hotels & Resorts.
Located just off of Interstate 680 in Contra Costa County along the eastern edge of San Francisco Bay, the eight-story
hotel is within walking distance of approximately 1.5 million square feet of office space and directly across the
street from the Pleasant Hill station of the Bay Area Rapid Transit (BART). Hotel amenities include an eight-story
botanical atrium, indoor swimming pool, fitness center, Taos Bar & Grille, Taos Deli and 7,600 square feet
of meeting and banquet space. Each of the property's two-room suites features a separate living area, private bedroom
and wet bar with refrigerator and microwave oven. Guests enjoy a free, cooked-to-order breakfast each morning and
a two-hour manager's reception every evening.
``Our renovation plans will be conducted in phases in order to eliminate virtually any disruption to our guests,''
said David McCaslin, MeriStar Hotels & Resorts president and chief operating officer. ``The Walnut Creek Embassy
Suites has been a consistent market leader, and our goal is to improve upon that performance by maintaining the
property in peak condition through renovation and implementation of our proprietary management and marketing systems.''
Oak Hill Capital Partners, L.P. is a $1.5 billion private equity partnership sponsored by Robert M. Bass and his
team of investment professionals. Oak Hill Capital Partners makes significant investments in the form of acquisitions,
build-ups, recapitalizations, restructurings, strategic joint ventures and minority stakes across a wide range
of industries. Oak Hill Capital Partners Management, Inc., based in New York, New York and Menlo Park, California,
manages the partnership.
Washington, D.C.-based MeriStar Hospitality Corporation owns 116 principally upscale, full-service hotels in major
market and resort locations with 29,348 rooms in 27 states, the District of Columbia and Canada. The company owns
hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Radisson and Doubletree.
MeriStar Hotels & Resorts operates 236 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 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 Hotels & Resorts' and MeriStar Hospitality Corporation's filings with the Securities
and Exchange Commission.
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Contact:
MeriStar Investment Partners, Washington
Bruce Riggins, 202/295-2276
Director of Finance
or Melissa Thompson, 202/295-2228
Director of Corporate Communications
or
Daly Gray Public Relations, Herndon, VA
Jerry Daly or Chris Daly, media
703/435-6293