Press Release
ATLANTA, GA -- Buckhead America Corporation (NASDAQ:BUCK), the hospitality services company, said it expanded an
agreement with Cassland Corp., East Point, Ga., covering the development of an additional 20 Country Hearth Inn
hotels in the rural Southeast during the next five years.
Cassland, a closely held real estate holding company, agreed in 1998 to develop up to 10 Country Hearths Inns using
Buckhead America's proprietary "Rural Gold" concept, a 40-unit property targeted specifically at smaller,
rural hospitality markets. So far, in accordance with the agreement, Cassland has opened three hotels in Georgia.
The new agreement covers 20 additional properties primarily in the state of Georgia. One hotel already is under
construction in Fitzgerald, Ga., and two others are under development in Hampton and Toccoa, Ga. The hotels would
be developed by Cassland and franchised and managed by Buckhead America. Cassland also received exclusive development
rights for Country Hearth Inns in Georgia in communities under 15,000 in population.
Cassland is controlled by the Kassam family, which also owns about 12 percent of Buckhead America's outstanding
shares.
Azim Kassam, president of Cassland, said, "We are extremely pleased with our existing Country Hearth Inn properties
and we are finding more markets every day that meet the 'Rural Gold' criteria of a smaller, rural community with
an industrial base but little, if any, hotel accommodations."
Douglas C. Collins, chairman, president and chief executive of Buckhead America, said, "Our 'Rural Gold' concept
bypasses the big-city and road-side hospitality markets that have been overbuilt in recent years and focuses on
under-served rural markets. This new agreement with a respected developer and major shareholder confirms we are
going in the right direction."
Country Hearth Inns are mid-priced hotels that serve both the business traveler and vacationer. The hotels combine
the homey atmosphere of a bed- and-breakfast, including an expanded complimentary breakfast, manager's reception
and free local telephone calls, with the convenience of a modern hotel. Buckhead America is expanding the chain
through franchise sales and company development.
Buckhead America is a diversified hospitality services company whose holdings include the 51-hotel Country Hearth
Inn lodging system, The Lodge Keeper Group, a hotel-management company, and 33 additional hotels owned, leased
and/or managed.
Buckhead America common shares trade on the Nasdaq National Market System under the symbol "BUCK."
Certain statements contained in this release are forward-looking statements as defined under the Private Securities
Litigation Reform Act of 1995 based on current expectations. The accuracy of such statements is subject to a number
of risks, uncertainties and assumptions including, but not limited to, the effect of general economic conditions
on real estate investments and hotel development and franchising, and other factors listed in Buckhead America
Corp.'s Securities and Exchange Commission filings, including its form 10-KSB for the year ended December 31, 1999,
and in the "RISK FACTOR" section of its Registration Statement on Form S-3.
Contact: Patrick Wallace of Wallace & Associates, 770-579-8154, for Buckhead America Corporation