Press Release: MeriStar Hospitality
December 4, 2001
WASHINGTON, DC -- MeriStar Hospitality (NYSE: MHX), the nation's third largest hotel real estate investment trust
(REIT), yesterday announced that it has acquired from Prime Hospitality (NYSE: PDQ) leases on the final four of
eight hotels previously leased and managed by Prime.
The four hotels will be managed by MeriStar Hotels & Resorts (NYSE: MMH), the nation's largest independent
hotel management company. The leases were acquired at no cost to MeriStar.
The reassignment was precipitated by the enactment of the REIT Modernization Act (RMA), which allows REITs greater
control of their properties by establishing taxable REIT subsidiaries which function as lessees, with hotel management
provided by independent companies. MeriStar Hospitality converted the majority of its leases on January 1, 2001.
``Our entire portfolio now is being managed by MeriStar Hotels & Resorts which, through our paperclip arrangement,
more closely aligns ownership and management,'' said Paul Whetsell, chairman and CEO of both MMH and MHX. ``In
addition to a more focused approach, we expect to benefit from MeriStar Hotels & Resorts' size and scope in
terms of operating synergies, purchasing and cross-marketing.''
The four hotels are: the 201-room Crowne Plaza Las Vegas and the 149-room St. Tropez, both in Las Vegas, Nev.,
the 161-room Crowne Plaza Lake Oswego in Ore. and the 150-room Ramada Plaza Hotel in Meriden, Conn.
Washington, D.C.-based MeriStar Hospitality Corporation owns 112 principally upscale, full-service hotels in major
markets and resort locations with 28,597 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 276 hospitality properties with more than 57,000 rooms in 41 states, the
District of Columbia, and Canada, including 54 properties managed by Flagstone Hospitality Management, a subsidiary
of MeriStar Hotels & Resorts. Through its Doral Golf division, MeriStar manages seven golf courses. BridgeStreet
Corporate Housing Worldwide, a MeriStar subsidiary, is one of the world's largest corporate housing providers,
offering upscale, fully furnished corporate housing throughout the United States, Canada, the United Kingdom, Paris,
France and 35 additional countries through its network partners.
For more information about MeriStar Hospitality Corporation and MeriStar Hotels & Resorts, visit the companies'
Web site: www.meristar.com.
This press release contains ``forward-looking statements,'' within the meaning of the Private Securities Litigation
Reform Act of 1995, about the Company, including those statements regarding future operating results and the timing
and composition of revenues, among others, and statements containing words such as ``expects,'' ``believes'' or
``will,'' which indicate that those statements are forward-looking. Except for historical information, the matters
discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties
that could cause the actual results to differ materially, including the effects of the events of September 11,
2001 and the downturn in the economy. Additional risks are discussed in the Company's filings with the Securities
and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2000.
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Contact:
MeriStar Hospitality
Communications:
Melissa Thompson, 202/295-2228
or
Daly Gray Public Relations
Media:
Jerry Daly or Chris Daly, 703/435-6293