FelCor and MeriStar Registration Statement Declared Effective By SEC

Press Release: FelCor Lodging Trust Incorporated
September 14, 2001
IRVING, TX -- FelCor Lodging Trust Incorporated (NYSE: FCH), the nation's second largest hotel real estate investment trust (REIT), yesterday announced that the Form S-4 Registration Statement containing the Joint Proxy/Prospectus was declared effective by the Securities and Exchange Commission. The company also announced October 11, 2001, as the revised date of the Company's Meeting of Shareholders called to vote in connection with the acquisition of MeriStar Hospitality Corporation (NYSE: MHX). The acquisition of MeriStar, by merger, was previously announced on May 10, 2001.

The Shareholders Meeting will begin at 10:00 a.m. Central Time at FelCor's offices at 545 E. John Carpenter Frwy., Suite 1300, in Irving, Texas. The Company previously announced a record date of August 24, 2001, to establish the shareholders entitled to notice of and to vote at its special shareholders meeting. Mailings to shareholders of record of proxy solicitation materials will commence on September 12, 2001 and are on file with the Securities and Exchange Commission.

``We look forward to a successful shareholders' vote of the MeriStar merger,'' said Thomas J. Corcoran, FelCor's President and CEO. ``Despite the current challenging operating environment and Tuesday's tragedy, the strategy and benefits of the merger, remain unchanged and favorably position the Company as the largest hotel REIT.''

On May 10, 2001, FelCor announced the $2.7 billion acquisition, through merger, of the hotel assets of MeriStar Hospitality Corporation. The transaction will result in a pro forma market capitalization of $6.0 billion for the combined company, bringing the number of hotels owned by FelCor to 298, with approximately 78,000 rooms and suites, and establishing FelCor as the largest hotel REIT. FelCor is the world's largest owner of Embassy Suites®, Crowne Plaza®, Holiday Inn® and independently owned Doubletree®-branded hotels. Upon the closing of the merger, FelCor also will become the world's largest independent owner of Hilton®, Radisson®, Sheraton® and Westin® hotels. MeriStar Hotels and Resorts (NYSE: MMH) will continue to manage the hotel assets acquired from MeriStar.

FelCor's hotel portfolio consists of 185 hotels with approximately 50,000 rooms and suites and is concentrated primarily in the upscale and full-service segments. FelCor has a current market capitalization of approximately $3.3 billion. Additional information can be found on the Company's website at www.felcor.com .

Proxy solicitation materials contain information regarding the identity and interests of persons who may be deemed participants in this solicitation. Investors are urged to read the Joint Proxy Statement/Prospectus regarding the merger because it contains important information. This information is also available on the Securities and Exchange Commission website at www.sec.gov . Hard copies of the Joint Proxy Statement/Prospectus and other filed documents can also be obtained for free from FelCor Lodging Trust by directing a request to FelCor Lodging Trust, 545 E. John Carpenter Frwy., Suite 1300, Irving, Texas, 75062, Attention: Investor Relations.

With the exception of historical information, the matters discussed in this news release include ``forward looking statements'' within the meaning of the federal securities laws that are qualified by cautionary statements contained herein and in FelCor's filings with the Securities and Exchange Commission.

SOURCE: FelCor Lodging Trust Incorporated