Press Release
March 23, 2001
WASHINGTON, DC -- MeriStar Hotels & Resorts (NYSE: MMH), the nation's largest independent hotel management
company, today announced that it has jointly agreed with American Skiing Company (NYSE: SKI) to withdraw plans
to merge the two companies due to the impact of adverse economic conditions on the companies' ability to effect
the capital markets transactions required to consummate the merger.
Accordingly, MeriStar's shareholders meeting, scheduled for March 26, has been cancelled. There will be no termination
fees due or payable by either party.
``Given the slowdown in the economy, we believe it is more prudent for us to continue to focus on our core business
of operating hotels, rather than consummate the merger,'' said Paul Whetsell, MeriStar Hotels & Resorts chairman
and chief executive officer. ``American Skiing has great potential, and we wish them well in their future endeavors.''
Whetsell noted that MeriStar Hotels & Resorts is confident that its first quarter earnings remain in line with
internal forecasts. He added that for the short term, the company will continue to focus on its three primary businesses:
1) Hotel management--With 268 primarily full-service hotels and resorts under a variety of franchise flags in the United States, Canada and the Caribbean in its management portfolio, MeriStar is the nation's largest independent hotel management company. Hospitality management will remain the primary focus, and the company will concentrate on growth by improving operations at properties currently under management, as well as adding new properties to its management portfolio. 2) BridgeStreet Corporate Housing Worldwide--Presently the third largest provider of corporate housing, BridgeStreet serves a broad cross-section of major international corporations with facilities in the United States, Canada and Europe. The company currently is examining growth opportunities both in the United States and overseas. 3) Doral resorts and conference centers--MeriStar currently manages four Doral resorts and conference centers, located in the United States and the Caribbean, as well as 12 golf courses. The company expects to selectively add to Doral by branding certain resorts and conference centers it currently manages, as well as through new management contracts and joint venture activity.
``Our hotel management business provides substantial, consistent cash flow, even in a changing economy, and
positions us to continue to reduce debt and execute our growth strategy,'' said John Emery, MeriStar's chief investment
officer. ``We continue to have a prudent and conservative capital structure that gives us flexibility and liquidity.''
MeriStar Hotels & Resorts operates 268 hospitality properties with more than 55,000 rooms in 36 states, the
District of Columbia, Canada, Puerto Rico and the U.S. Virgin Islands, including 54 properties managed by Flagstone
Hospitality Management, a subsidiary of MeriStar Hotels & Resorts. Through its Doral Golf brand, MeriStar manages
12 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 and Europe. For more information about MeriStar Hotels & Resorts, visit the company's Web site: www.meristar.com.
This press release contains forward-looking statements about MeriStar Hotels & Resorts, Inc., including those
statements regarding future operating results and the timing and composition of revenues, among others. 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 following: the ability of MeriStar Hotels & Resorts to successfully implement its acquisition strategy
and operating strategy; the company's ability to manage rapid expansion; significant leverage; changes in economic
cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable
to the company.
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Contact:
MeriStar Hotels & Resorts
Bruce Riggins, 202/295-2276
Melissa Thompson, 202/295-2228
or
Media:
Daly Gray Public Relations
Jerry Daly or Carol McCune, 703/435-6293