MERISTAR HOSPITALITY COMPLETES $330 MILLION LONG-TERM FINANCING

Source: MeriStar Hospitality Corporation

August 19, 1999
WASHINGTON, D.C.-- MeriStar Hospitality Corporation (NYSE: MHX), a hotel real estate investment trust (REIT), today announced that it has completed a $330 million long-term mortgage financing.

The multi-property, 7.75 percent fixed-rate loan package was provided by affiliates of Lehman Brothers and Goldman, Sachs & Co. The non-recourse, 10-year financing is secured by a portfolio of 19 hotels, all of which are leased to and managed by MeriStar Hotels & Resorts, Inc. (NYSE: MMH). Net proceeds will be used to repay existing secured financing maturing in February 2000.

"This financing is consistent with our strategy of locking in attractive fixed rates and extending our maturities," said John Emery, chief financial officer of MeriStar Hospitality. "The Company now has no significant debt maturities until 2003. Our total debt outstanding of $1.68 billion has an average remaining maturity of seven years with an average rate of approximately seven percent."

Washington, D.C.-based MeriStar Hospitality Corporation owns 117 principally upscale, full-service hotels in major market and resort locations with 29,468 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 leases or manages 217 hotels with 45,439 rooms in 34 states, the District of Columbia, Canada and the U.S. Virgin Islands
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For more information about MeriStar Hospitality Corporation and MeriStar Hotels & Resorts, Inc., visit the companies' web site: http://www.meristar.com.

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 Hospitality's and MeriStar Hotels & Resorts' filings with the Securities and Exchange Commission.


CONTACT: Media:
Daly Gray Public Relations
Jerry Daly or Carol McCune
609/383-1414
or
At the Company:
Nicole Watson, Director of Corporate Communications
202/295-2252
or
An Phung, Assistant Treasurer
202/295-2214