HUDSON HOTELS ANNOUNCES RESIGNATION OF JOHN M. SABIN, FHIEF FINANCIAL OFFICER

Press Release: Hudson Hotels Corporation

August 24, 2999
ROCHESTER, NY -- Hudson Hotels Corporation, (Nasdaq: HUDS; "Hudson'' or the "Company'') today announced that John M. Sabin the Company's Chief Financial Officer will resign his position effective September 1, 1999. Mr. Sabin is resigning as a part of the Company's restructuring plan that includes efforts to reduce corporate overhead.

Commenting on his decision to leave the Company Mr. Sabin said, "When I joined Hudson, the Company was planning to 'paper-clip' to a public REIT that would provide growth capital and a major part of my opportunity would have been my involvement with the REIT. Unfortunately rapid changes in the capital markets last fall prevented the REIT from completing its initial public offering. As a result, I have determined that it is time to seek new opportunities.''

E. Anthony Wilson, Hudson's Chairman and Chief Executive Officer added, "John has been a significant contributor to the Company and I will miss his advice and expertise. I expect that he will remain a friend of mine and of the Company and I hope that he can be involved in future ventures with Hudson, if conditions allow. Interim Chief Financial Officer duties will be shared by myself and Taras M. Kolcio, Chief Accounting Officer.''

Hudson Hotels Corporation is a Rochester, New York-based leading limited-service hotel development and management company. Hudson manages primarily well-known national hotel brands pursuant to franchise agreements from Marriott International, Inc. (NYSE: MAR), Promus Hotels Corporation (NYSE: PRH), Choice Hotels International, Inc. (NYSE:CHH), Red Roof Inns, Inc. (NYSE: RRI), Bass Hotels & Resorts (NYSE: BAS) and U.S. Franchise Systems, Inc. (Nasdaq: USFS). The Company owns 25 hotels and has agreements to manage a total of 46 hotels with 5,115 rooms.

Except for the historical information presented in this press release, the press release includes forward-looking statements that involve risks and uncertainties including, but not limited to, quarterly fluctuations and results, the management of growth, competition and other risks detailed in the Company's Securities and Exchange Commission filings. Actual results may differ materially from the information set forth herein.

SOURCE: Hudson Hotels Corporation