MeriStar Investment Partners Completes Acquisition of Hilton Newark/Fremont, CA

Seventh Hotel Acquired by Investment Partnership

Company Press Release

December 3, 1999
WASHINGTON, DC -- MeriStar Investment Partners, a $400 million investment partnership, yesterday announced that it has completed the acquisition of the 315-room Hilton Newark/Fremont Hotel in Newark, Calif. The property is the seventh hotel to be acquired by the partnership. The partnership plans to invest $6 million in the first year to renovate the property.

Participants in the investment partnership are MeriStar Hospitality Corporation (NYSE: MHX), MeriStar Hotels & Resorts, Inc. (NYSE: MMH), and Oak Hill Capital Partners, L.P., a private equity investment group.

``The Hilton Newark/Fremont, with its substantial meeting space and premier location in northern Silicon Valley, is a strong addition to the partnership's holdings,'' said Paul Whetsell, chairman and CEO of both MeriStar Hospitality and MeriStar Hotels & Resorts. ``The $6.0 million renovation program and the implementation of our management and marketing systems will position the hotel to assume a market leadership role.''

Located at 39900 Balentine Drive in Newark, the hotel consists of a seven-story tower and two- and three-story buildings surrounding a pool and garden courtyards. The Hilton Newark/Fremont features 11,000 square feet of meeting space, a fitness center, skin care salon and full-service restaurant and lobby lounge.

MeriStar Hotels & Resorts manages the hotel and will oversee the renovation program. All guestrooms will be refurbished and updated; the restaurant and lounge will be renovated to give them a more casual, yet upscale, ambiance.

MeriStar Investment Partners owns seven hotels with 2,127 rooms.

Oak Hill Capital Partners, L.P. is a $1.5 billion private equity partnership sponsored by Robert M. Bass and his team of investment professionals. Oak Hill Capital Partners Management, Inc. manages the partnership.

Washington, D.C.-based MeriStar Hospitality Corporation owns 116 principally upscale, full-service hotels in major market and resort locations with 29,348 rooms in 27 states, the District of Columbia and Canada.

MeriStar Hotels & Resorts leases or manages 221 hotels with 46,242 rooms in 35 states, the District of Columbia, Canada and the U.S. Virgin Islands.

For more information about MeriStar Hospitality Corporation and MeriStar Hotels & Resorts, Inc., visit the companies' web site: 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 Hotels & Resorts' and MeriStar Hospitality Corporation's filings with the Securities and Exchange Commission.

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