BUCKHEAD AMERICA BOARD AUTHORIZES SHARE REPURCHASE PROGRAM; Company Completes Sale/Leaseback of Orlando, Fla., HotelCompany

Press Release: Buckhead America Corporation

July 21, 1999
ATLANTA, GA-- Buckhead America Corporation (Nasdaq: BUCK), the hospitality services company, said its board of directors authorized the repurchase of up to 100,000 of the company's approximately 2 million outstanding common shares from time to time on the open market.

The company also said it completed the sale and leaseback of its 150-room, Orlando, Fla., Country Hearth Inn. As previously announced, a partnership in which Buckhead America holds a 59 percent interest agreed to sell the hotel and related property for $13.5 million to make way for a planned expansion of the nearby Orange County Convention Center.

Buckhead America said its total cash proceeds from the sale would approximate $5.7 million, or $2.95 a share, resulting in a pretax gain of approximately $4 million, or $2.08 a share. It added that the leaseback and continued operation of the property as a Country Hearth Inn until 2001 would generate additional cash flow of approximately $2 million to the partnership.

The company said proceeds from the Orlando transaction would be used for share repurchases, for the continued expansion of the Country Hearth Inn lodging system and for other corporate purposes.

"We have been disappointed that stock market trading has significantly under-valued Buckhead America's rapidly growing hotel franchising, development and management activities with a current book value of approximately $10 a share," said Douglas C. Collins, chairman, president and chief executive officer. "The share repurchase program is intended to increase shareholder value."

Buckhead America is a diversified hospitality services company whose holdings include the 46-property Country Hearth Inn lodging system and 30 additional hotels owned, leased and/or managed.

Country Hearth Inns are mid-priced hotels that serve both the business traveler and vacationer. The hotels combine the homey atmosphere of a bed- and-breakfast, including an expanded complimentary breakfast, manager's reception and free local telephone calls, with the convenience of a modern hotel. Buckhead America is expanding the chain nationally and currently has 24 hotels in various stages of development.

Buckhead America common shares trade on the NASDAQ National Market System under the symbol "BUCK."