MERISTAR HOTELS & RESORTS SIGNS CONTRACTS TO MANAGE TWO FLORIDA RESORT PROPERTIES

Press Release: MeriStar Hotels & Resorts

July 26, 1999
WASHINGTON, D.C.--MeriStar Hotels & Resorts, Inc. (NYSE: MMH), the nation's largest independent hotel management company, has announced that it has signed agreements to manage the Sovereign Hotel in Miami Beach, Fla., and the to-be-built Fala Bella Resort and Golf Club of Naples.

"These two upscale resort properties mark our entry into the Miami and Naples markets and represent significant additions to our growing portfolio of resorts and golf courses," said Paul W. Whetsell, MeriStar chairman and chief executive officer. "They also offer excellent cross-selling opportunities. Our size and flexibility to manage both branded and independent hotels continues to give us a competitive advantage in obtaining contracts from both existing and new owners."

The 107-room Sovereign Hotel, owned by Bluewater LP, an affiliate of Talon Group, Inc., is completing a comprehensive $5 million renovation and is expected to reopen in September. The property is located just north of the South Beach Art Deco District and adjacent to the Fountainbleu Hilton Hotel, at Collins Avenue and 44th Street.

"We have been very impressed with MeriStar's operating skills at our Sapphire Beach Resort in St. Thomas, U.S.V.I. and are pleased to extend the relationship by bringing their management depth and resources to the Sovereign,'' said Gilbert J. de Botton, managing director of the Talon Group.

The Sovereign is situated on 75 feet of prime ocean frontage and will feature a new 100-seat restaurant, lounge, outdoor pool, poolside bar, three meeting rooms, exercise room, business center and a landscaped courtyard. All rooms and public space are being completely refurbished and balconies are being added to all beachside guestrooms.

The Fala Bella Resort and Golf Club of Naples, owned by a partnership between The Ronto Group and Westbrook Partners L.L.C, is being developed as a condominium resort with 200 two- and three-bedroom units in a mandatory hotel rental pool. Phase one consists of 44 three-bedroom units and will open in November with the remaining units scheduled to open over the next two years. The resort is part of The Lely Resort Community, which includes three upscale plantation communities and golf courses designed by W.M. Graves, Inc., Robert Trent Jones, Sr., and Lee Trevino.

The Fala Bella Resort and Golf Club will feature a 5,000-square-foot practice green, separate swimming pools for adults and children, tanning beach, volleyball court and two tennis courts. Guests also will have access to a fully equipped gym, men's and women's saunas, a spa and massage facility and a sports bar and grill.

"These two properties showcase the breadth of our resort management capabilities," said David McCaslin, MeriStar Hotels & Resorts president. "The Sovereign Hotel is in the heart of the action in Miami and offers both resort and meeting facilities. The Fala Bella Resort and Golf Club is a condominium pool-based operation that includes a wide variety of resort amenities, from spa to golf."

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. For more information about MeriStar Hotels & Resorts, Inc., visit the company's 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' filings with the Securities and Exchange Commission.

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MeriStar
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or
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(202) 295-2252
or
Jerry Daly or Carol McCune, media
Daly Gray Public Relations
(609) 383-1414