 |
|
|
|
|
|
John Emery Named President/COO of Both MeriStar Hospitality and MeriStar Hotels & Resorts |
| WASHINGTON - Sept. 24, 2001-- MeriStar Hospitality
Corporation (NYSE: MHX), the nation's third largest hotel REIT, and its
sister company, MeriStar Hotels & Resorts (NYSE: MMH), today announced
several management changes following the cancellation of a previously announced
merger between MeriStar Hospitality and FelCor Lodging Trust (NYSE: FCH).
"While we are disappointed that the merger plans were terminated due to the recent tragic events and their resultant adverse impact on the economy and financial markets, the merger was not a matter of necessity for MeriStar or FelCor" said Paul W. Whetsell, who will remain chairman and CEO of both MeriStar Hospitality and MeriStar Hotels & Resorts. "We are in a difficult operating environment, however, both MeriStar Hospitality and MeriStar Hotels & Resorts have well seasoned, strong management teams who have the expertise to weather tough economic conditions. "We believe the close relationship between the REIT and operating company will be even more beneficial in today's economic conditions," he said. "Close alignment between ownership and management is more important than ever. We are confident that both companies will respond positively to the challenges before us and add value to our shareholders' investment." Whetsell announced that John Emery, currently chief operating officer of the REIT and chief investment officer of the management company, had been named president and chief operating officer of both companies. He will be responsible for the companies' day-to-day operations. "John has been with the company for six years and has played a key role in our growth and has proven management and leadership skills," Whetsell said. Bruce G. Wiles' role has been expanded as well. He will remain chief investment officer of MeriStar Hospitality and take on the additional responsibilities as chief investment officer of MeriStar Hotels & Resorts. James A. Calder will remain chief financial officer of MeriStar Hotels & Resorts and has been named chief accounting officer of both companies. "These are indeed challenging times," Whetsell said. "The nation is just beginning to recover from the tragic events of September 11. We anticipate that it will take a while for business travel to reach previous levels but believe that the country, its people and the underlying economy are all strong. "We are fortunate that our assets are in excellent physical condition, which positions them to be highly competitive in their respective markets. Our operations group is aggressively seeking all available business and leisure travel and readjusting cost structures to reflect business conditions," he added. MeriStar Hotels & Resorts operates 276 hospitality properties with more than 58,000 rooms in 40 states, the District of Columbia, Canada, and Puerto Rico, including 54 properties managed by Flagstone Hospitality Management, a subsidiary of MeriStar Hotels & Resorts. Its BridgeStreet Corporate Housing Worldwide subsidiary is one of the world's largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the United States, Canada, the United Kingdom, Paris, France and 39 additional countries through its network partners. Through its Doral Golf Division, MeriStar manages 11 golf courses. Washington, D.C.-based MeriStar Hospitality Corporation owns 112 principally upscale, full-service hotels in major market and resort locations with 28,617 rooms in 27 states, the District of Columbia and Canada. MeriStar Hospitality owns hotels under such internationally known brands as Hilton(R), Sheraton, Marriott(R), Westin, Radisson(R) and Doubletree. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about MeriStar Hospitality Corporation and MeriStar Hotels & Resorts, including those statements regarding future operating results and the timing and composition of revenues, among others.
|
| MeriStar Hospitality Corporation
Bruce Riggins, 202/295-2276 www.meristar.com |