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Five Hotels for Aggregate $29.5 Million |
| ARLINGTON, Va., March 2, 2004�MeriStar Hospitality
Corporation (NYSE: MHX), one of the nation�s largest hotel real estate
investment trusts (REIT), today announced that it has completed the sale
of five hotels, in separate transactions, with a total of 1,245 rooms for
aggregate gross proceeds of $29.5 million. The sales are part of
a previously announced plan to dispose of non-core hotel properties and
reshape the company�s portfolio. Proceeds from the sales may be used
to repay senior debt, reinvest in the company�s core properties, or for
hotel acquisitions.
The five hotels are:
�The sales were completed in line with our expected pricing,� said Paul W. Whetsell, chairman and chief executive officer. �Since January 2003, the company has sold 23 hotels (4,657 rooms) at an average of $40,000 per room. The proceeds will allow us to further strengthen our balance sheet by repaying debt and reinvesting in our core properties in order to yield superior returns.� Arlington, Va.-based MeriStar Hospitality Corporation owns 84 principally upscale, full-service hotels in major markets and resort locations with 22,924 rooms in 23 states, the District of Columbia and Canada. This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results, the timing and composition of revenues and expected proceeds from asset sales, among others. |
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Bruce Riggins VP, Strategic Planning & Analysis (703) 812-7223 www.meristar.com |