Under terms of the agreement, Crestline Hotels & Resorts has the right of first refusal to manage and co-invest in STDC-developed hotels.  Concurrently, STDC has the right of first refusal to provide development and major renovation services for certain Crestline Hotels & Resorts-managed hotels.

�This is an important first step for our newly formed hotel management subsidiary,� said Bruce D. Wardinski, Chairman, President and Chief Executive Officer of Crestline Capital.  �We gain exclusive access to premium urban projects and add in-depth renovation expertise and capabilities to our management operations, which increases the range of services we offer.  Aligning ourselves with quality, experienced developers like STDC is an important growth strategy for Crestline Hotels & Resorts, and we are aggressively seeking arrangements with other developers, owners and investors.�

�Access to capital and good management are the cornerstones of the long-term success of any new development,� said Richard M. Stormont, Chairman and Director of Stormont Trice Development.  �This alliance gives us an added advantage in creating new hotel projects.�

�Strategic alliances create a pipeline of long-term management contracts with attractive fee structures,� said Donald R. Trice, President and Chief Executive Officer of Crestline Hotels & Resorts.  �Crestline Capital already has development projects under way in Baltimore and Portsmouth, Va., with STDC, and we are negotiating in several markets to undertake more.�

Stormont Trice Development, founded in 1984, has developed more than 22 projects in 10 cities, valued at more than $500 million.  The company has expertise in hotels, resorts and conference centers and with joint ventures and public-private partnerships.

Crestline Capital is one of the nation�s 20 largest hotel management companies through its wholly-owned subsidiary, Crestline Hotels & Resorts. Crestline Capital is also the nation�s largest independent hotel leasing company, majority owner of an upscale extended-stay hotel portfolio, and owner of one of the nation�s premier senior living community portfolios.  

Crestline Hotels & Resorts manages and leases 27 hotels, resorts and conference and convention centers with nearly 5,500 rooms in nine states and the District of Columbia.  Crestline Hotels & Resorts  manages properties independently and under such well regarded brands as Marriott, Hilton, Renaissance, Crowne Plaza, Holiday Inn, Courtyard by Marriott and Residence Inn. 

Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995.