SPOKANE, Wash., July 29, 2003 - WestCoast Hospitality Corporation (NYSE: WEH) and American Capital Group, LLC announced today that the two companies have decided that WestCoast Hospitality Corporation's subsidiary, WestCoast Hospitality Limited Partnership, should proceed with the ownership of and operating responsibilities for the Kalispell Center Mall and the adjoining WestCoast Kalispell Hotel.  The parties have jointly terminated the previously announced purchase agreement they executed in October

WestCoast Kalispell Hotel 20 North Main Kalispell, Montana

"Both WestCoast and American Capital have a lot of faith in and support for the Kalispell community and believe that the success of the Kalispell Center Mall is vital to the health of Kalispell's downtown community," said Arthur Coffey, President and CEO of WestCoast Hospitality Corporation.  Jim Taylor, Chairman of American Capital Group, LLC, added, "There has been strong community support to redevelop the mall and American Capital and WestCoast both believe strongly in the importance of its near term upgrade and expansion."

WestCoast (then Goodale & Barbieri Companies) developed the project in 1986 and subsequently was awarded the Certificate of National Merit from the Department of Housing and Urban Development for its work in bringing the project to fruition with the quality and value that it added to the community.

WestCoast intends to use its background in commercial and retail development, its experience in Montana operations, and elements of the plans developed by American Capital to revitalize the existing mall and attract new tenants.

WestCoast Hospitality Corporation also owns through its subsidiaries the Red Lion Inn and the WestCoast Outlaw Hotel in Kalispell and has operations in Missoula, Helena and Butte, Montana as well.  "WestCoast and American Capital have concluded that it is in our mutual interests and in the interests of the Kalispell community that WestCoast proceed with the ownership of the Kalispell Center Mall and pursue its expansion," said Arthur Coffey, President and CEO of WestCoast Hospitality Corporation.  "We have been in contact with potential expansion tenants and are very optimistic about our opportunities to solidify the Kalispell Center's reputation as the destination mall for Western Montana."  Jim Taylor, Chairman of American Capital Group, LLC, said, "WestCoast is uniquely suited to build on the value that it has created over the years in the mall and the adjoining WestCoast Kalispell Center Hotel."

"WestCoast has great respect for American Capital and has been very thankful for American Capital's interest in and support for the Kalispell Center and for the Kalispell community.  I think both parties desire to maintain the close relationship we have developed over the past year in order to take advantage of any opportunities that may be of mutual interest in the future," said Arthur Coffey, President and CEO of WestCoast Hospitality Corporation.

WestCoast Hospitality Corporation owns, manages, franchises and develops hotels providing care, comfort and value.  Red Lion Hotels and WestCoast Hotels focus on serving business, convention and leisure travelers in first, second and third tier markets.  WestCoast provides entertainment services through TicketsWest, including event ticketing for venues in the United States and Canada, and aggregates content for travel and entertainment that is sold in real time at its http://www.ticketswest.com website.  TicketsWest also includes WestCoast Entertainment, a Broadway and special event presenting company.  G&B Real Estate Services, the real estate division of WestCoast Hospitality Corporation, owns and manages commercial and residential properties.

This press release contains forward-looking statements within the meaning of federal securities law, including statements concerning plans, objectives, goals, strategies, projections of future events or performance and underlying assumptions (many of which are based, in turn upon further assumptions).