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MeriStar Hospitality Completes Sale of
Five Hotels for Aggregate $29.5 Million
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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:

  • Sheraton Dallas Brookhollow Dallas, Texas 348 rooms
  • Ramada Plaza Hotel Shelton, Conn. 155 rooms
  • Hilton Midland and Towers Midland, Texas 249 rooms
  • Crowne Plaza North Phoenix at Metrocenter Phoenix, Ariz. 250 rooms
  • Holiday Inn DFW Airport West Bedford, Texas 243 rooms
Total  1,245 rooms

“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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Contact:
Bruce Riggins
VP, Strategic Planning & Analysis
(703) 812-7223
www.meristar.com
Also See MeriStar to Spend Approximately $225 million On Renovations At Its Core 73 Hotel Properties Over the Next Two Years; Taking Advantage of Size and Scale to Accelerate Renovations and Reduce Costs / February 2004
MeriStar, Which Owns 89 Hotels, Reports Full-Year 2003 Net Loss of $388 million Compared with a Loss of $161 million a Year Earlier; Full-year RevPAR Declines 3% / Hotel Operating Statistics / February 2004
MeriStar Hospitality Completes Sale of Four Hotels for Aggregate $33.9 Million / January 2004


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