�While it is too early to fully estimate the extent of the damage, our initial assessment suggests that there was not a significant amount of structural damage to the facilities, but the landscaping damage was extensive on Captiva Island,� said Paul W. Whetsell, MeriStar�s chairman and chief executive officer.  �We are working with our insurance carriers and proceeding with reopening the properties as soon as possible.  

�The hotels� staff handled the evacuation of all guests and associates smoothly, and we are thankful that no one was injured at our properties,� Whetsell said.  �I visited the area over the weekend, and given the extensive property damage in close-by communities, we were indeed very fortunate.�

Company officials said all of the properties were insured, with both property and business interruption coverage in place.  The company said it does not expect the hurricane to have a material impact on the company�s third-quarter and full-year 2004 earnings, and accordingly it has not adjusted its earnings guidance for the third quarter or the full year.

Arlington, Va.-based MeriStar Hospitality Corporation owns 77 principally upscale, full-service hotels in major markets and resort locations with 21,619 rooms in 22 states, and the District of Columbia.  

This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results, the timing and composition of revenues, expected levels of capital expenditures, and expected proceeds from asset sales, among others.