DALLAS (January 5, 2005) - Pegasus Solutions, Inc. (Nasdaq: PEGS) was honored by GrandStay Hospitality, LLC, as the hotel company’s 2004 “Vendor of the Year.”  Pegasus, which provides electronic distribution and voice reservation services to the growing U.S.-based hotel group, accepted the award at GrandStay’s recent annual conference for general managers and franchisees.  Dallas-based Pegasus Solutions is a global leader in providing technology and services to hotels and travel distributors.

GrandStay Hospitality is a small but fast-growing hotel company.  Featuring mid-scale extended stay properties, GrandStay is franchised in all 50 states.  The company operates five hotels in Minnesota and Wisconsin, with projects under development in California, Iowa, and Minnesota.  GrandStay’s headquarters are located in St. Augusta, Minn.

GrandStay increased its visibility among travel agents and Web-surfing travelers through Pegasus’ world-class electronic distribution architecture, reaching Internet channels and the four major global distribution systems (GDSs).  After implementation of the Unirez by Pegasus hotel representation service, GrandStay more than doubled quarterly revenues from electronic bookings over the course of 2004.  Travel agents use the well-known UZ GDS code to book any of the nearly 4,000 hotels participating in the Unirez by Pegasus service.

“At almost every level, Pegasus has outperformed our expectations,” said Rodney Lindquist, chief executive officer of GrandStay Hospitality.  “With our plans to increase the number of GrandStay hotels in as many as 11 states over the next two years, Pegasus’ ability to almost instantly add properties to multiple distribution channels is a critical component of our growth strategy.  We’re looking forward to an even more successful year in 2005.”

GrandStay elected to add Pegasus’ private label voice reservation services in September 2004.  Preliminary fourth quarter results indicate that GrandStay’s revenues from voice bookings will increase by nearly 20 percent over third quarter figures. 

“GrandStay Hospitality is an excellent example of a small hotel group exploring and implementing Pegasus services to increase visibility and revenues,” said Bob Boles, chief operating officer of Pegasus Solutions.  “Small to medium-sized hotel groups are in the best position to benefit from the array of integrated distribution, financial and reservation services only Pegasus can offer.  We’re honored to receive this award from GrandStay, and we look forward to helping them execute their expansion plans in 2005 and beyond.”

Company Information

GrandStay Hospitality LLC combines all the comforts of home with the services of a grand hotel, specializing in taking care of the needs of guests requiring extended-stay accommodations.  GrandStay has properties today in Mankato and St. Cloud, Minnesota, and Eau Claire, Lacrosse, and Madison, Wisconsin.  GrandStay has properties under development in Ames, Iowa, Lancaster and Oxnard, California and in Apple Valley, Minnesota.  For more information, visit the GrandStay Hospitality Web site at www.grandstay.net .

 About Pegasus

Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) is a global leader in providing technology and services to hotels and travel distributors.   Founded in 1989, Pegasus’ customers include a majority of the world’s travel agencies and more than 50,000 hotel properties around the globe.  Pegasus’ services include central reservation systems, electronic distribution services, commission processing and payment services, property management systems, and marketing representation services.  The company’s representation services, including Utell by Pegasusä and Unirez by Pegasusä, are used by nearly 8,000 member hotels in 140 countries, making Pegasus the hotel industry’s largest third-party marketing and reservations provider.  Pegasus has 17 offices in 12 countries, including regional hubs in London, Scottsdale and Singapore.  For more information, please visit www.pegs.com.

Michael Brophy
Public Relations Manager
Pegasus Solutions, Inc.
Campbell Centre I
8350 North Central Expressway
Suite 1900
Dallas, Texas 75206
Phone:  214-234-4400
michael.brophy@pegs.com
www.pegs.com