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Hotel Corps. Raised $1.2 Billion in Stock 0fferings During First Half of '97, Finds Coopers & Lybrand Lodging Research Network

Big Drop From $2.0 Billion Raised in Year-Earlier Period, http://www.lodgingresearch.com Says

NEW YORK, July 10, 1997 - U.S. lodging corporations -- as distinguished from lodging real estate investment trusts, or REITs -- raised $1.2 billion in public stock offerings during the first half of 1997, down significantly from the $2 billion they raised during the same period last year, according to the Lodging Research Network (http://www.lodgingresearch.com), the comprehensive, Internet-based resource for lodging industry data and information from Coopers & Lybrand L.L.P.

``The drop in equity funds raised by lodging corporations -- as opposed to REITs -- is more a reflection of the tremendous activity of last year's first half than any substantial change in the markets,'' said Bjorn Hanson, Ph.D., New York-based chairman of the Coopers & Lybrand lodging practice, creator of the Lodging Research Network . ``It also reflects a slowing in the number of initial public offerings, as many of the lodging companies considering 'going public' did so in 1994 through 1996.''

In contrast, hotel real estate investment trusts (REITs) increased their equity capital raised in the first half of 1997 versus 1996, according to the Lodging Research Network. Hotel REITs raised approximately $1 billion in public stock offerings in the first half of 1997 -- up from the $732 million lodging REITs raised during the first half of 1996, www.lodgingresearch.com reports.

For the first six months of 1997 overall, hotel corporations and hotel REITs raised nearly comparable levels of capital: approximately $1.2 billion for lodging corporations and approximately $1 billion for lodging REITs, Hanson added.

On a quarterly basis, lodging corporations and lodging REITs both raised less equity capital during the second quarter of 1997 compared to the year-earlier period, the Lodging Research Network reports. Lodging corporations raised $300 million in the equity markets during the second quarter, well below the $1.5 billion such corporations raised in the year-earlier period -- and one-third the level of $940 million raised during the first quarter of this year. Lodging REITs raised approximately $534 million in second-quarter equity offerings, down from the approximately $732 million raised in the year-ago period -- but more than the $488.5 million generated in the first quarter of 1997.

``Even these levels of equity capital raised are impressive -- and just a few years ago could not have been imagined,'' remarked Hanson.

Three hotel corporations and three hotel REITs completed equity offerings during the second quarter, www.lodgingresearch.com says. The three lodging corporations were Servico, Inc., which generated proceeds of approximately $145 million with its secondary offering; Bristol Hotel Company, which generated proceeds of approximately $99 million with a secondary offering; and Silverleaf Resorts, which generated proceeds of approximately $56 million with its initial public offering. The three hotel REITs are FelCor Suite Hotels, Inc., which generated proceeds of approximately $374 million with its secondary offering; Equity Inns, Inc., which generated proceeds of approximately $107 million with a secondary offering; and Sunstone Hotel Investors, Inc., which generated proceeds of approximately $54 million, also a secondary offering.

Coopers & Lybrand's Lodging Research Network makes available via the Internet Coopers & Lybrand's renowned econometric forecasts for the lodging industry, breaking lodging industry news, an exclusive database of lodging industry real estate acquisitions, financial data of publicly traded lodging companies (including SEC filings), new hotel construction data, lodging census data from Smith Travel Research as well as an extensive research library that includes U.S. economic and demographic statistics. For more information about the Lodging Research Network, call 1-888-576-6656.

One of the world's leading professional services firms, Coopers & Lybrand L.L.P. provides services for enterprises in a wide range of industries. The firm offers its clients the expertise of more than 16,000 professionals and staff in offices located in 100 U.S. cities and, through the global network of Coopers & Lybrand International, more than 74,000 people in 142 countries worldwide.

SOURCE: Coopers & Lybrand L.L.P.

Contact: Adam Brecht of Coopers & Lybrand, 212-259-5996, Adam.Brecht@us.coopers.com


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