|ATLANTA - June 2, 1999--Suburban Lodges of America, Inc.
(Nasdaq: SLAM) announced today that it had completed its previously announced
acquisition of the assets of GuestHouse International LLC, a franchisor
of lodging facilities under the names of GuestHouse International Inns,
Hotels and Suites.
GuestHouse International currently has 45 independently owned and operated
franchise hotels in 17 states with additional hotel locations under development.
The properties represent a diverse group of well-maintained, newly constructed,
or recently renovated hotels and inns. GuestHouse International properties
adhere to high quality standards for cleanliness, safety and service, and
include many two and three diamond AAA rated hotels.
Lodges of America, Inc. also develops and franchises Suburban Lodge hotels,
the largest economy extended-stay hotel brand in the nation, featuring
weekly rates, at most hotels, starting at under $200 per week. Suburban
Lodge hotels are designed to appeal to value conscious guests who wish
to obtain clean, comfortable and affordable accommodations when traveling
for periods of a week or more. The hotels are perfect for extended stay
guests during relocation, temporary work assignments, and business or leisure
travel. Each guestroom includes a fully equipped kitchen and all of the
amenities necessary for a comfortable extended stay.
Commenting on the acquisition, David E. Krischer, Suburban Lodges' Chairman
and CEO said: "I am extremely pleased with this strategic acquisition which
more than doubles our franchised hotel locations to a total of eighty-eight.
Including Company-owned hotels, a total of 145 hotels now operate under
one of the Company's brands. The combination of the nightly-stay GuestHouse
International brand with our very successful Suburban Lodge extended-stay
concept creates a strong portfolio to support our increasing emphasis on
franchising opportunities. We look forward to the growth these opportunities
The statements in this release that relate to future plans, expectations,
events, performance and the like are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1934. Actual
results or events could differ materially from those described in the forward-looking
statements due to a variety of factors, including economic conditions,
development efficiencies, zoning delays, adverse weather conditions, occupancy
and performance, and other risks described in the Company's filings with
the Securities and Exchange Commission.