• $1 billion equity investment from an investor group
• Conversion to a C corporation, terminating the Company's status as a REIT
• Changing the Company's name to Wyndham International

The investor group's purchase involves $1 billion of 9.75% convertible preferred stock, callable after six years, with an initial conversion price of $8.59 per share. The investor group includes affiliates of Thomas H. Lee Equity Fund IV, L.P., Apollo Investment Fund IV, L.P., Apollo Real Estate Investment Fund III, L.P., Beacon Capital Partners, L.P., and other investors.

Within the next six months, Wyndham intends to conduct a rights offering in which common shareholders can purchase up to $300 million of convertible preferred stock with the same economic terms as investor group, which could reduce the investor group's investment to
$700 million. As a result, the investor group will initially own an approximate 41% interest in the Company, reducing to 29%, assuming full subscription to the rights offering by non-investor group shareholders.

As previously announced, the $1 billion equity investment is part of an overall financial restructuring plan in conjunction with a new $1.8 billion senior bank facility from Chase Manhattan Bank and $650 million of senior secured loans from Chase Manhattan Bank and The Bear Stearns Companies Inc. These proceeds will be used to replace the Company's existing bank facility, to settle its forward equity obligations and to provide additional growth and working capital.

James D. Carreker, President and Chief Executive Officer of Wyndham, noted that in addition to the financial restructuring, Wyndham has accomplished the following:

• Hired a new Chief Financial Officer, a new Chief Investment Officer and re-organized management
• Divested $72 million in non-strategic assets and announced plans to sell 11 hotels situated in the United Kingdom
• Opened or will open new Wyndham Hotels in Chicago, Atlanta and Boston
• Signed four new management contracts for hotel properties
• Received a top three rating for Wyndham by J. D. Powers Associates in guest satisfaction among upscale hotel chains

Shares of Patriot American Hospitality, Inc. will no longer trade on the NYSE under the symbol PAH.

About Wyndham International

Wyndham International, Inc. owns, leases, manages and franchises primarily upscale and luxury hotel and resort properties and provides management services for third-party owned hotels and resorts. Wyndham's three operating divisions, Grand Bay Hotels Resorts, the Wyndham Hotel Group, and PAH Management Services, represent a combined portfolio of 311 hotels and resorts with a total of more than 74,000 rooms in 38 states as well as Canada, the Caribbean and Europe.

Cautionary Statement

This press release contains forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include competition for guests from other hotels, dependence upon business and commercial travelers and tourism, the seasonality of the hotel industry, and the availability of equity or debt financing at terms and conditions favorable to the Companies.