May 15, 2000 - Hudson Hotels Corporation, Rochester, New York (�NASDAQ:HUDS) (the �Company� or �Hudson�) today announced its first quarter 2000 financial results.

The first quarter has traditionally been our seasonally weakest quarter of the year. The Company saw sales decline slightly to $11,848,178 from $11,915,795 in 1999. Comparable sales for Company owned hotels decreased to $9,434,351 from $9,773,221. Earnings before interest, taxes, depreciation and amortization (�EBITDA�) decreased to $3,009,511 from $3,798,149 in 1999. The first quarter loss in 2000 increased to $1,938,989 or $.30 per share from $833,893 or $.15 per share in 1999.

Commenting on these results, E. Anthony Wilson, Chairman and Chief Executive Officer of the Company stated �The Company has traditionally experienced losses during the first quarter and 2000 was particularly disappointing. Total revenue for the period for Company owned hotels decreased 3% and the occupancy and average daily room rates for Company owned hotels were 58.6% and $61.47 respectively and 62.6% and $59.97 respectively for the three months ended March 31, 1999. Increased losses during the quarter were primarily a result of an increase in professional fees, payroll, severance benefits, and a one-time charge related to the disposition of equipment. Restructuring efforts are now taking place in the hotels to increase gross operating margin and at the corporate level to reduce general and administrative expenses.

Further commenting Wilson stated, �We began our restructuring in the fourth quarter of 1999 and this effort still continues. The savings from those efforts will not fully impact our financial statement until later this year. At the same time, management fee revenue has grown 13% while our royalty revenue has grown at a 30% rate. We anticipate continued growth in these areas and when coupled with our restructuring effort we should see substantial EBITDA improvement by the third and fourth quarter of this year. Additionally, we continue to work with RHD Capital Ventures, LLC, an affiliate of a large shareholder of the Company to restructure the mezzanine loan, which was purchased by RHD on April 14, 2000.�