| WASHINGTON - Dec. 30, 2002 -- MeriStar
Hospitality Corporation (NYSE: MHX), the nation's third largest hotel real
estate investment trust (REIT), today announced that the company will not
pay a common share dividend for the 2002 fourth quarter.
Based on its forecasted 2002 taxable income, the company is not required
to pay a dividend to maintain its REIT status. For each of the previous
four quarters, the company has paid a $0.01 per share dividend.
"We will continue to evaluate our dividend on a quarterly basis, as
we have in the past," said Paul Whetsell, chairman and chief executive
officer. "We will monitor operating levels and will reinstate the dividend
when our operations and taxable income have improved to a level that permits
us to do so."
Whetsell added, "We expect our fourth-quarter FFO per share to approximate
the lower end of our previous guidance range. Stronger than anticipated
food and beverage revenue has helped offset somewhat softer than expected
RevPAR results. RevPAR for the fourth quarter is now projected to be up
four |
| Dec. 31, 2002 - MeriStar today announced that it
had completed the sale of the 317-room Holiday Inn Select in San Diego,
Calif., for an undisclosed amount. Sale proceeds will be retained to maximize
MeriStar's financial flexibility and liquidity.
"We continue to selectively prune non-core assets from our portfolio
of hotels," said Paul W. Whetsell, chairman and chief executive officer.
"The sale proceeds will further enhance our financial structure. This is
our fifth such sale this year."
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Holiday Inn Select San Diego
595 Hotel Circle South
San Diego, California
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percent to five percent over fourth-quarter 2001." The company will provide
earnings and dividend guidance for 2003 during its fourth-quarter conference
call.
Washington, D.C.-based MeriStar Hospitality Corporation owns 108 principally
upscale, full-service hotels in major markets and resort locations with
27,898 rooms in 27 states, the District of Columbia and Canada. The company
owns hotels under such internationally known brands as Hilton, Sheraton,
Marriott, Westin, Radisson and Doubletree.
This press release contains forward-looking statements about MeriStar
Hospitality Corporation, including those statements regarding future operating
results and the timing and composition of revenues, among others. |
