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Dallas Based Harrell Hospitality Group Inc Plans Marriott
Courtyard Development in the United Kingdom

March 25, 2004 - Harrell Hotels (EUROPE) Ltd has signed a letter of intent with Marriott Hotels International BV to participate in the development and management of the Courtyard by Marriott brand in the United Kingdom.

This signing marks the planned arrival of Harrell in the United Kingdom, where the company is currently undertaking due diligence on a number of sites for the construction of new four-star Courtyard hotels in key cities.

Under the letter of intent HHE will play the lead role in identifying potential sites and joint venture partners to support the roll out of the Courtyard brand. HHE will participate in both the development and management of the Courtyard hotels.

Harrell Hotels (EUROPE) Ltd (HHE) is a London-based subsidiary of Harrell Hospitality Group Inc (HHG), the Dallas-based hotel management group that is approved by US franchisors including Marriott, Hilton, Sheraton, InterContinental, and Ramada, among others. Harrell employs more than 400 staff in the US, and operates the award-winning Rancho Santa Barbara Marriott in Santa Barbara, California. HHG is quoted on the NASDAQ OTC Bulletin Board (symbol HLTLA).

Paul Harris, Director of Business Development for Harrell Hotels (EUROPE) said: "We are very pleased to be extending our relationship with Marriott into the UK and plan to capitalise on the obvious market potential of the Courtyard brand."

Mr Harris added: "We view Courtyard as a fantastic upper moderate tier product, and have no doubt that the dynamics which propelled Courtyard to its preferred status in the US also exist in the UK".

Courtyard by Marriott is Marriott's largest lodging brand, with 600 hotels worldwide. In the US, it has become established as the market leader in the upper moderate tier market. The Courtyard by Marriott lodging portfolio in United Kingdom currently includes 11 properties.

Marriott Hotels International BV is a subsidiary of Marriott International.

Paul Harris
Harrell Hotels (EUROPE)

Also See: Harrell Hospitality Group has the Downtown Ft. Worth Ramada Plaza Hotel Under Contract; Planning $15 million Renovation / June 2002
Harrell Hospitality Group, Inc Assumes Management of the Columbia Lakes Resort and Conference Center, in West Columbia, Texas / Nov 2001
Harrell Hospitality Group, Inc and Commercial Development Group Abandon Development of a Hilton Garden Inn in Rochester, New York / Nov 2001

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