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Crestline Hotels & Resorts Named by Owner
Highland Hospitality Corporation to Manage
the 410 room Wyndham Palm Springs

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MCLEAN, Va., and PALM SPRINGS, California., July 18, 2005 - Crestline Hotels & Resorts, Inc. today announced its selection as the new management company for the Wyndham Palm Springs. The upscale hotel and conference facility is located in the heart of downtown, directly linked to the recently expanded Palm Springs Convention Center, and offers 410 well-appointed guest rooms and 30,000 square feet of conference space. The hotel was recently purchased by Highland Hospitality Corporation (NYSE: HIH - News), a Virginia based, self-advised lodging real estate investment trust (REIT) focused on hotel investments primarily in the US.

"The Wyndham Palm Springs is an ideally situated hotel for Crestline's experienced management team to expand its services to California," said Dave Durbin, President & CEO of Crestline Hotels & Resorts. "As a leading hotel management company, we have been awaiting an opportunity to add a California property to our portfolio. The Wyndham Palm Springs enjoys an excellent reputation with group, business and leisure travelers. It has a prime location, upscale amenities, and comprehensive conference facilities, making it a perfect fit for our management expertise. We look forward to working with the hotel's general manager, Duane Rohrbaugh, and the sales team to continue to build on the hotel's tradition of excellent service and outstanding community involvement," added Durbin.

The Wyndham Palm Springs
Located in beautiful Palm Springs, the hotel is just three blocks from fashionable Palm Canyon Drive and is directly linked to the newly renovated and expanded Palm Springs Convention Center. The Wyndham Palm Springs offers 410 spacious guest rooms, including 158 suites, many with panoramic views of the majestic San Jacinto Mountains. Guest rooms include the comfort and convenience of thoughtful business amenities such as an oversized desk and Internet access, as well as dual phone lines and coffeemakers in each room.

For business meetings and social events, the hotel has 16 meeting rooms comprising 30,000 square feet of elegant banquet and conference space. Contemporary dining with a Southwestern influence can be enjoyed in the hotel's Cafe Terraza which offers indoor/outdoor seating for breakfast, lunch and dinner. For casual drinks and entertainment, The Calabrese Lounge has refreshments and light food. There is also the Oasis poolside lounge which features a misting system to keep guests cool, and big screen TV's on the terrace overlooking the pool.

Nearby recreational amenities include such popular Palm Springs' favorites as: spa services, golf, tennis and world-class shopping, as well as skiing, hiking and trail riding. The Wyndham Palm Springs offers complimentary transportation to the Palm Springs Airport which is only 1.5 miles from the hotel. For more information or reservations, visit http://www.wyndham.com or call: 760-322-6000.

Crestline Hotels & Resorts, Inc. is one of the nation's largest independent hospitality management companies. Founded in 2000, the Company presently manages 37 hotels, resorts and conference and convention centers with more than 8,000 rooms in 12 states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well regarded brands as Marriott, Hilton, Renaissance, Sheraton, Crowne Plaza and Radisson. Additional information about the hotel management company is available at the company's web site: http://www.crestlinehotels.com.

Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments primarily in the United States. The Company owns 20 hotel properties with an aggregate of 5,885 rooms in eleven states and Mexico. Additional information can be found on the Company's website at http://www.highlandhospitality.com.

Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "estimates" or "anticipates" or the negative thereof or comparable terminology.

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Contact:

Crestline Hotels & Resorts, Inc.
http://www.crestlinehotels.com

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Also See: Highland Hospitality Corporation Acquiring the 410-room Wyndham Palm Springs for $57.0 million, Approximately $139,000 per Room / June 2005
Duane Rohrbaugh Heads Up New Management Team at Wyndham Palm Springs / Jan 2002


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