For the second quarter, on a recurring basis, the Company posted earnings of $16.7 million, or $37 per diluted share vs. $11.5 million, or $.30 per diluted share during the same period last year, representing a 45-percent increase in net income and a 23-percent increase in earnings per share. RevPar (revenue per available room) growth for assets not under redevelopment and excluding assets targeted for sale was 6 percent. Occupancy, average daily rate and RevPar for the three months ending June 30, 1998, were 71.7 percent, $78.62 and $56.37, respectively. Statistics for the same period last year were 73.5 percent, $72.28 and $53.16, respectively. Recurring results are adjusted for approximately $25.7 million (net of tax) in extraordinary items related to the Company's early extinguishment of debt in the amount of $485 million, and $1.7 million (net of tax) in transaction expenses related to the spin-off and merger of the Company's real estate with FelCor Lodging Trust Incorporated (FelCor).

During the quarter, Bristol commenced several initiatives to establish the new operating company's organizational structure, its business plan and new growth vehicles. As the industry's largest independent operating company, BHR will broaden its focus to include both full-service and upscale limited-service hotels and will actively expand its brand relationships.

Primary focus was placed on the FelCor relationship including operational reporting, capital planning and construction decision procedures; new acquisition relationships also were put into place. In addition to the announced merger assets, Bristol added two new FelCor hotel acquisitions to its management portfolio: the 300-room Meadowlands Hilton in Secaucus, N.J., and the 187-room Four Points by Sheraton in Leominster, Mass.

Bristol also established a new working relationship with a second hotel REIT, Winston Hotels, Inc. (NYSE: WXH) ("Winston") which specializes in the upscale limited service segment of the industry. BHR entered into a lease and took over management of Winston's newly constructed Hampton Inn located in Las Vegas, Nevada. Bristol anticipates entering into additional leases with Winston in the near future.

Bristol has also begun to actively pursue management contracts with non-REIT hotel owners as it entered into agreements to manage three properties currently under development totaling 546 rooms for Austin, Texas, based developer, Landmark Organization Inc. (Landmark). These hotels include two Hilton Garden Inns and a 265-room upscale Hilton Hotel at the new Austin-Bergstrom International Airport, which is opening in mid-1999.

"We are particularly pleased with our accomplishments this quarter," noted J. Peter Kline, Chairman and Chief Executive Officer. "We continued, despite having in excess of 95,000 room nights out-of-service, to generate quarterly earnings per share increases of at least 20 percent for our shareholders; and based on dollars incurred, our redevelopment and rebranding program is 30 percent complete. Our deals with Winston and Landmark clearly demonstrate our independence and our ability to market our services to multiple owners using either a management or lease agreement and a variety of brands. Additionally, our early success is evidence of the ample opportunities that exist in the hotel management/leasing business."

Through June 30, the Company had incurred approximately $74 million in renovation/rebranding expenditures encompassing a total of 22 hotels and 7,053 rooms. Of this total, the following 10 hotels containing 3,175 rooms were completed:
 

BHR will continue overseeing the redevelopment process on behalf of the hotels' current owners, principally FelCor. The redevelopment/rebranding program is anticipated to be completed in early 2000. On July 27, the Company spun off all of its non-real estate holdings into a newly formed company, BHR, then transferred its real estate assets to FelCor on July 28. BHR trades under the symbol "BH" on the New York Stock Exchange.

BHR is one of the largest operators of hotels in North America and operates the largest number of Bass Hotels and Resorts' branded hotels in the world. BHR's more than 120 hotels include nearly 33,000 rooms in 27 states and Canada. They operate primarily in the mid-priced to upscale segments of the industry and are located in 19 of the top 25 lodging markets in the United States. BHR operates nearly 100 Crowne Plaza and Holiday Inn properties and is a leading franchisee in Bass' billion-and-a-half-dollar modernization program. By the year 2000, BHR will have overseen the investment of $400 million in the redevelopment of Crowne Plaza and Holiday Inn hotels.

With the exception of historical information, the matters discussed in this news release include "forward looking statements" within the meaning of the federal securities law and are qualified by cautionary statements contained herein and in Bristol's filings with the Securities and Exchange Commission.