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WASHINGTON - July 20, 1998 - CapStar Hotel Company (NYSE:
CHO), a leading hotel investment and management corporation, today announced
that it has added four new long-term, third party management contracts
to its portfolio.
The company will lease and manage three newly opened properties as part of its strategic alliance with Winston Hotels, Inc. (NYSE: WXH), a Raleigh, N.C.-based hotel real estate investment trust (REIT). The properties include the 126-suite Phoenix Homewood Suites in Arizona, the 112-suite Alpharetta Homewood Suites in Georgia, and the 112-suite Lake Mary Homewood Suites in Florida. In addition, CapStar will manage the 119-suite Somers Point Residence Inn in New Jersey for Memphis-based Equity Inns, Inc., a hotel REIT that focuses on the upscale, extended-stay, all-suite and premium limited-service segments. "Our total third-party management portfolio has grown to 91 properties since our August 1996 initial public offering," said Paul W. Whetsell, CapStar chairman and CEO. "To maximize their investment returns, hotel owners seek out management companies like CapStar that have a long-term, proven track record. As the nation's largest independent, multi-branded management company, we have the in-depth expertise and organization to operate hotels in virtually all hotel segments, from luxury to premium, limited-service brands." All three Homewood Suites are upscale, extended-stay properties located near corporate centers. All rooms are equipped with a full kitchen that includes microwave, refrigerator and coffee maker. The hotels feature outdoor pools, free local phone calls, no surcharge on long distance calls, complimentary continental breakfasts and evening hospitality hour. The Somers Point Residence Inn is an upscale extended-stay hotel that attracts both business and leisure travelers. The residential-design hotel features spacious suites, many with fireplaces and all with fully-equipped kitchens. Complimentary continental breakfast and weekday social hours are standard. Washington, D.C.-based CapStar Hotel Company owns and manages upscale, full-service hotels and resorts throughout the U.S. and Canada under such internationally known brands as Hilton, Sheraton, Marriott, Embassy Suites, Westin and Doubletree. Including 8 properties under contract, CapStar's hotel portfolio currently comprises 64 owned hotels with 16,738 rooms and 91 leased or managed hotels with 14,239 rooms for a total of 155 properties with 30,977 rooms. The company continues to actively seek acquisitions and management contracts in major markets and resort locations throughout North America. CapStar has announced an agreement to merge with American General Hospitality Corporation and spin off its hotel management operations, creating two new companies--MeriStar Hotels and Resorts, Inc. and MeriStar Hospitality Corporation. The merger is expected to be completed in July, pending regulatory and shareholders' approval. Certain statements in this press release look forward
in time and involve risks and uncertainties, including the ability to consummate
pending acquisitions and the merger between CapStar and American General
Hospitality Corporation, the ability to achieve the proposed benefits from
the merger, the ability to successfully implement acquisition and operating
strategies, the ability to manage rapid expansion, changes in economic
cycles, competition from other hospitality companies, changes in the applicable
laws and government regulations and other risk factors related to the merger.
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Also See:
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Capstar Closes on $150 Million Medallion Hotels Portfolio / Jan 1998 |
CapStar Hotel Company To Acquire Metro Hotels / March 1998 | |
CapStar Hotel Company, American General Hospitality to Merge / March 1998 | |
CEO Interview: Paul Whetsell / KPMG / 1998 | |
Newsmaker Interview: MeriStar's Paul Whetsell / Robert Nozar / July 1998 |