The company also announced that it has formed a new business unit, the Doral Division, headed by John Plunket, who currently is MeriStar Hotels  Resorts executive vice president of finance and development. The division initially will focus on further developing the Doral brand within its established niches of golf, executive conference centers and resorts and on managing high-end, daily fee golf courses.

The Doral Division will actively consider upscale golf courses, resorts and conference centers for branding under the Doral name in conjunction with management by MeriStar Hotels  Resorts. The company also is exploring extension of the Doral brand into timeshare/vacation
ownership and other related business opportunities.

The Doral Arrowwood, located in Westchester County, N.Y., will retain the Doral name. The Doral Golf Resort  Spa in Miami, Fla., which is owned and operated by KSL Recreation, is not part of this transaction.

"Doral is a strategic acquisition in line with our growth strategy," said Paul W. Whetsell, MeriStar Hotels  Resorts chairman and CEO. "An upscale niche brand will support and extend our core hotel, resort and conference center management operations, while creating an exciting new avenue of growth into golf and vacation ownership. The Doral Division will be our focal point for developing business lines outside our traditional hotel and resort portfolios."

The Doral name is recognized worldwide as one of the most distinguished luxury golf, conference center and resort names. Whetsell stressed that neither MeriStar Hotels  Resorts nor MeriStar Hospitality had any plans to expand the Doral brand outside of the
golf, resort and conference center niches. "We may brand several of our other existing independent resorts, following extensive renovation," Whetsell said. "However, we continue to see significant advantages to our independent, multi-brand strategy. We have strong
relationships with all of our franchisors, and we will continue to build on them."

MeriStar Hotels  Resorts will aggressively seek additional golf management contracts and branding opportunities and already has a substantial pipeline of potential transactions. Neither the company nor MeriStar Hospitality intends to be a primary investor in golf
courses. Instead, MeriStar Hotels  Resorts will seek strategic relationships with golf course owners and developers who need a creditworthy operator, experienced management and the substantial marketing infrastructure, buying power and financial systems that MeriStar Hotels  Resorts provides.

Plunket pointed out that golf is a highly fragmented industry with very few companies managing 10 or more golf courses. In the U.S. alone, there are more than 16,000 courses, and approximately 300 new courses currently are being built each year. "Despite this growth,
demand is expected to outpace supply as baby boomers reach 50. Once past 50, golfers play twice as often as players in their 30s," he said. "We believe there is an excellent opportunity for a national management company, especially one that can take advantage of the cost
and marketing synergies available to us from MeriStar Hotels Resorts."

The Doral Division's senior management will have more than 50 years experience in golf, timeshare and development/acquisitions, making it one of the most in-depth teams in the industry.

Joining the division will be Bruce Blum, formerly chief executive officer of Doral Hotels  Resorts. Blum has been named senior vice president of MeriStar Hotels  Resorts. He will be responsible for establishing Doral brand standards, reflagging appropriate MeriStar Hotel  Resorts-managed properties and overseeing international marketing activities.

Jeffrey Witt, previously President of Premier Golf, a golf course management company, was named senior vice president of MeriStar Hotels Resorts. He will be responsible for day-to-day management of all MeriStar Hotels  Resorts-managed golf courses. Working with Plunket,
he will seek strategic relationships with golf course owners and developers, as well as acquisitions of golf course management companies.

Robert Taylor, former chairman of South Seas Resorts, which was recently acquired by MeriStar Hospitality, will play an active advisory role in the new Doral division in resort condominium and vacation ownership efforts.

Washington, D.C.-based MeriStar Hospitality Corporation owns 117 principally upscale, full-service hotels in major market and resort locations with 29,337 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.

MeriStar Hotels  Resorts leases or manages 215 hotels with 45,191 rooms in 34 states, the District of Columbia, Canada and the U.S. Virgin Islands. For more information about MeriStar Hospitality Corporation and MeriStar Hotels  Resorts, Inc., visit the companies'
web site: www.meristar.com.

The matters in this press release include "forward looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in MeriStar Hospitality's and MeriStar Hotels  Resorts' filings with the Securities and Exchange Commission.