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IRVING, Texas�October 18, 1999 � FelCor Lodging Trust Incorporated
(NYSE: FCH) and Starwood Hotels & Resorts (NYSE: HOT) today jointly
announced the acquisition of the 437-room Sheraton Premier Hotel in Tysons
Corner, Va., a suburb of Washington, DC, for a purchase price of $52.9
million.
The two companies, which have been working together on this acquisition for 10 months, have formed a 50/50 joint venture to purchase the 13-year old hotel from SRS Properties, a Virginia Limited Partnership. The purchase price consisted of approximately $52.8 million in cash and 3,571 FelCor Operating Partnership Units valued at $28 per unit. Sheraton Hotels will manage the hotel under a 20-year management agreement replacing ARLTEC, the prior manager. This transaction is the second joint venture between FelCor and Starwood. The 24-story Sheraton Premiere hotel is currently undergoing an extensive $5.3 million renovation, started by the prior owner. The renovation is expected to be completed in the second quarter of 2000. �The purchase of this hotel was completed at a cost of approximately $121,000 per room, which represents a price well below replacement cost,� said Thomas J. Corcoran, Jr., FelCor�s President and CEO. �We are excited by the potential of this hotel and the opportunity to further strengthen our alliance with our brand owner/manager Starwood.� �We are pleased to partner with FelCor on another hotel project,� said Juergen Bartels, CEO-Hotel Group of Starwood. �The Sheraton Premier is a terrific hotel in a great market and we were able to purchase it at a very attractive price. It joins a number of Starwood-owned properties in the Washington, D.C. area giving us a significant presence in this important urban market.� Including this hotel, FelCor owns 12 Starwood-branded hotels, (10 Sheraton hotels, one Four Points® by Sheraton, and one Westin® hotel) representing more than 3,000 rooms and suites. The hotels are located in geographically diverse markets including Phoenix, Ariz.; Atlanta, Ga. (2); Philadelphia, Pa.; Dallas, Texas (2); Burlington, Vt.; Ft. Lauderdale, Fla.; Lexington, Ky., Leominster, Mass., and Rosemont, Ill. The Sheraton Premiere Tysons Corner hotel is located in rapidly growing Fairfax County, Virginia, at the intersection of Route 7 and Dulles Toll Road. This hotel is 20 minutes from downtown Washington and 10 minutes from Dulles International Airport. The hotel features 437 luxury guest rooms and suites; more than 35,000 square feet of meeting space; Ashgrove and Baron�s restaurants; First Impressions, the hotel�s lobby bar; a business center; fitness and recreational facilities, which include both indoor and outdoor pools, and three racquetball courts. FelCor Lodging Trust is one of the nation�s largest hotel real estate investment trusts (REITs). FelCor�s hotel portfolio consists of 188 hotels and nearly 50,000 rooms and suites and is concentrated primarily in the upscale and full-service segments. FelCor is the owner of the largest number of Embassy Suites®, Crowne Plaza®, Holiday Inn® and independently owned Doubletree®-branded hotels. Other leading hotel brands under which FelCor�s hotels are operated include Sheraton Suites®, Sheraton and Westin. FelCor has a current market capitalization of approximately $3.2 billion. Additional information can be found on the Company�s website at www.felcor.com. Starwood, through its subsidiaries, owns, manages and franchises hotels
under its St. Regis®/Luxury Collection, Westin, Sheraton, Four Points
and W® brands. Starwood is one of the leading hotel and leisure
companies in the world with approximately 700 hotels in 76 countries and
130,000 employees at its owned and managed properties.
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