MHX Meristar Hosp Cp

BETHESDA, Md., Jan. 3 /PRNewswire-FirstCall/ -- MeriStar Hospitality Corporation (NYSE:MHX), one of the nation's largest hotel real estate investment trusts (REIT), today announced that it has sold five hotels, in separate transactions, for $58.5 million in gross proceeds during the 2005 fourth quarter. The properties include: * Hilton Salt Lake City Airport (287 rooms) * Doubletree Bradley International Airport in Hartford, Conn. (200 rooms) * Hilton in Durham, N.C. (194 rooms) * Crowne Plaza -- San Jose, Calif. (239 rooms) * Holiday Inn -- Madison, Wis. (194 rooms) "These sales are part of our previously announced asset disposition program which is designed to take advantage of the strong pricing currently realizable in the hotel real estate market," said Paul Whetsell, chairman and CEO. "We were able to sell these five properties at a 14-times trailing- twelve-month EBITDA multiple on a combined basis. We intend to use the proceeds from our asset disposition program to improve our balance sheet primarily through debt reduction, particularly our 10.5 percent callable senior notes." Jones Lang LaSalle Hotels acted as broker on the Hilton Salt Lake City and Hilton Durham, Molinaro Koger brokered the Holiday Inn Madison, Colliers brokered the Crowne Plaza San Jose, and Pinnacle Realty Investments brokered the Doubletree Bradley International Airport. Separately, the company announced that it had recently completed its relocation to new corporate headquarters in Bethesda, Md. MeriStar's new headquarters location is: 6430 Rockledge Drive Suite 200 Bethesda, Md. 20817 (301) 581-5900 Bethesda, Md.-based MeriStar Hospitality Corporation owns 64 principally upper-upscale, full-service hotels in major markets and resort locations with 18,262 rooms in 20 states and the District of Columbia. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Ritz-Carlton, Westin, Doubletree and Radisson. For more information about MeriStar Hospitality, visit the company's website: http://www.meristar.com/. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on various assumptions and describe our future plans, strategies and expectations, are generally identified by our use of words such as "intend," "plan," "may," "should," "will," "project," "estimate," "anticipate," "believe," "expect," "continue," "potential," "opportunity," and similar expressions, whether in the negative or affirmative. We cannot guarantee that we actually will achieve these plans, intentions or expectations. All statements regarding our expected financial position, business and financing plans are forward-looking statements. Except for historical information, matters discussed in this press release are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to: economic conditions generally and the real estate market specifically; supply and demand for hotel rooms in our current and proposed market areas; other factors that may influence the travel industry, including health, safety and economic factors; competition; the level of proceeds from asset sales; cash flow generally, including the availability of capital generally, cash available for capital expenditures, and our ability to refinance debt; the effects of threats of terrorism and increased security precautions on travel patterns and demand for hotels; the threatened or actual outbreak of hostilities and international political instability; governmental actions, including new laws and regulations and particularly changes to laws governing the taxation of real estate investment trusts; weather conditions generally and natural disasters; rising insurance premiums; rising interest rates; and changes in U.S. generally accepted accounting principles, policies and guidelines applicable to real estate investment trusts. These risks and uncertainties should be considered in evaluating any forward-looking statements contained in this press release or incorporated by reference herein. All forward-looking statements speak only as of the date of this press release or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified by the cautionary statements in this section. We undertake no obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. Contact: Mike Bauer Jerry Daly or Carol McCune Sr. Director, Finance and Daly Gray Public Relations (Media) Investor Relations (703) 435-6293 (301) 581-5927 DATASOURCE: MeriStar Hospitality Corporation CONTACT: Mike Bauer, Sr. Director, Finance and Investor Relations of MeriStar Hospitality Corporation, +1-301-581-5927; or Media: Jerry Daly or Carol McCune, of Daly Gray Public Relations, +1-703-435-6293, both for MeriStar Hospitality Corporation Web site: http://www.meristar.com/

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