By: Yahoo Finance
(29-06-2001)

WASHINGTON--(BUSINESS WIRE)--June 28, 2001--MeriStar Hospitality Corporation (NYSE: MHX - news), the nation's third largest hotel real estate investment trust (REIT), today announced that its board of directors has declared a quarterly cash dividend of $.505 per share.

The dividend, equivalent to an annual rate of $2.02 per share, is payable July 31, 2001, to shareholders of record on July 13, 2001. Based on yesterday's closing stock price of $22.75, the annualized dividend yield is 8.9 percent.

Washington, D.C.-based MeriStar Hospitality Corporation owns 113 principally upscale, full-service hotels in major markets and resort locations with 28,897 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. For more information about MeriStar Hospitality Corporation, visit the company's Web site: www.meristar.com.

This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results and the timing and composition of revenues, among others. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the following: the ability of the company to successfully implement its acquisition strategy and operating strategy; the company's ability to manage rapid expansion; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to the company.


----------------------------------------------------------
Contact:

MeriStar Hospitality Corporation
Bruce Riggins, 202/295-2276
Director of Finance
Melissa Thompson, 202/295-2228
Director of Corporate Communications
or
Media
Daly Gray Public Relations
Jerry Daly or Carol McCune
703/435-6293
"