By: Yahoo Finance
(15-07-2001)

WASHINGTON--(BUSINESS WIRE)--July 12, 2001--MeriStar Hospitality Corporation (NYSE:MHX - news) today announced that its operating partnership, MeriStar Hospitality Operating Partnership, L.P., has determined that the conditions to its previously announced solicitation of consents from holders of its 9 percent Senior Notes due 2008 and 9-1/8 percent Senior Notes due 2011 have not been met, and has allowed the solicitation to expire by its terms at 5:00 p.m. Eastern time today.

MeriStar was seeking a waiver of the obligation to make a Change of Control Offer to purchase these notes following the closing of its previously announced agreement to merge with FelCor Lodging Trust Incorporated (NYSE:FCH - news).

Paul W. Whetsell, MeriStar chairman and chief executive officer, stated that the announcement today by FelCor that it has arranged a $500 million loan facility to fund the purchase of the notes tendered in the required Change of Control Offer to purchase, eliminates any need to obtain such consents prior to the proposed merger. The merger with FelCor is expected to close in the third quarter, subject to its approval by FelCor and MeriStar shareholders.

Washington, D.C.-based MeriStar Hospitality Corporation owns 113 principally upscale, full-service hotels in major markets and resort locations with 28,877 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.

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 complete its merger with FelCor; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to the company.


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Contact:

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