Suburban Lodges Increases Hotel Pipeline to More than 300

From October 1 through December 31, 2000, the Company added 19 hotels, increasing the total pipeline to a record 310.

During the fourth quarter, the Company opened the sixth Suburban Lodge Extra location in Chicago, IL and franchisees opened hotels in Lakeland, FL and Hilton Head, SC. The brand now has 119 operating hotels with over 16,000 guestrooms. Since January 1, 2000, Suburban Lodge has opened 12 hotels and expanded the number of hotels open or in development by 27, an increase of approximately 18%.

The GuestHouse International brand opened 8 hotels in 6 different states in the fourth quarter, adding over 1,000 guestrooms to the chain. The newest GuestHouse International hotels are located in Montgomery and Tuscaloosa, AL; Daly City and Hemet, CA; Augusta, GA; Lake City, FL; Hazel Park, MI and Bismarck, ND. GuestHouse International ended the year with 65 operating hotels and nearly 5,000 guestrooms. Since January 1, 2000, GuestHouse International has expanded the number of hotels open or in development by 58 hotels, an increase of more than 80%.

The status of the Company's brands was as follows at December 31, 2000:

                                    Suburban      GuestHouse
                                       Lodge   International     TOTAL

Hotels Open                              119              65       184

Hotels Under Construction or Conversion    8               6        14

Executed Franchise Agreements (not
under construction or conversion)         11               7        18

Approved Applications                     42              52        94

Total Hotels Open or Under Development   180             130       310

Commenting on the growth, David E. Krischer, the Company's CEO, stated "We are very pleased to see our franchise sales efforts paying off. In addition to increasing the number of operating hotels by 20%, we've increased our pipeline by 85 hotels, or 38%, since the beginning of the year. It is particularly exciting to see such a significant increase in the overall activity of our GuestHouse International brand. Because the development timeline for this brand is so much shorter than for the Suburban Lodge brand, we expect to see continued increases in franchising activity."

Suburban Lodges of America, Inc. owns, franchises and manages Suburban Lodge hotels, the nation's largest economy extended stay lodging chain, and franchises GuestHouse International hotels, the owner-friendly brand of mid-market nightly hotels. For information about franchising opportunities, call 888-951-2100.

The matters discussed in the foregoing paragraphs of this news release include forward-looking statements that involve risks and uncertainties that could cause results to differ from anticipated results. These factors include, but are not limited to, economic conditions, financial markets and the availability of financing, the Company's ability to enter into contracts with its franchisees, development efficiencies including planning and zoning approvals, site acquisition and weather delays, the Company's financial condition and other risks indicated in the Company's filings with the Securities and Exchange Commission.