MeriStar Hotels & Resorts Signs Multi-Year Contract to Manage Historic Boutique Hotel in Washington, D.C.

WASHINGTON / May 3, 2001--MeriStar Hotels & Resorts MMH, the nation's largest independent management company, today announced that it has signed a multi-year agreement with Whitewood, LLC, a Charleston, South Carolina-based hotel development group, to manage a 144-room boutique hotel in Washington, D.C. Whitewood acquired the former Sofitel Hotel and will begin a comprehensive $5.0 million renovation this summer. Whitewood has renamed the boutique property The Churchill Hotel.

"We also manage The Westin Francis Marion in Charleston and The Westin Poinsett in Greenville, South Carolina for affiliates of Whitewood, and we look forward to expanding our relationship with them," said Paul Whetsell, chairman and chief executive officer. "The Churchill Hotel is a landmark Washington property that broadens our presence in the growing boutique segment. Together with our other six hotels in Washington and seven properties in Maryland and Northern Virginia, we plan to take advantage of obvious operating synergies and cross-marketing opportunities to maximize revenues. When coupled with our proprietary management programs, we are confident that we can make The Churchill one of Washington's leading boutique hotels."

P. Steven Dopp, managing partner of Whitewood, LLC, stated, "The Churchill is a unique historic property in a great location in one of the country's best hotel markets. We plan to carefully renovate The Churchill to reposition it for the long term as a classic and comfortable European-style, four-star hotel. We are delighted to be working once again with MeriStar to provide great service to our guests and excellent returns to our partners."

Located at 1914 Connecticut Ave., NW, above Dupont Circle and originally constructed in 1906 as the Highland Apartments, The Churchill is a historic nine-story property with oversized guestrooms and suites, 1,800 square feet of meeting space, a fitness center, and a restaurant and lounge. Whitewood plans to invest approximately $5 million on a comprehensive renovation of the hotel, with a particular focus on updating the guestrooms and baths, public areas, including the lobby and meeting rooms, and developing a new upscale restaurant and bar.

"Washington's hotel business remains fairly robust," Whetsell added. "Once renovated, The Churchill will be unique in the downtown D.C. market, with its historic architecture, modern oversized guestrooms and suites, elegant public areas and excellent location."

MeriStar Hotels & Resorts operates 269 hospitality properties with more than 55,000 rooms in 36 states, the District of Columbia, Canada, Puerto Rico and the U.S. Virgin Islands, including 54 properties managed by Flagstone Hospitality Management, a subsidiary of MeriStar Hotels & Resorts. Through its Doral Golf division, MeriStar manages 12 golf courses.

BridgeStreet Corporate Housing Worldwide, a MeriStar subsidiary, is one of the world's largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the United States, Canada and Europe. For more information about MeriStar Hotels & Resorts, visit the company's Web site: www.meristar.com.

0- This press release contains forward-looking statements about MeriStar Hotels & Resorts, Inc., 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 MeriStar Hotels & Resorts to successfully implement its acquisition and operating strategies; the company's ability to manage rapid expansion; significant leverage; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to the company.