ShoLodge Announces Name Conversion of Shoney's Inns To Guesthouse Inns & Suites

Leon Moore, chief executive officer of ShoLodge, said, "After careful consideration of the merits of the two hotel brands, we have concluded that there are several important advantages in converting the Shoney's Inns brand to GuestHouse Inns and Suites. We believe that the name change to GuestHouse Inns and Suites provides the opportunity for a greater presence in the marketplace and thereby better establishes the identity of our properties in the minds of customers. The name GuestHouse suggests a warm hospitality that should be well received. We expect to begin converting the 30 hotels that we own or manage as soon as practical, and the franchisees that own the other properties will convert soon after. All new franchising will be done under the GuestHouse name."

"The name change recommendation was presented to the Shoney's Inn Franchise Owners Council and received overwhelming support. All Council members committed to convert their Shoney's Inns to the GuestHouse name, which will be the only change. ShoLodge currently is the franchisor of 70 Shoney's Inns, providing training, marketing, sales and operational support to franchisees."

This press release contains forward-looking statements relating to certain matters, which reflect management's best judgment, based on factors currently known and involve risks and uncertainties. Actual results could differ materially from the anticipated results or expectations expressed in the Company's forward-looking statements. Forward-looking information provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 should be evaluated in the context of these factors which are contained in the Company's Securities and Exchange Commission (SEC) filings, including its periodic reports filed under the Securities Exchange Act of 1934, as amended. Copies of these filings are available upon request from the Company. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.