Wyndham International Sells Four Hotels to Highland Hospitality Corporation for $227 Million

DALLAS | Wyndham International, Inc. (AMEX:WBR) announced today that it has entered into a definitive agreement with Highland Hospitality Corporation (NYSE:HIH) to sell four hotel properties for approximately $227 million. All net proceeds from the sale will be used to pay down debt.

The agreement outlines the sale of two non-proprietary assets and two non-strategic Wyndham-branded assets, including the 495-room Crowne Plaza Ravinia in Atlanta, the 510-room Hilton Parsippany, N.J., the 360-room Wyndham Wind Watch Hotel in Hauppauge, N.Y., and the 322-room Tremont Boston -- A Wyndham Historic Hotel. Upon the transaction's closing, which is expected to take place in the next two to three months, the two Wyndham-branded assets will be re-branded.

Wyndham Chairman and Chief Executive Officer, Fred J. Kleisner, stated, "We are pleased with our asset sale program as we continue to sell assets at de-leveraging multiples and improve the financial strength of the company."

Bear, Stearns & Co. Inc. is serving as financial advisor to Wyndham International in connection with the transaction.

Based in Dallas, Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Wyndham owns, leases, manages and franchises hotels and resorts in the U.S., Canada, Mexico, the Caribbean and Europe, and guarantees that the best rates for its properties will be found on its proprietary Web site. For more information or to make a reservation, visit www.wyndham.com or call 800-WYNDHAM. Wyndham is a founding member of the Global Hotel Alliance (www.globalhotelalliance.com), a worldwide union of hospitality companies that provides guests with unique, personalized guest services.

Cautionary Statement

This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The Company's results, expectations and objectives could differ materially from those set forth in the forward-looking statements. Certain factors that might cause a difference include, but are not limited to, risks associated with the availability of equity or debt financing at terms and conditions favorable to Wyndham; risks associated with the course of litigation; Wyndham's ability to effect sales of assets on favorable terms and conditions; Wyndham's ability to integrate acquisitions into its operations and management; risks associated with the hotel industry and real estate markets in general; competition within the lodging industry; the impact of general economic conditions; travelers' fears of exposure to contagious diseases; the impact of terrorist activity or war, threats of terrorist activity or war and responses thereto on the economy in general and the travel and hotel industries in particular; risks associated with debt financing; and other risks and uncertainties set forth in the company's annual, quarterly and current reports, and proxy statements.