MCLEAN, Va., Crestline Hotels & Resorts, Inc. today announced its appointment by Highland Hospitality Corporation (NYSE: HIH - News) as the new management company for the historic and upscale 144 guest room Churchill Hotel in Washington, DC. The elegant boutique property was recently purchased by Highland Hospitality Corporation, a Virginia-based real estate investment trust (REIT). The hotel was originally designed in 1906 in the Beaux Arts style as a luxury apartment building. It is located in an exclusive residential neighborhood on prestigious Connecticut Avenue near Dupont Circle. The Churchill Hotel is a member of the Historic Hotels of America, an exclusive group within the National Trust for Historic Preservation. The hotel is recognized as a favorite retreat for diplomats, dignitaries, politicians and business travelers.

"The Churchill Hotel is a wonderful landmark property with a rich history of serving a 'who's who' of the Washington, DC community," said Dave Durbin, President & CEO, of Crestline Hotels & Resorts, Inc. "We are delighted to have the opportunity to continue this tradition of excellent service, while working towards improving the hotel's visibility to additional travelers seeking a world-class experience," added Durbin.

About The Churchill Hotel | The Churchill Hotel recently underwent a complete restoration of its stylish architecture and elegant interiors. All 144 guest rooms, including the 71 spacious suites, feature modern amenities such as wireless high speed Internet access and data ports, while retaining the charm of old-world elegance. The hotel also offers more than 2,200 square feet of graceful meeting and banquet space. The Chartwell Grill and The Chartwell Lounge offer full-service dining in an elegant atmosphere. Continental inspired cuisine is offered in The Chartwell Grill for breakfast, lunch and dinner, while The Chartwell Lounge offers lighter fare and cocktails. Room service and private catering is also available. In addition, there is valet parking, business center services, a fitness center and nightly turndown service.

Located at 1914 Connecticut Avenue NW, the hotel is in walking distance to the Red Line Metro service at Dupont Circle. It is seven miles, about a 20 minute drive, to Ronald Reagan National Airport, and about a 40 minute drive from Dulles International Airport. For more information or reservations visit The Churchill Hotel online at www.TheChurchillHotel.com or call, 202.797.2000.

Crestline Hotels & Resorts, Inc. is one of the nation's largest independent hospitality management companies. Founded in 2000, the Company presently manages 39 hotels, resorts and conference and convention centers with nearly 9,000 rooms in 11 states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well regarded brands as Marriott, Hilton, Westin, Renaissance, Sheraton, Crowne Plaza, Wyndham and Radisson. Additional information about the hotel management company is available at the company's web site: .

Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments primarily in the United States. The Company owns 23 hotel properties with an aggregate of 6,708 rooms in eleven states, Washington, DC and Mexico. Additional information can be found on the Company's website at .

Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "estimates" or "anticipates" or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions, results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete.