MeriStar Hospitality Declares Nominal Fourth-Quarter Dividend of One Cent

MeriStar Hospitality Declares Nominal Fourth-Quarter Dividend of One Cent

Business Editors

WASHINGTON, D.C.–(BUSINESS WIRE)–Dec. 17, 2001–MeriStar Hospitality Corporation (NYSE: MHX), the nation's third largest hotel real estate investment trust (REIT), today declared a fourth-quarter dividend of $0.01 per share, payable January 31, 2002, to shareholders of record on December 28, 2001.
The tragic terrorist attacks of September 11 have had a severe impact on the travel industry, causing us to reduce our dividend of $0.505 paid for the same period a year ago, said Paul W. Whetsell, MeriStar chairman and CEO. We will evaluate our 2002 dividend payout on a quarterly basis at our board meeting. Our goal is to pay a dividend in each quarter. However, the amount of the payment will be determined by such factors as the company's operating results, capital expenditure requirements, the economic outlook and the IRS dividend payout requirement for REITs.
Washington, D.C.-based MeriStar Hospitality Corporation owns 112 principally upscale, full-service hotels in major markets and resort locations with 28,597 rooms in 27 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Radisson and Doubletree. For more information about MeriStar Hospitality Corporation, visit the company's Web site: www.meristar.com.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, about the Company, including those statements regarding future operating results and the timing and composition of revenues, among others, and statements containing words such as expects, believes or will, which indicate that those statements are forward-looking. 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 effects of the events of September 11, 2001 and the downturn in the economy. Additional risks are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2000.