HARRELL HOSPITALITY ANNOUNCES MANAGEMENT CONTRACT

Dallas, Texas
November 12, 2001

Harrell Hospitality Group, Inc (OTCBB “HLTLA”) is pleased to announce that it has assumed the management of the Columbia Lakes Resort and Conference Center, located in West Columbia, Texas. (45 minutes south of Houston)

The Resort, nestled in 2,000 wooded acres, comprises 165 guestrooms, full restaurant and lounge facilities, 15,000 square feet of meeting space, an 18 hole Tom Fazio designed golf course, a championship 12 court tennis complex, a 300 acre boating and bass fishing lake, an Olympic sized swimming pool and several other outdoor activities.

Paul Barham, CEO of Harrell Hospitality, commented, “The Company was retained by the property owner in recognition of HHG’s skill in adding value to the properties that it manages. We see great opportunities at Columbia Lakes for us to again demonstrate those skills.”

Harrell Hospitality Group, Inc is a London and Dallas based hotel investment and management company, which operates full service hotels and resorts and is an approved franchisee of Marriott, Hilton, Sheraton, Holiday Inn and others.

For information about HHG, contact Paul Barham at (972) 380-0273 or via e-mail at pbarham@harrellhospitality.com.

The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.