Allstar Inns Inc. announces results.

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 4, 1997--Allstar Inns Inc. Tuesday announced the unaudited results for the quarter and the year ended Dec. 31, 1996. -0-

                                  Quarter Ended    Year Ended
                                     Dec. 31,       Dec. 31,
                               (in thousands, except per share data)
Revenues:
  Rent income                        $ 5,088       $ 23,999
  Interest income                        164            744
    Total revenues                     5,252         24,743

Expenses:
  Interest expense                     4,764         19,061
  Administrative and general             285          1,227
  Depreciation & amortization
   and other expense                   2,190          8,743
    Total expenses                     7,239         29,031
  Net loss before provision
   for income taxes                   (1,987)        (4,288)
  Provision (benefit) for
   income taxes                         (869)        (2,862)
  Net loss                           $(1,118)       $(1,426)
  Net loss per common share           $(1.13)        $(1.45)
  Weighted average common
   shares outstanding                    986            986
-0-

    Effective Sept. 28, 1995, the company and Motel 6 consummated
the Master Lease Agreement.  As a result of this agreement, which
materially changed the company's operations, only the results for
the quarter and year ended Dec. 31, 1996 are being reported.  Prior
periods are not comparable.
    The company's Common Stock trades on, and bid and asked prices
are currently reported on, the OTC Bulletin Board Services under the
symbol "ALST".

CONTACT: Allstar Inns Inc.

Edward J. Gallagher, 805/730-3383