Austin's Largest Hotel Project Announced; White Lodging Services to Bring 1,000 New Rooms and Three Leading Brands to Downtown Austin With $185-Million Project.

AUSTIN, Texas -- White Lodging Services Corporation has announced plans to develop a 1,000-room, $185-million hotel project in downtown Austin, bringing together three leading brands in the largest hotel development in Austin's history.

Located on Congress Avenue between 2nd and 3rd streets, two blocks from the Austin Convention Center, the major hotel development will feature a 650-room, full-service Marriott convention center hotel, a 200-room upscale, boutique Renaissance Hotel and a 150-room all-suite Springhill Suites by Marriott.

The project is scheduled to open in Summer 2009 and will incorporate 26 stories of total construction, approximately 50,000 square feet of meeting space including two ballrooms (24,000 sf and 14,500 sf) and 18 additional meeting rooms, street-level retail on 2nd Street, up to five food and beverage outlets and an underground parking garage with 500 spaces.

"White Lodging is extremely excited about developing Austin's largest hotel project to date, and it illustrates our ongoing commitment to the city and our intent to be here well into the future," said Deno Yiankes, White Lodging Services President and COO, Development and Asset Management. "We believe that adding 1,000 upscale hotel rooms to the downtown market will help attract additional convention business to Austin, enabling the city to compete more effectively with other convention destinations."

At full staffing, the three hotels combined will add 600 new, full-time jobs to the Austin market, doubling the number of associates currently employed by White Lodging in Austin. The hotels will generate more than $2.0 million annually in property tax and in excess of $4.0 million annually in bed tax for the City.

"The interest in capital investment in downtown Austin is currently at an all-time high, and our industry is also enjoying a strong economic period," said Bob Lander, President and CEO, Austin Convention & Visitors Bureau. "This project, anchored by three of Marriott's leading brands, will certainly produce more demand for our city. With White Lodging, we have a strong partner in marketing Austin, and we applaud their continued confidence in the future of downtown."

White Lodging, already Austin's largest hotel owner/operator, currently operates 16 hotels in the Austin market including the Marriott Austin South and three hotels opening this fall -- the combined 450-room Residence Inn and Courtyard Downtown featuring Champions Sports Bar, located adjacent to the convention center, and the Courtyard by Marriott Airport. In addition to the 16 hotels, White Lodging's Western Division offices are also headquartered in Austin. The company currently operates numerous award-winning full-service and convention hotels in other markets, including the 616-room Marriott Louisville Downtown and the 615-room Marriott Indianapolis Downtown.

About White Lodging Services Corporation

White Lodging Services is an award-winning, independently owned hotel development and management company operating leading brand full and select service hotels throughout the United States. The company, founded in 1985 and headquartered in Merrillville, Indiana, has 106 hotels currently under management. Primary brands represented in the company's portfolio include Marriott, Renaissance, Hilton Garden Inn, Courtyard by Marriott, Residence Inn by Marriott, Springhill Suites by Marriott, Fairfield Inn & Suites by Marriott, Hampton Inn and Homewood Suites.

NOTE TO EDITORS: A project rendering is available. Please contact Judy Bronowski at 219-757-3505 for a copy.