Boykin/CapStar Hotel Company Alliance To Acquire Omni Hotel Kansas City.

WASHINGTON, D.C.--(BUSINESS WIRE)--November 19, 1997--CapStar Hotel Company (NYSE: CHO), a leading hotel investment and management company, today announced that it will participate in the joint acquisition of the 388-room Omni Hotel Kansas City as part of its ongoing strategic alliance with Boykin Lodging Company (NYSE: BOY), a Cleveland-based hotel real estate investment trust (REIT). Under terms of the agreement, CapStar will purchase a minority ownership interest in the hotel, own 50 percent of an entity that will lease the property, and manage the hotel. The current owners, 13th & Wyandotte Hotel, L.L.C., will retain partial ownership, as well.

"We continue to see opportunities to build our relationship with Boykin Lodging," said Paul Whetsell, CapStar president and CEO. "We often will make side-by-side investments with majority owners to ensure the success of the transaction. CapStar has extensive expertise in negotiating complex transactions involving multiple parties in a way that benefits everyone involved. We will continue to present these and other more traditional transactions to Boykin Lodging."

Located adjacent to Bartle Hall Convention Center in downtown Kansas City, the 28-story hotel was built in 1969. Earlier this year the property completed a major $25 million renovation. Property amenities include an outdoor swimming pool and hot tub, state-of-the-art fitness center, a full-service business center, concierge services and Bistro 1301, an old world restaurant that showcases wood-grilled specialities and a 2,000-bottle upscale wine collection.

"Kansas City, which ranks among the nation's top 25 convention cities, is a rapidly expanding market," said David McCaslin, CapStar chief operating officer. "With the refurbishment of the hotel, combined with our staff's experience and expertise in the coordination of large meetings, we believe the hotel will be well-positioned to take advantage of the city's growing convention and trade show business."

Boykin Lodging Company, a real estate investment trust, focuses on the ownership of full-service, premium branded commercial and resort hotels. Including the Omni acquisition, the REIT owns 16 full-service commercial and resort properties with 4,368 rooms, located in nine states.

Washington, D.C.-based CapStar Hotel Company currently owns and manages upscale, full-service hotels throughout the U.S. and Canada under such internationally known brands as Hilton, Sheraton, Marriott, Embassy Suites, Westin and Doubletree. In addition to 10 hotels currently under contract, CapStar's hotel portfolio comprises 42 owned hotels with 10,724 rooms and 29 managed hotels with 5,039 rooms, for a total of 71 properties with 15,763 rooms. CapStar also has entered into a contract to purchase the long-term leases for 38 hotels with 5,032 rooms. The company is actively seeking acquisitions and management contracts in major markets and resort locations throughout North America.

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