BridgeStreet Accommodations, Inc. Reaches Definitive Agreement to Merge With MeriStar Hotels and Resorts, Inc.

Business Editors

CLEVELAND--(BUSINESS WIRE)--March 24, 2000

BridgeStreet Accommodations, Inc. (AMEX:BDS) today announced that it has agreed to be acquired by MeriStar Hotels & Resorts, Inc. (NYSE:MMH), the nation's largest independent management company, in a merger in which each outstanding share of BridgeStreet would be exchanged for $1.50 in cash plus 0.5 share of MeriStar common stock. Total consideration per share of BridgeStreet is estimated to be approximately $3.00. The merger is subject to approval of the stockholders of BridgeStreet and other customary conditions.

The $35 million projected aggregate value of the transaction includes $24 million for the approximately 8 million outstanding shares of BridgeStreet common stock plus $11 million to retire BridgeStreet's existing debt.

John Danneberg, president and chief executive officer, stated, "The merger with MeriStar will strengthen BridgeStreet's ability to serve its customers in the increasingly competitive corporate extended stay market. MeriStar's financial and marketing resources will enhance BridgeSteet's ability to expand its domestic and international operations. With the focus on Fortune 2000 business travelers and major consulting companies, there are good marketing synergies between the two companies."

BridgeStreet offers upscale, fully furnished apartments, townhouses and condominiums primarily for business travelers and relocating corporate executives who need lodging for one night up to several months or more. A typical unit is considerably larger and its cost per night considerably lower than traditional and extended-stay hotels. The company's diverse customer base centers on Fortune 2000 corporations, professional firms and travel-wise individuals.

BridgeStreet's toll-free number is 1-800-B-STREET for calls from the U.S. or Canada. Feel free to visit our web site at www.bridgestreet.com.

MeriStar Hotels & Resorts operates 235 hospitality and leisure properties with more than 46,000 rooms and 10 golf courses in 34 states, the District of Colombia, Canada, Puerto Rico and the U.S. Virgin Islands. For more information about MeriStar Hotels & Resorts, visit MeriStar's web site: www.meristar.com.

This release contains forward-looking statements, which involve risks and uncertainties. The company's actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to, the company's planned rapid expansion, risks related to acquisition financing, dependence on third parties, market acceptance of the company's brand name, and factors affecting travel. These factors are more fully discussed in the company's Registration Statement on Form S-4 filed with the Securities and Exchange Commission (File No. 333-39187).

All stockholders of BridgeStreet are urged to read BridgeStreet's proxy statement relating to the special meeting of BridgeStreet's stockholders that will be called for the purpose of approving the merger when the proxy statement is available because it will contain important information about the acquisition described in this press release. Such information will include the stock ownership and other interests in the transaction of BridgeStreet's directors and executive officers, who will be participating in the solicitation of proxies related to the transaction, and MeriStar's executive officers, who may be participating in the solicitation of such proxies.

Once completed, BridgeStreet will mail its proxy statement to each of its stockholders. The Company's proxy statement, and any other relevant documents, will be available for free at the Securities and Exchange Commission's web site (www.sec.gov). Further, when they are available, the Company's notice of meeting and proxy statement will be available for free from the Company by contacting Investor Relations, at 330-405-6060.