Bristol Hotel Company reports 29% EBITDA growth in the first quarter of 1997 as redeveloped hotels continue to improve.

DALLAS--(BUSINESS WIRE)--April 23, 1997--Bristol Hotel Company today reported first quarter 1997 EBITDA growth of 29% over the same period in 1996.

EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was $18,464,000 compared to $14,306,000 last year. This growth came principally as the result of continued improvement in the performance of the company's hotels that were redeveloped in a two year $130 million capital program begun in 1995. Net income grew 14% to $4,410,000 ($0.26 per share) for the first quarter 1997 compared to $3,863,000 ($0.23 per share) in 1996 as EBITDA growth was partially offset by higher interest and depreciation charges. Interest increased almost 50% as compared to 1996 due to higher debt balances as the result of the completion of the redevelopment program, the acquisition of the Holiday Inn in Plano, Texas and The Allerton Hotel in Chicago, and transaction costs incurred in conjunction with the pending acquisition of 60 owned or managed Holiday Inn hotels from Bass PLC, all of which were financed under the company's term credit facility. It is likely that The Allerton Hotel will not contribute to earnings until 1998 when its redevelopment to a Crowne Plaza is complete.

"We're excited to see the continuing improvement in the results of our redeveloped hotels and to report another successful quarter," said J. Peter Kline, President and CEO. "We've been heavily concentrated on the Holiday Inn acquisition which is scheduled to close next week. We will then be able to integrate the two organizations and increase our focus on other acquisition opportunities," added Kline.

Revenues grew 17% due to the impact of strong ramp up from the redeveloped hotels including the contributions from those hotels that were under construction during the first quarter of 1996. The $8,584,000 increase in revenue resulted in $4,158,000 in additional EBITDA as EBITDA margins improved to 31.7% from 28.8% in the prior year. Rooms revenue per available room ("revpar") increased 15% to $48.58 from $42.22 in 1996 on a same hotel basis (Holiday Inn Plano and The Allerton which were acquired after the 1st quarter of 1996 are excluded). -0-

                         Statistical Summary

                          1997           1996           Change

    Average rate         $68.82         $68.26            1.0%
    Occupancy             70.6%          61.9%            8.7pp
    REVPAR               $48.58         $42.22           15.0%

    Note: This comparison excludes Holiday Inn Plano and The Allerton.

-0-

The company has scheduled its annual shareholders' meeting for April 28 at which time it is expected that the acquisition from Bass PLC of the 60 full-service Holiday Inn owned or managed hotels in the United States and Canada will be approved by the shareholders, with closing of the transaction expected to be completed the same day.

Upon closing of the Holiday Inn acquisition, Bristol Hotel Company will be one of the largest owner/operators of hotels in North America, with 99 hotels (83 of which are owned by the company) containing approximately 28,000 rooms. The company's shares are listed on the New York Stock Exchange (trading symbol BH). -0-

                        Bristol Hotel Company
                  Consolidated Statements of Income
               (In thousands, except per share amounts)

                                          For the Three Months Ended
                                                   March 31,
                                            1997              1996
Revenue:
   Rooms                                  $41,731           $35,454
   Food & beverage                         12,475            10,599
   Other                                    4,055             3,624

      Total revenue                        58,261            49,677

Operating costs and expenses:
   Departmental expenses:
      Rooms                                 9,905             8,574
      Food & beverage                       8,438             7,193
      Other                                 1,207             1,146
   Undistributed operating expenses:
      Administrative and general            4,699             4,633
      Marketing                             4,209             3,730
      Property operating costs              4,927             4,219
      Property taxes, rent and insurance    3,400             2,914
      Depreciation and amortization         5,164             3,988
      Corporate expense                     3,012             2,962

Operating income                           13,300            10,318

Interest expense                            6,278             4,206


Income before income taxes                  7,022             6,112

Provision for income taxes                  2,612             2,249

Net income                                 $4,410            $3,863

   Earnings per share                       $0.26             $0.23

   Weighted average shares outstanding     17,193            17,006

   EBITDA (1)                             $18,464           $14,306


(1) Earnings before interest, income taxes, depreciation and
    amortization.

CONTACT: Bristol Hotel Co., Dallas

Jeffrey P. Mayer, 972/391-3100