CapStar Hotel Company Obtains Seven Management Contracts.

WASHINGTON--(BUSINESS WIRE)--May 5, 1998--CapStar Hotel Company (NYSE: CHO), a leading hotel investment and management corporation, today announced that it has signed seven long-term management contracts.

The company will lease and manage six properties for Winston Hotels, Inc., a Raleigh, N.C.-based hotel real estate investment trust (REIT). The properties include the newly purchased 171-room Holiday Inn in Tinton Falls, New Jersey; the 155-room Albany (N.Y.) Hilton Garden Inn; the 137-room Raleigh (N.C.) Crabtree Homewood Suites; the 168-room Residence Inn Phoenix (Ariz.); the 155-room Raleigh-Durham (N.C.) Airport Hilton Garden Inn; and the 164-room Atlanta/Windward (Ga.) Hilton Garden Inn. In addition, CapStar will manage the 74-suite Whitney Hotel in Columbia, S.C. for Newco Management Company, a California-based private investment group.

"We continue to expand our the Company's management contracts in the pas6 miles south of Newark Airport and just six miles from the Jersey shore. The three diamond hotel consists of a seven-story tower which houses 171-rooms, including 12 oversized suites. Amenities consist of 8,000-square-feet of recently renovated banquet and meeting space, an outdoor pool, sauna, fitness center and Morgan's Food and Spirits Restaurant and Lounge.

The Whitney Hotel is located five minutes from downtown Columbia, close to government offices and the University of South Carolina. The upscale all-suite property features two-bedroom, two-bathroom suites, an outdoor pool, health club and complimentary breakfast.

The three Hilton Garden Inns offer guests a 24-hour business center and feature a casual, buffet-style restaurant, room service and a quick-stop mart. Each hotel also has an indoor pool, whirlpool spa, fitness room and self-service guest laundry. Business-oriented guest rooms are equipped withed hotel features spacious suites, many with fireplaces and all with fully-equipped kitchens. Complimentary continental breakfast and weekday social hours are standard.

The Raleigh Crabtree Homewood Suites in North Carolina prod iron and ironing boards.

"We are delighted to expand our relationship with Winston Hotels, while at

Washington, D.C.-based CapStar Hotel Company owns and manages upscale, full-service hotels and resorts throughout the U.S. and Canada under such internationally known brands as Hilton, Sheraton, Marriott, Embassy Suites, Westin and Doubletree. Including nine hotels under contract, CapStar's hotel portfolio currently comprises 64 owned hotels with 16,792 rooms and 88 leased or managed with 13,876 rooms for a total of 152 properties with 30,668 rooms. The n off its hotel management operations, creating two new companies--MeriStar Hotel and Resorts, Inc. and MeriStar Hospitality Corporation.

Certain statements inmplement acquisition and operating strategies, the ability to manage rapid expansion, changes in economic cycles, competition from other hospitality companies, changes in the applicable laws and government regulations and other risk MBIA 

INDUSTRY KEYWORD: REAL ESTATE TRAVEL/AIRLINES

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