CapStar Hotel Company acquires Great Valley Sheraton.

WASHINGTON, D.C.--(BUSINESS WIRE)--March 28, 1997--CapStar Hotel Company (NYSE: CHO), a leading hotel management and investment corporation, today announced that it completed the acquisition of the 154-room Great Valley Sheraton in Frazer, Pa., from Glen Lincoln, Inc. for $14.4 million.

"This is our second hotel acquisition in the Philadelphia metro area in the past 30 days," said Paul Whetsell, president and CEO. "We believe the Philadelphia hotel market is on the rebound and that both properties have excellent upside potential."

The Great Valley Sheraton is located in Chester County along the 202 corridor, one of the fastest growing areas in the Philadelphia market. CapStar will complete a major $4.2 million renovation and expansion of the facility, adding 40 new rooms and suites, plus additional meeting space. The property currently features 7,300 square feet of meeting space, a fitness center, indoor garden and swimming pool and two upscale food and beverage facilities--the White Horse Tavern, a restaurant rated highly by area food critics, and Chesterfield's Lounge, a relaxed-atmosphere piano bar.

"Demand for small- to mid-sized meeting space is on the rise in Chester County, and the Great Valley Sheraton has tremendous unrealized potential," said David McCaslin, chief operating officer of CapStar. "Our renovations will make the hotel much more accommodating for business meetings and much more comfortable for frequent business travelers. Our goal is to make the Great Valley Sheraton the top first-class, full-service hotel in the area."

CapStar announced earlier this month the acquisition of the 213-room Four Points by Sheraton in Cherry Hill. Located just off Interstate 295, the hotel is approximately nine miles from downtown Philadelphia and 19 miles from the Philadelphia International Airport.

Washington, D.C.-based CapStar owns and manages upscale, full-service hotels throughout the U.S. under such nationally known brands as Hilton, Sheraton, Marriott, Embassy Suites and Westin. CapStar has a six-hotel, 1,385-room portfolio currently has under purchase agreement, and, when consummated, will expand CapStar's hotel portfolio to 30 owned hotels with 7,706 rooms and 31 managed hotels with 5,488 rooms, or a total of 61 properties with 13,194 rooms. The company is actively seeking acquisitions and management contracts in major markets throughout North America.

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