Penn Square Partners Names Marriot International, Inc. as Flagship Hotel for Watt & Shand Building in Lancaster.

Business Editors

LANCASTER, Pa.--(BUSINESS WIRE)--July 24, 2001

Hotel and Convention Center Project is Cornerstone of

Downtown Revitalization

City, county and state officials joined business leaders today in downtown Lancaster to announce that the new hotel being developing in the former Watt & Shand Building will be operated as a Marriott International, Inc. (NYSE:MAR) franchise.

The hotel, which is slated to open in early 2004, will be managed by Interstate Hotels Corp. (NASDAQ:IHCO) of Pittsburgh, PA.

Developed by Penn Square Partners, the $45 million Marriott hotel is a significant component in a downtown Lancaster revitalization plan, which includes a $30 million publicly funded convention center immediately adjacent to the historic Watt & Shand Building.

The new Marriott hotel will be one of the largest hotels in the region, and the first full-service hotel built in Lancaster County in more than 25 years.

It will operate as one of more than 350 hotels worldwide under the flagship Marriott Hotels, Resorts and Suites brand, the company's quality-tier, full-service hotels, which include amenities such as swimming pools, health clubs, gift shops, business centers and concierge service.

Nevin D. Cooley, president of Penn Square Partners noted, "Marriott's decision to raise its flag in downtown Lancaster is a clear signal that our community's unique public/private partnership has the right plan and capacity to expand Lancaster County's thriving tourism industry with the addition of a first class hotel and convention center. Marriott's prestigious brand, marketing strength and state-of-the-art reservation system will contribute enormously to our ability to draw new visitors to downtown Lancaster as part of their stay in Lancaster County."

According to a 1999 study by Ernst & Young LLP, the hotel and convention center project is expected to create an estimated 300-400 full-time jobs and to generate about $11.5 million a year in increased personal income during operations. It will infuse the local economy with $100 million in goods and services during construction and more than $30 million annually through operations.

The former Watt & Shand Building, dating from the late 1800s, and operated as a department store until 1995, is an historic landmark. Marriott International is well known for its sensitive adaptation of historic buildings into hotels.

Marriott received the 2001 Corporate Commitment Award from Preservation Pennsylvania and the Pennsylvania Historical and Museum Commission for their involvement in the rehabilitation of several significant historic structures including the Girard Trust Building and the City Hall Annex in Philadelphia, and Pittsburgh's Fulton building.

Penn Square Partners is a privately held partnership comprised of High Real Estate Group, Fulton Bank (NASDAQ:FULT) and Lancaster Newspapers, Inc.

Marriott International, Inc. is a leading worldwide hospitality company, with nearly 2,100 lodging properties located in 50 states and 59 countries and territories.

Pennsylvania-based Interstate Hotels Corp. is one of the largest independent hotel management companies in the United States, operating nearly 140 hotels with more than 28,000 rooms in 38 states, Canada, the Caribbean and Russia. Interstate is the largest independent manager of Marriott Hotels.