No Dividend For MeriStar Hospitality

WASHINGTON, D.C.— MeriStar Hospitality announced that the company will not pay a common share dividend for the 2002 fourth quarter. Based on its forecasted 2002 taxable income, the company said is not required to pay a dividend to maintain its REIT status. For each of the previous four quarters, the company has paid a $0.01 per share dividend. Chairman/CEO Paul Whetsell said the company “will continue to evaluate our dividend on a quarterly basis.” He reported that MeriStar “will monitor operating levels and will reinstate the dividend when our operations and taxable income have improved.” Whetsell added, “We expect our fourth-quarter FFO per share to approximate the lower end of our previous guidance range. Stronger than anticipated food and beverage revenue has helped offset somewhat softer than expected RevPAR results. RevPAR for the fourth quarter is now projected to be up 4% to 5% over fourth-quarter 2001.” MeriStar Hospitality owns 108 full-service hotels in major markets and resort locations with 27,898 rooms in 27 states, the District of Columbia and Canada.