CapStar Acquires Courtyard by Marriott, Secaucus, NJ

Property Marks Third Acquisition for Growing Hotel Investment Company

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. October 14, 2008

JULY 9, 2007. CapStar Hotel Company, LLC, a recently formed hotel investment company, today announced that it has acquired the Courtyard by Marriott Secaucus in northern New Jersey. The recently renovated 167-room hotel was acquired from affiliates of The Blackstone Group for an undisclosed amount and will be managed by an affiliate of Marriott International, Inc., effective July 14.

"The Courtyard by Marriott Secaucus is already a regional market leader and well positioned to experience significant future growth," said Paul Whetsell, president of CapStar. "Located within minutes of New York City, the property is surrounded by key demand generators, including the Meadowlands Expo Center and Meadowlands Sports Complex, home of the NY Jets and Giants, as well as hundreds of major corporate headquarters. The hotel also is an attractive alternative to Manhattan hotels.

"The northern New Jersey segment of the New York City metropolitan area continues to add new development and demand generators, including the much anticipated Meadowlands Xanadu, a 4.8 million square foot sports, leisure, entertainment and shopping complex that will also feature the NFL's second largest stadium. With its expected completion in 2008, we fully expect this area to become one of the most highly trafficked areas on the eastern seaboard."

The hotel recently completed a $2.2 million renovation that included all guestrooms as part of Marriott's new generation concept design and "Indigo" guestroom package. CapStar will further enhance the property with an approximate $2 million investment to include public area and exterior and landscaping upgrades.

"CapStar's strategy is to apply its experience in asset management to further take advantage of growing markets and control operating costs to improve margins and enhance the real estate's value and economic returns," Whetsell noted. "Acquiring the Secaucus property was a market-based investment decision, and we anticipate significant returns. This is a rapidly growing market where demand will continue to significantly outpace supply."

The Courtyard by Marriott Secaucus marks the third acquisition for the growing investment company, which in January acquired the 143-room Copley Square Hotel in Boston's fashionable Back Bay district and the 148-room Hilton Garden Inn, Waltham, located just outside of Boston.

CapStar Hotel Company is a hotel investment firm headquartered in Arlington, Va. The company was founded in 2006 by Paul Whetsell, president and principal, who has more than 30 years of hospitality acquisition and operations expertise. Prior to forming CapStar, he was chairman and CEO of MeriStar Hospitality Corporation, one of the nation's largest hotel real estate investment trusts.