Plasencia Advises MeriStar on the Sale of Seven Florida Assets

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. October 14, 2008

TAMPA, FL, February 2, 2006. The Plasencia Group, Inc., the leading hospitality transaction and consulting services firm representing owners of hotels, resorts and golf courses, announced that it has served as advisor to MeriStar Hospitality Corporation (NYSE: MHX) of Bethesda, MD in the proposed sale of seven hotels included in a portfolio of 10 assets being acquired by an affiliate of The Blackstone Group.

The transaction, scheduled to close by the end of the first quarter 2006, is valued at $367 million in cash. The sales price reflects an EBITDA multiple for the 10 properties that is accretive to the company's current trading value. The company intends to use the majority of the proceeds to further reduce debt, particularly its most expensive 10.5 percent senior unsecured debt, which currently is callable by the company.

The Plasencia Group is handling the following assets from the portfolio of Florida assets being acquired by Blackstone:

Best Western Sanibel Island Beach Resort (46 rooms)

The Dunes Golf & Tennis Club

Sanibel Inn (96 rooms)

Seaside Inn (32 rooms)

Song of the Sea (30 rooms)

South Seas Island Resort (579 rooms)

Sundial Beach Resort (243 rooms)

The remaining hotels in the portfolio include:

Hilton Cocoa Beach Oceanfront (296 rooms)

Hilton Clearwater Beach Resort (426 rooms)

Sheraton Beach Resort Key Largo (200 rooms)

According to Lou Plasencia, President & CEO of The Plasencia Group, "A number of major investor groups considered the investment opportunity but Blackstone stepped up on price and timing. Blackstone moved swiftly, professionally and decisively in its analysis of the assets. They presented an investment structure which was very sensible and which was difficult to turn down," Plasencia said. "We appreciate the way the entire Blackstone team conducts its business."