EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
Contact:
Kevin J. Welch
MeriStar Hospitality
(301) 581-5926
MERISTAR STOCKHOLDERS APPROVE MERGER WITH AFFILIATE OF THE BLACKSTONE GROUP
BETHESDA, Md., April 27, 2006--MeriStar Hospitality Corporation
(NYSE: MHX) announced that, at a special meeting of stockholders held today,
its stockholders voted to approve the merger of MeriStar with and into Alcor
Acquisition LLC, an affiliate of The Blackstone Group, and the other
transactions contemplated by the Agreement and Plan of Merger, dated as of
February 20, 2006, by and among MeriStar, MeriStar Hospitality Operating
Partnership, L.P., Alcor Holdings LLC, Alcor Acquisition Inc., Alcor
Acquisition LLC and Alcor Acquisition L.P. Approximately 98.8 percent of the
shares of MeriStar common stock present and voting at the special meeting
approved the merger, representing approximately 81.4 percent of the total
number of shares of MeriStar common stock outstanding and entitled to vote.
MeriStar expects to close the merger and the other transactions
contemplated by the merger agreement next week, pending the satisfaction or
waiver of the conditions set forth in the merger agreement. Under the terms of
the merger agreement, each outstanding share of MeriStar common stock and each
unit of limited partnership interest in MeriStar Hospitality Operating
Partnership, L.P. will be converted into the right to receive $10.45 in cash,
without interest.
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MeriStar Stockholders
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ABOUT MERISTAR HOSPITALITY CORPORATION
Bethesda, Maryland-based MeriStar Hospitality Corporation owns 47
principally upper-upscale, full-service hotels in major markets and resort
locations with 14,404 rooms in 19 states and the District of Columbia.
MeriStar owns hotels under such internationally known brands as Hilton,
Sheraton, Marriott, Ritz-Carlton, Westin, Doubletree and Radisson. For more
information about MeriStar, visit the company's website: WWW.MERISTAR.COM.
ABOUT THE BLACKSTONE GROUP
The Blackstone Group, a global private investment and advisory firm
with offices in New York, Atlanta, Boston, Los Angeles, London, Hamburg,
Mumbai and Paris, was founded in 1985. Blackstone's real estate group has
raised approximately $10 billion for real estate investing and has a long
track record of investing in office buildings, hotels and other commercial
properties. In addition to Real Estate, The Blackstone Group's core businesses
include Private Equity, Corporate Debt Investing, Marketable Alternative Asset
Management, Mergers and Acquisitions Advisory, and Restructuring and
Reorganization Advisory. Information relating to The Blackstone Group can be
accessed on the Internet at HTTP://WWW.BLACKSTONE.COM.
SAFE HARBOR STATEMENT
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934. FORWARD-LOOKING STATEMENTS, WHICH ARE BASED
ON VARIOUS ASSUMPTIONS AND DESCRIBE OUR FUTURE PLANS, STRATEGIES AND
EXPECTATIONS, ARE GENERALLY IDENTIFIED BY OUR USE OF WORDS SUCH AS "INTEND,"
"PLAN," "MAY," "SHOULD," "WILL," "PROJECT," "ESTIMATE," "ANTICIPATE,"
"BELIEVE," "EXPECT,"
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MeriStar Stockholders
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"CONTINUE," "POTENTIAL," "OPPORTUNITY," AND SIMILAR EXPRESSIONS, WHETHER IN
THE NEGATIVE OR AFFIRMATIVE. WE CANNOT GUARANTEE THAT WE ACTUALLY WILL ACHIEVE
THESE PLANS, INTENTIONS OR EXPECTATIONS. ALL STATEMENTS REGARDING OUR EXPECTED
FINANCIAL POSITION, BUSINESS AND FINANCING PLANS ARE FORWARD- LOOKING
STATEMENTS. EXCEPT FOR HISTORICAL INFORMATION, MATTERS DISCUSSED IN THIS PRESS
RELEASE ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE
MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.
FACTORS WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR OPERATIONS
AND FUTURE PROSPECTS INCLUDE, BUT ARE NOT LIMITED TO: ECONOMIC CONDITIONS
GENERALLY AND THE REAL ESTATE MARKET SPECIFICALLY; SUPPLY AND DEMAND FOR HOTEL
ROOMS IN OUR CURRENT AND PROPOSED MARKET AREAS; OTHER FACTORS THAT MAY
INFLUENCE THE TRAVEL INDUSTRY, INCLUDING HEALTH, SAFETY AND ECONOMIC FACTORS;
COMPETITION; THE LEVEL OF PROCEEDS FROM ASSET SALES; CASH FLOW GENERALLY,
INCLUDING THE AVAILABILITY OF CAPITAL GENERALLY, CASH AVAILABLE FOR CAPITAL
EXPENDITURES, AND OUR ABILITY TO REFINANCE DEBT; THE EFFECTS OF THREATS OF
TERRORISM AND INCREASED SECURITY PRECAUTIONS ON TRAVEL PATTERNS AND DEMAND FOR
HOTELS; THE THREATENED OR ACTUAL OUTBREAK OF HOSTILITIES AND INTERNATIONAL
POLITICAL INSTABILITY; GOVERNMENTAL ACTIONS, INCLUDING NEW LAWS AND
REGULATIONS AND PARTICULARLY CHANGES TO LAWS GOVERNING THE TAXATION OF REAL
ESTATE INVESTMENT TRUSTS; WEATHER CONDITIONS GENERALLY AND NATURAL DISASTERS;
RISING INSURANCE PREMIUMS; RISING INTEREST RATES; AND CHANGES IN U.S.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, POLICIES AND GUIDELINES APPLICABLE
TO REAL ESTATE INVESTMENT TRUSTS. THESE RISKS AND UNCERTAINTIES SHOULD BE
CONSIDERED IN EVALUATING ANY FORWARD-LOOKING STATEMENTS CONTAINED IN THIS
PRESS RELEASE OR INCORPORATED BY REFERENCE HEREIN. ALL FORWARD-LOOKING
STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS PRESS RELEASE OR, IN THE CASE OF
ANY DOCUMENT INCORPORATED BY REFERENCE, THE DATE OF THAT DOCUMENT. ALL
SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO US OR
ANY PERSON ACTING ON OUR BEHALF ARE QUALIFIED BY THE CAUTIONARY STATEMENTS IN
THIS SECTION. WE UNDERTAKE NO OBLIGATION TO UPDATE OR PUBLICLY RELEASE ANY
REVISIONS TO FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS, CIRCUMSTANCES OR
CHANGES IN EXPECTATIONS AFTER THE DATE OF THIS PRESS RELEASE.
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