FOR IMMEDIATE RELEASE July 25, 1997, 7:32 am E.S.T.

CONTACT:  John Emery, Chief Financial Officer
          (202) 965-4455


            CapStar Hotel Company announced Thursday that it intends to offer
$150 million of senior subordinated notes due 2007. The offering will be made
via an offering memorandum to qualified institutional buyers and is expected to 
be completed during the third quarter of 1997.

            The Company expects to use the net proceeds of the private offering
to repay indebtedness under its credit facility, to pursue its acquisition
strategy, to make capital expenditures for its renovation programs and for
working capital and general corporate purposes.

            The notes will be general unsecured obligations of the Company and
will be subordinated to all existing and future senior debt (to be defined in
the indenture governing the notes) of the Company. The Notes also will be
effectively subordinated to all obligations of the Company's subsidiaries,
including, without limitation, trade payables in the ordinary course of 
business.

            The notes have not been and will not be registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.

            CapStar Hotel Company is a hotel management and investment company
which acquires, renovates, repositions and manages hotels throughout the United
States. CapStar currently owns and manages 36 upscale, full-service hotels which
contain 9,151 rooms and manages an additional 30 hotels owned by third parties
which contain 5,340 rooms.