Exhibit 99.3
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
[] MERGER OF EQUALS
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- - MERGING AMERICAN GENERAL HOSPITALITY
CORPORATION AND CAPSTAR HOTEL COMPANY
- - FORMING THE FIRST LODGING "PAPER CLIP"
REIT/C-CORP STRUCTURE
- - RESULT --
MERISTAR HOSPITALITY CORPORATION (REIT)
AND MERISTAR HOTELS & RESORTS, INC. (OpCo)
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
HIGHLIGHTS
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n $3.0 BILLION TOTAL MARKET CAP
n THIRD LARGEST HOTEL REIT
n SECOND LARGEST MANAGEMENT COMPANY
n UNIQUE PAPER CLIP STRUCTURE
n COMPLEMENTARY FULL-SERVICE HOTEL PORTFOLIOS
n MELDS HIGHLY EXPERIENCED MANAGEMENT TEAMS
n LARGE CONSOLIDATOR CAPABILITY
n ACCRETIVE TO BOTH COMPANIES' SHAREHOLDERS
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
MARCH 1998
MERGER OF EQUALS
n MERGING AMERICAN GENERAL HOSPITALITY
n FORMING THE FIRST LODGING "PAPER CLIP"
n MERISTAR HOSPITALITY CORPORATION (REIT) AND MERISTAR HOTELS & RESORTS, INC.
(OPCO)
COMBINED COMPANIES
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HOTELS NO. OF ROOMS
| | 110 OWNED 27,739
o 100 MANAGED AND/OR 16,238
LEASED
210 TOTAL 43,977
[MAP OF U.S.]
*HEADQUARTERS WILL BE
IN WASHINGTON, D.C.
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
[] STRUCTURE OF THE MERGER
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MERGED REIT
[LOGO] 2. MERGE [] 54 HOTELS (AGT)
AMERICAN REAL ESTATE [] 56 HOTELS (CHO)
GENERAL ---------
HOSPITALITY 110 TOTAL
CORPORATION
PAPER CLIPPED OPCO
[] 102 MERGED REIT LEASES
[LOGO] [] 100 THIRD PARTY
CAPSTAR HOTEL LEASES/MGMT.
COMPANY CONTRACTS
---------
202 TOTAL
1. SPIN OFF
OPERATING
COMPANY
3. ACQUIRE
LESSEE/MANAGER
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
STOCK CONVERSIONS
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1 SHARE 1 SHARE
CHO AGT
1 SHARE 1 SHARE 0.8475 SHARES
C-CORP MERGED
REIT
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
MERGER OF EQUALS
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
54 (12,801 ROOMS) OWNED HOTELS 56 (14,938 ROOMS)
15 *(2,934 ROOMS) MANAGEMENT CONTRACTS 40 (6,912 ROOMS)
- -- LEASES 45 (6,392 ROOMS)
$1.4 BILLION CURRENT MARKET CAP $1.7 BILLION
$1 BILLION RECENT ACQUISITIONS $1 BILLION
*AGHI MANAGED HOTELS
STRATEGIC RATIONALE FOR SHAREHOLDERS
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[] DOUBLES OWNED PORTFOLIO [] LOWER CAPITAL COSTS
[] SOURCE OF DEALS AND CONTRACTS [] GREATER PUBLIC FLOAT
[] COST SAVINGS [] MULTIPLE GROWTH OPPORTUNITIES
[] SIGNIFICANT OPERATING UPSIDE [] MARKETING SYNERGIES
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
[] STRONG PORTFOLIO PERFORMANCE
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NO. OF HOTELS
100 1997
80 8,196 ROOMS REVPAR
9.1%
60 1996 REVPAR 14,503 ROOMS REVPAR
9.6% 10.0%
40 3,858 ROOMS
20 5,166 ROOMS REVPAR
12.3%
0
AMERICAN GENERAL CAPSTAR
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
INTERNAL GROWTH - PRODUCT IMPROVEMENTS
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$ IN MILLIONS
160 $156.8
120 $54.0
$93.3 $102.8
80
$58.1
40 $32.8
$10.9 $35.2
$21.9
0
1996 1997 1998
[] AMERICAN GENERAL [] CAPSTAR
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
PAPER CLIP STRUCTURE HIGHLIGHTS
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[] TWO SEPARATELY TRADED PUBLIC COMPANIES
[] MERISTAR HOSPITALITY CORPORATION OWNS THE REAL ESTATE; MERISTAR HOTELS AND
RESORTS, INC. LEASES AND MANAGES HOTELS
[] OVERLAPPING BUT SEPARATE MANAGEMENT TEAMS AND BOARDS OF DIRECTORS
[] ALIGNS INTERESTS OF OWNERSHIP AND MANAGEMENT
-MOST EFFICIENT WAY TO OWN/OPERATE HOTELS
[] BENEFICIAL INTERCOMPANY AGREEMENT PROMOTES SHARED GROWTH
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
[]ORGANIZATIONAL STRUCTURE
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9 MEMBER 4 COMMON 9 MEMBER
BOARD OF DIRECTORS DIRECTORS BOARD OF DIRECTORS
STEVE JORNS STEVE JORNS
PAUL WHETSELL VICE CHAIRMAN VICE CHAIRMAN PAUL WHETSELL
CHAIRMAN & C.E.O. & C.O.O. & C.O.O. CHAIRMAN & C.E.O.
BRUCE WILES DAVID MCCASLIN
PRESIDENT & C.I.O. PRESIDENT
JOHN EMERY JIM CALDER
C.F.O. C.F.O.
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
[] STRATEGIC FRANCHISING
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PROFORMA
21.8%
[LOGO] INDEPENDENTS
WYNDHAM 6.2%
4.2% [LOGO]
HILTON *
OTHER 12.5%
BRANDS 4.2% [LOGO]
ITT SHERATON*
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EMBASSY
SUITES [LOGO] Radisson.
3.1% 8.3%
[PIE GRAPH]
MARRIOTT
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HOTELS RESORTS SUITES [LOGO] DoubleTree
11.5% HOLIDAY
INN 8.3%
10.4%
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WESTIN*
HOTELS & RESORTS CROWNE PLAZA
5.2%
4.2%
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
*INDICATES LARGEST FRANCHISE NATIONALLY
[] PROFORMA CAPITALIZATION
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MERISTAR HOSPITALITY MERISTAR HOTELS &
CORPORATION RESORTS, INC.
MARKET EQUITY MARKET EQUITY
$1.8 BILLION $100 MILLION
59% 61%
DEBT DEBT
$1.3 BILLION $65 MILLION
41% 39%
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
MERISTAR HOSPITALITY
CORPORATION
MERISTAR HOTELS &
RESORTS, INC.
NOTE: BASED ON CLOSING SHARE PRICES 3/13/98
COST SAVINGS
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[] LOWER CORPORATE OVERHEAD
[] IMPROVED PURCHASING POWER
[] REDUCED INSURANCE COST
[] LOWER COST OF CAPITAL
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
REIT GROWTH STRATEGIES
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[] ACQUIRE UNDER-PERFORMING, [] ENHANCE OPERATIONS
FULL-SERVICE, FIRST-CLASS HOTELS - STRENGTHEN MANAGEMENT
- REPOSITION
- LARGER, MORE UPSCALE, URBAN - REBRAND
PROPERTIES - PURCHASING POWER
- RESORTS - CROSS-MARKETING
- CONFERENCE CENTERS - REFURBISH
- LUXURY
[] ACQUISITION CANDIDATES
- PORTFOLIOS
- COMPANIES
- BRANDS
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
OPCO GROWTH STRATEGIES
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[] REIT MANAGEMENT CONTRACTS
[] THIRD PARTY MANAGEMENT CONTRACTS AND LEASES
[] RELATED COMPLEMENTARY BUSINESSES - E.G. TIMESHARE
[] STRATEGIC ALLIANCES
- WINSTON HOTELS
- PRIVATE CAPITAL GROUPS
[] IMPROVED PROPERTY RESULTS
- STRENGTHENED MANAGEMENT - REBRAND
- REFURBISH - PURCHASING POWER
- CROSS-MARKETING - REPOSITION
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION
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AMERICAN CAPSTAR HOTEL
GENERAL COMPANY
HOSPITALITY
CORPORATION