Extended Stay Hotels(SM) Purchases 16 Sierra Suites(R) Hotels and Launches New Brand

Hotels Will Be Re-Flagged Extended Stay Deluxe(SM)

SPARTANBURG, S.C., May 12 /PRNewswire/ — HVM L.L.C., the operator of Extended Stay Hotels, announced today the acquisition of 16 Sierra Suites(R) Hotels. The properties will immediately be re-flagged Extended Stay Deluxe(SM), a new brand from Extended Stay Hotels. The Sierra Suites Hotels included in the purchase are located in Phoenix; Pleasanton and San Jose, Calif.; Orlando, Fla.; Atlanta; Boston; Piscataway, N.J.; Washington; and Seattle.

The 16 new Extended Stay Deluxe hotels offer enhanced amenities such as larger, more upscale rooms, interior corridors, and expanded in-room TV packages, as well as fully equipped kitchens and guestroom workspaces with wireless Internet access and personalized voicemail. The majority of Extended Stay Deluxe properties also offer amenities such as swimming pools or spas and exercise rooms. Average daily rates at Extended Stay Deluxe hotels start at $59.99 and vary by market.

There are currently 21 Extended Stay Deluxe properties throughout the United States. HVM L.L.C. plans continued expansion of the Extended Stay Deluxe brand throughout 2005, primarily through conversion of existing StudioPLUS hotels and 30 former Wellesley Inn and Suites hotels acquired in October 2004.

“We are delighted to add 16 hotels into the Extended Stay Hotels collection and launch our newest brand, Extended Stay Deluxe,” said Gary A. DeLapp, President and Chief Executive Officer, HVM L.L.C. “With this acquisition, we now offer guests an upgraded mid-scale product as part of our portfolio of 670 hotels and more than 74,500 rooms. We plan to grow the Extended Stay Deluxe brand aggressively throughout the rest of this year toward our goal of 100 locations by the end of 2005. Response to all our extended-stay brands has been very favorable, and we anticipate continued growth to further reinforce our position as the leader in the long-term stay category.”

Extended Stay Hotels has emerged as the category leader with the largest distribution of extended-stay properties in the United States. The company currently owns and operates 670 hotels, offering more than 74,500 rooms nationwide under the following brands: Extended Stay America(R), Homestead Studio Suites Hotels(R), StudioPLUS Deluxe Studios(R), Crossland Economy Studios(R) properties and the new Extended Stay Deluxe. The hotels in the collection are designed to provide services and facilities that accommodate the needs of both long-term business travelers and value-conscious consumers who are relocating or renovating. Amenities include fully equipped kitchens, wireless high-speed Internet access and on-site guest laundry facilities.

“We are sad to say good-bye to these 16 terrific hotels and especially the talented teams who will, by and large, remain with those hotels to continue serving valued guests,” said B. Anthony (Tony) Isaac, President of LodgeWorks, Sierra Suites Hotels’ parent company. “At the same time, it was important to clearly define our portfolio moving forward. Our focus is on developing and growing our next-generation hotel product into a lifestyle brand that is desired by the upscale consumer.”

The five hotels that remain in the Sierra Suites Hotels collection were designed as flagship locations for the brand’s next-generation launch. With smart, upscale design and service, these hotels signal a major shift for the brand and a fresh suite option for travelers. The properties are located in Atlanta-Alpharetta, Ga.; Branchburg and Parsippany, N.J.; and San Ramon and Santa Clara, Calif. LodgeWorks plans to accelerate the growth of this brand, with development plans calling for 2006/2007 openings in downtown Napa, Calif.; Dulles Airport-Sterling, Va.; Fishkill, N.Y.; Savannah-Historic District, Ga.; Long Beach at the Pike at Rainbow Harbor, Calif.; and Seattle-Bellevue, Wash. For more information, visit www.sierrasuites.com or call 800-4-SIERRA.

About Extended Stay Hotels

HVM L.L.C., the operator of Extended Stay Hotels, is headquartered in Spartanburg, S.C. The company operates more than 670 extended stay lodging hotels in 43 states, including Extended Stay America(R), Homestead Studio Suites Hotels(R), StudioPLUS Deluxe Studios(R), Crossland Economy Studios(R) properties and the new brand, Extended Stay Deluxe(SM). For more information about Extended Stay Hotels, visit ExtendedStayHotels.com or call 1-800-EXT-STAY.

About Sierra Suites Hotels

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