Highland Hospitality Corporation to Acquire Sheraton Annapolis Hotel

MCLEAN, Va. -- Highland Hospitality Corporation, a lodging real estate investment trust, or REIT, announced the signing of a definitive agreement to acquire the 197-room Sheraton Annapolis hotel. The purchase price for the hotel is $18.0 million, or approximately $91,400 per room.

James L. Francis, Highland's President and CEO, stated, "We are very excited about our planned acquisition of the Sheraton Annapolis hotel. We believe this hotel will generate immediate strong returns for our shareholders and we will further enhance the quality of this asset with a renovation of its guestrooms, lobby, meeting rooms, restaurant and other common areas."

Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments primarily in the United States. The company currently owns 17 hotel properties with an aggregate of 4,952 rooms in ten states. Additional information can be found on the company's website at www.highlandhospitality.com

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such forward- looking statements include, but are not limited to, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Highland Hospitality Corporation's control. The company undertakes no obligation to publicly release the result of any revisions to these forward- looking statements that may be made to reflect any future events or circumstances.