Carlson Reach HPT Deal

Carlson Hotels Worldwide today
announced that it is has reached an agreement with Hospitality Properties
Trust, a major hotel industry real estate investment trust,
to take over management of 12 hotels currently operating under the Prime
hotel brand. The company says the agreement also calls for the properties
to convert to Carlson hotel brands over the next 90 days. The new
properties will expand Carlson’s managed hotel portfolio by 66 percent. “This agreement allows us to substantially expand our portfolio of managed
hotels, demonstrating a strategic commitment to management leadership as
we develop our brands,” said Jay Witzel, president and CEO of Carlson
Hotels Worldwide. “Our managed hotels are historically among our top
performers and provide exemplary guest experiences which define our
brands.”

Carlson will immediately assume management responsibilities of the
properties to begin assimilating the hotels into its portfolio in order to
maximize market opportunities and brand growth.

Of the 12 hotels, four will convert to the Radisson brand, three will
change to the Park Plaza brand and five will become Country Inns & Suites
By Carlson. Some brand conversions will take place immediately with all
conversions expected to be completed by July 2005.

The hotels included in this agreement are located in the following cities
and will be converted to the brands as indicated below:

  RADISSON HOTELS & RESORTS
  Nashville Airport, Tenn. - 1112 Airport Center Drive
  Phoenix Airport, Ariz. - 427 North 44th St.
  Salt Lake City, Utah - 215 West South Tempe
  Seattle/Tacoma, Wash. - 18118 Pacific Highway South

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  PARK PLAZA
  Minneapolis/Bloomington, Minn. - 4460 W. 78th St. Circle
  Phoenix/Chandler, Ariz. - 7475 W. Chandler Blvd.
  North Phoenix, Ariz. - 2641 W. Union Hills Drive


  COUNTRY INNS & SUITES
  Atlanta, Ga. - 800 Hammond Drive NE
  Chicago/Naperville, Ill. - 1837 Center Point Circle
  San Diego/Sorrento, Calif. - 5975 Lusk Boulevard
  Seattle/Bothell, Wash. - 19333 North Creek Parkway
  Sunnyvale, Calif. - 1300 Chesapeake Terrace


As part of the new brand conversions, the hotels will receive new capital
investment of up to $37 million in renovations with each hotel undergoing
$1 to $4 million in renovations. All renovations are expected to be
completed by the end of the first quarter of 2006.

The properties are also expected to benefit from Carlson’s award-winning
Curtis-C reservations system, other business distribution systems and
collaboration with Carlson Wagonlit Travel and related Carlson companies.

Sam Winterbottom, executive vice president of development for Carlson
Hotels Worldwide, said the agreement represents a significant growth in
key markets for Carlson’s hotel brands. “Each year we identify top markets
where our branded hotels need to be in order to be represented in key
markets where customer demand is growing rapidly. For Country Inns &
Suites this brings significant growth on the West Coast by adding
properties in San Diego and Sunnyvale, Calif., as well as suburban
Seattle. The Park Plaza portfolio gains three great properties, and our
Radisson brand adds key airport markets in Nashville, Phoenix and
Seattle-Tacoma, as well as a terrific downtown convention hotel in Salt
Lake City.”
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