Humphrey Hospitality Trust, Inc. Files Lawsuit On Hotel Sale

26th Mar 1999

Humphrey Hospitality Trust, Inc. (Nasdaq/National Market: HUMP) today announced that on March 19, 1999, the Company filed an action in the Circuit Court of Wythe County, Virginia against Mr. Dhirubhai (Dick) Patel of Wytheville, VA and Ramesh Sanghani, Mahesh Sanghani, Ramnik Sanghani, Jerambhai Patel, and Kirin Patel of Wilksboro, NC.

The action seeks $500,000 in damages from the defendants as well as specific performance of a purchase contract related to the sale of the Company`s hotel located in Wytheville, VA, which the Company and the defendants entered into on December 30, 1998. The Company`s complaint alleges that the defendants refused to engage in settlement negotiations (as required in the contract) and breached their obligations under the contract to purchase the hotel. The claim also alleges that the defendant`s breach was committed purposefully, with malice, and constituted an improper, intentional and willful act intended to benefit the defendants` competing businesses to the Company`s detriment.

Humphrey Hospitality Trust, Inc. is a self-advised real estate investment trust headquartered in Silver Spring, Maryland, owning twenty-six hotels located in Maryland, Virginia, Delaware, Pennsylvania, Kentucky, North Carolina, West Virginia, Tennessee and Florida.

Certain matters within this press release are discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Law, and, if any, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. From time to time, these risks are discussed in the Company`s filings with the Securities and Exchange Commission.




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