Highland Hospitality Announces Pricing

Highland Hospitality Corporation today announced the pricing of an initial
public offering of 30,000,000 shares of its common stock at $10.00 per
share, all of which were offered by Highland Hospitality. The shares will
trade on the New York Stock Exchange under the symbol “HIH.” In addition,
Highland Hospitality has agreed to sell approximately 4,550,000 shares of
common stock through private issuances. Friedman, Billings, Ramsey & Co.,
Inc. acted as the sole book-running manager, with Deutsche Bank Securities
Inc. acting as co-lead manager and Raymond James & Associates, Inc. as a
co-manager of the public offering. Highland Hospitality has agreed to sell
up to an additional 4,500,000 common shares to the underwriters to cover
over-allotments, if any.

Total gross proceeds from the offering and private issuances of
approximately $342.3 million will be used principally to fund the
acquisition of seven initial hotel properties, fund the renovations for
two of the initial properties, fund future lodging-related investments and
for general corporate and working capital purposes.

Highland Hospitality is a self-administered real estate investment trust
focused primarily on investing in the United States within the upscale
full- service and premium limited-service and extended stay lodging
segments. Over time, Highland Hospitality may also pursue investment
opportunities in certain lodging segments outside of the United States.

The registration statement relating to the initial public offering of
common stock has been declared effective by the Securities and Exchange
Commission. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of such
common stock in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities
laws of any such state. The offering of these securities will be made only
by means of a prospectus, copies of which may be obtained from Friedman,
Billings, Ramsey & Co., Inc., 1001 19th Street North, Arlington, Virginia,

The shares of common stock that Highland Hospitality has agreed to sell
through private issuances have not been registered under the Securities
Act of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.