Concord Hospitality to Form Private Equity Fund

Continues to Aggressively Expand Development, Third-party Management in Upper
Upscale and Premium-branded Segments

RALEIGH-DURHAM, N.C., Oct. 5 /PRNewswire/ -- Concord Hospitality Enterprises,
one of the nation's top-ranked hotel developer/owner/operators, today
announced that it has entered the initial stage of forming a $300 million
discretionary private equity fund. The fund, which will focus on acquiring
distressed hotels and debt, is expected to close within the next 90 days.

Additionally, the company said it continues to aggressively expand its
development and third-party management growth. Year-to-date, Concord has
developed and opened 9 properties and entered into one joint venture
partnership. The company expects to open or sign management contracts for at
least three additional properties by year end.

"In 2007, we sold a 19-hotel portfolio that gave our investor partners and us
more than $500 million to expand and enhance our portfolio," said Mark G.
Laport, president and CEO of Concord Hospitality. "During the course of the
last two years, we've leveraged that capital to develop 16 new hotels, of
which 13 are open with the remainder scheduled to open later this year and in
2010.

"The fund will allow us to continue our plan to double the size of our
portfolio within the next few years, despite the recession," he said. "We
believe there will be attractive acquisition opportunities for both hotels and
hotel debt, and we expect to be a significant player in those markets."

Laport noted that the company also has dramatically expanded its third-party
management and today operates more than 30 properties, or about half of its
portfolio, for other owners. "We are expanding into the Southwest, Southeast
and Mid-Atlantic regions, as well as Canada," he commented. "We also now are
quite active in the upper upscale and resort segments. Our portfolio is now
in more than 14 states and two Canadian provinces, and includes branded
properties as well as independent hotels and resorts. This geographic, brand
and segment diversification gives us greater strength and stability in all
phases of the economic cycle."

Concord recently signed management contracts for the independent 88-room Ocean
Sands resort in Pompano Beach, Fla., the company's first foray into the resort
sector, and a Starwood property in Houston, which is the company's first
Starwood Hotels & Resorts flag. Concord has been an approved Starwood
management company for two years. It is also approved to operate Marriott,
Hilton, Choice, Hyatt and Intercontinental Hotels.

"The Ocean Sands and the Brook Hollow are both key additions for Concord,"
said Grant L. Sabroff, Concord's senior vice president of business
development. "We're diversifying our portfolio to apply our expertise to new
brands and segments. These properties will further demonstrate the breadth
and depth of our expertise."

Concord's 2009 growth-to-date includes:
-- 382-room Starwood property, Houston -- management contract, effective
October 1
-- 135-room Courtyard by Marriott Reading, Pa. -- own and operate, opened
in September
-- 132-suite Residence Inn by Marriott San Antonio Northeast -- own and
operate, opened in September
-- 124-room Courtyard by Marriott San Antonio Northeast -- own and
operate
,opened in September
-- 108-room Fairfield Inn & Suites by Marriott in Cumberland, Md. -- own
and operate, opened in August
-- 88-room Ocean Sands Resort, Pompano Beach, Fla. -- joint venture
partnership and management contract, acquired in August. Currently
undergoing a $5 million renovation.
-- 121-suite Springhill Suites by Marriott, Webster, Texas -- own and
operate, opened in June
-- 132-room Hilton Garden Inn Arlington, Texas -- own and operate, opened
in June
-- 104-room Residence Inn by Marriott at the Colony, Dallas, Texas --
management contract, opened in June, owned and developed by
Jackson-Shaw
-- 104-room Fairfield Inn & Suites at the Colony, Dallas, Texas --
management contract, opened in June, owned and developed by
Jackson-Shaw

-- 120-room Courtyard by Marriott Hamilton, Ohio -- own and operate,
re-opened in March after 15-month, $12.5 million renovation

Currently under construction:
-- 156-suite Springhill Suites Houston Intercontinental Airport, Houston,
Texas Suites by Marriott -- to open in early November.
-- 110-suite Springhill Suites by Marriott, Bakery Square, Pittsburgh --
secured $12.5 million loan, to open in 2010
-- 124-room Courtyard by Marriott Settler's Ridge, Pittsburgh - secured
$13.4 million loan, to open 2010

-- 124-room Courtyard by Marriott, Meadow Lands, Pittsburgh -- secured
$10.8 million loan, to open in 2010.

About Concord Hospitality
Concord Hospitality Enterprises Company, an award-winning hotel management and
development company based in Raleigh-Durham, N.C., manages 57 hotels with more
than 7,000 guest rooms in 14 states and two Canadian providences. The company
operates under such well-known industry elite brands as Marriott, Hilton, and
Choice Hotels, is an approved franchisee for Hyatt and Starwood, and also
operates an independent boutique hotel. Formed in 1985, Concord was recently
listed as one of the top management companies in the nation by independent
sources, and recently won Marriott's elite Partnership Circle award for the
sixth time. Concord properties are some of the most awarded hotels in the
country, having won nearly 30 honors in the past two years alone, including
Marriott's Hotel of the Year and Developer of the Year awards. For more
information, visit http://www.concordhotels.com/.

Contact: Melanie Boyer, Jerry Daly
(703) 435-6293

SOURCE Concord Hospitality Enterprises

Melanie Boyer or Jerry Daly, both for Concord Hospitality Enterprises,
+1-703-435-6293