HPT Announces New Management and New Brand for 15 Extended Stay Hotels

September 18, 2003

Newton, MA (September 18, 2003): Hospitality Properties Trust (NYSE: HPT) today announced that it has entered an agreement with InterContinental Hotels Group (LSE/NYSE: IHG) for management and re-branding of 15 extended stay hotels.

The 15 hotels contain 1,822 one and two bedroom suites (total 2,757 bedrooms). All of the suites have full kitchens and combination living room, dining room and work areas. These hotels are located in eight states: California (5), Florida (2), Georgia (2), Illinois (1), Missouri (1), New Jersey (2), Pennsylvania (1) and Virginia (1).

All 15 of the hotels affected by today's announcement are currently operated as "Summerfield Suites by Wyndham." On April 1, 2003, Wyndham International, Inc. (AMEX: WBR) defaulted its rent due HPT. On April 28, 2003, HPT assigned interim management of these hotels to Candlewood Hotel Company. Under the agreement announced today, 14 of the 15 hotels will be branded as "Staybridge Suites" hotels. "Staybridge Suites" is a trademark brand of IHG. One hotel may be branded under a different IHG trademark or sold.

The management agreement between HPT and IHG will have many of the features typical of HPT leases and management contracts. HPT will receive an Owner's Priority return of $1,666,667/month ($20 million/year). IHG will provide a $20 million security deposit to secure the Owner's Priority payment and payment of HPT's Owner's Priority is supported by a limited guaranty from IHG. As part of its agreement with IHG, HPT has agreed to fund $20 million for deferred maintenance and rebranding costs; and thereafter a capital expenditure reserve escrow equal to 5% of the hotels' gross sales will be required. HPT may also provide increased property maintenance capital, if required, in return for an increase in its Owner's Priority. The management contract for these 15 hotels will be combined with the existing contract for 16 Staybridge Suites hotels now owned by HPT and managed by IHG, with cross defaults and other combination features. The term of this combination agreement for 31 hotels expires in 2023, and IHG has extension options totaling 25 years thereafter.

The transition of the 15 hotels to the Staybridge Suites brand and to IHG management is expected to occur during October 2003.

Hospitality Properties Trust is a real estate investment trust headquartered in Newton, MA which owns 274 hotels located throughout the United States.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT'S CURRENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE, THIS PRESS RELEASE IMPLIES THAT THE $20 MILLION SECURITY DEPOSIT PAID BY IHG TO HPT AND THE IHG LIMITED GUARANTY WILL ENSURE THAT HPT RECEIVES AN OWNER'S PRIORITY OF $1,666,667/ MONTH ($20 MILLION/YEAR). HOWEVER, WYNDHAM WAS UNABLE OR UNWILLING TO PAY ITS RENT OBLIGATIONS FOR THESE HOTELS AND IT MAY BE THAT IHG WILL BE UNABLE OR UNWILLING TO PAY HPT'S OWNER'S PRIORITY RETURN. ALSO, THIS PRESS RELEASE STATES THAT ONE HOTEL MAY BE REBRANDED OR SOLD AND THAT HPT WILL FUND $20 MILLION FOR CAPITAL EXPENDITURES. IT MAY BE THAT THE ONE HOTEL CAN NOT BE REBRANDED BECAUSE OF NON COMPETITION RESTRICTIONS, THAT THE ONE HOTEL CAN NOT BE SOLD AT A REASONABLE PRICE OR ANY PRICE, OR THAT THE COST OF REQUIRED CAPITAL EXPENDITURES WILL EXCEED BUDGETED AMOUNTS. SIMILARLY, THE TRANSITION OF THESE HOTELS TO IHG MANAGEMENT AND THE COMMENCEMENT OF IHG'S OBLIGATION TO PAY HPT'S OWNER'S PRIORITY RETURN MAY BE DELAYED BEYOND OCTOBER 2003. FORWARD LOOKING STATEMENTS MAY NOT OCCUR FOR MANY DIFFERING REASONS, SOME OF WHICH ARE BEYOND HPT'S CONTROL. FOR EXAMPLE, WEAKNESS IN THE ECONOMY GENERALLY MAY CAUSE WEAK FINANCIAL RESULTS AT HPT'S OWNED HOTELS AND A CHANGE IN THE FINANCIAL CONDITION OF IHG COULD MAKE IT UNABLE TO MEET ITS GUARANTEE OBLIGATIONS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

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