Hyatt Corporation Will Purchase the 143-unit AmeriSuites
Chain from Affiliates of The Blackstone Group;
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Plans to Invest $150 million to Create New Brand
Headed by Jim Abrahamson and Mike Leven

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CHICAGO - Dec. 9, 2004 -- Hyatt Corporation, the worldwide hotel management and real estate development company, announced today that it will purchase the 143-unit AmeriSuites hotel chain from affiliates of The Blackstone Group....

AmeriSuites is a leading all-suite, upscale limited service hotel brand. Hyatt's acquisition of AmeriSuites will enable it to ultimately create a new Hyatt brand that is fully distinguishable from its existing portfolio of 214 upper upscale and luxury hotels in 43 countries around the world. According to Pritzker, it is Hyatt's intention that the AmeriSuites chain will become the upscale limited service leader in performance and profitability by means of new segment-appropriate product and service standards.

"A primary objective of the Global Hyatt process is to better utilize the power of the Hyatt brand, infrastructure, distribution network and talents of our people more intensively to increase earnings growth without compromising the value of our brand," Pritzker said. "The addition of this leading, upscale limited service entity will enable us to create a new brand extension that will benefit the Hyatt brand and the owners and customers of our existing hotels, as well as the owners, franchisees and customers of AmeriSuites...."

Following its acquisition of AmeriSuites, Hyatt plans to invest more than $150 million in capital expenditures and related brand and marketing innovations that will translate appropriate elements of "the Hyatt Touch" into the upscale limited service arena. The new brand will be created following completion of that program....

According to Geoga, the addition of the AmeriSuites product will also extend Hyatt's distribution, leading to improved customer loyalty and greater breadth of the company's Gold Passport frequency program, and allow Hyatt's global sales force to sell more effectively by offering accommodations at multiple tiers of the market and increasing the number of destinations that Hyatt serves.

"Growth potential in the upscale limited service category is significant both in the U.S. and internationally," said Steve Goldman, Hyatt's executive vice president of acquisitions and development, who will also serve in that capacity for Global Hyatt. "Hyatt will analyze opportunities for expanding the new brand in strategic markets around the world."

A senior management team led by industry veterans Jim Abrahamson and Mike Leven will effectuate the AmeriSuites strategy for Hyatt.

"This team will build on the strength of Hyatt's management depth and experience and the strong management capabilities of the existing AmeriSuites organization," Geoga said.

Abrahamson will be responsible for all aspects of the AmeriSuites business. Before joining Hyatt, he was president of Baymont Inns and Woodfield Suites, and also spent 13 years with Hilton in its franchising, development and operating groups. Among his other responsibilities at Hilton, Abrahamson led the creation, development, implementation and franchising of Hilton Garden Inns.

Leven is founder, CEO and president of U.S. Franchise Systems (USFS), a Hyatt subsidiary with nearly 500 hotel franchises currently open or under construction. Leven, who has become an industry icon during his 44-year hospitality career, previously served as president and chief operating officer of Holiday Inn Worldwide and as president of Days Inn of America. The capabilities of Leven and his USFS team will be used by Hyatt to assure the provision of high quality franchise services to AmeriSuites franchisees.

It is anticipated that by second quarter 2005, AmeriSuites customers will be able to participate in Hyatt's Gold Passport loyalty program through their stays at AmeriSuites. Until then, they will continue to participate in the Prime Rewards program....


U.S. Franchise Systems, a Hyatt subsidiary, includes among its franchised brands Hawthorn Suites hotels which serve the mid-scale and upscale extended stay market. Other USFS brands include Microtel Inns & Suites and America's Best Inns & Suites. Currently, there are nearly 500 USFS franchise hotels open or under construction.

-- Innovations such as the new Grand Bed are being incorporated into hotel renovations. For example, the company-owned Grand Hyatt New York -- a 1311-room landmark property at Grand Central Station, recently completed a $60 million renovation which included the formal debut of Hyatt's new Grand Bed.

-- Following a successful pilot phase of supplementing traditional face-to-face check-in with automated, self-service check-in kiosks, Hyatt plans to extend the service to all US hotels by the end of 2005 and will be the first hotel company to do so.

-- Hyatt recently announced an industry-leading partnership with T-Mobile, giving guests wireless access in most Hyatt hotels in the United States in 2004. Hyatt will offer high-speed wireless access in the USA chain-wide in 2005.

-- Hyatt's market visibility is being raised worldwide through the company's new television brand advertising campaign and the new worldwide identity program recently introduced for the Gold Passport loyalty program. Hyatt has significantly increased its marketing expenditures, launching its first major television advertising campaign in over a decade. The $20 million campaign made its US debut in October, followed by an international launch in late November of this year. The campaign is scheduled to continue throughout 2005 on television and in print....

-- Hyatt currently has 27 hotels (8000 rooms) under development in 15 countries. Projects are presently slated for development or are under construction in destinations including Seoul, Hong Kong, Shanghai, Saigon, Dubai, St. Petersburg, Buenos Aires, Cairo, Marbela (Spain), Miami, Dallas and Denver.

-- Hyatt is fast becoming one of the largest hotel operators in China, with new projects underway in Beijing (both Park Hyatt and Hyatt Regency), Guangdong, Guangzhou, Hangzhou, Macau, Nanjing, Ningbo, Hainan Island and Shanghai.

-- As one of the largest destination spa operators in the world, Hyatt's prestigious portfolio includes such world-renowned spas as Plateau at the Grand Hyatt Hong Kong, Stillwater Spa at Park Hyatt Toronto, Anara Spa at Hyatt Regency Kauai Resort & Spa, Nagomi Spa at Grand Hyatt Tokyo and Spa La Manga Club at Hyatt Regency La Manga (Murcia, Spain). Six new spas are due to open in 2005, including a new spa at Hyatt Regency Scottsdale Resort at Gainey Ranch.