Filed pursuant to Rule 425
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Filer: MeriStar Hotels & Resorts, Inc.
Subject Company: BridgeStreet Accommodations, Inc.
Subject Company Exchange Act File No. 000-22843
Investors and security holders are urged to read the proxy statement/prospectus
regarding the business combination transaction referenced in the following
information, when it becomes available, which will be included in the
Registration Statement on Form S-4 to be filed by MeriStar Hotels & Resorts,
Inc. with the information. After it is filed with the SEC, investors and
security holders may obtain a free copy of the proxy statement/prospectus on the
SEC's website (www.sec.gov) or upon request from MeriStar's office of investor
relations by directing such request to: MeriStar Hotels & Resorts, Inc., 1010
Wisconsin Avenue, Washington, DC 20007, Attention: Corporate Communications
Department, tel.: (202) 295-2228.
In addition, the identity of the people who, under SEC rules, may be considered
"participants in the solicitation" of Meristar shareholders in connection with
the proposed merger, and a description of their ownership interests in
MeriStar Hotels & Resorts, Inc., is available in an SEC filing under Schedule
14A made by BridgeStreet Accommodations, Inc. on March 24, 2000 and available on
the SEC's website (www.sec.gov).
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MeriStar Hotels & Resorts To Acquire BridgeStreet Accommodations
WASHINGTON, D.C., March 24, 2000--MeriStar Hotels & Resorts (NYSE: MMH)
the nation's largest independent management company, today announced that it has
agreed to acquire all of the outstanding shares of BridgeStreet Accommodations,
Inc. (AMEX: BDS), a leading provider of flexible accommodation services in major
domestic and international metropolitan markets, for $1.50 cash plus 0.5 shares
of MeriStar common stock for each outstanding share of BridgeStreet. Based on
MeriStar's current stock price, total consideration would represent
approximately $3 per share.
The $35 million projected cost of the transaction includes $24 million for
the 8 million outstanding BridgeStreet shares and $11 million to retire
BridgeStreet's existing debt. MeriStar expects the transaction to be accretive
to earnings per share in 2000 and in 2001.
BridgeStreet Accommodations offers upscale, furnished apartments,
townhouses and condominiums as an alternative to traditional hotel rooms
primarily for business travelers and relocating corporate executives who need
lodging for several nights or several months. The company currently has
approximately 3,700 apartments in 26 cities in the U.S., Canada and the United
Kingdom. Average occupancy for leased units is approximately 90 percent, and
average length of stay is 30 to 45 days.
"The BridgeStreet acquisition is part of our long-term strategy to extend
our capabilities to related areas of the hospitality and leisure industries,
including golf, timeshare and now corporate housing," said Paul W. Whetsell,
chairman and CEO of MeriStar Hotels & Resorts. "With this acquisition, MeriStar
becomes a leading player in the $3 billion corporate housing industry. The
addition of the BridgeStreet brand will enable us to leverage our existing
properties and national marketing infrastructure by cross-marketing our lodging
and corporate housing products to national corporate clients."
Whetsell noted that the BridgeStreet transaction also gives MeriStar a
foothold in London and potential entry into other European markets.
"BridgeStreet has 360 existing units in London and has plans to expand into
France and Spain.
"BridgeStreet is an established brand name in a market with very
attractive customer demographics, which provides incremental opportunity to
enhance consumer awareness of MeriStar and our Doral brand," Whetsell stated.
Whetsell added that the blend of equity and debt used for the transaction
will leave MeriStar well-balanced, liquid and positioned for additional growth.
"Following completion of the transaction, we expect total debt to EBITDA to
remain under 2.5 times."
MeriStar Hotels & Resorts operates 235 hospitality and leisure properties
with more than 46,000 rooms and 10 golf courses in 34 states, the District of
Columbia, Canada, Puerto Rico and the U.S. Virgin Islands.
For more information about MeriStar Hotels & Resorts, visit the company's
web site: www.meristar.com. For information about BridgeStreet Accommodations,
visit www.bridgestreet.com.
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This press release contains forward-looking statements about MeriStar
Hotels & Resorts, Inc., including those statements regarding future operating
results and the timing and composition of revenues, among others. Except for
historical information, the matters discussed in this press release are
forward-looking statements that are subject to certain risks and uncertainties
that could cause the actual results to differ materially, including the
following: the ability of the company to successfully implement its acquisition
strategy and operating strategy; the company's ability to manage rapid
expansion; changes in economic cycles; competition from other hospitality
companies; and changes in the laws and government regulations applicable to the
company.
INVESTOR NOTICE
Investors are urged to read the proxy statement/prospectus, which will be
included in the Registration Statement on Form S-4 to be filed with the
Securities and Exchange Commission in connection with the proposed merger
because it will contain important information. After it is filed with the SEC,
the proxy statement/prospectus will be available free of charge on the SEC's
website (www.sec.gov) and from BridgeStreet's office of investor relations.
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