CapStar Hotel Company
Ticker: CHO 1010 Wisconsin Avenue, N.W.
Exchange: New York Stock Exchange Washington, District of Columbia 20007
Industry: Service (202) 965-4455

Type of Shares:Common Shares Filing Date:6/21/96
U.S. Shares:7,400,000 Offer Date:8/20/96
Non-U.S. Shares:1,850,000 Filing Range:$17.00 - $20.00
Primary Shares:6,750,000 Offer Price:$18.00
Secondary Shares:2,500,000 Gross Spread:$1.17
Offering Amount: $171,125,000 Selling:$0.71
Expenses:$2,569,500 Reallowance:$0.10
Shares Out After:12,754,321

ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 640-6129
Goldman, Sachs & Co.Co-manager (212) 902-1172
Merrill Lynch & Co.Co-manager (212) 449-4600
Smith Barney Inc.Co-manager (718) 921-8473

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$26.36$10.71$1.78Assets:$205.59
Net Income:-$0.66-$0.64$0.10Liabilities:$140.71
EPS:Equity:$64.88

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a hotel investment and management company which acquires, owns renovates, repositions and manages hotels throughout the United States. The company owns 12 upscale, full-service hotels which contain 3,516 rooms. Including the Owned Hotels, the company manages 48 hotels with 8,849 rooms. Each of the Owned Hotels is located in a market which has recently experienced strong economic growth, including Atlanta, Charlotte, Chicago, Cleveland, Dallas, Los Angeles, Salt Lake Cit, Seattle and Washington, D.C. The Owned Hotels include hotels operated under nationally recognized brand names such as Hilton(R), Sheraton(R), Westin(r), Marriott(R), Holiday Inn(r) and Radisson(R), and one hotel operated under an independent brand name. As a fully integrated owner and manager, the company intends to capitalize on its management experience and expertise by continuing to make opportunistic acquisitions of full-service hotels, securing additional management contracts and improving the operating performance of the Hotels.

Use of Proceeds
The proceeds from the proposed offering will be used to repay debt owed to Lehman Bros Holdings.

Last updated: 10/28/96

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