News Release

WestCoast Hospitality Corporation Announces New Management And Franchise Agreement

May 18, 2000 at 12:00 AM EDT
WestCoast Hospitality Corporation Announces New Management And Franchise Agreement >SPOKANE, WA – WestCoast Hospitality Corporation (NYSE:WEH) today announced a management and franchise agreement for a 100 room full-service hotel in Bozeman, Montana. The hotel, which will be positioned as the most upscale property in the city, will contain 4,000 square feet of meeting space as well as amenities including indoor swimming pool and fitness center. The WestCoast Bozeman Hotel begins construction this year, with a scheduled opening in July 2001.

Bozeman, Montana, gateway to Yellowstone Park and the home of Montana State University, is located in central Montana, along Interstate 90, and offers a convenient location for business and leisure travelers alike. Various recreational opportunities in the area include skiing, hunting, rafting, hiking, fishing, camping, and mountain climbing. World-class fly fishing rivers within minutes of the city include the Gallatin, Madison and Yellowstone Rivers, all having headwaters in Yellowstone National Park to the South. Yellowstone National Park can be accessed from Bozeman via Main Street, which runs past the front of the WestCoast Bozeman Hotel site. Yellowstone receives approximately three million visitors per year and is open year-round. Bozeman is serviced by Gallatin Field, now the second busiest airport in the state of Montana, with airlines including Horizon Air, Northwest Airlines, Delta and Skywest. WestCoast Hotels is a travel partner with Horizon Air.

“WestCoast brings certain strengths that we did not find in other brands,” said Bill Martel, an owner of the WestCoast Bozeman Hotel. “Their combination of penetration into larger cities such as Seattle, Portland and Salt Lake City and smaller cities including Kalispell and Helena, Montana and Idaho Falls, Idaho is unique, and offers our hotel a broader feeder system to attract customers.”

WestCoast Hospitality Corporation, formerly Cavanaughs Hospitality Corporation, currently owns three hotels in Montana, and the addition of a fourth hotel in Bozeman will better enable the hotel chain to move meeting and association business around the state. “Many businesses and organizations want to be able to plan their travel to multiple cities through a single contact,” explained Thomas Barbieri, Executive Vice President, Hotel Operations for WestCoast Hospitality Corporation. “With a new hotel in Bozeman, our sales agents are better equipped to provide a comprehensive solution to travelers. We believe our penetration into the secondary markets of Washington, Idaho and Montana will be very beneficial in attracting business to the Bozeman property. The dynamic growth in the Bozeman community over the last number of years will also help ensure the success of the project.”

WestCoast Hospitality Corporation serves the western United States with 46 hotels containing 8,766 hotel rooms, in 9 states. In July 2000, Cavanaughs Hotels will be re-branded to WestCoast Hotels. WestCoast provides entertainment services through TicketsWest.comTM, which encompasses computerized ticketing operations in Washington, Oregon, Idaho, Montana and Colorado, and aggregates content for travel and entertainment that is sold in real-time at its website. TicketsWest.comTM also includes WestCoast Entertainment, formerly Cavanaughs Entertainment, a Broadway and special event presenting company. G&B Real Estate Services is the real estate division of WestCoast Hospitality Corporation and owns 590,000 square feet of commercial real estate and manages 3.4 million square feet of Company and third party owned commercial real estate, and 2,000 units of third party owned apartment and condominium properties.

This release contains forward looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including those concerning the future products and activities of the Company. Investors are cautioned that all forward looking statements involve risks and uncertainties, including without limitation, risks relating to the operation of hotels, the availability of capital to finance growth, disruptions in service due to construction, the historical cyclicality of the lodging industry, the integration of acquisitions, including WestCoast Hotels, the early development stage of the Company's TicketsWest.comTM product and its dependence on increased ticket sales, the unpredictability and potential fluctuations in future revenues and operating results, as well as the other matters discussed under the headings “business” and “risk factors” in the Company’s annual report on Form 10K for the 1999 fiscal year and other matters disclosed in the documents filed by the Company with the Securities and Exchange Commission. The Company's actual results could differ materially from these statements. SOURCE: WestCoast Hospitality Corporation ("Company").