BETHESDA, Md., Crestline Capital Corporation CLJ announced its participation in the development and management of the 300-room Sugar Land Marriott Town Square and adjacent Sugar Land Conference Center now under construction in Sugar Land, Texas, an upscale community located 20 miles southwest of downtown Houston. Crestline will own the majority equity interest in the project and operate the hotel through its subsidiary, Crestline Hotels & Resorts.

The project is being developed as a public-private partnership between Crestline, Stormont Hospitality Group, L.L.C. of Atlanta, and the Sugar Land Town Square Development Authority, a local government corporation of the City of Sugar Land. Southwest Bank of Texas and Regent Partners of Atlanta are the lenders for the project. Completion is planned for the fall of 2003.

The property will be the first full-service hotel in Fort Bend County, and will serve as the centerpiece of a new $200 million mixed-use town center, Sugar Land Town Square, located at the intersection of US 59 and Highway 6 in Sugar Land, the fastest growing among Texas' top 45 cities.

The hotel's 300 guestrooms and suites will be within a nine-story building, and will be supported by a two-story conference center with 25,500 square feet of net meeting space. The project will feature a 15,500 square- foot ballroom, eight additional meeting and breakout rooms, a business center, an executive boardroom, 184-seat restaurant and lounge, gourmet coffee shop and a fitness facility. As part of the Sugar Land Town Square development, the hotel will be immediately adjacent to future retail and restaurant offerings.

Bruce Wardinski, Chairman of the Board, President and Chief Executive Officer of Crestline Capital, stated, "We are very pleased to announce our participation in this outstanding project. The Sugar Land Marriott Town Square illustrates our ability to work with public-private partners and the addition of this management contract solidifies our presence in conference center management."

About the company

Crestline Capital Corporation is the parent company of Crestline Hotels & Resorts, among the nation's leading independent hotel management companies. The Company leases and also has investments in hotel properties. Additional information about Crestline Capital Corporation is available at the company's web site: .

Crestline Hotels & Resorts manages and leases 38 hotels, resorts and conference and convention centers with over 7,200 rooms in twelve states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well-regarded brands as Marriott, Hilton, Sheraton, Renaissance and Crowne Plaza. Additional information about the hotel management company is available at the company's web site: www.crestlinehotels.com .

Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "estimates" or "anticipates" or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions, results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives including the REIT Modernization Act; and; and (vii) the ability to find available acquisitions and investment opportunities. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its expectations will be attained or that any deviations will not be material. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.