Hospitality Properties Trust announced that it has entered new management agreements with Hyatt Corporation (Hyatt) and Carlson Hotels Worldwide (Carlson) with respect to the portfolio of 36 hotels previously managed by Prime Hospitality Corporation (Prime). In October 2004 Blackstone Group acquired Prime, and in January 2005 Blackstone sold Prime`s AmeriSuites brand to Hyatt. As part of its AmeriSuites acquisition, Hyatt acquired the rights and obligations under HPT`s management contract covering 24 AmeriSuites and 12 Prime Hotels. HPT`s 24 AmeriSuites have performed well during the first quarter of 2005 and HPT believes Hyatt is committed to continued improvement in the operations of these hotels and the brand. The 12 full service Prime Hotels have not achieved the operating results previously anticipated by HPT. HPT and Hyatt have now agreed to transfer management of these 12 hotels to Carlson; and HPT believes Carlson is committed to improve the operations of these hotels.

The new agreements announced today split the previous agreements into two; one with Hyatt for 24 limited service AmeriSuites and one with Carlson for the 12 Prime Hotels, which are expected to be rebranded with Carlson brands, including Radisson Hotels and Resorts and Country Inn & Suites, by year end 2005. The economic terms of the new agreements on a combined basis are unchanged from the previous agreement with Prime, but because the two agreements each include a smaller number of hotels and are less diverse certain security features, including guarantees from Hyatt and Carlson, have been changed.

As a result of the agreements announced, approximately 95% of HPT`s annual minimum returns and rents will be derived from hotels operated by four of the largest and most experienced hotel management companies in the world, each of whom own the hotel brands under which they will operate for HPT: Marriott International - 46%; InterContinental Hotels - 41%; Hyatt Corporation - 5%; and Carlson Hotels Worldwide - 3%.