Hospitality Properties Trust Acquires 40 Petro Stopping Centers for $630 Million

May 30, 2007

NEWTON, Mass.--Hospitality Properties Trust (NYSE: HPT) today announced that it has acquired 40 hospitality and fuel centers from Petro Stopping Centers, LP ("Petro") for $630 million plus closing costs. Simultaneously with this acquisition, these sites were leased to TravelCenters of America, LLC (AMEX: TA) for an initial net rent of approximately $62.2 million/year.

Prior to this acquisition, Petro Stopping Centers Holdings, LP was a privately owned company headquartered in El Paso, TX, which was majority owned by a Texas family and minority owned by affiliates of Exxon Mobil (NYSE: XOM) and AB Volvo of Sweden (American Depository Receipts, NASDAQ: VOLV). Some of Petro's debt securities are registered with the Securities and Exchange Commission and additional information about Petro may be obtained from its public filings at the SEC.

The 40 centers acquired by HPT are similar to, but generally newer and larger than, the travel centers which HPT acquired earlier this year. The 40 Petro centers are located in 25 states and are all in close proximity to major U.S. Interstate Highways. These 40 centers are further described on Schedule A to this press release.

Simultaneously with HPT's acquisition of the 40 centers, TA acquired substantially all of the operating assets of Petro, including inventory, working capital and certain personal property at the centers leased from HPT, as well as additional travel centers.

In addition to its purchase price of approximately $630 million, HPT has agreed to pay certain costs of this transaction, principally the costs associated with defeasance and prepayment of debt secured by the Petro properties plus customary closing costs. HPT estimates that these costs may be approximately $25 million.

HPT's lease of the 40 centers to TA has many features similar to other HPT transactions. It is one lease for all 40 centers. It is a long term lease through June 30, 2024 (17 years), plus renewal options thereafter which may only be exercised for all, and not less than all, of the centers combined. Starting after 2012, HPT's rent will increase annually based upon percentages of increased gross revenues at the leased centers.

John G. Murray, President of HPT made the following statement when this transaction was announced:

"When HPT agreed to purchase TravelCenters of America and to create TA as a separate public company in September 2006, HPT said that it expected it would find financially accretive growth opportunities in the travel center industry. We are delighted to work with TA to help it expand its business, especially because we have been able to acquire such high quality properties as those which have been built and assembled by Petro."

HPT has funded this transaction using cash on hand and drawings under its unsecured revolving credit facility.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT'S PRESENT INTENT, BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND THEY MAY NOT OCCUR FOR NUMEROUS REASONS. FOR EXAMPLE:

  • THIS PRESS RELEASE STATES THAT HPT EXPECTS TO PAY ABOUT $25 MILLION FOR DEBT DEFEASANCE OR PREPAYMENT AND OTHER COSTS. HPT'S COSTS TO PREPAY THE EXISTING PETRO DEBT MAY DEPEND UPON MARKET CONDITIONS AT THE TIME THE DEBT IS PREPAID; AS MARKET INTEREST RATES CHANGE THESE COSTS MAY INCREASE.

  • MR. MURRAY'S COMMENTS CONCERNING THIS TRANSACTION IMPLY THAT IT WILL BE FINANCIALLY ACCRETIVE TO HPT. THE AMOUNT OF FINANCIAL ACCRETION WHICH HPT MAY REALIZE FROM THIS TRANSACTION WILL DEPEND IN LARGE PART UPON THE COSTS OF THE CAPITAL WHICH HPT USES TO FUND THIS TRANSACTION. HPT HAS INITIALLY FUNDED THIS TRANSACTION USING CASH ON HAND AND DRAWINGS UNDER ITS FLOATING RATE, UNSECURED REVOLVING CREDIT FACILITY. LONGER TERM, HPT'S FUTURE CAPITAL COSTS ARE NOT KNOWABLE AT THIS TIME.

INVESTORS ARE URGED TO REVIEW THE SECTION ENTITLED "RISK FACTORS" IN HPT'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2006, AS FILED WITH THE SEC, ESPECIALLY THE RISK FACTORS WHICH RELATE TO HPT'S INVESTMENT IN PROPERTIES LEASED TO TA, FOR OTHER REASONS WHY FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE MAY NOT OCCUR OR WHY AN INCREASE IN HPT'S INVESTMENTS IN TRAVEL CENTERS LEASED TO TA MAY NOT BE PROFITABLE FOR HPT.

FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

                                                            SCHEDULE A

        Petro Centers Acquired By Hospitality Properties Trust

-- 40 hospitality and fuel centers;

-- Located in 25 states (no. of centers in each state):

     Alabama (1)                     Nevada (2)
     Arkansas (2)                    New Jersey (1)
     Arizona  (2)                    New Mexico (1)
     California (1)                  New York (1)
     Florida  (1)                    North Carolina (1)
     Georgia  (2)                    Ohio (4)
     Indiana  (1)                    Oklahoma (1)
     Illinois (1)                    Oregon (1)
     Kentucky (1)                    Pennsylvania (1)
     Louisiana (3)                   Tennessee (2)
     Missouri (1)                    Texas (6)
     Nebraska (1)                    Washington (1)
                                     Wyoming (1)

                                      Total             Average/Center

-- Land area:                   1,036 acres                   26 acres

-- Full service restaurants:    7,440 seats                  196 seats
   (38 centers)

-- Truck parking spaces:      10,226 spaces                 256 spaces
   (all 40 centers)

-- Car parking spaces:         5,532 spaces                 142 spaces
   (39 centers)

-- Diesel dispensers:        461 dispensers              12 dispensers
   (all 40 centers)

-- Gasoline dispensers:      201 dispensers               5 dispensers
   (38 centers)

-- Truck repair shops:             190 bays                     5 bays
   (38 centers)
In addition there are 16 quick serve restaurants operated under nationally known franchises such as Pizza Hut, Subway, etc. at 13 of the locations. All of the centers offer retail travel and convenience stores, movie theatre type facilities for professional drivers, electronic game rooms, private shower facilities (591 total shower stalls or about 15 per center) and other entertainment and recreational facilities, including casino gambling in locations where it is legally permitted.

Hospitality Properties Trust
Timothy A. Bonang
617-796-8149
Manager of Investor Relations
www.hptreit.com

Cautionary Language

The information appearing on HPT’s website includes statements which constitute forward looking statements. These forward looking statements are based upon HPT’s present intents, beliefs or expectations, but forward looking statements are not guaranteed to occur and may not occur. HPT’s actual results may differ materially from those contained in HPT’s forward looking statements. The information contained in HPT’s filings with the Securities and Exchange Commission, including under “Risk Factors" and “Warnings Concerning Forward Looking Statements” in HPT’s periodic reports and other filings, identifies important factors that could cause HPT’s actual results to differ materially from those stated in HPT’s forward looking statements. HPT’s filings with the SEC are available on the SEC’s website at www.sec.gov and are also accessible on HPT’s website at the following link: SEC Filings. You should not place undue reliance upon forward looking statements.

The documents provided in this archived section are provided for historical purposes only. The information contained in each document is accurate only as of the date each document was originally issued or such earlier date stated in those documents. Except as required by law, Hospitality Properties Trust does not undertake any obligation to update any information contained in these documents. For current information about the company, please refer to our most recent public SEC Filings.

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