----

(Ed's Note: A list of the study's 20 metropolitan areas follows
this release.com, Orbitz, and Travelocity where
rates were available.
The study included lodgings rated Two Diamond, Three Diamond and
Four Diamond by AAA in each of the metropolitan areas, representing a
cross section of brands and a wide variety of amenities.com, AAA's online mapping products, are interactive with the
AAA online TourBook, allowing users to select a hotel based on its
proximity to attractions, restaurants, airports, events, addresses or
other venues. Since its
founding in 1902, the not-for-profit, fully tax-paying AAA has been a
leader and advocate for the safety and security of all travelers. "The western
region represents the fastest growing region in our industry and to
have the ability to provide this opportunity to expand the reach of
our allied members beyond the borders of California and expose
property owners and general managers to a regional show is just
fantastic.
James L.

forecasts business

Business Editors /Automotive Writers/Travel Editors

ORLANDO, Fla.
Over 4,000 industry professionals from the fastest growing region
in the nation and 400 exhibitors attend this well-established show,
which includes the Epicurean Affair, a spectacular award-winning Las
Vegas party including the best in wining and dining from the top chefs
and restaurants. The 2006 Las Vegas International Hotel + Restaurant
Show will be held on April 13th + 14th at the Mandalay Bay Convention
Center.
"We're pleased to be bringing our membership the benefit of a real
trade show and are looking forward to our first show together in
2006," stated Jim Abrams, President + CEO of CH+LA."

The California Hotel + Lodging Association (CH+LA) is the largest
state lodging industry trade association in the country .com

global forecasts

The research, conducted by PhoCusWright Inc.
"This research reconfirms what we have known all along: that AAA
consistently offers the best rate and value to travelers," said Jeff
Zimmerman, director, AAA Travel Information.C.

research business

"
PhoCusWright Inc. AAA members account for 35 percent of all hotel
room nights booked in the United States. Such statements
are subject to numerous assumptions and uncertainties, many of which are
outside Highland Hospitality Corporation's control .

data trends

Sacramento-based CH+LA has been representing
California's lodging industry for more than a century .

Highland Hospitality Corporation Announces the Signing of a Definitive Agreement to Acquire The Melrose Hotel in Washington D.C.

These forward-looking statements are subject to risks and
uncertainties .

trends industry

Internet TripTik(R) and
AAAmaps. Francis, Highland's President and CEO, stated, "Our planned
acquisition of The Melrose Hotel will be our second hotel acquisition located
in downtown Washington, D.

Certain statements and assumptions in this press release contain or are
based upon "forward -looking" information and are being made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995.

online hotel

"The most salient finding is that AAA is the absolute lowest rate
winner among the Web sites included in the study," said the
PhoCusWright survey.

Orlando , Fla.

California Hotel + Lodging Association Partners in Las Vegas International Hotel + Restaurant Show

MCLEAN, Va.

research data

is an independent research firm covering the
travel, tourism and hospitality industry ."
With the AAA online TourBook, users can read descriptions of
lodgings and their amenities, access Diamond Ratings and see photos of
a hotel prior to making reservations.

Philadelphia

Phoenix

Pittsburgh

Sacramento, Calif.C.

CH+LA's mission is to be the indispensable
resource for communicating and protecting the rights and interests of
the California lodging industry, for providing educational training
and value programs for all segments of the industry, and for
supporting strategic alliances to promote the value of California
tourism and travel. CH+LA is on the
web at www. When we use the words "will likely result," may,"
"anticipate," "estimate," "should," "expect ," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements.

hospitality services

, and completed in
December 2004, compared AAA's online rates in 20 key metropolitan
areas with those of Expedia, Hotels. In competitive searches, AAA offered the lower hotel
rate consistently across all competitors investigated, demonstrating
an overall strong AAA hotel program.

Metropolitan Areas Used in "AAA Expanded Lodging Study"

Atlanta

Atlantic City, NJ

Boston

Chicago

Cleveland

Columbus, Ohio

Las Vegas

Los Angeles

New York

Niagara Falls, NY

Orange County, Calif., supporting our belief that the economic
fundamentals of our nation's capital will continue to make it one of the top
lodging real estate markets in the United States.

lodging source

)

Hotel rates available through AAA's Web site (http: //www.
As North America's largest motoring and leisure travel
organization, AAA provides more than 47 million members with travel,
insurance, financial and automotive-related services.

Washington , D. CH+LA's participation, as the largest state
lodging association in the nation, is expected to greatly expand this
show starting in 2006, when the partnership will officially begin. Its 1,600
members, which comprise close to 175,000 guest rooms, consist of
hotels, motels, bed and breakfast inns, guest ranches, resorts, spas,
condominium rentals, timeshares, and vacation home rentals located
throughout California. The
company expects to close this transaction within the next ten days and has
selected Crestline Hotels + Resorts, Inc.

industry global

com)
are generally lower than those of four travel Web sites, according to
new, independent research.calodging.C. We believe this hotel will
drive strong yields for our shareholders and benefit from the growing
corporate and leisure demand in this market. The company owns 24 hotel
properties with an aggregate of 7,381 rooms in 12 states, Washington , D. Additional information can be found on the company's website at
http://www.highlandhospitality .com.

source hotel

aaa.com Has Lowest Online Hotel Rates Research Shows; ``...AAA Is The Absolute Lowest Rate Winner ...'' - PhoCusWright Survey

"We also have combined
AAA's online hotel information for 32,000 AAA rated properties in the
TourBook(R) guides with our hotel booking engine, making one very
robust search tool.

Business Editors/Travel + Hospitality Writers
Las Vegas International Hotel + Restaurant Show

SACRAMENTO, Calif., Highland Hospitality
Corporation (NYSE: HIH), a lodging real estate investment trust, or REIT,
announced today that it has entered into a definitive agreement to acquire the
240-room Melrose Hotel located in Washington, D."

Highland Hospitality Corporation is a self-advised lodging REIT focused on
hotel investments primarily in the United States .

trends services

"AAA offered a lower rate more often than each of
its four online competitors in a side-by-side analysis where rates
were available. for a purchase price of $76
million, plus customary closing costs, or approximately $316,700 per key. and
Mexico.

travel source

aaa.
Those who do not have access to the Internet or prefer not to use
the Web for vacation planning can visit or call a AAA club office to
speak with a travel professional.

San Diego

San Francisco

Tampa, Fla.----The
California Hotel + Lodging Association (CH+LA) is formally joining
forces with the Nevada Hotel + Lodging Association and the Nevada
Restaurant Association in the Las Vegas International Hotel +
Restaurant Show (LVIHRS). to manage the property as an
independent hotel.

lodging research

The 20
metropolitan areas represent the top destination cities for AAA
members and travelers.C. Such forward-
looking statements include, but are not limited to, the impact of the
transaction on our business and future financial condition, our business and
investment strategy, our understanding of our competition and current market
trends and opportunities and projected capital expenditures. 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.