Press Release

The Carnegie Hotel in Johnson City, Tennessee has been purchased by an investment group led by hotel developers David H. Callen of Tampa, Florida and Charles H. Johnson, Jr. of Catawba, North Carolina. The purchase of the hotel was completed on Friday, December 28. The hotel had previously been foreclosed on by First Tennessee Bank on December 18. Carnegie Hotel Investors, L.P., a Tennessee Limited Partnership formed by Mr. Callen and Mr. Johnson, acquired the hotel from First Tennessee.

"We are extremely pleased to have been able to complete this purchase" said David Callen. "We had worked on this potential purchase for months, and thought that we had failed in our efforts at the time that the foreclosure occurred on December 18. However, First Tennessee called us back after the foreclosure and we were able to structure a purchase of the hotel under terms that everyone could live with. This has been an extremely difficult and complicated transaction. We were excited to be able to get this opportunity."

The $24,000,000.00 Carnegie Hotel is a 144-room hotel located on State of Franklin Road in Johnson City. The hotel was initially opened in March of 2000 but encountered financial problems shortly thereafter.

"Our first goal is to get a major flag for this hotel. It is a gorgeous property and deserves a major flag and a national reservation system. The rooms are as spacious as they are beautiful, and we believe that we can market this hotel in a way that will bring businesses, conventions, seminars and other events to the Johnson City area, especially with the availability of the adjacent Adelphia Center" said Johnson.

Callen agreed that this would be a major goal for the developers. "We believe that this hotel, once flagged with a major hotel company and properly marketed, can be a tremendous asset to the entire Johnson City and Tri-City community" said Callen. "He further indicated that the developers hope to make the hotel a meeting place for local businesses, social organizations and other groups." The hotel has a tremendous amount of meeting space and we will have the capability of servicing the needs of any local organization that desires quality meeting space. We will also have the ability to cater and provide related food services" he indicated.

Carnegie Hotel Investors, L.P. took over operations of the Carnegie Hotel on Friday night, December 28 immediately after the closing with First Tennessee Bank. Their first move was to hire Bunnie Carter, a Johnson City native, as the General Manager of the hotel. Ms. Carter has previously managed the Holiday Inn in Johnson City for 11 years. "Bunnie has an extensive knowledge of the local market and is highly regarded in the Tri-Cities area" said Callen. "We felt that she was the best candidate for this job, and we believe that she will do an outstanding job in managing the hotel."

David Callen presently serves as President of HI Development Corporation in Tampa, Florida. HI Development has been actively engaged in the management of hotels in the southeastern United States, the Caribbean and in Europe. Callen is a graduate of the School of Hotel Administration at Cornell University, and obtained a MBA degree from Rollins College. He previously worked for the Westin Hotel Group and has served as President of HI Development since 1982. In addition to being involved with numerous hotel acquisitions, workouts, developments and general management of hotels in the United States, the Caribbean and Europe, Mr. Callen also served as Director of an international hotel group based in Paris, France with oversight responsibilities for the restructure and repositioning of 75 hotels.

Charles H. Johnson, Jr. has been involved in the hospitality industry for 36 years. His career originated with Holiday Inns of America. During his career, Johnson has developed and operated numerous hotel properties. Johnson is presently a partner and developer for two Marriott Hotels, being the Marriott Courtyard Riverview in Charleston, South Carolina, a 172-unit, $16,000,000.00 hospitality development, and the Marriott Courtyard Downtown Nashville, a $22,000,000.00, 192-unit historic redevelopment project that won the historic development award for the City of Nashville, Tennessee. Johnson currently manages the daily operations, human resources, budgeting and profit and loss activities for PRJR Management, Inc., a hotel management group that has been in operation since 1988. During his career, Johnson has been involved in the development of 29 Holiday Inn hotels and 22 Hampton Inn properties.

The only other partner in the project is William Wilson of Jacksonville, North Carolina. Wilson is an investor in the project. Wilson does not expect to be involved in the day to day operations of the hotel. Wilson has previously developed and owned hotels in Greensboro and Jacksonville, North Carolina. He also has previously worked for Weyerhaeuser Properties (a subsidiary of Weyerhaeuser Company) and has owned and operated the William J. Wilson Real Estate Company as a licensed real estate broker in North Carolina. He has also been involved in the acquisition and development of various commercial projects including shopping centers, office parks and single-use commercial properties.

Callen and Johnson indicated that they hope to make a decision on a major flag for the hotel by the end of March, 2002. "We are seriously talking with two candidates at this time. We want to carefully choose a flag that will help us make the Carnegie Hotel a destination for business groups, conventions, conferences and seminars" said Callen. Johnson indicated that the philosophy of the investment group would be to bring business and visitors to Johnson City. "We know if we do that, everyone will benefit. We are team players and we look forward to working together with the city and with the Adelphia Center to make the Carnegie Hotel something that the entire community can be proud of" Johnson said.

Callen and Johnson indicated that they intend to conduct a press conference in the near future, introducing themselves and the new hotel staff to the community. An open house will be occurring at a date in the near future to give the entire community a chance to see the hotel.

Buckhead America Signs Development Agreement Covering 22 Country Hearth Inns in Florida


ATLANTA, March 30, 1999 - Buckhead America Corporation (Nasdaq: BUCK), the hospitality services company, said it signed a master development agreement with an affiliate of H.I. Development Corp., Tampa, Fla., a closely held hotel and resort development company, for the development of 22 Country Hearth Inn hotels in Florida during the next 10 years.
Under the agreement, Country Hearth Inns of Florida Ltd., the newly created H.I. affiliate, would begin construction of at least two hotels a year for the first five years and three hotels a year for the remaining five years. The company also has an option to develop a total of 66 Country Hearth Inns in 20 years.

H.I. Development has 35 years experience developing and managing hotel properties in the southeastern United States, Puerto Rico and Europe. David H. Callen, president of H.I., said, "We will begin developing Country Hearth Inns immediately in the 60- to 100-room range. We believe the brand and the people at Country Hearth Inn best meet the hospitality product needs for the next two decades."

Douglas C. Collins, chairman, president and chief executive officer of Buckhead America, said, "Country Hearth Inns have been well-received by the traveling public, and now the confidence exhibited by H.I. Development elevates the brand to a new threshold among developers. We are proud to be associated with one of the most respected hotel developers in the nation."

Country Hearth Inns are mid-priced hotels that serve both the business traveler and the vacationer. The hotels combine the homey atmosphere of a bed-and-breakfast, including an expanded complimentary breakfast, manager's reception and free local telephone calls, with the convenience of a modern hotel. Buckhead America is expanding the chain through franchise sales and company development.

The Country Hearth Inn lodging system currently totals 40 operating hotels. In addition, there are 10 properties under construction, 12 signed agreements in various pre-construction stages, and multiple development agreements covering up to 87 more Country Hearth Inns. Buckhead America acquired the then five-unit Country Hearth Inn chain in 1994 and is expanding it nationally through franchise sales and company development.

Buckhead America is a diversified hospitality services company whose holdings include the Country Hearth Inn lodging system and 28 additional hotels owned, leased and/or managed. Buckhead America common shares trade on the Nasdaq National Market System under the stock symbol "BUCK."