New York, December 13, 2002 -- Moody's Investors Service has confirmed its Baa3 senior unsecured debt and Ba1 preferred share ratings of Hospitality Properties Trust (HPT). Hospitality Properties Trust, externally managed by REIT Management & Research, owns a portfolio of 251 hotel properties, diversified by several national brands and by geography. HPT's portfolio is leased under long-term pooled lease agreements and management contracts to several unaffiliated national hotel owners/operators, including Marriott International and Prime Hospitality Corporation. Moody's rating outlook is stable.

According to Moody's, these rating confirmations reflect HPT's continued steady operating performance, demonstrated access to multiple sources of capital, strong balance sheet and an unencumbered asset base, as well as protective security features embedded in its lease agreements. HPT's strong liquidity position ($350 million available under its credit facility as of December 13, 2002), and by its well-laddered debt maturity structure with no indebtedness due until 2005. Moody's comments that HPT maintains a conservative financing strategy, further supporting bondholders' position.

Offsetting these credit positives are the REIT's exposure to weaker portfolios, which have continued to underperform in the current lodging industry downcycle, and its focus on the volatile hotel segment. Like most lodging REITs, HPT's property portfolio is experiencing declines in revenues and occupancy, a trend Moody's expects will continue well into 2003. The dual challenges of a weak economic environment combined with cutbacks in corporate travel are pressuring room rates (ADR, or average daily rates) and are contributing to deterioration in operating performance for many of HPT's properties.