"MeriStar as an entity will be abolished; the MeriStar name will go away," a MeriStar spokesperson tells GlobeSt.com. "The deal came together very quickly, so what Blackstone will call the hotels has not been determined. And where the merged company will be domiciled remains to be seen. Blackstone is headquartered in New York; whether or not an office will remain here in Bethesda will be determined later."

Currently, MeriStar's portfolio consists of 57 high-end hotels with an aggregate 16,507 room in major markets in 19 states and the District of Columbia. Earlier this month, Blackstone inked a deal to acquire 10 MeriStar properties--nine hotels accounting for a total of 1,948 rooms and a golf and tennis club, all located in Florida-- for about $367 million.

MeriStar chairman and CEO Paul Whetsell says company officials "believe that the transaction represents attractive value to our shareholders." The per-share price is a 20% premium above MeriStar's closing stock price on Nov. 10, 2005, which was one day before news of a possible merger emerged and increased the value of the stock. Bear, Stearns & Co. Inc. will furnish the financing for the acquisition, which MeriStar and Blackstone expect to close during the second quarter, following stockholder approval.