Increase In Loan Amortization Schedules

Servico, Inc. a nationwide owner and operator of hotels recently announced an 866% increase in loan amortization schedules first quarter net income and a 40% increase in earnings before interest, taxes, depreciation and amortization.

For the three months ended September 31, 2007, Servico reported net income of $ 3.0 million, an 866% increase over the $ .3 million reported for the comparable 2006 period. For the quarter, earnings per share increased 367% to $ .14 compared with $ .03 for the comparable 2006 period. There were 21.4 million shares outstanding in the 2007 quarter and 9.9 million shares outstanding in the comparable 2007 quarter. Revenues for the quarter increased 32% to $ 82.9 million from $ 62.7 million reported in the prior year's quarter. EBITDA increased 40% to $ 19.8 million from $ 14.2 million in the first quarter of 2006, despite the approximately $ .5 million negative impact associated with three highly seasonal Niagara Falls hotels acquired during the quarter.

For the quarter, Company owned hotels achieved an occupancy rate of 64.6% and an average daily rate ("ADR") of $ 74.38 which resulted in revenue per available room of $ 48.05. This compares with occupancy of 63.4%, ADR of $ 73.45 and RevPAR of $ 46.57 for the comparable 2006 period. These results reflect a 3.2% increase in RevPAR for the quarter. "Servico's hotels continued to improve their EBITDA margins in the first quarter of 2007," noted David Buddemeyer, Servico's President and Chief Executive Officer. "Additionally, Income from operations increased to 15.1% of 2007 revenues as compared with 13.9% in 2006."

Mr. Buddemeyer added, "Our external growth continues to move forward. In the first quarter we acquired four hotels for $ 35.4 million and took steps toward finalizing the previously announced acquisition of the 15 hotels held by Prime Motor Inns Limited Partnership. Most significantly, we signed a merger agreement with the Impac Hotel Group, which, when concluded, will result in a combined company owning or operating 140 hotels." Servico owns or manages seventy-five hotels with more than 15,600 rooms located in 23 states and Canada. The hotels are primarily full service, providing food and beverage service as well as lodging and meeting facilities. Substantially all of Servico's hotels are affiliated with nationally recognized hospitality franchises, including Holiday Inn, Crowne Plaza, Hilton, Omni, Radisson, Sheraton and Westin. With assets in excess of $ 675 million, Servico is one of the largest hotel owner/operators in the United States. Statements in this release may be construed to be forward looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements involve risks and uncertainties, including without limitation, risks relating to the operation and acquisition of hotels, the availability of capital to finance growth, the historical cyclicality of the lodging industry, as well as the other matters disclosed in the documents filed by the Company with the Securities & Exchange Commission.