Allied Hotel Properties Inc. Announces Satisfaction of Purchaser's Condition

On February 22, 2010 Allied Hotel Properties Inc. ("Allied") (TSX VENTURE:AHP),
through a wholly owned subsidiary, entered into a hotel purchase agreement (the
"Agreement") with an arm's length third party purchaser (the "Purchaser")
whereby Allied agreed to sell and the Purchaser agreed to purchase the Crowne
Plaza Chateau Lacombe (the "Property").


The Agreement was subsequently amended (the "Amended Agreement") whereby Allied
agreed to provide a Vendor Take-Back mortgage ("VTB") in the amount of
$19,000,000, which carries interest at 6% per annum, payable monthly, and
matures on August 1, 2011. The VTB shall be secured by a first charge against
the Property. The Purchaser shall also grant Allied a General Security
Agreement, a General Assignment of Rents and Leases and a Personal Guarantee
granted by a principal of the Purchaser as additional security.


This transaction was subject to certain conditions for the benefit of the
Purchaser and Allied including the Purchaser's inspection of the hotel property,
income and expense statements, contracts, leases and any reports or
investigations conducted by the Purchaser. The Purchaser has given notice that
the inspection condition has been satisfied in accordance with the Agreement and
the Amended Agreement and has unconditionally released to Allied a total
non-refundable deposit of $1,000,000. The parties anticipate completing the
transaction on or about June 1, 2010.


Allied is a hotel ownership and management company. Its hotel portfolio consists
of the Crowne Plaza Chateau Lacombe in Edmonton, Alberta and the Toronto Don
Valley Hotel & Suites in Toronto, Ontario. Allied also owns an interest in the
Residence at Accolade Inc., a condominium development adjacent to the Toronto
Don Valley Hotel & Suites. Interested parties can find further information at
www.alliedhotels.com.


On behalf of the Board of Directors:

Mr. John R. Ellen, Secretary and Chief Financial Officer