EXHIBIT 99.1


Contact:  Bob Marlowe
          Chief Financial Officer
          (615)264-8000


               SHOLODGE ANNOUNCES FOURTH QUARTER ESTIMATED LOSSES


         Hendersonville, TN (February 4, 2003) - ShoLodge, Inc. (Nasdaq: LODG)
today announced that it expects to report net losses for the fourth quarter of
2002 ranging from $20 million to $22 million, or approximately $4.00 to $4.30
per share. The losses are primarily the result of losses on the sale of hotels,
charge-offs of development costs on abandoned hotel development projects and
write-downs of notes and accounts receivable due to impaired values of hotels
underlying the receivables.


         ShoLodge currently owns, manages, and/or franchises 122 hotels,
provides reservation services for these and other lodging facilities, and
performs construction and development services for third parties.


         This press release contains forward-looking statements relating to
certain matters, which reflect management's best judgment, based on factors
currently known and involve risks and uncertainties. Actual results could differ
materially from the anticipated results or expectations expressed in the
Company's forward-looking statements. Forward-looking statements provided by the
Company pursuant to the safe harbor established under the Private Securities
Litigation Reform Act of 1995 should be evaluated in the context of these
factors which are contained in the Company's Securities and Exchange Commission
(SEC) filings, including its periodic reports filed under the Securities
Exchange Act of 1934, as amended. Copied of these filings are available upon
request from the Company. In addition, the Company disclaims any intent or
obligation to update these forward-looking statements.