ALLEGRO Resorts Corporation Announces Investment By Westbrook Partners And GE Capital

SANTO DOMINGO, DOMINICAN REPUBLIC -- In a transaction valued at more than $200 million, Allegro Resorts Corporation, the world market leader in the all-inclusive resort industry, announced that Westbrook Partners, L.L.C., a New York-based real estate investment management firm, and GE Capital, the financial services subsidiary of General Electric Company, have acquired a significant interest in Allegro.

According to Allegro Resorts' president and CEO Alberto Del Pino, Westbrook Real Estate Fund II will become a major shareholder in Allegro, and GE Capital will acquire an equity share and provide a $50 million loan to Allegro. The Westbrook/GE Capital investment is part of a debt restructuring and recapitalization of Allegro.

"We're extremely excited about this transaction, "said Del Pino. "Allegro has grown significantly over the past four years. Having partners of the caliber and financial strength of these two organizations will accelerate the company's further growth and enable us to reach our strategic goals faster."

William Walton, Managing Principal of Westbrook Partners, L.L.C., said, "Allegro has demonstrated itself to be the premier player in the hospitality industry's fast growing all-inclusive travel segment. The exceptional management team, headed by Alberto del Pino, is one of Allegro's greatest assets. They've built a very successful company in a relatively short period of time. The company's tremendous growth potential also makes it a very attractive investment for Westbrook's investors."

Del Pino further explained that Allegro plans to use the new capital to pursue global expansion opportunities, including acquisitions of existing hotels and leases as well as development of new resorts. Funds already are earmarked to finance construction of the first Royal Hideaways all-inclusive resort, an upscale brand Allegro is developing to attract the higher-end travel market.

Del Pino also said that the deal significantly strengthens Allegro's position in both the all-inclusive segment and the overall hospitality industry.

"The strategy for Allegro's future is to grow by acquiring and developing additional resorts in the Caribbean and Mexico, as well as other targeted resort destinations in North America and around the world," he added.

"Specifically, in addition to strengthening our presence in our core markets, we are seeking to form joint venture partnerships in Asia and the Mediterranean to expand our existing operations in these regions."

This transaction comes on the heels of Allegro's recent acquisition of the Dallas, Texas-based Jack Tar Village Resorts all-inclusive hotel chain. During the past year, Allegro also entered into a joint venture with a Tunisian hotelier to open six new all-inclusive resorts in Tunisia and, more recently, acquired several new management contracts in Thailand and Costa Rica.

Allegro Resorts currently operates more than 30 all-inclusive resorts with a total room inventory over 8,000. Formed in July 1993 through a merger of two hotel companies, Caribbean Villages Clubs & Resorts in the Dominican Republic and Diamond Hotels and Resorts in Texas, Allegro operates marketing and sales offices in Europe, the United States, Mexico and the Caribbean.

Westbrook Partners, L.L.C., founded in 1994 by former executives of Morgan Stanley Real Estate Fund, serves as the general partner of Westbrook Real Estate Fund II, L.P. Through its funds, Westbrook controls approximately $2.5 billion in real estate holdings including hotels, commercial, retail and industrial properties, and residential developments.

GE Capital Services, based in Stamford, CT, is a global, diversified financial services company with 27 specialized businesses and assets of over US$227 billion. GE Capital is a wholly-owned subsidiary of General Electric Company, a diversified manufacturing, technology and services company with operations worldwide.