Today, Tuesday 19 April 2005, in the conclusion of the lion’s share of the £111m deal agreed in March, Stardon UK announced that it has completed the takeover of seven of the eleven Hilton International hotels. The remaining four properties are expected to complete in the near future. Stardon UK is a joint venture between Chardon Hotels, which is the private investment vehicle of Scottish entrepreneur Maurice Taylor, and a fund sponsored by US investment firm Starwood Capital.

Five properties are in England: The Hilton West Pier Brighton and Hiltons Corby, Moorside Grange, Norwich and Leeds Garforth. Two in Scotland: The Hilton Dunblane Hydro and Hilton East Kilbride. As of today Chardon Management, appointed to manage all eleven hotels, has taken over operational responsibility for the initial seven. Chardon will operate the hotels under the Hilton brand for at least the short to medium term. This is understood to be the first time that Hilton has licensed the brand outside of the Hilton group.

Lloyd Lee, Director of Starwood Capital Europe, said, “We are very pleased to be partnering with Chardon Hotels on this transaction as they have a very solid reputation as a smart investor in leisure assets including hotels, restaurants and health clubs. Meanwhile Chardon Management has an excellent reputation as a first class management company that drives both operational and financial performance. This acquisition provides both steady, financeable cash flow and operational and asset management angles, and is a welcome addition to Starwood’s overall European investment portfolio".

Chardon’s Group Managing Director, Maurice Taylor, said: “We see these hotels as a terrific opportunity to achieve the growth that we have been preparing for for some time. Chardon Management has an enviable record of managing a range of branded hotels for different owners and delivering profitability through a high standard of operational quality and customer care. We have met and presented to the current staff in the former Hilton properties. These hotels represent a first rate financial investment and are also bringing with them a talented staff to join our own skilled and experienced team.”

Starwood Capital Europe Ltd, based in London, is an affiliate of Starwood Capital Group Global, L.L.C., a U.S. privately held investment management company that specializes in real-estate related investments on behalf of select private and institutional investor partners.

Maurice Taylor of Chardon Hotels also owns a group of other companies and developed and owns branded hotels including the Holiday Inn Glasgow and the Express by Holiday Inn Glasgow Theatreland. Much decorated, Taylor received an honorary doctorate from Strathclyde University in 2004 in recognition of his contribution to the hospitality industry in an illustrious career spanning over 40 years. A two page question and answer document prepared by Chardon Management is also attached.