MK Capital Markets Secures Debt and Equity Funding for Candlewood Suites Development Portfolio

“The principals of American Hotel Development Partners are highly adept, accomplished hoteliers with development and operational expertise,” commented Ed Blum, Managing Director of MK’s Capital Markets Group. “It was a pleasure to assist them in sourcing both the debt and equity pieces at attractive terms and rates, thus improving the projected return on their investments.”

Specialty Finance Group LLC, a subsidiary of The Bankers Bank, provided the debt, in the form of construction/mini-perm loans, to the joint venture. Greg Friedman, Senior Vice President of Specialty Finance Group, worked with Ed Blum to facilitate the debt portion.

“This project ideally fit our hotel lending parameters,” remarked Mr. Friedman. “More than 70% of the $1 billion which Specialty Finance Group anticipates lending to the hotel industry in 2007 will take the shape of construction/mini-perm loans to projects with top tier brands and development teams.”

Equity for the joint venture partnership’s undertaking is provided by Glenmont Capital. Bracken White, Managing Director of MK Capital Market's west coast office, and a specialist in placing equity for the hospitality industry, facilitated the Glenmont/AHDP joint venture.

“Following my analysis of the AHDP opportunity and goals, several potential equity partners occurred to me,” commented Mr. White. “Glenmont, however, was clearly one of the best partners for this scenario given AHDP's long-term development and management aspirations. It is a pleasure to bring together these entities and facilitate their mutual goals.”

In total the AHDP/Glenmont partnership plans to build a total of 10 Candlewood Suite hotels during the next three years.

Larry Kestin, Managing Principal of Glenmont Capital Management, LLC, remarked, “MK’s Capital Markets Group conveyed the entire project, AHDP's capabilities and the opportunity in a sophisticated and compelling package. As a result, we believe we are tapping a growing segment of the hotel market where we can achieve extraordinary returns for our investors. We are pleased to have ventured with a quality group in AHDP, the principals of which we believe are well positioned to take advantage of the opportunities in the market.”

The principals of the AHDP/Glenmont joint venture anticipate making additional development announcements in the coming weeks.

“The resources of American Hotel Development Partners, LLC provides a significant capital base to fuel continued growth,” remarked Clyde Harris, President of AHDP. Prior to forming AHDP with his partners, Mr. Harris served as an executive within hotel branding giant InterContinental Hotels Group where his role was Director of Brand Development for Candlewood Suites.

During the last 12 months MK has structured more than $4.2 billion in hotel real estate transactions and funding worldwide, including such significant transactions as financing for Amanresort’s Le Mélézin luxury ski resort in Courchevel 1850, in the French Alps, and the sale of the Westin Kierland Scottsdale, Arizona. For further information about this transaction and MK’s capital markets expertise, please contact Ed Blum of MK’s Capital Markets Group at 703.760.9600 or via www.mkhotels.com.

About MK Capital Markets Group | Molinaro Koger (MK) is the world’s leading hotel-exclusive real estate brokerage, advisory and capital markets firm. The company structures transactions of boutique through luxury market segment assets throughout the world. MK is headquartered in metro-Washington, DC, and has offices in London, Atlanta, Beijing, Chicago, Cincinnati, Dallas, Los Angeles, Mumbai, New York, Phoenix, San Francisco and Shanghai.

Molinaro Koger’s Capital Markets Group arranges hotel-specific financing, including debt, equity, and mezzanine sources, for MK’s client base, both domestically and internationally. Ed Blum, Managing Director, Capital Markets, is skilled in corporate hotel finance, investment analysis, mergers and acquisitions, venture capital, capital raising, lender and investor relations, and corporate workouts both domestically and internationally. During the past decade, Mr. Blum’s expertise and contacts have facilitated his completion of more than $3 billion in hotel financing and transactions in the United Kingdom, France, Italy, Spain, Czech Republic and the United States.

Founded in 1959, Molinaro Koger successfully markets hotel real estate, sponsors limited partnerships, and arranges financing for clients. Given the cyclical nature of real estate, the firm has weathered an array of highs and lows during the course of its 47-year history. Through this time, the company has grown and assisted clients in achieving their investment goals.

“With each lodging real estate cycle we gather strength, expertise and contacts enabling us to better serve the best interests of our clients, regardless of economic cycles,” says President Robert Koger. “The results we achieve are directly attributable to the commitment and expertise of our professional staff.”

Molinaro Koger can be accessed online at .

About Specialty Finance Group | Specialty Finance Group, LLC (“SFG”), a subsidiary of The Bankers Bank, is a balance sheet lender with a focus on the hospitality industry. Headquartered in Atlanta, Georgia, SFG has assembled a team of highly skilled professionals who are proficient in multiple lending disciplines. Since its core formation nearly 20 years ago, SFG has funded in excess of $7 billion for hotel projects. In 2006, SFG committed to over $650 million in hotel senior debt (new construction, take-out, bridge, acquisition, refinance) and FF&E loans. SFG is currently tracking approximately $1 billion for 2007. SFG’s high level of expertise allows the team to perform and respond to the diverse lending requirements of our hospitality clients through a personalized and seamless decision-making process. Greg Friedman can be reached at 770.805.2365. SFG can be accessed online at .

ABOUT AMERICAN HOTEL DEVELOPMENT PARTNERS, LLC | American Hotel Development Partners, LLC is an integrated hotel development company which has significant hotel expertise and deep industry relationships by virtue of its principals’ 75 collective years of experience in building, managing and operating hotels. Among its principals is a former executive of Intercontinental Hotels Group who was responsible for the Candlewood Suites brand, among other responsibilities. AHDP is focused on the extended-stay hotel sector because of its ability to leverage the expertise of its principals, develop in several of the many existing underserved markets, invest a relatively modest amount of capital, and achieve high cash flow margins. To date, AHDP has identified South Carolina, North Carolina, Georgia, Pennsylvania and Florida as having attractive extended-stay development opportunities. However, AHDP will utilize an opportunistic approach to find valuable properties regardless of geography. AHDP focuses primarily on the extended-stay segment, specifically the extended-stay brands of the Intercontinental Hotels Group (“IHG”), and, in particular, the Candlewood Suites Hotels brand. AHDP’s ultimate strategy is to achieve operational stability approximately three years after each hotel is built, at which time and given appropriate market conditions, AHDP would seek to sell such hotels in bulk or individually.

ABOUT GLENMONT CAPITAL MANAGEMENT, LLC | Glenmont Capital Management, LLC is a privately held real estate investment management firm headquartered in New York. It deploys equity capital from its existing investment funds composed of institutional and high net worth investors and is focused on high yielding, small to midsize investment opportunities across the country, that typically require $5 million to $15 million of equity capital. The funds target joint venture equity investments in all real estate asset classes where Glenmont can leverage the expertise of its experienced and proven sponsor partners who operate the properties on a day-to-day basis. Glenmont’s existing portfolio consists of several million square feet of various hotel, retail, industrial, office, multifamily, land and other properties around the United States and in Europe.