The Carlyle Group and Davidson Hotel Company Sell Hilton Pasadena to The Amstar Group; Davidson Will Continue to Manage Building and Retain Equity Stake

Washington, DC – Global private equity firm The Carlyle Group and Davidson Hotel Company today announced the sale of the 296-room Hilton Pasadena Hotel to a joint venture between The Amstar Group and Davidson. Jones Lang LaSalle Hotels arranged the sale on behalf of the sellers. Terms of the sale were not disclosed.

Carlyle and Davidson acquired the hotel in May 2004 and invested $5 million in a complete renovation of the hotel lobby, restaurant and guestrooms, as well as substantial improvements to the exterior areas. Davidson, which serves as property manager and oversaw the renovation, will remain an equity investor in the hotel. Post-closing, the hotel will remain a Hilton Hotel under a license agreement with Hilton.

Robert G. Stuckey, Managing Director and Head of Carlyle Realty Partners, said, "This investment is an excellent example of the types of hotel acquisitions we pursue. We invest in quality assets in supply-constrained markets and partner with superior management teams such as Davidson. Over the past 18 months, we were able to install the Davidson management team, renovate the hotel and increase hotel profitability by 50 percent."

Carlyle Managing Director Paul B. Brady said, "We have been a net investor in hotel assets since early 2004, and have since acquired, developed or redeveloped the Hilton Pasadena, the Hilton Garden Inn and Hampton Inn on New York’s Eighth Avenue; the Hyatt Hotel in Fairfax, Virginia; the Colonnade Hotel in Coral Gables, Florida; the Westin Hotel in Annapolis, Maryland; and the Crowne Plaza at the United Nations in Manhattan. However, we continue to focus on returning cash to our investors by selling assets such as the Hilton."

John A. Belden, President and Chief Executive Officer of Davidson Hotel Company, said, "We are thrilled to be part of a team that continues to seek and find hotel acquisition opportunities across the country. The kind of association that has been created between Davidson and Amstar is exactly what’s needed to succeed in the hospitality industry today. Together we have achieved terrific results and we expect that to continue at the Hilton Pasadena."

Arthur Buser, Managing Director for Jones Lang LaSalle Hotels in Los Angeles, said, "This is a smart acquisition for Amstar Group because of its tremendous upside potential in a market with extreme barriers-to-entry for new supply. The market has experienced a strong RevPAR growth over the past two years. With a shift in demand mix taking place in this submarket to higher-rated corporate and government demand in lieu of airline crew business, the outlook is even brighter in the near future. Amstar will benefit tremendously from this timely acquisition."

About Davidson Hotel Company

Davidson Hotel Company is a Memphis, TN-based hotel company specializing in the renovation, repositioning and management of upscale, full-service properties. Davidson Hotel Company's portfolio includes 24 hotels encompassing over 7,000 rooms in major cities throughout the nation, operating under such brands as Hilton, Doubletree, Embassy Suites, Marriott, Renaissance and Sheraton affiliations.

About Amstar Group

Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. The Denver-based company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2 billion of real estate. Amstar’s current portfolio includes a mix of office, multifamily and hospitality holdings in addition to a development pipeline of industrial, multifamily and retail projects. For more information about Amstar Group visit the company’s website at www.amstargroup.com/ .

About Jones Lang LaSalle Hotels

Jones Lang LaSalle Hotels, the world’s leading hotel investment services group, provides clients with value-added investment opportunities and advice. In the US, Jones Lang LaSalle Hotels is ranked as the leading transaction advisor for hotel sales over $25 million. In 2004, its success story includes the sale of 23,103 hotel rooms to the value of US$5.2 billion in 85 cities and advisory expertise on 132,498 rooms to the value of US$27.9 billion across 301 cities. Jones Lang LaSalle Hotels’ services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle (NYSE: JLL) is the world’s leading real estate services and investment management firm, operating across more than 100 key markets on five continents. www.joneslanglasallehotels.com/ .