Home Inns updates preliminary 4Q results

SHANGHAI -- Home Inns & Hotels Management Inc. (Nasdaq: HMIN), a leading economy hotel chain in China, has provided an update regarding the impact of the slowing domestic economy on the Company's results.

The recent global economic situation has led to reduced business travel activities in China, and as a result, the Company experienced contraction in both chain-wide and like-for-like RevPAR (revenue per available room) during the fourth quarter of 2008.

(Shanghai day skyline, top right photo)

For the fourth quarter, the chain-wide occupancy rate was 84%, and ADR (average daily rate) was RMB 167. This resulted in fourth quarter RevPAR of RMB 141, a decline of 9% from RevPAR of RMB 155 for the fourth quarter of 2007. Also for the fourth quarter of 2008, like-for-like RevPAR for hotels that opened for a

t least 18 months contracted 3.9% compared to the same period in 2007. Due to such challenges, the Company believes that its revenue for the fourth quarter of 2008 will be at the low end of its previously announced forecasted range of RMB 535 - 555 million.

Home Inns opened a net of 205 new hotels in 2008, slightly exceeding its target of 200 new hotels for the year, to reach a total of 471 hotels in operation covering 94 cities in China. The 471 hotels in operation consist of 326 leased-and-operated hotels, which include the new H Hotel in Shanghai, and 145 franchised-and-managed hotels.

On a separate note, during the fourth quarter of 2008 the Company repurchased and retired RMB 219 million of its own convertible bonds for total cash consideration of US$16.59 million. After the repurchase, the Company had convertible bonds outstanding of RMB 895.7 million including principal and accrued interest.

The Company expects to recognize a gain for the convertible bond repurchases in the fourth quarter of 2008 and may effect additional such transactions in the future.

(Night skyline of Shanghai, bottom left photo)

Home Inns plans to attend Deutsche Bank's Access China Conference 2009, which will take place from January 13 through January 15, 2009 in Beijing, China. Attending the conference from Home Inns will be May Wu, Chief Financial Officer, and Ethan Ruan, Investor Relations Manager. On January 14, the Company will give a group presentation and hold investor meetings.

Home Inns is a leading economy hotel chain in China based on the number of hotels and hotel rooms, as well as the geographic coverage of the hotel chain. Since Home Inns commenced operations in 2002, it has become one of the best-known economy hotel brands in China.

Home Inns & Hotels Management, Inc., together with its subsidiaries, engages in the development, lease, operation, franchise, and management of an economy hotel chains in the People's Republic of China. The company operates its hotels under the Home Inn brand name. As of December 31, 2007, its Home Inns hotel chain consisted of 266 hotels, including 195 leased-and-operated hotels and 71 franchised-and-managed hotels. The company was incorporated in 2001 and is headquartered in Shanghai.

For more information about Home Inns, please visit http://english.homeinns.com/ .

For investor and media inquiries, please contact:
Ethan Ruan, Home Inns & Hotels Management Inc. Tel: +86-21-3401-9898 x2004 Email: zjruan@homeinns.com

FD Beijing Peter Schmidt Tel: +86-10-8591-1953 Email: peter.schmidt@fd.com

Halekulani to partner with Imperial Hotel

HONOLULU, Hawaii – Halekulani Corporation is pleased to announce a new partnership alliance with Japan’s legendary luxury hotel group, Imperial Hotel, LTD of Tokyo.

The alliance creates an exciting new synergy and an expanded service platform for these legendary hotel companies, providing new levels of enhancements to their brands.

Halekulani Corporation, which includes globally-acclaimed luxury resort Halekulani (middle right photo) and Waikiki Parc Hotel,(bottom left photo) is a wholly-owned subsidiary of Mitsui Fudosan Co., Ltd.

The announcement was made by Peter Shaindlin, (top right photo) Chief Operating Officer of Halekulani Corporation and Mr. Tetsuya Kobayashi, President of Imperial Hotel, Ltd., Tokyo.

Halekulani and Imperial Hotel are highly respected independent international iconic brands and pioneers in the global hospitality industry.

Both hotel groups share similar service philosophies, and maintain a legacy of unwavering commitment to brand excellence and decades-old historic and cultural traditions. Both are acclaimed for innovative and personalized world-class service for their loyal international guests and patrons.

“Imperial Hotel shares many core service values with Halekulani”, said Peter Shaindlin of Halekulani Corporation.

“As such, the unprecedented alliance with this iconic brand will significantly provide enhanced levels of service for our (Hawaii-based) hotels, especially to our many valued and loyal Japanese guests.

“The profiles of the Halekulani and Imperial customer complement each other, and this partnership will create infinite marketing opportunities for both our brands, including the enrichment of our customer base. Imperial’s marketing strength within Japan will ensure our continued presence in our most valuable Japan market.”

Effective April 1, 2009, Imperial Hotel will commence reservations service, sales, marketing and public relations activities within domestic Japan for Halekulani and Waikiki Parc Hotel.

The Tokyo-based reservations center will provide Halekulani and Waikiki Parc customers, Imperial Club members, and other Japan and international clientele with dedicated priority reservations service on behalf of Halekulani and Waikiki Parc Hotel.

Planning is underway for future alliance opportunities to include joint marketing and promotions in Tokyo and Hawaii.

The Imperial's president Tetsuya Kobayashi (top left photo) said, "The Imperial is delighted to be able to introduce the internationally acclaimed Halekulani resort and the Waikiki Parc to our many Japanese patrons.

“ With over a century of experience on both sides, the power of our shared professional human resources and our mutual spirit of hospitality to guests from around the world, we have in common a history of a superior quality of hotel industry culture.

“We anticipate our lengthy and diverse experience with urban hotels will dovetail most effectively with Halekulani's proven expertise as a leading resort and look forward to exploring opportunities for personnel development exchanges and cultural promotions that should strongly compliment both of our corporate brands and market place identities."

Halekulani Corporation owns and operates globally-acclaimed luxury resort Halekulani and Waikiki Parc Hotel in Hawaii. Halekulani represents a luxury hospitality legacy of unique and iconic proportions.
Halekulani, also known as the “House Befitting Heaven”, was named by Hawaiian fishermen over a century ago.

More than a brand, Halekulani embodies a profound lifestyle experience of immeasurable hospitality, fusing the indigenous cultural qualities of Hawaii with innovative personalized service.

Consistently ranked as one of the world’s finest hotels, Halekulani, on the Beach at Waikiki, has been hosting discerning travelers to Waikiki since 1917.

Setting new industry luxury standards with its re-opening in 1983, Halekulani’s reputation and legacy for gracious hospitality, impeccable service and magnificent cuisine continues today, unparalleled on Oahu and renowned throughout the world.

Halekulani Corporation is a wholly-owned subsidiary of Mitsui Fudosan America, which is a wholly-owned subsidiary of Mitsui Fudosan Co., Ltd.

CONTACT:

Martha Pulido, Account Executive, Travel and Hospitality, evins communications, ltd.,
635 madison avenue, new york, ny 10022
DIRECT 212.377.3581 MARTHA.PULIDO@EVINS.COM

phone: 212.688-8200, fax: 212.935.6730 i http://www.evins.com/

Arbor Closes 6 Loans Totaling $34M in 6 States

Hidden Pointe Apartments in Stone Mountain, GA Gets $15M Fannie Mae DUS® Loan

UNIONDALE, NY-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $15,035,900 loan under the Fannie Mae DUS® product line to finance the 435-unit complex known as Hidden Pointe Apartments (top right photo) in Stone Mountain, GA.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.18 percent.

The loan was originated by Jay Porterfield, (top left photo) Vice President, in Arbor’s full-service Plano, TX lending office. “Arbor provided a loan to refinance this very attractive asset,” said Porterfield. “We are pleased to have had the opportunity to work with the Borrower on this transaction.”

Three DUS® Loans Totaling $13.2M Closed in 3 States

UNIONDALE, NY-– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of three (3) loans totaling $13,200,000 under the Fannie Mae DUS® product line. These loans include:

Cumberland Green Co-op, St. Charles, IL – Refinance of a 204-unit complex in the amount of $8,000,000 under the Fannie Mae DUS® product line. The 30-year loan amortizes on a 30-year schedule and carries a note rate of 6.64 percent.

Loma Vista West Coop, Kansas City, MO - 286-unit complex in the amount of $3,700,000 under the Fannie Mae DUS® product line. The 30-year loan amortizes on a 30-year schedule and carries a note rate of 7.15 percent.

North Pointe Apartments, (middle right photo) East Lansing, MI – 69-unit complex in the amount of $1,500,000 under the Fannie Mae DUS® Small Loan product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.23 percent.

The loans were originated by Michael Jehle, (middle left photo) Midwest Regional Director, in Arbor’s full-service Bloomfield Hills, MI lending office. “Out of these three transactions, two were new clients and one was a repeat client for Arbor,” said Jehle. “We were happy to utilize Fannie Mae to close these diverse deals with ease.”

Mountain Paradise Village in Las Vegas Receives $5.1M Fannie Mae DUS® Loan

UNIONDALE, NY– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $5,100,000 loan under the Fannie Mae DUS® product line for the 72-unit complex known as Mountain Paradise Village in Las Vegas, NV.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.37 percent.

The loan was originated by Ronen Abergel, (middle right photo) Director, in Arbor’s full-service New York, NY lending office. “Mountain Paradise Village came to us as a non-contiguous, condo-conversion,” said Abergel. “Arbor’s DUS® execution of this deal illustrates our ability to finance multifamily deals anywhere in the country.”

Elm Street Apartments in Manchester, NH Obtains $1M Fannie Mae DUS® Small Loan

UNIONDALE, NY-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,002,800 loan under the Fannie Mae DUS® Small Balance Loan product line to finance the 6-unit complex known as Elm Street in Manchester, NH.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.15 percent.

The loan was originated by John Kelly, (bottom left photo) Vice President, in Arbor’s full-service Boston, MA lending office. “This transaction represents our commitment to continue to provide quality small balance loans in very challenging capital market environments,” said Kelly.

CONTACT:

Ingrid Principe, Arbor Commercial Mortgage, 333 Earle Ovington Blvd., Suite 900,
Uniondale, NY 11553, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/

Hodges Ward Elliott Closes Year with Sale of Three Hotels

Remainder of Larger Portfolio Expected to Close in First Quarter

ATLANTA, GA—Hodges Ward Elliott, Inc. (HWE), the nation’s premier hotel brokerage and investment banking firm, represented Vista Host in the sale of three properties to an undisclosed buyer on the last day of 2008.

The properties are Hampton Inns in Pittsburgh, Pa., (bottom left photo) Ft. Lauderdale, Fla. (top right photo) and Jackson, Tenn.

HWE represented Vista Host on a fourth property, the Courtyard by Marriott in Jackson, Tenn. earlier in December, and additional properties from the same portfolio are scheduled to close early in 2009.

“Savvy, long-term hotel investors with solid financial resources and strong relationships with lenders take full advantage of the real estate cycle, selecting the most opportune times to acquire,” said Bill Hodges, (bottom right photo) a principal of HWE.

“From a historic perspective, we are entering the initial phase of a major hotel acquisition opportunity period that holds significant upside potential. Over the next five years, these strategic buyers will generate significant returns.”

Founded in 1975, HWE is the world’s leading hotel brokerage and investment firm, completing more than $20 billion in hospitality real estate and investment banking transactions over the past 11 years.

Contact: Jerry Daly or Chris Daly, (703) 435-6293

C. Michael Kojaian Appointed Chairman of Grubb & Ellis

SANTA ANA, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has announced its board of directors has unanimously appointed C. Michael Kojaian non-executive chairman of the board, effective immediately.

Kojaian replaces Glenn L. Carpenter, who is stepping down as chairman, but remains on the board as an independent director.

“We couldn’t be more appreciative of Glenn’s guidance and contributions over the past 12 months. As chairman, his leadership and insight were invaluable during a period in which both our company and the industry saw considerable change,” said Gary H. Hunt, interim chief executive officer of Grubb & Ellis. “We are extremely fortunate to continue to have Glenn as a member of our board.”

Hunt called Kojaian’s appointment as chairman “extremely positive” for the company.

“Michael is one of the most astute real estate executives in our industry today, and he has been one of the company’s biggest supporters for more than a decade,” he said.

“No one is more qualified than Michael Kojaian to serve as chairman of Grubb & Ellis. As the company’s largest stockholder, his interests are clearly aligned with our long-term success, which should be extremely beneficial to our clients, our employees and our stockholders.”

Kojaian has been a member of the Grubb & Ellis board of directors since 1996. He served as chairman from June 2002 through the completion of the company’s merger with NNN Realty Advisors, LLC in December 2007. He is president of Kojaian Ventures, LLC and executive vice president of Kojaian Management Corporation, both of which are investment firms. He is also a director of Arbor Realty Trust, Inc.

Carpenter joined the NNN Realty Advisors board in 2006, and became a member of the Grubb & Ellis board of directors following the completion of the merger. He was named chairman in February 2008.

Contact: Janice McDill, 312.698.6707, janice.mcdill@grubb-ellis.com

Grubb & Ellis|Commercial Florida negotiates long-term Leases in Maitland and Heathrow, FL

ORLANDO, FL. – Grubb & EllisCommercial Florida has negotiated two long-term leases that total more than 12,370 square feet of Class A office space in Maitland and Heathrow.

Anne Deason, (top right photo) associate vice president and Andrew E. McCaw, (top left photo) FMA, senior vice president, Office Services Group at Grubb & EllisCommercial Florida, negotiated a new lease agreement for 8,768 square feet in the 400 Heathrow building at 400 International Parkway representing the tenant Maxim Healthcare Services, Inc.

The landlord of the 109,608 square foot building is Colonial Properties Trust of Lake Mary.

At Maitland Center, Deason and McCaw represented the tenant, Employment Guide, in negotiating the lease of 3,604 square feet in the 901 Maitland Center building located at 901 N. Lake Destiny Drive. DRA/CLP 901 Maitland Orlando LLC is the landlord for the 155,730 square foot building.

Mike Caridi of Colonial Properties represented the landlords in the transactions.

Contacts:

Anne Deason, 407.481.5411, adeason@commercialfl.com

Andy McCaw, 407 481, 5301, amccaw@commercialfl.com

Larry Vershel Communications, 407 644 4142, lvershelco@aol.com

Alabama Senior Housing Property Sells for $4.4M

TAMPA, FL --CLW Health Care Services Group is pleased to have represented a national health care REIT in the sale of Ridge View at Meadow Brook, (top right photo) an 84-unit Assisted Living Facility located in Birmingham, Alabama.

Built in 1999, the single-story building contains 48,058 square feet and is situated on 6.5 acres. A wing of the building containing 17,967 square feet was closed at the time of sale.

The purchase price was $4,400,000 ($52,381 per unit).

Contact: Allen McMurtry, 813.349.8349, amcmurtry@clwrg.com

Ardent Hotel Advisors Partners with Steven Surgent to Form Ardent Hotel Investors

SCOTTSDALE, AZ—Ardent Hotel Advisors, one of the nation’s premier hotel management and asset management companies, has partnered with Steven Surgent to form Ardent Hotel Investors (AHI), a real estate private equity firm that will focus on the acquisition of value-added hospitality opportunities throughout the U.S.

As principal of AHI, Surgent will be responsible for launching the company’s hospitality investment platform in addition to providing support to Ardent Hotel Advisors in sourcing third-party management contracts.

“In 2008, we continued to focus on growth, and the addition of Steve to our senior management team gives us the bench strength and expertise we will need to accelerate that growth,” said Jim Evans, Ardent principal and CEO.

“We have entered the most turbulent times since at least the hotel real estate collapse in the early 1990s. Steve’s extensive background in hospitality real estate and finance will be critical over the next 12 to 36 months, as the industry responds to and finds ways to deal with the current global credit crisis.”

“I believe today’s historic economic and capital market difficulties will create the most compelling buying environment since 2001-2003, perhaps even the RTC days of the early 1990’s,” Surgent said.

“As economic and real estate market fundamentals continue to deteriorate through next year and property values continue to fall, we believe the next 12 to 36 months will represent an opportune time to put our capital and turn-around capabilities to work.

"Our collective investment and management expertise will provide complete control of the value-creation process from start to finish, a key component to our growth strategy. Focusing primarily on premium select- and full-service branded hotels, we will target both distressed opportunities and traditional value-added properties at what we believe will be significantly higher cap rates than the past four years.”

Contact: Jerry Daly, Patrick Daly, (703) 435-6293

Grubb & Ellis Issues Statement on Passing of Co-Founder Hal Ellis

SANTA ANA, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, issued the following statement in response to the Jan. 6, 2009 death of company co-founder Harold A. “Hal” Ellis. (t0p right photo by Steve Ringman of San Francisco Chronicle)

“We were saddened to learn of Hal Ellis’ passing following his courageous and prolonged battle with metastatic melanoma cancer,” said Gary Hunt, (top left photo) interim chief executive officer. “We know he will be missed by many and share our deepest condolences with his family. For those of us here at Grubb & Ellis, there is a special appreciation for what Hal accomplished during his career.”

Ellis served as Grubb & Ellis’ chairman and chief executive officer until 1992. Under his leadership, Grubb & Ellis grew into one of the largest diversified real estate service companies in the United States.

In addition, he served as a director of Koll Real Estate Group and is a past director of two publicly traded real estate investment trusts and a large Canadian real estate development company.

Most recently, he was president of Ellis Partners LLC, a Northern California real estate development and investment company he co-founded with two partners in 1993. Ellis also served as chairman and chief executive officer of CataList Homes, Inc., a residential real estate brokerage company based in Southern California.

He held the distinguished Counselor of Real Estate designation and was active in number of industry and business organizations.

“We were thrilled to have Hal participate in Grubb & Ellis’ 50th anniversary celebration last year, where his warmth, humor and intelligence were on full display,” said Hunt. “We honor his accomplishments and mourn his passing. His memory will be an inspiration to us all.”

Contacts:

Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com

Janice McDill, 312.698.6707, janice.mcdill@grubb-ellis.com

MBA Chairman Kittle Announces John A. Courson as President and Chief Executive Officer

WASHINGTON, D.C. - - David G. Kittle, (middle left photo) CMB, Chairman of the Mortgage Bankers Association (MBA) announces the appointment of John A. Courson, (top right photo) as MBA's President and Chief Executive Officer effective January 1.

Courson, currently serving as MBA's Chief Operating Officer, succeeds Jonathan L. Kempner who in July announced that he would leave MBA effective December 31, 2008.

"John brings to MBA a wealth of experience and industry knowledge, and I am confident in his leadership both in terms of business savvy, political and advocacy skills," said Kittle. "We are fortunate to have John as an integral part of MBA's leadership as we steer our association to represent the real estate finance industry and continue to build America's communities."

Courson has previously served MBA as Chairman in 2003 and as a member of MBA's Board of Directors, the Residential Board of Governors (RESBOG) and the Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG).

He has previously served as Chairman of RESBOG, MBA's Legislative Steering Committee, MORPAC MBA's State and Local Liaison Committee and Mortgage Reform Task Force. He has also served as President of the California Mortgage Bankers Association and Michigan Mortgage Bankers Association, and as a Director of the Texas Mortgage Bankers Association.

"I look forward to leading MBA on behalf of its members to stabilize the mortgage market and restore faith in our industry by helping struggling homeowners get help to stay in their homes and making sure the recent mistakes and excesses that landed us in the current difficulty are never allowed to be repeated, all the while ensuring that Americans have the opportunity to have an affordable roof over their head," said Courson.

Courson began his career in mortgage banking working for Kassler & Co. in Denver, Colorado, while attending high school and college. He has served as President and Chief Executive Officer of Central Pacific Mortgage Company, President and Chief Executive Officer of Westwood Mortgage Corporation and as President and Chief Operating Officer of Fundamental Mortgage.

In 2004, Courson was appointed by Governor Arnold Schwarzenegger to the Board of Directors of the California Housing Finance Agency. He was Chairman of the Board prior to coming to MBA.
CONTACT: John Mechem, (202) 557-2924, jmechem@mortgagebankers.org

Holliday Fenoglio Fowler Brokers $450M in New Loans

HFF Closes Large-balance Loan Sales Totaling $386.25M on Regional Malls

PITTSBURGH, PA--Through its Loan Sale Advisory services, HFF exclusively represented Principal Commercial Funding II, LLC (PCF II), a joint venture between Principal Financial Group and U.S. Bank N.A. in consummating the sale of two large-balance performing loans on three regional malls owned and managed by General Growth Properties of Chicago and located in secondary and tertiary markets.

PCF II originated the loans in November 2007 for securitization. The loans had five-year terms at origination and were underwritten on an interest-0nly basis. The three malls include the Fox River Mall (top left photo) in Appleton, WI; The Oaks in Gainesville, FL; and Westroads Mall in Omaha, NE.

The loans were sold servicing released.

For additional information, please contact:

Stuart Salins, Senior Managing Director, 312 528 3678, ssalins@hfflp.com

Whit Wilcox, Senior Managing Director, 212 632 1825, wwilcox@hfflp.com (top right photo)

William Mitchell, Managing Director, 312 980 3607, wmitchell@hfflp.com

HFF arranges $16.3M refinancing through Freddie Mac for West Texas multifamily community

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $16.3 million refinancing through Freddie Mac for Ashton Pointe, (middle right photo) a 366-unit multifamily community in Lubbock, Texas.

HFF senior managing director Mona Carlton (middle left photo) worked exclusively on behalf of McDougal Companies to secure the 10-year, 5.64% fixed-rate loan, which will be also be serviced by HFF.

Over the past 26 years, the McDougal Companies has grown into four separate divisions including McDougal Properties, McDougal Realtors, McDougal Land Company and McDougal Construction.

Ashton Pointe is located at 308 Frankford close to West Loop 289 in Lubbock. Completed in three phases (1996, 2000 and 2003), the property is currently 92% occupied.

Contacts:

MONA K. CARLTON, HFF Senior Managing Director, (214) 265-0880, mcarlton@hfflp.com

KRISTEN M. MURPHY, HFF Associate Director, Marketing (713) 852-3500 krmurphy@hfflp.com

HFF secures $44M refinancing on behalf of Walton Street Capital and T. Stacy and Associates for downtown Austin property

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has secured a $44 million refinancing of a downtown office property in Austin, Texas owned by a joint venture between Walton Street Capital and T. Stacy and Associates.

HFF managing director Andy Scott (middle left photo) and associate director Brandon Chavoya worked exclusively on behalf of the borrower in arranging the 30-month, adjustable-rate loan with CapitalSource Finance, LLC.

Loan proceeds will facilitate future lease-up and fund capital improvement costs associated with the property.

The partnership purchased the property in 2004 and plans to hold it for continued value creation and future development initiatives.

“The property represents one of the most ideal locations in downtown Austin,” said Scott.

Comprised of a full city block in one of the primary growth corridors in downtown Austin, the property is situated at the intersection of 6th Street and Congress Avenue and is within walking distance of the Texas State Capital, the Austin Convention Center and the Federal Courthouse.

The property includes the 261,609-square-foot Bank of America Building (515 Congress), (middle right photo) a vacant parking garage situated on a 0.34 acre land parcel, a 0.48 acre land parcel currently improved with a 90,000-square-foot vacant commercial building, and a 0.81 acre covered land parcel that is scheduled to be developed into a 1,150-space parking garage.

The 26-story Bank of America Building is currently 90% leased to tenants including Bank of America, BDO Siedman, LLP and Manpower.

Contacts:

J. ANDREW SCOTT, HFF Managing Director, (214) 265-0880, ascott@hfflp.com

C. BRANDON CHAVOYA, HFF Associate Director, (214) 265-0880, bchavoya@hfflp.com

KRISTEN M. MURPHY, HFF Associate Director, Marketing, (713) 852 3500,

krmurphy@hfflp.com

HFF secures $3.5M financing for Homewood Suites – Keystone at the Crossing in Indianapolis

INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) has secured $3.5 million in financing for a 116-room Homewood Suites (bottom left photo) in northern Indianapolis, Indiana.

Working on behalf of the borrower, HFF managing director Jon Everson (bottom right photo) placed the 10-year, 6.0% fixed-rate construction/permanent loan with a correspondent life insurance company lender.

HFF will service the non-recourse loan. Proceeds from the loan are being used to renovate the hotel as per the requirement of Hilton’s license extension and Product Improvement Plan.

The Borrower is affiliated with an Indiana-based hotel management company employing approximately 1,100 associates and representing nearly 1,900 sleeping rooms.

Homewood Suites is located at 2501 East 86th Street close to Interstate 465 and just west of Keystone at the Crossing.

All suites feature fully-equipped kitchens with refrigerator, microwave and work spaces with two-line speaker phone including data ports and voicemail. Hotel amenities include an outdoor pool, fitness center, business center and complimentary high-speed wireless internet access.

Contacts:

JONATHAN P. EVERSON, HFF Managing Director, (317) 630-3191, jeverson@hfflp.com

KRISTEN M. MURPHY HFF Associate Director, Marketing (713) 852-3500 krmurphy@hfflp.com

Hotel Spas in the U.S.: Will Revenue and Profit Growth Continue in 2009?

LOS ANGELES, CA, Jan. 6, 2009 – Spas continued to contribute to the top and bottom lines of U.S. hotels in 2007.

Total spa department revenue increased 5.0 percent from 2006 to 2007, while spa department profits grew 5.8 percent.

These are among the findings reported in PKF Consulting’s (PKF-C) recently released 2008 edition of Trends in the Hotel Spa Industry, a report that examines the revenue, expenses, and profits of hotel-operated spas in the United States.

“Lodging industry owners and operators fully realize that a well-run spa operation can benefit a hotel in many ways,” said Bruce Baltin,(top right photo) senior vice president in the Los Angeles office of PKF Consulting.

“In addition to the monetary contribution, a spa can help define the market position of a hotel, provide a competitive asset that is attractive to multiple demand segments, and diversify a hotel’s revenue stream. It is this type of product differentiation that managers hope will provide a competitive advantage in 2009.”

During challenging times like these, the spa industry has the potential to be buoyant. However, it is not invincible.

“The dynamics of the spa industry enable it to persevere longer than other industries for several reasons,” Baltin noted. “A large portion of its consumers are affluent, an increase in stress can further emphasize the importance of staying healthy, and in difficult times people tend to seek out experiences rather than material objects.

" All that being said, hotel spa usage will likely decrease due to expected declines in occupancy rates and guest counts for the lodging industry in general.” In its December 2008 Hotel HorizonsSM report, PKF Hospitality Research (PKF-HR) is forecasting that the typical U.S. hotel will experience a 5.3 percent drop in occupancy in 2009.

The 2008 Trends in the Hotel Spa Industry report analyzes the 2007 financial performance of 116 spas operated by hotels located throughout the United States.

In aggregate, the 116 hotels that voluntarily submitted their data for the survey averaged 405 guest rooms in size and achieved an occupancy of 70.8 percent and average daily room rate of $257.14 in 2007.

Both urban and resort hotel spas were included in the research, while day spas, medical spas, destination spas, and hotel spas that independently lease space were excluded. For the purposes of this research, departmental profits are calculated before deductions for undistributed expenses and fixed charges.

Spa Revenues

Since the number of occupied rooms for the survey sample remained relatively flat (0.2 percent decline), the 5.0 percent rise in spa revenue was likely due to an increase in the price for spa services, increase in number of services utilized per hotel guest, or a stronger mix of local patronage.

“Recent research has shown that although consumers are tightening their belts, they are still traveling albeit with a different mindset and expectation of services.

"People increasingly are requiring greater value and a heightened level of experience. Hotels with spas can meet those needs by providing promotional packages, special offers, and discounts,” observed Gabrielle Lerner, associate in the Los Angeles office of PKF-C.

For the hotel spas that participated in the survey, department sales represented 3.9 percent of total hotel revenue in 2007. Within the spa department, massage continued to be the greatest source of revenue (55.6 percent), followed by skin care and body work (18.8 percent) and salon services (10.7 percent).

Spa Expenses

Overall, spa department expenses increased 4.7 percent from 2006 to 2007, driven mainly by a 6.6 percent increase in labor costs. Like all departments within a hotel, labor-related costs are the biggest operating expense for spas, representing 57.2 percent of department revenue. “Labor costs in urban hotel spas tend to be somewhat higher than in resort spas. Urban hotel spas have lower revenues and inconsistent demand for services making scheduling more complicated,” Lerner said.

Spa Profits

The average departmental profit margin for the spas in the survey sample was 24.1 percent. For comparison purposes, the average profit margin for all other operated departments in PKF’s Trends in the Hotel Industry survey was 29.4 percent.

From 2006 to 2007, hotel spa department profits grew 5.8 percent. Profit growth was greater for urban spas (12.3 percent) versus resort spas (4.6 percent).

“While 5.8 percent is a healthy rise over the previous year, it was less than the 6.7 growth rate for total hotel operated department income, which demonstrates the evolving spa industry still has room to improve,” Baltin noted.

Hotel Spas In 2009

“As U.S. hotels are forecast to struggle with declines in occupancy, ADR, and revenue, we believe there is an opportunity for spa operators to capitalize on operational and competitive advantages,” Baltin said.

“Hotel spas are an important amenity to all market segments and should be leveraged with regards to meetings, conventions, and other special events. Innovative marketing can also be created to promote the spa as a ‘staycation,’ thereby providing a refuge for local residents.”

PKF Hospitality Research (PKF-HR), headquartered in Atlanta, is the research affiliate of PKF Consulting, a consulting and real estate firm specializing in the hospitality industry. PKF Consulting has offices in Boston, New York, Philadelphia, Washington DC, Atlanta, Indianapolis, Houston, Dallas, Bozeman, Sacramento, Seattle, Los Angeles, and San Francisco.

Contacts:

Bruce Baltin, Senior Vice President, PKF Consulting, 865 South Figueroa Street, Suite 3500, Los Angeles, CA 90017. (213) 680-0900, ext 3309.

Chris Daly or Jerry Daly, Daly Gray Public Relations, 620 Herndon Parkway, Suite 115, Herndon, VA 20170. (703) 435-6293.

Davidson Hotel Co. Signs Management Contract for The Wynfrey Hotel in Birmingham, AL

MEMPHIS, TN, Jan. 6, 2009—Davidson Hotel Company, one of the nation’s largest independent hotel management companies, today announced that it has signed an agreement to operate the 329-room Wynfrey Hotel (top right photo) in Birmingham, Ala.

The hotel is owned by Jim Wilson & Associates, a Montgomery-based real estate ownership group.

“The Wynfrey Hotel has long been considered one of the Southeast’s finest hotels and has successfully catered to Birmingham’s corporate and social needs for more than two decades,” said John A. Belden, (middle left photo) Davidson’s president and chief executive officer.

“We are honored to have the opportunity to manage this classic hotel and build on the great foundation laid by Jim Wilson and his team. We look forward to implementing our proprietary management and sales systems to further enhance the guest experience and overall financial performance for ownership.”

“This is our first new management contract in 2009, and we look forward to building on our momentum of 2008 when we added 10 new management contracts to our portfolio,” said Steven A. Margol, (bottom right photo) Davidson’s executive vice president.

“We have always focused on growing our management portfolio selectively, working for well-respected owners with institutional quality assets, where we can bring our management expertise to the property and create additional value for ownership. In this instance, working with Jim Wilson and Associates on the renowned Wynfrey Hotel fits perfectly within our criteria.”

Located at 1000 Riverchase Galleria, the elegant Four Diamond hotel is connected to the Riverchase Galleria, the state’s largest enclosed shopping mall, which features more than 250 well-regarded, upscale stores and boutiques.

Additionally, the hotel is situated within walking distance of numerous restaurants, theaters, offices and additional shopping. The hotel is in close proximity to the Birmingham International Airport, downtown Birmingham, Hoover Metroplex, Birmingham Jefferson Convention Complex, Talladega Motorsports Park and many other local attractions.

Contacts:

Cyndi Norwood, Davidson Hotel Company, (901) 821-4155, cnorwood@davidsonhotels.com

Jerry Daly, Chris Daly (media), Daly Gray Public Relations, (703) 435 6293, jerry@dalygray.com

Meridian Capital Group Arranges Over $4M in Financing for Office Condo in Miami, FL

MIAMI, FL - Meridian Capital Group has arranged a loan in the amount of $4,359,500 for the refinancing of a 14-story office condo on Biscayne Blvd. The borrower was looking to secure an inventory loan for the remaining office condos with release clauses for each of the remaining units.

Noam Kaminetzky (top right photo) of Meridian’s Florida office successfully negotiated on behalf of the borrower to secure a rate of 6.75% over a 9-year term.

Contact: Dani Sabesan: 212 612-0109, dsabesan@meridiancapital.com

Marcus & Millichap Sells $15.85M Single-Tenant Office Building in Hunstville, AL

HUNTSVILLE, AL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a 99,197 square-foot single-tenant office building occupied by Science Applications International Corp. (top right photo) in Huntsville.

The sales price of $15.85 million represents $159.78 a square foot.

Joshua Volen, an associate vice president investments, and Andrew Slade, an associate in the San Diego office, represented the buyer, HPC Properties. Edwin Greenhalgh, the firm’s broker of record for the state of Alabama, assisted in closing this transaction.

“The biggest hurdle to closing this deal was obtaining financing, but Mark One saved the deal after 13 other banks had quoted nearly 200 basis points higher on the rate,” Volen shares.

Chad O’Connor, associate director of Mark One Capital in San Diego, assisted in providing $8.9million in financing to the borrower.

“The buyer had completed a 1031 exchange with this acquisition, and we achieved a 154 percent increased return from his original investments, or $360,000 on an annualized net basis.”

Located at 6725 Odessey Drive, this 99,197 square-foot high-quality office building is triple-net leased by Science Applications International Corp., a publicly traded Fortune 500 company with offices in more than 150 countries worldwide.

The property has excellent frontage along Odessey Drive. Constructed in 2007, the 6.7-acre property includes well-maintained landscaping and an attractive building design.

The property is located near Cummings Research Park, (middle left photo) the second-largest research park in the United States, and Interstate 565, as well as other main traffic arteries in the city.

In the submarket surrounding 6725 Odessey Drive, there are a number of large technology, communications and manufacturing companies, including Redstone Arsenal, Space and Rocket Center, Lockheed Martin Information Systems, Quadrum Telecommunications and Bevilacqua Research Corp.

SAIC revenue increased 11 percent from $8.3 billion in FYE 2007 to $8.9 billion.

Press Contact: Stacey Corso,Communications Department, (925) 953-1716