Acquisitions & Hotel Openings

K Partners Purchases Mission Inn Pismo Beach, CA

July 13, 2010 - K Partners Hospitality Group, LP today announced the purchase of the Mission Inn Pismo Beach in San Luis Obispo County, Calif.

K Partners finalized the purchase of the distressed property in late May from a Gulfstream Capital Corporation entity based in Santa Barbara, Calif. Craig Stevenson, President & COO of Gulfstream negotiated the transaction and the deal was brokered by Harry Pflueger, principal of Maxim Hotel Brokerage based in Newport Beach, Calif.

The 120-room hotel is convenient to a variety of attractions located in both San Luis Obispo County and Pismo Beach, including numerous wineries, recreational facilities, as well as California Polytechnic State University and the National Guard. The property will be renovated to meet the Hilton Garden Inn Generation 7 prototype standards and is currently scheduled for conversion by November of 2010. The facilities will include 1,600 square feet of meeting space, renovation of the food and beverage facilities consistent with Hilton standards, a 24-hour Pavilion Pantry convenience market, an outdoor pool and spa, a fitness center and a business center. During renovations the property will remain open to the public.

“We are excited about our recent acquisition of the Mission Inn and our subsequent plans to bring it into the Hilton family of hotels,” said Mark Crisci, Executive Vice President, Investments & Development for K Partners. “This was an opportunity to gain a foothold in a high barrier-to-entry coastal California market. We look forward to tapping the property’s full potential and continuing to grow our strong partnership with Hilton Worldwide.”

The overall deal itself was complicated in that Gulfstream had previously acquired the first mortgage on the Mission Inn from a Central California based bank and then orchestrated a deed in lieu of foreclosure transaction which closed simultaneous with the K Partners sale. For the benefit of K Partners, Gulfstream also arranged an attractive acquisition financing package, which included a first mortgage assumption arrangement and a second mortgage provided by Gulfstream.

Commenting on the deal, Craig Stevenson of Gulfstream said, “K Partners represents an extraordinarily professional and capable hotel company who performed each step of this very complex transaction as contractually promised. We look forward to future business together and wish them the best in repositioning the Mission Inn for long-term growth.

With the purchase of the Mission Inn, K Partners currently has 22 hotels open and operating in its portfolio with plans to add additional facilities in the near future.

K Partners Hospitality Group, LP specializes in the development, construction, management and operation of hotel properties throughout the United States. K Partners has forged relationships with some of the biggest names in the industry, inluding Hilton, Marriott and Intercontinental Hotels. For more information, visit www.kpartnersusa.com

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