Molinaro Koger Opens Indian Subsidiary

Expands Hospitality Services Offered in India

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. October 14, 2008

SEPTEMBER 5, 2007. Robert Koger, President of Molinaro Koger (MK), announced today that the firm has significantly expanded the scope and depth of services MK offers to the hospitality industry in India by forming Molinaro Koger Hotels (India) Pvt. Ltd. as a wholly owned subsidiary of MK, and hiring several key personnel.

The formation of Molinaro Koger Hotels (India) Pvt. Ltd. marks the entry of the first specialized institutional hotel transaction advisor into India to provide development, branding, capital and brokerage solutions to the Subcontinent. MK has distinguished itself through its work on development, investment and disposition of hotel portfolios, high value and iconic assets worldwide. Recent MK transactions include the 732-room Westin Kierland Resort & Spa in Arizona, valued at $393 million USD (Rs. 1,572 crore), the Forte Village Resort in Sardinia, valued at EUR312 million Euros (Rs. 1,732 crore) and the Great Eastern Hotel in London, valued at $290 million USD (Rs. 1,160 crore).

Molinaro Koger Hotels (India) Pvt. Ltd. will provide hotel developers and owners a complete suite of services from project development, branding and contract negotiations, to financing, asset and portfolio management and brokerage and asset investment sales.

According to Abhijit 'Beej' Das, the Managing Director of MK in India, India's current RevPAR (revenue per available room) growth rate, which exceeds 30% per year, has brought and maintained institutional interest in hospitality to India's shores. Once here, however, institutional capital (both foreign and domestic equity and debt) has seen lower than expected deployment rates.

'Institutional capital thrives on credibility and market transparency which has often been missing here and something we at MK are confident we can help foster,' said Mr. Das. 'There is a lot of capital in the market, but it needs to find the right path to be able to flow. We can create those paths.

'There is a perception amongst some that India's new economic strength, including the phenomenal growth in the real estate and hospitality sectors, somehow is unrelated to global markets. I think the large percentage declines in the Sensex last week on the wake of the subprime market jitters in the US, even given India's limited exposure to the subprime market, reminded people that we are now in a global market where variables are often very interdependent,' added Mr. Das.

In this environment, where domestic and foreign forces influence the market, a deep understanding of global hospitality trends, capital, and brands will matter. 'Since 1959 Molinaro Koger has had one specialized focus: hotels. It is because of that focus and experience that we can credibly advise our Indian clients on how to maximize long term performance, including periods when market volatility causes liquidity issues or decreases in hotel demand cause hotels to have to compete for guests, as opposed to the current climate, where in many Indian markets, hotels are making easy money.'

As part of its expanded role in the Indian hospitality market, Molinaro Koger today announced several key new hires. Amitava Das, joins Molinaro Koger as the Vice President, India and will be responsible for overall corporate operation, administration and expansion for the firm's Indian presence. Prior to joining Molinaro Koger, Mr. Das managed a large team for worldwide infrastructure support for Fidelity Investments, a leading investment management and brokerage firm. During his tenure at Fidelity, Mr. Das played a significant role in the launch of the company's Bangalore, India facilities.

To fill the position of Strategic Advisor, India, Molinaro Koger has hired Amitabh Devendra, a hotel industry veteran whose career in the Indian hospitality industry spans more than 25 years. Prior to joining Molinaro Koger, Mr. Devendra was President, Hospitality & Leisure at Jones Lang LaSalle Meghraj, where he was responsible for a vast majority of that firm's hotel related transactions. His recent transactions include several with the Taj Group of Hotels, Lemon Tree Hotels, Accor Hotels, and Golden Tulip Hotels. Mr. Devendra began his hospitality career with the Oberoi Hotel Group, and has held positions with Hyatt, Le Meridien, Choice Hotels, and Trammel Crow.

Molinaro Koger also announced the addition of two additional talented individuals: Jacob Purackal has been hired as a Senior Manager. Prior to joining Molinaro Koger, Mr. Purackal served in the Transaction Services Group at the Mumbai offices of Cushman & Wakefield (India) Pvt. Ltd. Robert Smithson, who joins Molinaro Koger Hotels (India) Pvt. Ltd. from the United States, has extensive experience with land title issues important to international investors and lenders, having worked for Stewart Title Guaranty, an international title insurance and transaction services company.

'We are enthusiastic about opportunities in India, our commitment to the country, through the acquisition of these four talented and seasoned individuals, is unprecedented,' stated Robert T. Koger, President of Molinaro Koger, from the firm's Washington, D.C. area headquarters. 'Molinaro Koger now has the strongest hospitality transactions team in India. That is not only good for the firm, but great for the Indian hotel market,' added Beej Das.