The Procaccianti Group Acquires Hyatt Regency Lexington

TPG Portfolio expands to 17th State, Surpasses 12,000 Guestrooms

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. October 14, 2008

PROVIDENCE, RI, Dember 4, 2006. The Procaccianti Group (TPG), announced today the purchase of the Hyatt Regency Lexington. Located in Lexington, Kentucky, the hotel was purchased from Goldman Sach's Whitehall Street Real Estate Fund and affiliates of Highgate Holdings for an undisclosed amount. The hotel will continue to operate as a Hyatt Regency under a license agreement with Global Hyatt Corporation.

"Lexington is a very dynamic hospitality market," said Procaccianti Group Chief Investment Officer Rob Leven. "We think that the Hyatt Regency has the potential to be the premiere hotel in the market due to its location at the very center of downtown Lexington along with its connection to Lexington Center and Rupp Arena. Our extensive plans for renovating and positioning this hotel will again establish the Hyatt Regency in its rightful place as the true market leader."

Global Hyatt Corporation has recently developed a limited franchise program for a select group of qualified operators for hotels that meet certain criteria. "TPG has demonstrated the proven expertise and systems to maintain Hyatt's exacting standards, and the Hyatt Regency Lexington is a good fit for our program," said Steven R. Goldman, Global Hyatt Corporation's executive vice president of acquisitions and development.

As a new franchise operator for Hyatt, TPG will look to continue to grow its portfolio of hotels by adding Hyatt to its stable of brands. "We are honored to be approved as a franchise operator by Global Hyatt Corporation, and we intend to deliver the quality and high guest satisfaction that distinguishes Hyatt Regency convention center hotels from those of other upscale brands," Leven said. "TPG will look to bring other new acquisition and development opportunities to the Hyatt system."

The 365-room Hyatt Regency Lexington is an integral component of a mixed- use development known as Lexington Center. Lexington Center encompasses a downtown city block bordered by Broadway to the east, West High Street to the south, Patterson Street to the west and Vine Street to the north.

The Center, which completed a twenty-four month, $52-million renovation and expansion in September 2004, includes the Lexington Convention Center, which has 66,000 square feet of exhibition space and 40,000 square feet of meeting rooms. Lexington Center also offers the 23,600-seat Rupp Arena, home of the University of Kentucky Wildcats; the Lexington Opera House, a vintage theatre that seats more than 1,000; and the Shops at Lexington Center, a 75,000-square-foot shopping mall.

TPG's expertise includes working closely with entities similar to the Lexington Center Corporation. "We have a great track record of coming in and building strong relationships between the headquarter hotel and the convention center," said Leven. "We plan to continue to build upon the positive relationship that the Hyatt Regency currently has with Lexington Center and the Downtown Development Authority."

Downtown Development Authority president and CEO Harold Tate told Tom Martin of Business Lexington, "This is a great step in the continuing positive efforts toward the redevelopment of downtown. With the completed renovation of the Lexington Center, the rehabilitation of the Hyatt Regency, the completion of 500s on Main and all the other activities downtown, our downtown will become the 'Gem' of the Bluegrass."