Partnership Acquires Hawaii's OHANA Waikiki West Hotel

Renovation Planned to Start Spring 2014

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. November 05, 2013

Honolulu, HI - November 5, 2013 - A partnership formed by Rockpoint Group with BlackSand Capital (including local developers Kobayashi Group and The MacNaughton Group) and Evolution Hospitality today announced it has purchased the building and improvements that comprise the OHANA Waikiki West Hotel and entered into a long-term ground lease for the property with Queen Emma Land Company. The partnership plans to completely renovate and reposition the hotel under a phased renovation schedule. Outrigger Hotels Hawaii, which has overseen the hotel since the early 1970s, will continue to manage the property and any transition of management will be determined once the renovation plans are finalized.

Located at 2330 Kuhio Avenue, between Nahua and Walina Streets, the OHANA Waikiki West Hotel is situated in the heart of Waikiki, two blocks from Waikiki Beach and within walking distance of many of the area's most popular shopping, dining, and entertainment attractions. International Market Place, which is currently undergoing redevelopment, is located directly across the street on Kuhio Avenue; the proposed entrance for its newly announced anchor tenant Saks Fifth Avenue will face OHANA Waikiki West's main entrance.

The phased hotel renovation is slated to begin in spring 2014 and will be the first comprehensive renovation of the property since it opened in 1970, upgrading the asset into an upscale hotel. The renovation will transform the hotel with contemporary Hawaiian aesthetics, and will add a full-service restaurant and lounge. Other upgrades include a complete modernization of all guest rooms and extensive upgrading of the lobby and pool area. The development team is also pursuing a LEED Silver certification rating from the U.S. Green Building Council through the incorporation of earth-friendly building features such as LED lighting, low-flow water fixtures, and dual pane low-E windows.

About Rockpoint Group

Rockpoint Group, L.L.C. is a global real estate investment management firm headquartered in Boston, with additional primary offices in San Francisco, Dallas and London. The firm employs a fundamental value approach to investing and focuses on select product types and geographic regions, with a primary emphasis on opportunities in major coastal markets in the United States. Since its inception in 2003, Rockpoint has sponsored six private investment funds and four co-investment vehicles, with aggregate capital commitments of approximately $9 billion. The firm's six Managing Members have been working and investing together for 14 years and Rockpoint's Founding Managing Members have been working and investing together since 1996.

Through the Rockpoint sponsored funds and in prior investment vehicles, Rockpoint's Founding Managing Members have together invested nearly $11 billion of equity in over 325 transactions with a total capitalization of approximately $40 billion,

About BlackSand Capital

BlackSand Capital, LLC is a Hawaii-based real estate investment firm founded in 2010. Headquartered in Honolulu, BlackSand Capital focuses on generating attractive risk-adjusted returns for investors through strategic real estate investments. To date, BlackSand has invested in Pearlridge Uptown II in Aiea, King's Village Shopping Center in Waikiki, and the ongoing luxury residential developments of Waihonua at Kewalo and ONE Ala Moana in Honolulu. The company also previously invested in Maile Sky Court Hotel and provided financing for a newly renovated select service hotel, both located in Waikiki.For more information, please visit: blacksandcapital.com

About Kobayashi Group

Kobayashi Group is a boutique real estate development/investment firm that has been involved in real estate development in Hawaii for over 30 years. In addition to partnering with The MacNaughton Group on the Kapolei Commons and Kona Commons regional retail centers and the luxury residential condominium developments of Hokua at 1288 Ala Moana, Capitol Place, and ONE Ala Moana, the company has developed several residential subdivisions, luxury hotels, and government buildings throughout Hawaii, as well as the exclusive golf course master planned community of Kuki'o Golf and Beach Club on the Kona Coast of the Big Island. Kobayashi Group is also currently both an equity investor and a provider of development management services for the renovation of the Renaissance Wailea Beach Resort on Maui into the Andaz Wailea, and serves a similar role for Four Seasons Resort Hualalai and the adjacent Kona Village Resort on the Kona Coast of the Big Island. For more information, please visit: kobayashi-group.com

About The MacNaughton Group

The MacNaughton Group is a diversified group of companies that includes real estate development, leasing, retail operations, and various operating companies. Over the past several decades in Hawaii, the company has been directly involved in the introduction and development of a number of well-recognized projects and companies, including Kapolei Commons, Kona Commons, Waikele Factory Outlets, Starbucks Coffee, Target, Kmart, Costco, Whole Foods Market, P.F. Chang's, and the luxury residential condominiums Hokua at 1288 Ala Moana, Capitol Place, and ONE Ala Moana. The company is also a partner in Four Seasons Resort Hualalai and Kona Village Resort. For more information, please visit: tmghawaii.com

About Evolution Hospitality

Evolution Hospitality is a privately-owned, hospitality investment and management firm located in San Clemente, California. Properties include Hard Rock Hotel San Diego, Hotel Adagio San Francisco, Hyatt San Francisco Fisherman's Wharf, Courtyard Long Beach Airport, Hotel MdR - A DoubleTree by Hilton in Marina del Rey, and Desert Princess Palm Springs Golf Resort. For more information, please visit www.evolutionhospitality.com