Rockbridge and TPG Hospitality Announce Joint Venture Hotel Development

Contemporary AC Hotels by Marriott to Break Ground in San Jose, California

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. January 20, 2015

COLUMBUS, Ohio - January 20, 2015 - Rockbridge and TPG Hospitality today announced a joint venture to develop and operate the AC Hotel in San Jose, California, the first AC Hotels by Marriott in California.

The property, located at the corner of W. Santa Clara St and Highway 87, is in the epicenter of the Silicon Valley technology industry, with Apple, Google, Facebook, eBay, Adobe and Cisco all within driving distance. The hotel is also close to major attractions such as SAP Center, San Jose McEnery Convention Center, San Jose Earthquakes Stadium, Levis Stadium and San Pedro Square Market.

“Rockbridge knows the demands of Millennials and other sophisticated travelers and will respond in the strategy and execution on this great hotel," said Rockbridge president & CEO Jim Merkel. "The AC Hotels by Marriott brand is a sleek, modern brand with an urban approach to design and it's a perfect fit in one of the hottest work-live-play hubs in the country."

With a projected opening in Spring 2016, the hotel will include 210 guest rooms featuring 9-ft ceilings, bar and lounge with signature cocktails, 900-square foot fitness center, open air pool and courtyard, meeting space and two high-tech breakout rooms.

“TPG's continued expansion efforts include the development and operational management of lifestyle-oriented, focused-service products,” said Paul Sacco, TPG Hospitality's chief development officer. “The new AC Hotel in San Jose will deliver an ideal guest experience to complement the energy, technology and character of the market.”

The new AC Hotel in San Jose will be among the first built in the United States. AC Hotels by Marriott are contemporary, cosmopolitan and customized for the modern traveler looking for a new way to experience the city. The AC brand currently being introduced to the U.S. has enjoyed a strong international presence with hotels in Spain, Italy, Portugal and France. Growth plans for the brand include more than 50 additional hotels set to open within the next three years throughout the U.S. and Latin America.

The property will be the first LEED Gold Certified hotel in San Jose, providing environmental and operational efficiencies. This level of Leadership in Energy & Environmental Design (LEED) shows the commitment by RB Hotel Development and TPG Hospitality to add value at every turn and support the priorities and interests of the San Jose residents.

About Rockbridge:

Rockbridge is a private equity firm that invests in real estate. Over the past 20+ years, it has made more than 330 hotel investments in 44 states in transactions worth more than $5 billion. Through its deep in-house experience and strong foundation of industry relationships, Rockbridge has delivered a track record of high absolute returns across multiple cycles and is a leading investor in hospitality. Rockbridge Hospitality Fund VI L.P, its largest fund to date, well exceeded its target capital raise and closed with $438 million of subscriptions from leading institutional and other private investors.

About TPG Hospitality:

TPG Hospitality (est. 1985) ranks in the top five largest U.S. hotel management companies with an operating portfolio of more than 60 hotels representing nearly 20,000 guestrooms in 26 states. TPG Hospitality is an approved/preferred operator of all the major brands and delivers comprehensive hospitality management, renovation & construction management and ground-up/new-build hotel development services to public and private ownership entities including municipalities and pension funds. For more information, please visit www.tpghospitality.com.