MK Secures Financing for Acquisition of Reno-Sparks Holiday Inn

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. October 14, 2008

JULY 16, 2007. The Capital Markets Group of Molinaro Koger (MK) announced today that the firm secured debt totaling $14.9 million for the acquisition and renovation of a 220-room Quality Inn Hotel, Reno (Sparks), Nevada, by an affiliate of the Navnish Group.

The loan was provided by Ascent Real Estate Advisors, a private equity lending fund based in New York which specializes in the hotel industry. Navnish has retained Crescent Hotels & Resorts to manage the hotel which is undergoing a $6 million renovation and conversion to a Holiday Inn.

'Navnish is a highly adept, accomplished and energetic hotel company in an active acquisition mode,' commented Ed Blum, Managing Director of MK's Capital Markets Group who facilitated the financing for Navnish. 'It was a pleasure to assist them in sourcing a loan which provided attractive terms and rates, thus improving the projected return on their investments.'

Dean Benjamin, a Principal with Ascent Real Estate Advisors, confirmed that the Navnish acquisition was an excellent fit for his company's target loan type which is $20 million and smaller with significant opportunity.

'Ascent is a strong lender for entrepreneurs who require flexibility. We hold the loans that we make on our own balance sheet. As a result, we are extremely focused on the viability of each project we underwrite,' commented Mr. Benjamin.

'It is our experience that when Ed calls us about a project and says it is interesting he is worth listening to. Navnish was exactly as portrayed: A young, aggressive company with a strong entrepreneurial spirit. The Principals of Navnish are very detail focused and portrayed great confidence that they would execute their plans,' concluded Mr. Benjamin.

Navnish is actively pursuing hotel properties with upside potential in the Western U.S. as well as the Southeastern U.S. The Sparks, Nevada, Quality Inn is Navnish's fourth acquisition in the Mountain West in the last year.

"We are pleased to expand our portfolio with a presence in the growing Reno-Sparks market," said Vamsi Bonthala, Navnish Group Principal. "We look forward to completing the renovation and serving our guests with a high quality product.'

The area around the Quality Inn is growing rapidly with more than $1 billion in development currently underway including the Legends at Sparks Marina development (which will include more than 800,000 square feet of shopping and entertainment as well as a 1,000-room hotel casino and spa) and the Grand Sierra Resort redevelopment (which is slated to include a large waterpark).

Headed by individuals with more than 50 years combined experience in real estate and hospitality, Navnish is a real estate investment and development firm that focuses on the strategic acquisition, repositioning and development of full- and select-service hotels. Recently Navnish successfully acquired the Hilton Hotel, Sunrise/Fort Lauderdale, Florida, from Leisure Colony Management LLC in a transaction structured by MK's hotel real estate brokerage group.

During the last 12 months MK has structured more than $4.2 billion in hotel real estate transactions and funding worldwide, including such significant transactions as financing for Amanresort's Le M'el'ezin luxury ski resort in Courchevel 1850, in the French Alps, and the sale of the Westin Kierland Scottsdale, Arizona. For further information about this transaction and MK's capital markets expertise, please contact Ed Blum of MK's Capital Markets Group at 703.760.9600 or via www.mkhotels.com.