MK Capital Markets Secures Funding for Candlewood Portfolio

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. October 14, 2008

JULY 10, 2007. The Capital Markets Group of Molinaro Koger (MK) announced today that the firm secured debt and equity for the Glenmont Capital Management/American Hotel Development Partners joint venture to construct three Candlewood Suites properties in select U.S. markets.

The first development property of Sarasota-based American Hotel Development Partners, LLC (AHDP) and affiliates of New York-based real estate investment firm Glenmont Capital Management, LLC, is a 112-room Candlewood Suites Hotel located in Columbia, South Carolina, which broke ground last month.

'The principals of American Hotel Development Partners are highly adept, accomplished hoteliers with development and operational expertise,' commented Ed Blum, Managing Director of MK's Capital Markets Group. 'It was a pleasure to assist them in sourcing both the debt and equity pieces at attractive terms and rates, thus improving the projected return on their investments.'

Specialty Finance Group LLC, a subsidiary of The Bankers Bank, provided the debt, in the form of construction/mini-perm loans, to the joint venture. Greg Friedman, Senior Vice President of Specialty Finance Group, worked with Ed Blum to facilitate the debt portion.

'This project ideally fit our hotel lending parameters,' remarked Mr. Friedman. 'More than 70% of the $1 billion which Specialty Finance Group anticipates lending to the hotel industry in 2007 will take the shape of construction/mini-perm loans to projects with top tier brands and development teams.'

Equity for the joint venture partnership's undertaking is provided by Glenmont Capital. Bracken White, Managing Director of MK Capital Market's west coast office, and a specialist in placing equity for the hospitality industry, facilitated the Glenmont/AHDP joint venture.

'Following my analysis of the AHDP opportunity and goals, several potential equity partners occurred to me,' commented Mr. White. 'Glenmont, however, was clearly one of the best partners for this scenario given AHDP's long-term development and management aspirations. It is a pleasure to bring together these entities and facilitate their mutual goals.'

In total the AHDP/Glenmont partnership plans to build a total of 10 Candlewood Suite hotels during the next three years.

Larry Kestin, Managing Principal of Glenmont Capital Management, LLC, remarked, 'MK's Capital Markets Group conveyed the entire project, AHDP's capabilities and the opportunity in a sophisticated and compelling package. As a result, we believe we are tapping a growing segment of the hotel market where we can achieve extraordinary returns for our investors. We are pleased to have ventured with a quality group in AHDP, the principals of which we believe are well positioned to take advantage of the opportunities in the market.'

The principals of the AHDP/Glenmont joint venture anticipate making additional development announcements in the coming weeks.

'The resources of American Hotel Development Partners, LLC provides a significant capital base to fuel continued growth,' remarked Clyde Harris, President of AHDP. Prior to forming AHDP with his partners, Mr. Harris served as an executive within hotel branding giant InterContinental Hotels Group where his role was Director of Brand Development for Candlewood Suites.

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.