Pyramid Sees Opportunities in Turbulent Economy

$7 Billion in Hospitality Assets Under Management

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. October 14, 2008

FEBRUARY 6, 2008. Officials of Boston-based Pyramid Hotel Group, a full-service, independent hotel company, today announced that it manages a portfolio of $7 billion in assets acquired in the past six years and plans to take advantage of market conditions during the current turbulent economy.

"Since our founding in 1999, we have accumulated a portfolio of nearly 50 managed and asset-managed properties," said Warren Fields, chief investment officer of Pyramid. "We've developed a wellspring of talent with expertise and experience in every aspect of the hospitality industry and assembled a team of more than 7,000 people that covers every aspect of hotel operations, asset management and project management. With the economy becoming more tenuous, we believe that hotel owners and investors will gravitate toward the most experienced operators with the most solid track records. We intend to take advantage of the opportunities that we believe will be available in the next 12 to 18 months."

Fields noted that Pyramid Hotel Group may be the only independent company whose senior management team members have served as a franchisor, franchisee, owner, operator and asset manager at some point in their career. "Because we have been on all sides of the hotel business equation, we understand the motivation and expectations of each," he noted. "We believe this gives us a competitive advantage in finding the most viable solutions for owners and investors and optimizing their results."

The company has in-depth experience and strong relationships with all of the major hotel brands. Its portfolio ranges from upscale, select-service properties to luxury hotels and world-class resorts, as well as highly regarded independent hotels. Pyramid's portfolio comprises 46 hotels and resorts with over 18,000 rooms, 19 golf courses and nine spas aggregating more than 240,000 square feet, as well as more than 1.5 million square feet of meeting space. The company's asset management division currently oversees more than $5 billion in real estate assets, and in the past six years, its project management division has completed more than $600 million in hotel renovations.

"Quality institutional owners and investors have two primary concerns in today's current environment," said John Hamilton, Pyramid Hotel Group's senior vice president, business development. "The first is to protect the asset's value in a difficult economy. The second is to find opportunities to improve revenues and profitability despite where we are in the business cycle.

"One of the areas we specialize in is the 'have nots': properties that have not been well managed, have not been well maintained or have not been well branded," he noted. "We often find that those properties also have not taken care of their people, which impacts the hotel at every level.

"Weaker and more poorly managed hotels will struggle in the current environment, especially if it continues to deteriorate," he added. "As a result, owners and investors will seek new management and strategic direction. We believe Pyramid Hotel Group is uniquely qualified to provide those services in the year ahead, and to position the hotels to slingshot ahead of their competition when the economy begins to accelerate. A hotel's operating success is a combination of a well thought-out strategic plan, quality management expertise and tireless dedication, all of which are our core strengths."

Hamilton noted that Pyramid also manages the "haves," exceptional hotels that have achieved and been recognized for their performance excellence. One such hotel is the Pyramid-managed Boston Harbor Hotel, which just received its fifth star this week.

Hamilton pointed out that Pyramid's core strengths are also reflected in the company's receipt of a number of industry accolades over the past few years. In 2007, the company was named Marriott Developer of the Year and Marriott Conversion of the Year. The prior year, the organization was named Hilton Developer of the Year, and in 2004, it was named InterContinental Developer of the Year and Hilton Deal of the Year.

"The foundation of our organization is highly successful hotel operations, which gives us a decided advantage in asset and project management," he noted. "We have a tremendous platform that includes operations expertise, proprietary systems, economies of scale and a deep talent pool. We have the confidence to match the returns we generate against the best in the industry. While the economic outlook remains difficult to predict, we believe Pyramid Hotel Group is well positioned to optimize results."