Davidson to Augment its Sliver Equity Focus with Third-Party Management

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. October 14, 2008

MEMPHIS, N, June 12, 2006. Davidson Hotel Company, one of the nation's largest full-service, independent hotel operators, today announced plans to double in size over the next five years. Currently ranked the 12th largest independent hotel management company with 2005 revenues of nearly $280 million, Davidson is projecting $400 million in annualized revenues in 2006 and targeting over $650 million by 2010.

"We will use several paths to achieve our growth goals, including third-party management contracts, acquisitions, development and continued strong internal growth from our current portfolio," said John A. Belden, president and CEO. "Internally, our RevPAR through the first third of 2006 grew a strong 17 percent, on top of a 15 percent increase in 2005 RevPAR.

"Davidson has excellent access to capital," he added. "Our institutional investor partners have more than $2 billion available to commit to hotel acquisitions and development."

Belden noted that when the company's senior management team and institutional capital partner, Bridgepoint Hospitality, acquired Davidson from industry veteran Chick Hill earlier this year, they had a strong sense of the true potential of the company. "We have a unique business model that has enabled us to form strong ties with a diverse group of institutional owners. We currently serve seven major institutional investors, including opportunity funds, pension funds, life insurance companies and publicly held companies, and are one of only a handful of larger management companies than can concurrently serve a multitude of clients.

"Part of the reason is that over the past 30 years, Davidson has developed unique, proprietary systems for operations, accounting and reporting, that are designed with the sophisticated institutional investor in mind. Our systems allow Davidson to budget, forecast and aggressively manage its properties, while providing our clients with the ability to view the success of their properties on a real time basis.

"We are not tied to a specific opportunity fund, REIT or publicly held company, but rather have long-term relationships and commitments from a growing number of sophisticated investors who believe hotel real estate should be part of their portfolio. We continue to seek out other institutional investors who want to build a business partnership that can generate superior returns. Over the years, we have primarily managed only those assets in which we have had an ownership interest. We are ready to leverage our expertise to other owners through third-party management and create the significant value in each asset that we've done so successfully for our partners."

John Belden joined the company in 1989 and is the President and CEO. Previously, John led the Business Development team during a period of unprecedented growth for the company, overseeing new management, acquisition and development opportunities for the company, as well as asset management and asset disposition responsibilities. Prior to Davidson, John served on the Concept Development team for Homewood Suites and later became its Director of Development - Western Region. John also worked in the Development and Market Planning Division of Holiday Corporation providing development services primarily to the Embassy Suites and Holiday Inn systems. Previous to Holiday Corporation, John worked in the Franchise/ Development area of The Residence Inn Company and started his hospitality career as a hotel consultant at Laventhol and Horwath. John is currently serving on the Hilton Owner's Advisory Council and the Doubletree Advisory Council. John obtained a degree from the Business College at Michigan State University with an emphasis in Hotel, Restaurant and Institutional Management.

Growth through Acquisitions and Development

Davidson has consistently been one of the most active investors in the industry, highlighted by more than $500 million in hotel transactions in 2005 alone. So far in 2006, the company has been involved in two transactions: the 368-room Los Angeles Radisson Westside and the 252-room Austin Capital Place Hotel, which currently is being extensively renovated and repositioned to a Hilton Garden Inn. In mid-June, Davidson expects to close on a large, upscale full-service hotel in the Midwest.

"We also are underway on an extensive upgrade of the 157-room Colonnade Hotel in Coral Gables, Fla. and will convert the hotel to the Westin brand in late 2006," he noted. "In addition, we will manage the 225-room Westin Park Place, Annapolis, Md., which currently is under construction and scheduled to open in the spring of 2007. We are well positioned to use our in-depth expertise in construction / renovation, knowledge of major markets and strong relationships with franchisors to play a meaningful role in future ground up developments. Davidson also is forging relationships with strong national and regional developers to create new properties. We are currently looking at a number of development opportunities, as well as acquisition candidates."

Davidson will continue to target three and four-star hotels in major metropolitan areas, concentrating on the upscale brands of Hilton, Marriott, Starwood, InterContinental and Radisson. The company is attracted to properties that can benefit from strategic renovation, repositioning and rebranding. In addition, the company will seek select boutique/independent properties and premium-branded select-service assets in strategically important locations. "We have the infrastructure and systems in place to double in size over the next five years, while continuing to provide intensive operational oversight to each property," Belden said. "We believe there is still significant upside to the industry for at least the next several years. Our strong operating track record will support our growth plans well into the next decade."