Hotel Financial Strategies Arranges $300 mil Financing Deal

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. October 14, 2008

RENO, NV, July 17, 2006. Hotel Financial Strategies (HFS) has arranged for $300,000,000 in financing for the sale of the Reno Hilton - now called Grand Sierra Resort and Casino. The project will be transformed into a world-class development featuring hotel-condominiums, residential components, the nation's largest waterpark, and a myriad of other amenities.

The top 11 floors of the 27-story building will be converted into 825 luxury hotel-condominiums beautifully redesigned by Dodd Mitchell. Over 40% of the units, "The Summit," have been sold.

Along with the above, the entire 1,925 room tower will be completely renovated as well as a complete redesign of the casino and new high-end restaurants.

There will be a series of condominium towers built on part of the 145 acres.

Some of the interesting components in the capital structure were:

-- Extremely high leverage as a percentage of total costs - higher than a bank loan.

-- A very moderate pre-sale requirement for the condo-hotel units. Our sales have subsequently gone very well, but the issue was a low percentage to close.

-- This loan was placed with a major hedge fund.

-- This financing would require an existing structure and be a large transaction. Hotel Financial Strategies has recently closed a number of major, complicated projects.

HFS is highly experienced in offering our clients options that they did not know existed.