Broadreach Receives 5-Year Extension on $186 Million Loan on Park Hyatt Aviara

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. January 21, 2011

PALO ALTO, CA - Janary 20, 2011 - Broadreach Capital Partners announces today that it has modified a $186.5 million loan on the Park Hyatt Aviara Resort in Carlsbad, CA with an extension to 2017.

The key modification of the financing on the 329-room luxury resort is a five-year extension on the loan, which was set to mature in 2012. While the modification brings the loan current, it does not require Broadreach to pay down the principal, according to Broadreach Director Heather Turner who is responsible for lodging related investments on the West Coast and Pacific Rim.

“We are particularly pleased with the extension of the term which will allow the resort the time it needs to recover from both macro-economic and hotel-specific challenges of the last few years,” says Turner. “This modification is in the best interest of the resort and all of its stakeholders and provides the best opportunity to maximize value,” she adds.

“The resort is now well positioned to continue to provide the world class luxury experience that guests have come to expect from Aviara,” says Turner.

Built in 1998, the AAA Five Diamond Park Hyatt Aviara features 329 rooms and suites, an 18-hole Arnold Palmer-designed golf course, a 15,000 square-foot European spa, award-winning restaurants and 78,000 square feet of meeting space. The resort is located 35 miles north of San Diego in Carlsbad, California on approximately 200 acres of coastal area land.

In 2010 Broadreach selected Hyatt Hotels & Resorts to manage the resort under the luxury Park Hyatt brand. Since assuming management duties last June, the hotel has seen a meaningful improvement in revenue over the previous six months due in part to an increase in group bookings.

“This decision illustrates Broadreach's long-term commitment to the success of Park Hyatt Aviara,” says Mark Stiebeling, General Manager of the Resort. “Under Hyatt's management, our team has successfully maintained the prestigious AAA Five Diamond Award and we have extensive plans underway to further enhance the Aviara guest experience.”

About Broadreach Capital Partners

Broadreach Capital Partners (http://www.broadreachcp.com), a real estate investment firm with locations in Palo Alto, Los Angeles and San Francisco, CA, St. Louis, MO and Edwards, CO, invests in a variety of commercial, mixed-use and land properties in the western United States and lodging-related properties on a broader geographic basis. The company focuses on opportunities where it can create significant value by capitalizing on the team's core competencies; including opportunistic acquisitions, operational excellence, strategic asset repositioning, and select development activity. Broadreach manages over $1 billion of equity through its series of discretionary real estate funds. In 2006, the company added a team from Maritz, Wolff & Co. to pursue lodging related investments throughout the United States and abroad.

About Park Hyatt Aviara Resort

Secluded amidst 200 acres of verdant hillsides and rolling valleys within the master-planned community of Aviara, Park Hyatt Aviara Resort provides an appealing setting for any function. The resort's Spanish colonial architecture welcomes with a sense of casual elegance. Each of the 329 spacious guest rooms - including 44 suites - features a private balcony or landscaped terrace offering magnificent views. Expansive facilities for meetings and special events are enhanced by complete resort amenities, from acclaimed dining at four on-site restaurants, to a full-service spa, swimming, tennis, a fitness center and an Arnold Palmer designed 18-hole championship golf course. For more information, contact the resort by phone at (760) 448-1234 or visit www.parkhyattaviara.com.