In September 2000, Marriott International acquired the Ritz-Carlton Kapalua (for a total cost of approximately $144 million) in expectation of subsequently selling the hotel and retaining a management agreement. Ritz-Carlton Hotel Company, an affiliate of Marriott International, will continue to operate the hotel as a Ritz-Carlton under a long-term management agreement. Capital Hotel Investments was advised by Credit Suisse First Boston Corporation in the transaction.
 

�We are pleased to complete this follow-on transaction with Blackacre, and we are excited about continuing to work together on future opportunities,� said Arne M. Sorenson, executive vice president and chief financial officer of Marriott International. �This acquisition brings the portfolio of Marriott-managed full service properties owned by Capital Hotel Investments to six hotels with a total value in excess of $500 million. We are committed to working with Blackacre to expand the portfolio of

The Ritz-Carlton, Kapalua  One Ritz-Carlton Drive Island of Maui Kapalua, HI

hotels substantially above this level. Our strategic alliance with Blackacre should continue to create tremendous opportunities for both of our companies.�

Ron Kravit, managing director of Blackacre noted, �As we had anticipated, our venture with Marriott International is proving to be an excellent opportunity to work closely with a top notch, world-class operator of real estate assets with whom we continue to source a steady pipeline of attractive investment opportunities.�

Blackacre Capital Management LLC is a private real estate investment management firm formed in August 1994. Blackacre is affiliated with Cerberus Capital Management, L.P. and other funds and accounts under common management, which in the aggregate have over $6 billion in committed capital under discretionary management. Blackacre has historically conducted a significant portion of its investment activities through partnerships and joint ventures with a broad network of strategic operating and capital partners, enhancing Blackacre�s ability to source, analyze, structure and oversee a wide variety of appropriate investment opportunities.

This press release contains �forward-looking statements� within the meaning of federal securities law, including statements concerning business strategies and their intended results and similar statements concerning anticipated future events and expectations that are not historical facts.