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Funding for Growth |
| GULFPORT, Miss., June 2, 2005 - Encore Hospitality, LLC (Encore), a
Mississippi based company newly formed to own, manage, acquire and develop
limited-service hotels, announced today that the existing hospitality businesses
of its parent will be consolidated into Encore, and the simultaneous entry
by Encore into an agreement with Five Arrows Realty Securities IV, L.P.
(Five Arrows) under which Five Arrows has committed to invest $85 million
in Encore.
Five Arrows is an investment vehicle managed by New York-based Rothschild Realty, Inc. (Rothschild Realty). Rothschild Realty is a leading provider of growth capital to public and private real estate companies. Encore is a successor to the businesses carried on by its principals, Dr. Bharat Sangani and Patrick Barber, since 1999. The new Encore entity has been formed to consolidate the ownership of the hospitality holdings of Encore Enterprises, Inc., and the related management company, Pineapple Management Services, Inc., which has operated under the leadership of Glenn Pedersen, Chief Operating Officer. As a result of the consolidation, Encore will hold ownership interests in 21 hotels, primarily located in the Southeast, containing approximately 1,880 rooms. The capital that Five Arrows has agreed to provide will be primarily used to fund future acquisitions. As part of the transaction with Five Arrows, Matthew Kaplan and James E. Quigley 3rd, who are principals with Five Arrows, have joined the Encore board. Dr. Bharat Sangani, Encore's Chief Executive Officer, noted, "We are extremely pleased to have Rothschild Realty as our partner. This transaction allows us to bring together the right people in the right platform with the capital necessary to turn our vision into a reality. Upon the completion of the consolidation process, we will have the leverage capacity and buying power to increase the size of our portfolio to over $400 million in assets." Matthew Kaplan of Rothschild Realty added, "The Encore team has demonstrated their exceptional ability to acquire and operate hotel properties for the benefit of their investors, and we are excited about being a part of their team going forward." Raymond James & Associates, Inc. advised Encore on the transaction. |
| Contact:
Patrick Barber
Matthew Kaplan
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