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 Sonnenblick-Eichner Company Arranges $136 million of
First Mortgage Financing for Provenance Hotels 
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LOS ANGELES, CA – January 16, 2007 - Sonnenblick-Eichner Company announced today that it has arranged $136,000,000 of first mortgage financing for a portfolio of six full service hotels located in Washington, Oregon, and Tennessee on behalf of Provenance Hotels. The portfolio includes the Hotel Max in Seattle and the Sheraton Tacoma, both located in Washington; the Hotel Preston in Nashville and the Westin Portland, Hotel Lucia, and the Hotel deLuxe, all located in Portland, Oregon.  The financing was structured with three 10-year fixed rate loans priced in the low 100 bps range over the 10-year treasury, including a significant interest-only component, and three floating rate interim LIBOR-based facilities.  The interim loans will be used for a complete renovation of the Sheraton Tacoma, and to replace renovation financing for the Hotel deLuxe. All of the loans were provided by a Wall Street investment bank and were not cross-collateralized. 

The 1,144-room portfolio included several market leading assets. The new Hotel Max in downtown Seattle, originally built in 1926, underwent a $9 million renovation and re-opened in 2005.  The property is considered one of the hippest hotels in Seattle and was recently featured in Conde Nast and MTV.  The Westin Portland (pictured at left), Hotel Lucia, and Hotel deLuxe are all located within the Portland Central Business District.  The Westin is regarded as one of the best performing hotels in the state.  The Hotel Lucia was originally built in 1909 and was completely renovated and re-opened in 2002.  Hotel deLuxe recently completed a $10 million renovation and re-opened in May 2006.  The Sheraton Tacoma, located adjacent to the Greater Tacoma Convention and Trade Center, is the dominant hotel in downtown Tacoma, Washington. The hotel is undergoing a $16 million renovation and will be re-named the Hotel Murano.

Elliot Eichner, a Principal of Sonnenblick-Eichner Company commented, “We were successful in securing financing on this transaction from one lender who was able to provide all the structures required by the borrower.  As a result, this provided for tremendous efficiency in execution and economies of scale associated with the costs of closing such a large and complicated transaction. ”

Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, “The highly structured non-recourse LIBOR-based financings were all competitively priced in the mid-100s over LIBOR with interest-only periods of up to three years.”

About Sonnenblick-Eichner Company

Sonnenblick-Eichner Company (www.sonneich.com) is a Los Angeles-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint venture equity transactions.  The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties. 

About Provenance Hotels

Provenance Hotels (www.provenancehotels.com) conducts a wide array of services in the hotel industry that include developing, acquisitions and operating hotels nationwide. It strategically works with both independently owned and nationally affiliated brands with an emphasis on mid-sized upscale properties. It passionately specializes in developing and redeveloping boutique urban hotels with a distinct art direction, such as the Hotel Lucia and Hotel deLuxe in Portland, Oregon, and the Hotel Max in Seattle, Washington. Provenance Hotels was formerly Aspen Hotel Group.

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Contact:

Debi Fidler
Sonnenblick-Eichner Company
1901 Avenue of the Stars, #1750
Los Angeles, Ca 90067
Tel 310-286-7700  Fax 310-286-7710
dfidler@sonneich.com
www.sonneich.com

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Also See: Sonnenblick-Eichner Company Arranges $63 million of First Mortgage Financing for a Portfolio of Six Oceanfront Hotels in California / November 2006
Sonnenblick-Eichner Company Arranges $63 million of First Mortgage Financing for a Portfolio of Six Oceanfront Hotels in California / November 2006
Sonnenblick-Eichner Company Arranges $28 million of First Mortgage Financing for the Hotel Andra in Seattle, Washington / October 2006
Sonnenblick-Eichner Company Arranges $41.5 million of First Mortgage Financing for Hotel 1000 in Seattle, Washington / September 2006
Sonnenblick-Eichner Company Arranges $61.5 million of First Mortgage Financing for the Marriott Monterey Hotel in Monterey, California / September 2006
Sonnenblick-Eichner Company Completes $40 million Sale of the Coast Santa Cruz Hotel in Santa Cruz, California / September 2006
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Sonnenblick-Eichner Company Arranges $236 million in Construction Financing for Viceroy Anguilla Resort and Residences, Anguilla, B.W.I. / June 2006
Sonnenblick-Eichner Company Arranges $67 million of First Mortgage Financing for Charleston Place, Charleston, South Carolina / March 2006
Sonnenblick-Eichner Company Arranges Permanent Financing for The Crowne Plaza Hotel in Phoenix, Arizona / February 2006
Sonnenblick-Eichner Company Arranges $54 million of Leasehold Renovation Financing for The Sheraton Park Hotel at the Anaheim Resort, Anaheim, California / February 2006
Sonnenblick-Eichner Company Arranges $58.5 million of Long Term Financing for the Benson Hotel and Paramount Seattle Hotel / January 2006
Sonnenblick-Eichner Company Arranges $44 million in Financing for National Hotel Portfolio / January 2006
Sonnenblick-Eichner Company Arranges $68,500,000 in Financing for Two California Hotels / April 2005
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