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The 1,046 Room Century Plaza Hotel 
and Tower Sold to the Pivotal Group: 
Plan Dual-Brand Strategy 
 
LOS ANGELES - Feb. 26, 1999--In a $260 million capitalization, a Pivotal-led investment group has acquired the Century Plaza Hotel and Tower, a premier landmark in the heart of Century City. 

The investment group is comprised of The Pivotal Group of Phoenix, DMB of Phoenix and AEW Partners III, L.P., an investment fund managed by Boston-based AEW Capital Management, L.P. The award-winning property, renowned as a Hollywood hot-spot, is currently managed by Westin Hotels  Resorts. 

Located adjacent to Beverly Hills and Rodeo Drive, the Century Plaza Hotel and Tower is situated across the street from the ABC Entertainment Center, Shubert Theatre, Century City Shopping Centre and Marketplace. Universal Studios, Disneyland and museums that include the newly opened Getty Center Armand Hammer Museum also are nearby. 

The 10-acre property totals 1,046 rooms -- 724 rooms in the Plaza Hotel and 322 rooms in the Tower -- and about 100,000 square feet of indoor meeting space and 55,000 square feet of outdoor meeting space. The Century Plaza Hotel's principal meeting, banquet and exhibition facilities include the famous Los Angeles Ballroom, the largest ballroom in west Los Angeles. 

"The acquisition of the Century Plaza Hotel and Tower represents our continued strategy of securing select, value-added strategic assets in premier markets," explained Francis Najafi of The Pivotal Group, the managing partner for the investment group, Pivotal Century Plaza, L.L.C. "Our vision is to reestablish the property's reputation and image among its constituencies through property renovation and enhancements." 

"We believe the economic positioning of the asset, and the dual-branding strategy proposed by Pivotal, present a solid opportunity for our company," said Drew Brown, president of DMB. 

"This is an excellent time to invest in luxury hotel products such as the Century Plaza," said Thomas H. Nolan, president of the AEW Partners Funds. "We intend to take advantage of the hotel's exceptional location and reestablish the Century Plaza as one of the leading hospitality properties in Southern California." 

The improvement program, which will commence immediately, will include the remodeling of guest rooms, lobby, ballroom, meeting rooms; the creation of new restaurant concepts; and upgrades to pool and spa areas, general landscaping and lighting. The project will be completed in 12 to 15 months. 

While the Century Plaza has been marketed as a single hotel, Pivotal plans to pursue a double branding strategy as it repositions the hotel and tower as two distinct properties. The hotel will recapture the excitement and glamour of Los Angeles, while the tower becomes a "super luxury" hotel in the same class as the Hong Kong Peninsula and Regent, Paris Ritz and London's Savoy. The two properties will exist within a new urban resort that will attract local, national and international guests. 

The California office of Eastdil Realty arranged the transaction. 

The Pivotal Group is a real estate investment and development firm involved in numerous luxury hotel, commercial and residential projects in the Southwest. 

DMB is a diversified real estate investment and development firm. Its real estate holdings include commercial and residential developments, masterplanned communities and golf course properties primarily in Arizona and California. 

AEW is a real estate advisory firm which manages about $6 billion for pension fund investors. The firm focuses on strategic investment in property and portfolios, high-yield equity investing and real estate securities portfolios (REITs, CMBS and private placements). AEW's real estate holdings include office, residential, commercial and industrial properties.

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Contact:
Denise Resnik  Associates
Denise D. Resnik, 602/956-8834
or
Natural Marketing Inc.
Nadene Bristow, 310/445-7722
 --
 
Also See: Host Marriott Corporation Acquires Ritz-Carlton, Phoenix for a Total of $75 Million / May 1998 
Westin Century Plaza Creates Ronald Reagan Suite - 8,000-sq ft Suite Occupies Entire 30th Floor / Jan 1999

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