Lenders rounding out the $180-million deal include Bank of America, The Bank of Nova Scotia (Scotia Capital) and Wells Fargo Bank. They join previously announced equity investors Starwood Hotels & Resorts Worldwide, Inc., Cook Inlet Region, Inc., Woodbine Development Corporation of Dallas and the Herberger Interests of Phoenix-Scottsdale.

�We�re very enthusiastic about the confidence our partners and lenders are demonstrating. The prominence of these banking institutions speaks to the credibility of this $180-million project,� said John Field Scovell, president and chief executive officer of Woodbine Development Corporation, hotel developer and managing partner of the venture. 

The hotel is being built in the midst of the Kierland master-planned community on the Scottsdale-Phoenix border and at the heart of a flourishing commercial and tourism corridor. It is expected to open first quarter 2003.

Lenders

Scotia Capital is one of North America's premier financial institutions, with more than CDN$253 billion in assets and approximately 41,000 employees worldwide. It is also Canada's most international bank, with 1,700 branches and offices in more than 50 countries. 

�Every player on this team is well known by Scotia Capital, and well respected,� said Lorne Ogmundson, managing director of Scotia Capital�s real estate lending group in San Francisco. �We�ve participated in several Westin projects, and have worked with both Woodbine and CIRI, as well. Scotia Capital is looking forward to another successful venture.�

Ogmundson said Scotia Capital most recently worked with Woodbine and CIRI on the 496-room Hyatt Regency Lake Las Vegas Resort, which opened December 1999.

Bank of America, with $672 billion in assets, is the largest bank in the United States. It has full-service operations in 21 states and the District of Columbia and provides financial products and services to 30 million households and two million businesses, as well as international corporate financial services for business transactions in 190 countries.

�Our relationship with Woodbine Development Corporation goes back decades,� said Karl Zavitkovsky, executive vice president for Bank of America in Dallas. �This project is an exciting opportunity to build on previous successes, while forging a new partnership with Starwood Hotels and Resorts.�

Wells Fargo is a diversified financial services company providing banking, insurance, investments, mortgage and consumer financial services from 5,300 locations, and the world�s leading internet banking site. It is ranked seventh among U.S. banks in total assets, and third in the market value of its stock.

�Wells Fargo is proud to be lead lender to Woodbine Development Corporation and involved in the financing of The Westin Kierland Resort,� said Steve Prinz, senior vice president, real estate group in Dallas. �This is a great opportunity to expand our Woodbine relationship, which includes the financing for two other major hotels and the Kierland Commons retail project. This project will further enhance the Scottsdale and Phoenix area�s reputation as the premier U.S. resort destination, and provide a new landmark for all of the Valley to enjoy.�

The Westin Kierland Resort

The resort will be operated by Starwood under the Westin brand. During construction, the property is expected to provide more than 500 construction jobs to the community. When it opens in approximately 18 to 24 months, The Westin Kierland Resort will employ approximately 800 workers.

�We are excited about this project, both in terms of the tremendous presence this property will have in the market as a Westin resort, as well as the strong underlying economics of this investment. As one of the largest resort hotels in the area, The Westin Kierland Resort will be particularly popular among large groups and will draw loyal Westin customers into the local market,� said Joseph D. Long, senior vice president, acquisitions and development of Starwood.

As the centerpiece of the 730-acre Kierland community, the 750-room hotel will be situated on a 33-acre site surrounded by the existing 27-hole Kierland Golf Club course, which will be integrated into the resort operation. The hotel, which has been designed by Hill Glazier Architects, Inc., of Palo Alto, Calif., and interior designer Barry Design Associates of Los Angeles, will feature first-class accommodations, more than 60 suites and a 40-key casita village; approximately 60,000 square feet of indoor function space and extensive outdoor function space in distinctive courtyards with fountains, pools and lush landscape; multiple food and beverage venues; and a full-service spa and fitness facility with 22 treatment rooms. 

Balconies on the 12-story main hotel building will offer views of championship golf in the foreground, rugged mountains and desert landscape in the distance, and sparkling city lights at night. The casitas or low-rise style bungalows will be surrounded by the golf course, cool gardens and extensive water features.

�We have been excited to increase our presence in Arizona where our Westin La Paloma Resort has had phenomenal success and to introduce the Westin brand to the Phoenix-Scottsdale resort market where Starwood currently operates The Phoenician and The Wig Wam Resort,� said Norman MacLeod, executive vice president for Starwood Hotels & Resorts, Westin�s parent company.

Westin Kierland Partners

Construction of the resort hotel will be managed by Phoenix-based Woodbine Southwest Corporation, a subsidiary of Woodbine Development Corporation, and developer of the Kierland master-planned community, which was launched in conjunction with the Herberger Interests of Phoenix/Scottsdale in 1989. 

The Herberger family has land holdings throughout the state and has successfully developed retail centers, single-family homes and luxury apartments throughout the area. The Herbergers, well-known longtime Valley residents, contribute generously to the community, arts, social well-being, schools, parks and university endowments, as well as the Herberger Theater Center in downtown Phoenix.

�The Westin Kierland Resort is extraordinarily situated in the midst of some of the greatest shopping, dining and entertainment venues in the Valley. The resort also will be well-positioned to cater to one of the fastest growing segments of commercial growth in the Valley,� said Gary Herberger, principal of the Herberger Interests. �We are thrilled that we now have the financing in place that allows us to proceed.�

Nearby Amenity

The resort site is within walking distance of Kierland Commons retail center, which opened earlier this year with an impressive list of tenants ready to serve resort guests, as well as area residents. The 450,000-square-foot development incorporates upscale specialty retail, entertainment, restaurant and office components into a main-street environment. Tenants who have opened and/or signed leases include Ann Taylor Loft, Anthropologie, April Cornell, Artafax, Chico�s, Cold Stone Creamery, Crate and Barrel, Croll Sport, French Connection, Jennifer Croll, Lucky Brand, Mayors Jewelers, The Optical Shop of Aspen, Restoration Hardware, Starbucks Coffee, Sur La Table, Timbuktu Station, Tommy Bahama, Uh-Oh Clothing Boutique and Z Gallerie. Restaurants at Kierland Commons include The Cheesecake Factory, Morton�s Steak House and P.F. Chang�s China Bistro.

Kierland Commons is Woodbine�s first retail development project, while The Westin Kierland Resort is the company�s fourth resort project and seventh hotel project. The 27-year-old company�s project portfolio includes development and/or asset management of more than 15,000 acres of land, five Hyatt hotels and six championship golf courses. The Westin Kierland Resort will be Woodbine�s second Westin project. The 508-room Westin La Cantera Resort, situated in northwest San Antonio, opened in May 1999.

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is one of the leading hotel and leisure companies in the world with more than 725 properties in 80 countries and 120,000 employees at its owned and managed properties.