New York - June 5, 2002 - Insignia/ESG Hotel Partners is pleased to announce that it has arranged the sale of British Airways' hotel at 127 East 55th Street in Midtown Manhattan, with an agreement for the continued exclusive use by British Airways flight personnel.  An affiliate of Hotel Properties Limited, Singapore acquired the hotel for US$31 million.  Fitzpatrick Hotels, which operated the property on behalf of British Airways, will continue to manage the hotel for the new owner.  Paul Fitzpatrick, senior managing director of Insignia/ESG Hotel Partners, led the marketing and disposition of this asset locally.

Built in 1982, the 37-story, 124-room hotel is one of the last "sliver" buildings to be built in New York.  The property commands an enviable location in Midtown Manhattan between Park and Lexington Avenues, near the headquarters of many of the world's largest corporations and proximate to major transportation hubs, including Grand Central Station; Central Park; and the retail districts of Fifth and Madison Avenues.

Mr. Fitzpatrick commented, "The hotel - being relatively new, fee simple and with an outstanding location - offered a unique opportunity to acquire not only an exceptional asset but one occupied by one of the world's leading international carriers."

Derek Gammage, managing director of Insignia's hotel group in London, commented, "The hotel attracted a significant amount of interest from a cross-section of market sectors, including hotel operators, investors and property companies, from both sides of the Atlantic.  The value of this deal reflects the continuing strong demand for hotel properties in New York."

Phil Hogg, Head of Property for British Airways, remarked, "The London - New York route continues to be a significant route for British Airways, and we are delighted that we have agreed with the new owners to continue our occupation of the hotel for our flight personnel."

Insignia/ESG Hotel Partners is a leading full-service real estate group focused exclusively on the hospitality industry.