Hotel Online  Special Report

Amstar Group, LLC and Davidson Hotel Company
Joint Venture to Acquire the 500 room Hilton
Alexandria Mark Center for $93.1 million


ALEXANDRIA, VA - June 23, 2005 -- The Hilton Alexandria Mark Center has been acquired from Hilton Hotels Corporation (NYSE:HLT) for $93.1 million by a joint venture formed by Denver-based Amstar Group, LLC ("Amstar") and Memphis-based Davidson Hotel Company ("Davidson"). The 500-room, full-service hotel, managed by Davidson, will remain under the Hilton flag as a Hilton franchisee. Amstar and Davidson announced that the hotel would undergo a $9.5-million renovation of the guest rooms and commercial areas in the coming weeks.

"The fact that we closed all cash to meet the seller's expedited timeframe is another great example of how nimble Amstar can be because of our balance sheet," said Gabe L. Finke, CEO of Amstar Group. "We are very excited to be teaming up once again with Davidson. Their proven track record in conjunction with their relentless focus on improving operations makes them an ideal partner. When you combine that with a great market with strong fundamentals, a great property with excellent amenities, and a great brand in Hilton, this opportunity exemplifies our investment philosophy."

This landmark hotel property acquisition is an example of Amstar's value-added investment strategy and the private equity firm's partner-friendly approach to joint ventures with highly qualified operators.

"Amstar is a highly respected real estate investor and we are honored that they have selected Davidson to work with them to acquire and manage the Hilton Alexandria Mark Center," said Wilton D. "Chick" Hill, president of Davidson Hotel Company. "This is our third transaction together and we are extremely pleased to be associated with Amstar's outstanding professionals. We will do everything possible to continue to build upon the success of this exceptional hotel property."

"We are delighted to have completed this transaction with Amstar and Davidson and are pleased that this outstanding asset will remain part of the Hilton Family. This transaction builds upon our existing strong relationship with both Amstar and Davidson," said Robert M. La Forgia, senior vice president and chief financial officer, Hilton Hotels Corporation.

The Hilton Alexandria Mark Center is located on Seminary Road in Alexandria, adjacent to a 43-acre botanical reserve and less than five miles from the center of Washington, D.C.

In addition to its 500 guest rooms, the Hilton Alexandria Mark Center also boasts 45,000 square feet of meeting space that includes an IACC-approved Executive Meeting Center. Breakfast, lunch and dinner are served at Finn and Porter, the facility's on-site restaurant.

This is the third property Davidson has managed for Amstar. Davidson currently manages Amstar's Doubletree Hotel in Palm Beach Gardens, Florida and also managed an independent hotel in Washington, D.C. that underwent extensive renovations to reposition the asset in the market, and was sold by Amstar in 2004, with Davidson remaining involved in the property as manager for the new owners.

About Davidson Hotel Company
Davidson Hotel Company is a full-service lodging company providing management, development, consulting and accounting expertise for the hospitality industry. The company currently manages 24 upscale hotels across the United States under such flags as Hilton, Embassy Suites, Doubletree, Marriott, Renaissance, and Sheraton. These hotels represent approximately 7,000 rooms and 3,500 employees. Additional information can be found on the company's website at

About Amstar Group
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. Headquartered in Denver, Colorado, the company has acquired and developed more than 75 properties valued at $2 billion. Its current portfolio includes a diversified mix of office, multifamily and hospitality holdings. The company currently has holdings in California, Florida, Texas, Philadelphia, Chicago, Denver, Phoenix, and Washington, D.C. For more information about Amstar Group visit the company's website at

About Hilton
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,300 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and Homewood Suites by Hilton(R).


Amstar Group

Also See: The 495-room Radisson Plaza Hotel at Mark Center in Alexandria, Va., Purchased by Hilton Hotels Corp. for $51.5 Million / Feb 1999
Hilton Alexandria Mark Center Opens $5 Million Executive Meeting Center Certified by the International Association of Conference Centers / July 2003

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