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 KSL Capital Partners to Acquire the Marriott Rancho Las Palmas Resort & Spa
from Strategic Hotels & Resorts, Inc. for $56.0 million; 
Plans a $30 million Renovation
LA QUINTA, Calif. - May 10, 2006 -- KSL Capital Partners (KSLCP) has announced an agreement to acquire the Marriott Rancho Las Palmas Resort & Spa from Strategic Hotels & Resorts, Inc. (NYSE:BEE) 

In addition to the $56.0 million purchase price (excluding customary closing adjustments and transaction costs), KSLCP plans a $30 million renovation and upgrade to the existing resort over the first 24 months following the acquisition. Given the resort's large campus and unique guest room layout, the resort will remain open throughout the renovation. 

This acquisition marks the first investment for KSLCP's new private equity firm, and continues KSLCP's focus on resort-oriented travel and leisure assets. The acquisition is scheduled to close in July, subject to customary closing conditions. 

The Marriott Rancho Las Palmas Resort & Spa is a 444-room destination hotel with an adjacent 27-hole golf course and world-class spa. Located in the heart of Rancho Mirage, Calif., the resort draws visitors from both California and around the world. 

KSLCP will retain its affiliated independent management company, KSL Resorts, to manage the property. KSL Resorts currently manages the historic Hotel del Coronado in San Diego, Calif. and renowned La Costa Resort and Spa in Carlsbad, Calif. KSL Resorts has previously owned and operated some of the most famous resorts in the world, including the Arizona Biltmore Resort & Spa, Doral Resort & Spa, Grand Wailea Resort Hotel & Spa and La Quinta Resort & Club. 

About KSL Capital Partners 
KSL Capital Partners is a private equity firm specializing in travel and leisure businesses. For further information, please visit the company's website at

About KSL Capital Partners
Also See: Strategic Hotels & Resorts Inc. Reaches Agreement to Pay Up to $10.4 million for Termination Fees and Related Severance Cost to Terminate Marriott's Management Contract at the Marriott Rancho Las Palmas Resort in Rancho Mirage, California / April 2006
Marriott Projects Target Palm Desert, Calif./ March 1998

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