Starwood Capital Acquires Loan for Viceroy Anguilla

Viceroy Hotel Group Will Continue to Manage
and Operate the Property

 
BARNES BAY, Anguilla, October 12, 2010 - Viceroy Anguilla today announced that Starwood Capital Group has completed the purchase of the loan originally made to the developer of the property, Barnes Bay Development.  Viceroy Hotel Group will continue to manage and operate the property as Viceroy Anguilla.

Starwood Capital's involvement helps assure the long-term financial stability of Viceroy Anguilla.  "The brand new Viceroy Anguilla is one of the finest resorts in all the Caribbean.  Starwood has significant financial resources to enhance the six-star guest experience, adding fun and family experiences to its extraordinary beauty and elegant design.  We are working toward a friendly transfer of ownership which will allow us to operate the project essentially unlevered," commented Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Capital Group.  

Added Viceroy Hotel Group CEO and Founder Brad Korzen, "Starwood Capital is a leader in the industry with a proven track record in the hospitality sector and a solid balance sheet.  We're excited to have them on board.  Their involvement is the final element that will only accelerate Viceroy Anguilla's ascent as it becomes the leading luxury resort community in the Caribbean."

Over the past year many of the world's most recognizable celebrities have discovered Viceroy's Caribbean paradise while trendsetting brands such as Victoria's Secret, Ralph Lauren and Neiman-Marcus have chosen it as the setting for their photo shoots.  Demand for bookings continues to increase and the resort is virtually sold out over the upcoming holiday period,
Viceroy Anguilla's real estate sales have been one of the Caribbean's true success stories in these difficult times with almost 70% of its 31 private oceanfront villas and 103 oceanfront resort residences sold.  All Viceroy Anguilla residences are fully furnished and feature private infinity or plunge pools.  Viceroy's residences range from one to five bedrooms and prices range from $600,000 to $6,500,000.  

Viceroy Anguilla is situated on 35 lush acres, with 3,200 feet of beachfront along the spectacular Barnes and Meads Bays.  The magnificent design and superb construction quality redefine the very notion of a Caribbean luxury resort.  Viceroy Anguilla includes 166 contemporary beachfront and blufftop villas, sophisticated townhomes and opulent resort residences -- the work of acclaimed designer Kelly Wearstler.  This summer, Viceroy Anguilla announced the completion of its two-story state-of-the-art Spa, which boasts 8,000 square feet of oceanfront treatment rooms and fitness facilities.  

Also completed this summer are two additional first-class dining venues, Aleta and The Bamboo Bar & Grill.  Aleta overlooks the resort's sunrise pool and serves a menu of fresh seasonal selections in an aquatically inspired atmosphere.  The relaxed Bamboo Bar & Grill offers the perfect time-out from the beach with an array of light snacks and casual meals.  Guests can order from a lounge chair or stroll in for a shaded rush-woven seat at the Caribbean grill.  In the evening, the space transforms into a sophisticated beachside steak house and barbecue destination, complete with tiki torches, steel drum tones and local crayfish and lobster for a modern twist on traditional Caribbean dining.  

Leading the management team at Viceroy Anguilla is Jeff David, who was appointed General Manager in July.  Part of the pre-launch team as Viceroy Anguilla's Resort Manager from 2007 to 2009, David previously served as General Manager of Viceroy Snowmass.  

For additional information on Viceroy Anguilla or to make a reservation, please call (866) 270-7798 or visitwww.viceroyhotelsandresorts.com/anguilla. For additional information on Starwood Capital Group, please visitwww.starwoodcapital.com.  

About Viceroy Hotel Group
Viceroy Hotels and Resorts captivate discerning cultural connoisseurs with pleasures and privileges that transcend the expected. In skyscraping cities and pacesetting playgrounds, each Viceroy destination inspires a taste for the remarkable.  Established in 2001, Viceroy's original properties debuted in Santa Monica and Palm Springs; its newest incarnations include resort addresses in Miami's Icon Brickell enclave, on Anguilla in the British West Indies and in Aspen/Snowmass.  Viceroy properties in the Maldives and Beverly Hills will be added to the portfolio in 2011.  As the decade continues, additional Viceroy properties to be developed include the brand's first Middle Eastern property, on Sowwah Island in Abu Dhabi.