Real Estate Forum - April 2009

SINGLE ASSET TRANSACTION OF THE YEAR

WINNER
Hyatt Regency Century Plaza—Los Angeles

Deal Value: $366.5 million, or $504,821 per room Rooms: 726

Seller: Sunstone Century Star LLC and Sunstone Century Star Lessee Inc.

Buyer: Next Century Associates LLC, a joint venture of Woodbridge Capital Partners and D.E. Shaw Group

An unsolicited deal between the buyer and seller and one
of the largest US lodging transactions in 2008, the sale
of the Hyatt Regency Century Plaza realized a total IRR
of approximately 19% upon sale. The state of the capital
markets was one of the most complicated aspects of this
transaction and forced the buyer to weigh the vulnerability
of the real estate market against the long-term value of this
outstanding asset.

MERGER & ACQUISITION OF THE YEAR

RUNNERS UP

Hyatt Dulles— Washington Dulles International Airport, Fairfax
County, VA
$76.5 million, or $242,088 per room; 316 rooms
Ashford Hospitality Trust (seller); Thayer Hotel Investors IV
(buyer); Molinaro Koger (broker)

Ritz-Carlton Huntington Hotel & Spa—Pasadena, CA $165 million, or $434,200 per room; 380 rooms Cornerstone Real Estate Advisers LLC (seller); Great Eagle Holdings/Langham Hotels (buyer); Eastdil Secured (seller’s advisor)

WINNER

Apollo Management and Texas Pacific Group Acquire Harrah’s Entertainment

Deal Value: $28 billion

Portfolio Size: 51 casinos, 40,000 hotel rooms and suites, approximately 85,000 employees

Apollo Management and Texas Pacific Group acquired Harrah’s Entertainment, the world’s largest provider of branded casino entertainment, on Jan. 28, 2008. Harrah’s operates properties under the Harrah’s, Caesar’s and Horseshoe brand names and owns the London Clubs International family of casinos and the World Series of Poker. The deal was the largest single transaction of the year, as measured by deal value, and was initially announced in December 2006.

Apollo Management and Texas Pacific Group were advised by Deutsche Bank, JPMorgan, Credit Suisse, Merrill Lynch,

Citigroup, Banc of America Securities and Global Leisure Partners. Harrah’s Entertainment was advised by Peter J. Solomon and UBS.

RUNNERS UP
Inland American Lodging acquires portfolio from RLJ
Development
$900 Million; 22 hotels; 4,061 Rooms

JACK A. SHAFFER
FINANCIAL ADVISOR OF THE YEAR 2008

WINNER
Jackson Hsieh
Managing Director and Global Head of Real Estate, Lodging &
Leisure Group
UBS Investment Bank

Hsieh has represented numerous hotel companies in transactions valued at more than $53 billion, including the sale of CNL Hotels & Resorts and Caesar’s Entertainment. He advised Harrah’s Entertainment in its sale to Texas Pacific Group/Apollo. He and his team jointly managed the books on the first mortgage note financing for MGM and were lead lenders for the construction loan for the MGM City Center in Las Vegas. Jackson advised Hilton Hotels Corp. on the acquisition of Hilton Group Plc, which allowed the company to receive a substantial offer from the Blackstone Group.