BETHESDA, Md., and BEVERLY HILLS, Calif., June 4, 2003 - RLJ Development, LLC is pleased to announce the addition of the Hilton Cancun Beach & Golf Resort in Mexico to its portfolio of hotels. RLJ acquired the 426-room oceanfront resort for approximately $31.5 million. Previously a Hilton franchised hotel, Hilton Hotels Corporation will now manage the resort property.

Robert L. Johnson, chairman and chief executive officer of RLJ Development stated, “We are thrilled to add a full service resort hotel to our growing hotel portfolio, which now stands at twelve, including ten properties within the Hilton Family of Hotels. As the nation`s largest African-American-owned hotel company, we plan to aggressively pursue more opportunities at attractive investment prices.”

Located on more than 150 acres on the tip of the Yucatan Peninsula, the Hilton Cancun Beach & Golf Resort mirrors the splendor of ancient Mayan architecture surrounded by sparkling white beaches and the clear Caribbean Sea. The beachfront-contemporary resort features a meticulously landscaped aquatic park and dramatic golf course built around Mayan ruins.

“Hilton is continuously looking to expand our presence in Mexico,” said Dieter Huckestein, president - hotel operations, owned & managed for Hilton Hotels Corporation. “We are excited to be managing the Hilton Cancun Beach & Golf Resort and add the property to our collection of luxury resorts, which include newly acquired locations in Los Cabos, Mexico, Tucson, Ariz., and Myrtle Beach, SC.”
The Hilton Cancun Beach & Golf Resort offers 426 deluxe ocean-view guestrooms including 16 junior suites, six master suites and one presidential suite with many of the guestrooms and suites featuring balconies and private terraces. Guestroom accommodations include satellite television; telephone with voicemail; minibar; coffee-maker; hairdryer and twice-daily housekeeping service. Non-smoking and accessible rooms are available upon request.

The exclusive Beach Club executive area—villas within the resort—offers guests personalized concierge service, private lounge for guest registration and departure; complimentary continental breakfast in the mornings and beverages and hors d`oeuvres in the afternoon, as well as international newspaper delivery and other deluxe amenities. According to Tom Baltimore, president of RLJ, “We are delighted to acquire this irreplaceable first-class resort at a significant discount to replacement cost.”
For golf enthusiasts, the Hilton Cancun Beach & Golf Resort provides golf facilities and services including an 18-hole, par 72 course; special green fees for hotel guests; a practice range and a putting green; a personal golf clinic; electric golf carts; a pro shop; golf equipment and shoe rentals, and complimentary equipment cleaning.

For business travelers, the resort offers more than 28,000 square feet of meeting and function space and a total of 16 break-out meeting rooms; an in-house audio-visual company; a full service business center; and a separate area for group arrival and check-in.

Additional recreational features and services include: seven swimming pools and two whirlpool spas; an Aquatic Sports Center; a fitness center; aerobics classes; a sauna; massage therapy; a jogging path; volleyball; a shopping arcade; beauty salon; special services and activities for families; and two lighted tennis courts. The resort also offers a wide variety of activities and water sports facilities, such as: beach games for groups, scuba lessons, water skiing, wave running and windsurfing.

The resort offers daily excursions to Tulum, Chichen-Itza, X-caret, Isla Mujeres, Akumal and other areas of historic significance. Arts and crafts, movie theaters, discoteques, night clubs, amusement parks and bowling facilities are conveniently located near the resort.

The Hilton Cancun Beach & Golf Resort provides 24-hour room service and features four dining facilities: Spices Restaurant, featuring buffet or ala carte breakfast and three kitchens serving different menus for dinner, including Mexican, Italian and steak house fare; Mitachi, with seafood and Asian specialties; El Kiosko for al fresco dining in the swimming pool areas; and Hoyo19 Restaurant and Bar, located within the Golf Course Club House and serving breakfast and lunch ala carte.

Members of the Hilton HHonors® guest reward program can earn HHonors points in addition to airline miles for every qualifying stay at the Hilton Cancun Beach & Golf Resort. HHonors is the only hotel program that allows its members to Double Dip®—- simultaneously accumulate both hotel points and airline miles with each qualifying stay. The Hilton Cancun Beach & Golf Resort is located at: Retorno Lacandones Km 17, Zona Hotelera, Cancun, Quintana Roo, 77500 Mexico; phone: 52 998-881-8000; fax: 52 998-881-8080.

For more information or to make reservations, contact Hilton Reservations Worldwide Mexico at 01-800-003-1400 or call Hilton Cancun at 1-888-594-2483 or visit www.hiltoncancun.com.

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