Tokyo, August 14, 2003 - The Hotel Il Monte, Osaka, Japan has been sold to a real estate private equity fund managed by investment bank Morgan Stanley for an undisclosed sum. The deal was arranged by Jones Lang LaSalle Hotels on behalf of GMAC Commercial Holding Asia.

Indicative of the transparent sales process, the deal was brokered over a swift four months. “The offering attracted seven bids from premium investors and opportunity funds around the globe, reflecting a strong vote of confidence in Japan`s hotel industry”, said Mr Scott Hetherington, Managing Director, Jones Lang LaSalle Hotels.

The 122-room hotel is located in the heart of Osaka, Japan`s second largest business centre and gateway to the popular Kansai region. The Hotel Il Monte, an upscale limited service hotel, features a contemporary exterior design, created by the famed Italian architect, Mr Aldo Rossi, and has been operated by Hotel & Associates, an experienced local operator in Japan. The property also includes a retail tenant portion.

Japan`s hotel investment market has been illiquid for some time; it has only been recently that arm`s length transactions have taken place and this sale marks the first transaction in Japan for Jones Lang LaSalle Hotels Tokyo based team.

“A prolonged period of economic recession and currency deflation has deterred hotel investors over the past years, however investors perceive now is a good time to enter the Japanese hotel market”, said Mr. Tomohiko Sawayanagi, Executive Vice President, Jones Lang LaSalle Hotels Tokyo.

“This, coupled with optimistic investor sentiment has increased the level of transaction activity,” added Mr Hetherington.

This transaction has further reinforced Jones Lang LaSalle Hotels` position as Asia Pacific`s market leader in hotel investment services. Jones Lang LaSalle Hotels has negotiated two other major hotel transactions in Asia over the past week, including the JAIC Hilton Colombo and Raffles Resort Phuket.

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