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Encore Gets $85 Million from Five Arrows

Encore Hospitality, a Mississippi-based company newly formed to own, manage, acquire and develop limited-service hotels, announced today that the existing
hospitality businesses of its parent will be consolidated into Encore, and
the simultaneous entry by Encore into an agreement with Five Arrows Realty
Securities IV, L.P. under which Five Arrows has committed to
invest $85 million in Encore. Five Arrows is an investment vehicle managed by New York-based Rothschild
Realty, Inc. (Rothschild Realty). Rothschild Realty is a leading provider
of growth capital to public and private real estate companies.

Encore is a successor to the businesses carried on by its principals, Dr.
Bharat Sangani and Patrick Barber, since 1999. The new Encore entity has
been formed to consolidate the ownership of the hospitality holdings of
Encore Enterprises, Inc., and the related management company, Pineapple
Management Services, Inc., which has operated under the leadership of
Glenn Pedersen, Chief Operating Officer.

As a result of the consolidation, Encore will hold ownership interests in
21 hotels, primarily located in the Southeast, containing approximately
1,880 rooms. The capital that Five Arrows has agreed to provide will be
primarily used to fund future acquisitions. As part of the transaction
with Five Arrows, Matthew Kaplan and James E. Quigley 3rd, who are
principals with Five Arrows, have joined the Encore board.

Dr. Bharat Sangani, Encore’s Chief Executive Officer, noted, “We are
extremely pleased to have Rothschild Realty as our partner. This
transaction allows us to bring together the right people in the right
platform with the capital necessary to turn our vision into a reality.
Upon the completion of the consolidation process, we will have the
leverage capacity and buying power to increase the size of our portfolio
to over $400 million in assets.”

Matthew Kaplan of Rothschild Realty added, “The Encore team has
demonstrated their exceptional ability to acquire and operate hotel
properties for the benefit of their investors, and we are excited about
being a part of their team going forward.”