Sep 19, 2005

The Buccini/Pollin Group and Lubert Adler Management Inc. JV Acquires Sheraton Meadowlands Hotel and Conference Center

Hotel Will Undergo $16 Million Renovation

EAST RUTHERFORD, N.J., September 19, 2005 — Officials of The Buccini/Pollin Group (BPG), a leading real estate development, management and ownership company, today announced that the company has entered into a joint venture with Lubert Adler Management Inc., a private investment firm, to acquire the 427-room hotel Sheraton Meadowlands Hotel and Conference Center for $54 million from a joint venture between The Blackstone Group, a private investment firm, and Prime Hospitality Corp. The hotel will undergo a $16 million renovation, which will begin in January 2006 and is expected to be completed next fall. The renovation will be done in phases in order to be least disruptive to guests.

“This is our first acquisition in the metro New York area,” said Dave Pollin, BPG president. “The hotel will benefit from a major renovation that will capitalize on the dynamic growth that is expanding outward from New York City. We also are proud to be another champion of New Jersey’s Meadowlands transformation. With several mega-projects planned or currently underway in the area, the Meadowlands is transforming into an impressive destination in its own right.”

Located at Two Meadowlands Plaza, the 21-story hotel is just three miles from New York City and 10 minutes from Teterboro Airport. The hotel is within walking distance of the Meadowlands’ major sports, entertainment and special events venues. The New Jersey Sports and Entertainment Complex is home to the a number of professional sports franchises, including the NY Giants, NY Jets, NJ Nets, and NJ Devils. Currently under construction is Meadowlands Xanadu, a massive retail and entertainment center being developed by a joint venture comprised of the Mills Corporation and Mack-Cali Realty Corporation.

EnCap Golf Holdings is planning to transform an adjacent, former brownfield site into as many as four 18-hole golf courses, thousands of new housing units, offices, restaurants, a worldclass equestrian center, and tennis and marina facilities. To facilitate this transformation, the state is making $395 million in transportation improvements this year in Bergen and Hudson counties, including extending light rail and opening the Secaucus transfer station. The Sheraton Meadowlands offers 26,500 square feet of function space, including an IACC (International Association of Conference Centers) certified conference center and the largest ballroom in northern New Jersey. Other amenities include a comprehensive fitness center, indoor pool and spa, sauna, and on-site rental car service. Room amenities include the Sheraton Sweet Sleeper Bed and wireless high-speed Internet access throughout the hotel. The hotel features three restaurants and lounges: The Terrace Bistro, The Lobby Lounge, and Classics Sports Pub.

PM Hospitality Strategies, Inc., an affiliate of The Buccini/Pollin Group will operate the hotel. In addition to its typical operations role, PMHS will maintain management duties during all aspects of the hotel’s renovation. BPGS Construction, also a BPG affiliate, will oversee the renovation.

The planned renovation encompasses all areas of the property. “The renovation will incorporate a very contemporary, fashion-forward look and feel in all public areas and food and beverage outlets,” Pollin added. Guest rooms and all other public areas will receive new soft goods, carpeting, and wall coverings. All guest bathrooms will be completely redone with new vanities, floor tile, framed mirrors, and upgraded amenities.

Jones Lang LaSalle brokered the transaction. Anglo Irish Bank, a full-service financial institution, provided the first mortgage. BBG-BBGM, an international architecture, interior and graphic design firm, is the architect and designer on the project.

PM Hospitality Strategies Inc. is a Hotel/Hospitality Management Company with operations in Washington DC, Virginia, Maryland, Delaware, Pennsylvania, New Jersey & Massachusetts. PMHS has won many awards in its 9 years of business most recently accepting awards in NYC at the HSMAI Adrian Awards for advertising and web initiatives. PMHS is also a licensee with Marriott ExecuStay [corporate apartments], a complimentary extension to its hotel operations expertise. With the opening of more properties, PMHS’s total receipts continue to grow and put great distances between its results and industry averages. More impressively, PMHS’s same store sales have grown in every year since founding the company including the difficult years after 9-11. Additional information about the company may be found at its Web site: www.pmhs.com.

The Buccini/Pollin Group, with offices in Washington D.C., Wilmington, Del., and New York, is a multi-faceted hotel, office, residential, and parking facility developer and owner. BPG currently owns and operates 15 hotels, 6 million square feet of office space, five major residential communities and 1,400 covered parking spaces. Additional information about the company may be found on its Web site: www.bpgroup.net.