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News release


Jones Lang LaSalle Hotels Secures $80 Million Refinancing for Upper West Side Boutique Hotel

On The Ave Hotel to undergo multi-million dollar renovation; property poised to capitalize on improving market fundamentals

NEW YORK, Dec. 12, 2012 — On behalf of an affiliate of Lehman Brothers Holdings Inc., Jones Lang LaSalle Hotels today announced the firm secured an $80 million mortgage loan for the On The Ave Hotel. The 282-room boutique property is located at the corner of Broadway and 77th Street, two blocks from New York’s Central Park, in Manhattan’s Upper West Side and features destination restaurants Serafina and Geisha Table, with RedFarm opening early next year.

Jones Lang LaSalle Hotels Managing Director Jeffrey Davis, Executive Vice President Mathew Comfort and Vice President Mike Huth led the team on this transaction.

“On The Ave has been a consistently strong performer, with an average occupancy of over 95 percent during the last five years,” said Davis. “The hotel is managed by Highgate Hotels, one of the largest hotel operators in New York City, and has achieved impressive and solid cash flow, even during the recent economic downturn.”

The property was originally built in 1908 and was last renovated in 2005. A multi-million dollar renovation, which is expected to commence this month, will result in upgrades to guestrooms, corridors, the lobby and mechanical systems.

The debt capital markets remain open, according to Jones Lang LaSalle Hotels’ financing experts, who have closed more than $1.8 billion in financings for a range of hotel assets across the United States thus far in 2012. Comfort said, “Properties like On The Ave that are located in the top gateway markets will continue to garner the most interest from hotel lenders. We received proposals from a wide range of sources and were ultimately able to secure excellent terms from a foreign bank.”

New York City’s significant barriers to entry have enabled the city to maintain its status as one of the strongest hotel markets in the world. As of September 2012 year-to-date occupancy in New York City hit 83.7 percent and average daily rate (ADR) reached $325.76.

About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels is a global real estate services firm focused exclusively on hotels & hospitality. We provide acquisition and financing advice, valuations, investment sales and asset management for luxury hotels, select service and budget hotels, smaller hotels and pubs, from single assets to large portfolios and mixed-use developments.

In the last five years we completed nearly 4,000 advisory and valuation assignments and more sale, purchase and financing transactions than any other hotels real estate firm in the world…worth over $30 billion. With 42 offices in 20 countries, no other firm is better connected. Through our depth and breadth of research and experience we know the market at every level, we know the players and we know how to get results.