Blue Hotel LLC Acquires a Classic Beverly Hills Hotel

The Company Will Reinvent the Landmark 38-Room Beverly Crescent Hotel as a Fashionably Elegant Boutique Hotel

Press Release
July 12, 2001
BEVERLY HILLS, CA -- Blue Hotel LLC, a newly formed entity created by Palazzo Partners LLC (``Palazzo Partners'') and Golden Triangle Properties LLC (``Golden Triangle Properties''), yesterday announced the acquisition of the historic Beverly Crescent Hotel from Credit Suisse First Boston.

The new company plans to reinvent and relaunch the property as a premier destination in Beverly Hills with a fusion of chic elegance, affordable comfort and spectacular new design. The hotel will remain open during a renovation that is expected to begin in late 2001. Blue Hotel LLC expects the hotel to re-open with a new name and an improved market position in early 2002.

Centrally located in the heart of Beverly Hills, the 38-room boutique hotel is surrounded by the great names in fashion and is positioned two short blocks from Rodeo Drive, the most famous shopping street in the world. The property will prove essential to the entertainment, fashion, business and leisure travelers who regularly visit the area.

``Our strategy is straightforward: to acquire and re-position unique real estate assets in the hearts of core urban markets. Going forward, we will leverage our success with the Beverly Crescent Hotel into other exciting projects, ultimately creating significant value for both our investors and our hotel patrons through physical modernization and an improvement of style and functionality,'' said Gregory Peck, managing principal of Palazzo Partners.

``We are excited to be partnering with Golden Triangle Properties in this acquisition as its strategy is very similar to ours and its investor base is quite impressive.''

About Palazzo Partners LLC

Palazzo Partners was founded by Peck, Ron Mason and Paul Fuhrman to acquire, renovate, reposition and reinvent unique real estate assets in central urban markets. The Palazzo Partners philosophy is to achieve significant value creation through both physical modernization and an improvement of style and functionality.

Each location will become a destination that attracts those with a sense of fashion and an awareness of style.

About Golden Triangle Properties LLC

Golden Triangle Properties is an investment vehicle whose purpose is to acquire and develop real estate assets in domestic and international urban markets. Golden Triangle Properties' investor base is a consortium of leading real estate professionals, investment bankers and entrepreneurs with significant domestic and international experience.

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Contact: 

     KavComm Public Relations
     Amy Kavanaugh, 415/713-3128