Olympus Real Estate to Acquire La Posada de Santa Fe

Business Wire, Sept 18, 1997

DALLAS and SANTA FE, N.M.--(BUSINESS WIRE)--Sept. 18, 1997--Olympus Real Estate Corporation, of Dallas, a leading real estate investment firm, and La Posada de Santa Fe, Inc., owner of La Posada de Santa Fe Hotel of Santa Fe, New Mexico, today announced an agreement under which Olympus will acquire La Posada de Santa Fe, one of the most historically significant hotel properties in Santa Fe.

Financial terms of the transaction were not disclosed. Olympus and La Posada de Santa Fe, Inc. are privately held.

With a main house that was built in 1883, other construction added in the 1930s and 1990, and garden-like grounds, La Posada de Santa Fe is one block from the Plaza in downtown Santa Fe. The hotel has 120 rooms, 90 of which have operating kiva fireplaces. Many of the rooms are mini-suites with tall vigas ceilings, entered through private courtyards. Following completion of the transaction, which is expected to occur later this month, Olympus will make a significant investment in the property to establish La Posada de Santa Fe as this historic city's pre-eminent hotel destination.

David B. Deniger, President and Chief Executive Officer of Olympus Real Estate Corporation, said: "We are very pleased to acquire La Posada de Santa Fe, and look forward to making the investments necessary to build its value to residents, employees, the local community and, in turn, our investors. In that regard, we intend to carry out substantial renovations and modernization of the property subject to the approval and support of the Santa Fe Historic Design Review Board. Santa Fe is a city with a proud history and a respect for tradition. It is an honor to become part of that history and that tradition."

Mr. Suhail Jundi, President of La Posada de Santa Fe, Inc., said: "The owners of La Posada Hotel are pleased to be turning this property over to a quality owner-operator with an outstanding track record in top-notch hotel and resort properties. We believe that the improvements contemplated by the new owner will ensure that La Posada will continue as a premier historic landmark hotel and resort property in the City of Santa Fe."

Following completion of the transaction, which is expected to occur on or about September 30, the property will be managed by Metro Hotels, a leading hotel manager which currently manages 18 hotel and resort properties throughout the United States.

Mr. Deniger said: "Metro plans to offer employment to all existing hotel employees. These employees have devoted much time and energy to preserving the history and tradition of La Posada and are valuable assets to us and the community."

Olympus Real Estate Corporation, with offices in Dallas and New York, invests in real estate equities, mortgages and securities in major markets throughout the United States. Olympus was formed in May 1994 by Hicks, Muse, Tate & Furst Incorporated and David B. Deniger.

Since its formation, Olympus has completed approximately $1 billion in real estate investments including numerous hotels and commercial, residential and golf-related projects in California, New York, Florida, Illinois, Arizona, Colorado, Connecticut, Massachusetts, Georgia and Texas.

Hospitality investments to date have included The Boca Raton Resort and Club, The Ritz-Carlton Rancho Mirage in southern California, The Fairmont Copley Plaza in Boston, The Cheeca Lodge in the Florida Keys, and The Algonquin Hotel in midtown Manhattan.

CONTACT: For Olympus Real Estate

Kekst and Company

Roy Winnick, 212/521-4842

or

La Posada de Santa Fe

Barry Fink, 310/282-6229