The Procaccianti Group -TPG- Completes Acquisition of the Westin in Providence; $80 Million Upgrade Will Create First Condo Hotel in Rhode Island

Business Wire, April 27, 2005

PROVIDENCE, R.I. -- The Procaccianti Group (TPG), today announced that it has completed the acquisition of the 364-room Westin Providence in Rhode Island from the Rhode Island Convention Center Authority. TPG is a New England-based, full-service, privately owned hotel ownership, management and construction company. The broker for the deal was Matt Kenney at Pinnacle Realty Investments.

The company plans to spend several million dollars upgrading the existing hotel to further improve its competitiveness. The company also will invest approximately $80 million to construct a 28-story mixed use tower with an additional 200 guestrooms on the adjacent vacant land, bringing the room total to 564. Within that tower, TPG also plans to build street-level retail and restaurants, structured parking, and 107 luxury residential condominiums on the top floors.

"This is a first-of-its-kind condo hotel development project in Rhode Island," said Gregory D. Vickowski, chief financial officer. "The new-build luxury condominium market in Providence is completely underserved. Combining residential living with all of the services associated with a hotel condominium and a great brand such as Westin will be very attractive to the upscale buyer."

"In terms of our hotel portfolio, The Providence Westin, attached to the Rhode Island Convention Center, is an institutional-quality asset that has consistently been the market leader since it was built," Vickowski added. "We were really attracted to the additional development potential of the property, which reduces its cost basis well below replacement cost. This property fits into our strategic plan of acquiring quality assets from renowned and respected franchisors such as Starwood Hotels & Resorts, below replacement cost, in markets with significant barriers to entry that we believe will benefit from our entrepreneurial management style."

Located at One West Exchange Street, the 28-story hotel is situated in the heart of the city's financial district and linked by a Sky Bridge to the Providence Place Mall and the Rhode Island Convention Center. It is within walking distance of Trinity Repertory Theater, the Providence Performing Arts Center and numerous corporate headquarters. The hotel features 18 meeting rooms with 25,000 square feet of meeting space, as well as fitness and spa facilities, indoor heated pool, sauna and the Agora Restaurant. Hotel room amenities include Westin's Heavenly Bed and Heavenly Bath/Shower, high speed Internet access, coffee and coffee maker.

Operating for nearly 50 years, the Procaccianti Group is a full-service, privately owned, real estate company that acquires, manages and renovates upscale full-service hotels. The award-winning company is engaged in hotel and commercial property acquisitions, property management, hotel construction and design. TPG, which has been recognized by Hilton, Intercontinental and other major franchisors for its leading hotels, is involved in all aspects of the hotel industry, from finance sourcing to construction and design to ownership and management.

The Cranston, Rhode Island-based company currently owns and manages 27 hotels, as well as more than half a million square feet of meeting and conference space. Additionally, The Procaccianti Group manages the Waterside Convention Center in Norfolk, Virginia on behalf of the City and has successfully worked with the City of Richmond, Virginia, managing the Richmond Convention Center hotel attached to the city's brand new 600,000+ square foot convention center. With a strong background in food and beverage, management of meeting and conference facilities, TPG is well suited to operate the Westin Providence.