GULFPORT, Miss., June 2 /PRNewswire/ -- Encore Hospitality, LLC (Encore),
a Mississippi-based company newly formed to own, manage, acquire and develop
limited-service hotels, announced today that the existing hospitality
businesses of its parent will be consolidated into Encore, and the
simultaneous entry by Encore into an agreement with Five Arrows Realty
Securities IV, L.P. (Five Arrows) under which Five Arrows has committed to
invest $85 million in Encore.
    Five Arrows is an investment vehicle managed by New York-based Rothschild
Realty, Inc. (Rothschild Realty).  Rothschild Realty is a leading provider of
growth capital to public and private real estate companies.
    Encore is a successor to the businesses carried on by its principals, Dr.
Bharat Sangani and Patrick Barber, since 1999.  The new Encore entity has been
formed to consolidate the ownership of the hospitality holdings of Encore
Enterprises, Inc., and the related management company, Pineapple Management
Services, Inc., which has operated under the leadership of Glenn Pedersen,
Chief Operating Officer.
    As a result of the consolidation, Encore will hold ownership interests in
21 hotels, primarily located in the Southeast, containing approximately 1,880
rooms.  The capital that Five Arrows has agreed to provide will be primarily
used to fund future acquisitions.  As part of the transaction with Five
Arrows, Matthew Kaplan and James E. Quigley 3rd, who are principals with Five
Arrows, have joined the Encore board.
    Dr. Bharat Sangani, Encore's Chief Executive Officer, noted, "We are
extremely pleased to have Rothschild Realty as our partner.  This transaction
allows us to bring together the right people in the right platform with the
capital necessary to turn our vision into a reality.  Upon the completion of
the consolidation process, we will have the leverage capacity and buying power
to increase the size of our portfolio to over $400 million in assets."
    Matthew Kaplan of Rothschild Realty added, "The Encore team has
demonstrated their exceptional ability to acquire and operate hotel properties
for the benefit of their investors, and we are excited about being a part of
their team going forward."

    Raymond James & Associates, Inc. advised Encore on the transaction.  For
further information about Encore, Five Arrows or the transaction, please
contact:

     Patrick Barber
     President
     Encore Hospitality, LLC
     1201 25th Avenue, Suite 200
     Gulfport Mississippi, 39501
     228-864-9888

     Matthew Kaplan
     Managing Director
     Rothschild Realty, Inc.
     1251 Avenue of the Americas
     New York NY, 10020
     212-403-3515

     Kent Griffin
     Vice President
     Raymond James
     880 Carillon Parkway
     St. Petersburg FL, 33716
     727-567-1926

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