Joint-Venture Fund Formed to Acquire up to $800 Million of Hotels

Fund to focus on turn-around high quality, upscale and limited-service hotels and resorts

BOSTON, Mass., April, 2005 — Pyramid Hotel Group LLC (Pyramid), a Boston-based hotel development, management and ownership firm, today announced that it has formed a joint venture with Morgan Stanley Real Estate Funds, Contrarian Investment LLC and other institutional investors to acquire up to $800 million in hotel assets. Pyramid will operate the hotels.

Called the Pyramid Investment Fund (?), the joint venture seeks to acquire high quality, upscale and limited-service hotels and resorts, ranging in size from ___ to ___ rooms.  Target properties typically will benefit from strategic investment to reposition and possibly re-brand the hotel, as well as benefit from superior management.

The fund has acquired one hotel to date and is aggressively seeking additional properties.  The company acquired the former 423-room Hyatt Oak Brook in February.  The hotel immediately was converted to the Doubletree Hotel, Chicago-Oak Brook, and will undergo an approximate $15 million renovation over the next 12 to 18 months.  The renovation will include a total makeover of all guest rooms and public spaces and will be completed in phases to minimize disruptions to guests.

Pyramid Hotel Group LLC, founded in 1999, is a full-service hotel company that owns, manages and asset manages hotels and manages hotel construction/renovation projects.   For more information about Pyramid Hotel Group LLC, visit the company’s website, www.pyramidadvisors.com.