European Joint Venture to Sell 18-Hotel U.S. Portfolio

Morgan Stanley to Advise on Sale, Pyramid Hotel Group Named Asset Manager

NEW YORK, January 8, 2004 — Grubarges Inversión Hotelera, S.L., a Madrid-based joint venture between Grucycsa, a division of FCC (www.fcc.es), one of Spain's largest construction companies; Barceló (www.barcelo.com), an international travel and hotel company headquartered in Palma de Mallorca, Spain; and BBVA (www.bbva.es), Spain's second largest bank, today announced that it will sell its portfolio of 18 U.S. hotels as it winds down its five-year joint venture. In addition, Grubarges said it plans to sell six hotels in Spain. Proceeds from the sales will be used to repay Grubarges' debt.

The joint venture has appointed Morgan Stanley to act as its financial advisor on the sale of the 18 U.S. properties, as well as six hotels in Spain. Pyramid Hotel Group, a Boston-based hotel company, has been named as asset manager of the 18 U.S. hotels until they are sold.

The joint venture has owned and managed up to 30 hotels in the United States, Europe and Mexico since it was formed in 1998. Following the sale of the hotels, BBVA and Grucycsa will transfer their holdings in Grubarges to Grupo Barceló, a division of Barceló, which will retain ownership of the venture's four Mexican assets. "We believe the U.S. hotel industry is on the upswing, creating an excellent opportunity to implement our exit strategy," said a spokesperson for Grubarges. "The portfolio consists of well-located hotels that have excellent

turnaround and upside potential. This will likely be one of the largest and most desirable portfolios on the market in 2004. In fact, prior to making the decision to sell the properties, we had already received a significant amount of interest from potential buyers. Morgan Stanley will be marketing the properties in what is designed to be a broad, dynamic auction process."

The U.S. properties, totaling 4,104 rooms, include two Clarion hotels, 13 Four Points by Sheraton hotels, one Sheraton hotel and two Radisson hotels. The properties are located in 12 states and the District of Columbia, in such major cities as Boston, Chicago, Denver, Detroit, Los Angeles, Phoenix, Pittsburgh, San Francisco, Washington, D.C., as well as several major northern New Jersey suburbs. "We will be flexible in our marketing approach and may sell the hotels in one portfolio, several smaller portfolios or individually, depending on market conditions," said a spokesperson for Grubarges.

The 18 U.S. hotels to be sold are:

Confidential sales packages on the hotels are available from Morgan Stanley by contacting: