�The struggle which investors and sellers seem to have in coming to agreement on value and pricing makes this number of quality hotel transactions significant. We believe this volume demonstrates that the majority of well-built, well-located hotels are maintaining desirable operating numbers and that hotel real estate continues to be a sought-after investment,� said Robert Koger, president of Molinaro Koger. Through the end of September 2002, Molinaro Koger completed 39 hotel real estate transactions. This compares to 33 transactions for the same period in 2001.

Robert Koger

�We are experiencing strong deal flow, however, the average transaction is smaller than one year ago,� said Mr. Koger, during his participation as a speaker a panel on hotel valuations during today�s session at the Arizona Biltmore.

�This is due to the fact that most institutional owners have not placed their properties on the market.  We anticipate this to change in the 4th Quarter of this year as operating fundamentals continue to improve.

�Clearly, businesses have been affected by the confluence of economic events over the past year. However, we have been successful in continuing to market and close properties for our clients. In our experience, investor interest in hotel real estate remains high as investors are focusing on the long term prospects of the industry.�

The undoubted higher equity injections currently required of borrowers have placed investors with large reserves of private capital at the lead of the acquisitional pack, according to Mr. Koger.

�In 2002 placing financing for U.S. hotel acquisitions has proven somewhat more challenging than in previous years,� confirms Mr. Koger. �Our success in closing properties this year is a testament to our brokers tenacity, keen market insight and excellent connections within the lending community.�

Transactions among the 39 properties closed to date by Molinaro Koger in 2002 include a variety of brands including Marriott, Sheraton, Hilton, Hampton Inn,  Holiday Inn, AmeriSuites, Doubletree GuestSuites, Comfort Inn, and Fairfield Inn. 

The company closed a portfolio sale of Texas AmeriSuites properties on behalf of Lane Hospitality, Northbrook, Illinois in mid-September.  The sale, which was completed for an undisclosed price, encompassed three hotels and 384 rooms. John Jameson, managing director of Molinaro Koger�s Midwestern operations, structured the sale of the properties to a Texas-based investment group.

The AmeriSuites Austin Arboretum; the AmeriSuites Houston Greenspoint; and the AmeriSuites San Antonio Airport comprised the portfolio. In addition to owning and operating hotel properties, Lane Hospitality is one of the nation�s largest and leading private third-party hotel management firms.

Molinaro Koger is an international hotel real estate brokerage firm headquartered in metro-Washington, DC, with offices in Chicago, Atlanta and London. The firm structures boutique through luxury hotel transactions throughout the Americas and Europe. Molinaro Koger is the only brokerage to have captured each of the highest awards issued by Hotel Brokers International, Highest Volume, Largest Transaction, Broker of the Year, and Salesman of the Year, for five consecutive years.

Joseph Molinaro founded the firm in 1959, and since then Molinaro Koger has successfully marketed hotel real estate, sponsored limited partnerships, and arranged financing for purchasers. Given the cyclical nature of real estate, the firm has weathered an array of highs and lows during the course of its 42-year history. Throughout that time, the company has grown and assisted clients in achieving their investment goals.

�In each portion of the cycle we gather strength, expertise and contacts. We are able to serve our clients best interests regardless of economic highs or lows,� says President Robert Koger. �The results we achieve are directly attributable to the commitment and expertise of our professional staff.�

Molinaro Koger can be accessed online at www.molinarokoger.com.