Building windows

JMBM Closes Loan On $800 Million W Hotel Mixed-Use Development Eco-minded "Green" W Hotel & Residences to be built on Prime Hollywood Development Site

LOS ANGELES – July 9, 2007—Jeffer, Mangels, Butler & Marmaro LLP (JMBM), one of California’s foremost full-service law firms, today announced that its Global Hospitality Group® closed the senior debt portion of the capital stack on one of the largest single hotel mixed-use projects in the country. The complex construction loan transaction was for JMBM client, HSH Nordbank AG, a leading credit institution headquartered in Hamburg, Germany, and particularly renowned for very large construction loans on luxury hotel projects.

"This is going to be one of Hollywood’s flagship developments," said attorney Guy Maisnik, lead counsel specializing in hospitality transactions. "This is a very high-profile asset, backed by two of the most respected developers in the hospitality arena. Their expertise, combined with JMBM’s experience in hotel transactions and HSH Nordbank’s hands-on approach to construction lending, is exactly the kind of synergy that will make a development project of this magnitude a success."

A Leadership in Energy and Environmental Design (LEED) certification project, the Hollywood W Hotel & Residences will be at the forefront of the "Green" hotel movement sweeping the country. A joint venture planned by developers HEI Hospitality, a hotel investment and operating company, and Gatehouse Capital Corporation, the largest owner and developer of W hotels in the United States, the all new luxury hotel mixed-use development will be located on a 4.5 acre site at the world-famous intersection of Hollywood and Vine. Featuring more than 60,000 square feet of street-level retail space, the all-inclusive structure will include spectacular views of the Hollywood Hills, a 300 room hotel, with 143 luxurious condominiums and 374 apartments as well as a 9,200-square-foot Bliss® Spa.

The complexity of the financial transaction required a multidisciplinary understanding of standards unique to a hotel/residential/retail mixed-use property, such as shared facility issues and maintenance obligations. Drawing on practical experience and resources that the Global Hospitality Group® has developed in advising clients on more than 100 hotel mixed-use projects over the past 5 years alone, the team led by JMBM hospitality partner Guy Maisnik was able to guide the transaction to a successful on-time closing.

"The Hollywood W will add a whole new element of class to one of the most celebrated intersections in the world," continued Maisnik. "Its construction is expected to give a significant lift to the exciting ongoing revitalization of Hollywood."

About JMBM’s Hospitality Group

JMBM’s Global Hospitality Group® creates legal and business solutions for hotel owners, developers and lenders. Comprised of more than 50 lawyers, the Group has handled more than $40 billion of hotel transactions around the globe. Facilitating the flow of capital with hospitality industry savvy and broad legal expertise, the Global Hospitality Group® provides a major gateway to hotel finance and serves as a bridge between providers and consumers of capital.

For more information on the transactions closed or to discuss your hospitality project with an experienced hotel lawyer, please contact:

Jim Butler