RESIDENCE INN MANHATTAN BEACH PURCHASED BY INVESTCORP

MANHATTAN BEACH, CA — Investcorp Real Estate has acquired the 176-room Residence Inn Manhattan Beach. Investcorp has entered into a franchise agreement with Marriott, which includes the Residence Inn brand. The alternative asset manager has created a capital investment plan that will include a new gatehouse, as well as renovations and upgrades to the property's exterior and guest rooms. Total consideration for the acquisition was about $40 million, a large portion of which is capital reserved for the renovation. Morgan Stanley provided the mortgage financing. Interstate Hotels & Resorts, an existing Investcorp operating partner, will continue providing management and operation services for the property.