n e w s

FOR IMMEDIATE RELEASE
August 24, 2007

For More Information:
Chris Schroder, SchroderPR, 404.872.7289
chris@schroderpr.com

New High-End $86 Million Hotel Breaks Ground in Midtown Atlanta

ATLANTA, August 24, 2007 - Dallas-based Hillwood has joined with Kim King Associates to fund and develop Midtown's new Hotel Palomar-Atlanta, a high-end boutique style hotel managed by Kimpton Hotels & Restaurant Group. Construction on the [upscale] Hotel Palomar at 866 West Peachtree began last week with the grand opening scheduled for May 2009.

Hillwood, whose chairman is Ross Perot Jr., is ranked among the top real estate developers and investors in the U.S. and is recognized for its high-profile projects, including Victory Park and American Airlines Center near downtown Dallas and the 17,000-acre AllianceTexas development, located 15 miles northwest of DFW Airport. .

"With such an esteemed name and his firm's outstanding experience in development all over the country, we are honored to welcome Ross Perot Jr. and the Hillwood team to Atlanta as a partner in this new hotel," said Beau King, President of Kim King Associates. "This development is a huge step in the evolution of our firm, and together we will deliver an iconic building to one of the most exciting areas of the Midtown submarket."

"With Kim King Associates and Kimpton Hotels, Hillwood is confident that we have the best team in place to make the Hotel Palomar-Atlanta a premium experience not only for the southeastern U.S., but for the entire country," said Ross Perot Jr. "This project is part of Hillwood's continuing plan to be involved in strategic partnerships, particularly in the hotel segment, where our expertise, our brand and our focus on quality add significant value to the overall development."

The development partnership also includes Ross-Patterson, an Atlanta hospitality consulting firm controlled by Butch Ross of Barry Hotel Partners and Chip Morgan Patterson, owner of Ameripark. Ross-Patterson helped to secure Kimpton Hotels & Restaurants as the operating partner as well as structure the transaction.

By developing this new hotel, which will be the first hotel addition to come onto the Midtown market in several years, they hope to give both Atlantans and visitors a new choice in upscale accommodations.

"With all the retail, residential and office development in this area, the timing was right to introduce this product - not just a hotel, but a Kimpton Palomar," said Butch Ross. "This is a unique development opportunity for Atlanta. The boutique hotel industry is prevalent in New York, California and Boston, but not in Atlanta. Now, visitors will have another high-end option."

The 21-story, 390,000-square-foot hotel will feature 304 rooms, one of the top destination restaurants in the city, and a large, vibrant terrace bar perched on top of the parking deck. The pet-friendly hotel will also feature over 10,000 sq. ft. of meeting space, a hosted evening wine hour featuring "Wines of the World," and in-room spa services.

"The hotel development business is not for the faint of heart," said Ross. "Beau King and his team are to be commended for solidifying this partnership. Office leases can be written for 15 years, but we lease a hotel one room, one night at a time."

About Kim King Associates

Kim King Associates, Inc. (KKAI) is an Atlanta-based, full service real estate firm that creates value through commercial, residential and mixed-use development and through select acquisition and repositioning of underperforming assets.
www.kimkingassoc.com

About Beau King

D. Kimbrough (Beau) King, Jr., son of company founder Kim King, is the President of Kim King Associates and has been with the firm since 1999. After his father's death in 2004, Beau took over the family business. His responsibilities include the identification and evaluation of acquisition and development opportunities, structuring and executing transactions, asset and development management and company management. He serves on the Board of Directors of the Midtown Alliance and Midtown Bank and Trust. Prior to joining the company, King served as an Assistant Vice President at B & I Lending, LLC, a small business lender. Mr. King graduated from Washington and Lee University with a Bachelor of Arts in Economics.

About Hillwood

Hillwood (www.hillwood.com) is known for its high-profile projects and public-private ventures that bring tremendous value to its customers and partners. The company's developments currently house facilities for 85 companies listed on either the Fortune 500, Global 500 or Forbes List of Top Private Firms. Hillwood has a wide range of expertise that encompasses a diverse group of product types, including arenas, high-rise condominiums, offices, residential communities, distribution centers, regional malls, mixed- use urban development, hotels, golf courses, airports, and corporate campuses

About Kimpton

San Francisco-based Kimpton Hotels & Restaurants is the first and leading collection of boutique hotels throughout the United States and Canada. Founded by Bill Kimpton in 1981, privately held Kimpton Hotels offers services and design elements focused on care, comfort, style, flavor and fun. Every Kimpton hotel reflects the energy, personality and pulse of its location, history and architectural style. Each property features personalized guest services, comforting in-room amenities, specialty rooms and suites, and provides a range of exciting culinary experiences through affiliated top-rated destination chef-driven restaurants. Kimpton takes pride in its commitment to social responsibility and leads the hospitality industry in ecological practices through its innovative EarthCare programs. In addition, Kimpton demonstrates a unique dedication to its female guests with the Women InTouch program, offering comfortable and safe environments, in-room fitness and wellness options as well as the company's unique "Forgot It, We've Got It" honor bar, providing essentials that women travelers may have forgotten at home. Among the company's newest properties are the Hotel Palomar in Washington D.C., which opened in July 2006, and the Hotel Palomar Dallas, which opened in August 2006. Additional projects are underway in Southern California, Texas, Florida and Virginia. For more information, please visit www.KimptonHotels.com or call 1-800-KIMPTON.

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