Shaner Growth Fund Successfully Purchases $154,400,000 of Mortgages Secured by Hospitality Properties

STATE COLLEGE, Pa. — Lance Shaner, Chairman and Chief Executive Officer of Pennsylvania based Shaner Hotel Holdings, is pleased to announce the acquisition of $154,400,000 in performing hotel loans in 2009. In two separate transactions $64,400,000 of hotel mortgages were acquired by Shaner Growth Fund LP, owned by Lance Shaner. A third transaction for $90,000,000 was acquired by a private REIT capitalized with cash contributions made by Mr. Shaner and Five Arrows Realty Securities V, LP (“the REIT”). The three loans are secured by a 99-room Homewood Suites, located in Orlando, Florida, the 403-room Westin Savannah Harbor Golf Resort located in Savannah, Georgia and a 548-room Marriott Renaissance located in Las Vegas, Nevada.

Shaner is experienced in real estate transactions and has worked through a variety of business cycles over the last 30 years and believes this market is an opportunity to acquire hotel loans. “Our knowledge of the hotel industry has put us in the right place to fully evaluate and acquire hotel loans that meet our underwriting criteria,” said Shaner. Shaner has been working with a variety of lenders including local, regional and national institutions in its acquisition of hotel debt.

Shaner Growth Fund II, LLC the REIT was created to target the acquisition and to capitalize on economic conditions in today’s commercial real estate market. It’s expected that the REIT will purchase up to $200 million in hotel loans. The typical holding period for projects in the REIT is 5 to 7 years. “Our goal is to leverage these economic conditions by purchasing notes at levels that will yield strong returns for our investors,” Mr. Shaner said.

For a confidential discussion about selling a hotel mortgage to the REIT, email Plato Ghinos at pghinos@shanercorp.com or call (888) 861-0324.

About Five Arrows Realty Securities:

Five Arrows Realty Securities V, L.P. is the latest in a series of funds organized and managed by Rothschild Realty Managers, a New York-based investment advisory firm. The Five Arrows Realty Securities funds, which are capitalized by contributions from pension funds, endowments, foundations, and high net worth individuals, provide entity-level growth capital to public and private real estate operating companies. Since their inception in 1996, the funds have committed approximately $1.5 billion of capital into 22 entity-level investments.

About Shaner Hotel Group:

Shaner Hotel Group is part of the Shaner Companies, a privately-held entity based in State College, PA that owns and manages diverse investments in the lodging, investment, energy and professional service sectors. Shaner Hotel Group owns and manages 30 existing hotels throughout the United States and has several more in construction.