Morgan Stanley

Morgan Stanley Real Estate Completes Acquisition of Eight European Hilton Hotels

Jul 23, 2007

London —

 

Morgan Stanley Real Estate announced today that it has completed the acquisition of eight European Hilton hotels.  The completion of the sale of two further hotels -- Hilton Brussels and Hilton Zurich -- is expected by the end of the third quarter 2007.  The acquisition price for all 10 hotels is €566 million.

“We have grown our lodging platform significantly during the last year and this transaction is key to that growth,” said Marco Polenta, Managing Director and Head of Morgan Stanley Real Estate Investing, Europe.  “The addition of these high quality hotels spanning major cities across Continental Europe complements our existing platform of more than 100 hotels globally.  We look forward to working with Hilton as they continue to manage eight of the 10 hotels.”

The eight hotels are Hilton Dresden, Hilton Dusseldorf, Hilton Weimar, Hilton Charles de Gaulle, Hilton Strasbourg, Hilton Luxembourg, Hilton Barcelona and Los Zocos Club Resort in the Canary Islands.

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending.  Since 1991, Morgan Stanley Real Estate has acquired $121.5 billion of real estate assets worldwide and currently manages $55.6 billion in real estate assets on behalf of its clients. A complete range of market-leading investment banking services for real estate clients include advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings.  As a global leader in real estate lending, Morgan Stanley has offered approximately $156.0 billion of CMBS through the capital markets since 1997, including $35.5 billion in 2006.  For more information about Morgan Stanley Real Estate, please visit www.morganstanley.com/realestate.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 32 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Contact: Media Relations, Carlos Melville, +44.207.425.8955