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HVS Capital Corp. And Madison Capital Unite To Provide Hospitality Financing

For Immediate Release
Denver, Colo. – HVS Capital Corp. (“HVS”), the investment banking division of HVS International, announced today the creation of a joint venture with Madison Capital Management, LLC (“Madison”) to provide subordinated debt and equity financing to the hospitality industry. Madison is a New York-based alternative investment management firm specializing in real estate, distressed and special situations financial assets. The primary focus of the joint venture, HVS/Madison Capital Partners (“HVS/Madison”), is to provide financing for all segments of the hospitality industry in the form of mezzanine debt/second mortgage loans, preferred equity and “B”-pieces of senior mortgage loans. The joint venture also intends to pursue secondary purchases of institutionally-held limited partnership/joint venture interests and distressed debt opportunities in the hospitality sector – both of which have been long-standing areas of investment focus for Madison. “Conventional financing continues to be limited for many hoteliers, creating a significant need to access capital above and beyond traditional sources. HVS/Madison’s aggressive funding parameters, creative transaction structuring and focus on sub-$15 million subordinated pieces of deals will allow us to offer an attractive financing solution to many of our clients,” said Mike Sullivan, HVS Managing Director. “We are excited about our ability to bring an expanded menu of services to our clients, and look forward to working with Madison.” “Our partnership with HVS will provide Madison with a very attractive silo of investment opportunity, as well as preferred access to their hotel/asset management, receivership, asset brokerage, market research, appraisal and other outstanding consulting services. Real estate, and the hospitality sector in particular, has been a primary industry focus for Madison since the firm’s inception in 1996,” said Bryan Gordon, Chairman and Managing Director of Madison. “As we seek to expand our involvement in the hospitality sector given secular trends which we view as highly favorable, HVS will be an extremely valuable partner for Madison. We are certainly pleased to have teamed-up with one of the most respected advisors in the hospitality industry, and believe the synergies to be gained through this partnership will be immense.” Background Information HVS is the investment banking division of HVS International. Established in 1980 by Stephen Rushmore, HVS International is a global consulting and services organization focused on the hotel, restaurant, timeshare, gaming and leisure industries. The firm has provided financial and valuation consulting services for over 8,000 hotels in all 50 states and more than 60 foreign countries. With 20 offices in 10 countries and more than 200 consultants worldwide, HVS International performs more than 1,500 assignments per year for virtually every major industry participant. For more information, visit www.hvsinternational.com. Founded in 1996 by Bryan Gordon, Madison is an alternative investment management firm specializing in real estate, distressed and special situations financial assets. The firm has offices in New York, Denver and Kansas City, and through Madison (Europe), in Paris. Utilizing an event-driven and value-oriented investment approach, Madison has invested more than $325 million in capital. For more information, visit www.madisoncap.com.
For further information, please contact: Michael Sullivan 303-512-1222 msullivan@hvsinternational.com ###