Carnegie Hotel Development Associates Breaks Ground on First Residence Inn in Princeton, N.J.; Paramount Hotel Group to Oversee Construction, Manage Hotel.

Business Editors

FAIRFIELD, N.J.--(BUSINESS WIRE)--June 30, 2003

Carnegie Hotel Development Associates, a joint venture between a private investment group and Paramount Hotel Group, a third-party, independent hotel management and ownership group, today announced that it has broken ground on the first Residence Inn by Marriott to be built in Princeton, N.J. The 120-suite, upscale, extended-stay property is scheduled to open in spring 2004.

"Princeton is an exceptional market with extremely high barriers to new competition," said David Simon, Paramount chief executive officer. "We have been working on this project with our joint venture partners for more than two years. With so many major corporations located in the area, as well as the University, we believe that there will be significant demand for an upscale, extended-stay hotel in this market."

"Paramount's expertise in hotel development and operations, plus their strong relationship with Marriott, played important roles in our decision to partner with them," said Alan Landis, managing partner of Carnegie Hotel Development Associates. "We look forward to expanding our relationship with them on future projects."

Located at 3563 U.S. Route 1, the area's primary business corridor, the 120-suite Residence Inn Princeton is in the heart of the Carnegie Center Office Park, a 450-acre, upscale office park, currently with more than 2 million square feet of office space. The property is adjacent to Market Fair Mall, an upscale shopping area that includes such well-known stores as Restoration Hardware, Barnes and Noble, The GAP, Pottery Bar and a broad cross-section of restaurants. The hotel is one mile from Princeton University/Palmer Square.

The Residence Inn Princeton will offer studio, one-bedroom and two-bedroom suites, each with a fully equipped kitchen, including coffee maker, microwave oven and full-sized refrigerators and stoves. A complimentary hotel breakfast buffet is available each morning.

For business travelers, each room will be equipped with high-speed Internet access. The property's meeting facilities will be capable of handling up to 50 people.

Other amenities include an indoor swimming pool and fitness center, an outdoor SportCourt and picnic area, an upscale hearth room/lobby and weeknight dinner/social hour.

Paramount Hotel Group, founded in 1999, is a mid-sized, independent hotel management and ownership group. The company currently manages and/or has ownership interests in 25 properties, with more than 3,000 rooms, primarily under the Marriott, Hilton and Park Inn flags, as well as independent hotels.