July 16 , 2007

(RESEARCH TRIANGLE PARK, NC)   The Generation Companies, LLC (Generation), a Research Triangle Park-based real estate developer, owner, asset manager and operator of extended stay hotels, announced today that it has finalized more than $100M worth of capital transactions over the last 6 months. These capital events include Generation’s first institutional equity transaction, the sale of an 80% equity stake in Generation Properties I, LLC (GP1), a nine-property extended-stay portfolio, to a New York City-based institutional investor in Q4 of 2006.

In May 2007 Generation sold a majority equity stake and did a complete refinance of all debt for Generation Properties II, LLC (GP2), a six-property extended-stay portfolio. “These events represent a significant benchmark for the company and an expanded business model for us,” said H. Mark Daley III, Generation president. “Our business now goes beyond developing or acquiring one-off hotels to creating profitable extended-stay hotel portfolios and offering them to a diverse profile of investors. We are creating value and enhancing our investor’s liquidity by matching the right hotel investment opportunity with the right investors to make it a win-win for all parties.”

Generation, which recently celebrated its 10-year anniversary, currently has two extended-stay hotels under construction, and recently acquired a Mainstay Suites in Port St. Lucie, FL. Collectively these three hotels create the basis for Generation’s next portfolio (GP3) scheduled to be formed in 2008. “We are very pleased with the performance of the first two Generation portfolios with each providing investors with better than market returns,” stated Randy Coupland, Chief Financial Officer. “In structuring GP3 we anticipate this performance trend to continue.

The Generation Companies is a Research Triangle Park, North Carolina-based real estate developer, asset manager and operator of extended stay hotels in North Carolina, Virginia, Florida and Tennessee. Generation has more than 2700 hotel rooms and $200 million in real estate assets under management, and employs over 350 associates at 23 properties. Generation is actively seeking new acquisition and development opportunities in the extended stay segment. For more about Generation, visit www.generationcompanies.com.