PHOENIX (June 3, 1997) - The Ritz-Carlton, Phoenix, a Mobil Four-Star luxury hotel owned by the Pivotal Simon Group, will undergo a $35 million expansion that will bring the hotel to more than 400 rooms and offer luxury condominiums.

Located at 24th Street and Camelback in the 1.5-million-square-foot Camelback Esplanade mixed-use development, the Ritz-Carlton is in the heart of Phoenix's most exclusive business and shopping district. The expansion site is at the current tennis court complex directly south of the hotel.

The 13-story expansion will add 132 rooms and numerous amenities to one of Phoenix's premier luxury hotels. With a new, two-story underground parking structure as its foundation, the project will include a 10,000-square-foot ballroom on the first floor; an additional 8,000 square feet of meeting spaces and swimming pool on the second floor; and 22 rooms per floor on floors three through eight. From floors nine through 13, the expansion will feature 17 condominiums to be sold as private residences and corporate accommodations. The Ritz-Carlton will provide cleaning and room services for these condominiums.

"The combination of 413 luxury hotel rooms, new amenities and a prime location will
make the Ritz-Carlton even more attractive to people attending conventions, corporate business functions and sporting events in the downtown area and throughout Greater Phoenix," said Francis Najafi, Pivotal Group's managing partner.

James R. Worms, president of William E. Simon & Sons Realty, agrees with Najafi. "This expansion has been designed to accentuate the unparalleled standard of quality by which people have come to regard the Ritz-Carlton," said Worms. "By adding these amenities, rooms and condominiums, we are building upon the (Ritz-Carlton) tradition of excellence in the hospitality marketplace and creating new, upscale housing opportunities in one of Phoenix's most popular areas."

In May 1996, Pivotal Group formed a partnership with Los Angeles-based William E. Simon & Sons Realty to acquire The Ritz-Carlton from Boston-based Aldrich Eastman Waltch for $37 million.

The architect for the expansion is Cornoyer-Hedrick. The project is expected to be completed in early 1999.

For more information about Pivotal Private Equity, visit www.pivotalgroup.com