WASHINGTON, D.C./JACKSONVILLE, Fla., August 6, 2007—Crescent Hotels & Resorts, a rapidly growing hotel and resort management and ownership company, today announced that it has entered into a joint venture with The Clarkson Group (TCG), a national real estate investment and development group, to develop upscale, select-service hotels. Under terms of the agreement, Crescent has invested in three Clarkson Group-developed hotels in Florida and Georgia and will invest in two additional hotels currently under construction.

Up to eight to ten additional hotels will be developed over the next two years, as part of this joint venture. Crescent will manage the joint venture’s hotels. New hotel sites will be on the Eastern Seaboard and Washington, D.C. and concentrate on the leading hotel brands, including Marriott Residence Inn, Starwood’s aloft and Element, IHG Staybridge Suites, Hilton’s Homewood Suites and Hampton Inn, and Hyatt Place.

“This joint venture expands our investment platform into development with the added benefit of hotel management,” said Michael George, Crescent president and CEO. “Crescent’s master plan is built on diversification across the leading brands, locations, ownership, management and now development. We wanted to partner with an experienced developer to get the properties out of the ground while we focused on pre-opening and on-going management.

Clarkson has a more than 30-year proven track record in real estate development. It’s a perfect partnership,” he said.

“With Crescent’s extensive expertise in hotel operations and the economies of scale and synergies that their size brings, we believe our hotels will have a decided competitive edge in their respective marketplaces,” said Charles A. Clarkson, founder and chairman.

The Clarkson Group hotels include:

• Coconut Grove Residence Inn Miami, Fla. 140 suites
• Ybor City Hampton Inn & Suites Tampa, Fla. 138 rooms
• Historic Savannah Staybridge Suites Savannah, Ga. 104 suites

“These hotels have significant upside potential,” George said. “They will be great additions to our portfolio.” Properties currently under development and expected to open in early 2009 are:

• Residence Inn Birmingham, AL 123 suites
• Residence Inn Clearwater, FL 115 rooms

About The Clarkson Group
Founded in 1976, The Clarkson Group is a national development company. The company has developed, invested in and managed in a wide variety of real estate classes, including hotels, multi-family, office and industrial properties. The company is headquartered in Jacksonville, Fla.

About Crescent Hotels & Resorts
Headquartered in Fairfax, Va., outside of Washington, D.C., Crescent Hotels & Resorts owns and co-invests in hotel real estate, and is an independent, third-party operator of hotels and resorts. The company currently owns or operates 38 upscale and mid-market hotels and resorts aggregating over 6,000 rooms in 19 states. The company’s portfolio encompasses properties in the resort, full-service, convention and premium limited-service segments under the premier hotel flags of the leading brands of Marriott, Hilton, Starwood, InterContinental, Choice and Wyndham Hotel Group, as well as independent hotels and resorts. Additional information about Crescent Hotel & Resorts may be found on the company’s Web site www.chrco.com.