UNITE HERE Local 11 Rockpoint Investor Alert: Union Files Cal/OSHA Complaint Alleging Rat, Cockroach and Maggot Sightings at The Westin Long Beach, Raises Performance Issues at Rockpoint-managed funds

LONG BEACH, Calif.--(BUSINESS WIRE)--Investors should be aware of issues regarding the Westin Long Beach hotel, owned by real estate private equity firm Rockpoint, that present potential Environmental, Social and Governance risks. Hotel workers at the Rockpoint-owned hotel concerned for their health and safety have submitted a complaint to Cal/OSHA.

Investors should also be aware of Rockpoint’s investment performance. Rockpoint Real Estate Fund V, which owns the Westin Long Beach hotel, currently has an -1.36% IRR, according to the most recent performance records from data provider Pitchbook.ⁱ Rockpoint Real Estate Fund V’s performance lags 130 peer funds by an average of 11.45%. But this is not the only Rockpoint fund that appears to be struggling. Here is a list of additional funds that investors should note, all of which are performing in the bottom 25% of peer funds (4^th quartile):ⁱⁱ

Fund	IRR		IRR vs. Benchmarks		Fund Quartile
Rockpoint Growth & Income Real Estate Fund I	2.79	%	-7.77	%	4th
Rockpoint Growth & Income Real Estate Fund II	-1.51	%	-12.54	%	4th
Rockpoint Growth & Income Real Estate Fund III	-13.58	%	-24.97	%	4th
Rockpoint Real Estate Finance Fund I	-5.58	%	-13.18	%	4th
Rockpoint Real Estate Fund V	-1.36	%	-11.45	%	4th
Rockpoint Real Estate Fund VI	6.25	%	-4.45	%	4th

On July 20^th, workers protested outside the Westin Long Beach where supporters wore rat costumes and related props to draw attention to workers’ allegations that they have observed what appeared to be rats in the food storage room of the Hotel’s kitchen and roaches in the Hotel’s banquet kitchen. Workers documented alleged rodent sightings as recently as mid-June of 2024. In July 2023, a worker also documented an alleged sighting of what appeared to be maggots on unwashed dishes in the Hotel’s banquet kitchen.

The Westin Long Beach has been embroiled in a fierce labor dispute with its employees since the union contract expired on June 30, 2024. Westin employees join workers across the Los Angeles area who have fought for and won better wages and working conditions in what has become the largest hotel worker strike in modern history. The workers’ primary contract goals include wage increases to keep pace with the soaring cost of housing in Long Beach, quality and affordable health insurance, a pension to retire with dignity, and humane workloads.

“As hotel workers we strive to provide the best customer service to our guests, and we deserve a safe and healthy working environment. We urge the hotel to take immediate action to ensure that our workplace is safe. They need to listen to us as we fight for what we deserve,” said Wendy Bonilla, one of the complainants and a worker at the Westin Long Beach.

Rockpoint investors should ask the firm the following questions:

• Did Rockpoint fail to take appropriate steps to prevent the alleged presence of rats and roaches at their Westin Long Beach hotel, as well as the alleged presence of what appeared to be maggots on unwashed dishes in the hotel’s banquet kitchen?
• How and when will Rockpoint address health and safety concerns brought by Westin Long Beach workers to the California Division of Occupational Safety and Health?
• Why has Rockpoint failed to resolve the labor dispute at the Westin Long Beach by agreeing to a contract that over 60 other Southern California hotels have signed?
• What steps will Rockpoint take to guarantee labor peace in their current and future hospitality investments that would protect investors from ESG risks?
• What explains Rockpoint’s poor performance relative to peers as reflected in the data summarized above?

UNITE HERE Local 11 is a labor union representing more than 32,000 hospitality workers in Southern California and Arizona that work in hotels, restaurants, universities, convention centers and airports.

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i} Performance data for Rockpoint-managed funds from data provider Pitchbook as of Q1 2024 for Rockpoint Real Estate Fund V
ⁱⁱ Performance data for Rockpoint-managed funds from data provider Pitchbook as of Q1 2024 for Rockpoint Real Estate Funds V and VI and as of Q4 2023 for Rockpoint Growth & Income Real Estate Funds I, II and III and Rockpoint Real Estate Finance Fund I