Emilio Doporto Mazen El Khatib Brian Franford Joshua Lanesky Meghan Leahey James O'Hagan

1. Caparra Hotel , Casino & Spa Old San Juan, Puerto Rico Emilio Doporto Mazen El Khatib Brian Franford Joshua Lanesky Meghan Leahey James O'Hagan Philip Cha Jason Pizzo Teddy Schiff Matthew Vander Werff Michael Wilhite Paul Yoo

2. Agenda • The Name • The Opportunity • Concept and Layout • Target Markets & Differentiation • Market Comparables • Site Images • Critical Success Factors • Financial Analysis

3. The Name • Caparra is the name of the original settlement of Puerto Rico which Juan Ponce De Leon founded back in 1508. • The name pays homage to the history of the island and also presents a sexy branding opportunity.

4. The Opportunity Why Old San Juan? • US Colony • Tax Haven • Business Destination • Cruise Destination • Proximity to the US and South America • Urban location with Tropical Amenities

5. The Program • Total built area (not including parking): 373,850 sf  (max build out is 375,000 sf) • Parking: 279,841 sf ( @ 375 sf per space = 529 spaces) • Ground level retail:  23,100 sf •  Second and Third Level retail/restaurants:  31,900 sf • Total Retail: 55,000 sf • Hotel:  212,500 sf gross  (Contains 238 units) • Condo:  91,350 sf gross (Contains 102 units) • Casino:  15,000 sf

6. Partnership with Boyd Gaming • Given that NY/NJ tourists make up ~23% of all tourists in PR, a recognizable name would work best. • Boyd Gaming owns and operates: • 9 hotel casinos in Nevada • 7 hotel casinos in the midwest • The Borgata in Atlantic City, NJ • The Caparra Hotel would feature: • Bobby Flay Steakhouse -OR- • Wolfgang Puck American Grill

7. Target Markets Hotel and Casino Guests • Hotel Tourists • General Tourist Market--given the establish nature of the destination within the Caribbean • Business & Convention Market--given size of pharmaceuticals, electronics, textiles, petrochemicals, processed foods, clothing and textiles industries • Passenger Cruise Tourism Market--encompassing 1.5 million passengers every year spending in excess of $100 pp Hotel Condo Owners • Mainland US resident Investors attracted to the tropical climate, proximity and the significant tax benefits of owning residential property in Puerto Rico.

8. The Cruise Ship Market

9. What Makes Us Different? Suggested Points of Difference -- Hotel • Design – open floor plan to maximize use of limited space • Spacious living spaces – fine for short term stay • Amenity & Services • Balcony – advantageous given climate and views Points of Difference – Condominium • Dual Key option mimicking hotel room open plan living concept • Need reasonable size kitchen for extended stay • Waterfront views • Garage – debatable as to the need for a 1:1 unit ratio – need to discuss given minimum requirement of 450 spaces • Residential Car service for condo owners like Setai Miami Range Rovers

10. Market Comparables--Hotel

11. Market Comparables--Casino

12. Market Comparables--Condo

13. Market Comparables--Retail/Restaurant

14. Sectional Layout and Floor Plans

15. Site Images—Axonometric View

16. Site Images—From the Ocean

17. Site Images—Across the Pool

18. Critical Success Factors • Integration of the hotel/casino with the cruise ship crowd • Parking/Traffic Issues • Differentiation from competitors • Success of the restaurants/retail • Maximization of location and views

19. Financial Analysis • Project Costs: • Total Project Cost: $116M • Hard Costs: $50M • Soft costs: $19M • Parking: $14M • Development Fee (5%): $5.5M • Revenue • Hotel: $220 ADR • Casino: $75 S/F • Retail: $45 S/F • Residential Condo Sale: $512 Sales per S/F

20. Financial Analysis • Returns (IRR) • Residential Condo Sale: 31.7% • Hotel: 23.9% • Casino: 26.5% • Retail: 22.8% • Blended Return: 24.9%