Boutique Hotel Group

1. Boutique Hotel Group Intimate hotels, uniquely designed, dedicated to details, and providing warm, highly personalized service

2. Collectively, the Boutique Hotel Group Management Team represents over150years of professional hospitality and real estate experience. 2

3. Organizational Chart Consultants: Japan: Systematic Technology Edward Avol V.P. / Bus Development Kelly Miyashita Public Relations Marideth Post Quality Assurance Jim Coyle 3

4. Operations Centralized Accounting Sales and Marketing Public Relations Revenue Management Information Technology Graphic Design Engineering Construction and Design Development Pre-Opening, Development and Technical Services Financing Services Acquisition and Disposition Services Legal Housekeeping Scope of Services Provided 4

5. William Howell Chairman Bill Howell has focused on real estate development, acquisitions, dispositions, hotel management, and the asset management of institutional grade investment property for his entire career. From 1986 through 1992, Howell served as Director of Acquisitions for Mitsui Fudosan in New York. Responsible for property acquisitions and dispositions totaling over $2 billion in value, he also directed all asset management functions of a multi-billion dollar global real estate portfolio. Prior to joining Mitsui Fudosan, Howell was a Director of the Saudi Arabian Investment Corporation, where he was involved in the acquisition and development of over $1 billion in investment grade United States properties on behalf of clients from Europe, the Middle East, and the Pacific Rim. In 1992, Howell established his own firm to provide hospitality real estate management and consulting services. He has 25 years of experience in the New York market. Howell earned a Bachelor of Science Degree from Southwestern University and a Masters in Environmental Engineering from the University of Oklahoma. Michael Murphy Executive Vice President, General Counsel Michael Murphy has 20 years of real estate transaction experience as a principal, consultant, and legal advisor. Murphy has been involved in real estate development, the acquisition and disposition of real property and secured debt, the ownership and management of hotels, and the asset management and strategic restructuring of institutional grade investment assets. As co-head of acquisitions for Patriot American Hospitality and Boykin Lodging Company, he was directly involved in negotiating and closing more than $1 billion of resort, hotel, and hotel management company acquisitions. Prior to joining Patriot, Murphy was the Chief Executive Officer of The Stonebridge Group in New York where he structured capital markets financing transactions and acted as both an advisor and principal in the area of commercial mortgage-backed securities. Murphy began his career as an attorney in New York representing institutional and corporate clients in real estate transactions. Murphy earned a Bachelor of Arts Degree from Williams College and a Juris Doctor from Fordham University Law School. He currently is a member of the AH&LA General Counsels Committee. Biographies of Key Executives 5

6. Steve Hanover Senior Vice President, Asset Management Steve Hanover is a seasoned professional with over 25 years experience in the commercial mortgage, asset management, real estate consulting, brokerage, design, and development fields. Starting his career as an architect designing major commercial and residential projects in the U.S. and abroad, he managed a planning and development consulting office for a 5,000 acre new town development in Doha, Qatar. Investment sales with Cushman and Wakefield followed with a term at a multi family housing development company selling apartment assets and originating take out loans. Steve spent eight years with Sun America Investments, Inc. as Vice President in charge of mortgage and real estate asset management for a $3.5 billion commercial mortgage portfolio responsible for workouts, foreclosures, bankruptcies, mortgage related litigation, property management, loan and property dispositions, servicing, and mortgage portfolio acquisitions. Steve was also responsible for underwriting, due diligence and closing of a $900 million loan portfolio from John Alden Life Insurance Company. Steve is a graduate of the University of Southern California, and has extensive experience in all phases of real estate as well as being a California licensed architect and real estate broker. Thomas Poitevent Director of Construction and Design Tom Poitevent has over 20 years of experience in the construction industry. Prior to joining Boutique Hotel Group, he completed the multi-million dollar renovation of the prestigious Mansion on Turtle Creek in Dallas and the construction of The Forrestal Hotel & Conference Center, a $10 million project in Princeton, New Jersey. As the Director of Construction, he led the project management team during the expansion of the Shoreham Hotel from 84 to 176 guestrooms and completed the guestroom and public space renovation of the Hotel Wales, both located in Manhattan. He has five years experience in the New York market. Poitevent earned a Bachelor of Science Degree in Business from North Texas State University. K.C. Patel Vice President, Development K.C. Patel has supported a range of corporate finance-related assignments, including financial modeling, market research and identification, customer segmentation analysis, development of acquisition criteria and execution support for target acquisitions. Prior to joining Boutique Hotel Group, Mr. Patel worked with Novantas – a financial-services consulting firm. He was responsible for identifying inefficient practices for clients through an investigative process, information gathering, data collecting and hypothesis building, developing findings and conclusions and recommendations of solutions, and report writing and presenting. Before Novantas, he worked at the hospitality real estate brokerage firm, Insignia/ESG Hotel Partners. At Insignia/ESG Hotel Partners, K.C. performed investment analysis and deal structuring for both buyer and seller engagements. In addition, he has been engaged on several underwriting projects with Credit Suisse First Boston. Patel earned his Bachelor of Science in Business Administration from Cornell University's School of Hospitality Management in Ithaca, New York. 6

7. David C. Lee Vice President, Operations David has over 15 years of experience in commercial real estate transactions, management and hospitality operations. David joined Boutique Hotel Management Group in November, 2002 from ORIX Capital Markets where he was responsible for all aspects of ORIX’s hospitality REO portfolio including monitoring receivership and foreclosure processes, overseeing third-party management operations, capital improvements, brand management, and dispositions. Prior to joining ORIX, David held development management positions with Remington Hotel Corporation in Dallas where he led their Acquisitions team, and Wyndham International where he co-managed the disposition of their non-proprietary branded portfolio and managed their individual asset and corporate financing efforts. David holds a Bachelor of Economics Degree from the University of Michigan and a Masters Degree from Cornell University’s School of Hotel Administration. Kelly Miyashita Vice President, Business Development (Japan) For the past 15 years, Kelly Miyashita has worked with numerous multinational financial institutions and large owners in all aspects of real estate transactions. From 1987 though 1990 Kelly served as Manager of Consulting Services and Tenant Representation at Cushman Realty Corporation, where he was responsible for providing market and financial analysis to an array corporate clients. Following his experience at Cushman, Kelly served five years at Mitsui Fudosan in Los Angeles, where he served as Asset / Leasing Manager. Kelly was directly involved with the oversight of 3.5 million square feet of commercial space in San Francisco, Los Angeles, and San Diego. Subsequent to his experience at Mitsui, Kelly spent three years at The Archon Group, where he managed a diverse portfolio of properties with an excess of $100 Million over three states. Kelly has also served as Senior Asset Manger of Goldman Sachs Realty and Managing Director of Sanno Capital – both in Tokyo, Japan. Kelly earned his Bachelor of Science Degree from California State Polytechnic University in Real Estate Finance & Law. Steve DiMaria Controller Mr. DiMaria has 14 years of experience in the accounting industry and was Assistant Controller for Boutique Hotel Group for 5 years prior to his promotion to Controller. Mr. DiMaria currently overseas all aspects of financial controls, accounting and budgeting for BHG and is responsible for managing the company’s banking relationships. Prior to working at BHG, Mr. DiMaria held senior financial positions with Gotham Hospitality Group, Tishman Hotel Corporation, and ITT. He graduated from Manhattan College with a Bachelor of Science Degree in Accounting. 7

8. Meri Rassnick Marketing Manager Meri Rassnick brings 10 years of marketing communications experience to her post as Communications Manager for Boutique Hotel Group. In this role, Rassnick is responsible for graphic design, all printed collateral, advertisement creation and direct mail for the company and individual properties. She came to Boutique Hotel Group from Choice Hotels International, where she was a Sales Manager at the Comfort Inn, Long Island, for five years. Prior, she was an Account Executive for Gail Becker Associates of Great Neck, New York, where she represented clients the likes of Cumberland Packaging Corporation. She has 10 years of experience in the New York Metro Area. Rassnick earned a Bachelor of Arts Degree in Public Relations from Long Island University, CW Post Campus. Rani Carr Director of Revenue and Yield Management Ms. Carr oversees yield management for the Boutique Hotel Group and ensures daily pricing and quality control through training and ongoing evaluations. She implements and oversees management of all discount internet channels and the GDS to maximize RevPAR. Ms. Carr’s experience encompasses all facets of the reservations area from Reservations Agent, Front Office Manager, to Reservations Director of a large Central Reservations Office. Ms. Carr came to Boutique Hotel Group from Holiday Inn and Hospitality Franchise System where she built her hospitality career. She graduated from The University of Tennessee. Lourdes Del Valle Vice President, Sales and Marketing Lourdes Del Valle has more than 15 years of experience in New York City sales and marketing, with particular focus on the Fortune 500 corporate transient market. Prior to joining Boutique Hotel Group, she was director of sales and marketing at the Empire Hotel in New York City, a Schrager hotel, and directed sales at the Soho Grand Hotel and the Tribecca Grand Hotel in New York. She also has held senior sales positions with the Sheraton Park Avenue, Wyndham Hotels & Resorts and the New York Helmsley Hotel. Del Valle also is fluent in Spanish. 8

9. Marideth Post Public Relations, Consultant Marideth Post brings 11 years of hotel and restaurant public relations experience to her role. As Corporate Director of Public Relations, Post is responsible for media relations, strategy, imaging, brand management and promotions for the company and individual properties. She comes to Boutique Hotel Group from Noble House Hotels and Resorts, Kirkland/Seattle, Wash., where she was Vice President of Public Relations, founding the first internal corporate public relations program. Prior, she was the Director of Media Relations for Kimpton Hotel & Restaurant Group, Inc., San Francisco, for eight years, specializing in hotel and restaurant openings, media relations, restaurant promotion, and celebrity suites. She started her hospitality career as the Public Relations Coordinator at the Sheraton Hotel at Fisherman’s Wharf, San Francisco. Post earned a Bachelor of Arts Degree in Journalism, option in Public Relations, from California State University, Chico. Edward Avol Systematic Technology/Systems Management, Consultant As Systems Manager for Boutique Hotel Group, Edward Avol is responsible for corporate and individual property website development, hardware and software issues, all computer-related functions, company e-mail server maintenance, and technical services for the company and for the individual properties. Avol began his hospitality career in operations, supervising building systems as an engineer and Chief Engineer. In addition, he was a freelance website designer for five years. Avol has 10 years of experience in the New York market. He attended Los Angeles City College and is a certified Microsoft Systems Engineer. Jim Coyle Director, Hotel Web Site Marketing and Quality Assurance, Consultant Jim has over 15 years of extensive experience in hospitality quality assurance and performance expertise. Jim has provided advice and oversight for quality assurance and audits to hotels and restaurants in the U.S. and Europe for Ian Schrager, Le Cirque, Daniel Boulud, as well as Boutique Hotel Group. Jim also has extensive food and beverage background experience to balance his overall hospitality expertise. Jim’s website marketing ability has proven extremely value and cost-effective for the hotel industry. Jim has a B.S. degree from the Cornell University School of Hotel Administration. 9

10. Our Approach • We attempt to leverage the existing appeal, equity and history of an asset whenever possible adding value through a • fresh approach and style. • Updating and enhancing the decor and physical plant when needed, developing the service culture, and increasing • efficiencies -- to make the hotel more appealing to new business sources, without a massive capital infusion. • Creating new awareness and appeal through innovative guest programs, activities, services and amenities and public relations. • Capturing new business and leisure guests, willing to pay higher rates, without alienating current customer base. • The end result is a revitalized, invigorated product that makes people feel gratified, comfortable and enriched by • a true boutique experience. 10

11. Room night crossover from contracted accounts; cross-selling with NYC travelers. Enhancement of revenue management practices, techniques, and technology. NYC based sales team casting a wider net will uncover additional opportunities and penetrate accounts more effectively. Our network of sales and marketing covers the globe. Economics of scale i.e. payroll, tradeshows, travel, advertising, public relations, customer events, entertaining, etc. Benefits of BHG Sales and Revenue Management Team to the Hotel 11

12. Current Positioning in the Marketplace Weak name recognition in the marketplace for such a landmark asset. Weak sales presence created by inexperienced sales team and improper deployment. No national sales representation in key domestic and international feeder cities. Lack of base corporate accounts due to inadequate rate management and difficult product causing hotel to predominantly rely on discount business channels to drive occupancy. Hotel’s market mix is predominantly leisure oriented and needs to drive corporate business. High repeat business, however customer base is narrow. Overall product in need of capital investment, to also include addition of necessary business amenities to properly compete in the corporate transient and group markets. Marketing Positioning Overview 12

13. Desired Positioning in the Marketplace Appealing product which will include a more effective bedding configuration, required FFE replacement, functional work stations, soft goods renovation, minibars, bathroom upgrade and BHG amenities. Solidify position among a wider population of business professional and more upscale leisure travelers who would not have considered hotel under past product conditions. Develop business mix that is representative of targeted corporate accounts and business segments such as banking, financial, medical, pharmaceutical, accounting, entertainment, advertising, legal and fashion. All public areas and food and beverage venues have received adequate makeover and repositioning to drive a revived interest from a new customer base. Track a new competitive set. Position as “the boutique hotel in the market offering a different experience for guests.” Stronger affiliations with the locally based corporations, universities, and city governments to make the Hotel the choice for the market. 13

14. Sales Advantages Years of “City” sales experience provided by BHG sales and marketing team. Utilize deep BHG National and International customer relationships for solicitation and negotiation of qualified corporate and travel agency accounts capturing annual room night commitments thru ongoing RFP process. Primary focus on the banking, financial, medical, pharmaceutical, entertainment, legal, advertising and fashion markets. Review all consortia and mega agency agreements for preferred status positioning as supported by key BHG relationships. The meeting and catering opportunities provided by The Hotel allows sales to target corporate meetings and secondary incentive events. Representation in all selected BHG tradeshows and customer events, nationally and internationally. Participation in BHG on-property and alliance cross-sell referral program. Reinforce The Hotel’s position with discount internet providers, such as HRN, Priceline, Expedia, Quikbook, etc. via strong sales relationships. BHG Sales Advantages 14

15. Marketing Advantages Inclusion in the BHG corporate website www.boutiquehg.com providing enhanced visual and informational content. Opportunities also include search engine positioning, database capturing, user analysis and on-line seamless reservation availability. Exposure to all BHG marketing partnerships, including jetBlue Airways alliance, providing access to 1 million person database and primary positioning on corporate website. Participation in all BHG advertising initiatives including brand and an Overnight Sensation leisure program. Exposure to GDS advertising, travel agency fax shots and email blast campaigns. Participation in popular BHG brand signature amenities program including welcome drink, complimentary cappuccino and espresso bar, Belgian bed linens and frette robes, upgraded bath products, in-room CD players and VCRs, etc. Advantages in database and advanced Reservation/PMS reporting features supported by newest marketing technology. In-house graphics and marketing support to manage brand and individual property creative consistencies and cost control. All advertising, direct mail, photo support, web site design, collateral development and printing is controlled thru this department. BHG Marketing Advantages 15

16. Revenue and Yield Management Advantages Corporate Director of Revenue and Yield Management fulfills the following functions: Management of and positioning within the GDS. Oversees daily yield management and ensures sales quality control and effective cross-sell practices through ongoing training and evaluations. Sets individual hotel rate strategies as required, with emphasis on management of various discount internet channels and GDS to maximize RevPAR during low and high demand selling periods. Implements and monitors all BHG standard operating procedures for newly acquired hotel acquisitions. Continually identifies new revenue analysis opportunities and available revenue tools and resources to make smart business decisions. Align the Hotel with various discount channels such as Hotel Reservations Network (HRN), Priceline, Expedia, Quikbook, Hotwire, etc. and utilize relationships to drive business as needed through strategic pricing and effective marketing positioning. BHG Revenue Management Advantages 16

17. Revenue Management Advantages continued… Utilization of the following reports to set individual hotel rate strategies against competitive set hotels and local market, in addition to identifying new business opportunities: Star Report: monthly report indicating business share percentage based on occupancy, ADR and RevPAR vs. competitive set. HotelRevMax: providing similar reporting information as Star, however reporting on daily, weekly, weekend and monthly basis allowing BHG hotels to react immediately to market changes and competitive strategies. Check-Rate.com: Another report feature provided by HotelRevMax which shops your competition’s daily rates available over the internet for a four week period from date of report. Phaser: Provided by TravelClick, this report is distributed weekly and provides a snapshot of your available daily rates against your competitive set thru the Sabre GDS system. Hotelligence: Also supplied by TravelClick, this monthly report indicates the top 30 travel agency and top 30 corporate accounts that are booking your hotel thru the GDS, while also telling you the same information for your collective competitive set. This report is ideal for for targeted sales solicitation to drive new business into our properties, while also seeing what share of the business we are getting or losing from our key accounts. In addition, this report acts very similar to a star report indicating your share of business thru the GDS, as well as your top global geographic markets. BHG Revenue Management Advantages 17

18. The Hotel Instill the appropriate updated image and reputation of The Hotel in the minds of the media and consumers to result in editorial coverage and business development. An established, true designated destination boutique landmark hotel… A hotel with a proud, rich and storied history that is evolving… Revitalized by a physical plant, services and amenities enhancement… Highlight new amenities; advantages for business travelers… Consistently invigorated by a consistent set of innovative and purposeful guest programs, promotions and activities tailored to business and leisure travelers… Distinctive, Consistent Theme and Style The Hotel: A blend of classic and contemporary themes and style. Re-Launch and On-going Promotional Vehicles Re-Launch and On-going Promotional Vehicles Establish fresh set of unique services, amenities and promotions Special Re-launch Event(s) Special Re-launch Media Event Develop Set of Unique Value-Added and Seasonal Packages Create Signature Event Establish Charity of Record Increase Local Involvement / Establish Mutually-Beneficial Partnerships Cultivate On-Property Creative Committee Public Relations Overview 18

19. Relations Materials Media kit Individual Media Releases Pitch Letters Photography / Images Boutique Hotel Group Media Kit / Materials Integration Media Relations Media Calls / Hotel Tours Media Entertainments Individual Media Visits Hotel Press Trip Target Media National and local travel trade media -- Travel Weekly, Travel Agent. Cleveland hospitality media -- Crain’s Business. National and local newspaper travel editors -- New York Times, Plain Dealer. National and local consumer travel magazines and outlets -- Travel Holiday, Conde Nast Traveler. Historic travel niche media -- HistoricTraveler.com National and local travel and lifestyle freelance journalists. Select broadcast and online media outlets -- cnn.com, concierge.com 19

20. Result The end result is a revitalized, invigorated product that makes leisure and business guests feel gratified, comfortable and enriched by a unique experience.   A program and an image that will endure and scale well beyond the re-launch period. Today and Everyday -- Boutique Hotel Group Public Relations Simply, Boutique Hotel Group has a straightforward, aggressive, creative, media-centric approach to the practice of public relations. It combines long-range planning, (to accommodate media lead time), originality, integrity, and flexibility with operational sensibility and consistent media interaction. 20

21. How we keep guests returning and referring is at the heart of the boutique hotel objective Redefine Customer Service as an Art and a Privilege Getting to “WOW” through Personalized and Attentive Service – Heart of Boutique Experience Core Values Not a mission of what to do, but a declaration of who we are …every guest feeling as if he/she were visiting the home of an old friend Turning Guests and Employees into Disciples and Raving Fans - BHG University To get to Zero Defect: training is important – but creating self sustaining culture is key. Leadership Training Eliminate the impossible Moments of Truth Each guest interaction is the wow opportunity Enneagram Promoting management communication/workability Miracle Makers Program Exceeding Expectations/Rewarding Excellence Mission Possible Guest history/retention/development Focus Groups Troubleshooting Employee Opinion Survey Guest/Manager/Employee development GM Hotline Guest/GM opportunity Guest Expert Manage productivity/guest trends Other Enhancements and Opportunities We have professionals create the following: Reservation Shoppers Survey Sales Shopper’s Surveys Reinventing The Art of Hospitality Culture. Service. Style. 21

22. Reservation Transition   Voice Replace existing number with BHG toll free number on all marketing materials and promotions (BHG toll free number currently generates 25% of the volume to our existing Portfolio and will be utilized to mitigate the loss of call volume through promotions, fax blasts, GDS marketing, and direct mail campaign to existing transient guests, travel agencies, and corporate accounts). Inventory, rates, and availability would be maintained on property and at BHG. Reservations will be faxed or emailed to the hotel, while the requirements for a two way interface are evaluated. BHG reservation agents will receive training, an on-property presentation, and an overnight stay at the Hotel. GDS The Hotel room inventory and rates will be loaded into the SynXis Reservation System. A GDS electronic marketing campaign will be implemented to promote The Hotel and direct travel agents to its new placement. Internet BHG would enhance the the Hotel’s website and interface it to BHG’s Internet booking engine that allows for real time bookings from the inventory maintained at the BHG CRO. Marketing Collateral Rack brochure and other property marketing materials and collateral would be modified to include the BHG toll free reservations number and enhanced to present a more attractive presentation. Logo/Signage BHG does not mandate BHG signage, flags, or plaques on hotels – we prefer to use hotel logo. Marketing and Reservation Transition 22

23. Boutique Hotel Group INTEGRITY SERVICE VALUE 23