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: 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. 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. Biographies of Key Executives 5

6. 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. 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. 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. 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. 7

8. 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. 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

9. 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

10. 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

11. 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

12. 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. Exposure to GDS advertising, travel agency fax shots and email blast campaigns. Participation in popular BHG brand signature amenities program including 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 through this department. BHG Marketing Advantages 15

13. 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

14. 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

15. 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

16. Temenos Villas – Anguilla Hotel 41 at Times Square – NYC Manhattan Seaport Suites – NYC Park Inn – Dallas The Shoreham – NYC 1998 – 2002 The Mansfield – NYC 1998 – 2002 The Roger Williams Hotel – NYC 1998 – 2002 The Franklin Hotel – NYC 1998 - 2002 Hotel Wales – NYC 1998 – 2002 The Peery Hotel – Salt Lake City 2002 Hotels and Resorts Managed by BHG

17. Boutique Hotel Group INTEGRITY SERVICE VALUE 23