Loading...
HomeMy WebLinkAboutC33180 - TOT Rmbrsmnt Agmt El Paseo Hotel LLC Contract No. C33180 CITY OF PALM DESERT STAFF REPORT REQUEST: CONSIDERATION OF A TRANSIENT OCCUPANCY TAX (TOT) REIMBURSEMENT AGREEMENT WITH EL PASEO HOTEL, LLC SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: December 12, 2013 CONTENTS: Transient Occupancy Tax (TOT) Reimbursement Agreement Keyser, Marston Associates - Construction Costs, Estimated Stabilized Net Income, Estimated City Revenues Proposed EI Paseo Hotel Site Plan & Elevations Marriott Letter of Intent and Autograph Hotel Collection Brochure RHI Corporate Overview Recommendation: By Minute Motion: 1. Approve a TOT Reimbursement Agreement as to form with EI Paseo Hotel, LLC. in the amount not to exceed $1,800,000 for the operation of a 154-room boutique hotel located at the northeast corner of Larkspur Lane and Shadow Mountain Drive and authorize the City Attorney to make non-substantive changes; and 2. Authorize the Mayor to execute said agreement Executive Summarv: The TOT Reimbursement Agreement with EI Paseo Hotel authorizes the reimbursement for 50% of the annual 9% Transient Occupancy Tax (TOT) collected once the EI Paseo Hotel commences operation. The incentive will be in the form of a quarterly reimbursement of TOT generated by the EI Paseo Hotel up to a maximum of $1,800,000. This agreement is only valid upon completion of the project and issuance of a Certificate of Occupancy of the EI Paseo Hotel. Backqround: The City has long been desirous of developing a hotel on the northeast corner of Larkspur Lane and Shadow Mountain Drive in order to further develop hotel rooms that will surround the valley's premier shopping destination, EI Paseo, and bring additional TOT and sales tax generation to the General Fund. In June of 2006, the former Palm G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\EI Paseo Hotel Agreement.doc Staff Report Contract No. C33180 EI Paseo Hotel Agreement Page 2 of 6 December 12, 2013 Desert Redevelopment Agency acquired the property through assignment by William DeLeeuw and Larkspur Hotel, LLC (former developer). The Agency then entered into an Exclusive Negotiation Agreement (ENA) with Larkspur Hotel, LLC in April of 2007 to develop a hotel on the site. The former developer received entitlements for the site but due to the recession, the former developer was unable to acquire financing for the project and after several extensions; all agreements were terminated with the former developer. With the elimination of the Redevelopment Agency and renewed interest in the site by hotel developers, a Request For Proposals (RFP) was circulated and by the deadline in April of 2012, one submittal was received from West River, Inc. (Robert Leach) and the development team known as EI Paseo Hotel, LLC (Developer). Partnership within the LLC is now being finalized and the current make up is as follows: • A&M Capital Real Estate — Manager 50% • EI Paseo Hospitality Fund, LP - Member 25% American Redevelopment Solutions, LLC - General Partner (EB-5 REGIONAL CENTER) • West River Inc. - Member 10% • Worlow & Associates Inc. — Member 10% • Stephen E. Kallaher— Member 5% With the passage of legislation known as ABX126 and AB1484, the Successor Agency to the Palm Desert Redevelopment Agency (SAPDRA or Successor Agency) has been unable to negotiate the final sale of the property until the approval of the Long Range Property Management Plan (LRPMP) is received from the Department of Finance (DOF). The Successor Agency submitted its LRPMP in June of 2013 and is currently under review and approval of the plan is anticipated by the end of 2013 or the beginning of 2014. Due to this unprecedented set of circumstances and the City's desire to continue to work on the hotel development, the City entered into an Exclusive Negotiating Agreement (ENA) with EI Paseo Hotel, LLC in March of 2013. The ENA gives the Developer an exclusive right to negotiate the purchase of the property with the Successor Agency once the LRPMP is approved by the DOF. The City further agreed to explore collaboration with the Developer to see if funding assistance is warranted to implement the project. Since approval of the ENA, the Developer has continued to create architectural designs for the hotel, and modify the components of the project while remaining within the envelope of the existing entitlements. The Developer has also continued negotiations with several national hotel flags and has worked on value engineering to reduce construction costs where possible. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\EI Paseo Hotel Agreement.doc Contract No. C33180 Staff Report EI Paseo Hotel Agreement Page 3 of 6 December 12, 2013 In order to evaluate the project's proforma, including construction costs, estimated revenues/expenses and project financing gap, Keyser Marston & Associates (KMA) was hired as an independent hotel consultant to analyze the project's financials and determine whether a financial gap exists for the project. Discussion: TOT Reimbursement Agreement: The project is presented for consideration of a TOT Reimbursement Agreement. The agreement proposes to reimburse 50% of the TOT until a total reimbursement of $1.8M is reached. The project construction costs totals $33M (see Estimated Construction Costs) with a budget as follows: • Direct Costs $23,450,660 Hotel & Garage Construction, FF&E, Restaurant FF&E Site work, Signage, Developer Fees • Design Costs $ 629,000 Architectural/Interior Design, Engineering & Landscape, Soils Report • Land Costs & Permit Fees $ 5,008,000 Land Purchase, City Fees, Water Fees, Sewer Connections, Supplemental Fees • Indirect Costs $ 4,712,340 Legal Fees, Supplies & Equipment, Marriott Application Fee & Systems, Pre-opening Costs, Operating Reserves, Loan Fees, Interest Total $33,800,000 Cost per Room (including parking garage) $ 219,481 In reviewing the project's proforma, KMA identifies a financing gap of $3,369,000 as indicated in the attached Estimated Stabilized Net Income report. The City's participation in the total amount of $1.8M in TOT reimbursement is a reasonable request to make the project viable. While awaiting approval by the DOF to sell the land, the Developer has continued securing financing partnerships including a portion of the funding to come from the United States Immigration & Citizenship Services EB-5 investment Program. The EB-5 program was established by Congress in 1990, to stimulate the U.S. economy. The program allows foreign nationals to earn a green card (permanent G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\EI Paseo Hotel Agreement.doc Contract No. C33180 Staff Report EI Paseo Hotel Agreement Page 4 of 6 December 12, 2013 resident visa) for themselves and their immediate family by investing a minimum of $500,000 in a qualifying business enterprise which wilt create 10 new U.S. jobs within a Targeted Employment Area (TEA). This program has recently become a more viable project funding mechanism in California since the elimination of Redevelopment. Riverside County is now known as a Targeted Employment Area (TEA). In all likelihood the program will eliminate Riverside County as a TEA by March of 2014. Securing all funding prior to that date will allow the project to move forward while still using the EB-5 program. While this project has not taken a traditional and historical path towards developing in Palm Desert, all parties continue to make their best effort to have all financing and approvals in place as the staff awaits approval from the Department of Finance to begin selling property owned by the Successor Agency. Moving forward, staff anticipates the following steps towards completion of the project: • Successor Agency receives approval of LRPMP — January 2014 • Developer secures final project financing (EB5) — January 2014 • Developer submits plans for ARC and Planning review— February 2014 • Purchase and Sale Agreement (Successor Agency/Oversight Board/DOF) — February/March 2014 • Plan Check — May 2014 • Construction begins summer of 2014, 18 months construction • EI Paseo Hotel to open not later than January 2016 The Developer, since the initial submittal in April of 2012, has continued to both refine the design and scope of the project; investigate and negotiate it's financing for construction; and explore the options for the hotel flag. The scope of the project, while remaining within the envelope of the requirements of the existing entitlements is as follows: • The Developer will construct a 154 room boutique hotel. All rooms are now dedicated full-time to the hotel rather than a portion for condominiums as was in the original entitlements. • In keeping with a four-star rating, the property will have amenities including a full- service restaurant, room service, valet parking, pool bar, catering, banquet facilities, spa and fitness center, plus other services such as high-speed internet and a business center. • The average height of the hotel is proposed at 37'6" which is 6 inches over the previous concept, but the pool will now be at ground level rather than on the roof. This should alleviate noise to the neighbors, especially in the evening. As a comparison, Saks Fifth Avenue is 44 feet tall. • The property will also have back-up generators and act as an emergency cooling center for residents should the need arise. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\EI Paseo Hotel Agreement.doc Contract No. C33180 Staff Report EI Paseo Hotel Agreement Page 5 of 6 December 12, 2013 • The size of the project has been reduced by approximately 11,000 square feet allowing for an increase in open space and a reduction in parking. Because of the Developer's desire to redesign the previously approved project, staff required the Developer to meet with the surrounding neighbors. In May of 2013, the Developer held a local meeting with approximately 20 residents in attendance. According to the Planning Department, no concerns were raised by the residents. The project will be submitted and reviewed by Architectural Review Committee. Hotel Operator: The Developer has a letter of intent with Marriott Corporation to flag the hotel in their newest concept the Marriott Autograph Collection. Marriott is aggressively growing this concept which allows for the hotel to operate independently while having the advantage of being incorporated into the Marriott's world-wide reservation system. Hotels under the Marriott Autograph Collection remain independent and therefore unique. This concept appeals to the intrepid traveler who desires escape from the "cookie-cutter" concepts but gives the assurance and dependability that comes with the Marriott brand. Based on the need for high-quality management and service levels, the Developer will work with the independent management company, Richfield Hospitality, Inc., one of the leading hotel management companies in the world. Richfield Hospitality, Inc. also has an ongoing relationship with the EB-5 immigration investors whose parent company, City Development Ltd. is a $7 billion hotel development entity listed on the Singapore stock exchange. Richfield Hospitality Inc. manages hotels throughout the United States including the St. Regis Deer Valley, Park City, Utah and the Casa Moderna Miami Hotel & Spa. Fiscal Imqact: Sale of property will be at fair market value, a new appraisal will be ordered once approval of the LRPMP by the DOF has been granted. Since the property is owned by the SAPDRA, all income received from the sale of the property with be distributed to the taxing entities. Palm Desert is a taxing entity but only a small portion of the sale wifl go to the General Fund. The value of the project to the City is in the collection of annual TOT revenue, sales tax from the restaurant and banquet operations, and property tax. The project is projected to stabilize in the first five years. Revenue projections for 20 years are as follows: • TOT $15,412,000 • Sales Tax $ 618,000 • Property Tax $ 191,900 G:\rda\Ruth Ann Moore\word datalSTAFF REPORTS\EI Paseo Hotel Agreement.doc Contract No. C33180 Staff Report EI Paseo Hotel Agreement Page6of6 December 12, 2013 According to the analysis, the Developer will recover the $1.8M reimbursement between years six and seven with the City receiving a net amount of over $14 million over the first 20 years of operations (see attached Estimated City Revenues). The Developer anticipates using the agreement to complete the financial package and will monetize the $1.8M to use as reserves during the five-year stabilization period once the hotel is in operation. The benefits to the City include both the $14M the project will bring into the General Fund over the ne� 20 years and the secondary benefit to increase sales for the stores and restaurants along EI Paseo by the guests, therefore staff recommends the above motion. Submitted by: CITYCOUNC�AC�ION �� APPROVED ✓ DENTED � RECEIVED OTHER th n Mo e MEETtN DA — - Economic Development Manager AYFS: NOES: Departme A[3SENT: AI3STAIN: Vi;RIF1ED BY: Origin�l on File with Ci C rk's Office Martin Alvarez irector of Economic Development Reviewed by: aul S. Gibson Director of Finance roval: hn Wohlmuth ity Manager G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\EI Paseo Hotel Agreement.doc CITY OF PALM DESERT/EL PASEO HOTEL TOT REIMBURSEMENT AGREEMENT THIS AGREEMENT ("Agreement") is entered into as of , 2013, by and between THE CITY OF PALM DESERT, a California municipal corporation, (the "City"), and El Paseo Hotel, LLC, California Limited Liability Company("El Paseo Hotel"). RECITALS A. El Paseo Hotel intends to purchase certain real property in the City of Palm Desert, as more fully described in Exhibit "A" ("Property"), on which El Paseo Hotel intends to develop and operate an approximately 154 room hotel project ("ProjecY'). El Paseo Hotel anticipates that the Project, once occupied, will generate transient occupancy taxes ("TOT") to the City in an amount estimated by El Paseo Hotel to exceed three million dollars ($3,000,000) during the first six years of the Project's operation, in addition to increased sales taxes generated by the anticipated increased visitation to the City. B. The City wishes to provide El Paseo Hotel an incentive to operate the Project in order that increased visitation will generate additional TOT and sales tax to the City, and to provide certain emergency services to city residents. The incentive will be in the form of a City reimbursement to El Paseo Hotel of fifty percent (50%) of the TOT generated by the Project up to a maximum of$1.8 million AGREEMENT NOW, THEREFORE, THE CITY AND EL PASEO HOTEL AGREE AS FOLLOWS: Section 1. Reimbursement Commitment. In consideration for El Paseo Hotel's operating the Project on the Property and the other conditions and covenants provided for herein, if and when the El Paseo Hotel is built and operated on the Property, the City shall reimburse to El Paseo Hotel fifty percent (50%) of City's current (9%) TOT, as defined in Section 3.28.030 of the Palm Desert Municipal Code as of the date of this Agreement, collected from the Project in an amount not to exceed $1.8 million ("Reimbursement TOT"). Payment of Reimbursement TOT by City to El Paseo Hotel shall commence for the first full quarter during which commercial operation of the Project commenced and shall continue until $1.8 million has been reimbursed by the City ("Reimbursement Termination Date"). TOT collected prior to the Reimbursement Termination Date is subject to reimbursement pursuant to this Agreement; TOT collected after the Reimbursement Date is not. El Paseo Hotel shall at all times remit to City full payment of TOT as required by the City's Municipal Code. Distributions of Reimbursement TOT by City to El 72500.00552\83682413 12l2/13 Paseo Hotel shall be made within sixty(60) days of the receipt by the City of the full amount of TOT from the Property for each quarter. Section 2. Conditions to Reimbursement. As a condition precedent to payment of any Reimbursement TOT, El Paseo Hotel shall: A. Commence commercial operation of the Project by January 31, 2016. If El Paseo Hotel fails to commence commercial operation prior to that date, then the City, in its sole discretion, may terminate this Agreement by delivering written notice of such termination to El Paseo Hotel. Following such termination, neither party shall have any further rights, duties or obligations hereunder, and the City shall have no obligation to pay Reimbursement TOT, provided however that if this Agreement is not so terminated and El Paseo Hotel subsequently commences operation, the terms of this Agreement shall apply and the City's right to terminate shall be void; and B. Be at all times operated as a "Four-Star Hotel" as required by Development Agreement 07-02 between the City of Palm Desert and Larkspur Associates, LLC, recorded in the Official Records of the County of Riverside, California as Document#2008-0419294. C. Allow the Project to be used as a "cooling station" for the City in the case of a power outage. Section 3. No Obli�ation to Build or Operate Both parties acknowledge that the Project is currently in the proposal stages, and El Paseo Hotel sha11 have no liability to City for failure to build or operate a hotel as intended by the parties herein. Section 4. Indemnification. El Paseo Hotel shall defend, assume all responsibility for and hold the City, its council members, officers and employees, harmless from all demands, claims, actions and damages, of whatever type or nature, including all costs of defense and attorneys' fees, to any person or property arising out of or caused by any of EI Paseo Hotel's activities under this Agreement, whether such activities or performance thereof be by El Paseo Hotel or anyone directly or indirectly employed or contracted with by El Paseo Hotel and whether such damage shall accrue or be discovered before or after commencement of operation of the Project. Section 5. Default. A. Defaults. Any one or all of the following events shall constitute a default by El Paseo Hotel: l. Any misleading statement, misrepresentation or warranty of El Paseo Hotel herein or in any other writing at any time furnished by El Paseo 2 72500.00552�8368241.3 12/2/13 Hotel to City that materially harms the City or materially diminishes the Benefit of the Agreement to the City; 2. Nonperformance when due of any of the obligations described herein, or failure to perform any obligation or covenant contained herein; 3. The filing by or against El Paseo Hotel of a petition for relief under the Bankruptcy Reform Act of 1978 or any bankruptcy or debtor relief law; 4. A general assignment by El Paseo Hotel for the benefit of creditors or the appointment of any receiver or trustee of all or any portion of the assets of El Paseo Hotel; 5. The transfer or assignment of this Agreement without approval by the City; B. Remedies. Upon the occurrence of a default, the City, at its option, may declare this Agreement to be in default and, in such event, the City shall have all of the rights and remedies prescribed at law or in equity. Following an event of default, the City shall have no further obligation to disburse all or any portion of Reimbursement TOT. C. No Liabilitv of Citv Member. No city council member, official or employee of the City shall be personally liable to El Paseo Hotel, or any successor in interest, in the event of any default or breach by City under this Agreement or for any amount which may become due to El Paseo Hotel or any successor or on any obligations under the terms of this Agreement. Section 6. Com�liance With Governmental ReQulations. El Paseo Hotel shall, at its sole cost and expense, comply with all applicable municipal, county, state and federal laws, rules, regulations and ordinances now in force, or which may hereafter be in force, pertaining to its activities contemplated under this Agreement, including, but not limited to, Development Agreement 07-02; issuance of building and use permits and compliance with all federal and state labor laws (collectively, "Laws"). Supplementing the indemnity set forth in Section 3 above, El Paseo Hotel shall defend, indemnify and hold the City, its elected officials, officers, members, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure of EI Paseo Hotel to comply with such Laws relating to this Agreement Specifically, by its execution of this Agreement, El Paseo Hotel certifies that it is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as 3 72500.00552\83682413 12/2/13 California Code of Regulations, Title 8, Section 16000 et seq. ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If the project being performed is an applicable"public works" or"maintenance"project, as defined by the Prevailing Wage Laws, El Paseo Hotel agrees to fully comply with such Prevailing Wage Laws. If required, El Paseo Hotel shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the work on the project available to interested parties upon request, and shall post copies at the El Paseo Hotel's principal place of business and the project site. Section 7 Miscellaneous Provisions. A. Transfer or Assignment. El Paseo Hotel shall not transfer or assign this Agreement without prior written approval by the City. Approval of any such transfer or assignment shall he at the sole discretion of the City, provided that, as the parties acknowledge that El Paseo Hotel will likely monetize this Agreement as part of its project financing City shall not unreasonably withhold, condition or delay its consent to a pledge or assignment of this Agreement (or rights under this Agreement) as part of the capital financing for the project. Such financing approval may be granted by the City Manager without further action of the City Council. B. Interest of Members of Citv. No member of the City Council of City and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the carrying out of the City's work shall have any personal interest, direct or indirect, in this Agreement. C. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, to the jurisdiction of which the parties hereto submit. D. Tune of the Essence. Time is of the essence of each and every provision of this agreement. E. Notices. Notices or other communications given under this Agreement shall be in writing and shall be served personally or transmitted by first class mail, postage prepaid. Notices shall be deemed received either at the time of actual receipt or, if mailed in accordance herewith, on the third (3rd) business day after mailing, whichever occurs first. Notices shall be directed to the parties at the following addresses or at such other addresses as the parties may indicate by notice: 4 72500.00552\8368241.3 12/2/13 City: The City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: City Manager El Paseo Hotel: El Paseo Hotel, LLC 74048 Alpine Lane Palm Desert, CA 92211 Attention: David Worlow F. Headin�s. The titles and headings of the various sections of this Agreement are intended solely for reference and are not intended to explain, modify or place any interpretation upon any provision of this Agreement. G. Severabilitv. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such or the remaining provisions of this Agreement. H. Waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executing in writing by the party making the waiver. I. Number and Gender. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall each include the others whenever the context so indicates or requires. J. Further Assurances. The parties sha11 execute, acknowledge, file or record such other instruments and statements and sha11 take such additional action as may be necessary to carry out the purpose and intent of this Agreement. 5 72500.00552\8368241.3 12/2/13 K. Bindin E..�. This Agreement shall be binding upon and inure to the benefit of the parties' respective heirs, legal representatives, successors and assigns. L. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous agreements, representations, warranties and understandings of the parties concerning the subject matter contained herein, written or oral. No change, modification, addendum or amendment to any provision of this Agreement shall be valid unless executed in writing by each party hereto. M. Attornevs' Fees. In the event of any litigation arising out of this Agreement, the prevailing party in such action, or the nondismissing party where the dismissal occurs other than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys' fees and costs paid or incurred in good faith. The"prevailing party," for purposes of this Agreement, shall be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal or judgment. N. Amendment. This Agreement may be amended only by a written instrument signed by both City and the El Paseo Hotel. 6 72500.00552\83 682413 12/2/13 IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the day and year first above written. CITY: , 2013 THE CITY OF PALM DESERT, a California municipal corporation By: Title: Mayor Approved as to form: City Attorney EL PASEO HOTEL: , 2013 El Paseo Hotel LLC By: Its: 7 72500.00552\8368241.3 12/2/13 ESTIMATED CONSTRUCTION COSTS 454 ROOwI AUTOGRAPH COLLECTION HOTEL KMA SCENARIO PALM DESERT,CALiFORNIA !, Lantl A�a�uts#No�i 154 Rooms $?3�380 lRoor'n �3�60Q,QOQ II. Direct Costs Signage 154 Rooms $260 /Room $43,000 Site Costs 154 Rooms $6,370 /Room 981,000 Parking 175 Spaces $16,100 /Space 2,818,000 FF&E 154 Rooms $20,180 /Room 3,107,000 Building Shell 154 Rooms $98,520 /Room 15,172,000 Direct Construction Costs $22,121,000 Prevailing Wages 0.0% Direct Costs $0 Construction OH&Contingency 5.0% Direct Costs $1,106,000 Totai Direct Costs $23,227,000 iil. Indirect Costs Architecture,Eng.&Consulting 5.0% Direct Cost $1,161,000 Permits&Fees/Impact Fees 154 Rooms $7,970 /Room 1,228,000 Franchise Application $250,000 Allowance 250,OQ0 Taxes, Ins, Legal&Acctg 1.5% Direct Costs 348,000 Pre Opening/Working Capital 154 Rooms $9,740 /Room 7,500,000 Development Management 3.0% Direct Costs 697,000 Contingency Allowance 5.0% Indirect Gosts 259,000 Total Indirect Costs $5,443,000 IV. Financins�Costs Construction Interest $33,980,000 Costs 6.00°/a Interest Rate 1,274,000 Loan Fees 2.00% Fees 438,000 Total Financing Costs $1,710,000 V. Total Construction Costs $33,980,000 Per Room $221,000 Prepared By:Keyser Marston Assoaates;Inc. Filename:Mariott Pro Forma;KMA;11/6/2013;KEE ESTINATED PROJECT SURPLUS!FEASIBILITY GAP 154 ROOM AUtOCRAPH COI.LECTION HOTEL KMA SCENARIO PALM DESERT,CALIFORNIA ...,».,.».»................,Rarurn on Total invqstm+�t..�,.e.�..�.,..........,...,. I, Hotel NOI $2,908,000 Ii. Total Warranted Inveshnent 9.50% Return on Costs Total Warranted Investment $30,611,00� (Less)Development Cosis (33,980,000) III. Estimated Pro'ect Su lus/Feasibili Ga $3,369,000 ...___.._.�._......Imputed Return----------------------- I. Proiect NOI $2,908,000 II. Develoument Costs $33,980,000 III. Im uted Return 6•6% Prepared By:Keyser Marston Associates;Inc. Filename:Mariott Pro Forma;KMA;17/6/2013;KEE 2 -i o Z -� o .+ a � � < w � < d m � D A � (� � C�g � c � � D w w m = � 0 0 '< � e e O t0 dD V � CT A W N -� O c0 OD V O> tT ? W N � � � � C� � (p D O � � -� O O O O (O Cfl f0 0� W Oo Oo V �l �i ^d V O) fl� C7� 1�pp� [ 4/ tD �W O +1 A j c0 � A � �A N O Ui OD N < O T � N �O �l O) O) j 00 A �0 N Oo OD V CT C17 � N W � � �rna rno a� w w� o�o cn � 3 $ Sz 0 0 0 0 0 0 0 0 o g o0 00 'oo 0 0 0 o c o � i n C 0 0 0 0 0 0 0 0 o g o 0 0 0 0 o rn 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o y � y � n ifl i> ��(� o co co co w ao 0(�o m aa -.i .a W� j rn�p rn rn()II rn c�np cn � "� � � N A CT �D O�W�,tvD A .(NO N � c�0 O� (7�;A A ?_(Wlt O _ONo O O -1 O O O O O O O O O O O O O G7 G p O O O O O p O G � S O O O O O O O O O O O O O O O O O O O O O Q O O � Q O O O O O O O O O O O O O O O O O O O O O O O O � � < r � Ej 5� � � y � 7 C W�I W V W W W N Np� N C � � V � V � V V OD _�Cl�i ? .UWI y � p Q O O O O fA O O O O O O� � O O O O O O O O O O O O O O O O O O O O O O O O �,q � U1 W N A � 2 (� C1 Oo m O f0 �p c0 f0 O� Oo Oo Oo �.I V V V Qi W W � N N N � ^�* Oo W (T �I <O 01 W O V (� N O �D UI W -+ �p W N �O p� W O � <O � V [O t0 O -� W � t0 A f0 (JI f0 � N A V V V CT A C71 �'/ _. C O O O O O O O O O 4 O O Op O O O O O O O Op Op O � O O O O O O O O O O O O O O O O O O O O O O O O �q _ P W C.) W W t..) W t 1 W fJ Wp N N N N N N(� N h1 � y „�„ N +4V7 V (�/t W O V V O � t7� � O � � � O � � O�D � T � 0 0 0 0 0 0 0 0 0 o a � o Qu g o o ci o o � � 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O o o y O�p1 V1 N fA Hi lfl 6H �p W �f V � � T ? ? lJ fA W (d W W W W W GI N N N N N N N � OD OD (O O -� O (U V 01 t)t A W N -p� O Op (pO 00 V 01� A -+ f0 y..) O O O O O O O O O O O O O O O O O O O O O O O O x 4 O O 0 O O O O O d O O O O O O O O O O O O O O .f�0 .G�o v_0�1 (�T A W W N �O _fW0 .f�0 OWD J T W N A W � ND CT G1 (T 01 V Oo �D Ofp N A O) OD O IJ � V Op� W(� �p� <pOp O1 � W N O V N (T W A CAD � (O W N V V � O W O O � � 0 o b b o io 0 0 0 0 0 0 o c o 0 0 o c o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m �q � cA0 OAo V OAi (�/�� � j� A �,O�i Oo O W � 0� � A V O x � x (71 U1 � 01 V O O O O O O O O O O O O O O O O C O O O .�O O O O O O O O O O O O O O S O O O O p O < � C � � � � O � � O�i � -� -+ O O O O O t0 tD CD <O (O Oo OD OD 0� OD Oo V � 'Z� 00 0o aoa000ssg � sss � "s� � � ss ` oa o0 000aoo 0 i � �, „ � � � �� „ 1p i0 �a C O o O o t0 tp cp po po po OD V V V V W W W N N � < Z Ch ,P 00 N � A OD Cl� N lD V A � tD V CJ1 W V � � N t0 � C� � w Oo (T .p Vi -+ O N A O6 N W p7 O,(�D t(h,� W O�p N p� ,p NV la �p O O O O � O O O O O O O O O O b O O O O O O O O� � O O O O O O O O O O O O O O O O O O O O O O O O '44arriutt Ix�ternakiana3,Ic�c� �Stli f�u�e�irrit,SEa�ik :�Dtl ���� �������� - I i{itcl I�rt�c]uptn�^ctE ��_ '�u��pnrt h� t }t ('..l �+.f,f�I_t C`hri�t<>��hrr G.1«�5�� St�rri��r��icr C'rt•sidcnt �>�it_3?'I S.`i�(� �1-1-;;�1-t..ql��,1�s4 October 2, 2013 Robert A. Leach President West River Inc. 3941 Park Drive Suite 20-308 El Dorado Hills,CA 95762 RE: AUTHOGRAPH COLLECTION FRANCHISE WITH THIRD PARTY MANAGEMENT FOR THE EL PASEO HOTEL Dear Mr. Leach, We are prepared to consider an Autograph Collection franchise application for the proposed 154-room El Paseo Hotel to be located in Palm Desert,California and to be operated by Richfield Hospitality. I enjoyed touring the market with you and think that the site within the El Paseo Shopping District would be a great location for the Autograph Collection. The Autograph Collection offers the ideal combination of freedom and function,providing all the tangible benefits that a partnership with MarriottOO can deliver while giving hotels unrivaled flexibility and the ability to preserve the distinctive personalities that make thern unique. As members of the Autograph Collection,independent hotels are able to take advantage of Marriott's powerful distribution and marketing channels to deliver bookings and revenue, as well as many other programs and services that help reduce operating costs. This allows owners the ability to leverage all the benefits of a global brand unhindered by specific design standards. Thanks again for your interest in the Autograph Collection. Sincerely, 1//� f�u., (, Christopher G. Rose ESTIMATED STABIL.IZED NET lNGOME� 15�ROOM AUTOGRAPH COLLECTION HOTEL KMA SCENARIO PALM DESERT,CALIFORNIA 1. � Rooms 154 Roams $169 P.O.R. $6,460,000 Food&Beverage 23.6% Gross Sales $61 P.O.R. 2,334,000 Resort Fee 8.1% Gross Sales $21 P.O.R. 805,000 Spa 2.4% Gross Sales $6 P.O.R. 240,000 Parking 0.0% Gross Sales $0 P.O.R. 0 Other 0.6% Gross Sa�es $2 P.O.R. 61,000 Gross Hotel Revenues $9,900,000 Ii. Qistributed Exnenses Rooms 25.0% of Dept.Sales $42 P.O.R. 1,615,000 Food&Beverage 75.0% of Dept.Sales $46 P.O.R. 1,751,000 Resort Fee 0.0% of Dept.Sales $0 P.O.R. 0 gp� 70.0% of Dept.Sales $4 P.O.R. 168,000 Parking 0.0% of Dept.Sales $0 P.O.R. 0 Other 0.0% of Dept.Sales $0 P.�.R. 0 (Less)Total Distributed Expenses ($3,534,000) ill. Undistributed Expenses General&Administration 7.0% Gross Revenues $18 P.O.R. $693,000 Franchise Fees 3.0% Gross Revenues $8 P.O.R. 297,000 Marketing 5.0% Gross Revenues $13 P.O.R. 495,000 Property Operation&Maintenance 5.0% Gross Revenues $13 P.O.R. 495,000 Utility Costs 3.0°/a Gross Revenues $8 P.U.R. 297,000 Equipment Rental 0.0% Gross Revenues $0 P.O.R. 0 (Less)Total Undistributed Expenses ($2,277,000) IV. ManaaementFees 3.0% Gross Revenues $8 P.O.R. ($297,000) V. Fixed Expenses Taxes 1.0% Project Costs $9 P.O.R. $339,000 Insurance 1.5% Gross Revenues $4 P.O,R. 149,000 FF&E Reserves 4.0% Gross Revenues $10 P.O.R. 396,000 (Less)Total Fixed Expenses ($884,000) VI. Net O eratin Income NOf 29.4% Gross Revenues $2,908,000 ' Assumes stabilization in year 4 of operation and 68%occupancy. Prepared By:Keyser Marston Associates;inc. Filename:Mariott Pro Forma;KMA;11/6l2013;KEE Tab�� c�f Cont�nts RichfieldHospitality.....................................................................................................................................................................................3 Overall Management Expertise.........................................................................................................3 Richfield Ownership Structure..........................................................................................................5 TheRichfield Philosophy...................................................................................................................6 CorePurpose....................................................................................................................................6 CoreValues......................................................................................................................................6 PropertiesCurrently Under Management.........................................................................................8 Miilennium&Sceptre Hospitality Properties....................................................................................9 RHICase Studies of Comparible Assets...............................................................................................................................................10 Positionrng&Organizational Structure............................................................................................................................................15 Philosophy.......................................................................................................................................15 TeamAttributes...............................................................................................................................15 TeamPersonality.............................................................................................................................16 RichfieldHospitality Leadership Profiles..........................................................................................16 SceptreHospitality Resources................................................................................................................................................................19 Reservations Technology and Connectivity......................................................................................19 Innovative CRS Technology..............................................................................................................21 ItineRary-Booking Capability...........................................................................................................21 internet Marketing Services.............................................................................................................21 RevenueManagement Services.......................................................................................................22 VoiceServices..................................................................................................................................22 Hoteii4Business Inteiligence...........................................................................................................22 SpaManagement............................................................................................................................23 VisualCommunications...................................................................................................................23 �9arriotf Internationa(.lnc. ].t(iI [h�e��`�triit �u�t� ���1D ���� �������� - ___. F(ntcl I�e�rclt���trn°nl —,��cw pt+rt f�i i lt t-:1, ��^r�t;1! <`kv'i�th'phi�r C,.12t�.�c �rninr l�icc 1'rrsidrnt �t}u__}�j_g;�i) �7�}-`;-td-`>7-16 P..� October 2,2013 Robert A. Leach President West River Inc. 3941 Park Drive Suite 20-308 El Dorado Hi1Ls,CA 95762 RE: AUTHOGRAPH COLLECTION FRANCHISE WITH THIRD PARTY MANAGEMENT FOR THE EL PASEO HOTEL Dear Mr. Leach, We are prepared to consider an Autograph Collection franchise application for the proposed 154-room El Paseo Hotel to be located in Palm Desert,California and to be operated by Richfield Hospitality. I enjoyed touring the market with you and think that the site within the El Paseo Shopping District would be a great location for the Autograph Collection. The Autograph Collection offers the ideal combination of freedom and function,providing all the tangible benefits that a partnership with MarriottOO can deliver while giving hotels unrivaled flexibility and the ability to preserve the distinctive personalities that make them unique. As members of the Autograph Collection, independent hotels are able to take advantage of Marriott's powerful distribution and marketing channels to deliver bookings and revenue, as well as many other programs and services that help reduce operating costs. This allows owners the ability to leverage all the benefits of a global brand unhindered by specific design standards. Thanks again for your interest in the Autograph Collection. Sincerely, �/"�'v " f'ru, Christopher G. Rose i � � � • • . � fF , , � � . ti. dr ��,� d�Y § ��F'�� i r � , ��.. � # � � �� � k���������, Y ,., � �;`x E'u' C if, ,�3 `" p' ��u �„� ,,� � ,�r�aar�� �"�� �'ti i>y,�r� ���,,� �� n � �o't�. � �Rs$r ,� s "Y�4�- ..'^.""^ i ; �° � 1 1 ,� f k"'"""!t .4'�^'� y Y��-.1 � .��� � , ,� � `.r.�• ., ! P� V � � �j'ry' V '. . : � � K � ���*«»� �r�n _ � .,�'. r . .. ti � �� °!,�d' II � � �� i� �aFi � ,. .-.� �� �� s ��.� �r� ���� x! � � ,v;m^�''-`, F � ��^w, �' - _..� . — ��._._.. � � I . � � a-�` �� ��..��",��C � r t .„ �� � � ., , � ,. � � ,.�.F e .. . . ��;; �* � , ,w . p�k.�Sa. �, � : M.'.� 'Mv,.� '. � . ' _. .... . �M u . .�t ^E; S.: .p . ' ,�g'� ... � f}5`� � j;' ..�''"'"�' ��� ����.� �^ �. a�r3 / ;. .�",✓ :•�t �, -r�AY � . R 5 �� � � 1 :�' �' �� dtF' ^ '` .. . �� '� ��T � �.,� �r f` 'S: ��• ��. �} t . ' .. � rf ���i MF���IS�I� �� .,,,:. , '� �'`,�,,;,�` ��. �, a,�.,�, ;� '�'�, ` ,�_ r : , .. . � . ,': . w � � " � „ ' � .� ,,.(1 , � R g� , ��?r.� � /� ,.� , ��:�`' � ,., _.__ ��.. ------ ... s �� � � , � ^� �n ,� R�O��` �J ��f�� �� . :,.�. Pr T" N .��,� '� 4, ��.9 �"'�w ^,.r� �� a�v .���'���'���e�'�M�.�i�'P�t��!"�'�°�d��A,e�'V�n�t4!Y��,�+�,��kf,�����5�'�'��t�.l��.�'����'�°,�§r�'M�'�d�Y��,kd<��qtir�t�M1�^����'�'�r���N"'�'f�.,e�r+,-.: 1 Y ,; � .' . „ ,., , i, � 4vlie�r".49��`4a s 1.,t'��` ���i��ll�i��'�V:;��,���^d„�`•a.��e�'4"�� ' ���f�x,i,�e;ti-kdv�d'�Er, i ar�. �°u ,4, x . . � .�. . � . ���""` '' . .. ,._....� , a„ . . . . . . , . .. . BEGiN ► _ - ��__ a � , �. ,,,tE,� � ;y;. _ . .'�`�.". r�•�z'�.�. � .._. . . � :.......:..... n�'L Welcome ko the worid of the ���``'- Autagraph Callecticanm,a world �� i�/� � of bold impressions,unexppcted � encounters and exceptiona!rewards. �`�:' ` � . . . . � . 4 �i .. . .� ;. ,..;._ BOLD. UNIQUE. � � Y, ��, � x �� .:_ : . g ' ndent- _ ' � � � . � ,_ , � , ;m nded traveler seek c��estap�e � �`� , , . _ ._., $ ;' �rom the everyday�thi�collettit�r� - �--�'. '.. � of one-of-a-kind hotels and cesorts �. _ u ,; . `spans the futl spernum of the � 'i � ' modem travel ezperience.Ffom ; g' ,p o modernist icons ,_ ' , ' ��,.�,::.. dded alaces.t. ,... .::. ,_� . ,.. . ,: . .�� ��'� 'i� j .}�'' �—-�"�' t� - � � � Y � � _k: «,:�,-� �` 3. �� �� �i : �� _ � � �. � � • , : �i; �, . . . . .,,.. � C.' � + 1 � � .A , ,, ' �- . ;• f 0 , ,y , ,. , , ,. �, :< , . .. . , .,..... J_ � �,,„�- ..-�„ - , ,� w.: � ,. � t. , ; .� r f � re� �4��`� � L 'r. � ' � UNRIUALED BENEFIT�� �- . 6 �=4 „�� " _ , j � � � � , � . � ..,,..._ : �.. ,�- �W -� f � .. � For owners and developers alike,the � �'�""� "`� � � .��.."� Autogreph Collection offers the ideai ` � '�' ; ,•> � � '- ,' 4 ': °�,�_ �'� �'""'� ; combination of freedom and function. � � � , �#�,, �� �� t� _ -1 � � � providing all the tangible benefits i � . * ��� ..�o,�<,__. that a partnership with Marriott`�can � �� + � � � � ��'' � " I' �;�� ��. - deliver while giving hotels unrivaled "``' `, i � + ' •�us��. flexibility and the ability to preserve the � R � ' �' ,� „ �� �.�,.` distinctive personalities that make them xy�-e � ��� � . : ` _ � unique.As members of the Autograph s:a'�c� . � `w"'�" . '. Collection,independent hotels are abfe ' ,armlilllil� ' w � � � + a " � � to take advantage of Marriott's powerful ,, :'� ��"""'' � � ,.,.,. ��� ���k�i�j�� �3��► :� ��� � distribution and marketing channels to ��� ' ,,- � .>�� . ,,,,,�, ,.. a:. _. deliver bookings and revenue,as well as , - ma�y other programs and services that "3'�- � r ' �`° ' "' "* .•` help reduce operating costs,leveraging ,�,�" � all the benefits oF a global brand "`� ij� , u�hindered by complex requirements ; ,� � � y�. � V � � _..�..--,.,,�.:� ,,; 7 � � ;� ��, �+ �,�` m � ���� �.; ';�n � � L. � . "' _ "�uip`° � � �' ►r��• ,�► ��, .�' "�'�,. ���►� �''�c�_,�-::�Ilr►"r..�'�.:�.i�. �`: ��.:'.a�i.i:i 1 HOME ► i � i � z �: _ : , � �„ ��::` •� � rc. � .,,x,., • � L-._ a >.,. w��> � �c, x���,� � The ideal combination of benefits t ��, and flexibility has been a powerfu) � �•�. - _ grpwth Qn�rne for��,�,Auta r,� h - .. _ ' �� „� '��r^ryu� �y �:2 �'� z�� � Yi���„ �f�� r - {��i��w+`�1�✓�y y,�`�, 3, r v.. +� .i• ,.�. i,,., t� �.. . , � e , .: . . ,�_ .,� . . • :. . F-. r ��;.: . ; ., �. . . � � ��'°.:�� .. ._- ,_ :.; � �. � ._. . .. '-c. ' _ � . .,,.:.�� .. . ` 1.� r' � .�eJ I Y - ' 1 � �� �:a: <:� .�. ����. � j �� 4 1_ ,� .- :x e�'' 1 ;# � ,� � �� �� � 'O�+ x ` "�54 tl—rc�q '' 1ti4"���� �nr,,r a_ • , '. �. ��1��' � �� z� � � 4 ��F#�:}„���"-. y �.;+,1:„,�, ;�' '/ � :� ,s � r.: 's� ' i + r./. •� �: . `�A . ..1'� —...' i- ��;; �,�'�t ' � � � L, ,�� �-�I� ��:�"'__ �-= i1t i� ,.� ,t �IMI��: _ ,. , ...'� � �,i• ,.,... r _ ,; ��� W �,: � `y,. _: . ,. � .. ,�_ . �->b�,<. .r. , >�;' " � , ��':� � x- a` ���3 _ . _ ' �, � , --� �.._ .. : �`"°. : �"� �i -�',:: � � - _ _ - � t ` 1 C�'r '�Mi+„ � � .: �7C+7� ,z� i:&I,� q k�� ,y� u�� . <`f^y`k � VN� I 1�6' ..'�,'�i},yv � .� _ - :�� 1�,N�G- . � %t 'f,� Individuality is the hallmark of the Autograph Collection experience ,; and what defines both its hotels and � '�' its guests.The Autograph Co�lection � �� �� �. appeals to intrepid travelers seeking an escape from cookie-cutter branded hotel , .- experiences,who want to enrich their y �• �. . stay with a departure from the ordinary, F and find comfort knowing that escape - �" � . ,.' - from the everyday has been carefuily ,�. � , � ` " curated by a name they trust implicitly. "` " ; ; ; � Many are affluent Marriott loyalists who - ��� are eager to try something new and � different and appreciate the op�,_�1� �rr ; ° ....) ' to expand their horizons w�t 7e ��_� _ . ����� �� :�' �� �`�..n�i;-�if .-��E�.•�r,�, �,;�rrfi-�l�n, � � � � ; .s., � ' .�' .�i �. .;,. �, , ,,,, : .�..,,,,....,� I'�. x ,tw("' � �1'n4;.."� . .. �� '.. .. ...,. .._...,....sa-. INDIuiDUAL EXPE�� � w..._ �� � � , � . � . �: � ,:� : 1 HOME � Boscolo Venezia.Venice.Italy � � „��� r'� b y . � �. � 5�� p, . I � � �^ �.�� . st .4>`� _ s { S i�>�F c �,� �� � , a r .r.�.:C `.:. . - � +.n+�..�l� " . 4 -G �wr. �� ' h J 9 � .: , f� e ' . '. ' '.��=i��9��-._ .�j�,(+K.... -�� � �. f ,�.n � � �� �� ��� _r,t, „ ,. w,tAaw��ai � � � `� -�'`� �,�t:�� . .� � k :F � � � _ __. . �''��z'Y'��,"„ �R. *� .� H'i�"g�'is.;�st '� ' ,e..� � '� �.�,y.� �` , •� �x ! -�• :. � . , . . . _, ;f"'.. - _._. �.. A.� r� .�• � , .. : * .� . ' 1 y.a �a � 's a . . '"' .er�rta! • , , - � �� » f STM J . ��M�� � ' Y Y�;`:� .. �� •' � .�.c � ! ' . - -. . . � ��1 � 11 � ��Y`: � �'�� .,.. sm�.g �. ..,.;,, - � .:-.:-'�.. .-. , :_. ::,.....-, � . � � '. . .�.. . *.d 41. � i � • � . . , , �� �r > � : T. 'S� � � � � ry' � '� �'.� 5 :.�� � �: :. . ' 1 , • ' .... . st' � ,1 , ' � , � , s "' ''e � � '�;���`, `���i � � ��,_ ��i �� 1 ' � ' 1 ' � � � ; _ _ , �-�''.�, � � ��_ _ �� . � "'-, . � . � . � . � . s �e � , . , ::.. .s ,. ----� + � ,.. , . : - ... .. .. . . . sw��-�. ._ : � �9 ..� � �... , ;:�' � � '- . . . � � .. . . �a �-,. . � . . , ; � ._ r � � . � , � - . � .. , _ ;� � ..: �� '.J u� . � �-,... � . F' .� - �t� . ,<B.r.F, � � , a� -: � - ,.. '�. _ � � N a , � a `, � � ',� ; i:� � � � _3 � -� . . � "'- _ . , , � S -„".. ' r' -,i '� -- �� - � �i t y � � ' �T� • •� 1 HOME ► DECLARE YOUR INDEPENDENCE ���� ��. � _ :`` , ; _ .,. , ; . . Y �� t ' fi � ;�� � �� r. ��� ,,�..�,�1 ,.:, ,,� o �' �;�, ''a� ,�u�,, , � , � � I h�� �Rh� .��` ','.tt .",�. , • . . �- I , �. � . . �.�1� � :. . ' C, � !T.� i..,� , `�r,�' �j��.Y .... �:. ' ' >.. ;� � « , _ __ , .. �. , . d A ....: . NM* .. .� .+� �.. e d �M::e.ry . � , ^�.� � �"',. ." a� ... ,.� .., . . � .�„�!� .'ae�n'"`�rt°�r y. n r , : w i.S'• " �` �.. �,,: �« .ro��� ' 4 -' ., �' I. ..,;. .'• . vY1�1 � � � + �$ � ,w ` ' �a � � ��, _ � . —s`.. , ,._.,�' ' r � ^^ . , , ... _�w.,�_r,_ ,�.� , ,. � :a - . ,t� 1 ,. � ,. a. „ i� � �` .�„ � a� —�, _. . ,... .w „� � , . � � � � �� � BOU fiC�tUt (:H}C: BOUTIC�UE ARTS IC�NIC HISTORIC Liixurt� Fi�u't-i {t���i� RETREAT A distinctive vibe Where architectural Historically signiFicant Those rare places Hotels that deliver and character with a masterpieces are landmarks where defined by authentic effortless relaxation and different perspective on indistinguishable from the allure of a ciry's service,total sensory stress-free indulgences the local scene mixed the blend of exotic distinctive past meets inspiretion and singular amid enchanting and with a bit of edgy style, objects,locally curated all of today's modern experiences that take picturesque settings whimsy and adventure pieces of art,origina) luxuries and stylish your breath away portraits,murels and innovations music overflowing from every corner 1 HOME r _- :x; . _._,.,., a.� - �. ,. i,„, ...... .�: . _.: . � „t� 1 . _ .. ,_..�. . .. :,. . � ,. . .w. , . , . . . . _ �;��.. . ... :. � ,� � _ _ � ;�,; ►�:� : �. �r� ¢.,d . ;�; �t�. � ' � :4k, ` r !� ItliEe�. '`!� �} 4%r,5� �.�,5, �~ . *�a:" �� � , `. '"# � "f. �. �.� �i ��i twti,° ,�.. �, � Q!+ . � r;°. ��il. �:y ..� ��,P . ��s ��'� .'�r '� � _ ;_� . \Fialty�integrated social ritedia tfrars�els �� < _ `� �.' , � ;� �z ,: � +�' �. . Noronly do memberhotefs benefit � `�' '^,_i • �. � = ��; _� �� _ ': , . from bookmgs throagh the Autograph e� . � � � s � ��-y�y �.�"'���'S�'��IM������:�_. -�`��"��'., �� ���'-� �* ;• ���' . ��'�'. �' �#�1� �� �.��-.: ��$� . �p 7 ��,i'.: �, '1� . +;` _ � �r�4t�� ��� ,t:.. :;��l\s i; ,ypi'S a� � *��, �* ' � � a� �` � �� �+ �i� } '� :si �� � r�. . � ± t�,� ��' 4c'::! '�r',� ��:��� . � � � � > �.- > �. �`, � F� ,-..a � �� � �i � r ,� .t Q( Y.,; y S J3r �� �� .y, .{�� - �� Qi ' - #z f. . C h 4� TheFQt�CffECRUZ LiS30af�1 �. „� } , =- , Q - -- ,; �_, � _ - - . -- � , • � � < ,, _:�` i� � ,� .� _�E. - - ��� ..�t � : ` ; . . �• .. . .. �' � A�` .- �,,..�, ':iu,sr� � �, �t�, ��`.,' '� " ,r�:�,rf, i �1 .�. ��e�. . "r.��:.. .,� � � ,,uMe' g ,� t •�^K � • - ■ ^ .. f ".A'A 5 � n.., u1Wi" � � r + ; . . . � f�� ��l�'� ,' $ ^ -�.'VM� . m ., �', �' �`"' i�,��.� �, . MARRIOTT.COM ,�.- - � � � ���� ��� �.� ,x �" S � �`r �"�"F` ��, �, �~ '�` Y ..�• -�, ��"�a The world's largest lodging website. `" � �'"' 1 y _ : �� ___ ____.. ._ , � which generated more than USEB �' ' ; I � billion in revenue in 2012,is one of _ F ��p� � the world's largest consumer retail � � websites.Representing over 52 percent : ' ,; y ' ..__ ' r �, �� , of Marnott's eCommerce gross room +� - sales and one-third of all rooms booked ,�;: at Autograph Collection hotels,the ` ;. � �- - '` channel is a.key benefit that exemplifies "' �y ' ..,,, � . . ... ., � - „ the true power of partnering with "" ` " Marriott. Marriott Mobile is the third f� �""' largest consumer mobile char,ne! ,. ,. w ,, : -, -- �, ' � €�„ , globally based on revenues. �. N r�i;� . . , ,a: „,o, �I��iz'��Itl�� ��� y���ir���, ����I���'� �II���' ,,,.:�� I�' 65h5�'dw"wu�i;a.s�rPti�?;i7�dw.rw=4.;�,.' .. " 4 I r. �,1.' f. 1 H�ME � �':�,?rl!-on,Housron,Texas } � �1 � � �� ..:, . �, ,�, - ,.,. : . � �p reservatio�system,is the first artd strongest globally integrated reservation system in the lodging industry. MARSHA powers Marriott s industry- � leading distribution system and is fully + integrated with the company's revenue .� _ management.eCommerce.customer �+ � �, .. loyalty and property management " �"�' ��;.�,.:._ _ ;: , .._..., systems,as well as with the C�lobal .. — •-�_. ,-�- Distribution Systems(GDSs)used by ° `� ,'_'��'""' travel agents and other e-Intermediaries. ��,� �_, p. ,,�; . ��;��' Over the past several years.MARSHA -.___ , ��: generated an average of rnare thara � �, $t�rniHion new reserva►tiq�s�et yeaNr, . ,, � �;„� J t rn�%�MC� �8t!�F, #�!�ki� +�� - — y i;�� '1 ��., �,, .,�_ �$„: . _... ' j � .- ., ',r�'S'v.'Yh �Fvi'E. ���-: ��..h��: _ 'zk�v, .. . . � �`". . _��. Marriott is the only lodging company to �,..�_.. . v . . A, successfull im lement strate ic account '.`. i u'�- ` ~"". ��� V LL ----�. ` • • ` ,'� �� t � ■ � � �.. ,„.,,.... .� Y� P 9 ui management and a proactive sales � � � � � effort against top accounts. Marnott �y. : , , � � ■� � � �� � has also consolidated its Intermediary " � r "q �g, b �� � ��� � '� Seqment strategy under a global acc��un! - a` `� ' �i�' '�° �� n "�'_ �"�a•'' ' `�� ' ���;; � team to further optimize revenue, .� � � � _�,��,� , g �� �" profit and.opportunity manaqement '"*�" �� ��' ��1 �� ;�; �.,a�^,`�p�• , s� � across major distribution cha�nels.As a . �� 'i' �+ result,Marriott has extended its reach �i;� +� � a ���� ; ��,t'� Y��.>- '' to 285 top corporate accounts wirh ,�; ,��� � �" � � � �� � � �'� ��,� � � � � ., '� .: . . . . nn ! '' „¢� _' ^ �.''. _.� „�� '�t '. .. � p��. " � approx�mately US$3.4 b�llio�+n a ua � .,, � , sales globally and 1.000 top association y�� � customers with U$$700 million in annual � � x-.; � �������� .� • ,, �yk, - . � . � . �Fbd' � group bookings revenue. ` ---" ; , ��; {, "��, ,�� .i i ,�', , `� , .. . ._. , .. , � GLOBAL SALE� � � �� , ., � �;�� � � .r • ,, ,.,. z.� '.,�*. . , 'y.�"' h �•.� n`f„�. ' ... ����T., .. . .. . 1 HOME / i umoerry isle i�4iami,Aventura,Florida fi ',.. � 1 '• � �: 11 'H �, NI '`M1. r ��� � � . � � _ �w;:, , m ,, >. �. �> . w � � ~ � �E�Ss,and morp#hari.4<!per�t o� ,�' � � Marriotts gcoss sales are generated � � `�� through electronic chennels.In addition, : r � �i� � � �r �/ � f,���.�.Ky � ■ kF 1 �F�1K'lYi'Ci��.C�1��,�Nrs,�"'i�l$� .�1�'e. .a,> n a= a$x}' , , i . � • � ., � ._ , .,.e; ..,..�..„: .;, .., .� . .. . ... .. . . � .«� �!' '_ � _ — s ' - �`'� t i'�'�� . _.. �.�.. 'R�-' � y\�_ r � N :, — 'f "9 �" • � ' . �[ 4�.. . ) t: • '.�' �i � i � �» , .i . ��HA�I�t��t=� ' �:- � ,. � �� � +�...�! i 9�f ,� {ja �� ��' '�� y���,'�� — ��' i s �r`C..� ; . ` ' n "!b""!!. ` � i '� �JT � ° � '� "!�. � � ��; k u � ,. � '1` '� +C.:' — ;;:' _ _ - � � � ,�� REWARDS WORTH � � � _ �_ � ����� Autograph Collection hoCels are able P to leverage Marriott Rewards,one of . ` `, � �:.�. . ` � :� k,.�, ,.,��ti ;" . �r , � ., . . � . .. ., , , , ,:., , , . �, . .. , ,. ,� , , �, , �� � �� �� . c� r R �.�s , �3;,y�1�� �.. r6�r;, � ,,��t,l t���,��' I�,,,�fi:��`����':��i�Yt,�; '��,��, .�I 'ty..� ,�S� - . . ., '- L ��rr+�2!+�r�r`�..._. «M�• __.r _, Marriott Rewards stays since Marriott � _ �,,, �� � ,�� :Rewards members make a siz+�able u '' ,�'�''"� ` ' � , , , tion to tatal occupancy,typFca�ity - " - ,,_ ' cos�tribu,; , . , ._, _ ,,,. ' , .. ��� � ,. , �'��� � ...�: � ,�, �;;. , ��... � , .. a .;���-,� w .�t ' � t�rough a variety of programming, •' * y�,�. , ��� .r°�� =, partner marketing opportunities and ' `"" � promotional than�els all designed to ' ''��'' I� � � ��� deliverincrementalrevenue. ^" �' -' ,r �� �.,... . �',, � - �. , ,,,: �;? �+ hz.i. ��• i;i �N;` � wt/ �� wa., q � ` � -� ,... ._ .� � _� ..:::,_ � �t„ ;,,,� ,f� Access to the Marriott n work et deliv r es benefits that extend far beyond the '. powerful distribution and marketing ;` channels that direct�y impact reven�:c- f� and performance. Independent hotc will be able to utilize shared service_ _ such as revenue management,leveray� Marriott's enormous buying power to secure procurement savings and ta� � � � r� � advantage of many other resource_ � ' - � �.:' � � .��.. � reduce costs and increase efficier: _ This gives an independent hot, to resources that otherwise wo,: � :. _..... be completely out of reach wit'= � sacrificing independence or contrc� ��""�""— ' _ _ �``��� . , �� � , +` s _ , � _ _ -.h Most of these benefits and programs a ',3: �-.; � `"; � ., � .:--.�.. -�- '. _--'` " optional,ailowing the hotel the freedo � to choose wha - �: . . - - - = R�.. . ' y�--: .�.'�.`._ . . . . .:r.-�.. � F to participate. -- i .� , .. . . , , , , i BENEFITS YOU CAN ������� , :�r i�. ` , , , , . __ ;,. /,' 1/ ,%l,` /I ' �; � i�'� ,. � �,.,�� ,�/t.' 1 �.�s ,,_ "'.��=-�y�/.,' /J` , , f' �, �; . 1 HOME ► _ , „ , �_ .� _ ___ �,�_.___ ,ry�_.::�....._, � F ..�� ;.:� �, ,��r � �� `y.�`J '!l.Y ' �y�`m'�:; r^""' ..�-� � - , . ��� ::8 '�� � � ' � ���„ ' �„�� � A ,�` � tK'�,. � ,�' ,� ,I.r� ��,, ��� S ��� .�. � ��.��. r �r'� ,�,,,�.M�.... � '�'. ���'.o ♦ �:,x • • � • �• � r, � ��— . , ���� "�. � � . i � � • ��. � � .,, ��j� �� ^� . . � �, ;,.""�.`°.�>� �` ,,r ,, �, .._, ; ..._ . w� �4 • _ _ � .. .. r� - .. - • -: �' - '; �,. .,, . . , , ... - , �� �1� f� . ���. "� �. �» i s y�G ,. k 'y _'. 4L ,p'Y t Q •tl i M• . 9 6. .. . . ... ... . .� w0'�, � ��� • �� . ,,'1..'�.,^; ,il�,� Y r�,: . . ... � ,r .� � �* µ,'4 '7� j '.'�'� �+f t.G � �'ry'�+. �Y�"' ....� ��� . �.. ��' �a .. : . .a t��� : » a �,,���' �„,���, � �: "�� � �� �� ��"�"'�M �� �._ , . r "� . , G�, �, � � ,,�(, �' e�� *, . ` `, �q�g'��,,��'', — �, . ���„ � ` �;�,� ,� r '�9d�,y'��,�kY�+'�ri�'�"f�t�'�,,�t�,F�f�i � t a t�' f:-' � r �+ �, #� �'�` ^',p`�I�•Y� � ..'� � '� �' , � � �� � �' �� ��_ �,�i��".,� . i, [,''� . ��'- ' < i�R'"t . � . . .--• ;. , ` .�."t'G�` , , � _..__.� , . . . . . . '� 7 �. �� ���� � ; �. � �. q� , * � ' ' . . ,., ., ,T' �, � � , . . . � . . � . . �. �. . .� ._ . . � $;,..�'c".�t��. �.- .. 9x;��i_..,'' e. � a�� ���'�« '��� � , . �� 'T �: �y ��1.. �v' � . , ,� :.. ,.. � . _...._. , , � . �.. � . . . �. . .. �- '�'`�±� � � � t "". . ''y�� � % � ' - ��': �'s� , �,v s. �oa,��,�M.��ikr��.�., w "ry � �'�'wa^ .��,�' .ey 4 � � si qi '""'` ` „�, '- + 9h$, u . � ���t,�� ; �G v��,� �7�"�� . . �� � . �� 4,� 1 HOME � tioscolo iiudapest,t3uciapest,Hungary RI � H FI ELD � HOSPITALITY �r� rpcare _, v�} =��,i�w # � ���. , . , . ;. R . . � ,. �;�, .�� . � «�.`.W _.�: � .� ,�l��t� -� ' .�a' � • • � OVERALL MAIVAGEMENT EXPERTISE Richfield's hotel management operations are differentiated by three operating divisions: Full Service, Select Service and Lifestyle properties. Each division employs unique hotel strategies supported by a cadre of corporate services. In lieu of operating from a traditional corporate mentality,the Richfield philosophy is to empower hotel operations by providing the most effective field support services. Our established reputation is vetted in over 40 years of trusted experience,and will be structured to maximize individual hotel performance. Especially in today's operating environment, Richfield leads hotels to new profitability heights in a dynamically changing economic environment. � ��� � . Rrcu�na�s:di� - . ticcP�rc Kc+xr�;ni�xi(�anncrth fn unJ Inlcr.iclnc N:idcun� g . .. .. li-iqii\����r.i I manccd]c�umunc , � l�:mraliird:\c.�wming Full ticltrl l)n-Prop.n�:1c.uuubnc s ticr�icc ticraicr I.ifiyl)Ic Nr�rnu.11:m.iprinrni Iluman Ktvuirir. Ituk\�:m:i�.•nw•m I'rcwurrnh•nl Projca\lun�aecmant �-l'L':1�.. Iu\ Properties within the Richfield Lifestyle division include: ■ The Joule,A Preferred Hotel, Dallas,TX 161 rooms, 14,000 SF event space � St. Regis Deer Valley,Salt Lake City,UT ,.,k��„ 194 rooms,7,500 SF indoor&7,000 SF outdoor event space r-,- Casa Moderna Miami Hotel&Spa,Miami, FL 56 rooms,8,000 SF spa,14th floor infinity pool Properties within other Richfield operating divisions include the following brands: f'V, � ` •y i—���iwo�on - (�(�[�1 b 0'� s'S,. HiltOri �����«, t a<�; �;� :������ �\ Shera�t,on� ST REGIS FOUR: WESTI N Po�NTs NOTELS b. RESORTS BY SHEkFlTJN � / �`� CROWNE PLAZA �nQU I NTA CHt)ICI:HC)TEI_5 � ;�., � __—_—_'—_ �NNS n SUITES i�'..yt�,�y�,,(�)k1�l��i�4� r� Richfield Hospitality�Proprietary&Confidenrial � Corporate Overview �August 2013 Richfield's goal is to balance stakeholder management and unite the team to maximize ROIC. Operations must drive top-line and bottom-line performance while meeting both brand and consumer expectations and ensuring product relevance and sustainability. This process begins with a solid underwriting process and forecasting followed by diligent performance to meet or exceed expectations.Our entrepreneurial approach is hands-on and features frequent site visits and constant communication with our guests,associates at the property level and providing unequaled transparency to our partners. Our hotel management business operates in three distinct sectors: Full Service,Select Service,and Lifestyle.This allows Richfield to adjust our game plan for each property, provide the appropriate level of field support and maximize profitability. Richfield's ecommerce support works to augment sales and brand efforts by improving each property's online presence with � � attention to guest reviews and additionai online marketing. � In order to ensure maximum online y�„�„ "" "," ", ""� "...""` "��"".."�'.�"„ profitability,we maintain an annual budget ; �__ _ ;,, ._��-- ,� _._.... for guest reviews and additional online � � marketing initiatives that directly support all � ;��_ ; J _��• sales efforts and online search.At the same ` �� ' �-.^� �^� E�^� � _ _ _- . �,;,,,..,...:,.., .. .,. «.,..,>..4,.,_ ,>>�s.� � 6. time,we collaborate and ensure ecommerce � efforts are in compliance with all brand standards. �� �� _ . .. . . 0 y O __ .._.. __.__ � � _. .. _. . ..� . ._...r " ... ._.._�. i ._.._.. , � �... . ........__. . �.___.... -_ ... • � • � .... .. .. . . . � . � . . . . ' .... • .... �� ,,.:...,. :... ,...... • • . .... ,� • .. � . � � .... ..: ,_. - • s . .... .. .,. � � . . . � .... .,�._. . � � � � ` .. .... .. • _......_.....� .. .. . .......�..,. , �+�....>,... _. .............. �..._.,..� ... ..._..,. .,.. �....__��..._ ._.....��_ � . . ._ .. ._ �_ .. .. � � � � Richfield Hospitality�Proprietary&Confidenaal � Corporate Overview �August 2013 RICHFIELD OWNERSHIP STRUCTURE Richfield was founded in 1968 as AIRCOA in Cleveland,Ohio and over the past four decades it has benefitted from management experience at more than 600 hotels.Several important milestones over the past forty years have placed Richfield and its sister organizations at the leading edge of this competitive industry. Richfield is a private company and subsidiary of City e-Solutions(CES).CES is the designated vehicle to spearhead new business initiatives in the hospitality industry for its Singapore-based parent company,City Developments Limited(CDL). City Developments Limited is listed on the Stock Exchange of Singapore and is the second largest real estate developer in Southeast Asia with a market capitalization exceeding US$7 biilion.CES is listed in Hong Kong and its shares are also traded on CLOB International in Singapore Amsterdam Stock Exchange. _ Ou r Stock Enchange of Singapore US 57 Billion Market capitalization Ownership _._.._ _.�.�..T'____'_^__._...._..._.._._., �._."'-_"_ Structure � I �— Listed on the Hong Kong � Stock Exchange ' Listed on the London Stock fxchange ,N ,���� i, • � __ _ _ .. � � � � � (SHR) Privately Neld Entity privately Held Entity Denver,CO USA Delaware USA � C3 ��' .. .4:Y?.;R� tiu�.ncrtes Hc�telIQ� �[`r++��.e�. ,,��lINX � «�ua.�a� ���� � � , .,.... .� .: ., .�. .. � � � „ � , ,.., w,.,, _,. , �. ,. . .-. ,._,. . ,. ,.... I Richfield Hospitality�Proprietary&Confidenrial � Corporate Overview �August 2013 THE RICHFIELD PHILOSOPHY Our management philosophy is rooted in delivering owner profits and asset appreciation. We are experts in delivering top line revenues by exceeding our fair market through effective sales,marketing and revenue management techniques. We retain exceptional talent that adapt to market conditions and apply efficient operating systems that build strong customer relations and win the loyalty and respect of guests and :� cli€nts alik€. We engage the community and are accountable to ownership by maintaining appropriate cost controls and providing reai-time transparency. �y�ETp�� �F*y 'KExoio��J�E '� �`� �I AstetHedth.PEVVAN+Ma�k�tShste = ,�� ` ..�.�y 3�7_: -�� i/.!�_m:�1� iyriic' �; ....._. � .. CORE PURPOSE � Our purpose is to grow top line revenues and optimize owner returns and asset value. CORE VALUES `� We are loyal managers on our dient's behalf; we will strengthen top and bottom-line ; performance. We will eorn the respect and trust of our dients. ' We are driven competitors who serve to win every guest, every time; we are hospitable and : will exceed guest expectations to win their business and loyalty. We wrll eorn the respect and ' trust of our guests. ; We are compassionate supporters of our fellow associates; we encourage their individual potential and aspirations. We wil!earn the respect and trust of ou�associates. '` We are committed partners to our investors;we will expand our reach and produce favorable ` returns. We will earn the respect and trust of our investors. �: We are dedicated citizens serving our communities with charity and hospitality; we give back ' to the communities in which we serve. We will earn the respect and trust of our communities. Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 � 1 1 � 1 � I ,w...,i I �: I -� I ��.� � .�. w AUTH ENT1C � � ? COMPASSIONATE � T��-��� ������� � o ACCQUNTABLE � � ACCOUNTABLE Take ownership and responsibility;Cornmitto commitments Deliver excellence on time and on budget;Hold yourself and others responsible;Seek feedback to improve AIJTHENTIC Behave UansparenUy and openly;Live uncompromisingly to own values; Show genuine humility and humanity;E�ect and celebrate candor;Do the right thing COMPASSIONATE Genuinely care for others,Recognize and respect individual differences;Be responsive � to the needs of others;Take other's perspectives;Give back I jDRIVEN Tenadously plan and execute;Actwith speed and purpose;Overcome obstacles ' yMake the tough dedsions;Strive to be the best ' ' ORIGfNAI Imagine what is possibie;Seek creative solutions;Try what has never been done; ; Challenge the status quo;Take risks i � TALENTCENTRIC Hire the best;Bring outexcellence in others,Make the tough people decisions; Do not compromise talent standards;Expect big things,reward in big ways. � FUN Be po�Gve;Create work/life balance for self and o[hers,Encourage laughter and j enjoyment;Cefebrate wccess;Don't take yourself too seriously � � , '�ae itichfir�f V���ue�ocus �aelMeNM�REVV#ft•MuksiSAue = ,� ... .m._ i " " � .1- �.Ili:_ .�`�r.�............: �J��:. 1. �/i:.:it�.. ABOUT�� RICHFI'tt.D NOSPITALITY Richfield Hospitality�Proprietary&Confidenrial � Corporate Overview �August 2013 PROPERTIES CURRENTLY UNDER MANAGEMENT ■ .•• _� .. . �...� . .� � �� i ��, The Joule Hotel � ,s RichfieldAsse[Martagement Dallas,TR 161 � Casa Moderna Miami Miami,FL 56 Sterling Hotel Sacremento RichfieldAsset Management $acramen[o.CA 17 �� _ _ .-.:.'v�.:�., �� .���. SL Regis Deer Valley � —� � Rich�eld Asret Manqqement Salt Lake Ciry,UT 191 I, { , . � '�''` �'``' i _ � „ "�"?"` y �a�,: :,�,- �. �'' � � , r - _ �:r. �;�,"".- , " f� -��� , ;.� . - _ , � ., �y' � ,F . � ; .. ., . . � ,� . � ... . � H ;:.. � . �� � � — ; ` � � ;. ity.,,�.` .�._ \ , . .� y — \\ � _ Z= � - :� �—`''�_ � _ - ����,._..� DoubleTree by Hiltnn Plnnmingtnn Minneap�lis Bloominp,tnn,MN Sfi4 ,r _ � � South ��''`�-a-� _ ' � l�, _ `� , DoubleTree by Hilton Notel Burlington Burlington,VT 161 ��-� �- . � � � � � � Sheraton Chapel Hill Chapel Hill,NC 168 ���s� . � � _ 't�''` �� Shereton Pittsburgh InU Airport Loraopolis,PA 204 _ _ � � � � +a�.� DoubleTree by Hilmn EI Paso Hotel EI Paw,TX 200 " � ` � � � ■�4"_,: Sheraton Fort Worch Ho[el&Spa For[Worth,TX 430 � __�P.��,�� � � ._ . ��3,�i.. DoubleTree by Hilton Hotel Dallas•DFW Airport a�� Nor[h Irving,TX 282 .r�..,,�rd - Mainga[e Lakeside Resort Kissimmee,FL 651 �� '� Wyndham Lisle-Chicago Hotel&Executive �- `�---� ��—'� � r � Meeting Center Lisle,IL 504 - y Crowne Plaza Metbourne Oceanfront Resort&Spa Melbourne,FL 270 '- •' �� Four PoinLs by Sheraton Philadelphia Northeast Philadelphia,PA 190 ��� � f��� Crowne Plaza Syracuse Syracuse,NY 279 ;} � �� - _..� y„� � � .�, ���`` �i.ir��, �-_. • - � - rt `�� ••• •� `��.y �r ��y � . . � ` Comfort Inn Vai]/Beaver Creek Avon,CO 147 'r . '�� ------_ � � �-1y - � .. „4f Hyatt Place UC Davis Davis,CA 75 - -��- . ���p�;•`J�' s_ -.�- Courtyard6yMarriottFairfieldNapaValleyArea Fairfield,CA 137 �� Clarion Gilletre Gillette,WY 159 � , .� f �,, y.�. - .� : �� � .,� � �� f `:�� r ��� _ i ..� 4' '�'�� . �� �� I . Y � ,.�•` , Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013�� MILLENNIUM&SCEPTRE HOSPITALITY PROPERTIES •• •• ������������������• ��� ii1►�������������������• •�!� � •����������������������• �r+i►�• �,;. s�����������������������• •��+II��� „�.�. •���������������������i��������• CrownePlaza •���������������������������►��• Syracuse •���i��li�i��i��rii!liii��li�li •����������i����l�������wr��� a,..4,.,,�p nry ..^, aN��������������������������+IMa�r• �� - , '�R•:, "`iv . •�Il��������������������������bi• �� � -. � •���������������������������• � ` •�i���������������������al�• ---- .,. � ��������������r����������� �"�� SheratonChapelHill •����������'d���������IP�• � �� ������,�yr���������� ChapelHill,NorthCarolina •�����M• •�• •� ' �����• •i., __ •�• •• •�• � � Casa Moderna � Miami ��� � ne���.,� n,.�,�� .,. y 4 ��w,� 8acara Resort&Spa ""��' Santa Barbara,Califomia The Joule Dailas Dallas,Texas � , Javiii��.iu.�i Manages20properties Clien[sincludenearly500 Over100properties �' wich over 4,000 rooms � ho[els,over 28,000 rooms � in 18 countries MIILENNIUM HOTELS NORTH AMERICA .... . . . •.. ..�. . . �.. Millennium Alaskan Anchorage Anchorage,Alaska 24H Millennium Hotel Minneapolis Minneapolis,Minnesota 321 Millennium Rostonian Hotel Roston Boston,Massachusetts 201 Millennium Broadway Hote]NewYork New York,New York 750 Millennium Biltmore Los Angeles Los Angeles,California 683 Millennium UN Plaza Hotel New York New York,New York 427 Millennium Harvest House Boulder Boulder,Colorado 269 Millennium Hiltr�n New York New York,New York 569 Millennium Hocel Buffalo B�ffalo,New York 300 The Premier Hotel New York,New York 125 Millennium Hote1 Cincinnati Cincinnati,Ohio 872 Millennium Hotel St Louis St Louis,Missouri 780 Millennium Hotel Durham Durham,North Carolina 313 Millennium Scottsdale McCormick Ranch Scottsdale,Arizona 125 Millennium Knickerbocker f,hicago Chicago,Illinois 306 Millennium Mazwell House Nashville Nashville,Tennessee 287 , . . ... _ .. ., �.. -, ,. . . .,..� ,�t a,.�; u..n a..���' � .�. Y�S�. ...r , S.�-4�..s . o�k:;'1 S� .ti.�_,�:;T h.,_,..., i '.7 .�, . � .�. . � , � Park City Vacation Homes Park City,Utah Merit Hospitality Services(2 properties) California Amelia lsland Plantacion Hotel Amelia lsland,Florida Uecatur Conference Center&Ho[el Decatur,illinois Cupertino Inn Cupertino,California Hooters Casino Hocel Las Vegas,Nevada Princess Tours(5 lodges) Alaska Maison Dupuy New Orleans,l,ouisiana Bacara Resort&Spa Sanra Barbara,California Newport Beachside Hotel&Resort Miami Beach,Florida West Wind lnn Sanibellsland,Florida Regency 5uites Atlan[a,Georgia Inn Suices Hotels(12 propertiesJ Va�ious Treasut�e Bay Casino&Notel Biloxi,Miuissippi Pikes Waterfront Lodge Fairbanks,Alaska Historic Key West Inns(5 properties) Key West,Florida Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 � � • • � . • , RICHFIELD HOSPITALITY CASE STUDIES "� �"� � � � � � � � � � � � � � � ` � : _ . � � � � _ _ __._._ �� � � � � � � � ��� - .- � _ � qc, .T � � � u � � � � "� ;oule Dallas,A Luxury Collection Hotel � �� �� j N�.��. � �� �� � . � .., , The Joule Dallas is s�tuated rn Downtown Datlas,within the cenval busmess distntt arb adjacen[to 's � � �� �...0 ... " Uptown ard Victory Vark The hocN senes as a backdrap fa an astonishing cdkYtion of art that ,�. � ��� ectioes tMougliouc the PM Nigbtlde lounge,Chariie Pakrcer rest�ront Nezt Vntage Wine Shop ond : rooftop pool with unmatched v�ewx-a11 of which are unique to arry hotd in Dal{az. RKhfiNd aswmed mxugement of the Aotel a�Wne 2010.ihe hotel was underperformng ro financi� � � .. �, ecpecUtiom ard bvng mahet stwe-Even tlaugh the ho[N wu perfarming ro the las[managemen[ �` ; ...,...` c "s sUndards and mnimum brand standards.the ortpairy propMy had ample room far impraremen[ � ��-� i NotewooEWnsqnonTurtkCrM M3 4 Waw¢t MeNost Molt1 D�Ilis 1& t. �' ����re���� � TheRicAhetdWategywutoimproveacupaMyandRevPARwiththeimpkmenGtionofa . i � ��� � e�nie�ced operauons team co�ined with a sotid rate strategy ard service enhancemmtx Upon j stab4zing the kadership[eam,Richfield toot immediate steps to faus on busi�ess rthx semce�nd �i RiUGrRnnOeNai 1ffi ?" i pricing lower ADR busuxss wu displaced wdh Mgher ratM accounts expecting more service am1 '� . ' w��iV1°0f�' � luwry apenences.The team alw faused saks eRorts ard Ki stnt x pr ng e�es agaimt arnval md a���� departure patterru W create greata RevPAR cansistmcy. The goal was to mcrase AOR that � �'� F�. +..-.���r;�„,. �ryy kad to an mcrtue m acupanty from multiple channeh derwed from boM kiwre aid � `� capaace dertiand Smuttaneously the hotel improved rts opent�an by co�ining kadersMp ., xcountaWhnes and wtiau�new inceMHe ptans for key performance mdkators mckding gueu � "' ....� � suisfxtan.Mand t�aNry.cortpetwve rrk.oreran nwrlcet share ana fvwncul perfornunce_TMs � � rewlted n drarrunc axTeases from ap indices as weA x an imprwM oMme presence md mtoriety. � i� ��. .. . . ....aea ... .... � Cantludng[he ht year of AKhfield operaGng lhe hotel,the lade Oallas acMeved 104�RevVAR mdex �, { ....,... .. . � ��W�'"�B�1'6 year over yeu vfiik Me marketplace improved 1354.The(otlowing year.kevPAR � .k. s,� s'""''"' inda intreued�n addi[iona1195%for 1011 wRA a rardc of 1 a[of 7 baied on percent improvernent ua..a WeeYend NevPAR mneased another 39.3%YOY wrth overalt RevDAR grow�g 253 YOY AI[oglthe. ��. W .'�� Rich6eW openWm increued top line revenue an additional 589�md�ded SI.bM to hane profit Empbyee satisfxtion scaes gew 6om 70i to 8796.AccaQ�ng W TripRMisor.The I�DaNas is . � ,' + ,.....V ..,..... rinkEd wRhin th2 tOp five f10IM5 irl thP nqrklt—u OPpOi(d[o a28 0(187 wR7Mn the Di�lai mafke[ � �, prqr w Ricfi6eW aswmng nwrwgemeM o(the 1a[d.S�milarly,ihe Charlie DaMrxr wu ronked s8p .. i m�d is�v the z3 0(1180 iestawancs in DaXas Oveiall the haeCs Guest Satistxtion Index continues y� m rtwMam rop nnke�s artqr�g its NorM Mierican counterparts. � ,.. . ,. . _.__ � � �c : ■ � � .,._ �.__._ ____....__ _._._ .._— �..._. ____._. _. __.__. _.._... .........__.__�..____._—_._....�__._._._._....� �_:a � � � � � � � � ... ., � � � � � � ,....� � � � � � '� a�+�.a :� ��. ;�'i � �. ,:, � M � ..,.... � Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 � �, � � ,� �� � ,� �, � ,�.� �� � � � �� • _.�` °. � '� _� " `�...�� ��° �� � � x�,���F.� , '��vM 7 ���..+�1itl�ciy ._��� ...i.� � ::: '� � .:� �,�,.�``",y�,..�;�:,µ��"'��.,� �'��4t�c, (.}eur�f�i��Pv .. �° "��� "'"9< ��. , �Y �� .. _ �_. 1 r �"2 ' =� i he S[Regis Ueer Vallry has IN guestrooms an0 suKes,znd is IocatM m Dccr VaNcry,onc of Park Gty's � � �' � , _ mnst spertacular ski�reas with sublxre slopes,100 traik and great virws of Me Wasuch Mountaim , 3 im%>�.,s:ira w���!!Cl�3t..s,✓-!.;'.���,: ,� h a also near uniquc amactions likc the Gmball Art Cemcr,the Utah Olympc Park and thc Sundancc '� . � Mettival.iiu(�Hsm�reholelfealurM7500x{uarcfmtnfindonrcvcntcparr,7,Wpsq�arefcelof ��. , �� out0oa Nnctan space,a full smice spa and varrous dxwig opnons. . �.. �;,;.., �. . . . Therewrl,budtnaTi.edusedestu�auoninc�udi�gWxury�esicences.froctionalowr4vship,club . , , , memAnstipandhm�JeExpa.wasperinrtningbeiowexpectationsdespiteilcwperb�farilitirewAhin `.,"��s' r� �� he'r�m srek E fasr�toaSe ,.n the markNphce.AcUr�on behaif ot the ownesND BrWD,Rich(ield HospitaNty wm appaMed to sdve , . � ��q�`� 77 ac the ewruYs rcmsrntativc tn assrt rturagcr hy cwersming tM rwicw and ap,xovat prncess fa � j� � amual business plenrnngand budgets as well as ongoing managMient mersight Accardingly,Ruhfield Wa.tY✓/+UkraVa�YC�.M IA :� , prov;desatMsorysenicesinavnenhipardthehoteloperatmThixinr��udesoversigtxofmarket . . � M"'��"�"�' u� positbningfinanci�perfo•manceaneprojMansaga�.nstincustrybestpractices,enwringtapiwl �� �� � Hrut�m�.aaRe.ieanca� ts3 eapendiwresueR0ldmenandovenAoperatianseueedsstakeholAerexpecutionsxdcomrxWN � . . obligations. .��,.�,y� ';y� tAe RKAfidA sva;egy was to accNerate top Ime rcrenue gmwth thwugfi gro�p�nE vansKnt busme� ; � � aswelluop;imizngfoodzndbeverageatletswhikualmge+q�msestodemand Th�swuachievM � � by rc depbying thc saks team ro makh new production gnak based on teeder markcts.The proprrty , � � � also imxwetl revemx managertienc eYectneness by artrzcang mpre tuaative bus�ress arM ad;us[mg �� � ., chamelmuugen�entVrrclrryr,sUategi�handdxcostofiales , i�, x �' Rirhlield usM martaqmieM aersight aho nstiAed�nae s:ringent cmt cex�uols and opealars , k� ����� � accounhb�ity ro�mprovp frnecasti�r�xcwacy anA xal�ti lity ro irarke[x�nu�uhry.Wr[h a thnray,h ' � '� �r �. undcruandingnitheprnqvtyandnsrturk�tcynarxctassM�mprrnertNnttweremadelo�apWre ', �� ,`�:�, . .....��... ..... ... mom food and brvera},e and$roup revenm w�ch together ern�eded R01 ex7ecta[rons. b�: , _� �� .. The Sc Regis peer W Iky utieved 29�YOY RevPAR ercrrase by k�dx�g rts marke:with 1335 AevPAR n � kdex WiM the re-Aepbyed sales ard n�keGrg effares.group poduc[an i�wa�sed//%YOY resultMg ��;YS . in p{owrcw rooms departmmt profi:s by 60`R whJe foad and bevmage deparGrKnt p�ohl�ew RQ'i . �����y. x � IhenNresultwownersfxpsfterdrrv��ngtuplmerrrenuesandxabngcostswasanastanc��ngSl9�, , �; � year aver year GOP improvement. i� � .,. ;� _ ',� � � .'� � � "' . . ' 9 �'X .......-.e�v�.rw.��...���'�, '��' � �, y ���UY�l�'xw} �✓m'""�"" 5 �'^""'-..+-- 1, � � � � � �e � � � �a3��a � � �� � � " , :� � �H , ���� n.�,�� , � � s� s� � �' ��� � � �w, . � � Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 � �� �., � � . � � � � � � � �� _ � � � � � '_�_a _...___� .__� � Rq �����.. %,Y�S:t)n C35P S!l1Oy' . " ��.��,���� � :Moderna Miami Hotel&Spa '� ��... � , , _.c;,,,� ' ;�. � _._,;�..,�__ _ � Settnga new studud fa stylq this bartpue hotel unleashes an ulUa-rtwdern er.perience in Downtown Miam,cortpkmeMed by swnning arctitecture,plush perks and great savice lonted in � ' ttx biaUing arts disUict abng 8izcayne B�Y,the hotel boasts 56 extrava�nt rooms and wite; aquisite dirdng rt Mnuse Restaurarrt&LoixigG and a rejuvenating spa and fimess cmta. �= � , a::;,,. Richfield usumed management of the hotel n)wie 2011 The hotcl was underperfortrung W financisl ezpectttions ard lose�g rturket sfwre wi[h disappmna�g cmwmer reviews uid owrxr reaurK Despite .. ' v�curt, . �resideMiN saks within the mized-use building the hotN wu rqt meeting its rtsidmc's . caa5eaw�s uami lr ���ther.Since its previous rome afiliation and prar yrar opming the hotd neYer xhiered , u�ndam«iMry r,nmi � credibk presence ard therMore requQed a camplete reCnnding and positioning, A�'Wrtion A4raus 2% . � far�E Miami 308 � ���� � The lEcchfield sUategy wu to positian the hotel as a 4-sUr boutique with a unWue Suest e�enenca caaistmt with iMemational I�nwryarW its laal surrourdir�gs.Ttrs included a rebranding proposal ard wuroy µami tq tactical plm that incorporated reprogamming the guest e�eriena with service enhmemerrts �s°1°'� �4 cres[ing a new ideMity,improving service dekvery ard assaciate made,implemerrtng a property mainterwnce pro�am,iMem�7ying sales and prwnotions wiN more mh�ced digi[al marircting social media and camm�xtity relations while also mwringbeCx reverx�e mar+a�gemmt and online presence '�w .� artang datribution channek By elevating tAe guat eaperimce to meet sukehdder expectatims, � �i �, tatel reven�es wo�dd grav ala�g with merke[share and mmpetitive rank which in Nn would drive � � � RevPAR,fnancial Ibw-thra�gh and owner rMums.Carrcunent with rebranding inRiaWeS Me Aotel reedM tn quicldy stabii:e its ztalf and capmre more busirras to ertwre cash flow even if it woWd later � ;� „ be displaced with more promirerK did�le uid targe[ed xcowrts Witliin kss than�yer,Me Irohl i w.,... ..,,_, was resmred to P���1'��Y P��within Me Miami huiury bwtique marketplace 'F[., n,e noca rmmaty�wwn u rmryo Miomi Q aoa:aeson wu�mra,�a casa M�ti Haa�spa,na for the first time eamed i�fau�sUr and faur-diamond recognition TripAdvisar rank dimbed f�om the metro-market bottom to fifth plxe aVong+vith othe�onli�e cauumer irdias.As af September ZOT� . . tlie hotel Aas improved rnst saMings ard added Slm W GOP and NOl AN of the hotel's SfR grorrth . kMica are hig�st amongst its ca�peCtive set whik ADR grew 47$.OttiM recogrvtim indudes iap 5 . spa in Minmi aM fntu�ed�ppnrmca on The iro�M Chara�arM sevenl ecposes in nterrutiorel � � pubticatiorts inctud"uig Bw Apetit,Cande Nost and rww the houl is part of tfie Kiwi co9xtim. . . r . . , ,..�.._ � i� . . --.a•�,�ur..�c ���� :.'Orc;uN�,no.S,rmIA7 5.,;r. � o � �wnJ014�r.C]Eo-1A - '"} _ _ � �� y X, �er a. r �.�.. . �F � � � � . ......... y � � � � � � � � � ....,.... Richfield Hospitality�Proprietary&Confidencial � Corporate Overview �August 2013 � � � � �� �:� �� � � 4 � � � „ � � � °� . , �e : � � ' �� . .._ — — . , s ;� � �.��:�� � � � ., ( � �(YiYis�on C_axe Study i �i� � �:�tC�CiPII �-�fjUSP �r�+ .. ,.., N4� . �� � � � �-^-•�� �;�� �>-��.•'� � The Glddcn Fbuse is a histonc manvan built in 1970 that apened u a hotei in May 1988 and teatures 64 . �, � .� aooms with 7.400 square het of ineMing spaa.Richfreld has managed the hotd since 2003 Laated on .� � the wrtpus of Case Western Reserve Universiry,the hotel n positanid as a boutique hotel in Ckveland's col Wraf center. �� � � i. � . , . When Richfield took mer managernmt in 2003,the pro{rerty had i�efficieM operating praedwes,a °�� . , poor reputatwn in the market rro revenue managertrent sUategy,weak food and beverage sales and� � tmwssyw�us oe��,a oowneo+�n zu as a result-very poor top-hne revenue generation � � � wynOh�mCkRImO�[PI�yliaise5pnrc 2D3 � . ... � aevdmce nn Ckvdrd oowneown ��s When Richfield took wer the trotel in 2003,a strategy waz imnediately implemented to improve � � ., hcacmmmwwrtesc�eivw �E revenueproductionandrepositionthefw[d.ThissVategyincludedthe�mmediatehiringofadedicated v � Directa of Sales,im km�ritatwn of Sc tre revenue ma t am and market channel . artacarc.Mna�nadck�x�a 155 G eD ^a8�^e^P� . . Hratt Regenq(Ipvelind pp IheNc�Ee lq3 utilization,addition of bcal negotiated ra[e agreemen[s,panicipation in sales blitzes and vade shows. � ard irt�leme�tatwn of sowl media program. �����^• ���� Sales efforts we faused on creatirig repeat demand fa weaker penads,improvi�key accouM . �;, ;n � managementandesWWishingagreementvnMCaseWestemReserveUniversiry. � �. ��� ,� � The Giidden Houx Degan reportir�g data to SmIN Tnvel Research M January 10b9,The WuDertY corrpetes against upper upscale and W�ury Manded properties.The property acnieved a RevPAR indeK ��� ,'� � � s �-`"'" ��'� � ot WS$for 2009 and W7Y,fa year to date Apnl 2010.The property is arrently ranked fiat in i[s � � , +� ;` competitive set � ,;.�� � ;s A � '. �� . ��i . ,:.�i mtX[d[1�7Wt tNlt h0tc1 tYt81TdR41i1ee1t W.IYICI'S: � � . , . '7 . . ..._.. .;$ � � � Av � , . .. . � . -. I � � '� '; "; ,: � � � t � . € � � �_�_ `� � y�# g � ¢ �i r � _. , �t ��. 4& ➢I! �G °�"i �� ' . .. . � � � . ��'1Sa ,tl's �itll �P e�r �'� ..... . Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 '� � � .,� � � � � � � " � � � � w �_ �` � .. . � � t � �' '� � �' � � ,�,vice Ow�sian l.scr�;���dy � �n Knoxviile � � L - �_ �� ��� The H�ton K�.vdle has 31',gucsvoortn ard wi tez and over 1�000 iquur iert ot newly re�ovzted _ contempoiary meenr�space lhe hotN or�nalty cperied in I981 and tus a covereA sky bnAge:nat _ �` connttts[o[�e i(noxvilk Convention Crrter.The notd rs IaatM in iM downtown dnnrss dnuict `,� � ,� �eps away hom the Unnersrty of Imt�eisee campus and Nlyland Sta[ium ard offtrs news of tlx � ] GRMSffItllt�M(lUfl�]IfKN'AfIMTCIII%!CSMRIVIY. , � �SF� ,.,„�:,.:.,, ..� Richfield took over tM1e Iwtd Folarmg a change of ownersMp m Decembc 2004.The hotd was 1 v����„�..� .. undcrperfart�ng and in need of a re�oralior anC reposi:prnng Urdcr pev�ous managemmt thc hotd � ��.� �y��rM � performed at c�qrercGtart only du�ng peak demand pe•ads and w[ekday perforrance was bebw the - �_:a e�ectatioM fo•the marketplace.The hotel needed ro overcone a reputatan of poor service a�d Cred ����.;� � cawne a�ua Kno..�Yr "�� �ce Ric�field and cte owrwsmp group cdWwr:ted an the compkte rmovatan of the propnty. .. . � r ..�S9�M410IN4OOw�'�bIM'1 Zfl6 j i �� ���� ��� RichlielQsstra[egytnimprnYrpalormmxeinclu[eeimplr�mn[ationofSrrptrenvmurmarugertien� �;t ua4tat on o!all FancMse resources anc braid progrars,orline tnve agency and tt1M-pury srte % n. � � mar�Ming alan,ard divervfintion o(markN u�gnrnts(aKludw�p rorpfrate grnup.rnrpwate lrainient, �. .4` � � � Q assacwliong•oup,gaverrvreitgroup.8ovemmeM:ransmm.laalnrgntiatedaccountcard�atiaial ' key xcouMs). � .�. .s N. ... .,. Urder e�aR mm- t n Ne 1004.the hntd was nnked�Mrd in as c e sec For over Pr �gemm o^qebt�v " � �. fHe years vnce I�chfield taot arer tfie hotel,�t has beri ranked firrt and GcvPAR rdea baew fran Up4 : ��� in 2005 ro ovu 1079,m 2W3.R cTheld intttased the RevPAR�de�c by 27 percentage poma wKhn four ' �� �fz u� g} RkhfMld cannues tne grovrth Umd m I010 compared to 2009,w th nc•eases n revenue xrass � 'P rtwket segnmts.incNidxrg a IS4 mcreaie n SMtRI grw+C.12�vicreeYse in gro��other,lR inatase in �n, s .,� dem.xx vxrs�en�57i�muase in m�ra:e group.and 3%t incrost n govMnnvnc grwp. ;i � With&tlfieM m k an�gement,Hilton Rnozvi le waz a�te m cannteiNly pfaw Hs sharc of Un�verSrtY� n€ ramessee buvnes�cartnuoinly add laalry negrocaced accw�xs(inclu0uig renreszee vapey ..� � � .; AuthcrRy.First Tennessec 6mt.&uh's and Sm�xs and grow bus ncu w�th nxnr�azcounts � (uidudng A coa Regions Bank and Genrtal Ekctra). ��' '` <> ^�, �; � _. . � � � � � • � � �;r s , � ,: ,� , . . ; ...R .. . .. ,. �� -. .- . �: � � .. � �^ � � � . '� N�� � .,.__. . � � . . : � � � ._.... Richfield Hospitality�Proprietary&Confidenbal � Corporate Overview �August 2013 � � • • • : • ' � ' • ' PHILOSOPHY Our management philosophy is rooted in delivering owner profits and asset appreciation. We are experts in delivering top line revenues while utilizing appropriate cost controls. � --; We adapt to market conditions,retain exceptional talent,and appiy efficient systems that �x` work well. We are poised for strategic growth and offer flexible terms with preferred owner relationships. TEAM ATTRIBUTES Richfield's organizational structure is designed to keep us responsive,timely,and entrepreneurial as a company. We deliberately maintain a lean reporting structure,and we empower our associates to be decision-makers,innovators,change-agents,thought-leaders,and creators. For our associates to thrive, Richfield's organization structure combines leadership and resourcefulness with a fast-paced,results-oriented,start-up mentality. Every one of our associates is focused on maximizing hotel ROIC,profitability,and revenue-streams while concurrently exceeding guest expectations at every touch-point along the way. i We are laser-focused on aligning hotels with low-cost,high-performance hospitality solutions while utilizing relevant data,market analysis,and competitive research in ,� the decision-making process.Whether the team is working with Richfield hotels or a third-party business alliance partner,associates are highly engaged and dedicated to working together to generate synergy and reach the best possible solution for constituents within budget and timeframe. Our associates are dedicated to aligning with Richfield and Sceptre hotels,external clients,business partners,leadership team,fellow associates,and business communities achieve the best results on every project and endeavor to benefit all parties.We recruit and retain the best talent in the industry to ensure our clients' expectations are exceeded at all touch-points;our level of expertise is a point of differentiation among our competitive set. We embrace the latest technologies,best practices,new media,and related , , consumer trends,and then we research and pro-actively recommend ideas and potential solutions to achieve maximum performance results for our clients. Specializing in eCommerce solutions,Richfield delivers top-line revenue growth and �, •� increased bottom-line profitability.In everything we do,we focus on return on invested capital for our stakeholders. ____ _ _ _ Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 TEAM PERSONALITY Every brand is made up of team members who embrace the company's personality,or in other words,its main qualities. The three traits noted below best convey the core characteristics that resonate in every one of our team members and in the overall RHI brand image that our clients embrace and expect. • 40 year track record Focused,agile and quick to set Focused approach to adding Experienced operators p�ans that smartly accomplish ROIC value and top line objectives revenues Richfield's team features a unique balance of strategic and tactical leadership that brings the rich experience,creative ideas,and depth of skilis needed to ensure a successful transition,ongoing management and an enduring partnership. Each of the Richfield team leaders is dedicated to a successful transition of the property. Below lists the Richfield and Sceptre leadership that will support your hotels. RICHFIELD HOSPITALITY LEADERSHIP PROFILES Greg Mount is the President of Richfieid Hospitality. He brings over 25 years of prominent hotel industry experience to Richfieid,molding the firm's strategic growth plan that indudes acquisitions and third-party management contracts.Mr.Mount also oversees Richfield's executive operations, reservations and revenue management team. Mr.MounYs extensive multidisciplinary background gives Richfield a distinct advantage pursuing innovative growth opportunities in existing and emerging markets and plays a pivotal role in sourcing and negotiating attractive investment opportunities.His in-depth operational experience enables him to assist owners on an even stronger level to achieve the desired resuits. Mr.MounYs expertise includes mergers and acquisitions and strategic partnership opportunities.His comprehensive background in hotel management,operations,sales&marketing,revenue management,developmeni and acquisitions help to ensure that ail owned and managed hoteis wilf perform at their full potential. Greg Mount has had a distinguished career in acquisitions and operetions for global hospitality chains and independent hotel management companies.Since 2007,he served as the Senior Vice President of Acquisitions for Sage Hospitality,where he executed a number of strategic deals inciuding the off-market acquisition of the Westin Westminster.Prior to joining Sage, Mount was with Starwood Hotels&Resorts Woridwide,heading up the fuli-service division responsibie for developing franchises and management contracts for the Westin,Sheraton,Four Points by Sheraton,Le Meridien,and Luxury Collection brands in the United States,Canada and the Cari6bean.Before joining Starwood,Mount worked in operations for Interstate Hoteis Corporation and Marriott International Hoteis,working his way up through various Food&Beverage positions to become Director of Operations before eventually holding various General Manager appointments.Mount earned his Bachelor of Science Degree in Hotei,Restaurant and Tourism from LaSalle University and has received significant industry recognition throughout his career. Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 �"' Bill Linehan is Chief Marketing Officer for Richfield Hospitality and Sceptre Hospitality Resources. He acts � as a catalyst to market expansion,new product development,and corporate growth step-changes. Mr. Linehan has an executive MBA and eighteen years sales and marketing leadership experience.His �"` strengths and achievements are in business planning,branding,acquisitions,repositioning,product � launches,go-to-market plans,franchising,channel management,alliances,marketing communications and sales management.Mr.Linehan has core competencies in strategic planning and execution,brand positioning,management,communications,new business development and market expansion. Prior to Richfield,Mr.Linehan served as Managing Director at Hodges Ward Elliott the leading investment brokerage firm within the hospitality industry. He also worked as EVP for a mixed-use development company,The NorthPoint Group,where he was involved in new product development for retail,commercial,entertainment and hotei real estate projects.Other notable industry experience inciudes IHG,Starwood and TravelPort as well as property experience with Hilton International and Hyatt.At IHG,he served as Vice President of Marketing&New Business Development where he was responsible for developing marketing strategies and strengthening IHG's development positioning as weil as identifying new business opportunities that grow the distribution of IHG's brand portfolio.At Starwood,he served as the Vice President,Marketing and Strategic Development Partnerships. In this position,he was responsible for leading global marketing efforts for Starwood's Real Estate Group,which maintains the Starwood asset portfolio;investment initiatives;and global distribution growth for Starwood's six upscale and luxury hotel brands. In his prior role with Starwood he was responsible for distribution growth of Starwood's new-build prototype development.Linehan earned his Bachelor of Science from Johnson &Wales and his Executive MBA from Lancaster University in the United Kingdom. _ _ _ ._ _ - _ __ _ :�evcl. Manager� Angela Landgraf is the Senior Vice President of Development&Management Services for Richfield Hospitality. Ms.Landgraf brings more than 15 years of senior management experience in real estate development as well as hotel operations and sales and marketing for international hotel companies. Ms. Landgraf has an extensive background with a strong emphasis on growth and an impressive track record in closing third-party management contracts. In addition,her expertise in creating value and helping investors and owners with immediate solutions for the unprecedented challenges and opportunities of distressed assets is an excellent fit with today's economic environment and Richfield's strategic vision. Ms.Landgraf was previously with Sage Hospitality,where she served as Vice President of Management Services and eusiness Deveiopment. During her tenure there,she secured multiple third-party management contracts while improving the profitability for a diverse spectrum of properties. She has been recognized as a top sales producer and has held various executive positions with Intercontinental Hotels Group,Starwood Hotels and Resorts Woridwide,inc.,Concorde international Hotels,and Kimpton Hotel and Restaurant Group in both hotel operations and business development roles. Her drive,motivation and desire to exceed expectations have made her an invaluable resource to owners and investors alike. Ms.Landgraf is a graduate of Regis University with a Bachelor of Arts Degree in eusiness Management. _ _ _ ____. _._ _. _ _ _ ___ _ _ Lee Rossiter joined Richfield in 1999,and is responsible for all aspects of finance,information technology and purchasing for the company.His direct oversight includes the departments of Property Accounting, ,,s, Information 7echnology,Corporate Accounting and Purchasing. These departments are responsibie for the accurate and timely production of financial statements,reiated information systems and purchasing processes for all of Richfield's hotels. He works directly with owners and reviews property financial � performance,budgets and cash flows. As part of the Executive Team,Mr.Rossiter works ciosely with his fellow executives in evaluating potential acquisitions. Mr.Rossiter's career has been devoted to the hospitality industry. He has previously held positions in full service properties as Controller and General Manager for Stouffer and Renaissance Hotels.Mr.Rossiter received his B.S.in Hotel Administration from University of Southern New Hampshire and is an active member of Hospitality Financial and Technology Professionals. _ __._... ____ Richfield Hospitality�Proprietary&Confidential � Corporate Overview �A�gust 2013 Shannon Dierenbach joined Richfield in 2000,and is today our Vice President of Human Resources and Risk Management. Ms.Dierenbach oversees aIl aspeds of Human Resources including recruitment and selection,training,compensation and benefits,payroll,and employee awards. Ms.Dierenbach also manages the Risk Management division which provides insurance placement and loss control services at discounted pricing for hotel owners. During Ms.Dierenbach's tenure she has spearheaded several initiatives which have resulted in im�raved performance and cost reduttian including;leadership training,selettion progreme,and payrali strategies.Before joining Richfield,Ms.Dierenbach held various Human Resources positions with Hyatt Hotels&Resorts where she was recognized with several top performance awards. Ms.Dierenbach began her hospitality career with Four Seasons Hotels in various operations positions. Ms.Dierenbach is SPHR certified,and hold her Bachelor of Science degree in Psychology with Honors,from the University of Massachusetts,Amherst. She is also a Board Member of the AHLA HR Committee Counsel. � As Senior Vice President for Richfield Hospitality,Allen Kramme oversees hotel operations and sales for the Richfield portfolio. He is responsible for executing operational strategies to enhance performance r_ results. With over 30-years of experience with leading brands and management companies,his goal is to help facilitate the aggressive growth Richfieid envisions during the coming years. � Prior to joining Richfieid,Mr.Kramme served as a hotel industry consultant and project manager,most recently providing asset management services for St.Regis Deer Valley in Park City,Utah,a Richfield asset-managed hotel. A veteran general manager,Mr.Kramme has experience opening,operating and repositioning fuil-service hotels across the country. Before launching his consultancy,he held general manager and regional positions with Starwood Hotels&Resorts Worldwide,Interstate Hotels&Resorts and Hyatt Hotels and Resorts. He holds a bachelors degree from Corneil University. Will Loughran is Senior Vice President of Sales and Revenue Management. In this capacity he leads the revenue management and eCommerce discipline on behalf of Sceptre and properties within the Richfield '-� Hospitality portfolio of hotels. He is responsible for the revenue management discipline and related staff `' throughout the organization where he oversees all related activities and eCommerce strategies that balance financial objectives to maximize total revenues at each property. Mr.Loughran and his team are accountable for leading pricing,positioning and inventory of all hotels along with necessary processes associated with demand,revenue,inventory,forecasting and opportunity analysis. A hotel veteran,Mr.Loughran has held top-line sales,operations,revenue,positioning and stretegic leadership positions. With 17 years at Marriott and five years at Sage Hospitaliry,he has delivered excellent results and leadership.He has a proven track record of transforming sales and revenue cultures,and his unique ability to recognize and create opportunities deliver results in hotel and company performance. In previous roies with Marriott International and various properties throughout the country,Mr.Loughran's experience includes leading cluster teams,creation of the First Market Sales Organizations for Marriott,and a range of property-level sales,marketing and revenue management responsibilities. He serves in several professionai hospitality organizations such as HSMAI,and he holds an MBA from Tulane University with an undergraduate degree from Colorado State University. Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 . . � . . . � . For over twenty years, Sceptre continues to exceed hotel expectations by connecting reservations, capturing customer engagement, converting bookings, providing top-line revenue growth, and increasing bottom-line profitability results. Sceptre Hospitality Resources helps hotels maximize revenues through six core suites of synergistic services designed to capture demand from all available channels and convert interest to bookings. These services focus on delivering top-line revenues through the following categories: r ' SCEPTRE HOSPITALITY RESQURCES � , �� c iF H wtvcaat� � whft��x'�asrdLet)s ::;��notes HateiTQ �;:> } , ... . � windwrl�r - F�I N X ,Mx*.a,,tut!�r ye?uks; W _ . ,.. RESERVFiTiC)N5 7ECHNOLOGY AND CONNECTIVITY Next-generation technology and connedivity Sceptre new central reservation system Windsurfer CRS ("Sceptre CRS") is easy to use and has the rich features and functionalities necessary to support delivering to the requirements of today's complex channels.Sceptre's team has hands-on working knowledge of the system and can facilitate your hotel's team navigation of the system quickly and easily, applying best practices thus saving time and achieving richer results. Sceptre's team monitors and evaluates technology platforms and tools frequently to ensure we are delivering the functionalities required for our hotel partners to be efficient and competitive. Sceptre CRS is continuously being enhanced to support your hotels to be ahead of the curve with the best technology available to perform successfully in the ever changing competitive environment. Sceptre Windsurfer CRS Sceptre CRS is the industry's most flexible and easy-to-use web-based central reservation and distribution management system technology. It provides user-friendly property-level controls and enables distribution through all channels including Global Distribution Systems (GDS), online third- party travel websites,call centers,and hotel websites. Global Distribution Systems To maximize hotel visibility and connectivity,Sceptre easily links to all Global Distribution Systems such as Sabre,Galileo,Worldspan,and Amadeus,as well as independent distribution systems(third party websites)by utilizing Sceptre CRS technology. Electronic GDS is a growing channel that can produce substantial revenue benefits. Direct Connect offers hotels supplementary electronic distribution to additional revenue- generating markets by enabling Sceptre CRS integration with third-party websites and eliminating separate extranets. _. _ _ _ _ _._ __ __ _ Rich�eld Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 Dynamic Booking Engine Our premier booking engine, gives hotel operators complete control of the booking engine design, an intuitive interface, merchandising flexibility, and a powerful packaging engine. This top performing booking engine enables user performance with an intuitive interface, merchandising flexibility, a powerful packaging tool, and overall engine design management. Hoteliers prefer simple, user-friendly dynamic booking engine software, and Sceptre is ready to meet that demand with advanced booking technology. Benefits of the Dynamic Booking Engine include: Marketing Flexibility Merchandise your hotel by choosing the layout and design that best markets your property, total pricing that displays specific breakdown of rates throughout the shopping process, promotional pricing that displays percentage discounts and free- night stay offers. With turn off/on functionality,colors,formatting to incorporate your property's website branding elements, an integrated image gallery, and it's available in 19 languages with full translations that can be customized by your hotels allows you to align your marketing needs. Strategic User Interface that improves conversions A fast, simple and interactive interface with an easy 3-step booking process that is proven to be effective. The interface orients guests to quickly move from inquiry to booking with intuitive fields and searching capability. Guests can also filter results based on several variables as well as sort or modify searches without having to reload or navigate back. Dynamic Packaging that Increases Revenue per Booking With dynamic packaging, consumers can buy pre-built packages and select specific components to create truly dynamic packages that increase your revenue per booking. These packages are easily customizable and allow for flexible pricing displays for flat charges or pre stay, night or per person charges. Also included is the functionality to allow for appointments to be made for specific times. The Sceptre Mobile Platform The mobile booking platform is a segment that continues to grow in recent years. Sceptre is ready with our proprietary mobile platform software that can reach, capture, and track mobile-generated revenue opportunities.0ur focus on technology and emerging consumer trends enables Sceptre to capitalize on new channels and new bookers who demand Sceptre's expertise in this growing sector. Property Connect Reservation Integration Sceptre's Property Connect keeps hotel connectivity integrated and simply managed. Property Connect enables Sceptre CRS to operate as a single source for reservation data while ensuring all hotel systems are collectively working together for efficient integrated performance. Property Connect enables a hotel to transfer reservations and data seamlessly across the CRS and other systems including PMS, Revenue Management System (RMS),CRM programs,and guest loyalty programs. Sceptre's team in-depth experience in hotel sales and marketing, together with expertise in reservations technology, and voice services is able to deliver an effective solution while leveraging advanced reservation technology and website marketing to enable your hotel to capture more market share and increase your top-line revenue. Richfield Hospitality�Proprietary&Confidentia] � Corporate Overview �August 2013 INNQVATIVE CRS TECHNOLOGY We understand need for robust reservation services and technology to support hotel management of the online distribution and reservations of your property. Sceptre,with its latest reservation �_. W111C�SUt"�`E'1" platform;the Windsurfer CRS,is most qualified to be your marketing and distribution partner to successfully deliver the needs of your hotel in its expanded business environment. Windsurfer provides: • The latest and most innovative CRS technology • Advantages to being on a single chain code • True chain functionality • Easy reporting&above-store management - Includes dynamic applications • Ability to upsell ITINERARY- Bf��KiNG CAPLISILITY �� Our CRS allows for the sale of products or services that are add-ons to a room booking. Whiteboard Labs is currently working on enhancing this functionality to take one step further in the coming months (feature expected to be available in June) by allowing these "add-ons" to be �' � inventoried as opposed to free-sell only. This allows our CRS users to generate revenue by ` upselling services or products relevant to a guest stay regardless of whether those products and - services are offered directly by the property or by a third-party vendor. In addition to that � enhancement, the support of"itinerary bookings" is also in the development release plan for the end of 2012. Under the enhanced itinerary functionality, a guest will be able to not only book activities tied to a room booking,or multiple hotel bookings, but also activities not tied to a room. We welcome the opportunity to work with your hotel to ensure that your specific needs are inciuded in our development plan as it progresses. With our premier booking engine, we can also give you complete control of the booking engine design,or work with you to customize a unique booking experience for your guests. ��,��� 11VTEEtNET MARKETING SERV1CfS Our customized internet marketing services will include a web 2.0 dynamic website with search engine optimization (SEO),to improve awareness and capture online bookings. Sceptre can build a fully-optimized website developed as per industry best practices that will include: • Premium Content Management System(CMS)tool - Next generation,multi-function CMS - Automated content push to social media profiles and mobile site - Ability to add new content pages on the fly - Special offers manager - Featured special promo tile manager - Interactive event calendar manager Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 • - eRFP manager(meetings/weddings/groups) - Press room manager - PDF upioader - Ability for chain level website and property microsites REVENUE MANAGEMENT SERVICES � SCEPTRE RE�Ehii � As fhe induSfry exp��tS in revenue, race, cf5�nnel, and consortia management, we know how to ,,_ - engage these functions to create unique revenue opportunities that positively and directly impact � your RevPAR, R01, and profit flow through. Our services include assisting your hotel with the following: • Price and Inventory Strategies • Online channel visibility • Third Party Distribution channel strategies • Search Engine Optimization • Online Reputation Management • Branded Promotions VOICE SERVICES Sceptre provides a highiy customized call center service powered by our partners at ThingS. Based thing5 on your hotels attributes, we can suggest services that Sceptre can provide for your voice reservation needs. These services include: • Property-level customization - Detailed Property profile - Local area attractions - Specific booking packages - Cross-property booking opportunities - Multiple caii types • Multipie toll free or DID numbers to track • Different marketing sources and different call types • Ticketing platform with escalation tiers and notification systems • Booking Reports by location and in aggregate • Overflow,Seasonal and After Hours service HOTELiQ BUSINESS INTELLIGENCE Hotel L� With Sceptre's advanced decision science system, HoteIIQ Business Intelligence, your hotel can � capture your performance statistics using measurements and metrics unique to our platform. Using various data source systems, Sceptre combines business science with hotel management. This tool can assit in the way you make strategy decsions for operations, revenue management, and sales&markerting,its features include: Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 • Forecasted&historical performance measurement • Configurable dashboards • Scalable to properties,portfolios and brands • Statistical analyst benchmarked to industry best practices �r�'H tVl�1fV�1��1'�dl��v� SpaLinx, the web-based enterprise spa management and distribution service system would be �' t�I N X �deai for any hotel spa, by providing an easy to use interface, customers have the ability to book online appointments.The platform offers an integrated system capable of providing customizable: • Spa descriptions • Length of service • Price options The system also displays real-time reporting, allowing you to view month-to-date sales, appointments remaining in the month, most profitable service, top customers and which employee is generating the most sales. VISUAL COMMUNICATIONS We can help market any hotel with MotionNotes, Sceptre's interactive communications and : ` 3° '".�1111�IOteS�� analytics platform that will allow your property to create, distribute and track personalized media �� ����� � "� messages. Our digital communications platform allows you to send rich multi-media messages including photo galleries,YouTube videos and documents. We recommend using this platform for reservations and sales,such as: • Responding to customer inquiries with video brochures and other attachments • Sending reservation confirmations • Providing potential clients with proposais and contracts and track their receipt and usage • Engage guests by delivering virtual postcards with custom media. Richfield Hospitality�Proprietary&Confidential � Corporate Overview �August 2013 ' Richfield Hospitality,Inc. 7600 East Orchard Road,Suite 230 South Greenwood Village,CO 80111 (303)220-2000 . This response is confidential and proprietary. The content of this materia!is confidential and proprietary to Richfield Hospitality,[nc.,and may not 6e reproduced,disclosed,distributed,or used without the express permission of an authorized representative of Richfield. Facts and figures are provided without representation or warranty and are subject to change without notice,and were deemed correct at the time of printing or submission. Richfieid Hospitality,[nc,is not responsible for misrepresentation,errors or omissions. �O 2013 Richfield Hospitality,lnc. All rights reserved. Richfield Hospitality�Proprietary&Confidential � Corporate Overview �AugUst 2013 �� r'�� , �; . , � I . � - i I ' ' ':� � .,__,�,.,_, 1� y � �'."t`� � 1� � ���' rj: �� !:_ ti i R�, � � � ' k�, _ � ,, � ,,' ;� r � �� ,i t'-l=� �� � �;��►�, , J ��. ,ll,�/ � _��,� rii�� 1,; � ,�,� l.!i, . _ � �, .i _�..�:.;�''�i� ,r ' ��?� ��: �i � . !' "71 'i � � �� ��- �� ��j,; L '�i ';� �� I � ;. � ,�, ;.._ �:r� • -�;� 4i - . ��� '� � i", r'� rii � � -�� �� --� , �. , ..r.:�__ i �� • �=� �iil�� , � �I�;_ '`tl ,•�� ���, • ,�, �i�ir • , ,,,; t • �._��_ I_ � ��. i1� ' ' �,��� ���`� \\\`� ' *�� :�� i� �� ; e. ,� � ! �--- ��� � ��� • '' � � � - 1 • � ' -_ �r . ► � � , � , _.., ,,a : . �,� _._.- . ��8�& �. � i � , ; , � i '.� r r � � . _ , , ..s�� Cli.�l ,�G � n�,� , � �I� �� F�i SYi F -., � � , ����. � A ' A k i�g�.1 7'� k� � p��I �y�R� [ � ` t � #, ry � v .�+� . ��..— � `� '� -��" ��* = ���;� r . M ��� � ` � �A x:�i.��� '_•'s.,"r V e' '1��{ ' �' ! �. ���_�I � � �:`.iil/' . � ;�I�f� , I'I I � - iiii � � S 1 ��l' 'I � i�_ '�� :r-�- 1�� �- ��� � r�� � :: �1 - - `., v,n. .., . . � � . #i' . .}"r� .. .. - � — T • _� ' ::.,�,� �`�,�: i C: tie;,�, �i. .,:., E � � � _.»�r .� , �,�, "-_�'-`"` ! • ��� ._, - . i i'� ; _" , iy' v/� ,� : ��� , �:� . �, = � _ s. � ��� �� j ,�.�+.� � i � � . ;I � � .�. I � ' ' . � 1 : � `i� - �:� �r �- i_ ` ` 1 � � , F' (tit 1 ? i :t� ,¢ ,J�. Q�R : . � �, , �-�. ti�.. - � i ,, . � k`'� � .S,-.. 7� ;. � a 1 � � 4'`� f , .^�'` ' ' ( _... :- �' 6 � � �'� � � ��� ���� � ,ril`�; rc; - �,�A ��fi { s � , � s z _ � ..��� � _ �� �µ _ _.� r �3 =� ,.; . � - `� t� '•• � ____.� _W ___ , 1 _ . � � � �� ��� � 0 N " t , � M , —�,,,�� � W __ _._-_""-- "` -', s'' � z _ - � �,:. _ � j;� w :_ . _..,_ ,-, _ _ _ _ � ^� . � , �.,��H��.. �.,, ,�.�.� ��;�, . .,��„e � �,�; � � ", i _ ' H � , � � � � I __. f' '� � z ,,, Y �� --- h, . .y `i V � ,.1; J `� , � a� ..� �m� �� W � .. . . _ W � � , � . � � '' , �_ '� � o � .i v � `� _�__._� � � � � ac � I � --- _ -�:, ;I � ,-___._____ ;' o � ,� __---- a ili g i O � � � i � 4 � 1 � � , � �_ � � ����'i'��1 ��,�� ',�� y i � � `� i c.— ' u'" ,.s, � '� i � ' 4 i 1 1 .�1� m'�.,,_ � � y . i ' , i � � ._' ��l 4„� �9,,,�"..:I � ti �i � _ -' �__ � -- � 1 � � 4,tl 1 � ; �; �1�,__ ua � i I � --- O v ' _I - - � _ � , , _ -� - �, ��, o w �:--.; ---� -�.,{, \ uWi w � i , � � i� � , '� Q � ,: � � � �� �� d � �� J ;f �i' ti _--- W Q i , �- '"��`�" 1 ', i � i x.- _ -� � , A � � . . � ,,;, , ` , ; . _ .__ __ — . � `�.��. � � n r'r'`�y � �1 _.._ _ .. _. r . t°' - � o i ' �� , - t ° � �i , ' w. , �' . ,�. �',.—_ � �1 _�- �/ � - ..,.,,ti....��. '� ~ �1 i , � D , ��_ . I! � 1J _.� � �p r �,� 4 � z� : ��� , � � L -�'��- ' °` � � � ,�- ��� �, ;, � � - .�-�� �.. i , `� � �,' . i '' 9 l� ! � � i � i.$ I�� V< ��.� �� ` 1' ( I � (� � ,. �--� ;�, I �� , ; , �,,, � � r � —�` � � ' 1 �; � t`. � - � � i W � ��+ • i � Z � � �-� '�`� .I � � ' i I '�'� ' i H �ti � ��,��� ! ; I t/1 � �; ' � a ._ � �. - , �, � W � , � �- � , ! ! ; _ �' � ..---- � , , < <� � ' H ,+ iy , -- i � � �� � �� --�-- � ._., ���e' 1 Z 'f` V . -r, � � � Z - , � ` I� Y_ � ' - r �. O _ ,.,, o , ' J � �� � � ' W - '� � - . � -- • _. _- ; _" . `, - ��� '"" '.� ' ' ��' _ � ��*���: � � �, � .�� � ., .. _ ._ .� _ _ ; .. , � _ : _. , �°� . ;� o ` " - ,. t`^_ r + -'_ ` � �. I� ' FW- � � _' _' �C � --- L�y 0 � •. a ��' '� _ i� ��Y�� Q �; � � __�-- n ����y_ � �_. � �` W � �"� � j � t''1 � °'�, � 3�' ''� ,� � - . �:t �'• ' �`` ,� �`;.'�' ' � �,; � y� �� WL � r Q , � . • U _ _ , �`� � ,� � �° ' _ � ,�• .�� , �.�=. 0 � �-�, w ,.�,�,� � W �n ��fi15 `����` - = Q o ,-�--------` -�d-.�. '� d � ;�- j 'q� °� ��c`. + ���_ W Q y, �'� � d �,�'t -��`�� A_______` -� - �f '� - _ ��� _— , � . -..� I �" � �i �,A� U'^ ' Q�s 2� � R I I O< ; �' a �- �„ w�' � Z� . � W,n �� U< � __—..__». -- � j i ------ --.._.....! i i ! I i ! ������ �U � � _ I W Z � , � I W Z � ��,�,d, J CC � ' �! � ' �� 1i Y ��� ?^ � �� a � � �.���p J ;� _ . ��� : z �-- ''�� i o � Q �� _� ' � z .��� � �� - ' --.. � � 1 1.. y.�... � � �... _ �^f �—_� 1 �����'�' 1 � '� �__ � Z _� ; � o �� , � o � � J �.�� __ � � � �� � � > ,\�,` ; . � ' ` J F— Q s, _ � � � ��'��, O u�i ,_ -��. N W � �� _ Q o , ,h� a � __ '� J Q _ _ W d ; U"- Q�K ZF - � . �t11ZIQ NI�'.L1�I120RT !tlOQ�HS o< � a Q ,�- � _ Z�` �� ; "_ �'" `�n' W. ��� .;` ;' � �, _ ��, �. �i, � ' _�. -�- -- -- -�`�`�=���-� - - --- = I _ _ �' � : i r;l , rg � � , � I I � � o �, � ��,'i i Y � `�. ��' I � A� I ''/ ' - ! � :� �I,I �j �� �� � \�' /' ��� � .� - - i� ��' ;�� � 1?' � �� ,��I -i> :s,�=� � LL�1-� 4 rt�R ' � �-�"� � F= �,""„��,Rar,nila��-----_� o ( �- � '�-� ��C'� � N N F- � � �_ /�`--. � �T� '� � � t- �:;�d � � � � w a � //� r +tr_,I � � v�i � �'� � �� � I � � � I � '� i �� I ' � � �� � � � � F � � F _ ___ ��� �) � ; F -❑ � z �I, t_ � �_ -�� Q i _ _ ----�____=---�- � �� a � � , a� ; —t � —1 � ?� O � T �.T�� � r��-- _ __ _ 1 �*� LL � �� � 1 � o i �� ; � ���. Z I ' � ( � � �/ O � � (� � I � � � ��_ 1 C7 y ` � I f . .u \ I� � �� �� ' � • - {'�� 1 �.� � � ) I __ � � �.f �:(la , -Y�Y- I�`�^`;; � � � � � � � � �� . � � ,r,l � � 1 � � � � ���i _ .� , �� �i � � -�� � �;,� -- � ��� .� .. _ ' Y� -- 2 - �.. O � � II;� �, � �� -, �I,�'`. J ir W I ' �� � � Q � � U � - - - - - / � � 0 W I / ' I N � i � � I a � I J J Wa I I I II