Goldstone Luxury Extended Stay Proposal

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Goldstone Luxury Extended Stay Proposal Table of Content

Title page - pg 1 Table of Content -pg 2 Overview -pg 3 External Rendering - pg 4 Entrance Rendering - pg 5 Atrium Rendering - pg 6 Internal Rendering - pg 7 Lobby Plans - pg 8 Floor Plans- pg 9 Roof Plans- pg 10 Double Room Plan- pg 11 • • • • • • • • • • • King Size Room Plan- pg 12 Room Elements - pg 13-14 Amenities Program - pg 15 24 hour Gym - pg 16 Restaurant Elements - pg 17 Private Dinning Room - pg 18 Pro Forma - pg 19-21 List of 30 Cities for Goldstone - pg 22 Map of 30 Cities for Goldstone- pg 23 Team Members - pg 24-30 Strategic Partners - pg 31-37 2

Goldstone Luxury Extended Stay Proposal Overview

A new concept in luxury, extended stay urban hotels for people who want the best in extended stay experience. Goldstone Luxury Extended Stay will present an immediately different context from the standard hotel model. All living spaces are set up to accommodate the traveler who is on an extended stay. Each room unit will feature luxury amenities, large open areas and even a small high end kitchen. Combined with furnishing and equipment for the most demanding standards and full service. Goldstone Luxury Extended Stay Hotels room will be like staying in the luxury guest house of a friend. Goldstone Luxury Extended Stay will be located in emerging, cutting edge areas of important cities. Public areas will reinforce the luxury look and incorporate a first class restaurant and exciting bar. The exterior will have the look of a luxury residential building. All great hotel brands are performance art. They provide not just a bed but an opportunity to participate in a bit of a fantasy. The Goldstone Luxury Extended Stay product will be aimed at the top of the market and will have room rates competitive with the best hotels in town. The Goldstone Luxury Extended Stay demographic group being targeted is between 30 to 60. The Focus will be on guests who are able to afford the experience they want and demand services. The hotels will offer 5 star amenities including 24 hour room service, state of the art business center, gym and extraordinary concierge services.

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Goldstone Luxury Extended Stay Proposal External Rendering

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Goldstone Luxury Extended Stay Proposal Entrance Rendering

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Goldstone Luxury Extended Stay Proposal Atrium Rendering

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Goldstone Luxury Extended Stay Proposal Internal Rendering

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Goldstone Luxury Extended Stay Proposal Lobby Plans

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Goldstone Luxury Extended Stay Proposal Floor Plans

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Goldstone Luxury Extended Stay Proposal Roof Plans

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Goldstone Luxury Extended Stay Proposal Double Queen Room Plan

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Goldstone Luxury Extended Stay Proposal King Room Plan

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Goldstone Luxury Extended Stay Proposal Room Elements

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Goldstone Luxury Extended Stay Proposal Room Elements

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Goldstone Luxury Extended Stay Proposal Amenities Programs

• • • • • • 24 hour Room Service Private Dinning Catering Private Dinning Room Four Star restaurant for breakfast, lunch and dinner with a lounge component as well. VIP Assistant In Room Amenities: – Totally wired smart rooms – Big screen TV – Door card receiving lights, air conditioning, drapes shades, dimmer switches for lights from bedside •Rooftop Lounge •Outside Deck •Low Carbon Footprint Model •Upscale Bathroom Fixtures •Internet TV •Anti-theft Warning System •Same Day Laundry Service •Video Conference System •24 hour Self-service key Access •Business Center with VIP Assistant •24 hour gym with Sauna, Steam and Jacuzzi 15

Goldstone Luxury Extended Stay Proposal 24 Hour Gym

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Goldstone Luxury Extended Stay Proposal Restaurant Elements

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Goldstone Luxury Extended Stay Proposal Private Dinning Room

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Goldstone Luxury Extended Stay Proposal Pro Forma

Destination Hotel Partners Goldstone Luxury Extended Stay 5 Year Pro Forma Closing and Construction Costs Land Purchase 6,000,000 Closing Bank Fees Mortgage Recording Taxes Legal Fees Feasibility Study Title Insurance Prepaid Exp Environmental Phase I Accounting/Audit Broker Fee Total Closing Costs 2.0% 2.80% 0.9% 0% 520,729 729,021 50,000 25,000 54,000 0 40,000 50,000 0 1,468,750 Soft Costs Arch Interior Design Engineering Expeditor Entitlements / Permits / Zoning Consultant Construction Manager Developer Fee Insurance Pre-opening Expenses Interest Reserve(avg balance $9.0M at avg int rate of 10%) Working Capital Contingency Total Soft Costs Hard Costs New Construction FF&E Contingency Total Hard Costs&FFE Total Closing, Hard and Soft Costs 2.0% of Hard Costs 1.0% of Hard Costs 0.5% of Hard Costs 2.0% of Hard Costs 7.0% of Hard Costs $1,000 per room $2,000 per room 5.0% 484,000 242,000 121,000 20,000 50,000 484,000 1,694,000 150,000 92,000 1,562,188 184,000 254,159 5,337,347 $275 SF 88,000 $20,000 per room 5.0% 24,200,000 1,840,000 1,210,000 27,250,000 34,056,097

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Destination Hotel Partners Global Cities Five Year Development and Operating Pro Forma

No. of rooms Rooms available Rooms sold Occupancy % Average Rate Hotel

Revenues Total Revenues Departmental Expenses Total Departmental Expenses Operating Department Income Undistributed Operating Expenses Total Undistributed Operating Expenses Gross Operating Profit Restaurant /OFFICE Lease Total Fixed Expenses Total Fixed Expenses Cash flow before Debt Service

Goldstone Luxury Extended Stay Proposal Pro Forma

Rooms Telecom Other Income All amounts U.S. $ x 1,000

Year 1 $

92 33,580 23,506 70.0% $429

% Year 2 $

92 33,580 24,178 72.0% $455

% Year 3 $

92 33,580 24,849 74.0% $482

% Year 4 $

92 33,580 25,521 76.0% $511

% Year 5 $

92 33,580 26,192 78.0% $542

%

10,084 47 50

10,181

99.0% 0.5% 0.5%

100.0%

10,995 48 99.1% 0.4% 53 0.5%

11,095 100.0%

11,978 50 99.1% 0.4% 55 0.5%

12,083 100.0%

13,040 51 99.2% 0.4% 58 0.4%

13,149 100.0%

14,186 52 99.2% 0.4% 61 0.4%

14,299 100.0%

Rooms Telecom Other Income Administrative & General Marketing Repairs & Maintenance Heat, Light & Power Franchise Fees Asset Management Fee Management Fees Insurance Land Lease Real Estate Tax Reserve for capital replacements 1,513 47 13

1,572 8,609

15.0% 100.0% 25.0%

15.4% 84.6%

2,639

2,700

24.0% 48 100.0% 13 25.0%

24.3% 8,395 75.7%

2,755

2,818

23.0% 50 100.0% 14 25.0%

23.3% 9,264 76.7%

2,869

2,934

22.0% 51 100.0% 14 25.0%

22.3% 10,214 77.7%

3,121

3,188

22.0% 52 100.0% 15 25.0%

22.3% 11,111 77.7%

611 407 305 305 407 204

2,036 6,573

1,105 7,678 305 60 0 1,833 204

2,402 5,276

6.0% 4.0% 3.0% 3.0% 4.0% 2.0%

22.0% 64.6%

3.0% 0.6% 0.0% 18.0% 2.0%

23.6%

721 222 333 3 444 222

1,723 6,672

1,105 7,777 333 66 0 777 333

1,508 6,269

6.5% 2.0% 3.0% 3.0% 4.0% 2.0%

18.5% 60.1%

3.0% 0.6% 0.0% 7.0% 3.0%

13.6%

725 242 362 362 483 242

2,175 7,089

1,105 8,194 362 73 0 846 483

1,764 6,430

6.0% 2.0% 3.0% 3.0% 4.0% 2.0%

18.0% 58.7%

3.0% 0.6% 0.0% 7.0% 4.0%

14.6%

789 263 394 394 526 263

2,367 7,848

1,138 8,986 6.0% 2.0% 3.0% 3.0% 4.0% 2.0%

18.0% 59.7%

394 80 0 920 526

1,921 7,065

3.0% 0.6% 0.0% 7.0% 4.0%

14.6%

858 286 429 429 572 286

2,574 8,537

1,172 9,709 6.0% 2.0% 3.0% 3.0% 4.0% 2.0%

18.0% 59.7%

429 88 0 1,001 572

2,090 7,619

3.0% 0.6% 0.0% 7.0% 4.0%

14.6%

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Financing Closing, Hard & Soft Costs Land purchase Total Cost Funding Requirment Rate Term Debt Equity Debt Service at Year 1 All amounts U.S. $ x 1,000 Equity Cash Flow before Debt Service Perm. Debt Service Sale at End of 5th Year Loan Balance at end of 5th Year Cash Inflows/Outflows DSCR IRR (Leveraged)

Goldstone Luxury Extended Stay Proposal Pro Forma

Per Room 34,056,097 6,000,000 40,056,097 40,056,097 6.0% 25 65% 26,036,463 35% 14,019,634 2,036,747 Cap Rate 9% Construction 0 5,276 6,269 Operations Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 -14,020 6,430 7,065 0 -2,037 -2,037 -2,037 -2,037 7,619 -2,037 84,659 -14,020 0 3,239 4,232 4,394 5,028 -23,415 66,827 2.59

3.08

3.16

3.47

3.74

40.26%

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Goldstone Luxury Extended Stay Proposal List of 30 Global Cities

1. New York 2. Boston 3. Washington DC 4. Miami 5. Chicago 6. Toronto 7. New Orleans 8. Austin 9. Vancouver 10. San Francisco 11. Los Angeles 12. Shanghai 13. Beijing 14. Hong Kong 15. Singapore 16. Sydney 17. London 18. Paris 19. Berlin 20. Rome 21. Amsterdam 22. Barcelona 23. Sao Paulo 24. Tokyo 25. Dubai 26. Tel Aviv 27. Seoul 28. Oslo 29. Copenhagen 30. St. Petersburg 22

Goldstone Luxury Extended Stay Proposal Global Map of 30 Cities

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Goldstone Luxury Extended Stay Proposal Team Members

President And CEO of Destination Hotel Partners, LLC a global hotel development company specializing in hotels, resorts, and mixed-use development. Vice Chairman CEO of China Topsun Hotels International Group Ltd., a Chinese based joint venture hotel development company. Vice Chairman CEO of Goldstone Hospitality Group LLC, a New York based joint venture hotel development company.

Destination Hotel Partners, LLC,

James Bates has a long and successful track record in the hospitality industry for over 35 years. His innovative and dynamic approach to building brands, developing new product and executing excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels and Resorts, Helmsley Hotels, Boutique Hotels & Resorts International as well as several independent properties and projects.

James C. Bates, President & CEO

Mr. Bates began his career in Beverly Hills, California at the Beverly Hills Hotel, Beverly Wilshire Hotel, and The Beverly Hilton Hotel. James Bates has served on several advisory boards including: Travel Industry Association of America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best Western International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE We Love New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing Association International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates has served on numerous Convention and Visitors Bureaus Boards of Directors and advisory boards worldwide; and has participated on numerous panels and guest speaking engagements worldwide including NAFEO Conference, Nixon Peabody IPED Conference and White House Initiative on HCBU’s, and Shangri La Asia Conference.

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Goldstone Luxury Extended Stay Proposal Team Members

Goldstone Hospitality Group LLC, Seth Weinstein Co-Chairman

Mr. Weinstein has developed millions of square feet of office, residential, and hotel properties through his Connecticut based company Hannah Real Estate Investors. He is also the principal owner of Lanesborough Partners. Lanesborough's mission is to assist its clients by creating strategic partnerships and introducing equity and debt capital for acquisition, development, repositioning and recapitalization. Lanesborough maintains offices in New York, Palm Beach and London.

Mr. Weinstein began his career with International Property Counselors in 1978, serving a clientele of European investors seeking to acquire New York real estate. Shortly thereafter, he formed Lexington Development Group in Manhattan with Scandinavian investors. Mr. Weinstein served as President and then Chairman of Lexington, actively managed the company's success through innovative development projects from Vermont to Florida. In 1995, Mr. Weinstein co-founded Clearview Investment Management to pursue opportunities in the Connecticut marketplace. As Principal of Clearview, he acquired the waterfront Greenwich Harbor Inn and transformed it into the Delamar Hotel and L'Escale restaurant. The hotel was voted one of the best new hotels in the world.

Mr. Weinstein holds a degree from Columbia University, where he received the John Jay Cross memorial prize for economic research. He was elected to the Columbia College senior society of Sachems and Phi Beta Kappa and graduated with honors Summa Cum Laude.

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Goldstone Luxury Extended Stay Proposal Team Members

Robert Friedman

Mr. Friedman has over twenty years of experience in capital formation and real estate finance. He was a Managing Director at Bankers Capital Realty Advisors in New York, a commercial real estate firm which specializes in placing debt and equity on behalf of developers, owners and operators of substantial properties and has arranged several billion dollars of financing since its inception. Mr. Friedman held a senior role on the international finance desk at Oppenheimer & Co in New York and began his career with Paramount Capital after graduating from Yale University's School of Management with an MBA in finance.

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Goldstone Luxury Extended Stay Proposal Team Members

Patrick Parsons

Patrick Parsons has over 15 years experience in the Chinese real estate market, widely recognized as one of the first true western developers in Beijing. He has over 10 years experience working with Beijing’s Tier 1 Chinese developers, and has built strong relationships with Chinese government officials. With in-depth experience in research, marketing, sales, construction and development. Instrumental in major apartment and office projects ,including villa complexes, five star hotels, retail and mixed-use projects up to 1 million square meters in size. Worked with and consulted for some of Beijing’s largest real estate developers Over the years his main focus has been in the retail and hospitality industry. He has developed some of the most renown retail and mixed development projects in Northern China varying from the top of the market with Ritz Carlton and brands such as Chanel and Gucci as well as mass market developments with 4 star Hotels and brands such as Zara and H & M. He has been a pioneer in lots of these projects 27

Thomas Campiglia Architect

Goldstone Luxury Extended Stay Proposal Team Members

Mr. Campiglia is an established member of the American Institute of Architects, A fellow of the Frank Lloyd Wright Foundation, certified member of the National Architectural Review Board and is licensed to practice Architecture in New York, New Jersey, Connecticut and California. He has worked as a Senior Architect for the international firm of Ellerbe Becket Architects. He maintains his practice as President of TCA Architecture, a professional Architectural Administrative Practice in New York City. Currently Mr. Campiglia is a consultant to Destination Hotels Partners, LLC, Lawyers Inns LLC, Canyon / Agassi, Columbia University, EmblemHealth Insurance, Mercy College and Ann Taylor Corporation. He has extensive experience in both building renovation and new construction, and has developed designs for Beaver Creek Ski Resort in Colorado, Woodlands Inn in Houston Texas, Kiahuna Village in Kawai, Hawaii, Squaw Valley and various resorts.

Mr. Campiglia has received awards for his work with the New York City Center for Abused Children for the design of Brooklyn Children’s Advocacy Center, a Merit Award for the Museum of Santa Barbara Design Competition and recently received the Albert Meiniker Award for the design of a room for a child with spastic quadriplegia.

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Gary Jacobs

Goldstone Luxury Extended Stay Proposal Team Members

With 30 years of experience in operating and designing kitchens, bars, concessions and serveries across the country, in the Caribbean and Europe, Gary Jacobs has a long history of addressing both the pre- and post construction demands of all levels of foodservice operations. In designing a facility, he is as concerned with first cost, fit and flow as he is with durability, adaptability and ease of long term maintenance. With a long and distinguished list of clients that he has built over the years, Gary has been able to learn from the best, and has identified the elements common to all successful operations.

 Among the designers and architects he has collaborated with are Rockwell Group, Jeffrey Beers International, Bogdanow Partners, Ten Arquitectos, Costas Kondylis & Partners and Yabu Pushelberg.

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Allen Ostroff

Goldstone Luxury Extended Stay Proposal Team Members

Allen Ostroff has over 25 years of experience as the Managing Director of Prudential Insurance Company’s Realty Group and Prudential Securities where he provided a wealth of experience in structuring acquisitions, development, and asset and financial management. He created a $3.6 billion hotel equity portfolio and a $1 billion shopping center portfolio. 

 His expertise and successes in overseeing investments and operations in 4 5 star hotels representing 30,000 rooms and 175 restaurants adds significant management depth and focus on the core issues of control, efficiency, and value maximization. Mr. Ostroff knows the hotel business trade, having led the key due diligence process and financial structuring in over 200 acquisitions. Prior to joining Prudential, Mr. Ostroff served as the General Manager of the 2,000 plus room New York Hilton, Operations Manager at New York’s famed Waldorf Astoria, and Group Vice President of Americana Hotels.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

       Horwath HTL - Hospitality Consultant JP Morgan Chase - International Bank Ernst & Young - Accounting Norton Rose LLP- Legal Jacobs, Doland & Beer - Food Service Design Hotel Dynamics, LLC - Owners Representative Buy China Direct - FF& E Consultant 31

Goldstone Luxury Extended Stay Proposal Strategic Partners

Horwath HTL

Horwath HTL is the largest specialist consulting network in this sector, with 50 offices in 39 countries. Our unrivalled global reach is matched by a unique depth of knowledge and experience gained from thousands of projects over many years, in all kinds of economic climates.

We remain the number one choice for hotel and real estate companies, as well as financial institutions looking to invest in the industry. Whatever and wherever your project, we offer the reassurance of an internationally consistent quality of service combined with local solutions.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

JP Morgan Chase

JPMorgan Chase is one of the oldest financial institutions in the United States. With a history dating back over 200 years, here's where we stand today:       We are a leading global financial services firm with assets of $2.3 trillion.

We operate in more than 60 countries.

We have more than 240,000 employees.

We serve millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients.

We are a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.

Our stock is a component of the Dow Jones Industrial Average.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

Ernst & Young

Ernst & Young is a global leader in assaurance, tax, transactions, and advisory service. Our 167,000 people are united by our shared values, which inspire our people worldwide and guide them to do the right thing, and our commitment to quality, which is embedded in who we are and everything we do. Ernst & Young is committed to doing its part in building a better working world for our people, for our clients and for our communities.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

Norton Rose LLP

Norton Rose is a leading international legal practice. We offer a full business law service to many of the world’s pre-eminent financial institutions and corporations from offices in Europe, Asia, Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing how our clients’ businesses work and understanding what drives their industries is fundamental to us. Our lawyers share industry knowledge and sector expertise across borders, enabling us to support our clients anywhere in the world. We are strong in financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and pharmaceuticals and life sciences.

On June 1, 2013 Norton Rose will join forces with leading U.S. law firm Fulbright & Jaworski L.L.P. to form Norton Rose Fulbright. With 3800 lawyers and 54 offices, including 11 in the USA, Norton Rose Fulbright will be one of the largest global legal practices, with significant depth of expertise in the world’s leading business and financial centers.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

Jacobs, Doland &Beer Jacobs, Doland &Beer

is a New York City based foodservice design firm specializing in the planning and construction of all segments of commercial foodservice and hospitality venues, both across the U.S. and overseas.

Jacobs, Doland &Beer

specializes in developing back- and front- of house foodservice solutions. Since one cannot thrive without the other, we use an integrated approach to foodservice design to bring our clients’ concepts to life. We strive to meet our clients’ needs - timelines, budgets, foodservice program sustainability - without sacrificing the quality of the end result, whether designing retail operations or high throughput production kitchens. From initial concept development, through design and implementation,

Jacobs, Doland &Beer

design specialists work closely with owners, chefs, architects and engineers through all phases of new construction and renovation projects.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

Hotel Dynamics

Hotel Dynamics represents the hospitality industry's top experts in asset management, financing, owner's representation and construction management. Hotel Dynamics will strive to maximize the value of your asset and capital through extensive due diligence for acquisition, re-branding and repositioning, property renovation, new construction and asset management. 

 Our Team will bring unmatched expertise to all phases of the asset's lifecycle for a wide array of clients. The process starts with conducting due diligence that will enable asset owners to make the right acquisition or development decisions. We then transition our skills to managing the asset and formulating a plan to reposition the asset for long-term profitability. In the event that the repositioning decision includes any form of construction or brand PIP, we can seamlessly plan and implement the construction and renovations.

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Goldstone Luxury Extended Stay Proposal Strategic Partners

Buy China Direct

BCD is a multinational company based in Guangzhou, China with offices in US, Central America, and independent agents in South America, South Africa and Australia. Our company objective is to be the leading world wide building materials supply chain by providing factory direct materials straight to the developers' door steps at tremendous savings.

We specialize in interior finishes and decorative building materials ranging from kitchen cabinets, bathroom vanities, tubs, toilets, showers, taps and faucets, doors, windows, ceramic, porcelain, glass and stone tiles to wood flooring and other decorative essentials.

 We aim to give our clients the competitive advantage in todays ever difficult market by adding a global perspective and allowing small to mid size companies to order direct from the factories. We are your partners from the moment we start to work together. We provide manufacturing, sourcing, QC, CAD design and other logistic services direct to your doors step.

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