Preferred Hotel Group Expands in Asia Pacific with Four New Hotels

Commitment To Region Fosters Growth For Group's Three Brands; Boutique Brand Signs Charter Hotel In

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. October 14, 2008

CHICAGO, September 27, 2005. Preferred Hotel Group announces the addition of four hotels in the Asia Pacific region. These four new properties, which bring Preferred's regional total to seventeen, are: Azur in Queenstown, New Zealand; The Imperial Palace also in Seoul, Korea; starting January 1, 2006 The Shilla in Seoul, Korea; and, The Fullerton in Singapore. This expansion demonstrates the group's strong commitment to growth in the region and the efforts of the recently established dedicated management and sales team.

The addition of Azur is particularly significant as it also marks the group's first hotel in New Zealand and the region's first Boutique property. Launched earlier this year, the Boutique portfolio highlights uniquely memorable properties that emphasize distinctive design, service, and personality on a more intimate scale.

Azur, Queenstown, New Zealand -- Set in the alpine beauty of New Zealand, the resort's nine individual silver beech wood and stone villas all offer uninterrupted mountain and lake views with private terraces, fireplaces and rustic elegance and luxury. Guests can explore the magnificent natural surroundings with hiking, mountain biking, skiing, horseback riding, rafting and fishing all easily available.

Boutique complements Preferred Hotel Group's existing brands, including Preferred Hotels and Resorts, which consists of exceptional 5-star properties that cater to both business and leisure travelers. Located in the world's most desirable destinations, all Preferred Hotels meet the Preferred Standards of Excellence, a 1,600 point quality assurance assessment.

New to the Preferred Hotels & Resorts portfolio are:

The Fullerton, Singapore -- Housed in the 1928 Fullerton Building, The Fullerton Singapore's rich heritage and neo-classical architecture make it a masterpiece of understated comfort and elegance. Located in the heart of the financial and business district, this 400-room award-winning luxury hotel successfully blends the old and new to present unsurpassed world-class accommodation and warm, personalized service for business and leisure travelers alike. While The Fullerton has already joined Preferred, starting November 1, 2005, the hotel can be booked through Preferred Hotels & Resorts' GDS code PH.

The Shilla, Seoul, Korea -- Historically the home of Korea's official state visitors and high profile international figures, The Shilla blends traditional Korean hospitality with cutting-edge amenities. The hotel's 507 guest rooms provide spacious, luxurious and high-tech accommodations including innovations by parent company Samsung such as an automatic TV dimmer when the phone is answered, complimentary cellular phones and wireless high-speed Internet access. Thirteen meeting and conference rooms accommodate up to 1,500 people. Shopping arcade, Duty Free Shop and the L'institue de Guerlain SPA and La Clinique de Paris anti-aging clinic are on the premises to cater to distinguished guests for which The Shilla is renowned.

The Imperial Palace, Seoul, Korea -- The Imperial Palace Hotel offers highly-personalized service within a gracious European-style setting. Its magnificent collection of art and antiques is displayed throughout the hotel, with over 400 pieces of original art in the public areas while each guest room enjoys its own unique design elements.

"Preferred Hotel Group is honored and delighted to welcome these four hotels to its portfolio," said Mr. Ananya Narayan, Preferred Hotel Group's Area Managing Director. "We look forward to supporting them with increased sales and the recognition that our brand equity provides."