Clarendon Hotel, Phoenix Sold to Ben Bethel

50 Additional Rooms, Rooftop Meeting/Event Space with Retractable Roof, and Rooftop Bar/Restaurant P

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. October 14, 2008

PHOENIX, AZ, December 11, 2006. It's with great pleasure that we announce the completion of the purchase of the Clarendon Hotel from my business partner, and the commencement of a $3M renovation project.

We have some exciting things planned for the Clarendon, including a rooftop bar and restaurant that will not be leased out. Instead we are in process of forming a team of outstanding individuals who will operate the restaurant, to be opened in fall of 2007. We are already working with structural engineers to build 6,000 sqft of rooftop meeting space with soaring 25' ceilings and auto-dimming Sage Glass that will surround the space to provide stunning views of the Phoenix skyline and surrounding mountain ranges and amazing Arizona sunsets. This space will also have a portion of the roof that will open to the Arizona sky, providing dinner and dancing under the stars while the breeze causes the Swarovski chandeliers to sparkle - perfect for corporate events, weddings, bar mitzvahs, and quinceaneras. If all goes well, this space will also open in Fall 2007. We also have begun work on a new entrance and landscaping plan, which should be completely finished by January 4th.

Our next 50 rooms will be a notch above the existing Clarendon rooms, called "Executive Junior Suites" they will cater to our primary guests: the business traveler. The mood will be clean, upscale, modern, and comfortable. Artwork is already in process from up-and-coming Arizona artists and will be a main feature of the guest rooms. Bathrooms will be completely remodeled. These rooms will be finished and turned over by the contractor no later than January 31st - talk about fast turnaround! It's only been a few days and they have all demolition complete and are starting on the window replacement, paint, drywall, and bathrooms.

Next summer, we plan on renovating the existing 56 rooms to be on par with these rooms. However the 31 one-bedroom suites will retain an 'edge' to satisfy the next largest segment of travelers: the entertainment industry. In 2006 we've already hosted Aerosmith, Black Eyed Peas, The Rolling Stones, Benny Medina, MTV, HGTV, Travel Channel, and many more groups. In just our second year of operations, we're quickly becoming the host hotel for several stadiums, arenas and local theaters.