COMPANY PROFILE

Lighthouse Lodging Group was formed in 2007 by several experienced hotel industry executives and is lead by its principal officers:

• Michael D. Cryan – President and Chief Operating Officer
• Brian Alonge – Executive Vice President and Chief Financial Officer
• James Kerrigan – Senior Vice President, Director of Operations
• Mark Goeman – Senior Vice President, Sales & Marketing

At Lighthouse our goal is to maximize the financial returns for our partners on their investments by aligning our interests with theirs, ensure that our guests expectations are met in a warm and friendly environment and provide a rewarding experience for our employees.

Lighthouse is a hotel management company which specializes in upscale and upper upscale full service hotels as well as upscale limited service and extended stay hotels. The Company through its officers has over 75 years of experience with most of the American brands including Marriott, Hilton, Starwood and Intercontinental operating within these segments. Several of the Company’s officers and employees have served on brand advisory councils and on committees charged with the responsibility to review new and revised brand standards.

The Lighthouse team works with private equity sources and REIT’s which invest part or all of their funds in hotel projects. Lighthouse provides a full range of services for these investors including identification of hotels for acquisition, evaluating future operating performance, establishing purchase price, conducting due diligence, arranging financing and providing management upon acquisition.

Lighthouse is able to identify appropriate target hotels for its partners due to the Company’s close relationship with an extensive network of brokers who specialize in hotel real estate. These relationships have been established with the principal officers over many years based on their track record in closing deals including 17 hotels with a value in excess of $400 million in the last three years. Similarly the relationship of the Company’s officers with several large lending institutions and its track record for performance has led to over $1.0 billion in financing proceeds over the last several years and allows the company to continue to arrange loans on deals even in the most difficult times.

The hotel management services offered by Lighthouse are guided by the background and focus of the principals as owner/ managers of hotel real estate balancing the needs of the guests with the needs of the ownership. Lighthouse employs an aggressive revenue management strategy that is designed to maximize revenues taking into consideration all external and competitive factors. Each hotel’s management team is given the tools to understand the demands in its market and consultation to understand how to best position the hotel against its competition. The company will also utilize staffing guides based on the size and services of each hotel and cost controls to insure that the hotel provides an excellent stay for each guest but at an efficient cost which will produce above average returns to the owner.

On a selective basis Lighthouse will partner in the development of a hotel either as a stand alone project or as part of a mixed use project. Lighthouse will provide consulting services to include the determination of the appropriate size of the project in terms of room type and count, number and layout of meeting rooms, number and size of food and beverage outlets and other amenities such as pool, health club and spa facilities. The Company will work with the development team to choose an appropriate brand and will assist in negotiating the franchise agreement and will assure that the project is built in compliance with brand standards. Lighthouse will develop the Marketing and Sales Plan for the hotel and will execute all of the necessary pre-opening activities including hiring and training employees and initiating the sales and reservations functions.

The Company has extensive experience consulting on the design and development of a timeframe and budget for renovation projects. This can include renovations which are required upon completion of an acquisition or in concert with a change of brands which will require cooperation with the brand in determining the scope of the renovation, in addition to the periodic renovations required by all hotels to ensure they remain competitive in their market and in compliance with changing brand standards.

Lighthouse has developed a compensation strategy that will provide a balance of fee for services provided with a promote structure that will not burden the early operating results with a significant fee; in exchange it will allow Lighthouse to share in the long term capital gains for hotel assets it helps to acquire. The particular structure will vary depending on the size and complexity of the deal and the criteria of the equity partner in the deal. Eventually as the Company matures it will begin to co-invest with its partners in both acquisitions and development projects.

Lighthouse’s strategy is based on the recognition that long term success in the hotel business requires the satisfaction of three key constituencies: investors, guests and employees. Each has a different and at times a conflicting list of needs and wants but understanding and balancing those needs is critical at every stage of our engagement. We have in the past and intend in the future to design a compensation program to recognize the contributions of our employees and to reward them for achieving the balanced results that we consider critical to our success. We maintain this balance in the tools we use to measure the performance of our hotels based on both customer and brand feedback as well as on financial results.

“We at Lighthouse strive to provide the best experience for our guests and our employees while delivering maximum returns to our owners.” – Michael D Cryan