1 goldstone luxury extended stay proposal. 2 goldstone luxury extended stay proposal table of...

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Goldstone Luxury Extended Stay Proposal

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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

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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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External Rendering

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Entrance Rendering

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Atrium Rendering

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Internal Rendering

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Lobby Plans

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Floor Plans

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Roof Plans

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Double Queen Room Plan

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King Room Plan

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Room Elements

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Room Elements

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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

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24 Hour Gym

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Restaurant Elements

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Private Dinning Room

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Pro FormaDestination Hotel Partners

Closing and Construction Costs

Land Purchase 6,000,000

ClosingBank Fees 2.0% 520,729Mortgage Recording Taxes 2.80% 729,021Legal Fees 50,000Feasibility Study 25,000Title Insurance 0.9% 54,000Prepaid Exp 0Environmental Phase I 40,000Accounting/Audit 50,000Broker Fee 0% 0

Total Closing Costs 1,468,750

Soft CostsArch 2.0% of Hard Costs 484,000Interior Design 1.0% of Hard Costs 242,000Engineering 0.5% of Hard Costs 121,000Expeditor 20,000Entitlements / Permits / Zoning Consultant 50,000Construction Manager 2.0% of Hard Costs 484,000Developer Fee 7.0% of Hard Costs 1,694,000Insurance 150,000Pre-opening Expenses $1,000 per room 92,000Interest Reserve(avg balance $9.0M at avg int rate of 10%) 1,562,188Working Capital $2,000 per room 184,000Contingency 5.0% 254,159Total Soft Costs 5,337,347

Hard Costs SFNew Construction $275 88,000 24,200,000 FF&E $20,000 per room 1,840,000Contingency 5.0% 1,210,000Total Hard Costs&FFE 27,250,000

Total Closing, Hard and Soft Costs 34,056,097

Goldstone Luxury Extended Stay 5 Year Pro Forma

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Pro FormaDestination Hotel PartnersGlobal Cities Five Year Development and Operating Pro Forma All amounts U.S. $ x 1,000

Year 1 Year 2 Year 3 Year 4 Year 5

$ % $ % $ % $ % $ %No. of rooms 92 92 92 92 92Rooms available 33,580 33,580 33,580 33,580 33,580Rooms sold 23,506 24,178 24,849 25,521 26,192Occupancy % 70.0% 72.0% 74.0% 76.0% 78.0%Average Rate Hotel $429 $455 $482 $511 $542

RevenuesRooms 10,084 99.0% 10,995 99.1% 11,978 99.1% 13,040 99.2% 14,186 99.2%Telecom 47 0.5% 48 0.4% 50 0.4% 51 0.4% 52 0.4%Other Income 50 0.5% 53 0.5% 55 0.5% 58 0.4% 61 0.4%

Total Revenues 10,181 100.0% 11,095 100.0% 12,083 100.0% 13,149 100.0% 14,299 100.0%

Departmental ExpensesRooms 1,513 15.0% 2,639 24.0% 2,755 23.0% 2,869 22.0% 3,121 22.0%Telecom 47 100.0% 48 100.0% 50 100.0% 51 100.0% 52 100.0%Other Income 13 25.0% 13 25.0% 14 25.0% 14 25.0% 15 25.0%

Total Departmental Expenses 1,572 15.4% 2,700 24.3% 2,818 23.3% 2,934 22.3% 3,188 22.3%

Operating Department Income 8,609 84.6% 8,395 75.7% 9,264 76.7% 10,214 77.7% 11,111 77.7%

Undistributed Operating ExpensesAdministrative & General 611 6.0% 721 6.5% 725 6.0% 789 6.0% 858 6.0%Marketing 407 4.0% 222 2.0% 242 2.0% 263 2.0% 286 2.0%Repairs & Maintenance 305 3.0% 333 3.0% 362 3.0% 394 3.0% 429 3.0%Heat, Light & Power 305 3.0% 3 3.0% 362 3.0% 394 3.0% 429 3.0%Franchise Fees 407 4.0% 444 4.0% 483 4.0% 526 4.0% 572 4.0%Asset Management Fee 204 2.0% 222 2.0% 242 2.0% 263 2.0% 286 2.0%

Total Undistributed Operating Expenses 2,036 22.0% 1,723 18.5% 2,175 18.0% 2,367 18.0% 2,574 18.0%

Gross Operating Profit 6,573 64.6% 6,672 60.1% 7,089 58.7% 7,848 59.7% 8,537 59.7%Restaurant /OFFICE Lease 1,105 1,105 1,105 1,138 1,172Total 7,678 7,777 8,194 8,986 9,709Fixed Expenses

Management Fees 305 3.0% 333 3.0% 362 3.0% 394 3.0% 429 3.0%Insurance 60 0.6% 66 0.6% 73 0.6% 80 0.6% 88 0.6%Land Lease 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Real Estate Tax 1,833 18.0% 777 7.0% 846 7.0% 920 7.0% 1,001 7.0%Reserve for capital replacements 204 2.0% 333 3.0% 483 4.0% 526 4.0% 572 4.0%

Total Fixed Expenses 2,402 23.6% 1,508 13.6% 1,764 14.6% 1,921 14.6% 2,090 14.6% Cash flow before Debt Service 5,276 6,269 6,430 7,065 7,619

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Pro Forma

Financing Per RoomClosing, Hard & Soft Costs 34,056,097Land purchase 6,000,000Total Cost 40,056,097Funding Requirment 40,056,097Rate 6.0%Term 25 Debt 65% 26,036,463 Equity 35% 14,019,634Debt Service at Year 1 2,036,747

All amounts U.S. $ x 1,000 Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5Equity -14,020Cash Flow before Debt Service 5,276 6,269 6,430 7,065 7,619Perm. Debt Service 0 0 -2,037 -2,037 -2,037 -2,037 -2,037Sale at End of 5th Year Cap Rate 9% 84,659Loan Balance at end of 5th Year -23,415Cash Inflows/Outflows -14,020 0 3,239 4,232 4,394 5,028 66,827

DSCR 2.59 3.08 3.16 3.47 3.74

IRR (Leveraged) 40.26%

Construction Operations

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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

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Global Map of 30 Cities

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Team MembersPresident 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.

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.

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.

Destination Hotel Partners, LLC,

James C. Bates, President & CEO

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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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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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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

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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.


Team Members

Thomas Campiglia Architect

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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.

Gary Jacobs

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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.

Allen J. OstroffAllen Ostroff

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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

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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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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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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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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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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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Strategic PartnersHotel 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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Strategic PartnersBuy 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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