515 Madison Ave 22nd floor New York, NY 10022www.desthotels.com

Hospital Lodging Systems, LLC

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Table of Content

• Title page - pg 1• Table of content -pg 2• Overview -pg 3 -4• External Rendering - pg 5• Internal Rendering - pg 6• Room Rendering- pg 7• Why HLS pg- 8• HLS Program- pg 9• HLS Benefits to the Hospital - pg 10• Green Hospital Design- pg 11• Our Green Elements will focus around- pg 12• Amenities Programs- pg 13

• 24 hour Gym- pg 14

• Restaurant- pg 15

• Flower Shop- pg 16

• Pro Forma- pg 17-19

• List of 30 Cities for Hospital Lodging Systems - pg 20

• Map of 30 Cities for Hospital Lodging Systems- pg 21

• Team Members- pg 22-24

• Advantages of HLS Brand- pg 25

• Vision & Goals- pg 26

• Strategic Partners - pg 27-34

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• Hospital Lodging Systems, LLC is committed to being the leading hotel development organization specializing in development, construction and management of lodging systems featuring hotel like products for use in conjunction with hospital operations.

• HLS works in partnership with hospitals and functions as an integral part of their operation; allowing the hospital partner to fulfill their mission to the community

• Hospital Lodging Systems, LLC has a staff that includes professionals in development, construction administration, project management, asset management, operations, support services and lodging operations.

Overview

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We enter into an agreement with the hospital to set up a development entity.

We identify potential locations that are part of the Hospital complex. Very often air space over parking lots works best.

We design the product to integrate with and complement the operations of the hospital with special attention to maximizing billable charges.

We provide project financing.

We develop and build the physical plant.

We asset manage the facility over the long term.

OverviewConstituted as a New York based entity, we are a unique hospital lodging developer that focuses on creating lodging healthcare systems that are fully integrated with hospital operations. Our team of experts implement the development, financing and construction of lodging facilities as follows:

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Below Grade:Radiology & Physical Therapy

3Floors of Doctors Condominiums/Apartments at market rate – 1 & 2 bedroom units

4Floors of guest rooms – Kings, Queens, Double/Double Suites

4 Floors of outpatient care

facilities Ground floor, lobby:Doctor’s offices & Restaurants

External Rendering of an HLS/ Hospital Hotel

HLS

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Internal Rendering

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Room Rendering

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• Hospital Lodging Systems, LLC was created to assist hospitals in delivering services.

• As the need to be near a family member increases, so does the expending for traveling, lodging and medical care. HLS understands the mission of the hospital in caring for families.

• We at HLS are proactive in supporting hospital operations with daily lodging options. We understand the concept of expanding the health care product mix.

• Our company was built on a solid foundation, has the knowledge and expertise required to create a synergistic partnership with medical facilities.

Why HLS?

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• Hospital Lodging Systems, LLC has created a unique lodging development program that focuses on creating lodging systems that supports medical operations on hospital owned land and medical centers.

• There are 6,731 hospitals and medical centers throughout the United States of America.

• The development targets for the company is to enter into 20 agreements in the next five years.

HLS Program

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• Decreased length of stay as a “step-down” carealternative to acute care

• Physician rounds on patients outside clinical care facilities

• VIP hospital suites

• Post-op stays for surgical patients

• Family member stay

• Increased access to space for ancillary services and outpatient facilities

• Ability to add new service lines – wound care, PT, urgent care, etc.

• Improved lodging alternatives for physicians, residents, staff.

• Increased marketability and satisfaction for patients and families

• Meeting and restaurant space for pharmaceutical meetings to keep physicians on property

• Improved restaurant alternatives to daily visiting (local) families

• Improved marketability and visibility to thecommunity

• Helps to modernize the look and feel of hospital and grounds.

• Increased meeting space, potential draw for clinical meetings.

HLS Benefits to the Hospital

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HLS will provide green hotels for hospital campuses which offer flexibility in room layout, exceptional amenities and services for visitors, combined with environmentally sustainable building and operation practices. HLS is connected nationally accepted standard for green buildings. HLS provides innovative strategies for sustainable development, water savings, energy efficiency, materials selection and indoor environmental quality. Our designs start with understanding your site and its opportunities and constraints. This coupled with good day lighting practice and orientation provides your new building with extraordinary lighting during the day while reducing your energy costs. We have carefully put together green elements which will enhance your space and reduce your energy while providing healthier places for your guests. Our facilities will strive to reach LEED certification.

It is our intent to provide energy efficient and environmentally sustainable hotels. This will create a balance that fully explores ways in which to limit environmental impact and conserve energy in the design, construction and operation of our hotels and their amenities to provide a better and healthier place to work and live.

Green Hospital Design- Creating Balance

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Our Green Elements will focus around:

•More than 90% of the hotel interiors capture natural daylight and have access to outdoor views.•Reduce site disturbance by integrating buildings along existing topography.•Initiate a strong building envelope strategy to reduce energy demand, moisture penetration, mold and mildew.•Use regional vendors and artists for materials to reduce transportation and packaging.•Develop ways to reduce our carbon footprint by using renewable energy in the form of solar panels, geothermal heating & cooling and wind power.•Water conservation systems to include dual flush toilets, low flow water fixtures, waterless urinals in Men’s public restrooms, and native landscaping to requiring limited irrigation to reduce water demand by 30%.•Low VOC (Volatile Organic Compound) carpets and pads, paints, sealants and adhesives throughout facility.•Use 30% less energy than a conventional hotel by using high efficient materials and the latest construction technology.•Take advantage of abundant natural lighting with large energy-efficient operable windows which will bring in natural ventilation and provide a high level of indoor air quality (IAQ) by circulating large amounts of outside air into the guestrooms while employing energy recovery technology.•Use of recycled materials throughout facility.•Chemical free cleaning and laundry products.•Use of non-CFC producing refrigerants.•50% of construction waste will be reused or recycled.•Use of 100% organic products in the SPA.•Use of high performance lighting and controls to incorporate motion sensors and lighting sensors to reduce lighting, cut energy and reduce cooling requirements for all spaces.•Provide a program for the collection and storage of plastics, paper, cardboard, metal and glass recycling materials•Provide cool roofs to reduce heat islands and initiate rainwater recovery.•Become an “Educational Center” for sustainable practice for both guests and outreach programs.

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Hospital Lodging Systems Amenities Program

24 hour Room Service / Monitoring ServicesRestaurant for Breakfast, Lunch and DinnerLow Carbon Footprint Model Upscale Bathroom Fixtures Anti-theft Warning System24 hour gymFully Wired Lodging UnitsExpedited access to Hospital ServicesAccess to Home Care and Nursing SupportSuper- Sanitary Facilities Access to Physical Therapy

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Hospital Lodging Systems 24 hour Gym

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Hospital Lodging Systems Restaurant

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Hospital Lodging Systems Flower Gift Shop

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Typical ProjectClosing and Construction Costs All amounts U.S. $ x 1,000Land Purchase 985,000

ClosingBank Fees 2.0% 9,000,000 180,000Mortgage Recording Taxes 0Mortgage Transfer Tax 0Legal Fees 50,000Feasibility Study 10,000Title Insurance 0.2% 9,000,000 18,000Prepaid Exp 0Environmental Phase I 10,000Accounting/Audit 0Broker Fee 0

Total Closing Costs 268,000

Soft Costs Per SFArch 2.75% of Hard Costs 169,022Interior Design 2.75% of Hard Costs 169,022Engineering 0.5% of Hard Costs 30,731Expeditor 20,000Entitlements / Permits / Zoning Consultant 50,000Construction Manager 2.0% of Hard Costs 122,925Developer Fee 10.0% of Hard Costs 614,625Insurance 1.0% 9,000,000 90,000Pre-opening Expenses $1,000 per room 110,000Interest Reserve (avg balance $9.0M at avg int rate of 10%) 450,000Working Capital $2,000 per room 220,000Contingency 5.0% 102,316Total Soft Costs 2,148,641 $39.07

Hard Costs SF Per SFNew Construction $95 55,000 5,225,000FF&E $6,000 per room 660,000Contingency 5.0% 261,250Total Hard Costs 6,146,250 $111.75

Total Hard and Soft Costs 8,294,891 $150.82

Pro- Forma

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All amounts U.S. $ x 1,000

Year 1 Year 2 Year 3 Year 4 Year 5 $ % $ % $ % $ % $

No. of rooms 110 110 110 110 110Rooms available 40,150 40,150 40,150 40,150 40,150Rooms sold 27,704 28,105 28,507 28,908 29,310Occupancy % 69.0% 70.0% 71.0% 72.0% 73.0%Average Rate Hotel $149 $161 $169 $177 $186

RevenuesRooms 4,128 78.4% 4,523 77.7% 4,817 76.5% 5,129 76.8% 5,460Restauraunt Food & Beverage 1,032 19.6% 1,187 20.4% 1,365 21.7% 1,433 21.5% 1,505Telecom 55 1.1% 56 1.0% 57 0.9% 58 0.9% 59Other Income 50 0.9% 53 0.9% 55 0.9% 58 0.9% 61

Total Revenues 5,265 100.0% 5,818 100.0% 6,294 100.0% 6,677 100.0% 7,084

Departmental ExpensesRooms 826 20.0% 1,085 24.0% 1,108 23.0% 1,128 22.0% 1,201Restaurant Food & Beverage 774 75.0% 890 75.0% 1,024 75.0% 1,075 75.0% 1,128Telecom 55 100.0% 56 100.0% 57 100.0% 58 100.0% 59Other Income 13 25.0% 13 25.0% 14 25.0% 14 25.0% 15

Total Departmental Expenses 1,667 31.7% 2,045 35.1% 2,202 35.0% 2,275 34.1% 2,403

Operating Department Income 3,598 68.3% 3,773 64.9% 4,091 65.0% 4,402 65.9% 4,680

Undistributed Operating ExpensesAdministrative & General 316 6.0% 378 6.5% 378 6.0% 401 6.0% 425Marketing 105 2.0% 116 2.0% 126 2.0% 134 2.0% 142Repairs & Maintenance 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283Heat, Light & Power 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283Franchise Fees 211 4.0% 233 4.0% 252 4.0% 267 4.0% 283

Total Undistributed Operating Expenses 1,053 20.0% 1,193 20.5% 1,259 20.0% 1,335 20.0% 1,417

Gross Operating Profit 2,545 48.3% 2,581 44.4% 2,833 45.0% 3,067 45.9% 3,264

Fixed ExpensesManagement Fees 158 3.0% 175 3.0% 189 3.0% 200 3.0% 213Insurance 60 1.1% 66 1.1% 73 1.2% 80 1.2% 88Land Lease 1,050 19.9% 1,082 18.6% 1,114 17.7% 1,147 17.2% 1,182Real Estate Tax 81 1.5% 89 1.5% 98 1.6% 108 1.6% 119Reserve for capital replacements 105 2.0% 175 3.0% 252 4.0% 267 4.0% 283

Total Fixed Expenses 1,455 27.6% 1,586 27.3% 1,726 27.4% 1,803 27.0% 1,885

Cash flow before Debt Service 1,090 20.7% 995 17.1% 1,107 17.6% 1,264 18.9% 1,379

Pro- Forma

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Financing Per RoomPurchase Price (in millions) 985,000 8,955Closing, Hard & Soft Costs 8,401,552Total Purchase 9,386,552 85,332Rate 5.5%Term 25Debt 60% 5,631,931Equity for Purchase 40% 3,754,621Debt Service at Year 1 415,020

Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5Equity for Purchase -3,755Cash Flow before Debt Service 1,090 995 1,107 1,264 1,379Carrying Costs While Under Renovation

Insurance -60 -60Real Estate Taxes -81 -81

Debt Service 0 0 -415 -415 -415 -415 -415Sale at End of 5th Year Cap Rate 8% 17,239Loan Balance at end of 5th Year -5,028Cash Inflows/Outflows -3,896 -141 675 579 692 849 13,175

DCR 2.63 2.40 2.67 3.04 3.32IRR 29%

Pro- Forma

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30 top cities for Hospital Lodging Systems

1. New York2. Boston3. Washington DC4. Baltimore5. Newark6. Seattle 7. Las Vegas8. Austin9. Houston10. Dallas11. Los Angeles12. San Francisco13. Philadelphia 14. Phoenix15. Cleveland

16. Chicago 17. San Jose18. Detroit 19. Portland20. Atlanta21. Fort Lauderdale 22. Memphis23. Miami 24. Charlotte25. Nashville26. Milwaukee27. Denver28. St. Louis29. Cincinnati30. Kansas City

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US Map for Hospital Lodging Systems

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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 has been instrumental in the development of lodging systems in conjunction

with Beverly Hills Hotel, Beverly Wilshire 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.

Executive Team James C. Bates, Chairman

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Mr. Ostroff’s 25 years as Managing Director of Prudential Insurance Company’s Realty Group provides immense stability and a wealth of experience in structuring acquisitions, development, asset management and financial structuring. His expertise and successes in overseeing investments as well as operations in four and five star hotels –either wholly owned or in joint venture - representing 30,000 rooms and 175 restaurants, adds significant management depth to focus on the core issues of control, efficiency and delivering profits.

His profound knowledge of the hotel business allows him to lead the key due diligence process and financial structure in hundreds of acquisitions.

Prior to joining Prudential, Allen served as the General Manager of the 1,000 plus room New York Hilton, Operations Manager at New York’s famed Waldorf Astoria and Group Vice President of Americana Hotels. His expertise in hotel operations and strict control of cash promises the delivery of maximum cash flow from operations.

His professional affiliations include The American Hotel and Motel Association, New York University, Cornell University and the Culinary Institute of America.

Executive Team Allen J Ostroff – Hotel Dynamics

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Executive Team Thomas Campiglia - Architect

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, Emblem Health 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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Global Corporation is a single holding company for all of hospitality assets, including domestic and international hotel operations, hotel real estate ownership and timeshare. Global growth will continue to be driven through the development of both traditional and new products as well as extensive infrastructure, distribution networks and human resources talent.

Advantages of the HLS Brand

Investing in HLS leverages the expertise and resources of Global Hospitality. No other global hospitality company can offer a roadmap for growth this compelling. Developers will benefit from:

•Leading Edge Technology•Global Sales Force•Seating Area•Café and Seating Area•Central Reservations System•HLS Loyalty Program•Centralized Purchasing•Global Branding and Marketing

Hospital Lodging Systems

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• HLS’s vision is to be the world’s premier hospital lodging brand.

• We want to simplify our guests’ lives, and be one of the world’s leading diversified providers of travel-related products and services for business and individual consumers.

• HLS’s overriding goal: to be one of the world’s premier branded hotel-operating companies. With HLS as our base – we are becoming increasingly focused on serving the hospitality lodging segment of the hotel industry.

• Our underlying mission for our guests is provide a consistent level of hospital in hospital lodging sector.

• HLS’s core values: valuing our people, valuing our customers, valuing respect, valuing integrity, valuing accountability and valuing communication.

HLS Lodging

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Horwath HTL - Hospitality Consultant

JP Morgan Chase - International Bank

Ernst & Young – Accounting

Norton Rose Fulbright - Legal

Jacobs, Doland & Beer - Food Service Design

Hotel Dynamics, LLC - Owners Representative Buy China Direct - FF& E Consultant

Strategic Partners

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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.

Strategic PartnersHorwath HTL

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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.

Strategic PartnersJP Morgan Chase

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Ernst & Young is a global leader in assurance, 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.

Strategic PartnersErnst & Young

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Norton Rose Fulbright has more than 3,800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

Strategic PartnersNorton Rose Fulbright

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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.

Strategic PartnersJacobs, Doland &Beer

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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, rebranding 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.

Strategic PartnersHotel Dynamics, LLC

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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 today's 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.

Strategic PartnersBuy China Direct

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