Desert Sun ResortPalm Springs, CA

KW Commercial – Professional Realty Group

70-005 Mirage Cove DriveRancho Mirage, CA

BRE# 01417409

Richard DeCarloCall/ Text 760-578-1466

Fax 760-770-9510rcdecarlo@msn.com

BRE# 00513791

Kenneth WilliamsCall/ Text 760-413-4376

Fax 760-770-9510KennethWilliams@kw.com

BRE# 01886412

Desert Sun Resort

TABLE OF CONTENTS

Executive Summary______________3Investment Highlights____________4Property Details_________________5Courtyard Rooms________________6Location_______________________7Market Overview________________8Location Overview_______________9Resort Map____________________10Disclaimer_____________________11

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

EXECUTIVE SUMMARYINVESTMENT OVERVIEW

The Professional Realty Group of KW Commercial has been retained as the exclusive real estate broker to represent and offer for sale the Desert Sun Resort, a fee simple property consisting of 33 guestrooms situated on 2 lots totaling approximately 1.67 acres and identified as Assessor Parcel Number’s (APN) 507-024-020 and 507-024-025. Desert Sun Resort also has an exclusive condo rental pool to add to their 33 rooms.

The Desert Sun Resort is the premier adult-only clothes free travel destination in the world today. DSR is set on multiple acres of beautifully landscaped grounds behind secluded gates, with endless views in the heart of Palm Springs, California. This resort is truly a one of a kind Mediterranean style resort that has access to three heated pools, two heated Jacuzzi's, lighted tennis court, full spa, restaurant, and large grassy areas to relax. USA Today called the Desert Sun Resort “The jewel in the crown of nudist resorts”.

While the Desert Sun Resort has the charm of a small secluded inn, it has the luxury amenities of a full-service resort. It is one grand resort that flows seamlessly from romantic courtyards through rivers and waterfalls. What looks like a walled-in, austere complex from Indian Canyon Drive is actually a resort filled with rolling, plush green lawns surrounded by beautiful Olive trees and Palm trees placed between the endless streams, water features, and pools throughout the resort grounds. When walking around the grounds all five of your senses are engaged constantly.

You can lounge, eat and play tennis – all in the nude. It’s a retreat. Get away from your job, the real world, and to just escape. Affluent people from all over the world choose to enjoy their vacation at Desert Sun Resort and DSR has more repeat guests’ visits than any other hotel in Palm Springs. This nudist retreat, which has 33 rooms and access to 59 condos, is one of the most exclusive and celebrated properties in Palm Springs and is an integral part to the Palm Springs tourist community.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

ADR of $200 & Rising

Minimal Local & Worldwide Competition

Freestanding Spa Facility with Three Dedicated Treatment Rooms

Full Restaurant / Bar with Seating for 60 Guests

Full Liquor License

Over Eleven Sources of Revenue other than Room Reservations

Experienced Staff

Steady Growth Year After Year

Great Reputation with Guests

Can Run Efficiently without a Hands-On Owner

Room for Expansion

Solar - 170 Panels Paid in Full and Covered with Warranty

Free and Clear Property Deed

INVESTMENT HIGHLIGHTS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

PROPERTY DETAILSAddress 1533 N Chaparral, Palm Springs, CA

County Riverside County

Parcel Number 507-024-020, 507-024-025

Ownership Interest

Fee Simple

# of Rooms 33 Guest Rooms

Year DSR Began:

Years Established:

2008

25 Years

Site Area Hotel / Office / Café : 9,900 SFCourtyard: 4,990 SFSpa: 1,000 SFTotal Grounds: 1.67 Acres

Franchise Independent Boutique Hotel

Floors/ Layout 3 separate buildings, One being 2 story.

Facilities & Amenities

- 33 Guest Rooms plus additional Condo Rental Pool- Spa with 3 Treatment Rooms and a Reception Area- 24/7 Front Desk- Gift Shop that sells Perishable and Non-perishable

items- Restaurant with Seating for 60- Bar with Full Liquor License- 2 Pools and 1 Jacuzzi- Lighted Tennis Court- Exercise Room- 2 Firepit Relaxation Areas

Equipment: Everything is owned outright with no leases on equipment

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

Courtyard Rooms

Rediscover the Golden Age of Palm Springs’ classic glamour.Relax where every room is unique in its shape and designreflecting the classical style and elegance of 1950’s PalmSprings and evoking the era of a private movie star hide-awaycomplete with a secluded garden patio setting with terracotta tiles.The Courtyard features 11 exclusive rooms and suites nestledin an intimate Spanish-style courtyard and features Mid-Century Modern Design. These rooms were taken out ofservice in 2016 and the owner performed a complete rebuildon all 11 units and large gym. The rooms now consist ofmodern furniture with clean lines that appeals to every guest,while also improving the guests’ comfort level with whisperquiet mini-split units. Since putting them back into servicethese rooms are by far the most popular rooms at the resort.They offer seclusion from the rest of the resort grounds witha private courtyard, but yet are steps away from all of theactivities at the Oasis Café, quiet pool, jacuzzi, tennis court,and activity pool.

Courtyard rooms start at $220 a night and are the first roomsto sell out.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

PLAT MAP (WITH A TWIST)

MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

Rich in history and blessed with gorgeous weather, 354 days a year, Palm Springs isa preferred destination of travelers from all over the world. Nestled at the base ofthe San Jacinto Mountains, Palm Springs is known for its crystal blue skies, year-round sunshine, stunning landscape, palm tree lined streets and starry nights.

A new 2018 study commissioned by the Greater Palm Springs Convention and

Visitors Bureau (CVB) is showing growth in the local tourism industry. According to

the study, visitor spending in Greater Palm Springs has increased 10 percent in the

last two years, to $5.5 billion, and one in every four jobs is sustained by the

tourism industry. Among the study’s other findings included:

- Lodging revenue surged 15 percent over 2015, and room demand grew by 6

percent.

- Tourism in Greater Palm Springs generated $1 billion in tax revenues in 2017.

- Just over 1 million passengers came through Palm Springs International Airport

(PSP) in 2017, 12 percent more than in 2015, with international arrivals from

Canada accounting for an increasing share of the total.

Palm Springs is NEW again. The $400 million renovation of downtown is (nearly)

complete, and the changes are mega. The Downtown Project has been the key to

revitalizing the city with its mix of retail, restaurants, office space, and hotels with a

fresh face that plays on the city’s pristine midcentury architectural past. Palm

Springs retains the small-town, village atmosphere from the 1920s while still

becoming the new 21st century hotspot.

LOCATION OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has not verified this information. Buyer must verify the information and bears all risk for any inaccuracies.

Palm Springs, California lies on the western edge of the Coachella Valley, within theColorado Desert. Located approximately 110 miles southeast of Los Angeles and 140miles northeast of San Diego, it’s an easy two-hour drive. The permanent year-roundpopulation is about 45,000, and doubles during the winter season.With sun-kissed weather and drop-dead gorgeous scenery, it’s no wonder Palm Springsis like no place else and a comeback as Hollywood’s playground with a growing nightlife,burgeoning art scene and edgy vibe.

Climate and Geography

Palm Springs has more than 350 days of sunshine with less than 5 inches of rain peryear. Winter temperatures average in the 70’s with nights in the mid-40’s. The drydesert heat of summer pushes daytime temperatures into the 100’s, which is enjoyedby sun seekers from around the globe, especially nudists. With warm days and balmynights, the ambiance is positively seductive. It is the most perfect location for nudiststhan anywhere on the globe with more revenue producing days than even fully-clothedhotels in Palm Springs.

The geography of Palm Springs is what creates the famed warm, dry climate. At 487feet above sea level, Palm Springs is sheltered by the Little San Bernardino Mountainsto the north, the Santa Rosa Mountains on the south, and the San Jacinto Mountains tothe west.

Local Events

Palm Springs’ tourism continues with double digit increases. It could be the surge ofsuper hip (and becoming super large) events like the Palm Springs International FilmFestival, Modernism Week, and Coachella and Stagecoach Music Festivals.

Airports

Traveling to Palm Springs is easier than ever thanks to their newly renovated PalmSprings International Airport (PSP), located just minutes from downtown Palm Springsand the Convention Center. The airport is served by numerous carriers from majorcities.

As an alternative, visitors may choose to fly in to Ontario International Airport (ONT),located approximately 70 miles west of the Palm Springs Convention Center in thecenter of Southern California. It is a medium hub, full-service airport with commercialjet service to major U.S. cities and through service to many international destinations.

Los Angeles International Airport (LAX) offers the greatest airline options andschedules. Just a 1.5 hour drive to Palm Springs, this can be a nice choice for travelerswho would also like to include Los Angeles in their itinerary.

Condo Rental Pool

Condo Rental Pool

DISCLAIMER

This Confidential Investment Offering Memorandum (“Memorandum”), which is intended solely for your limited use and benefit indetermining whether you desire to express any further interest in participating in the acquisition of the Desert Sun Resort “Property/Hotel” in Palm Springs, CA. By accepting this memorandum, the recipient agrees to comply strictly with the terms and conditions ofthis Confidentiality Agreement previously executed and delivered to KW Commercial – P.R.G. by the Recipient with respect to thismemorandum and all information contained herein, and to use this memorandum only for the purpose of evaluating the offeringmade hereby.

This Memorandum was prepared by KW Commercial – P.R.G. and has been reviewed by the Owner. It contains select informationpertaining to the Property and does not purport to be all- inclusive or to contain all of the information , which prospective investorsmay desire. This information has been secured from sources we believe to be reliable, but we make no representations or warranties,expressed or implied as to the accuracy of the information. References to square footage or age are approximate. Broker has notverified this information. Buyer must verify the information and bears all risk for any inaccuracies.

More detailed information and an opportunity to inspect material related to the Property will be made available to interested andqualified prospective investors. Neither the Owner nor KW Commercial – P.R.G. nor any of their respective officers have made anyrepresentation or warranty , expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents,and no legal commitments or obligations shall arise by reason of this memorandum or its contents. The Agent, Owner, and theManager reserve the right to engage in discussions or negotiations with one or more recipients or other perspective investors at anytime without notification to, or other obligation to, any other Recipient or prospective investor. The offering is subject to change interms or termination without notice.

The Agent reserves the right to require the return of this Memorandum and any other material provided to the Recipient at any time.Photocopying or other duplication of the Investment Offering Memorandum in part or entirety is not authorized.