®

DYNAMIC TAILORED ACCOMPLISHED

TABLE OF CONTENTS

ABOUT US SIGNATURES CAPABILITIES BENEFITS & SERVICES ®

PROFILES RECOGNITION

ABOUT US

A

HISTORY

OF CREATING VALUE

A recognized innovative luxury hotel and resort operator, Classic Hotels & Resorts® has a proven track record of revenue enhancement and maximizing investment return. Our seasoned and imaginative management team possesses diverse skills, as well as the ability to create and preserve shareholder value. During the past 30 years we have developed, owned and managed luxury hotels and resort properties throughout the Western United States, including iconic independent hotels such as Arizona Biltmore, Arizona Grand Resort & Spa, The Inn at Laguna Beach and La Playa Carmel, as well as established brands including Sheraton, Marriott and Hilton. Classic Hotels & Resorts, the hospitality division of Grossman Company Properties, is located in Phoenix, Arizona.

SIGNATURES

EXPERTISE

TO MEET YOUR NEEDS

Classic Hotels & Resorts® offers proven management expertise resulting in superior and sustainable financial performance. HOTEL MANAGEMENT SERVICES

EXPERT MANAGEMENT TO MAINTAIN THE INDEPENDENT AND UNIQUE ATTRIBUTES OF EACH PROPERTY ADVANCED TECHNOLOGIES AND SYSTEMS FOR REVENUE MANAGEMENT AND FINANCIAL REPORTING

PROPERTY DEVELOPMENT

FINANCIAL & LENDING SERVICES

FLEXIBLE FEE STRUCTURES CAPITAL INVESTMENT AND PARTNERSHIP CAPABILITIES

ASSET MANAGEMENT & CONSULTING SERVICES

MEZZANINE & PARTICIPATING PREFERRED EQUITY LOANS DEBT RESTRUCTURING EXPERTISE

SIGNATURES

LEGACY OF

PREMIER

PROPERTIES

From historical landmarks to seaside retreats, our collection of properties, past and present:

HOTEL

SCALE

ARIZONA BILTMORE

LUXURY

ARIZONA GRAND RESORT & SPA

LUXURY

FIRESKY RESORT & SPA

LUXURY

HARVEST INN NAPA

LUXURY

LA PLAYA CARMEL

LUXURY

HOTEL CARMEL

UPSCALE

LAGUNA BEACH HOUSE

UPSCALE

MARRIOTT PARK CENTRAL

UPSCALE

PALIHOUSE SANTA MONICA

UPSCALE

SHERATON PARK CENTRAL

UPSCALE

THE INN AT LAGUNA BEACH

UPSCALE

HILTON GARDEN INN

MIDSCALE

MARRIOTT COURTYARD

MIDSCALE

SIGNATURES

RENOVATIONS AND REPOSITIONING ARIZONA BILTMORE RESORT & SPA • Improved EBITDA from negative $4M annually to $28M • Complete renovation of all Guest Rooms, Lobby and Restaurants • Developed new Conference Facilities and Spa • Developed 122 new Guest Rooms and 80 luxury Villas

ARIZONA GRAND RESORT & SPA • Repositioned and renamed the Resort and enhanced the guest experience • Developed 100 new luxury Villas • Completely renovated all 644 Guest Suites and Meeting Rooms • Constructed a new Resort Lobby, Lobby Grill, Pro Shop and Marketplace Café • Expanded the Conference Facilities and upgraded the Public Spaces

THE INN AT LAGUNA BEACH • Completely renovated the Guest Rooms, Meeting Rooms, Pool Area and Public Spaces • Ranked #1 in RevPAR and achieved over 100% of Market Penetration Index • Following the renovations, repositioned The Inn by elevating the service and guest experience • Highly ranked on Trip Advisor

SIGNATURES

RENOVATIONS AND REPOSITIONING LA PLAYA CARMEL • $3.5 million restoration completed in 2012 to refurbish all Guest Rooms, Suites and Public Spaces • Achieved $5.5 million profitability turnaround in the first 4 years of operation • Architectural Digest “The Six Must Go Places for the Perfect Weekend Getaway”

LAGUNA BEACH HOUSE • $1.5 million renovation completed in 2015 • Improved RevPAR ranking from #5 in comp set to #2 in 2015 • The Los Angeles Times, September 2015 “Reader Recommendations”

HOTEL CARMEL • Opened in April, 2016 following a $2.6 million hotel renovation • Completely renovated the free-standing restaurant and bar • Achieved a 100% improvement in RevPAR within the first 5 months of operation • Outstanding Trip Advisor ranking after market entry • Architectural Digest, July 2016 “The Best Hotel Along Pacific Coast Highway”

A

CAPABILITIES

DYNAMIC

COMBINATION OF SKILLS AND EXPERIENCE

CLASSIC HOTELS & RESORTS® A recognized leader with a proven track record and decades of experience in all aspects of hotel management, operations and financing from limited service properties to luxury resorts.

Classic Hotels & Resorts® offers the full complement of hospitality disciplines led by experts in their field. These capabilities can be tailored to specific needs or offered as an integrated service.

CLASSIC HOTELS & RESORTS®

CENTRAL RESERVATIONS

REVENUE MANAGEMENT

SALES DEVELOPMENT

DESIGN & CONSTRUCTION

HUMAN RESOURCES & TRAINING

FINANCE

MEDIA & COMMUNITY RELATIONS

INTERNET & E-COMMERCE

INFORMATION TECHNOLOGY

OPERATIONS SYSTEMS & MANAGEMENT

CAPABILITIES

REVENUE MAXIMIZATION OPTIMUM REVENUE DELIVERY WEBSITE AND E-COMMERCE OPTIMIZATION MONTH END REPORTING PACKAGE DATABASE ANALYSIS CENTRAL RESERVATIONS CAPABILITIES NATIONAL AND REGIONAL SALES RELATIONSHIPS

SALES & MARKETING

ENTREPRENEURIAL AND OWNERCENTRIC APPROACH

PUBLIC RELATIONS

TRANSIENT & GROUP SALES

REVENUE MANAGEMENT

RESERVATIONS

E-COMMERCE

CAPABILITIES

DEVELOPMENTS & INVESTMENTS

PROPERTY

#KEYS

INVESTMENT

COST/KEY

SCOPE

ARIZONA GRAND RESORT & SPA

744 $52,000,000

$69,000

RENOVATED/EXPANDED

ARIZONA BILTMORE

730 $60,000,000

$82,000

RENOVATED/EXPANDED

SHERATON PARK CENTRAL

600

$100,000

NEW CONSTRUCTION

MARRIOTT PARK CENTRAL

400 $40,000,000

$100,000

RENOVATED

FIRESKY RESORT & SPA

204 $13,000,000

$63,725

RENOVATION IN PROGRESS

MARRIOTT COURTYARD

156

$12,000,000

$77,000

NEW CONSTRUCTION

HILTON GARDEN INN

100

$ 9,200,000

$92,000

NEW CONSTRUCTION

HARVEST INN NAPA

78

$ 7,000,000

N/A

MEZZANINE LOAN

LA PLAYA CARMEL

75

$ 3,500,000

$46,500

RENOVATED

THE INN AT LAGUNA BEACH

70

$ 2,000,000

$29,000

RENOVATED

PALIHOUSE SANTA MONICA

38

$ 3,250,000

N/A

MEZZANINE LOAN

LAGUNA BEACH HOUSE

36

$ 1,500,000

$41,670

RENOVATED

HOTEL CARMEL

27

$ 2,500,000

$92,590

RENOVATED

TOTAL

$60,000,000

3,258 $265,950,000

$81,381

ARIZONA BILTMORE

CAPABILITIES

CASE STUDY PHOENIX, AZ

THE OPPORTUNITY • C  lassic Hotels & Resorts® purchases 70 year old Frank Lloyd Wright-inspired 730-room resort in 1992 and undertakes a $60 million renovation, including the addition of 122 units and 80 Villas. • C  lassic Hotels & Resorts re-launches Arizona Biltmore in 1994. • Improvements garner national media attention: º New York Times, Architectural Digest and Travel & Leisure Magazine º Urban Land Institute Heritage Award for Excellence • Classic Hotels & Resorts sells Arizona Biltmore for $362 million in 2000. • D  uring the period in which Classic Hotels & Resorts owned and operated the hotel, revenue increased 77% and EBITDA improved from negative $4 million annually to $28 million annually. THE INVESTMENT Acquisition Closed: Acquisition Price: Re-development Cost: Sale Closed: Sale Price:

June 1992 $62 million ($85,000/key) $60 million ($82,000/key) March 2000 $362 million

LA PLAYA CARMEL

CAPABILITIES

CASE STUDY

CARMEL, CA

THE OPPORTUNITY • C  lassic Hotels & Resorts® purchases the 106 year old 75-room La Playa Hotel in late 2011 and undertakes a $3.5 million restoration project to refurbish all guest rooms, suites and public space. • C  losed during the extensive renovation, the hotel reopens as La Playa Carmel in July of 2012. • The restoration garners national media attention: º “ The new owners took a straightforward approach that puts tradition ahead of bling; they didn’t try to fix what wasn’t broken.” – San Francisco Chronicle º “Do stay at the 75-room La Playa Carmel to see how a 2012 renovation has changed a century-old community favorite.” – The Los Angeles Times º “ With dramatic views of the Pacific from cozy rooms that have every modern amenity, yet maintain the ambiance of the hotel’s historic roots, La Playa, once a private residence, is, in a word, charming.” – Coast Magazine • W  ithin the first 4 years of operation, the hotel achieves a $5.5 million turnaround in profitability, and garners the highest room revenues in the property’s history. THE INVESTMENT Acquisition Closed: Acquisition Price: Restoration Cost:

November 2011 $18 million ($240,000/key) $3.5 million ($47,000/key)

LAGUNA BEACH HOUSE

CAPABILITIES

CASE STUDY LAGUNA BEACH, CA

THE OPPORTUNITY • Classic Hotels & Resorts® purchases the 36-room Laguna Cliffs Inn in May 2014 and undertakes a $1.5 million renovation of all guest rooms and public spaces including the pool area, lobby and the addition of a meeting room. • P  artially closed during the renovation, Classic Hotels & Resorts debuts a fully remodeled and renamed Laguna Beach House in March 2015. • Improvements garner national media attention: º New York Times, Architectural Digest, Condé Nast Traveler º “Newly renovated Laguna Beach House is a sweet spot for surfer crowd.” - Los Angeles Times • Post renovation, the hotel has experienced over 17% ($32) in ADR growth while increasing its occupancy 8.2% to 78.7%. • Amongst its competitors, the hotel is ranked #1 in Occupancy, ADR and RevPAR percent change for the last 12 months ending June 2016.

THE INVESTMENT Acquisition Closed: Acquisition Price: Restoration Cost:

May 2014 $11.2 million ($311,111/key) $1.5 million ($41,670/key)

BENEFITS & SERVICES

VALUE FEE STRUCTURE FLEXIBILITY CENTRAL RESERVATIONS SUPPORT CENTER REVENUE MANAGEMENT AND E-COMMERCE CAPABILITIES TOP-LINE SALES LEADERSHIP AND SUPPORT TRAINING RESOURCES PROPERTY OPERATING AND ACQUISITIONS EXPERIENCE PERSONALIZED PROPERTY FOCUS AND GUIDANCE

EXECUTIVE PROFILES

CHARLES CARLISE Director Charles Carlise was appointed President of Grossman Company Properties in 1976 after having joined GCP in April of 1967 as Vice President of Operations. He was appointed Director in 1995. Prior to his employment at GCP, Charles was Vice President and Senior Title Officer of Lawyers Title of Arizona, having advanced to that title at the youngest age ever in the history of the company. Charles, a graduate of Arizona State University, has been involved in various organizations including the Young Presidents’ Organization, International Council of Shopping Centers, Urban Land Institute, Shopping Center Industry Political Action Committee, Land Title Association, and the Right-of-Way Association. He has been on the boards and committees of the Foundation for Senior Living, the Hidden Springs Community School, Xavier High School Board and the Diocese of Phoenix Financial Development Committee.

W. MATTHEW CROW Chief Executive Officer Matt Crow has served as Chief Executive Officer of Grossman Company Properties and Classic Hotels & Resorts® since joining the firm in 1991. Prior to his position with GCP, he was an investment banker in New York and one of the founders of Citicorp Investment Bank’s international real estate finance group. Matt received his MBA in Finance and Accounting from the University of Texas at Austin. He graduated with honors with a BA degree in History and a BBA degree in Management, also from UT-Austin. He is the past President of the Board of Directors of the Urban Land Institute – Arizona District Council, and has served on the Board of Trustees of the Heard Museum, as Vice Chairman of the Greater Phoenix Convention and Visitors’ Bureau, and President of Biltmore Area Partners. Matt is currently a member of World Presidents’ Organization.

EXECUTIVE PROFILES

JOHN GROSSMAN President In his role as President, John Grossman is responsible for the development, management and coordination of strategic projects and acquisitions. John also oversees Development and Design Management for Classic Hotels & Resorts® and is involved in all aspects of project conception, design direction, marketing and programming. In addition, John is President of Classic’s parent company, Grossman Company Properties. John is a member of Young Presidents’ Organization and Urban Land Institute.

RICHARD BEHR Chief Operating Officer Richard Behr leads daily operations and profitability of a growing collection of hotels while achieving optimum operating standards and efficiencies. Richard brings over 25 years of experience and leadership to the hospitality industry providing considerable expertise working with hotel companies including The Ritz-Carlton Hotel Company, Destination Hotels & Resorts and Hilton Hotels & Resorts. Richard has also provided leadership and guidance to such prestigious properties as The Phoenician Resort, Arizona Biltmore and Royal Palms Resort & Spa. Through his vast operational experience and diverse background, Richard promotes an entrepreneurial environment attentive on achieving market potential and increased shareholder value, while focusing on enhanced customer service and judicious owner relations. Richard oversees annual budgeting processes and develops, organizes and manages capital expenditure programs. He affects positive financial growth through short and long range planning, including closely monitoring revenue sources and operating expenses. Richard has been the recipient of numerous industry awards bestowed by Mobil, AAA, and Condé Nast and was appointed to the Governor’s Tourism Alliance. In addition, he has served on the boards of the Arizona Hotel & Lodging Association, Phoenix Convention & Visitors Bureau and the Scottsdale Convention & Visitors Bureau. Richard earned a degree in Business Administration from Arizona State University.

EXECUTIVE PROFILES

TIM PRICE Vice President, Sales and Marketing Tim Price provides visionary leadership and management oversight of the sales, marketing and revenue strategies for Classic Hotels & Resorts®. Implementing a balanced approach combining tactical and pragmatic solutions, Tim guides both independent and branded properties towards achievement of optimal market penetration. Tim brings a history of exceptional industry experience. He has held a number of leadership positions, including Market Sales Leader for 26 Marriott hotels throughout California. Tim also served as the Director of Sales and Marketing at the prestigious J.W. Marriott Desert Ridge Resort & Spa where he successfully positioned the landmark property as the rate and occupancy leader. Tim was employed with Marriott for more than 20 years, holding a number of additional leadership positions including Director of Sales and Marketing at the Anaheim Marriott Hotel, Director of Sales at the San Diego Marriott Hotel & Marina, and Director of Sales at Marriott’s Mountain Shadows Resort & Golf Club in Scottsdale. Tim is a recipient of the coveted Sales Leader of the Year Award honoring his exceptional accomplishments within the hospitality industry. Tim holds a Bachelor of Science, Hotel and Restaurant Management degree from the University of Wisconsin-Stout.

KEVIN DUNCAN Vice President, Revenue Management A passionate leader in total hotel revenue management, Kevin Duncan is responsible for providing overall revenue management leadership and strategic guidance for all properties leading to increased profitability and RevPAR Index for our collection of hotels. Kevin works closely with the Sales and Marketing team at each hotel ensuring successful results. He brings over 19 years of hotel experience, including department leadership positions in Conference Services, Sales and Revenue Management. Most recently, Kevin was Area Director of Revenue Management for Interstate Hotels & Resorts overseeing revenue management and sales strategies for several hotels across the country. Prior to that, Kevin was employed with Marriott International for nearly 15 years holding several leadership positions including Director of the Rocky Mountain Sales Office overseeing responsibilities for a $22 million operation. Recipient of the Regional Sales Team of the Year Award and a Sales Pinnacle Award Winner, Kevin has achieved tremendous success through his hands-on approach in leadership creating a positive atmosphere.

EXECUTIVE PROFILES

DAVE YEAGER Vice President, Finance Dave Yeager closely structures, transitions and manages the hotel portfolio with a customized ownership approach to hotel finance. Dave provides 34 years of financial management and leadership to the hospitality industry. He has guided financial operations for such prominent companies as Marriott International, Destination Hotels & Resorts, Renaissance Hotels & Resorts and Stouffer Hotels & Resorts. Dave has directed notable ownership groups including Nestle USA, Alcoa, JMB Realty, Lloyd’s of London, CTF Holdings, MONY Life and AXA Financial. He provides keen financial insight during numerous hospitality and associated business transitions and acquisitions.

STANLEY GRAY Vice President, Construction Stanley Gray oversees multi-million dollar expansions, renovations, build outs and major capital projects while providing support to ongoing replacement reserve and facilities management programs. Stanley is a 40 year veteran in the construction industry overseeing a diverse array of construction projects including expansions, renovations, tenant improvements, environmental issues and major capital projects. Throughout his tenure with Classic’s parent company, Grossman Company Properties, Stanley has directed expansions of retail malls, office building projects and hotel renovations, including Arizona Biltmore and Arizona Grand Resort & Spa re-developments.

NANCY SILVER Vice President, Organizational Development With over 25 years in Human Resources, Nancy Silver has spent her professional life inspiring people and organizations, creating optimal, visual and measurable results in service, leadership, relationships, wellness and teamwork. Her career highlights include opening the Hyatt Regency Scottsdale, 17 years with Destination Hotels as the Area HR Director for Royal Palms Resort and Spa, leading her own HR/service consulting company and, most recently, transitioning the former Ritz Carlton Phoenix into the new Camby Hotel. Most noteworthy is Nancy’s personalized connection to culture creation, commitment to service excellence, talent search, training and organizational development.

EXECUTIVE PROFILES

JAKE GRAY Vice President, Acquisitions & Development Jake Gray holds the position of Vice President of Acquisitions and Development with Grossman Company Properties and Classic Hotels & Resorts®. In this role, Jake participates in the acquisition, financing, strategy, development and operations of various new and existing assets in the portfolio. In addition, Jake oversees Classic’s sustainability program to incorporate sustainable strategies into development projects and operational programs. Jake is an active contributor to Arizona organizations that enhance our community and business environment. He is currently serving as Chair of the Urban Land Institute’s (ULI) Partnership Forum Program and Vice Chair of ULI’s Young Leaders Group. Jake holds a Bachelor of Science in Construction Management, minor in Business from Northern Arizona University and a Professional Certificate of Real Estate Development from Arizona State University’s Masters in Real Estate Development Program.

TOM BOBO Development Manager Tom Bobo focuses on acquisitions, new business opportunities and due diligence. He provides underwriting analysis directly to Classic’s senior management. Tom provides financial analysis, valuation underwriting, and qualitative strategic assessments of target properties. Tom attended the University of San Diego for graduate school where he received his Master of Business Administration, and received a Master of Science in Real Estate from the Burnham-Moores Center for Real Estate. While at USD, Tom represented the graduate business school on USD’s Graduate Student Council. He also holds a Bachelor of Science in Journalism from the University of Colorado, Boulder.

EXECUTIVE PROFILES

DIRECTOR

CHARLES CARLISE

PRESIDENT

JOHN GROSSMAN

CHIEF EXECUTIVE OFFICER W. MATTHEW CROW

CHIEF OPERATING OFFICER RICHARD BEHR

VP FOOD & BEVERAGE

ROBERT REEVES

VP OPERATIONS PAUL GRAY

VP FINANCE

DAVE YEAGER

VP SALES & MARKETING TIM PRICE

VP REVENUE MANAGEMENT KEVIN DUNCAN REVENUE MANAGEMENT

CENTRAL RESERVATIONS

SALES

MARKETING

E-COMMERCE

PUBLIC RELATIONS

VP

CONSTRUCTION STANLEY GRAY

VP

ORGANIZATIONAL DEVELOPMENT

NANCY SILVER

VP ACQUISITIONS & DEVELOPMENT

JAKE GRAY

DEVELOPMENT MANAGER TOM BOBO

RECOGNITION 30 YEARS OF

AWARDS

AND SERVICE

• Gold List by Condé Nast Traveler Fodor’s Choice Gold Award by Fodor’s Travel • Heritage Award of Excellence by Urban Land Institute • Certificate of Excellence from Trip Advisor • Nation’s Top 50 “Great Service” facilities by Golf Digest • “Award of Excellence” by Wine Spectator • “One of the most spectacular pools in the world” by Travel & Leisure magazine • Best Private Health, Fitness and Sports Club in the State by Arizona Governor’s Council

• Adrian Award from Hospitality Sales & Marketing Assoc. International (HSMAI) • “Award of Excellence” - Corporate & Incentive Travel magazine • Gold Key Award by Meetings & Conventions magazine • Gold Platter Award by Meetings & Conventions magazine • Pinnacle Award by Successful Meetings magazine • Planners Choice Award by Meeting News magazine • Paragon Award by Corporate Meetings & Incentives magazine • Inner Circle Award by Association Meetings magazine

• One of the Best Resorts in US by BudgetTravel.com

• “Top All-Suite Resort Company in the Nation” by Business Travel News

• Awarded Four Star “Best Places to Play” from Golf Digest

• Golden Links Award by Corporate Meetings & Incentives

• “Top 100 Women Friendly Golf Courses in the Nation” by Golf for Women magazine

• “Top 100 Golf Shops” by Golf Shop Operations

• Green Certification Award by Arizona Hotel and Lodging Association

• Four Diamond Award by American Automobile Association

RECOGNITION OUTSTANDING

REVIEWS

LA PLAYA CARMEL • “The Six Must Go Places for the Perfect Weekend Getaway” Architectural Digest • “In Carmel, there’s no more romantic spot than the elegant La Playa Carmel” BRIDES Magazine • “6 Must-Stop Destinations on a California Road Trip” People Magazine Great Ideas • “Many a Silicon Valley exec has sought retreat within the lush garden courtyard of La Playa Carmel, a century-old mansion-turned-seaside resort” Departures.com • “La Playa Carmel… as we enter the hotel, it feels as if we are literally checking into history” Alaska Airlines Horizon THE INN AT LAGUNA BEACH • “10 Top Historic Hotels Across the U.S.” U.S. News & World Report Travel • ”If you wish to discover Laguna Beach at its core, The Inn at Laguna Beach hits the mark” Los Angeles Travel Magazine • “This is Southern California at its finest” Sunset Magazine • “The 10 Best Boutique Hotels in Los Angeles” The Culture Trip • “The best place to stay in Laguna is The Inn at Laguna Beach... You’ll feel like a VIP, but with the satisfaction of knowing you’re paying well” MensJournal.com

HOTEL CARMEL • “The Best Hotels Along the Pacific Coast Highway” Architectural Digest • “The 30+ Best Places to Visit This Summer” Condé Nast Traveler • “Hotel Carmel emerged from a six-month renovation in April with a polished new look and upscale amenities that take a page from its sister hotel, La Playa Carmel.” San Francisco Chronicle • “The 25 Best Summer Beach Vacations” Coastal Living • “Three Essential Spring Escapes from San Francisco” Travel & Leisure LAGUNA BEACH HOUSE • “The 10 Best Boutique Hotels in Los Angeles” The Culture Trip • “9 Stylish Beach Getaways Across the Country” Architectural Digest • “10 Hotels Targeting Millennials” U.S. News & World Report Travel • “Think you’ve ‘done’ SoCal and California? Think again” Los Angeles Times • “A sure sign of a redesign done well? Every nook and cranny of the hotel is Instagrammable” HotelChatter.com (now Condé Nast Traveler) ARIZONA GRAND RESORT & SPA • “#1 Staycation Spot in Arizona” ABC15 Television Viewers Poll • “Best Hotel for Kids & Families” Fodor’s Choice “Best Hotel Pool” AZCentral.com Readers Choice • “Best Kid Friendly Hotel” AZFoothills.com Best of Our Valley

®

DYNAMIC TAILORED ACCOMPLISHED

ClassicHotels.com

3101 N. Central Avenue, Suite 1390 Phoenix, AZ 85012 602.385.3500

10/16

8000 S. Arizona Grand Parkway Phoenix, AZ 85044 602.431.6402