QUORUM HOTELS & RESORTS

SUMMARY OF QUALIFICATIONS

ABOUT US | The Company was founded in 1987 as a partnership between its senior executives and The Rank Group Plc and was known as Rank Hotels North America until November 1994. At that time senior management purchased Rank’s interest and introduced the Quorum name. The company’s first management engagement - The Brown Palace Hotel - has been in Quorum’s portfolio since 1987.

OUR MISSION | We Make Hotels Work by making each hotel the best in its market. We currently manage ±$800 million of assets for various ownership groups including real estate opportunity funds, publicly traded financial institutions and high net worth individuals.

WHAT WE DO We are an independent, Dallas-based provider of customized, value-add hospitality management services. Since 1987, we have specialized in repositioning first class and luxury hotels for our clients through the following services: 

Hotel Management

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Asset Management

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Consulting

OUR KNOWLEDGE BASE 

Provided services to 165 full service hotels | ±52,000 keys | 36 institutional clients

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Conducted over 46 hotel takeovers

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Worked with every major brand | 20 Independents

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Delivered services in 35 states | Canada | Caribbean

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Senior Management leadership has worked together since 1985

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300+ years of collective hotel management and development experience

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OUR JUDGES 

Aetna Realty

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AIG Global Real Estate

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Anschutz Entertainment Group

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CNA

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Greyhawke Capital Advisors

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Hubbard Broadcasting

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Industrial Bank of Japan

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KB Urban

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Lehman Brothers

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Lincoln National Life

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Liquid Realty Partners

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MONY

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Pearlmark Real Estate Partners

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RREEF Real Estate Fund

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Somera Capital Management

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SunAmerica

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The Rank Group, Plc

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Transwestern Realty Finance

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Travelers

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UBS Realty Advisors

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Zelman Development

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WHAT OUR JUDGES SAY “Quorum has consistently exceeded our expectations over the years, particularly in the turbulent markets being faced today. Their level of sophistication and professionalism has produced exceptional results for us, and their innovation is leading us through the challenges ahead.” - David Brown - CEO - Somera Capital Management – Owner’s Representative, Hilton DFW Lakes Hotel [email protected]

“I would highly recommend Quorum. The principals are flexible, direct and without hidden agendas. Quorum understands that the basic reason to own and operate a hotel is to make a profit. They have done a great job over the years.” - Robert Rosen – Principal - Greyhawke Capital Advisors, Owner’s Representative, Brown Palace Hotel [email protected]

“I’ve worked extensively with the Quorum team on numerous challenging hotels over the years and can always count on them to provide an experienced team of professionals with an ownership perspective.” -Tom McCahill – Managing Director – Pearlmark Real Estate Partners (former Managing Director of MONY Real Estate) [email protected]

“Quorum is an exceptional hotel asset and property manager. The principals embrace each assignment with an owner's mentality and employ innovative strategies (especially in their sales and marketing efforts) that allow them to take advantage of any available market opportunities. They consistently exceed performance expectations.” - Marci Byrne - Director of Asset Management AIG Investments, [email protected]

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CURRENT PORTFOLIO MANAGED HOTELS

KEYS

SINCE



The Brown Palace Hotel & Spa, Denver, CO

240

1987

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Comfort Inn (former Denver Inn)

230

1987



Hilton DFW Lakes Executive Center

400

2005



Hilton Phoenix East/Mesa

260

1993



Marriott Fremont

357

2010

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Radisson Suites Tucson

300

2002



Wyndham Tampa Westshore

272

1996

KEYS

SINCE

ASSET MANAGED HOTELS 

Ritz-Carlton Coconut Grove

115

1999



Ritz-Carlton New Orleans

452

2000



Iberville Suites New Orleans

230

2000



Maison Orleans

75

2000



Ritz-Carlton Sarasota

266

2010



Ritz-Carlton Denver

202

2012

FRANCHISE EXPERIENCE 

Hilton

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IHG (Crowne Plaza, Holiday Inn)

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Marriott (including The Autograph Collection)



Radisson

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Starwood (Sheraton, Westin)

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Wyndham

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Independent

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Quorum is an approved operator of all major full service franchises. In addition, we are a Preferred Management Company of Starwood and their affiliated brands. This honor grants Quorum Hotels & Resorts the privilege to operate the following Starwood branded hotels for which preferred status is issued: Luxury Collection, Sheraton, Westin, Le Meridien, Four Points by Sheraton and Aloft.

RECENT NEW BUILD EXPERIENCE Since 2000, Quorum has directed the design and development of the following new build projects: 

Ritz-Carlton Hotel & Spa, New Orleans – 452 Keys - $150M | Opened October 2000 / Spa Opened December 2000

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Iberville Suites, New Orleans – 230 Keys (all suite) - $50M | Opened Feb. 2001

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Maison Orleans Hotel, New Orleans -75 Keys - $25M |Opened May 2001

Quorum took over this luxury, New Orleans project as GP late in the construction phase when the original GP/developer was unable to continue funding, and supervised the completion and opening of the three (3) hotel/757-key complex in downtown New Orleans in 2000-2001. From 2005-2007, and at a cost of close to $110 million, Quorum supervised the post-Katrina rebuilding of the complex. In late 2010, Quorum began planning an 18 month project that will result in the conversion of the Iberville Suites to a Marriott Courtyard in early 2012 and significant upgrades to the Ritz-Carlton portion of the complex. Quorum has asset managed the facilities since 2000. 

Westin St. Louis – 255 Keys - $82M | Opened: March 2002

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Ritz-Carlton Coconut Grove, FL – 115 Keys - $35M | Opened: September 2002

Quorum took over both of these projects on behalf of a major lending institution about midway through the construction phase when the original developer was unable to continue funding, and supervised the completion and opening of the hotels in 2002. Once opened, Quorum asset managed the facilities until their respective sale dates in 2007 and 2011.

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LA LIVE – 1001 Keys - $500M (JW Marriott & Ritz-Carlton) | Opened April 2010

Quorum was engaged by ownership of the LA LIVE project in downtown Los Angeles, CA in late 2005 to assist in the conceptual design of the hotel components for the project. Based on Quorum’s recommendations, LA LIVE ownership approved a multi-brand hotel platform (upscale group and luxury transient), which included a 878-key J.W. Marriott, a 123-key, Ritz-Carlton Hotel as well as 224 Ritz-Carlton Residences. These entities share common overhead departments and significant parts of the physical plant, thereby allowing for maximum efficiencies. Quorum assisted in all phases of the branding due diligence, the ultimate selection and negotiation with Marriott, and the final detailed design of the facilities.

RECENT RENOVATION MANAGEMENT As an operator of franchised hotels, the company has supervised numerous renovations and brand conversions since 1987. Some of our most recent projects include: 

Brown Palace Hotel & Spa, Denver, CO - $52M – 10 year plan finished in 2010

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Hilton D/FW Lakes Hotel & Conference Center -$10M Property Improvement Plan (PIP)

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Marriott Fremont, CA - $10M – 2011 PIP and expansion

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Hilton Mesa, AZ - $12M – 2006 PIP

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Ritz-Carlton New Orleans - $8M renovation in 2012

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Iberville Suites - $10M conversion to a Courtyard by Marriott 2012

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CASE STUDIES - Hotel Workouts & Asset Recovery HOTEL MANAGEMENT SERVICES Property: Brown Palace / Comfort Inn Hotel Complex, Denver, CO, 472 Keys Quorum assumed management of this hotel complex in 1987 and continues to operate it today. Prior to Quorum’s assumption of management, the complex was losing money at the GOP level and headed to a workout with its lender, which QHR assisted ownership in successfully completing. In 2005, an upscale spa was added to the Brown Palace and has consistently been featured as one of the top attractions in Denver by Trip Advisor. QHR has operated the Brown Palace for 25 of its 115 years of history. Today, the Brown Palace Hotel & Spa is a member of the Autograph Collection by Marriott. Property: Hilton Phoenix East, Mesa, Arizona, 260-Keys Services: Quorum was engaged by the lender in 1990 to take over management of this 260-key Hilton franchised property upon foreclosure. Quorum improved operations and formed an investment group to purchase the property from the lender in 1993. Quorum continues to operate this property. The hotel recently completed a $9M renovation. Other Properties Operated on behalf of this lender client: 

Embassy Suites, Denver, CO

236 Keys

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Holiday Inn Boca Raton, FL

184 Keys

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Holiday Inn Park Central, Orlando, FL

344 Keys

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Holiday Inn Casper, WY

200 Keys

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Holiday Inn Executive Center, VA Beach 331 Keys

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Property: Radisson Suites, Tucson, Arizona, 300-keys Services: Quorum was engaged by the lender of the then Doubletree Suites. Quorum repositioned the hotel to a Radisson franchise (there were too many Hilton products in the market) and supervised a $4M± renovation of the facility. Other Properties Repositioned Thru Direct Operations for Various Clients: 

Hilton Lake Arrowhead, CA

281 Keys

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Holiday Inn, Lawrence, KS

116 Keys

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Holiday Inn, Manhattan, KS

192 Keys

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Holiday Inn SFO

147 Keys

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Hotel Plaza II, Toronto, Canada

258 Keys

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Marriott Fremont, CA

357 Keys

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Pan American Ocean Resort, Miami, FL 150 Keys

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Radisson Fort Worth, TX

517 Keys

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Sheraton Galleria, Houston, TX

314 Keys

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Sheraton Pleasanton, CA

177 Keys

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Tremont Hotel, Chicago, IL

130 Keys

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Whitehall Hotel, Chicago, IL

221 Keys

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ASSET MANAGEMENT SERVICES Property: The Ritz-Carlton Hotel & Spa New Orleans: Quorum was engaged in 2000 by the majority partner to replace the developer of this 3-hotel, $300 million, 757-key complex under construction in New Orleans. Quorum assumed the role of General Partner and supervised the completion of construction and the opening activities of the Ritz-Carlton Hotel Company. Since opening, Quorum has also served as the Asset Manager. In 2005, Quorum was tasked with the enormous rebuilding process in the aftermath of Hurricane Katrina and the coordination of ownership’s $110 million insurance claim. The complex was successfully re-opened in December 2006. In 2012 Quorum supervised the $10M conversion of the Iberville Suites to a Courtyard brand. Quorum continues to asset manage the activities of RitzCarlton. Other Asset Management Assignments: 

Crowne Plaza Omaha

223 Keys

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Embassy Suites Minneapolis

216 Keys

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Hyatt Charlotte, Charlotte, NC

260 Keys

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Hyatt Fair Lakes, Fair Lakes, VA

280 Keys

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Hyatt Dulles, Dulles, VA

280 Keys

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Iberville Suites, New Orleans, LA

230 Keys

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Maison Orleans, New Orleans, LA

75 Keys

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Marriott City Center, Charlotte, NC

434 Keys

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Ritz-Carlton Coconut Grove, FL

115 Keys

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Ritz-Carlton Denver

202 Keys

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Ritz-Carlton Sarasota Resort & Spa, FL 266 Keys

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Westin St. Louis, St. Louis, MO

262 Keys

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Westin Beechwood, Fort Worth, TX

286 Keys

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CONSULTING | DUE DILIGENCE SERVICES 

Birmingham Marriott

300 Keys

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Burlington Marriott, MA

404 Keys

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Cincinnati Airport Marriott

300 Keys

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Cincinnati North Marriott

297 Keys

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Cincinnati Northeast Marriott

300 Keys

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Columbus Northwest Marriott

297 Keys

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DFW Marriott

300 Keys

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Embassy Suites, Alexandria, VA

298 Keys

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Essex House, New York, NY

515 Keys

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Four Seasons New York

368 Keys

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Grand Hyatt San Diego, CA

1,625 Keys

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Grand Wailea, Maui, HI

780 Keys

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Hartford Marriott

301 Keys

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Hilton Alexandria, VA

241 Keys

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Keauhou Beach Hotel, Kailua-Kona, HI 311 Keys

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Kona Surf, Kona, HI

530 Keys

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LA Live Convention Center Hotel

1,089 Keys

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Rancho Bernardo Resort, CA

288 Keys

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Ritz-Carlton Kapalua, Maui, HI

548 Keys

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Savannah DeSoto Hilton, GA

245 Keys

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Sonesta Key Biscayne Resort, Miami, FL 389 Keys

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Sonesta Boston, MA

400 Keys

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Stamford Marriott, Stamford, CT

506 Keys

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Surf & Sand Resort, Laguna, CA

164 Keys

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Westin Galleria, Dallas, TX

432 Keys

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TALENT SHEETS TONY FARRIS | Chairman & CEO | Principal In 1987, Farris formed a partnership with the Rank Group Plc which resulted in the creation of Rank Hotels North America. The company was renamed Quorum Hotels & Resorts in November 1994. Prior to Quorum, Farris spent 12 years with Metro Hotels, a Dallas-based hotel development and management company, last serving as EVP of operations. Before joining Metro, Farris served with ITT South Florida Development as CFO and with ITT Sheraton as controller of the Sheraton British Colonial (Nassau, Bahamas). He also held various management positions with the Adolphus and Stoneleigh Hotels in Dallas, the Biltmore Hotel in Los Angeles, and the Hong Kong Hilton. Farris previously has held positions of chairman of the board of trustees for the American Hotel & Motel Association (AH&MA) Educational Institute and the AH&LA Educational Foundation, chairman of the board of the American Hotel Foundation, co-chairman of the AH&MA's selection committee of financial management and the audit committee of the AH&MA. A graduate of the University of Texas systems, he is a certified hotel administrator as well as a CPA. TED MOSLEY | President & COO | Principal Mr. Mosley serves as president and COO of Quorum. He is a founding member of the company and is primarily responsible for the day-to-day operations of the company’s hotels and supervision of the Corporate Operations Group, Quorum’s team of experts in key areas of hotel operations. Prior to forming Quorum, Mosley served as vice president of operations for Metro Hotels, where he was responsible for the operations of 15 properties. He also served as vice president of operations for the Harpenau Hotel Corporation and has served as general manager of various Hilton, Marriott and Sheraton hotel properties. Mosley began his career with the Hyatt Corporation after serving two years in the United States Army, where he managed the largest revenue producing officers’ club in the Army Club system. A certified hotel administrator, Mosley is an active member of the American Hotel & Motel Association and the Dallas Chamber of Commerce. He also serves on the advisory board of the Florida State University School of Hotel & Restaurant Management. Mosley graduated from Florida State University with a double major in Hotel & Restaurant Management and Marketing Management. 12 | w w w . q u o r u m h o t e l s . c o m | 2 0 1 2

DREW McCARNEY | EVP of Development & Acquisitions | Principal Drew McCarney is EVP of development for Quorum and a founding member. Since April 1989, he has been primarily responsible for overseeing acquisition activities, joint venture formation, project development and business development. From 1987 to 1989, McCarney served as SVP of administration, coordinating the company’s efforts in legal administration, human resources, corporate communications, contract negotiations, and risk management. Prior to joining Quorum, McCarney served as VP of human resources at Metro Hotels. He also served as director of human resource planning for Amfac Hotels in Burlingame, CA, with responsibility for labor relations, recruitment and legal activities. He joined Amfac after serving as regional director of industrial relations for Hyatt Hotels in their New Orleans and San Francisco regions. McCarney has served on the board of directors of the council of Hawaii Hotels and the advisory committee in the School of Administration at Golden Gate University in San Francisco. McCarney is a graduate of Bellarmine University in Louisville, KY. ROB DRAWBRIDGE | EVP of Asset Management | Principal Rob Drawbridge is a founding member of Quorum and currently serves as EVP of asset management. He is primarily responsible for the day-to-day oversight of Quorum's asset management division. From 1991 to 1997, Drawbridge served as VP of resort operations of the company’s Kingston Plantation Resort in Myrtle Beach, S.C.; and from 1987 to 1991, he directed the company’s food and beverage operations. Prior to joining Quorum, Drawbridge served as VP of food and beverage for Metro Hotels, where he was responsible for the food and beverage operations of its 15 hotels as well as its restaurant division, which included four Travel Award-winning facilities. His experience includes serving as northeast area director of food and beverage for The Sheraton Corporation in Boston and as executive assistant manager of food and beverage at Amfac's 1500-room hotel and resort in Dallas (now a Hyatt). He held a similar position at Amfac's four-star Silverado Resort and Conference Center in Napa, Calif. Drawbridge spent five years with Hyatt Hotels, serving as executive assistant manager of food and beverage at Hyatt locations in Birmingham, Ala. and Mission Bay, Calif. Drawbridge is a alumnae of Vanderbilt University, where he received his BBA in economics.

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JEAN HUNGERFORD | VP Sales & Marketing Ms. Hungerford joined Quorum Hotels & Resorts in 1987 with an extensive background in rooms division and revenue management. She is responsible for the design, development and operation of the company’s marketing and rooms division operations, including sales training, rate management systems and training, advertising, CRS relations, property management systems and telecommunications. Before joining Quorum, Hungerford was General Manager at the Embassy Suites in Austin, Texas and Tampa, Florida, and also served as Executive Assistant Manager-Rooms Division at the Dallas/Fort Worth Executive Conference Center and the Fort Worth Hilton for Metro Hotels. Hungerford served as Assistant Director of Rooms Operations for Amfac Hotels at their 1500-room D/FW Airport Hotel and as the Director of Central Reservations (CRS) in Burlingame, CA, responsible for all central reservation functions for Amfac’s eight mainland and nine Hawaiian hotels. She began her management career as the Reservations Manager of the Hyatt Regency Kansas City, Missouri. REX STEWART | CFO Mr. Stewart assumed his duties as Quorum’s CFO in late February 2006. Prior to joining the company, he served as an investor and chief financial officer of Sonny Bryan’s, a Dallas-based, 14unit chain restaurant company. His previous industry experience includes serving as EVP and CFO of Patriot American Hospitality (PAH) from 1995 to 1998. During his tenure, Stewart helped establish and expand PAH’s accounting and financial reporting systems as the company rapidly grew from its initial public offering stage to comprise over 200 owned and managed hotels before being acquired through merger of Wyndham Hotel Company. Prior to PAH, he served as EVP and CFO of Dallas-based Metro Hotels from 1986-1995, where he was associated with the senior officers of Quorum. Stewart joined Metro after serving as VP Finance at Lincoln Hotels and spending eight years with Arthur Andersen, where he began his career in finance, having joined that firm after leaving the United States Air Force with the rank of First Lieutenant. A certified public accountant (CPA), Stewart received an MBA in Finance from the University of Southern California and a BBA from Texas A&M University.

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PAM MACRAE | VP Human Resources Ms. MacRae joined the company upon its formation in 1987 and is currently responsible for the oversight of its human resources division including: recruitment, labor relations, legal compliance, benefit management and training. MacRae began her tenure with Quorum as Manager of Administrative Services aiding in the original development of the company’s human resources function. She later served as Director of Human Resources at Quorum’s Pan American Ocean Resort, successfully establishing the HR function for that hotel. MacRae previously served as Director of Human Resources for Stonebridge Ranch, a 6,000-acre, Mobil Land Development community with 300 employees in McKinney, Texas. GARY LEVINE | VP Food & Beverage Mr. Levine is responsible for directing the food and beverage operations of Quorum’s managed properties and is based at the company’s Hilton Hotel in Mesa, AZ. Levine first joined the company in 1987 as food and beverage director for the Brown Palace. He was promoted in 1992 to corporate food and beverage director for Quorum’s hotel portfolio and served in that role until 1997 when he left the company. He returned as VP of Food and Beverage in June 2004. In the interim, he served as VP of operations at General Cigar Company in New York, NY; VP of food and beverage at the MGM/Mirage Beau Rivage Resort & Casino in Biloxi, MS; and, as director of food and beverage at the world renowned Lodge at Pebble Beach. A native of Massachusetts, he began his hotel career with Sheraton Hotels. LARRY MALONEY | Corporate Controller Mr. Maloney joined the corporate office staff in June 2004 with responsibility for corporate and project accounting and was promoted to his current role in November 2004. He is responsible for all hotel accounting and reporting for the company. He originally joined Quorum in 1993 as Assistant Controller at the Hilton Phoenix East in Mesa, AZ and was promoted in 1994 to Controller at the Holiday Inn Lawrence, Kansas. He held similar responsibilities from 1996-2002 at the company’s Tampa Westshore property. During the period 2002-2004, Maloney was responsible for special corporate financial projects, including assignments involving the company’s New Orleans, Virginia Beach and Tucson properties.

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Prior to joining Quorum, he had served as Food and Beverage Controller and Assistant Controller at the Registry Resort in Scottsdale, AZ. A native of Damascus, Maryland, Maloney received a B.S. in Political Science from James Madison University in Virginia in 1986 and his MBA from the University of South Florida in 2002. WALTER PESESKI | Senior Real Estate Analyst Mr. Peseski joined the company in September 2012 and is responsible for real estate analysis, asset management reporting and business development support. In this position, he collaborates with the senior principals of the company in the oversight, analysis and financial reporting related to existing investments and is responsible all financial analysis regarding proposed acquisitions and joint ventures. Most recently, Mr. Peseski worked with Virgin Hotels’ senior team to establish brand standards in anticipation of future expansion. He has also held management positions for companies including The Walt Disney Company, Hilton Worldwide, and Interstate Hotels & Resorts. A native of New Jersey, Walter has a Master’s Degree in Hotel Finance from New York University and BBA from Wilkes University.

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MEDIA AWARDS HOTEL BUSINESS MAGAZINE “Top 100 Management Companies” 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005 LODGING HOSPITALITY “Top 50 Hotel Companies” June 2012, 2011, 2010 “Top Management Companies” 2009, 2008, 2007, 2006 “Top of the Top Award” March 2008 “Top Owners & Operators” June 2010 HOTEL & MOTEL MANAGEMENT “Top Independent 3rd Party Management Companies” 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005

BRAND AWARDS PRESIDENT’S AWARD - RADISSON HOTELS 

Radisson Suites Tucson

GOLD PLATE AWARD TOP RESORT – RADISSON HOTELS 

Radisson Resort at Kingston Plantation



Pan American Ocean Resort

SILVER PLATE AWARD RESORTS – RADISSON HOTELS 

Radisson Resort at Kingston Plantation

TOP HOTEL HONOR - CROWNE PLAZA HOTELS 

Crowne Plaza Hotel, Tampa, FL

HILTON SERVICE AWARD 2009 (Highest Year-End Overall Service SALT Score) 

Hilton DFW Lakes Executive Conference Center

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5429 LBJ FREEWAY | SUITE 625 | DALLAS, TX 75240 WWW.QUORUMHOTELS.COM PH: 972.458.7265 F: 972.991.1641