152009 1-21-06 pmst regis aspen e-om final (1)

Offered exclusively by

C O N T E N T S

Executive Summary 2

Property Description 4

Location Overview 12

Hotel Market Analysis 16

Value Enhancement Opportunities 22

Financial Analysis 23

E X E C U T I V E S U M M A R Y

2

Jones Lang LaSalle Hotels, as sole and exclusive agent for Starwood Hotels & ResortsWorldwide, Inc. (“Owner”), is pleased to offer for sale the fee-simple interest in the179-room St. Regis Aspen (“Hotel” or “Property”), an icon of unprecedented luxuryin a world renowned ski resort destination.

O V E R V I E W

The Property is a AAA-rated, Four Diamond, one-of-a-kind asset located in Aspen,

Colorado, one of the most exclusive ski resorts in the world. The Hotel, offered with the

highly-coveted St. Regis brand and Starwood management intact, has been recognized

by Conde Nast Traveler as one of the Top 50 resorts in the United States (2007) and one of

the top hotels in Aspen by Travel + Leisure. A summary of the key investment highlights are

as follows:

◆ 179 luxurious rooms including 17 over-sized suites

◆ 20,000 square feet of meeting space including a 9,146-square foot ballroom

◆ Three food and beverage outlets including a signature restaurant

◆ 13,000-square foot Reméde Spa, leased and operated by Bliss World

◆ Since 2003, approximately $19.7 million has been invested in capital projects

U N P A R A L L E L E D R E S O R TD E S T I N A T I O N L O C A T I O N

Aspen has become one of the most sought-after resort destinations in the United States.

The charm of the town of Aspen and the scenic beauty of its four ski mountains are

unparalleled. Due to its unique location and stunning surroundings, Aspen is home to a

number of high-end resorts, including the Property, that create a critical mass of luxury

accommodations attracting a wealthy clientele base from around the world.

The Hotel is located at the base of Aspen Mountain, which hosts up to 330,000 skiers

annually (among the 1.5 million total skiers of the entire Aspen area), and is just three blocks

west of the Silver Queen Gondola, which travels 2.5 miles and more than 3,000 vertical feet

from the heart of Aspen to the 11,212-foot summit of Aspen Mountain. Diverse, world-class

outdoor activities including naturalist programs, biking, disc golf, paragliding, hiking,

camping, fishing, horseback riding, golf, tennis, rafting and kayaking add to the popularity

of Aspen as a summer destination, allowing the market to expand beyond traditional

seasonal market dynamics and function as a successful year-round destination.

S T R O N G O P E R A T I N G P E R F O R M A N C EW I T H U P S I D E P O T E N T I A L

Building on the 10.4% and 13.0% RevPAR increases achieved in calendar years 2006 and2007, respectively, the Property’s competitive set attained strong RevPAR growth of 9.1%year-to-date through October 2008, fueled by occupancy growth of 0.2% and ADR growth of 8.9%. The Property also offers numerous value enhancement opportunities includingreprogramming the F&B operations and retail space as well as ROI-driven upgrades to theguestrooms and meeting facilities.

I C O N I C L U X U R Y B R A N D A N D W O R L D -C L A S S M A N A G E M E N T A F F I L I A T I O N

The Hotel benefits from its exclusive St. Regis brand affiliation, which confers an iconicdimension of luxury, service and refined elegance associated with the leading addresses ofthe world. The Hotel is being offered subject to world-class Starwood management, the largestoperator of five-star hotels in the world. Starwood currently operates 16 St. Regis Hotels andResorts across the world with an additional 22 in development scheduled to open by 2014.

H I G H B A R R I E R S - T O - E N T R Y

Much of the hotel product in Aspen was constructed when the destination was in its infancy.Recent years have seen very limited additions to supply due to prohibitive construction costs,the lack of entitled land and restrictive zoning regulations. These formidable barriers to entryinsulate the market from dilutive supply additions, allowing it to perform at superlative levels.

E X E C U T I V E S U M M A R Y

3

St. Regi s : Combining t imeles s sophis t icat ion with bespoke luxur y

A C E L E B R A T E D L E G A C Y

The St. Regis brand is uncompromising in its commitment to excellence. St. Regis Hotels &

Resorts is known for delivering an unrivaled dimension of luxury, bespoke service and

refined elegance at the best addresses in the world. A favorite among discerning travelers,

the St. Regis brand builds its reputation on the pillars of style, innovation and service,

creating an unparalleled experience in some of the world’s most celebrated destinations.

St. Regis Hotels & Resorts is taking the brand to uncharted heights, crossing international

borders to proudly open the doors of the world’s most exclusive addresses. Part of

Starwood’s fast-growing luxury group, the brand is poised to more than double its reach

within the next decade, leveraging its celebrated legacy of personalized service and

amenities, enviable locations and luxurious localized design.

The list of existing St. Regis Hotels & Resorts is presented in the following table:

Upcoming St. Regis Hotels & Resorts are presented below:

UPCOMING ST. REGIS HOTELS & RESORTS

YEAR

Americas & The Caribbean

Atlanta 2009

Bahia Beach 2010

Bal Harbour 2011

Buenos Aires 2010

Dallas 2011

Deer Crest 2009

Mexico City 2009

Puerto Los Cabos 2010

Europe & Middle East

Abu Dhabi 2011

Bahrain 2012

Cairo 2012

Doha 2010

Dubai 2012

Asia Pacific

Bangkok 2010

Jakarta 2011

Kuala Lumpur 2014

Lhasa 2010

Macao 2010

Nanjing 2013

Osaka 2010

Tianjin 2011

EXISTING ST. REGIS HOTELS & RESORTS

Americas & The Caribbean

Aspen Hawaii

Houston Monarch Beach

New York Punta Mita

San Francisco Washington, D.C.

Europe & Middle East

London Rome

Mallorca

Asia Pacific

Bali Beijing

Bora Bora Shanghai

Singapore

P R O P E R T Y D E S C R I P T I O N

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5

A P R E M I E R R E S O R T D E S T I N A T I O N

The Property is located at the base of Aspen Mountain, three blocks west of the Silver Queen

Gondola. The Property is a perfect blend of European alpine charm and modern sophistication

providing the superstructure for a cozy, intimate interior supported by first-class service.

L O B B Y A N D E N T R A N C E A R E A S

The Hotel’s porte cochere leads to the blonde wood, river rock walls and ornate rugs of

the lobby. The Property’s European chateau-type construction blends perfectly with the

landscape and surroundings. The warm wood tones accented with rough-hewn stone set

the stage for a one-of-a-kind destination resort experience.

The Resort’s concierge service and front desk reception areas are located to the left of the

entrance. The remainder of the lobby remains open and centered on a glowing fireplace

and comfortable seating arrangements.

ST. REGIS ASPEN – SUMMARY OF EXISTING FACILITIES AND AMENITIES

COMPONENT DESCRIPTION

Guestrooms • 179 guestrooms, including 17 suites

Food and Beverage • Signature restaurant • Shadow Mountain Lounge• Pool Lounge (Seasonal)

Meeting Facilities • 20,000 square feet of meeting space• Includes the 9,146-square foot Grand Ballroom

Spa Facilities • 13,000-square foot Reméde Spa• 15 treatment rooms• One couples room

Other Facilities & Amenities • Heated outdoor pool• Ski valet• Aspen Outfitting Company, offering fly fishing and

shooting sports goods• Aspen Sports, offering ski and snowboard equipment,

rentals and apparel• Aspen Back Institute, world leader in non-medical back care• Ski butler• Business center• Gift shop

Tenure Fee simple

Source: Hotel Management


6

In addition to exceptional furnishings, turndown service is standard in all rooms. The

following shows a representative sampling of the first-class amenities available at

the Hotel:

◆ Flat panel TVs in guestrooms and bathrooms ◆ In-room coffee maker

◆ Two-line telephones ◆ DVD/VHS player

◆ Fireplace ◆ CD player/radio

◆ Wireless high speed internet access ◆ Digital music

◆ In-room merchandise bar ◆ Personalized stocked refrigerator

ST. REGIS ASPEN HOTEL GUESTROOM CONFIGURATION

ROOM TYPE NUMBER OF ROOMS SIZE (SQUARE FEET)

Superior – King 17 400

Superior – Double 5 400

Deluxe – King 73 400

Deluxe – Double 28 400

Grand Deluxe – King 19 400

Grand Deluxe – Double 13 400

Junior Suite – King 5 690

One-Bedroom Suite – King 15 820

Loft Suite – King 2 1,100

Two-Bedroom Presidential Suite – King 2 2,300

Total 179

G U E S T R O O M S

The Property boasts a total of 179 hotel rooms located in two separate wings. Guestroomsare decorated in refined dark woods with a rich red, gold and brown color scheme with contemporary alpine decor. Guestrooms also feature a working area, complete with anoversized desk and a seating area with uniquely designed plaid or leather club chairs.Guest bathrooms are adorned with top-of-the-line fixtures, marble floors and countertopsaccented with dark woods. All guestrooms feature LCD televisions and St. Regis beds withluxurious Pratesi linens.

The following illustrates the guestroom configuration.

F O O D A N D B E V E R A G E F A C I L I T I E S

The following represents the food and beverage outlets at the Hotel.

S I G N A T U R E R E S T A U R A N T

The Property’s signature restaurant combines traditional American recipes and mergesthem with Mediterranean inspiration, creating an ever-changing menu rich with flavor and imagination. The decor features warm pine floors, a mix of antique furniture and cozydeco-inspired booths, wrought iron sconces, ochre walls and fabrics in soft earth tones.Currently affiliated with Todd English, the restaurant offers repositioning opportunities inApril 2009.

S H A D O W M O U N T A I N L O U N G E

Shadow Mountain Lounge is a casual gathering spot featuring views of Aspen Mountain, agranite fireplace and live music. A light menu is offered with cocktails, aperitifs, wines anda selection of domestic and imported beers.

P O O L L O U N G E

The Property also has food and beverage service at the pool, which is open on a seasonal basis.


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M E E T I N G F A C I L I T I E S

The Property offers a total of 20,000 square feet of flexible, state-of-the-art meeting space

anchored by the 9,146-square-foot Grand Ballroom. This allows the Hotel to accommodate

groups of up to 1,200 guests for receptions. Each of the Hotel’s meeting rooms offer stunning

views of the scenic mountain vistas which act as an excellent backdrop for weddings.

ST. REGIS ASPEN MEETING SPACE CAPACITY

ROOM NAME DIM. L x W AREA HEIGHT ROUNDS OF 10 THEATER RECEPTION CONFERENCE CLASSROOM U-SHAPE HOLLOW SQ

LOBBY LEVEL

Aspen Room 54' x 54' 2,111 9' 100 120 150 48 100 – –

Mountain Plaza 40' x 60' 2,294 20' 140 200 150 – – – –

Fountain Courtyard 101' x 100' 7,461 20' 350 720 400 60 216 – –

Mill Street Courtyard 63' x 40' 2,087 20' 80 – 120 – – 57 78

LOWER LEVEL

Pre Function 115' x 27' 3,645 10' 120 – 450 – – 57 60

Grand Ballroom 101' x 96' 9,146 12' 600 920 1,200 – 540 93 102

Salon 1 101' x 48' 4,557 12' 300 400 600 – 270 93 102

Salon 2 101' x 48' 4,557 12' 300 400 600 – 270 39 42

Salon 2A 31' x 48' 1,428 12' 110 156 140 36 96 42 48

Salon 2B 26' x 48' 1,235 12' 60 120 125 36 72 51 60

Salon 2C 43' x 47' 1,894 12' 120 250 200 36 108 54 66

Salon 2AB 57' x 48' 2,663 12' 180 345 265 48 162 75 84

Salon 2BC 69' x 48' 3,118 12' 170 414 325 54 207 – –

Boardroom 27' x 19' 513 10' – – – 18 – – –

Capitol 29' x 20' 574 10' 40 60 50 20 30 27 30

Pyramid 29' x 25' 721 10' 50 84 65 24 36 – –

Maroon Bells 28' x 61' 1,519 10' 100 190 150 50 90 27 33

Maroon Bells 1 28' x 30' 758 10' 50 80 75 20 45 27 33

Maroon Bells 2 28' x 30' 758 10' 50 80 75 20 45 24 28


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FOUNTAINCOURTYARD

OLIVESRESTAURANT

& BAR

MILL STREETCOURTYARD

MOUNTAINPLAZA

POOL

PORTE COCHERE

2.

HOT TUB

HOT TUB

SHADOWMOUNTAIN

LOUNGE

ASPENROOM

1. ENTRANCE2. FRONT DESK3. ELEVATORS

1.

3.

GRAND BALLROOM

SALON 1

SALON 2A

SALON 2C

SALON 2B

3.

CAPITOL

PYRAMID

5B.

5A.

4.

6.

FITNESSROOM

PRE FUNCTION

REMÈDESPA

1. 2.

REMÈDE SPA RECEPTIONBOARDROOM FOYERBOARDROOMBUSINESS CENTER

1.2.3.4.

MAROON BELLSMAROON BELLS 1MAROON BELLS 2CONFLUENCE POOL

5.5A.5B.

6.

5

L O W E R L E V E L F U N C T I O N S P A C E SL O B B Y L E V E L F U N C T I O N S P A C E S


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R E M È D E S P A

The 13,000-square-foot Remède Spa is the first resort spa in Aspen. The Remède Spa,

operated by Bliss, offers clients a customized selection of highly effective facials, body

treatments, massages, waxing and nail services, based exclusively on the results-oriented

Laboratoire Remède skincare line. The following details the amenities at the Remède Spa:

◆ 15 treatment rooms ◆ Sauna and warm and cold plunge pools

◆ One couples room ◆ Movement studio for yoga and group classes

◆ Exquisite menu of treatments ◆ Fitness center, accessible 24 hrs/7days

◆ Spa boutique ◆ Consultation service

◆ Men’s and women’s locker facilities ◆ Fitness assessment and counseling

Remède Spa is leased by Bliss World. The following summarizes the lease agreement:

ST. REGIS ASPEN – REMÈDE SPA LEASE AGREEMENT

Lessor: Starwood Hotels & Resorts Worldwide, Inc.

Lessee: Bliss World, LLC

Area Size: 13,322 square feet

Permitted Use: Spa and fitness center

Effective Date: December 1, 2004

Expiration Date: September 30, 2014

Renewals: Two 3-year extensions

Current Minimum Rent: $342,253 per year; $407,986 for the year beginning January 1, 2009

O T H E R A M E N I T I E S A N D F A C I L I T I E S

S K I B U T L E R

Ski Butlers make the transition from guest room to ski slope seamless. They assist with ski and snowboard equipment, instruction and transportation to the ski mountain of theguest’s choice.

A S P E N S P O R T S

Guests who prefer ski and snowboard equipment waiting upon arrival have the option ofmaking advanced ski and snowboard rental reservations through Aspen Sports, a retailerlocated within the property offering ski and snowboard rentals and apparel.

A S P E N O U T F I T T I N G C O M P A N Y

Located on the lobby level of the Hotel, Aspen Outfitting Company offers fly fishing andshooting sports goods. In addition, the shop arranges, fishing, hunting, and shooting tripsand instructional classes.

A S P E N B A C K I N S T I T U T E

The Aspen Back Institute is a world leader in non-medical back care and wellness. Programsoffered include back relief, surgery prevention, core development and perfect posture.


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C A P I T A L U P G R A D E S

Since 2003, more than $19 million has been invested in capital projects to maintain the

Property’s physical condition, as summarized in the following table:

ST. REGIS ASPEN 2003 - 2008 CAPITAL PROJECTS

YEAR AMOUNT ($,000S) MAJOR PROJECTS

2003 $423 Club lounge renovation, pneumatic controls, guestroom carpetreplacement

2004 $5,612 Reconstruction of lower courtyard, hydronic snowmelt system,2nd floor balconies water-proofing, guestroom renovation

2005 $7,309 Building C roof membrane replacement, laundry equipment, guestroom renovation

2006 $4,034 Lower courtyard renovation, mattress replacement, chiller plantupgrades, purchase of airport shuttle buses

2007 $900 Building A roof replacement, elevator control panels, select furniture replacements in lower lobby

2008 $1,428 Building A roof replacement, facade precast panel replacement,solar hot water tube installation, renovation planning for uppercourtyard deck, guestrooms and F&B outlets

S T . R E G I S R E S I D E N C E C L U B

In addition to the pure hotel keys, the Property also manages the St. Regis Residence Club

which has nine residences on floors five and six that are Fixed Club interests and 16 residences

on floors two, three, four and six that are Premier Club interests. Two- and three-bedroom

Residences range from 1,600 to 2,200 square feet. Each club interest entitles the member to

occupy a Club Residence for 28 days. The time and length of occupancy depends on the

type of Club interest purchased and each member’s requested reservation period.

Members with Fixed Club interests have pre-assigned club weeks and residence. Members

with Premiere Club interests may request reservations using the priority use schedule,

which ensures all Premiere Club interest members of an equitable right to use the Premier

Club Residences.

The St. Regis Residence Club is not included in the Property that is offered for sale. Upon

a transfer of ownership, the new owner will enter into a third-party management agreement

with Starwood Vacation Ownership ("SVO"), which will continue to own the Residence Club.

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159

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194

318

318

348

371

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392

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215

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530

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N e w M e x i c oO k l a h o m a

K a n s a s

T

A r i z o n a

U t a h

N e b r a s k aW y o m i n g

C o l o r a d o

Tierra Amarilla

Conejos

SanosteeRough Rock

KirtlandShiprock

DulceTeec Nos Pos

Dennehotso

TowaocMexican Hat

Pueblo West

El Jebel

Whiterocks

Miami

HitchlanKerrickSofia

La Madera

Felt

CanjilonValdez

GrandeWheeless

A

El Vado

Eva

Tres Piedras

Burton

Koehler

MouserCastaneda

Round Rock

Kenton

Red Rock

Trinchera

Costilla

Monero

Los Pinos

Edler

Segundo

Cedar Hill

Mesita

La Plata

Stonewall

Pagosa Junction

StoningtonUtleyvilleVillegreen

Hoehne

Mexican Water

Gulnare

Marvel

Oxford

Chimney Rock

Cuchara

Tyrone

Lycan

Aneth

Deora

MaydayVallecito

Delhi

Bluff

Tacoma

ToonervilleTimpas

Yellow Jacket

Gardner

Stoner

Wagon Wheel Gap

La Garita

Cahone

Cedarwood

BeulahRosita

Ucolo

Wetmore

Arlington

Villa Grove

Slick Rock

Towner

Powderhorn

CoaldaleTexas CreekSargents

Colona

Wigwam

La SalUravan

Karval

Wild HorseArapahoe

Almont

Rush

Nathrop

Ellicott

BoyeroFalcon

Gateway

Lazear

Twin LakesGaro

Westcreek

Elbert

Whitewater

Grand Mesa

Thompson Springs

Westwater

Woody Creek

Agate

JeffersonPine

Meredith

Mack

Kirk HaleCope

AntonLast Chance

Vernon

Rio Blanco

Woodrow

Bond

Hoyt

Burns

Allenspark

Orchard

Bonanza

Weldona

Phippsburg

Ouray

AxialMassadona

Cornish

Rand

Hamilton

DaileyBuckingham

AmherstBriggsdale

Jensen

Poudre Park

Maybell

PadroniProctorRed Feather Lakes

Greystone

Glendevey

Carr

Lorenzo

Kings Canyon

HarrimanCarpenterJelm

Powder Wash

Lemoyne

Red Buttes

Hiawatha

Albany

Federal

McKinnon

Ryan Park

Guymon

Trinidad

Cortez

Lamar

Craig

Raton

Bloomfield

Aztec

Ulysses

Alamosa

La Junta

Woodland Park

Glenwood Springs

Evans

WindsorSteamboat Springs

Vernal

Taos

Monte Vista

Rocky Ford

SalidaGunnison

Manitou Springs

Moab

Delta

Goodland

AspenFruita

Carbondale

Rifle

Fort Lupton

BrushBerthoud

Estes Park

OgallalaSidney

Clayton

Elkhart

Hugoton

Walsenburg

Lak

Las Animas

BurlingtonLeadville

Eagle

WrayMeeker

Holyoke

Kimball

St tf d

Boise City

Springfield

Pagosa Springs

Johnson

Del Norte

Syracuse

Telluride

Ordway

Monticello

Leoti

Cheyenne Wells

Cripple Creek

Breckenridge

Saint Francis

Benkelman

Akron

Imperial

Grant

Julesburg

San Luis

CreedeSilverton

Dove Creek

Westcliffe

Lake CityOuray

TribuneEads

Sharon Springs

Hugo

Kiowa

Central City

Hot Sulphur Springs

Walden

Chappell

Manila

Oshkosh

Saguache

Fairplay

Georgetown

Questa

Center

Blanding

Buena Vista

Palisade

YumaRangely

Hayden

Springer

Goodwell

H

Chama

Dolores

Crested ButtePaonia

Monument

Limon

Snowmass Village

Minturn

Bennett

Kremmling

SutherlaPine Bluffs

Taos Ski Valley

Texhoma

Angel Fire

MaxwellGrenville

Folsom

Campo

Kim

Ignacio

Blanca

La Veta

Rico

Rye

Hartman

CrestoneSawpit

Sheridan LakeHaswell

Naturita

Pitkin

Crawford

WinCalhan

Simla

Arriba Seibert Stratton

Collbran

Deer Trail

Parachute

Bird City

Haigler

KeenesburgYampa

Wauneta

Dinosaur

HaxtunRaymer

Ballard

Graint

CrookGrover

DixonBaggs

Gurley

Riverside

Albin

Cimarron

Richfield

Farmington

Grand Junction

LittletonEnglewood

NorthglennBroomfield

Loveland

Laramie

Durango

Canon CityMontrose

Fountain

Castle Rock

Parker

Greenwood Village

Golden

BrightonLafayette

Fort Morgan

Sterling

ArvadaWestminster Thornton

Boulder

Longmont

Greeley

Pueblo

Lakewood

Fort Collins

Colorado Springs

Aurora

Centennial

Denver

Cheyenne

Vail

L O C A T I O N O V E R V I E W


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A S P E N

Aspen ranks among North America’s most exclusive destinations, offering world class

skiing, high-end shopping, and a number of outstanding cultural events. Located in Pitkin

County, Colorado, Aspen is 220 miles southwest of Denver and is situated in the midst of the

White River National Forest. The town occupies only 3.66 square miles in a high mountain

valley, surrounded on three sides by the Colorado Rockies. With a year-round population of

just 5,900, the population increases dramatically during winter and summer peak seasons,

creating a lively and entertaining environment.

A R I C H H I S T O R Y

In 1879, the discovery of silver led to the first mining camp in Aspen. The camp soon became

a boomtown, with a population that grew to more than 12,000 within a decade. When

the silver deposits dwindled, Aspen was all but abandoned, leading to the inadvertent

preservation of the Victorian-era village.

In 1946, shortly after World War II, the Aspen Skiing Company was founded. The installation

of the first chair lifts laid the foundation of Aspen’s preeminence as a world-class

recreational destination. Through the decades, numerous music, art and food festivals

have taken root in Aspen, greatly enhancing the town’s quality of life. In the 1970’s, Aspen

began its gradual transformation into the luxury resort and second home market that

exists today.

H I G H B A R R I E R S - T O - E N T R Y R E A L E S T A T E M A R K E T

Aspen’s land costs and natural boundaries surrounded by the White River National Forest

have created one of the highest barriers-to-entry real estate markets in the United States.

With little new land left on which to build and the passing of a 2006 Pitkin County measure

that set a residential building limit of 5,750 square feet, the demand for large homes,

particularly those ranging from 10,000 to 15,000 square feet, is especially strong. As a result,

the average home price in Aspen is $5.3 million, or as much as $2,000 per square foot.

ASPEN FACTS

Average Snow Fall: 300 inches

Average Annual Skiers 1998-2008: 1.37 million

Number of Lifts: 46

Skiable Terrain: 5,300 acres

Total Trails: 336

Summer Temperatures: 65’s(low) – 85’s(high)

Winter Temperatures: 20’s(low) – 40’s(high)

Source: Colorado Ski Country USA


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S K I I N G

World-renowned for its skiing, Aspen enjoys heavy traffic from skiers of all levels who

frequent Aspen Mountain (Ajax), Aspen Highlands, Buttermilk and Snowmass Mountains.

The ski season generally runs from late November to mid-April.

Each of Aspen’s four ski mountains are managed and operated by the Aspen Skiing

Company. The Aspen Skiing Company provides experienced management and the

resources necessary to preserve and develop Aspen’s world-class skiing environment.

Aspen Mountain, with its base situated in the town of Aspen, is served by a number of lifts

in addition to the Silver Queen Gondola. The gondola provides comfortable and high-speed

access to the top of the mountain in both winter and summer. Aspen Mountain caters to a

wide audience of all skier types and abilities and is home to multiple World Cup race events.

Common ownership of the Aspen ski areas has resulted in the popular four-mountain pass

which allows skiers to explore the terrain offered by each of the mountains during

their stay.

Over $35 million in capital improvements have been invested for the 2008-2009 ski season,

including two new restaurants at Snowmass, a new high-speed quad Sheer Bliss lift,

22-foot Olympic-sized halfpipe at Buttermilk and additional terrain at Aspen Highlands.

In addition, the new Snowmass base village being under development will reveal new

restaurants, ski-in/ski-out condos and new conference space.

1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-20080

200

400

600

800

1,000

1,200

1,400

1,600

Aspen Area Ski Visits

Snowmass Buttermilk

Visi

tors

(in

thou

sand

s)

Aspen Mountain Aspen Highlands

Source: Colorado Ski Country USA


15

O T H E R R E C R E A T I O N A L A C T I V I T I E S

W I N T E R A C T I V I T I E S

◆ Alpine skiing ◆ Cross country skiing◆ Snowmobiling ◆ Snowboarding◆ Ice skating ◆ Sleigh rides

S U M M E R A C T I V I T I E S

◆ Hiking ◆ Hang-gliding◆ Bicycling ◆ Golfing◆ Whitewater rafting ◆ Canoeing and kayaking◆ Horseback riding ◆ Fly-fishing◆ Hot air ballooning

A R T S A N D C U L T U R E

Aspen is home to a variety of cultural and fine arts events, typically showcased during thesummer months. Cultural events include: ◆ The Aspen Music Festival ◆ Food & Wine Magazine Classic in Aspen◆ Aspen Dance Festival ◆ Music on the Mountains◆ Aspen Theatre in the Park ◆ Aspen Filmfest◆ Aspen Summer Words Literary Festival

Cultural organizations include: ◆ The Aspen Historical Society ◆ The Aspen Institute◆ Aspen Snowmass Council for the Arts ◆ The Given Institute of the University of Colorado◆ International Design Conference ◆ Aspen Art Museum◆ Anderson Ranch Arts Center ◆ Aspen Writers Foundation

R E T A I L A C T I V I T Y

Despite a population of less than 6,000, Aspen has over 235 stores and boutiques. Shoppers

are able to find the latest in designer fashion along with one-of-a-kind items and clothing in

locally owned boutiques. High-end designer retail outlets include:

◆ Fendi ◆ Gucci

◆ Dior ◆ Prada

◆ Louis Vuitton ◆ Ralph Laure

◆ Ermenegildo Zegna ◆ Theory

A C C E S S

Considered by many to be one of the most conveniently located airports near a major resort

destination, Aspen is accessible from any worldwide location through convenient air

travel. The airport offers non-stop service from San Francisco, Los Angeles and Chicago

on United Airlines, from Salt Lake City and Atlanta on Delta Air Lines, and from Phoenix on

US Airways. In addition, Aspen is a 45-minute flight from Denver International Airport

(“DEN”) via United Express, which offers up to 15 daily flights. During peak season, the

airport handles up to 200 flights per day.

Aspen is also served by the larger but more distant Eagle County Airport, which is located

approximately one hour away. Year-round highway access to Aspen is available via

Interstate 70 and State Highway 82. By car, Aspen is a scenic three and one half-hour trip

from Denver.

P O P U L A T I O N

The total population for Pitkin County is estimated at 15,100 people, with approximately

5,900 year-round residents in Aspen. During the peak winter and summer seasons, the

population of the greater Aspen region increases to an estimated 25,000, including visitors.

Continuing strength in the Colorado and Rocky Mountain economies is projected to fuel

continuing population growth at an estimated rate of 1.5% per year.

H O T E L M A R K E T A N A L Y S I S

16


17

The hotel supply in Aspen ranges from small inns and motels to high-end luxury properties

that include the St. Regis Aspen. Despite its relatively small size, the Aspen hotel market is

arguably one of the most successful and recognized luxury resort markets in the world.

Aspen has a total of 47 lodging properties with approximately 3,700 rooms; this is compared

to approximately 70 properties and nearly 5,000 rooms in 1995. This decrease in inventory is

attributed to the conversion of numerous hotels and lodges into residential real estate,

namely fractional/timeshare product. Falling hotel rooms supply paired with stable demand

has resulted in dramatic increases in average daily rate.

The peak winter (December to March) occupancy level is historically six percentage-points

higher than that achieved during the summer months (June to August). The highest

occupancy levels are achieved in the winter months of January, February, and March and

the summer months of July and August. Due to Aspen’s increasing fair weather appeal, the

seasonality of this market has become less pronounced. The diminished reliance on the ski

season has been a function of the diversification of the recreational activities available

coupled with a new and better designed/capitalized hotel inventory.

In the last several years, the Aspen lodging market has experienced tremendous growth

in occupancy and average daily rate. In 2007, the market achieved occupancy levels of

65.8% and an average daily rate of $366.10, representing increases of 2.2% and 10.8%,

respectively. This has fueled an impressive RevPAR growth of 13.2% compared to 2006 figures.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2007 Aspen Monthly Occupancy

Source: Aspen Chamber Resort Association (ACRA)

2005 2006 2007$0

$50

$100

$150

$200

$250

$300

$350

$400

Aspen Lodging Market Trends

ADR RevPAR Occupancy

52%

54%

56%

58%

60%

62%

64%

66%

68%

Source: Rocky Mountain Lodging Report


18

The Property ended 2007 with an occupancy of 66.5 % and an ADR of $490. The Property’s

impressive 9.8% increase in ADR resulted in a RevPAR of $326 or a 4.9% increase compared

to 2006 figures. During this period, the Property achieved a RevPAR index of 112.6 for the

year ending in 2007, the second highest in the competitive set.

Year-to-date through October, the Property has continued to grow rate, reaching an ADR of

$488 or a 9.2% increase over the prior year. Coupled with a strong occupancy of 66%,

the Property has experienced RevPAR growth of 6.7% to $332.

2004 2005 2006 2007 2007 YTD Oct 2008 YTD Oct$0

$50

$100

$150

$200

$250

$300

$350

$400

Current Competitive Set RevPAR Comparison

St. Regis Aspen Comp. Set RevPAR Penetration

20%

40%

60%

80%

100%

120%

140%

160%

180%

Source: Smith Travel Research

C U R R E N T C O M P E T I T I V E S E TP E R F O R M A N C E

St. Regis Aspen is the only internationally-branded luxury resort of its stature in the town of Aspen. As a result, the competitive hotel market for the St. Regis Aspen comprises six destination resorts in renowned ski resorts in the Rocky Mountain region, totaling 920rooms. These hotels were selected based upon similarities in market positioning and size.Note that the competitive set excludes the Property.

ST. REGIS ASPEN COMPETITIVE SUPPLY

PROPERTY LOCATION NO. OF ROOMS

St. Regis Aspen Aspen, Colorado 179

Competitive Set

Preferred Stein Eriksen Lodge Park City, Utah 180

The Little Nell Aspen, Colorado 92

Sonnenalp Resort Of Vail Vail, Colorado 127

Park Hyatt Beaver Creek Resort & Spa Avon, Colorado 190

Ritz-Carlton Bachelor Gulch Avon, Colorado 180

Four Seasons Resort Jackson Hole Teton Village, Wyoming 151

Competitive Set Total 920

Note: The Property is included in the above table only for reference. Source: Smith Travel ResearchCompetitive set data excludes the performance of the Property.


19


20

C O M P E T I T I V E S E T P R O P E R T I E S

P R E F E R R E D S T E I N E R I K S E N L O D G E

Stein Erikson Lodge is named after the Norwegian Olympic

Gold Medalist skier and located mid-mountain at Deer

Valley Resort. The five star, five-diamond Lodge contains 180

rooms, three executive boardrooms, 14,000 square feet of

indoor meeting space, including the 4,000-square-foot

Olympic Ballroom. The Lodge is well known for its luxurious

accommodations, Glitretind Restaurant and housemade

chocolates.

1

T H E L I T T L E N E L L

The 92-room Little Nell is located three blocks from the

St. Regis Aspen and has direct access to the Silver Queen

Gondola. The hotel opened in 1989 and is owned and

operated by the Aspen Skiing Company. The opulent and over-

sized guestrooms contain a mini-bar, two-line telephones,

fireplace and marble bathroom. Hotel guests also have

access to the indoor health club, outdoor pool and Jacuzzi,

and the hotel bar and restaurant.

2 R I T Z - C A R L T O N B A C H E L O R G U L C H

The Ritz-Carlton Bachelor Gulch is located near the Park

Hyatt Beaver Creek in Avon and consists of 180 guestrooms

including 40 suites with ski-in ski-out access on Beaver

Creek Mountain. The property contains 13,000 square feet of

meeting space, a Spago restaurant and has access to the

private Red Sky Golf Club.

5

S O N N E N A L P R E S O R T O F V A I L

Located in Vail, Colorado, the Sonnenalp Resort contains

127 rooms comprised of 115 suites and 12 standard guest-

rooms. The Resort includes 4,821 square feet of meeting

space, the 18-hole Sonnenalp Golf Club and four restaurants.

The Sonnenalp Resort of Vail traces its history back to 1919,

when the Sonnenalp Resort of Bavaria was opened by the

Faessler Family in Germany’s Allgau Alps. In 1986, another

generation of Faesslers purchased the Kiandra Lodge, the current site of the Sonnenalp.

The resort completed a renovation and expansion in 2006 which included the addition of

29 rooms and suites (bringing its total room count to the current 127 rooms), along with an

underground parking garage and retail and restaurant outlets along Vail’s Meadow Drive.

3 F O U R S E A S O N S R E S O R T J A C K S O N H O L E

Offering 151 guestrooms with an average size of 550 square

feet, the Four Seasons Resort Jackson Hole is the newest

hotel in the competitive set and is located in the Jackson

Hole, Wyoming resort market. Opened in December 2003,

the hotel offers 8,000 square feet of meeting space (the most

of any hotel in Teton Village), a full-service restaurant and

lounge, an outdoor pool and three whirlpools, ski valet

services and a children’s activity center. This property also offers oversized, multi-bedroom

condominium and timeshare units in addition to the standard guestroom inventory.

6

PARK HYATT BEAVER CREEK RESORT & SPA

The 190-room Park Hyatt Beaver Creek Resort is located in

Avon, Colorado and contains over 20,000 square feet of

indoor and outdoor event space highlighted by three elegant

boardrooms and a ballroom with floor to ceiling windows.

The Resort’s food and beverage outlets include Bivans and

Antler Hall.

4


2140

20

2020

20

26

26

26

30

30

30

89

91

93

93

138

24

24

285

287

34

34

3436

36

385

385

40

40

40

5050

85

93

93

93

93A

20

26

26

385

385

212

287 310

14

14

1414

14

14A 14A

16

16

16

18

18

189

189

189

191

2020

20

20

20

26

26

26

26

287

287

30

30

310

85

85

85

85

89

89

89

18

191

191

191

40

50

6

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89

89

16

18

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385

85

70

80

15

25

90

15

86

84

76

25

C o l o r a d o

U t a h

N

W y o m i n g

S o u t h

I d a h o

GreatSalt Lake

Snake R.

Panguitch

Parowan SalidaGunnison Cheyenne Wells

Cripple CreekSha

Pioche Junction MoabBeaver Loa Delta Hugo

Burlington GoFairplay

Aspen Leadville

Kiowa

Richfield Breckenridge

FillmoreCastle Dale

Saint Francis

Glenwood Springs Eagle

Manti Wray

PriceAkron

Hot Sulphur Springs

Ely MeekerNephi Imperia

Holyoke

DuchesneEureka

Steamboat Springs

CraigVernal Walden Julesburg

ChappellSidney

Kimball

Manila

OshkoshHarrisburg

BridgeportGering

Rawlins AllianceTorringtonWheatland

RandolphKemmerer

PrestonRushvilleHarrison

ParisLusk

Malad City

ChadronDouglas

LanderSoda Springs PinedaleBurley

Rupert Hot Springs

American Falls

Jerome Custer

ShoshoneGoodingNewcastle

ThermopolisJackson

Driggs WorlandRigbyFairfield

ArcoHailey

Deadwood

Murphy

SturgisSundanceBuffalo

Saint Anthony Basin Belle Fourche

Dubois CodyIdaho City

Emmett

PayetteChallis

Weiser

Bison

Red LodgeBroadus Buffalo

Cedar City

C Cit

MontroseFountain

Grand JunctionCastle Rock

Fort Morgan

SterlingPayson

Laramie

ScottsbluffGreen River

Elko

Rock Springs

Logan

Casper

Riverton

Twin Falls

Blackfoot

Idaho FallsMountain Home Gillette

Rexburg

Nampa

CaldwellSheridan

Ontario

Parker

Golden

Lafayette

Loveland

Lehi

Farmington

Clinton Evanston

North Ogden

Brigham City

Boulder

Greeley

Orem

Sandy

Layton

Ogden

Pocatello

Rapid City

Arvada Thornton

Longmont

West Jordan

West Valley City

Colorado Springs

Lakewood

Aurora

Fort Collins

Provo

Denver

Cheyenne

Salt Lake City

Boise

I d a h o6

1

Vail

3,4,5

2

Hallam LakeNature Preserve

WagnerPark

Rubey ParkTransit Ctr

Ruthie's Run

Gwyn's on Aspen

Roaring Fork River

A s p e n M o u n t a i n

Ruthie's Run

Gwyn's on Aspen

HOPKINS AVENUE

COOPER AVENUE

UTE AVENUE

SPRI

NG

STR

EET

ORI

GIN

AL

STRE

ET

WES

T E

ND

CLEV

ELA

ND

MID

LAN

D

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TAL L

AKE

PARK

ER

PARK

HU

NTE

R S

TREE

T

GA

LEN

A S

TREE

T

MILL

STR

EET

HYMAN AVENUE

DURANT AVENUE

MAIN STREET • HIGHWAY 82

HALLAM STREET

BLEEKER STREET

FRANCIS STREET

FIRST STREET

TEERTS H

CSIMR

AGM

ON

ARC

H

STRE

ET

ASP

EN

STRE

ET

SECO

ND

STREET

FOU

RTH STREET

FIFTH STREET

THIRD

STREET

SMUGGLER STREET

NORTH STREET

NEAL STREET

GIBSON AVENUE

LONE PINE ROAD

RED

M

OUNTAIN ROAD

Bike Trail

Fo ot Bridg e

Foot BridgeThe St. Regis

WheelerOperaHouse

The

Inn

Pitkin CountyCourthouse

AspenGroveMall Cooper

Ave Mall

HymanAve Mall

Silver Queen Gondola The Little Nell

Quad Chair

Lift 1A

& Recreation CenterRed Brick Arts

N

2

M o u n t H a y d e n

Preferred Stein Eriksen Lodge

The Little Nell

Sonnenalp Resort of Vail

Park Hyatt Beaver Creek Resort & Spa

Ritz-Carlton Bachelor Gulch

Four Seasons Resort Jackson Hole

1

2

3

4

5

6

V A L U E E N H A N C E M E N T O P P O R T U N I T I E S

22

G U E S T R O O M A N D M E E T I N G S P A C ER E N O V A T I O N

The St. Regis Aspen has benefited from numerous capital projects over the last several

years. A new owner will have the opportunity to take the Hotel to an even higher level

through a soft goods and meeting space renovation. This enhancement will enable the

Property to increase rates due to the upgraded product which will ultimately close the

RevPAR gap with competitors such as the Little Nell, and drive further profitability to

the bottom line. A strategic investment is validated in such a high-barriers-to-entry market

such as Aspen and will provide long term returns.

R E P R O G R A M F O O D A N D B E V E R A G EO U T L E T S

Several opportunities exist to reprogram the Property's current food and beverage outlets,

resulting in higher average checks as well as enhanced operating efficiency.

O P T I M I Z E R E T A I L S P A C EP R O G R A M

The St. Regis Aspen is an iconic asset whose profile is enhanced through high-end retail

tenants that complement the Property's dimension of luxury while concurrently being

indigenous to the Aspen surroundings. Current tenants include Aspen Sports, the area’s

premiere ski rental provider, and Aspen Outfitting, the preeminent provider of fly fishing

and shooting sports for nearly 40 years.

Ownership is in the process of considering additional retail leases which a new owner will

benefit from the added cachet and retail income. Potential tenants include:

◆ European-branded coffee shop

◆ Nationally-recognized, high-end gift shop

The Property also contains underutilized retail space that could be converted to a higher

revenue producing use such as food and beverage or meeting space.

A S S E T M A N A G E M E N T

A new owner will have the opportunity to implement aggressive asset management

strategies to drive revenues and further enhance the Property’s operating margins.

F I N A N C I A L A N A L Y S I S

23

O V E R V I E W

The following financial projections are based on 2007 year-end and November 2008

year-to-date performance.

R O O M S

JLL estimates average daily rate to stabilize at $532 in 2008 dollars at a 67% occupancy. This

level of ADR can be achieved through a soft goods and meeting space renovation in 2009,

and thus, the Hotel will experience a heightened level of rate growth thereafter.

The stabilized ADR is further supported by the strong rate lift in the resort ski market being

generated by newly renovated hotels such as the Park Hyatt Beaver Creek. Rooms expense

has been stabilized at approximately $138 per occupied room (“POR”) in 2008 dollars, or

approximately 26% of rooms revenue.

F O O D A N D B E V E R A G E

An amount of $219 POR has been projected for food and beverage, which includes revenue

from banquets and catering of the Hotel’s 20,000 square feet of meeting space, restaurant,

Shadow Mountain Lounge and the seasonal Pool Lounge. Food and beverage expense has

been stabilized at 86% expense margin that is in-line with historical performance.

M I N O R O P E R A T I N G D E P A R T M E N T S

Minor Operating Departments include Telecommunications, Garage, Gift Shop, Business

Center and Guest Laundry Departments. An amount of $18 POR in 2008 dollars has been

projected for this line item with an associated expense of 110% based on historical

performance.

R E N T A L & O T H E R I N C O M E

Rental and Other Income includes Remede Spa rental, concessions, cancellation and

attrition fees, in-room movies and other miscellaneous income. This line item has been

stabilized at $61 POR in 2008 dollars with no associated expense.

A D M I N I S T R A T I V E A N D G E N E R A L

Administrative and General expenses have been stabilized at $15,400 on a per available

room (“PAR”) basis in 2008 dollars, factoring in 1.8% of the total annual sales in credit card

discount. This is approximately 8.0% of total revenues stabilized and is in line with other

comparable hotels.

S A L E S A N D M A R K E T I N G

Sales and Marketing expenses have been stabilized at $13,200 PAR in 2008 dollars, in line

with historical performance and comparable properties.

U T I L I T I E S A N D R E P A I R S A N D M A I N T E N A N C E

Utilities expenses have been stabilized at 2.5% and are in line with the historical results of

the Property. Repairs and Maintenance has been stabilized at $7,100 PAR. This is slightly

lower than the Hotel’s historical levels and in line with comparables.

MANAGEMENT FEES , CAPITAL RESERVESA N D I N C E N T I V E M A N A G E M E N T F E E S

Base management fees and capital reserves have both been estimated at 4% of total

revenues. In addition to the base management fee, an incentive management fee has been

calculated as 20% of Adjusted Gross Operating Profit (calculated as Gross Operating Profit

less Management Fees, Real Estate Taxes, Insurance, Rent and FF&E Reserve) after an

8% owner’s priority return (calculated as 8% of purchase price).


24

ST. REGIS ASPEN HISTORICAL CASH FLOWS

2004 2005 2006 2007 2008 A/F through Nov

Available hotel rooms 137 174 179 179 179 Available room nights 50,050 63,535 65,335 65,335 65,514 Occupied room nights 34,853 38,188 42,385 43,456 41,692

Occupancy 69.6% 60.1% 64.9% 66.5% 63.6%Average Daily Rate $431.94 $416.90 $446.34 $490.13 $514.28 RevPAR $300.79 $250.58 $289.55 $326.00 $327.28

($,000s) Amount Ratio% Amount Ratio% Amount Ratio% Amount Ratio% Amount Ratio%

REVENUESRooms $15,054 62.4% $15,921 58.5% $18,918 62.0% $21,299 62.2% $21,441 62.0%Food & Beverage 6,276 26.0% 8,109 29.8% 8,055 26.4% 9,115 26.6% 9,207 26.6%Minor Operating Dept 1,580 6.6% 1,361 5.0% 1,295 4.2% 1,450 4.2% 1,167 3.4%Rent & Other 1,206 5.0% 1,847 6.8% 2,232 7.3% 2,362 6.9% 2,785 8.0%Total Revenues 24,116 100.0% 27,237 100.0% 30,501 100.0% 34,226 100.0% 34,601 100.0%

DEPARTMENTAL EXPENSESRooms Expense 4,597 30.5% 5,326 33.5% 5,639 29.8% 6,055 28.4% 5,808 27.1%Food & Beverage Expense 6,378 101.6% 7,278 89.8% 7,480 92.9% 7,872 86.4% 8,029 87.2%Minor Operating Dept Expense 1,821 115.3% 1,461 107.3% 1,451 112.0% 1,390 95.9% 1,320 113.1%Rent & Other Expense 132 11.0% 179 9.7% 332 14.9% 538 22.8% 0 0.0%Total Departmental Expenses 12,929 53.6% 14,244 52.3% 14,901 48.9% 15,855 46.3% 15,156 43.8%Total Departmental Income 11,187 46.4% 12,993 47.7% 15,599 51.1% 18,371 53.7% 19,445 56.2%

UNDISTRIBUTED OPERATING EXPENSESAdministrative & General 2,268 9.4% 2,145 7.9% 2,720 8.9% 2,771 8.1% 2,931 8.5%Sales & Marketing 1,860 7.7% 1,900 7.0% 2,039 6.7% 2,381 7.0% 2,401 6.9%Property Operations and Maintenance 1,599 6.6% 1,277 4.7% 1,408 4.6% 1,460 4.3% 1,352 3.9%Utilities 536 2.2% 663 2.4% 651 2.1% 567 1.7% 720 2.1%Total Undistributed Expenses 6,263 26.0% 5,985 22.0% 6,818 22.4% 7,179 21.0% 7,404 21.4%Gross Operating Profit 4,924 20.4% 7,009 25.7% 8,782 28.8% 11,191 32.7% 12,040 34.8%Management Fee 965 4.0% 1,089 4.0% 1,220 4.0% 1,369 4.0% 1,384 4.0%Income Before Fixed Charges 3,959 16.4% 5,919 21.7% 7,562 24.8% 9,822 28.7% 10,656 30.8%

FIXED CHARGESReal Estate Taxes 589 2.4% 683 2.5% 415 1.4% 622 1.8% 665 1.9%Insurance 166 0.7% 138 0.5% 159 0.5% 269 0.8% 240 0.7%Rent 125 0.5% 158 0.6% 168 0.6% 197 0.6% 217 0.6%Total Fixed Charges 880 3.6% 979 3.6% 742 2.4% 1,088 3.2% 1,121 3.2%EBITDA* $3,080 12.8% $4,940 18.1% $6,819 22.4% $8,734 25.5% $9,535 27.6%Less: Replacement Reserves (FF&E) 965 4.0% 1,089 4.0% 1,220 4.0% 1,369 4.0% 1,384 4.0%Net Operating Income** $2,115 8.8% $3,850 14.1% $5,599 18.4% $7,365 21.5% $8,151 23.6%

*USALI 10th Edition refers to "EBITDA" as "NOI" **USALI 10th Edition refers to "NOI" as "Adjusted NOI" Source: Hotel Management


25

ST. REGIS ASPEN 5 YEAR PRO FORMA

2009 2010 2011 2012 2013

Available hotel rooms 179 179 179 179 179 Available room nights 65,335 65,335 65,335 65,514 65,335 Occupied room nights 38,482 40,508 41,814 43,239 43,774

Occupancy 58.9% 62.0% 64.0% 66.0% 67.0%Average Daily Rate $527.71 $543.54 $576.15 $599.19 $617.17RevPAR $310.82 $336.99 $368.74 $395.47 $413.50

($,000s) Amount Ratio% Amount Ratio% Amount Ratio% Amount Ratio% Amount Ratio%

REVENUESRooms $20,307 63.4% $22,017 63.4% $24,091 64.1% $25,909 64.4% $27,016 64.4%Food & Beverage 8,669 27.1% 9,399 27.1% 9,994 26.6% 10,644 26.4% 11,099 26.5%Minor Operating Dept 725 2.3% 786 2.3% 836 2.2% 890 2.2% 928 2.2%Rent & Other 2,344 7.3% 2,515 7.2% 2,656 7.1% 2,812 7.0% 2,918 7.0%Total Revenues 32,046 100.0% 34,718 100.0% 37,577 100.0% 40,255 100.0% 41,962 100.0%

DEPARTMENTAL EXPENSESRooms Expense 5,585 27.5% 5,967 27.1% 6,283 26.1% 6,692 25.8% 6,978 25.8%Food & Beverage Expense 8,193 94.5% 8,279 88.1% 8,632 86.4% 9,194 86.4% 9,587 86.4%Minor Operating Dept Expense 870 119.9% 865 110.0% 920 110.0% 979 110.0% 1,021 110.0%Total Departmental Expenses 14,648 45.7% 15,111 43.5% 15,834 42.1% 16,865 41.9% 17,586 41.9%Total Departmental Income 17,399 54.3% 19,607 56.5% 21,743 57.9% 23,390 58.1% 24,376 58.1%

UNDISTRIBUTED OPERATING EXPENSESAdministrative & General 2,755 8.6% 2,869 8.3% 3,010 8.0% 3,152 7.8% 3,255 7.8%Sales & Marketing 2,217 6.9% 2,404 6.9% 2,581 6.9% 2,776 6.9% 2,894 6.9%Property Operations and Maintenance 1,314 4.1% 1,353 3.9% 1,394 3.7% 1,436 3.6% 1,479 3.5%Utilities 819 2.6% 880 2.5% 935 2.5% 996 2.5% 1,039 2.5%Total Undistributed Expenses 7,106 22.2% 7,506 21.6% 7,921 21.1% 8,360 20.8% 8,667 20.7%Gross Operating Profit 10,292 32.1% 12,101 34.9% 13,822 36.8% 15,031 37.3% 15,709 37.4%Management Fee 1,282 4.0% 1,389 4.0% 1,503 4.0% 1,610 4.0% 1,678 4.0%Income Before Fixed Charges 9,010 28.1% 10,712 30.9% 12,319 32.8% 13,421 33.3% 14,031 33.4%

FIXED CHARGESReal Estate Taxes 666 2.1% 686 2.0% 707 1.9% 728 1.8% 750 1.8%Insurance 227 0.7% 234 0.7% 241 0.6% 248 0.6% 256 0.6%Rent 283 0.9% 291 0.8% 300 0.8% 309 0.8% 318 0.8%Incentive Management Fee 0 0.0% 182 0.5% 474 1.3% 665 1.7% 766 1.8%Total Fixed Charges 1,176 3.7% 1,394 4.0% 1,721 4.6% 1,950 4.8% 2,089 5.0%EBITDA* $7,834 24.4% $9,318 26.8% $10,598 28.2% $11,470 28.5% $11,941 28.5%Less: Replacement Reserves (FF&E) 1,282 4.0% 1,389 4.0% 1,503 4.0% 1,610 4.0% 1,678 4.0%Net Operating Income** $6,552 20.4% $7,929 22.8% $9,094 24.2% $9,860 24.5% $10,263 24.5%

*USALI 10th Edition refers to "EBITDA" as "NOI" **USALI 10th Edition refers to "NOI" as "Adjusted NOI" Source: Jones Lang LaSalle Hotels

D I S C L A I M E R

26

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and

constitutes part of the Evaluation Material (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in or acquisition of

the St. Regis Aspen, located in Aspen, Colorado (the “Hotel” or “Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent

of Starwood Hotels & Resorts Worldwide, Inc. (“Owner”), or its exclusive broker, Jones Lang LaSalle Hotels (“JLLH”).

This Memorandum was prepared by JLLH based on information supplied by Owner and JLLH. It contains select information about the Properties and the real estate market but does not

contain all the information necessary to evaluate the acquisition of the Properties. The financial projections contained herein (or in any other Evaluation Material, including any computer

diskettes) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary

materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms

or a legal analysis of such documents.

While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither JLLH nor Owner guarantee its accuracy or completeness. Because

of the foregoing and since the Properties are being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material

solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the acquisition of the Properties without reliance

on this Memorandum or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified

parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither JLLH nor Owner

guarantee the accuracy or completeness of the information contained in this Memorandum or any other Evaluation Material provided by JLLH and Owner.

Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase either of the Properties or to terminate any negotiations with any party at any time with or without

written notice. Owner shall have no legal commitment or obligations to any prospective purchaser unless and until a written sale agreement has been fully executed, delivered and approved

by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived.

Owner has retained JLLH as its exclusive broker and will be responsible for any commission due to JLLH in connection with a transaction of either Property pursuant to a separate

agreement. JLLH is not authorized to make any representation or agreement on behalf of Owner. Each prospective purchaser will be responsible for any claims for commissions by any other

broker in connection with a sale of the Properties if such claims arise from acts of such prospective purchaser or its broker.

This Memorandum is the property of Owner and JLLH and may be used only by parties approved by Owner or JLLH. No portion of this Memorandum may be copied or otherwise reproduced

or disclosed to anyone except as permitted under the Confidentiality Agreement.

New York • Los Angeles • Atlanta • Chicago • Miami • San Francisco • Mexico City • Sao Paulo • London • Frankfurt • MunichParis • Milan • Barcelona • Madrid • Singapore • Jakarta • Tokyo • Beijing • Shanghai • Moscow • Dubai • Sydney • Brisbane

NEW YORK153 East 53rd Street32nd FloorNew York, NY 10022Tel + 1 212 812-5700Fax + 1 212 421-5640

ATLANTAMonarch Plaza, Suite 15053414 Peachtree Road NEAtlanta, GA 30326Tel + 1 404 995-8970Fax + 1 404 995-8971

SAN FRANCISCOOne Front Street#300San Francisco, CA 94111Tel + 1 415 395-4900Fax + 1 415 955-1150

CHICAGO200 East Randolph Drive43rd FloorChicago, IL 60601Tel + 1 312 782-5800Fax + 1 312 782-4339

LOS ANGELES355 South Grand AvenueSuite 3100Los Angeles, CA 90071Tel + 1 213 680-7900Fax + 1 213 680-4933

MIAMI2 Alhambra PlazaSuite 1220Coral Gables, FL 33134Tel + 1 786 662-6900Fax + 1 786 662-6901

Arthur Adler Thomas Fisher John StraussTel +1 212 812-5830 Tel +1 312 228-2972 Tel +1 213 [email protected] [email protected] [email protected]

152009 1-21-06 pmst regis aspen e-om final (1)

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