lawyers inns proposal

1

Lawyers Inns Proposal

2

Lawyers InnsProposal

Table of Content

• Title page - pg 1

• Table of content -pg 2

• Overview -pg 3

• External Rendering - pg 4

• Internal Rendering - pg 5

• Floor Plans- pg 6

• Single Room Plan pg- 7

• Single Room Internal Rendering- pg 8

• Amenities Program - pg 9

• 24 hour Video Conference Room - pg 10

• 24 hour Deposition Room - pg 11

• 24 hour Virtual Library - pg 12

• 24 hour Gym - pg 13

• Bar & Grill - pg 14

• Pro Forma - pg 15-17

• List of 30 Cities for Lawyers Inns Hotels - pg 18

• Map of 30 Cities for Lawyers Inns Hotels - pg 19

• Team Members - pg 20-23

• Strategic Partners - pg 24-31

3

Lawyers InnsProposalOverview

Lawyers Inns is a new concept in hotels designed to serve attorneys and various affiliated

users of hotel services. These properties will be targeted to guests who need accommodations convenient

to county, federal and state courthouses. These would be located in over 30 key cities with high volume

courthouse activities throughout the United States. There is a real need for hotels that will cater to this

important niche market .

The Lawyers Inns will provide the attorney with larger SMART Rooms, excellent steak house

on site, upscale bar and lounge area. A 24 hour concierge service providing local stenographic services,

research, paralegal, local corresponding law offices and video conferencing.

There will be a virtual law library, various conference rooms, large meeting rooms for

depositions with video capability, continuing education, panel discussions, mock trial rehearsal facilities

and meeting venues.

There is one lawyer for every three hundred citizens in the United States and courthouses

such as New York City, Broward County Florida to name a few are locations that are key to the market.

4


External Rendering

5


Internal Rendering

6


Floor Plans

7


Single Room Plan

8


Single Room Internal Rendering

9


Amenities Program

24 hour Room Service Bar & Grill for Breakfast, Lunch and Dinner 24 hour Video Conference Amenities 24 hour Deposition Conference rooms/ Mock Rehearsal Court room 24 hour Virtual Law Library 24 Business Center Low Carbon Footprint Model Upscale Bathroom Fixtures Anti-theft Warning System 24 hour gym with Sauna and Steam

10


24 hour Video Conference Room

11


24 hour Deposition Room

12


24 hour Virtual Library

13


24 hour Gym

14


Bar & Grill Restaurant

15


Pro FormaDestination Hotel Partnerslawyers Inns Closing and Construction Costs

All amounts U.S. $ x 1,000

Land Purchase 985,000

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

Total Closing Costs 268,000

Soft Costs Per SF Per RoomArch 2.0% of Hard Costs 122,925Interior Design 1.0% of Hard Costs 61,463Engineering 0.5% of Hard Costs 30,731Expeditor 20,000Entitlements / Permits / Zoning Consultant 50,000Construction Manager 2.0% of Hard Costs 122,925Developer Fee 10.0% of Hard Costs 614,625Insurance 1.0% 9,000,000 90,000Pre-opening Expenses $1,000 per room 110,000Interest Reserve (avg balance $9.0M at avg int rate of 10%) 450,000Working Capital $2,000 per room 220,000Contingency 5.0% 94,633Total Soft Costs 1,987,302 $36.13 18,066

Hard Costs SF Per SF Per RoomNew Construction $95 55,000 5,225,000FF&E $6,000 per room 660,000Contingency 5.0% 261,250Total Hard Costs 6,146,250 $111.75 55,875

Total Hard and Soft Costs 8,133,552 $147.88 73,941

16


Pro FormaDestination Hotel Partners Lawyers Inns All amounts U.S. $ x 1,000

Year 1 Year 2 Year 3 Year 4 Year 5

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

RevenuesRooms 4,128 78.4% 4,523 77.7% 4,817 76.5% 5,129 76.8% 5,460 77.1%Restauraunt Food & Beverage 1,032 19.6% 1,187 20.4% 1,365 21.7% 1,433 21.5% 1,505 21.2%Telecom 55 1.1% 56 1.0% 57 0.9% 58 0.9% 59 0.8%Other Income 50 0.9% 53 0.9% 55 0.9% 58 0.9% 61 0.9%

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

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

Total Departmental Expenses 1,667 31.7% 2,045 35.1% 2,202 35.0% 2,275 34.1% 2,403 33.9%

Operating Department Income 3,598 68.3% 3,773 64.9% 4,091 65.0% 4,402 65.9% 4,680 66.1%

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

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

Gross Operating Profit 2,545 48.3% 2,581 44.4% 2,833 45.0% 3,067 45.9% 3,264 46.1%

Fixed ExpensesManagement Fees 158 3.0% 175 3.0% 189 3.0% 200 3.0% 213 3.0%Insurance 60 1.1% 66 1.1% 73 1.2% 80 1.2% 88 1.2%Land Lease 1,050 19.9% 1,082 18.6% 1,114 17.7% 1,147 17.2% 1,182 16.7%Real Estate Tax 81 1.5% 89 1.5% 98 1.6% 108 1.6% 119 1.7%Reserve for capital replacements 105 2.0% 175 3.0% 252 4.0% 267 4.0% 283 4.0%

Total Fixed Expenses 1,455 27.6% 1,586 27.3% 1,726 27.4% 1,803 27.0% 1,885 26.6%

Cash flow before Debt Service 1,090 20.7% 995 17.1% 1,107 17.6% 1,264 18.9% 1,379 19.5%

17


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

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

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

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

DCR 2.63 2.40 2.67 3.04 3.32IRR 29%

18


30 top cities for Lawyers Inns

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

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

19


US Map for Lawyers Inns

20


Team MembersPresident and CEO of Destination Hotel Partners, LLC a global hotel development company

specializing in hotels, resorts, and mixed-use development. Vice Chairman CEO of China Topsun Hotels

International Group Ltd., a Chinese based joint venture hotel development company. Vice Chairman CEO

of Goldstone Hospitality Group LLC, a New York based joint venture hotel development company.

James Bates has a long and successful track record in the hospitality industry for over 35

years. His innovative and dynamic approach to building brands, developing new product and executing

excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior

management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels

and Resorts, Helmsley Hotels, Boutique Hotels & Resorts International as well as several independent

properties and projects.

Mr. Bates began his career in Beverly Hills, California at the Beverly Hills Hotel, Beverly

Wilshire Hotel, and The Beverly Hilton Hotel.

James Bates has served on several advisory boards including: Travel Industry Association of

America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best Western

International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE We Love

New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing

Association International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates has

served on numerous Convention and Visitors Bureaus Boards of Directors and advisory boards worldwide;

and has participated on numerous panels and guest speaking engagements worldwide including NAFEO

Conference, Nixon Peabody IPED Conference and White House Initiative on HCBU’s, and Shangri La Asia

Conference.

Destination Hotel Partners, LLC,

James C. Bates, President & CEO

21

Mr. Campiglia is an established member of the American Institute of Architects, A fellow of the Frank Lloyd Wright Foundation, certified member of the National Architectural Review Board and is licensed to practice Architecture in New York, New Jersey, Connecticut and California.

He has worked as a Senior Architect for the international firm of Ellerbe Becket Architects. He maintains his practice as President of TCA Architecture, a professional Architectural Administrative Practice in New York City.

Currently Mr. Campiglia is a consultant to Destination Hotels Partners, LLC, Lawyers Inns LLC, Canyon / Agassi, Columbia University, Emblem Health Insurance, Mercy College and Ann Taylor Corporation. He has extensive experience in both building renovation and new construction, and has developed designs for Beaver Creek Ski Resort in Colorado, Woodlands Inn in Houston Texas, Kiahuna Village in Kawai, Hawaii, Squaw Valley and various resorts.

Mr. Campiglia has received awards for his work with the New York City Center for Abused Children for the design of Brooklyn Children’s Advocacy Center, a Merit Award for the Museum of Santa Barbara Design Competition and recently received the Albert Meiniker Award for the design of a room for a child with spastic quadriplegia.


Team Members

Thomas Campiglia,Architect

22


Team Members

With 30 years of experience in operating and designing

kitchens, bars, concessions and serveries across the country, in the

Caribbean and Europe, Gary Jacobs has a long history of addressing

both the pre- and post construction demands of all levels of foodservice

operations. In designing a facility, he is as concerned with first cost, fit

and flow as he is with durability, adaptability and ease of long term

maintenance. With a long and distinguished list of clients that he has

built over the years, Gary has been able to learn from the best, and has

identified the elements common to all successful operations.

Among the designers and architects he has collaborated

with are Rockwell Group, Jeffrey Beers International, Bogdanow

Partners, Ten Arquitectos, Costas Kondylis & Partners and Yabu

Pushelberg.

Gary Jacobs

23


Team Members

Allen Ostroff has over 25 years of experience as the Managing

Director of Prudential Insurance Company’s Realty Group and Prudential

Securities where he provided a wealth of experience in structuring

acquisitions, development, and asset and financial management. He

created a $3.6 billion hotel equity portfolio and a $1 billion shopping center

portfolio.

His expertise and successes in overseeing investments and

operations in 4-5 star hotels representing 30,000 rooms and 175

restaurants adds significant management depth and focus on the core

issues of control, efficiency, and value maximization. Mr. Ostroff knows

the hotel business trade, having led the key due diligence process and

financial structuring in over 200 acquisitions. Prior to joining Prudential,

Mr. Ostroff served as the General Manager of the 2,000 plus room New

York Hilton, Operations Manager at New York’s famed Waldorf Astoria,

and Group Vice President of Americana Hotels.

Allen J. OstroffAllen Ostroff

24


Strategic Partners

Horwath HTL - Hospitality Consultant JP Morgan Chase - International Bank Ernst & Young - Accounting Norton Rose LLP- Legal Jacobs, Doland & Beer - Food Service Design Hotel Dynamics, LLC - Owners Representative Buy China Direct - FF& E Consultant

25


Strategic Partners

Horwath HTL

Horwath HTL is the largest specialist consulting network in this sector,

with 50 offices in 39 countries. Our unrivalled global reach is matched by a unique

depth of knowledge and experience gained from thousands of projects over many

years, in all kinds of economic climates.

We remain the number one choice for hotel and real estate companies,

as well as financial institutions looking to invest in the industry. Whatever and

wherever your project, we offer the reassurance of an internationally consistent

quality of service combined with local solutions.

26


Strategic Partners

JP Morgan Chase

JPMorgan Chase is one of the oldest financial institutions in the United States.

With a history dating back over 200 years, here's where we stand today:

We are a leading global financial services firm with assets of $2.3 trillion.

We operate in more than 60 countries.

We have more than 240,000 employees.

We serve millions of consumers, small businesses and many of the world's most

prominent corporate, institutional and government clients.

We are a leader in investment banking, financial services for consumers, small

business and commercial banking, financial transaction processing, asset

management and private equity.

Our stock is a component of the Dow Jones Industrial Average.

27


Strategic Partners

Ernst & Young

Ernst & Young is a global leader in assaurance, tax, transactions, and

advisory service. Our 167,000 people are united by our shared values, which

inspire our people worldwide and guide them to do the right thing, and our

commitment to quality, which is embedded in who we are and everything we do.

Ernst & Young is committed to doing its part in building a better working world

for our people, for our clients and for our communities.

28


Strategic Partners

Norton Rose LLP

Norton Rose is a leading international legal practice. We offer a full business law

service to many of the world’s pre-eminent financial institutions and corporations from offices in

Europe, Asia, Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing

how our clients’ businesses work and understanding what drives their industries is fundamental to

us. Our lawyers share industry knowledge and sector expertise across borders, enabling us to

support our clients anywhere in the world. We are strong in financial institutions; energy;

infrastructure, mining and commodities; transport; technology and innovation; and

pharmaceuticals and life sciences.

On June 1, 2013 Norton Rose will join forces with leading U.S. law firm Fulbright &

Jaworski L.L.P. to form Norton Rose Fulbright. With 3800 lawyers and 54 offices, including 11 in

the USA, Norton Rose Fulbright will be one of the largest global legal practices, with significant

depth of expertise in the world’s leading business and financial centers.

29


Strategic PartnersJacobs, Doland &Beer

Jacobs, Doland &Beer is a New York City based foodservice design firm

specializing in the planning and construction of all segments of commercial

foodservice and hospitality venues, both across the U.S. and overseas.

Jacobs, Doland &Beer specializes in developing back- and front- of house

foodservice solutions. Since one cannot thrive without the other, we use an integrated

approach to foodservice design to bring our clients’ concepts to life. We strive to meet

our clients’ needs - timelines, budgets, foodservice program sustainability - without

sacrificing the quality of the end result, whether designing retail operations or high-

throughput production kitchens. From initial concept development, through design and

implementation, Jacobs, Doland &Beer design specialists work closely with owners,

chefs, architects and engineers through all phases of new construction and renovation

projects.

30


Strategic PartnersHotel Dynamics

Hotel Dynamics represents the hospitality industry's top experts in asset

management, financing, owner's representation and construction management.

Hotel Dynamics will strive to maximize the value of your asset and capital through

extensive due diligence for acquisition, re-branding and repositioning, property

renovation, new construction and asset management.

Our Team will bring unmatched expertise to all phases of the asset's

lifecycle for a wide array of clients. The process starts with conducting due diligence

that will enable asset owners to make the right acquisition or development decisions.

We then transition our skills to managing the asset and formulating a plan to

reposition the asset for long-term profitability. In the event that the repositioning

decision includes any form of construction or brand PIP, we can seamlessly plan and

implement the construction and renovations.

31


Strategic PartnersBuy China Direct

BCD is a multinational company based in Guangzhou, China with offices in US,

Central America, and independent agents in South America, South Africa and Australia.

Our company objective is to be the leading world wide building materials supply chain by

providing factory direct materials straight to the developers' door steps at tremendous

savings.We specialize in interior finishes and decorative building materials ranging from

kitchen cabinets, bathroom vanities, tubs, toilets, showers, taps and faucets, doors,

windows, ceramic, porcelain, glass and stone tiles to wood flooring and other decorative

essentials.

We aim to give our clients the competitive advantage in todays ever difficult

market by adding a global perspective and allowing small to mid size companies to order

direct from the factories. We are your partners from the moment we start to work together.

We provide manufacturing, sourcing, QC, CAD design and other logistic services direct to

your doors step.

lawyers inns proposal

Documents

hour gym pg

hour deposition room

lawyers inns hotels

hour virtual library

overview pg

internal rendering pg

single room plan pg

bar grill pg