The Alexander Board Meeting24 September 2013

Review of Richfield operating structure and proposed positioning for Alexander.

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AGENDA

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About Richfield Hospitality

Branding Suggestions for The Alexander

Renovation Inspiration for The

Alexander

Next Steps & Operating

Suggestions

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RHI IS AN ESTABLISHED HOTEL MANAGEMENT COMPANY

Richfield was founded in 1968 as AIRCOA and since has managed over 600 hotels.

Richfield is an approved operator by the following franchise systems:

Richfield has over 40 years of experience as an owner & operator.

OUR OWNERSHIP STRUCTURE

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City Developments Limited (CDL)Stock Exchange of Singapore

US $7 Billion Market capitalization

City e-Solutions (CES)Listed on the Hong Kong

Stock Exchange

Millennium & Copthorne Hotels plc (M&C)

Listed on the London Stock Exchange

Swan Holdings USAPrivately Held Entity

Denver, CO USA

Richfield Hospitality, Inc (RHI)Privately Held Entity

Denver, CO USA

Whiteboard Labs, LLCPrivately Held Entity

Houston, TX USA

Sceptre Hospitality Resources llc

Privately Held EntityDelaware USA

Richfield and Sceptre exclusively serve the hospitality industry

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CDL IS ONE OF ASIA’S LARGEST GLOBAL REAL ESTATE PORTFOLIO

City Developments Limited has a market capitalization exceeding US $7 billion.JW Marriott Hong

Kong

Millennium Hilton Bangkok

Novotel Singapore

W Singapore

Millennium Hilton NYC

St. Regis Singapore

THE ALEXANDER OPERATING OPPORTUNITIES

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Engage Unit Owners

F&B and Catering

Transient & Group Sales

Branding & Awareness

Digital Marketing & Online Presence

Optimize Operations

Efficiency with Cost Controls

Optimal Hotel

Performance & Property Valuation

Opportunity: The Alexander hotel would benefit from affiliating with a globally recognized brand that maintains a collection of independently recognized hotels & resorts. This will not only improve hotel revenues and operations, but also increase property value.

INDEPENDNET BRAND AFFILIATIONS INVOLVING RHI

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The Mayfair London (Millennium)

The Casa Moderna Miami

The Bailey’s Hotel (Millennium)

Millennium Knickerbocker Hotel Chicago

The Joule, Luxury Collection

The Millennium Bostonian Hotel

Millennium Hotel Paris Opera

The Los Angeles Biltmore (Millennium)

BRAND AFFILIATION OPPORTUNITIES FOR THE ALEXANDER

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Affiliate with Millennium & Copthorne Hotels, plc

Support infrastructure:

Support Level Global Regional Property

Marketing (branding, PR & eCommerce / digital mktg)

Brand direction & commercial plans

NA team RHI with global & regional oversight

Sales Strategic outbound sales efforts (NY, LN, HK, SG)

NYC Regional team (LA, Boston, Chicago, NY)

RHI with global & regional oversight

Revenue Management & Distribution services

Global partnerships & KPI/OTA* agreements

NA oversight and support infrastructure

RHI with global & regional oversight

Loyalty Program M&C loyalty club(launched 2012, ~1M active members by 2014)

Procurement & Strategic Sourcing

Centrally directed to manage bid process & commercial terms with regional adaptation to support hotels

Finance, Legal, Human Resources & Risk Mngmt

Managed at global and NA regional levels & supported by Richfield Hospitality at property level

*Third party intermediary/online travel agent

Distribution Marketing Focus Design Focus

110 properties, 4 & 5 star rating, global gateway cities &

leisure destinations

International business and leisure travellers

Functional amenities, timeless designs (not trendy), locally indigenous with cultural flair

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THE ALEXANDER PROFORMA BY RICHFIELD HOSPITALITY

Opportunity: unleash hotel asset value & exceed fair market share. The Richfield proforma for the Alexander projects aggressive growth potential over the next 5 years.

Year 1 Year 2 Year 3 Year 4 Year 5

Occupancy 68.2% 72.5% 75.0% 78.0% 78.0%

Growth 6.3% 3.4% 4.0% 0.0%

ADR $265.50 $281.43 $295.50 $307.32 $319.61

Growth 6.0% 5.0% 4.0% 4.0%

RevPAR $181.07 $204.04 $221.63 $239.71 $249.30

Growth* 12.7% 8.6% 8.2% 4.0%

*US hotel industry performance for upper upscale hotels according to Smith Travel Research (trailing 12 month ending July 2013):

• ADR 4.3% growth• Occupancy 1.4% growth• RevPAR 5.8% growth

Note: Richfield Hospitality recognizes the importance of unit owner engagement & support in order to satisfy demand (consumer) as well as owner expectations. This proforma is predicated on ownership engagement of which is an operation priority for Richfield to earn the trust & support of the unit ownership group.

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POISED FOR GROWTH & FOCUSED ON FULL SERVICE OPERATIONS

Serving over 3,500 Hotels

     

Manages 20 propertieswith over 4,000 rooms

Clients include nearly 3,500 hotels & resorts worldwide

Over 100 properties in 18 countries

RICHFIELD IS FINANCIALY CONSERVATIVE

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Richfield Hospitality, Inc. is positioned for rapid growth and development via acquisitions, joint ventures and takeovers of distressed hotel assets.

CONSOLIDATED BALANCE SHEET CASH AND INVESTMENTS(MILLIONS OF DOLLARS)

Richfield carries no debt and has a solid history of strong cash positions.

2007 2009 2011 $25.0

$26.0

$27.0

$28.0

$29.0

$30.0

$31.0

$32.0

$33.0

$34.0

$35.0

$27.0

$29.0

$33.0

HR BENEFITS & PAYROLL

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Employee Benefits and Payroll

Insurance Placement Portfolio Program

Safety & Risk Management Program

Custom designed benefits package tailored to recruitment and retention needs

Proactive approach through timekeeping system to control expense

Remove administrative burden from property

Strive for individualized, exceptional service

Group pricing advantage

Spread of Risk

All administrative burden by Corporate

Turn Key Program – training, risk management, compliance

Safety Logic Tracking System

Centralized Claims Management

Our risk management and safety programs are structured to ensure compliance and minimize exposure.

Richfield centrally administers all benefits programs and payroll support.

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REAL-TIME FINANCIAL REPORTING

The RHI financial suite is a software application that allows us to remotely oversee and monitor all finances on an above-store basis without added labor at the property. All financial reporting is automated through seamless interfaces.

RHI provides complete financial transparency with real-time benchmarks.

The RHI CapEx philosophy is incorporated within the operating agreements & managed through ongoing budgeting, forecasting and procurements processes in accordance to brand standards, as well as hotel real estate best asset management practices.

CapEx

CORPORATE COMMUNICATIONS & TECHNOLOGY SUPPORT

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RICHNET

NEW METRICS = REPUTATION + PRICE + MARKETABILITY

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Consumer Pricing Market

LocalMarketplace

Metrics

Guest satisfaction index and brand standards compliance

Smith Travel Report’s market penetration indices

Smith Travel Report’s competitive set

New Marketplace

Metrics

Reputation Management

Pricing strategies and rate integrity

Geo-Marketplace competitive ranking

Other Stakeholder Indices:Brand GSS and MPSIOwner sentiment and ROIAssociate Satisfaction Index

CASE STUDY

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Richfield enhances services and implements a new rate strategy to raise occupancy rates at a once-underperforming hotel.

Strategy Results

Replaced lower ADR accounts with accounts that had higher rate and service expectations.

Increased RevPAR index 23.4% within 1 year.

Adjusted sales efforts and pricing strategies.

Jumped into TripAdvisor’s top 4 our of 187 hotels in Dallas market, up from #28 in June 2010.

Devised new employee incentive plans that rewarded guest satisfaction, brand quality, competitive rank, overall market share and financial performance.

Charlie Palmer restaurant rose to #3 on TripAdvisor among Dallas restaurants, up from #80 in June 2010.

The Joule Dallas, a Luxury Collection

EXISTING DESIGN

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MODERN CUBAN

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This style tends to be more casual and playful than the other two concepts. Modern, strong lines create the mood with hints of a nostalgic background peeking through with ornate, vintage accents. The majority of the palette remains natural and light with lots of artistic pops of color creating a fun, young attitude.

REFINED COASTAL

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The Refined Coastal concept lightly plays off the geographical aspects of the local sand and shore. Leaning towards a colonial feel without becoming too themed, it is a comfortable atmosphere elevated with quality finishes and quiet delicacy. It tends to be expected and craved by out of state guest looking for a true seaside experience.

TRADITIONAL LUXURY

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A concept that truly accentuates the existing millwork and stone work in the grand lobby would be Traditional Luxury. More formal and glamorous, adding a touch of sparkle and regency to the already traditional setting; the concept raises the experience to a higher standard.

DESIGN SCHEDULE

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THANK YOU

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Next Steps:Brand AffiliationOperations Shadow Management & Transition PlanOperations Task Force and Associate OnboardingSales, Marketing and Revenue Management StabilizationOngoing Owner Communications