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KOR HOTEL GROUP TO SELL DISTINGUISHED CAMPTON PLACE HOTEL IN SAN FRANCISCO TO INDIA-BASED TAJ HOTELS RESORTS AND PALACES

-- Decision reflects prime real estate opportunity and secures significant profit following eighteen-month ownership --

April 2007 (Los Angeles) – Kor Hotel Group, the Los Angeles-based hotel operator known for its upscale properties in prime destinations, announces that it has entered into an agreement with India-based Taj Hotels Resorts and Palaces for the impending sale of Campton Place Hotel in San Francisco. Purchased by Kor eighteen months ago for $44 million as an ideal entry into San Francisco's desirable but difficult-to-access hospitality market, Campton Place is now being sold for $58 million.

"Our decision to pass this distinguished property into the capable hands of Taj Hotels Resorts and Palaces," said Brad Korzen, CEO and Founder of The Kor Group, "was based entirely on an opportunity that arose due to the property's rising real estate value. We stand behind the property's quality and are proud of Kor's achievements while owner and manager. During our supervision, the property appeared on Condé Nast Traveler's elite "Gold List," Travel + Leisure's "Top 500 Hotels" and registered some of Kor's highest customer satisfaction scores. We are sorry to see Campton Place leave our portfolio, but believe the decision is in the best interests of both Kor and the hotel."

Kor Hotel Group's primary direction over the next few years is multi-pronged: continue to focus on the international expansion of its Viceroy and Tides brands, move beyond its inception as a boutique hotel operator and enhance its signature "urban retreat" properties. As a 1909 landmark property on Union Square and home to a renowned, four-star destination restaurant, Campton Place's identity as a San Francisco institution is profound. It is Kor's belief that transitioning the hotel to a Kor-branded property would have detracted from its unique character and diluted the special place it holds in San Francisco heritage.

Although initially seeking a third-party management partner to direct the hotel's operations, Kor accepted Taj's impressive offer confident that the purchase would best optimize the property's competitive situation. Given Taj's high-end market positioning and its reputation as a luxury hotel operator, the company represents the best choice to serve an elite property such as Campton Place. Kor is pleased to pass the reigns to such reputable new owners.

About Kor Hotel Group

The Kor Group is a privately held real estate investment, development and management firm that is redefining the concept of home with its distinctive hotel and residential properties. Kor Hotel Group, the hospitality division of Kor, holds a diverse property portfolio and manages both its own assets and non-owned hotels under third-party management agreements. Properties include Viceroy Santa Monica and Viceroy Palm Springs, Avalon Hotel and Maison 140 in Beverly Hills, The Tides South Beach, Chamberlain West Holly wood, Campton Place San Francisco, Loden Vancouver, The Tides on Mexico's Riviera Maya and Villa del Sol resort in Zihuatanejo on the Mexican Pacific Coast. A new Resorts & Residences division unites Kor's hotel and residential expertise with ground-up broad-scale projects both nationally and internationally. Currently under development are two residential resort complexes in Miami, Viceroy Icon Brickell and Viceroy South Beach, two on Mexico's Riviera Maya, Viceroy Riviera Maya and The Tides Playa del Carmen, as well as Kor's initial overseas venture, Viceroy Anguilla in the British West Indies. A timely integration of Kor Hotel Group's residential and hotel development visions, these projects represent the next evolution of the Kor mission.