Del Mar Hotels, Inc

Del Mar Hotels Success Metrics

• Del Mar Homewood Suites by Hilton - Completed
• Del Mar Hilton Garden Inn - Completed
• Identify sites for three additional Hotel projects
  (Homewood or Hilton Garden Inn)
• Measures of success

   - return on equity
   - repeat investors

Del Mar Hotels, Inc.

Joe Simone:

• Entrepreneur, Developer, Real Estate Asset Manager Simone has developed several successful real estate projects as general partner and has skills in project management, marketing, entitlements, capital raising and finance.

Robert Rauch:

• Entrepreneur, Developer, Hotelier, Educator Rauch has developed several hotel projects as general partner and/or advisor and has skills in hotel management and marketing, public speaking and writing.

Projects Completed

• Del Mar Marriott, developed, 284u
• Hilton Garden Inn Carlsbad, developer assist, 162u
• Hilton Hotel San Diego, developer assist, 253u
• Hilton Hotel Santa Clara, developer assist, 280u
• Palm Terrace Apartments, acquisition and rehab, Las Vegas, NV, 135u
• Simone Ventures Apartments, acquisitions and developed,
  San Diego, CA, 120u
• Monte Vista Apartments, acquisition and rehab, Poway, CA, 26u

Del Mar Hotels – San Diego North

Criteria for evaluating venture opportunities

Reasons for Failure

• POOR MANAGEMENT/BRAND
• OLD LIMITED-SERVICE HOTELS
• HIGHLY LEVERAGED HOTELS
• OVERBUILT MARKETS
• INADEQUATE RISK MANAGEMENT

Market Analysis

• Opportunity & Feasibility Analysis
• Competitive supply (current/proposed)
• Demand Generators
• Community Receptivity
• Smith Travel reports and other independent analyses
• Market Validation

Del Mar Hotels is currently evaluating other sites/projects
San Diego High Potential Opportunities

• Del Mar Hilton Garden Inn – 85u + specialty retail
• Coronado Island – 180u + marina
• Little Italy – 150u+
• Downtown Business District – 250u+
• Balboa Park Renovation – 100u+

Del Mar Hotels Value Added Partnerships
Del Mar Hotels, Inc.

• Expertise in Hotel Industry and Commercial Real Estate financing, development, management, and ownership
• Asset Management from acquisition to sale or exchange
• Financing and Risk Management
• Marketing Orientation with a Bottom Line focus
• Professional Hotel and Property Management
• Investors/Partners’ complete cash-out or long term ownership

DEVELOPMENT PROCESS

• Identify Opportunity
• Land Acquisition & Entitlement
• Conceptual Design
• Product/Branding
• Capital Structure
• Project Team
• Development Cycle
• Pre-opening Marketing
• Operations/Management