View Web Site:

The Westin Lake Las Vegas Resort & Spa

View Web Site:

Sawgrass Marriott Golf Resort & Spa

Summary of Key Performance Indicators

RevPAR performance remained strong through the end of 2011 and into the first part of 2012. As expected, the balance between rate and occupancy has been maintained, with each component contributing roughly half of the growth on a national basis. Supply growth remains in check, running at an annual rate of less than 1%, while demand continues to expand at record levels. As will be discussed below, not all of this can be attributed to the usual macro drivers of employment and GDP, but the risk remains that if the economy falters, hotel performance will not reach expectations.

The regional trends that developed during 2011 are also continuing. San Francisco and Miami continue to lead in RevPAR growth, with markets such as Houston, Hawaii and Los Angeles also turning in consistently strong performances. Washington DC and other markets highly dependent on government business such as Norfolk VA continue to lag. Some markets such as Phoenix, Dallas and New Orleans were affected by one-off events that disproportionately affected the numbers, while others such as Orlando and San Diego seem to be recovering from significant supply increases in the 2008-2010 period. Finally, it appears that the Las Vegas lodging market is showing signs of life. Although most properties there do not report to Smith Travel because their revenues are distorted by gaming comps, we believe that occupancy is back to where it was before the large new resorts (including Aria and Cosmopolitan) were added, and room rates are also trending back upwards. However, not all is well in Sin City, as the ultra high rollers that these properties were designed to attract seem to be heading to places such as Macau, which has been showing 30%+ year over year growth for each of the past two years.

Source: Smith Travel Research, Raymond James US Research

The performance of major brands that are operated by publicly traded hotel companies continues to closely track the national trends, although as has been the case for the past several quarters, the Starwood brands (Sheraton, Westin, Luxury Collection, W and Meridien) have outperformed their peers.

Source: Company earnings releases

Outlook

Most of the key industry analysts have nudged their 2012 RevPAR estimates higher. PWC is now estimating 6.5%, while PKF is at 6.1% and Smith Travel is a more conservative 4.3%. Guidance issued by publicly traded lodging companies is also in the 5 to 7% range. These are all close to the high end of the ranges that were suggested a few months ago, and while the 2012 forecasts are off by 100 bp or more from where they were a year ago, it is noted that 2011 came in a little stronger than expected (8% vs. a 7% consensus at the beginning of the year). We recently attended the Americas Lodging Investment Summit (ALIS) conference in Los Angeles, and noticed a cautiously optimistic overall sentiment, which is a contrast to the “irrational exuberance” that these folks usually have at this point in the cycle. Speaking of which, the hotel cycle is often compared with baseball, as in “what inning do you think the recovery is in?” If you asked that question at ALIS, most people would say that we are in the second or third inning. However, this analogy is flawed because no one wants to talk about the contraction portion of the cycle. Back at the last peak (mid 2007), most people would have said that we were still in the 7^th or 8^th inning, so I guess what happened is an earthquake hit the stadium and the game was called, because in 2008 and 2009 they all said that we haven’t come up to bat yet.

Seriously, there continue to be two schools of thought here, with the more conservative analysts citing European weakness and continued anemic GDP growth (still forecast in the 2-3% range vs. the 4-5% range typical for recovery periods) as the principal causes for concern. They were surprised at the industry’s strength in recent months, saying that for some reason hotel demand has “decoupled” from the macro growth drivers.

On the other hand, the more bullish analysts say that demand has not decoupled, but is merely returning to normal levels. PWC recently issued a study that correlated hotel demand with GDP over a long period, and claims that the current trend is more representative. Another factor is the increasing gap between the “haves” and “have-nots,” with the theory being that the “haves” (both individuals and corporations) are the ones that have the discretionary income to spend on travel. This is borne out by the lagging performance of economy hotels vs. the luxury and upscale segments. We have seen increasing anecdotal evidence that while companies are not throwing around money on incentive events like they did in the past, they are certainly spending more than they did a year or two ago. We have heard, for example, that Facebook IPO closing parties are currently being planned that will rival those thrown at the height of the tech bubble.

Transactions

Transaction pace is still running below the first half of 2011. Recent deals have been dominated by New York City REIT acquisitions, with pricing still very strong (cap rates are still in the range of 5-6% on trailing and 7-8% on future/stabilized income). REIT’s are starting to work themselves back into the market, as their share prices have rebounded 50% off their October 2011 lows. Private buyers are being very selective, generally sticking to major international gateway markets, and pretty much ignoring secondary or even suburban locations. There have been a number of distressed asset sales of mid-price hotels at very low prices (<$30K per key) in NH, Texas, Iowa and Ohio. Everyone is still waiting for the much-anticipated glut of REO’s to hit the market, but as operating fundamentals have improved, many of the hotels are taking advantage of extensions to work themselves out. However, there are two factors which will start to become more important, one being the limit of how far special-serviced CMBS loans can be extended (three years at the most) and also the threat of higher tax rates may prompt owners of so-called legacy assets with a low basis to sell during this calendar year. Significant deals are summarized in the chart on the following page.

Public Company News

IPO, Financing, Mergers and Acquisitions

• Ashford REIT restructured approximately $200MM of mortgage debt which was due in December 2011, paying it down by about 10% and extending it until March 2014. New coupon will be L+450 and 85% of cash flow will be swept to further pay down principal.
• Strategic Hotels bought back about $85MM of its preferred stock, which represented about 22% of its outstanding shares, in an effort to improve its capital structure
• Starwood officially completed its corporate headquarters relocation from White Plains NY to Stamford CT. They also announced that they are purchasing a non-controlling stake in Germany’s Design Hotels AG, a consulting and sales firm with over 200 European independent hotel clients.
• HPT closed on its previously announced acquisition of Sonesta, which included hotels in Cambridge MA and New Orleans and the acquisition of Sonesta’s management company by an affiliate. They also redeemed their 8.875% preferred stock and issued $275MM of new 7.125% preferred shares
• Host Hotels elected Walter Rakowich to their board, increasing the size from eight to nine. Rakowich is co-CEO of Prologis, a major industrial real estate developer. They also increased the size of their credit facility from $600MM to $1.0Bn
• Hersha refinanced a $27MM loan on a Washington DC hotel. The new loan matures in 2015 with a two year extension, and has a fixed rate coupon of 3.79%. The LTV on this asset is approximately 50%. They are also attempting to acquire the Rittenhouse Hotel in Philadelphia. Hersha says they are still conducting due diligence, but there are rumors that the deal is unwinding.
• LaSalle elected Jeff Foland to their board, replacing Kelly Kuhn. Foland is an executive at United Airlines who is in charge of their loyalty programs. Kuhn’s reason for departure was unusual, and garnered a few chuckles from the media. According to LaSalle’s SEC filing, “Ms. Kuhn resigned due to her recent promotion at Carlson Wagonlit Travel and relocation to Singapore, which would have made her regular attendance at company board of trustees meetings difficult.” I guess they never heard of Skype. They also increased the size of their credit facility from $450MM to $750MM.
• Marriott increased their share buyback program to 40 million shares; it was previously only 5 million. They bought back 43.4 million shares for $1.4Bn in 2011.
• Pebblebrook refinanced the Hotel Monaco Washington with a $46MM fixed rate loan at 4.36% for five years. This represents about 60% the price it paid for the property in 2010.

Earnings

A summary of major hospitality companies that have reported Q4 earnings so far this season is as follows:

*Generally excludes unusual items; figures are for FFO on REITS

In general, as has been the case for the last several quarters, most companies, or at least those who have reported so far, have met or exceeded Street earnings estimates. Although Marriott’s EPS was below the consensus, this was due to the spin off of their timeshare business, which occurred in November and made the results difficult to compare. Hyatt’s EPS for the quarter was distorted by a $28MM one-time tax benefit; their EBITDA and other metrics were in line with estimates.

Guidance for 2012 remained largely unchanged on the upper end, but most companies have tightened their ranges, reflecting a somewhat more optimistic view of the domestic economy. Note that most of the larger publicly traded companies are typically more heavily weighted to big-box hotels in top 25 markets, and are more dependent on business transient and groups as opposed to leisure travelers, so given the current state of the market, these companies would be expected to outperform the industry as a whole. However, given the recent runup in prices (see below), many analysts now consider the industry to be fully valued and are tending towards neutral to underweight ratings, with the exception of a few special circumstances which they think will result in higher stock prices, notably Hersha (due to its concentration in the “hot” sector of urban select service) and Ashford (due to upside in connection with last years’ acquisition of the Highland portfolio). Some analysts also like Summitt, who is consolidating in the select service secondary market area; as mentioned before, these properties are generally flying below the radar.

Stock prices

Prices for large cap full service hotel companies are generally up in the 10-15% range since the first of the year and 30-40% since bottoming last fall. By way of comparison, the Dow Jones Industrials are up about 5% for the year and 17% since September 30. This is consistent with the way that these stocks usually perform, leading the market on both the way up and the way down. As previously noted, this trend has enabled REIT stocks to find their footing and although no new equity issuances are on the immediate horizon, they have been able to clean up their balance sheets by refinancing debt at lower interest rates and using their free cash and credit lines to start acquiring again.

Publicly traded hotel company stock performance (US based companies with market capitalization in excess of $1Bn)

Source: Yahoo! Finance

Other Industry News

• New ADA regulations are scheduled to go into effect as of March 15, which could have an impact on the industry. Particularly onerous are requirements related to swimming pool access which may require expensive remodeling to provide sloped entries and/or automatic lifts.
• The 773 room Helmsley Hotel in New York, purchased last year by Host Hotels, will be rebranded as a Westin after a $65MM renovation
• Several REITs, including FelCor and Sunstsone have announced plans to sell “non-core” assets so that they can concentrate on more upscale, urban properties
• In a sign that credit markets may be opening, Wells Fargo has announced that it is actively pursuing refinancing opportunities, with the $40-$60MM range in “gateway cities” being their “sweet spot.” They did not rule out loans for new construction, but pointed out that the approval process would be more rigorous.
• A group of major hotel brands, including Hilton, Marriott, Hyatt, Intercontinental, Choice and Wyndham, in an effort to fight back against discounting and the high commission rates charged by on-line travel agencies (OTA), have created a search engine called Roomkey.com which would compete against these other websites. This will be closely watched to see if it affects the amount of inventory available to the OTA’s. Perhaps coincidentally, Priceline recently aired a commercial where William Shatner apparently gets killed in a bus accident. Shatner should not complain, however, as he reportedly earned $600MM over the last 14 years for his efforts (a lot more than he made commanding a starship), and he still has a year to go in his contract, so he could be back.
• Hilton is still considering an IPO, but it says that the time is not yet right. They restructured their debt in 2010 and have been rapidly expanding their international base, as well as re-inventing their Doubletree brand (now tagged as “Doubletree by Hilton”) to be more attractive to franchisees. If market trends continue strong, however, look for the IPO to happen later this year.
• Marriott has doubled down on the Ian Schrager “Edition” brand. They plan to commit as much as $800MM of corporate funds in an effort to compete against W in the upscale “Lifestyle” segment. As noted above, their brands have been lagging in RevPAR growth.
• The Obama Administration has made an effort to streamline the visa process in order to attract more international tourists to the US, focusing on China and Brazil. If successful, this initiative is expected to positively impact several markets including Hawaii and Florida.
• Loews Hotels and Resorts recently named industry veteran Paul Whetsell as their new CEO, succeeding Jack Adler, who is retiring. Loews plans on continuing to invest in major US markets to grow from their present portfolio of 18 properties.
• Carlson Hotels and Rezidor Group formally announced their merger. Carlson has had controlling interest in Rezidor, who is the master franchisor for Radisson hotels in Europe and the Middle East since 1994.
• Hyatt is relabeling its extended stay brands (Summerfield and Sierra) into “Hyatt House,” and is aggressively expanding it in places like India and China.
• Bill Marriott (J.W. Marriott Jr.), who greatly expanded the company that his father created, stepped down as CEO, but will remain as Chairman. His successor, Arne Sorenson, is a long-time Marriott executive.
• In December, Host Hotels backed out of a deal to acquire the 888 room Washington DC Grand Hyatt, due to a drop in its stock price that made the deal uneconomic. They reportedly forfeited a $16MM deposit.
• Hilton terminated its franchise on the 2,950 room Las Vegas Hilton, which has been in financial trouble for a while. No official reason was stated, but the cost of upgrading to current Hilton brand standards was probably an important factor.

US Economy General Statistics

Key Economic Indicators

Sources: National Bureau of Economic Research; various government agencies including US Department of Commerce

Summary of Key Performance Indicators
The industry turned in a very solid performance in the third quarter, continuing on a pace of approximately 8% overall RevPAR growth. The contribution of ADR relative to occupancy improved- it made up almost half of the RevPAR growth, and a significantly higher proportion in key upper-end markets. Luxury continues to outpace the rest of the industry, and grew even faster in the third quarter than in the first two, while upper upscale and resort slipped slightly.

Regionally, Miami, LA and San Francisco continue to lead the pack, with consistently strong performances throughout the year. Orlando has also been steady, with very high demand growth (due primarily to the Harry Potter attraction) offsetting increased supply, while still sustaining decent ADR growth. Boston and Phoenix also had relatively good quarters, and New York has come back a little from a disappointing second quarter. Washington continues to lag, and Chicago has also weakened. Among the smaller markets, Nashville, Tampa and Minneapolis were strong in the 3^rd quarter, while St. Louis, Atlanta and Norfolk continue to be the weakest. New Orleans also showed a drop off, but this was mostly due to the spike in occupancy related to the crews cleaning up the BP oil spill last year. That market is still performing well. It should also be noted that St. Louis and Dallas will see at least a short term bump due to the baseball World Series.

Source: Smith Travel Research, Raymond James US Research

The performance of major brands that are operated by publicly traded hotel companies continues to closely track the national trends. Generally, the higher scale and more urban-oriented brands have achieved better performance. The Marriott full service brands have been lagging the overall market for over a year, as they appear to be losing share to Starwood brands and also to their own limited service brands. Courtyard, for example, had 9.5% RevPAR growth for the quarter.

Source: Company earnings releases

Outlook
Over the past several months, indeed since signs of weakness began appearing in the US economy in late spring, industry pundits have been divided into two camps regarding the outlook for 2012 and beyond. This has led to unusually large spreads in the range of forecasted results, even by individual analysts such as the highly regarded Mark Woodworth of PKF, who says that RevPAR will increase by 2.5% to 7.5% “depending on whether or not we go into a recession.”

One school of thought, which is largely composed of Wall Street analysts, speculators and other “momentum” players argues that since GDP, employment growth and consumer confidence have not grown as expected, this will ripple through to the hotel sector and cause a dramatic slowdown of growth, if not contraction of RevPAR. This has resulted in a large correction in hotel stock prices, especially in the REIT sector, as will be shown later.

On the other hand, there are many people (including Woodworth, who is just hedging his bet) who feel that lack of supply growth and strength on the corporate side will be enough to maintain decent, if not robust growth in hotel income and profits. Most of the folks on this side seem to be more directly connected with hotel operations, so it would seem that they have more credibility, and at least over the past few months the results seem to have borne this out, as indicated by the charts above. This camp cites some other evidence, some factual and some anecdotal, to support their contentions, such as the following points:

• No large-scale group cancellations have been noted, as was the case leading into the last recession. Convention calendars are strong in many major markets.
• Overall labor costs will hold steady due to high unemployment rates. While increased union penetration remains a threat, Washington gridlock has largely prevented policies such as card-check that would make it easier to organize.
• Continuing decline in home values does not materially affect the upper-end leisure travelers, as home equity is a less significant portion of their overall net worth
• Middle class workers (at least those who are still employed) still feel it is their right to take a vacation in a destination such as Orlando
• The current administration will do everything it can to prop up the economy in the months leading up to the election

Conversely, there are other arguments to support the pessimistic view:

• Airline capacity has continued to decline, and fares will rise, thus discouraging travel
• Historical knee-jerk reactions by operators to cut rates at the slightest whiff of trouble- for example, Hawaiian performance was doing great until the Japanese tsunami, but then they started madly discounting.
• The overall fragility of the economic situation, in that an unexpected shock (natural disaster, disease, war, etc.) could send it over the edge very quickly
• Increased “class warfare” tensions could lead to more AIG-effect fallout at high end hotels and resorts. Even the lower end is not immune as Gaylord Hotels (a major SMERF market player) got hammered after announcing disappointing Q3 earnings and reduced expectations for 2012 as their market segment is very price sensitive.
• On line travel agencies (OTA’s) are increasing their market presence and are forcing prices down as consumers shop for the best deals

There is obviously validity to many of the arguments on both sides, and everyone in the industry is anxiously holding their breath to see what develops. Right now, there does seem to be a bit more positive momentum in the economy as preliminary 3^rd quarter GDP was not as bad as expected, the stock market had a strong October and jobless claims seem to be holding steady, so right now we are somewhat bullish about 2012 prospects, but stay tuned.

Transactions
This is one area that has definitely felt the impact since the credit downgrade, as many deals have been pulled due to lack of financing. Except for the re-trade of the Cerebrus/Innkeepers portfolio (see below), and some recent smaller select service transactions, only one major public REIT deal was closed in the last three months; most of these were private sales.

Public Company News
IPO, Financing, Mergers and Acquisitions

• Ashford REIT issued $30MM of 9% preferred stock in October, with proceeds to be used for general corporate purposes. They also closed on a $105MM revolving line of credit in September
• Chesapeake Lodging added $50MM to their revolver, and lowered their overall interest cost.
• Chatham Lodging, in a joint venture with Cerebrus, recently closed on the bankrupt Innkeepers portfolio of 64 select service hotels. The deal was originally scheduled to close in August, but was pulled because the buyers cited a “Material Adverse Change” clause. After a contentious court battle, the price was reduced by about $100MM
• Strategic Hotels announced a buyback program for its 8.25% and 8.50% Preferred Stock issues at a slight premium to their original issuance prices. They will also pay accrued but unpaid dividends. Total value of this transaction will be over $400MM
• Diamond Rock entered into an agreement to sell three “non core” hotels to Inland America for $262.5MM ($185K per key). The hotels are Marriott or Renaissance branded and are located in Austin TX, Lexington KY and Atlanta. The transaction is expected to close by year end
• Felcor modified a CMBS agreement on $178MM of its outstanding debt to pay down $20MM of the balance and extend the facility for up to two more years
• Starwood is prepaying over $600MM of 7.875% notes due next year, including all interest and defeasance charges
• Hospitality Properties Trust announced that it would acquire two Sonesta hotels (Cambridge MA and New Orleans) for $150.5MM ($170K per key). In addition, its affiliated management company would be acquiring Sonesta’s management and franchise operations for a cash price of $31 per share (representing a premium of about 72% above its recent market price, but this stock is very thinly traded). HPT also renewed and extended a $750MM revolving credit agreement; at a base interest rate of LIBOR + 130 bp. Wells Fargo is the administrative agent
• Hersha announced that they will sell 18 “non core” limited service hotels to an affiliate of Starwood Capital Group for $155MM. ($81K per key). This price is an 8.4% cap on trailing 12 months NOI and a 10.3 multiple on TTM EBITDA
• Summit Hotels consolidated and refinanced about $120MM of mortgage debt, including $28MM of loans from ING that were called, and also issued $50MM of 9.25% preferred stock to pay down its revolving line of credit
• LaSalle Hotel approved a $100MM share buyback program
• Marriott’s board approved the previously announced spin-off of its timeshare business. Pricing and record date have not yet been set, but the new company has already begun trading on a “When Issued” basis
• Pebblebrook netted $82MM from the issuance of 8.00% preferred stock, about half of which will be used to pay down their revolving credit line.
• Red Lion acquired 10 previously leased hotels for a total of $37MM. These include many of the older Red Lions located in Oregon, Washington, Idaho and Montana. They also refinanced and expanded their credit facilities with Wells Fargo
• Sunstone refinanced its loan on the Doubletree Times Square. They paid down $90MM of the original $270MM principal; the new loan will bear interest at 3 month LIBOR + 325. They also sold the $90MM loan that they held on the Royal Palm hotel in Miami for a 12% discount, but still retains some earn-out rights on the sale of that property
• Wyndham hotels announced that Moodys upgraded their debt to investment grade (BAA3); it was previously at BA1. They already have an investment grade rating from S&P

Earnings
A summary of reported Q3 earnings for the some of the larger-cap companies is as follows:

*Generally excludes unusual items; figures are for FFO on REITS

In general, most companies met or exceeded Street earnings estimates. Guidance for Q4 remained largely unchanged, but as shown above, there is considerable uncertainty as to next year. Note that most of the larger publicly traded companies are typically more heavily weighted to big-box hotels in top 25 markets, and are more dependent on business transient and groups as opposed to leisure travelers, so given the current state of the market, these companies would be expected to outperform the industry as a whole.

Stock prices
Prices for large cap full service hotel companies are generally down about 10% since June 30 and 20% for the year to date, while limited service companies such as Choice have done relatively better. Some, such as Wyndham (not shown on chart) are actually up over 10% for the year. REIT stocks have rallied strongly over the past month; they are now, on average “only” down 18% for the year, whereas at the beginning of October they were down 35%.

Publicly traded hotel company stock performance (US based companies with market capitalization in excess of $1Bn)

Note- all prices adjusted for dividends paid
Source: Yahoo! Finance

Other Industry News

• Intercontinental Hotels announced plans to revamp its Crowne Plaza brand in a three phase program (“Freshen Up,” “Move Up” and “Shine”) over the next 3 to 4 years.
• Interstate Hotels, which is now privately owned, purchased Noble Management Group, which adds over 50 hotels and 9.000 keys to its operations.
• Overseas expansion by US-based companies continues, with Starwood, Carlson and others announcing deals in China, India, Turkey and other emerging markets
• Hard Rock is the first major chain to announce that it has entered into a partnership to develop a casino resort in Massachusetts under new legislation which is expected to be enacted this year. This property would be in Holyoke, an industrial city about 90 miles west of Boston. Up to three such casinos are expected to be built.
• A Miami Federal court denied Fairmont Hotel’s request for an injunction to reinstate it as manager of the Turnberry hotel. This continues a recent trend of courts supporting terminations of management agreements.
• Industry veteran Mark Lomanno left Smith Travel to join newBrandAnalytics, which provides business intelligence from social media customer feedback. This venture is backed by some of the biggest names in the industry, including Barry Sternlicht and Neil Shah from Hersha

US Economy General Statistics

Key Economic Indicators

Sources: National Bureau of Economic Research; various government agencies including US Department of Commerce

The hotel boasts a casino in the lobby, an outdoor pool, three 24 hour restaurants and 15 meeting rooms totaling 20,000 square feet.

Westin Las Vegas Hotel, Casino & Spa

The Boston Marriott Burlington completed a lobby and general rooms renovation in July 2010 and is home to the Summer Winter Restaurant which features fresh, local and seasonal ingredients – many of which are grown on site.

View the Web Site:
Boston Marriott Burlington

“This quarter has been strong, with positive growth for both Pyramid’s business development efforts and existing hotel and resort performance. We expect to see similar results throughout the remainder of the year,” said Warren Fields, Pyramid’s Chief Investment Officer.

“These new contracts also reinforce the value that owners place on our core Pyramid values. At the heart of how we approach business is balancing the needs of owners, partners, employees, guests and the communities in which we live and work in ways that provide superior returns to all,” said Jim Dina, Pyramid Chief Operating Officer.

The new hotel under management by Pyramid Hotel Group is the 459-room Hyatt Regency Woodfield-Schaumburg approximately 30 miles from Chicago, featuring 30,000-square-feet of function space, inventive French-inspired contemporary cuisine and two swimming pools.

The three new resorts will be managed by Pyramid Resort Group, the new division established in June to enable the company to more aggressively target the resort business segment and deliver value to resort owners. The resorts include:

• The Wigwam, an historic independent resort in Arizona dating to 1918 is a true landmark of  the Southwest, offering 331 casitas and suites, 54 holes of championship golf, a Red Door Spa by Elizabeth Arden and 45,000-square-feet of meeting space on more than 400 acres just 10 miles from Phoenix
• The 519-room Sheraton Keauhou Bay Resort & Spa, on 22 oceanfront acres in Kona, Hawaii, features water sports, the Big Island’s longest water slide, island-inspired  Ho’ola Spa, and more than 60,000-square-feet of indoor and outdoor meeting and event space
• The 343-room Westin Casuarina Resort & Spa sits on Seven Mile Beach in the heart of Grand Cayman, the largest of the three Cayman Islands, with daily activities for ages 4-12, Hibiscus Spa, and 69,000-square-feet of indoor and outdoor function space for meetings and events

About Pyramid Hotel Group
Pyramid Hotel Group is a privately held Boston-based hotel company with 69 hotels and resorts under hotel management and asset management, comprising more than 26,000 rooms and approximately 8,000 employees.  Pyramid Hotel Group provides hotel management, asset management and project management services to a vast array of hotel assets ranging from a 90-room limited-service hotel to world-class properties with more than 1,000 rooms. Pyramid Hotel Group is a franchisee of all major hotel brand companies, an operator of independent four- and five-star hotels and resorts, and is the fifth largest U.S. hotel management company as ranked by Hotel Business magazine.  www.pyramidhotelgroup.com

About Pyramid Resort Group
Pyramid Resort Group is a new division of Pyramid Hotel Group, the Boston-based hotel management, asset management and project management firm that is the 5th largest hotel management company in the U.S. Established in June 2011, Pyramid Resort Group is a smart business evolution to enable the company to more aggressively target the resort business segment to help resort owners achieve greater profitability and value. The resort team is led by Richard A. Holtzman, Senior Vice President, who brings more than 30 years in the resort industry and accolades such as “Resort Executive of the Year” to this role. He was previously vice president of DMB, an Arizona-based real estate company, where he had both management and asset management responsibilities, including serving as president of the Kukui’ula Development Company, a new resort residential community in Hawaii on the Island of Kaua’i.  Pyramid Resort Group is actively seeking management and asset management contracts in the U.S. and Caribbean and has the potential to co-invest in situations that it deems appropriate. www.pyramidhotelgroup.com

# # #

Media Contact
Sheila Donnelly & Associates
Babs Harrison
212-851-8425
babs@sheiladonnelly.com

The Wigwam, an historic property on more than 400 acres in the quaint village of Litchfield Park, just 20 minutes from downtown Phoenix, features 331 Western-style casitas and suites, 54 holes of championship golf, signature swimming pools, authentic Arizona-inspired activities, a range of inventive dining options, Red Door Spa by Elizabeth Arden, and 43,000-square-feet of inviting indoor and outdoor event space.

“We are delighted to add The Wigwam to our resort management portfolio,” said Richard A. Holtzman, Pyramid Resort Group Senior Vice President, Resort Operations and a long-time Scottsdale resident. “The Wigwam offers an unmatched collection of resort amenities, particularly its dedicated staff, dramatic Southwestern setting and outstanding collection of championship golf courses. We look forward to helping the resort continue to stand apart as a welcoming icon for a wide array of audiences and future generations.”

“The Wigwam has such a rich history. I’m honored to lead the team of hospitality professionals that will continue to restore this special resort as an inviting and sustainable beacon in the Litchfield Park and West Phoenix communities,” said George K. McGann, newly appointed Vice President, Managing Director and General Manager of The Wigwam.  “We look forward to every associate being vital members of the community and strengthening the role that The Wigwam plays in daily life for guests and residents alike.”

About The Wigwam
A designated “Historic Hotel of America,” The Wigwam is one of Arizona’s iconic landmarks. With over 80 years of history, a new era began in early 2011 as The Wigwam unveiled a $7 million renovation to include a new pool complex with both adult and family areas, new restaurants and bars featuring al fresco dining and entertaining areas, and a variety of new social areas and event lawns. Situated on an estate-like setting, The Wigwam spans over 440 acres and features 331 casita-style guest rooms, including 72 suites, crafted from distinctive adobe architecture.  The Wigwam also offers 54 holes of championship golf, a 25,000 square-foot Red Door Spa, four pools, and seven restaurants and bars. The Wigwam invites guests to create new traditions and lasting memories of their own by participating in a variety of daily activities from morning nature walks and Native American campfires to cooking classes, weekly farmer’s markets and more. The Wigwam is located in the affluent community of Litchfield Park, Ariz. in the West Valley of greater Phoenix. For more information, visit www.wigwamarizona.com or call (623) 935-3811 or (800) 327-0396.

About Pyramid Resort Group
Pyramid Resort Group is a new division of Pyramid Hotel Group, the Boston-based hotel management, asset management and project management firm that is the 5th largest hotel management company in the U.S. Established in June 2011, Pyramid Resort Group is a smart business evolution to enable the company to more aggressively target the resort business segment to help resort owners achieve greater profitability and value. The resort team is led by Richard A. Holtzman, Senior Vice President, who brings more than 30 years in the resort industry and accolades such as “Resort Executive of the Year” to this role. He was previously vice president of DMB, an Arizona-based real estate company, where he had both management and asset management responsibilities, including serving as president of the Kukui’ula Development Company, a new resort residential community in Hawaii on the Island of Kaua’i.  Pyramid Resort Group is actively seeking management and asset management contracts in the U.S. and Caribbean and has the potential to co-invest in situations that it deems appropriate. www.pyramidhotelgroup.com

# # #

Media Contacts
For The Wigwam:
Jenna Ernster
623-856-1097
jernster@wigwamarizona.com

For Pyramid Resort Group:
Sheila Donnelly & Associates
Babs Harrison
212-851-8425
babs@sheiladonnelly.com

The Westin Casuarina sits on Seven Mile Beach in the heart of Grand Cayman, the largest of the three Cayman Islands. Spacious accommodations offer marble baths and the signature Heavenly Bed® with ideal access to a wealth of activities for couples, families and corporate groups. The resort offers daily activities for ages 4-12, the tropical-inspired Hibiscus Spa, dining at Casa Havana, the island’s only AAA Four Diamond restaurant, and more than 18,000-square-feet of indoor and outdoor event space for meetings and events. A $6 million renovations program, anticipated soon, will add to the resort’s many charms.

“We are delighted to add Westin Casuarina Resort & Spa to our resort management portfolio,” said Richard A. Holtzman, Pyramid Resort Group Senior Vice President, Resort Operations. “We look forward to enhancing its exciting array of beachfront amenities to ensure that Westin Casuarina remains a top choice for all travelers to the Cayman Islands and the Caribbean.”

“I’m thrilled to join the team at this spectacular island resort,” said John Wagner, newly appointed Area Managing Director and General Manager, Westin Casuarina Resort & Spa. “The many planned additions promise to assist our team of outstanding hospitality professionals deliver an even greater level of experience for guests, residents and associates. The entire team at Westin Casuarina remains fully committed to and deeply involved in the daily life of the Grand Cayman community.”

About Westin Casuarina Resort & Spa

Stretching across eight acres along Seven Mile Beach on Grand Cayman Island, the award-winning 343-room Westin Casuarina Resort & Spa is the ideal spot to unwind. With the surf’s gentle rhythm and whispering palm trees to set the mood, this inspiring resort features every vacation and corporate meeting amenity. Most guest rooms offer breathtaking ocean-views. The grounds are home to the island’s largest fresh water swimming pool, the full-service Hibiscus Spa, an engaging kids’ camp, exhilarating water sports, and more than 9,000-square-feet of indoor and 60,000 square feet of outdoor event space for memorable weddings and corporate incentive programs.  Shopping and local attractions are steps away. For dining, select the intimate Casa Havana, a AAA Four Diamond restaurant, celebrated for its contemporary island cuisine with Cuban, South American and Caribbean influences; Ferdinand’s Caribbean Café for traditional and inventive Caribbean dishes; Tortugas for lighter fare poolside; Cafe Soleil with tempting coffees, ice cream and snacks; and 24-hour in-room dining. The hotel is expected to shortly unveil its $6 million renovations program, to include refreshed guest rooms, new teak furniture poolside and in restaurants, and new restaurant menus.  www.westingrandcayman.com

About Pyramid Resort Group
Pyramid Resort Group is a new division of Pyramid Hotel Group, the Boston-based hotel management, asset management and project management firm that is the 5th largest hotel management company in the U.S. Established in June 2011, Pyramid Resort Group is a smart business evolution to enable the company to more aggressively target the resort business segment to help resort owners achieve greater profitability and value. The resort team is led by Richard A. Holtzman, Senior Vice President, who brings more than 30 years in the resort industry and accolades such as “Resort Executive of the Year” to this role. He was previously vice president of DMB, an Arizona-based real estate company, where he had both management and asset management responsibilities, including serving as president of the Kukui’ula Development Company, a new resort residential community in Hawaii on the Island of Kaua’i.  Pyramid Resort Group is actively seeking management and asset management contracts in the U.S. and Caribbean and has the potential to co-invest in situations that it deems appropriate. www.pyramidhotelgroup.com

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Media Contacts
For Westin Casuarina Resort & Spa:
David H. Krech
954-452-3233
david.krech@westin-cayman.com

For Pyramid Resort Group:
Sheila Donnelly & Associates
Babs Harrison
212-851-8425
babs@sheiladonnelly.com

Set on 22 acres on scenic Keauhou Bay, every room at the Sheraton Keauhou Bay Resort and Spa  features spectacular ocean or mountain views, private lanais and the signature Sheraton’s Sweet Sleeper® beds. The property is celebrated as the home of the Big Island’s longest waterslide that spills into a freshwater pool complete with sandy-bottom children’s play area. Additional recreation options include ocean sports, tennis, basketball, volleyball and nearby golf. Its inviting tropical ambience includes the new Haleo Luau, the island-inspired Ho’ola Spa, inventive local dining, and more than 60,000-square-feet of indoor and outdoor meeting and event space, including the dedicated Bayside Chapel and Bayside Wedding Lawn.

“We are delighted to add Sheraton Keauhou Resort and Spa to our management portfolio,” said Jim Dina, Pyramid’s Chief Operating Officer. “We look forward to ensuring that the resort is a top choice for local resident kamaaina and visitors alike, whether they are on vacation, planning a memorable wedding or family reunion, or organizing a productive business meeting in this spectacular setting.”

“This is the perfect opportunity to refine an oceanfront gem in ways that match its spectacular setting and better engage the heartfelt spirits of our associates,” said Steven Lindburg, newly appointed Area Managing Director and General Manager of Sheraton Keauhou Bay Resort & Spa. “An important priority is that the entire team of dedicated hospitality professionals at Sheraton Keauhou Bay play active and rewarding roles in the Kona community in ways that resonate with our guests and area residents.”

A multi-million dollar guest room and public areas reinvigoration will soon be underway at this place of “new beginnings,” the Hawaiian meaning for Keauhou. Meanwhile, Sheraton Keauhou Bay Resort & Spa has added new cultural activities for guests and the public to enjoy, including complimentary twice-weekly guided tours of the cultural preserve area adjacent to the resort. The tours enhance guests’ appreciation and understanding of the area’s importance in Hawaiian history.

Other guest activities now include lei making, hula and story-telling around a shoreline fire pit while enjoying s’mores. Daily pastimes vary and might also include rubber duckie races down the slide, water volleyball, and arts and crafts. Sheraton Keauhou Bay Resort & Spa also debuted a new teens-only hangout called Club Le‘ale‘a (“fun”) with Xbox and Wii games. The resort has also revamped its locally-focused menus to better showcase the island’s bounty.

About Sheraton Keauhou Bay Resort and Spa
Situated on an ancient lava flow at Keauhou Bay, Sheraton Keauhou Bay Resort & Spa, a member of the Pyramid Hotel Group, offers 519 spacious guestrooms and suites featuring ultra-comfortable Sheraton Sweet Sleeper beds. The resort’s multi-level Manta Ray Super Slide & Pool and its 200-foot-long lava tube waterslide make water a central feature of the resort. From a viewing area at water’s edge, seeing Manta Ray dance their nightly ocean ballet adds a cherished memory to the visits of many guests. Ho’ola Spa offers indoor or ocean side patio treatments that are Hawaiian-inspired. Resort-wide wireless Internet access makes staying in touch a breeze as does The Link@Microsoft center. An adjacent convention center, weekly lu’au dinner and show, shopping and dining options on property and nearby along with a lovely Bayside Wedding Center and Chapel make Sheraton Keauhou Bay Resort & Spa a comforting and obvious choice for any traveler. Twitter: @KeauhouSheraton, or become a Sheraton Keauhou Facebook fan. Visit www.SheratonKeauhou.com

About Pyramid Hotel Group
Pyramid Hotel Group is a privately held Boston-based hotel company with 69 hotels and resorts under hotel management and asset management, comprising more than 26,000 rooms and approximately 8,000 employees.  Pyramid Hotel Group provides hotel management, asset management and project management services to a vast array of hotel assets ranging from a 90-room limited-service hotel to world-class properties with more than 1,000 rooms. Pyramid Hotel Group is a franchisee of all major hotel brand companies, an operator of independent four- and five-star hotels and resorts, and is the fifth largest U.S. hotel management company as ranked by Hotel Business magazine.  www.pyramidhotelgroup.com

Media Contacts
For Sheraton Keauhou Bay Resort and Spa:
Current Events Public Relations
Vicky Kometani
808-326-7820
Vicky@current-events.com

For Pyramid Hotel Group:
Sheila Donnelly & Associates
Babs Harrison
212-851-8425
babs@sheiladonnelly.com