Nikki Beach Expands Luxury Hotel and Resort Division

Leading luxury lifestyle brand to open signature properties in five countries

. October 14, 2008

FEBRUARY 13, 2007. Nikki Beach, one of the world's leading lifestyle and entertainment brands, has announced its plans for expansion into the luxury hotel and resort industry. Following the success of its international brand of luxury beach clubs and restaurants in seven countries, the company soon introduced a series of additional lifestyle and multi-media divisions including Nikki News, Nikki Clothing, Nikki Music, Nikki Furniture, Nikki VIP and Nikki Style magazine.

The launch of the newly formed company, Nikki Beach Hotels & Resorts, will mark a new era in the history of the international Nikki Beach brand with the development of eight new hotels and beachfront resorts across five countries. Each hotel and resort destination will carry the Nikki Beach brand that has become the hallmark of the company for the last 10 years, providing a unique entertainment experience for the international jet-set and celebrity crowd in some of the world's most prestigious locations.

Nikki Beach Hotels & Resorts is a unique hotel concept that combines five- star hotel service, design and accommodations with exclusive entertainment in a resort-style environment. Joint venture hotel and resort projects, worth an estimated value of more than $500 million, are currently in development in eight locations including: Reno (Nevada); Sal (Cape Verde, Africa); Sao Vicente (Cape Verde, Africa); Playa del Carmen (Mexico); Panama City (Panama); Playa Blanca (Panama) and Portimao (Portugal).

Many of the Nikki Beach Hotels & Resort locations will be condo-hotels, allowing developers and their respective sales forces to use the Nikki Beach brand identity to market high-end properties to the affluent buyer. The Nikki Beach Hotels will be located in metropolitan areas and will cater to the business traveler, while the Nikki Beach Resorts will focus on the luxury leisure traveler. Several of the flagship hotels will also feature a casino.

Nikki Beach Hotels & Resorts will offer an exclusive range of five-star amenities and services including personalized in-room check-in and check-out system, private butler service, 24-hour concierge service, VIP Ultra Lounge, personalized in-room music selection and 24-hour maid service and pillow menu. All Nikki Beach Hotels & Resorts will feature the signature Nikki Beach guest room design.

As part of the personalized hospitality service, all guests will have the luxury of being met at the airport by a Nikki Beach host before being transported by limo to their destination. A private butler will accommodate every need during the stay, whether it's booking a custom spa treatment or arranging a quick flight by private helicopter to the nearby ski resort.

"Moving into the hotel business was a natural progression of our lifestyle brand," comments Jack Penrod, founder of Nikki Beach. "People who love Nikki Beach didn't have a cool place to stay while visiting our beach club locations. We are now filling that void by offering a complete turnkey service. It made sense to offer our valued customers the complete Nikki Beach luxury lifestyle experience."

Nikki Beach Hotels & Resorts comes just 10 years after the Penrod family created Caf?? Nikki, a garden restaurant on Miami Beach. Over the past decade, the Nikki Beach brand has expanded from the flagship South Beach hot spot to locations in St. Tropez, St. Barth, Marbella, Marrakech, New York City, Cabo San Lucas, Puerto Vallarta and Sardinia. Catering to the ultra-VIP and jet- set crowd, the Nikki Beach brand has become synonymous with world-class entertainment in the world's sexiest locations.

"Nikki Beach Hotels & Resorts bridges the current gap in the lodging industry for mixed-use developers and hotel owners," comments Gary Sims, President of the Nikki Beach Hotels division. "With the Nikki Beach brand we have combined 5 Star level of service with a fun and exciting entertainment atmosphere, which allows developers to differentiate their product in the marketplace. For hotel owners, Nikki Beach offers an exciting alternative to the current mature hotel brands that generate marginal profits."

Nikki Beach is now raising equity for phase two of the development of its hotels and resorts business. Target markets for additional brand expansion include: New York City, San Diego, Moscow, Ibiza, Dubai, the Greek Islands, London, Madrid and Miami, FL.

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