Lawsuit Filed Against Sunstone Hotels Investors Inc., Sunstone Hotel Investors, LLC, Sunstone MacArt

. October 14, 2008

LOS ANGELES, CA, July 29, 2005. Canal Street Grande Inc., (Canal) registered owner of United States trade names and marks of "The Sutton Place Hotel", has today filed a lawsuit in the Los Angeles Federal Court against Sunstone Hotels Investor Inc., Sunstone Hotel Investors, LLC, Sunstone MacArthur LLC and Fairmont Hotels and Resorts (U.S.), Inc. for adulterating, marketing and illegally using "The Sutton Place Hotel" name in connection with Sunstone's hotel located at 4500 MacArthur Boulevard, Newport Beach, California.

"There is no agreement between Sunstone, Fairmont and Canal to license the use of The Sutton Place name and Sunstone has acknowledged that. Yet, Sunstone and Fairmont continue to represent the hotel to the trade and public as The Sutton Place Hotel and with staff informing callers that due to the current hotel not being up to Fairmont standards, the hotel will remain The Sutton Place till early 2006 when renovation is completed," said Charles Woo, Executive Vice President/COO of Canal Street Grande Inc. and President of The Sutton Place Grande Hotels Group. "These representations have left our company with no choice but to bring a lawsuit and seek an immediate restraining order and injunction against Sunstone and Fairmont to stop them from further misusing and damaging The Sutton Place Hotel name."

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