Owners Name Dolce as New Management of Former Four Seasons, Aviara

Four Seasons Refuses to Relinquish Control of San Diego Resort

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. May 11, 2009

CARLSBAD, Ca, May 8, 2009 - Owners of a leading hotel investment and ownership group today announced Dolce Hotels and Resorts as the new management company of the former Four Seasons Resort Aviara ("Aviara"), a luxury resort property in north San Diego County, California. Dolce expects to take over the management and administrative functions of the resort at 1 p.m. Monday, May 11. The property will be managed as an independent luxury resort.

The owner, Aviara Resort Associates, announced that it selected Dolce following the termination of Four Seasons from its position as manager of the Aviara resort - amid allegations that Four Seasons breached its fiduciary duties in connection with the 329-room luxury property. The case will be closely watched in the hotel and investment community, as hotel owners seek greater transparency and financial responsibility from the management companies with whom they associate.

"The owners terminated Four Seasons because they lost trust and confidence in its management of their resort," says William A. Brewer, partner at Bickel & Brewer and lead counsel for the owner.

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Four Seasons Response:

TORONTO, ONTARIO -- 05/09/09 -- Four Seasons announced today that it has no intention to voluntarily relinquish its role as manager of Four Seasons Resort Aviara in Carlsbad CA. Four Seasons has managed the Resort since 1997.

Very recently, a dispute arose with regard to the 2009 operating budget for the Resort and the Owner's obligation to provide working capital necessary to fund debt service. That dispute is currently the subject of an arbitration proceeding, which Four Seasons fully respects and will abide by. Four Seasons has fulfilled all of its obligations under the relevant management agreements. Four Seasons intends to vigorously defend its rights in the arbitration process currently underway.

Four Seasons will also seek substantial damages from the Owner (which is beneficially owned Broadreach Capital Partners and asset-managed by Maritz, Wolff & Co.) and its counsel for their conduct in damaging the operation and reputation of the Resort and of Four Seasons.

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Owners terminated Four Seasons and the management agreement between the parties on March 29, 2009, but Four Seasons refused to acknowledge that termination - or relinquish control of the hotel property. A legal action was filed April 1 against Four Seasons in San Diego, seeking an injunction prohibiting Four Seasons from continuing to manage and operate the Aviara hotel. Also, the Owner has commenced arbitration proceedings against Four Seasons, seeking tens of millions of dollars in financial damages.

Dolce will now assume complete financial and managerial control of the resort. Employees are invited to meet with Dolce representatives to make arrangements for their continued employment at the resort.