Outrigger Acquires Operation of the Ala Moana Hotel

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. October 14, 2008

HONOLULU, HI, January 3, 2007. ALM LLC, an affiliate of Outrigger Enterprises Group, announced today that it has acquired the hotel operations of the Ala Moana Hotel from Ala Moana Property Development LLC and Ala Moana Services, LLC, both of which are affiliates of Crescent Heights, Inc., for an undisclosed price.

The 1,154-room property at 410 Atkinson Drive will continue to be known as the Ala Moana Hotel. The acquisition includes the front desk, parking, restaurant spaces, meeting and banquet rooms and most retail and office spaces. The hotel's guest rooms are individually owned as condominium units and at least 1,000 of these rooms will be managed by ALM Management Services LLC, which is also an affiliate of Outrigger Enterprises Group, commencing in the first quarter of this year. Until then, Ala Moana Services, LLC, will continue to manage the hotel operations.

"The Ala Moana Hotel has been superbly renovated and is a proud addition to our fine family of accommodations in Hawaii and the Pacific," said David Carey, CEO of Outrigger Enterprises Group. "This landmark property adds more than 1,000 guest rooms to our inventory. It fits perfectly with our strategy of reaching out to leisure, business, and kamaaina travelers with quality moderately priced accommodations."

"We consider Outrigger to be one of the leading hotel-condominium management companies in the state of Hawaii and are extremely pleased that they will continue our initial strategic plan to reposition this hotel as a premier leisure and business hotel on Oahu," said Kathryn Acorda, regional marketing director for Crescent Heights. "Crescent Heights has put an extreme amount of time and financial resources into this property throughout the conversion process, from both a construction and sales standpoint, to ensure that it is not only renovated and converted properly, but also has the foundation to ensure long term success for the hotel."

Miami-based Crescent Heights acquired the Ala Moana Hotel in October 2004 and extensively upgraded the 36-story property before selling the individual hotel condominium units. Since September 2005, Outrigger Enterprises Group has provided advisory services for the management of the hotel.

"Crescent Heights has done a remarkable job of remodeling the property from top to bottom," said Carey. "The hotel has a clean, contemporary atmosphere, and offers a full range of new and upgraded guest amenities including a fitness center, lounges, retail shops, and banquet and meeting rooms. Its proximity to the Hawaii Convention Center, Ala Moana Center and Ala Moana Beach Park brings a new dimension to Outrigger's portfolio."

Carey says the transition in ownership and management should be seamless for guests, employees, and owners of the hotel units. "As the management consultant for the hotel, Outrigger Enterprises Group is very familiar with the property and understands the unique opportunities it presents. With our affiliate's operational team at the helm, the hotel will benefit from our business relationships, booking technology, and sales and marketing expertise," he said. "The Ala Moana Hotel has become well established as a result of more than three decades of doing business and is a name that can stand on its own."

As required by State law, a Plant Closing Notice was filed today with the State Department of Labor and Industrial Relations to reflect the change in ownership. ALM Management Services LLC will offer employment to all bargaining unit employees at the hotel when it takes over management of the hotel in the first quarter of this year. "The employees are the heart and soul of the Ala Moana Hotel and their service through the years is reflected in the good reputation of the hotel," said Carey.