Innisfree Hotels Chosen to Develop Eglin AFB Resort

Gulf front development will offer luxury accommodations to military and civilian visitors

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. December 28, 2009

PENSACOLA, FL, December 22, 2009) — Innisfree Hotels, Inc., in conjunction with Innisfree Development, has emerged as the winning firm selected to develop and operate a hotel and multi-use development on property owned by Eglin Air Force Base. The resort will be built on a 17 acre parcel of land currently known as Test Site A-5, located approximately 13 miles south of Eglin's west gate on Okaloosa Island in Fort Walton Beach. The property has approximately 600 feet of Gulf frontage.

Eglin Air Force Base hosted an Enhanced Use Lease industry forum in February 2008 to begin the process of selecting a developer. More than 100 individuals attended the industry forum, which was held at the Emerald Coast Conference Center located across the street from Test Site A-5.

Innisfree Development has partnered with DCK Corporation, a general contractor with extensive Department of Defense contracting experience, to create the Emerald Breeze Resort Group. DCK Corporation will provide general contracting services for the group, while Innisfree Development will develop the resort and Innisfree Hotels will manage the hotel. The master plan for the property was prepared by Lee Goodson of Bullock Tice Associates, a Pensacola architectural firm.

A draft environmental assessment released by Eglin's 96th Air Base Wing in late January stated, “The purpose of the proposed action is for the Air Force to make the best use of a high-value, real property asset that is currently underutilized. The proposal provides a revenue stream and improved mission-related capabilities while enhancing the local economy.” The radar operation facilities currently located on the site will be demolished, with passive USAF monitoring equipment to be located on the hotel's roof.

The current plans for the resort feature a 152-room hotel in the first phase of development, with two commercial outparcels available for lease. The hotel will feature a Gulf front swimming pool and direct access to the beach. Additional hotel rooms are planned for the site as the market needs increase.

Although the resort will be located on property owned by Eglin Air Force Base, the resort will be open to the general public, unlike the military-only Hale Koa Resort in Hawaii. Innisfree Hotels intends to offer thousands of room nights at deeply discounted rates for retired and active duty military of all branches of the service as an expression of gratitude for their service and in recognition of the partnership created with the United States Air Force.

The proposed $24 million development is expected to have a significant economic impact for Okaloosa County. Larry Sassano, president of the Economic Development Council in Okaloosa County, is optimistic about the proposed resort. “The Air Force's Emerald Breeze Enhanced Use Lease (EUL) project that recently was awarded to Innisfree Hotels and Innisfree Development will help create close to $50 million in economic impact for Okaloosa County and the surrounding areas. This 17-acre parcel is located along some of the most pristine beaches in Northwest Florida, and will provide a quality resort development for active duty military, reserve military service members and the general population. We are very proud of the fact that this project will be directed by a Northwest Florida development firm,” Sassano said.

Julian MacQueen, founder and CEO of Innisfree Hotels, Inc. and Innisfree Development, LLC, currently owns several area hotels including the Holiday Inn Express and Hilton Garden Inn in Orange Beach, Ala., as well as the Hilton Pensacola Beach Gulf Front and Hampton Inn on Pensacola Beach. Innisfree began construction of a 206-room Holiday Inn on Pensacola Beach in September, and broke ground on a new Hampton Inn and Suites in Orange Beach, Ala., in November.

Innisfree Hotels is a professional hotel management and development company currently expanding its portfolio of hotels and commercial properties. The company also provides professional management of full service hotels, limited service hotels, resorts and boutique hotels. Innisfree Hotels operates properties throughout the United States. For more information, visit: www.innisfree.com.