Kor Selling Campton Place Hotel in San Francisco

Taj Hotels Resorts and Palaces is the Buyer

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. October 14, 2008

SAN FRANCISCO, CA, April 5, 2007. Kor Hotel Group, the Los Angeles-based hotel operator known for its upscale properties in prime destinations, announces that it has entered into an agreement with India-based Taj Hotels Resorts and Palaces for the impending sale of Campton Place Hotel in San Francisco. Purchased by Kor eighteen months ago for $44 million as an ideal entry into San Francisco's desirable but difficult-to-access hospitality market, Campton Place is now being sold for $58 million.

"Our decision to pass this distinguished property into the capable hands of Taj Hotels Resorts and Palaces," said Brad Korzen, CEO and Founder of The Kor Group, "was based entirely on an opportunity that arose due to the property's rising real estate value. We stand behind the property's quality and are proud of Kor's achievements while owner and manager. During our supervision, the property appeared on Cond'e Nast Traveler's elite 'Gold List,' Travel + Leisure's 'Top 500 Hotels' and registered some of Kor's highest customer satisfaction scores. We are sorry to see Campton Place leave our portfolio, but believe the decision is in the best interests of both Kor and the hotel."

Kor Hotel Group's primary direction over the next few years is multi-pronged: continue to focus on the international expansion of its Viceroy and Tides brands, move beyond its inception as a boutique hotel operator and enhance its signature "urban retreat" properties. As a 1909 landmark property on Union Square and home to a renowned, four-star destination restaurant, Campton Place's identity as a San Francisco institution is profound. It is Kor's belief that transitioning the hotel to a Kor-branded property would have detracted from its unique character and diluted the special place it holds in San Francisco heritage.

Although initially seeking a third-party management partner to direct the hotel's operations, Kor accepted Taj's impressive offer confident that the purchase would best optimize the property's competitive situation. Given Taj's high-end market positioning and its reputation as a luxury hotel operator, the company represents the best choice to serve an elite property such as Campton Place. Kor is pleased to pass the reins to such reputable new owners. .

Taj Enters the West Coast with 110-Room Luxury Hotel That Joins Taj Boston, The Pierre in New York as Third U.S. Property; More Acquisitions Planned

MUMBAI, India April 6, 2007 - Continuing its global expansion strategy, Taj Hotels Resorts and Palaces has entered into a definitive agreement to acquire The Campton Place, San Francisco, from the Kor Hotel Group for $58 million. The potential acquisition will expand Taj's U.S. presence to three luxury properties.

Announcing the transaction, Raymond Bickson, CEO and managing director of Taj Hotels, said "We're thrilled to add this exceptional San Francisco hotel to our growing collection of luxury properties in the U.S., continuing our worldwide expansion of the Taj brand. With an acquisition of The Campton Place, we can now offer business and leisure travelers our signature Taj hospitality in the top U.S. gateways of New York, Boston and San Francisco. The Campton Place has enjoyed an enviable reputation throughout its 24-year history, and we aim to enhance its stature in the city when we assume ownership on April 30."

The Campton Place, San Francisco will become the company's third hotel in the U.S. In 2005, Taj Hotels entered into a lease agreement to operate and manage The Pierre on New York's Central Park. Taj Hotels also assumed full ownership of the 1927 Boston landmark hotel overlooking the Public Garden at Arlington and Newbury streets, now known as Taj Boston, in January 2007. The company plans to acquire luxury hotels in other gateway cities in the U.S. and worldwide.

The acquisition, when completed, will not result in any job losses or large-scale personnel changes, and Taj will honor all previous bookings for hotel rooms, restaurants and banquets.