RiverPlace Hotel Purchased by Larkspur Hotels, LLC

CORTE MADERA, Calif. (May 26, 2004) - RiverPlace Hotel, the luxury hotel on the Willamette waterfront, has been acquired by Larkspur Hotels, LLC, announced Karl Hoagland, chairman, president, and CEO of the company. Dave Murray, a veteran of the Portland hotel industry, will be the new General Manager, he added.

Hoagland says, "RiverPlace fits perfectly with our strategy to acquire distinctive, independent hotels on the West Coast. The exceptional design and quality of the hotel combined with its river front setting and views in downtown Portland make this a unique asset that cannot be duplicated. RiverPlace hotel's large number of established and loyal guests make this a wonderful acquisition for us. We consider this an investment in and commitment to Portland, Oregon and we are thrilled to be part of the Portland community. We are going to take great care of this wonderful hotel and further build guest satisfaction."

According to Hoagland, the hotel will maintain its four diamond rating. "RiverPlace is one of eight hotel properties in Portland at the four diamond level. It is part of what makes this such an attractive acquisition. We plan to broaden the appeal to include guests interested in a premium hotel experience at a good value."

RiverPlace is an innovative, mixed-use development serving as the gateway to the North Macadam/South Waterfront Urban Renewal area. In the same purchase, Larkspur Hotels also acquired Lucere Restaurant, the RiverPlace office building, the Esplanade shopping plaza, and the RiverPlace marina.

About Larkspur Hotels and Restaurants
Established in 1996, Larkspur Hotels and Restaurants is a rapidly growing hotel company based in Corte Madera, California. Larkspur owns and operates 20 hotels comprising three brands (Larkspur Landing, Hilton Garden Inn and its collection of three and four star independent hotels known as the Larkspur Collection) in suburban areas of Northern California and the Pacific Northwest. The company acquired the four-star RiverPlace Hotel in Portland, Oregon, in July 2003, the Toll House Hotel in Los Gatos, California in December 2003 and The Lodge at Tiburon in Tiburon, California in May 2004. In December 2004, Larkspur converted five existing hotels to its flagship Larkspur Landing brand, bringing the total number of Larkspur Landings to 11. The company also manages the Pruneyard Inn in Campbell, California. For additional information on Larkspur Hotels and Restaurants and its affiliates, visit www.larkspurhospitality.com.

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For more information please contact:
Jeff Rubenstein
Larkspur Hotels and Restaurants
415 945-5037