Toll House Hotel Purchased by Larkspur Hotels, LLC

CORTE MADERA, Calif. (December 18, 2003) - Larkspur Hotels and Restaurants, one of the nation's fastest growing independent hotel companies, announced today that it has acquired the Toll House Hotel, located in Los Gatos, California.

"We are very excited to have purchased this wonderful hotel," said Karl Hoagland, chairman, president, and CEO of Larkspur Hotels, LLC. "The Toll House is a perfect fit with our strategy of acquiring, renovating and improving the operation of unique three and four-star independent hotels. We intend to invest more than $1 million in the renovation and upgrade of the Toll House Hotel and restaurant in 2004. Larkspur Hotels are known for genuinely caring, personalized guest service combined with superior guest amenities, and that tradition will continue at the Toll House. Along with our Larkspur Landing Hotel and the Pruneyard Inn, both located in nearby Campbell, the Toll House allows us to continue to build a strong presence in the South Bay."

"We love the Toll House Hotel and the town of Los Gatos," continued Hoagland. "The Toll House reflects the charm and character of this wonderful community, which is a natural fit with our company's culture. We are thrilled to become part of this community and our mission is to be responsible stewards of this hotel and to improve it for the town of Los Gatos and our hotel guests."

Nestled at the base of the Santa Cruz Mountains and just 12 miles from the San Jose International Airport, the Toll House Hotel features 115 beautifully appointed guest rooms and suites. Rooms range from Deluxe Rooms, which offer traditional hotel comforts, to two-room Parlor Suites, that feature a separate sitting room and veranda with scenic mountain views as well as a Home Theater system. All guest rooms feature high-speed Internet access, two-line phones, in-room coffee makers, irons, ironing boards, hair dryers and air-conditioning. Additionally, a complimentary continental breakfast is provided to hotel guests each morning.

The hotel also houses the full service Toll House Restaurant, serving guests and local residents continental cuisine with a California influence. Entree items range from steaks to fresh seafood. The restaurant is open seven days a week for breakfast and dinner and features a champagne brunch each Sunday. Adjacent to the restaurant is the casual Fireplace Lounge, which offers a full service bar and a place for guests to relax and wind down.

The Toll House features more than 4,000 square feet of state-of-the-art meeting and banquet facilities that can accommodate groups of up to 200 people for a variety of events. A full range of audio visual equipment, including overhead projectors, 7 foot screens and high-speed Internet connections, is available to support all business needs. The hotel's customized meeting offerings and personalized services have earned it an outstanding reputation, voted by Silicon Valley newspapers as "the best place to hold a small business meeting."

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