Art Factory Hotels Proposal

1. Art Factory Hotels Proposal PROPOSAL 1

2. Table of Contents PROPOSAL • Title page - pg 1 • Table of contents - pg 2 • Overview - pg 3 • External Rendering - pg 4 • Internal Rendering - pg 5 • Lobby Floor plan - pg 6 • Lobby Graphics - pg 7 • Typical Floor plan - pg 8 • Room Plan King Room - pg 9 • Room Plan Double Queen - pg 10 • Room Internal Rendering - pg 11 • Restaurant Elements - pg 12 • Amenities Program - pg 13 • Five year Pro Forma - pg 14-17 • List of 30 Cities for Arya Spa Hotels - pg 18 • Indian Map for Arya Spa Hotels - pg 19 • Team Members - pg 20- 25 • Strategic Partners - pg 26-33

3. Overview PROPOSAL ARYA Spa Hotels, a full service 3.5 to 4 star hotel brand, featuring a wellness spa, restaurant-café, and private in-room dining offering vegetarian cuisine, in an alcohol-free, smoke-free environment catering to 60% of Indian travelers seeking lodging that provides vegetarian meals in a family environment, recreational activities, and a state-of-the-art meeting/banquet facility. Average size would be 125 to 150 rooms. The hotel will be moderately-priced between high-line hotel properties and the older motel strips. It will target mid-level income guests, either corporate, transient groups or just traveling with their families, looking to stay at a reasonably-priced lodging facility catering strictly traditionally prepared “Sattvic Jain” pure vegetarian cuisine and serving alcohol-free beverages. ARYA shall fill an affordability niche, providing a safe family atmosphere not widely available in India. Initially, the ARYA Spa Hotel is planned for Ahmedabad, Mumbai, New Delhi, Shimla and Kerala. Expansion plans include franchised and corporate managed properties with the ARYA Spa concept and also other major U.S. brands as required, in partnership with local landowners, and expanding to major metro cities, building 30 hotels in the next 5 years. Perfectly positioned for raising funds and then converting that fund to a REIT or IPO after the first 5 properties are up and running after the first stable year.

4. PROPOSAL External Rendering

5. PROPOSAL Internal Rendering

6. PROPOSAL Lobby Floor Plan

7. PROPOSAL Lobby Graphics

8. PROPOSAL Typical Floor Plan

9. PROPOSAL Room Plan/Base Floor

10. PROPOSAL Room Plan/Base Floor

11. PROPOSAL Room - Internal Rendering

12. PROPOSAL Restaurant Elements

13. Amenities Program PROPOSAL • In Room Amenities: • Totally Wired SMART ROOMS • 42" LCD TV • SMART Automation Controls Air Conditioning, Lighting, Drapes with Keycard • ON AIR Wireless Data Streaming • Superdock Alarm radio for iPod • Multiple Charging Stations • Speaker IP Phone • 24 hour Room Service • Specialty Vegetarian Restaurant Serving Breakfast, Lunch, Dinner and Banquets • Alcohol Free Environment • State-of-the-Art Spa & Wellness Center • 24 Hour Fitness Center • Health & Nutrition Bar • Eco & LEED Certified Hotel • Upscale Bathroom Fixtures • Internet TV • Same Day Laundry Service • Video Conference System • 24 Hour Business Center

14. PROPOSAL Five Year Pro Forma

15. Five Year Pro Forma PROPOSAL

16. PROPOSAL Five Year Pro Forma 16

17. Five Year Pro Forma PROPOSAL

18. PROPOSAL Arya Spa Hotels in 30 Indian Cities

19. PROPOSAL

20. Executive Biographies Mr. Bates is President and CEO of Destination Hotel Partners. He is also Vice Chairman/CEO of DHP Asia LLC, a China-based joint venture hotel development company, and Vice Chairman/CEO of Goldstone Hospitality Group LLC, a New York-based joint venture hotel development company. Mr. Bates has a long and successful track record in the hospitality industry for over 35 years. His innovative and dynamic approach to building brands, developing new product and executing excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels and Resorts, Helmsley Hotels, Boutique Hotels & Resorts International, as well as several independent properties and projects. He began his career in Beverly Hills, CA at the Beverly Hills Hotel, Beverly Wilshire Hotel, and The Beverly Hilton Hotel. Mr. Bates has served on several advisory boards including: Travel Industry Association of America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best Western International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE We Love New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing Association International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates has served on numerous Convention and Visitors Bureaus Boards of Directors and advisory boards worldwide; and has participated on numerous panels and guest speaking engagements worldwide including NAFEO Conference, CHIC,  Nixon Peabody IPED Conference and White House Initiative on HCBU’s, and Shangri La Asia Conference.

21. Executive Biographies Mr. Ostroff’s 25 years as Managing Director of Prudential Insurance Company’s Realty Group provides immense stability and a wealth of experience in structuring acquisitions, development, asset management and financial structuring. His expertise and successes in overseeing investments as well as operations in four and five star hotels, either wholly owned or in joint venture, representing 30,000 rooms and 175 restaurants, adds significant management depth to focus on the core issues of control, efficiency and delivering profits. His profound knowledge of the hotel business allows him to lead the key due diligence process and financial structure in hundreds of acquisitions. Prior to joining Prudential, Allen served as the General Manager of the 1,000 plus room New York Hilton, Operations Manager at New York’s famed Waldorf Astoria and Group Vice President of Americana Hotels. His expertise in hotel operations and strict control of cash promises the delivery of maximum cash flow from operations. His professional affiliations include The American Hotel and Motel Association, New York University, Cornell University and the Culinary Institute of America.

22. Executive Biographies Henry Hewes, Chairman Destination Hotel Partners, LLC

23. Executive Biographies Mr. Chhatwal is a hotel veteran of 27 years specializing in hotel operations, finance, marketing, revenue management and food & beverage. His expertise in hotel development comes through extensive hands-on experience in hotel renovations, re-positioning mid-scale properties into lifestyle products during his tenure of 21 years with Hampshire Hotels and Resorts, New York City, which also included the opening of an upscale property in India. Mr. Chhatwal is developing hotel properties in India, The Middle East and Europe. A certified hotel administrator and a graduate of Salzburg Institute of Hotel Management in Bad Hofgastein, Austria, Mr. Chhatwal and his team introduced the tourism segment in State of Qatar while working at Sheraton Doha Hotel and Resort in the late 1980’s. His team pioneered developing the tourism infrastructure for the gulf state and introduced various tourist activities including desert safari, which still continues to be popular in the region.

24. Executive Biographies Patrick Parsons has over 15 years of experience in the Chinese real estate market and is widely recognized as one of the first true western developers in Beijing. He has worked with Beijing’s Tier 1 Chinese developers and has built strong international relationships with the Chinese government. Mr. Parsons has in-depth experience in research, marketing, sales, construction, and development. He has been instrumental in major apartment and office projects including villa complexes, 5-star hotels, and retail and mixed-use projects up to 1 million square meters. He has worked with and consulted for some of Beijing’s largest real estate developers. Recently, his main focus has been in the retail and hospitality industry. He has developed some of the most renowned retail and mixed development projects in Northern China varying from the top of the market with Ritz Carlton and brands such as Chanel and Gucci as well as mass market developments with 4-star hotels and brands such as Zara and H&M. He has been the pioneer of these projects.

25. Executive Biographies Mr. Campiglia is an established member of the American Institute of Architects, a fellow of the Frank Lloyd Wright Foundation, and a certified member of the National Architectural Review Board. He is licensed to practice architecture in New York, New Jersey, Connecticut and California. He has worked as a Senior Architect for the international firm of Ellerbe Becket Architects. He maintains his practice as President of TCA Architecture, a professional architectural administrative practice in New York City. Mr. Campiglia is a consultant to Destination Hotels Partners, LLC, Lawyers Inns LLC, Canyon/Agassi, Columbia University, Emblem Health Insurance, Mercy College and Ann Taylor Corporation. He has extensive experience in both building renovation and new construction and has developed designs for Beaver Creek Ski Resort in Colorado, Woodlands Inn in Houston, Texas, Kiahuna Village in Kauai, Hawaii, Squaw Valley, California, and various resorts. Mr. Campiglia has received awards for his work with the New York City Center for Abused Children for the design of Brooklyn Children’s Advocacy Center, and a Merit Award for the Museum of Santa Barbara Design Competition. He recently received the Albert Meiniker Award for the design of a room for a child with spastic quadriplegia.

26. Strategic Partners • Horwath HTL - Hospitality Consultant • JP Morgan Chase • Ernst & Young - Accounting • Norton Rose LLP - Legal • Jacobs, Doland & Beer - Food Service Design • Hotel Dynamics, LLC - Owners Representative • Buy China Direct - FF&E Consultant

27. Strategic Partners Horwath HTL • Horwath HTL is the largest specialist consulting network in this sector, with 50 offices in 39 countries. Our unrivalled global reach is matched by a unique depth of knowledge and experience gained from thousands of projects over many years, in all kinds of economic climates. • Horwath HTL remains the number one choice for hotel and real estate companies, as well as financial institutions looking to invest in the industry. Whatever and wherever your project, we offer the reassurance of an internationally consistent quality of service combined with local solutions.

28. Strategic Partners JP Morgan Chase JP Morgan Chase is one of the oldest financial institutions in the United States. With a history dating back over 200 years, here's where we stand today: • Leading global financial services firm with assets of $2.3 trillion • Operate in more than 60 countries • More than 240,000 employees • Serving millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients • The leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity • JP Morgan Chase stock is a component of the Dow Jones Industrial Average

29. Strategic Partners • Ernst & Young • Ernst & Young is a global leader in assurance, tax, transactions, and advisory service. Our 167,000 people are united by our shared values, which inspire our people worldwide and guide them to do the right thing, and our commitment to quality, which is embedded in who we are and everything we do. Ernst & Young is committed to doing its part in building a better working world for our people, for our clients and for our communities.

30. Strategic Partners Norton Rose LLP • Norton Rose is a leading international legal practice. We offer a full business law service to many of the world’s pre-eminent financial institutions and corporations from offices in Europe, Asia, Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing how our clients’ businesses work and understanding what drives their industries is fundamental to us. Our lawyers share industry knowledge and sector expertise across borders, enabling us to support our clients anywhere in the world. We are strong in financial institutions, energy, infrastructure, mining and commodities, transport, technology and innovation, pharmaceuticals and life sciences. • On June 1, 2013, Norton Rose joined forces with leading U.S. law firm Fulbright & Jaworski L.L.P. to form Norton Rose Fulbright. With 3,800 lawyers and 54 offices, including 11 in the U.S., Norton Rose Fulbright is one of the largest global legal practices with significant depth of expertise in the world’s leading business and financial centers.

31. Strategic Partners • Jacobs, Doland & Beer • Jacobs, Doland & Beer is a New York City based food service design firm specializing in the planning and construction of all segments of commercial food service and hospitality venues, both across the U.S. and overseas. • Jacobs, Doland & Beer  specializes in developing back- and front-of-house food service solutions. Since one cannot thrive without the other, we use an integrated approach to food service design to bring our clients’ concepts to life. We strive to meet our clients’ needs -- timelines, budgets, food service program sustainability -- without sacrificing the quality of the end result, whether designing retail operations or high-throughput production kitchens. From initial concept development through design and implementation, Jacobs, Doland & Beer  design specialists work closely with owners, chefs, architects and engineers through all phases of new construction and renovation projects.

32. Strategic Partners • Hotel Dynamics, LLC • Hotel Dynamics represents the hospitality industry's top experts in asset management, financing, owner's representation and construction management. Hotel Dynamics will strive to maximize the value of your asset and capital through extensive due diligence for acquisition, rebranding and repositioning, property renovation, new construction and asset management. • Our Team will bring unmatched expertise to all phases of the asset's lifecycle for a wide array of clients. The process starts with conducting due diligence that will enable asset owners to make the right acquisition or development decisions. We then transition our skills to managing the asset and formulating a plan to reposition the asset for long-term profitability. In the event that the repositioning decision includes any form of construction or brand PIP, we can seamlessly plan and implement the construction and renovation.

33. Strategic Partners Buy China Direct • BCD is a multinational company based in Guangzhou, China with offices in the U.S., Central America, and independent agents in South America, South Africa and Australia. Our company objective is to be the leading worldwide building materials supply chain by providing factory direct materials straight to the developers' door steps at tremendous savings.
We specialize in interior finishes and decorative building materials ranging from kitchen cabinets, bathroom vanities, tubs, toilets, showers, taps and faucets, doors, windows, ceramic, porcelain, glass and stone tiles to wood flooring and other decorative essentials. • We aim to give our clients the competitive advantage in today’s ever difficult market by adding a global perspective and allowing small to mid size companies to order direct from the factories. We are your partners from the moment we start to work together. We provide manufacturing, sourcing, QC, CAD design and other logistic services direct to your door step.