Destination Hotels & Resorts Builds NINE ZERO Hotel into Boston Success Story

Destination's Management of Award-Winning Hotel to End with Sale of Property

BOSTON, Mass. – April 27, 2006 – This Sunday, April 30, Destination Hotels & Resorts will hand over management of NINE ZERO hotel to Kimpton Hotels & Restaurants Group, LLC, which recently purchased the award-winning property from Intercontinental Real Estate Corporation. From the project’s inception to the development of unique customer service programs, Destination’s NINE ZERO success story was formulated by an independent approach to developing an upscale market niche that allowed the property to outperform its competitive set in less than two years.

The project was conceived in 1999 when Intercontinental purchased a site located in Boston’s central business district. Destination was chosen to assist with the development of a proposed 190-room four-star hotel on the site and manage the property upon its completion.

"We selected Destination Hotels & Resorts for their track record in promoting successful hotels that are well positioned in their markets," said Paul Nasser, CFO and COO of Intercontinental Real Estate Corporation. "The company brings a formula that allows the individual hotel to thrive both from an identity and financial perspective."

In 2000, a new convention center and new commercial developments encouraged hoteliers to flock to Boston in hopes of profiting from the boom in Beantown. Destination’s challenge was to identify a portion of the marketplace that could be capitalized upon. Most of the properties entering the market were either high-end luxury or typical upscale hotel chains, but Destination was able to identify a market niche that was a step above the upscale hotels and could attract guests from the existing upscale and luxury market segments. Appropriately identifying this market niche was imperative, so that the hotel would be able to achieve the financial requirements of the investor – a delicate balance between capital outlay with property potential.

Destination created and then realized a vision for the property that primarily catered to individual business and leisure travelers. The traditional style of Boston was fused with the modern décor of NINE ZERO, to create a chic destination that attracted and welcomed everyone from high-profile business travelers to A-list celebrities. Destination also had the foresight to understand that guests in this market segment would expect exceptional service, and hired hotel veteran James Horsman as general manager to oversee the day-to-day operation and implementation of the company’s vision for NINE ZERO.

“We developed an absolute focus on service as a product,” said Horsman; a 12-year Ritz-Carlton alumnae. “We made certain that every guest had a personal experience that was tailored to his or her interests.”

Horsman attributes the ability to deliver exceptional customer service to a recruiting effort that allowed the property to select the right associates. Each employee went through an extensive training process where they were empowered to deliver what each guest needed.

Many of the 190-room property’s creative, personalized services became nationally recognized in the media for their innovation. The property’s aggressive sales, marketing and public relations efforts helped put creative programs such as the “shop nine zero” retail website, IN the Doghouse pet program, and shopping sherpa service in the national spotlight. The launch of iris technology, which allows keyless access to the hotel’s Cloud NINE suite and employee/vendor entrance using just the iris of one’s eye for identification, became a hot national security story during the Democratic National Convention in July 2004.

Under Destination’s management, NINE ZERO became one of the most recognized hotels in the New England area with numerous awards and accolades. The property was consistently recognized by Condé Nast Traveler and Travel + Leisure magazine as one of the best hotels in the world. Food & Wine magazine touted Spire restaurant amongst “America’s 50 Best Hotel Restaurants” and Boston Magazine regularly noted the culinary creations at the hotel amongst the best in Boston. Boston Magazine also recognized NINE ZERO as the “Best Boutique Hotel” four years in a row.

The delivery of its service promise, combined with an aggressive sales and marketing effort, helped NINE ZERO hotel to take market share from the cities traditional top tier luxury hotels. By the end of 2003, the property’s first full year of operation, NINE ZERO achieved a market penetration of 126.5 percent.

"We were incredibly pleased with Destinations stewardship of NINE ZERO. The hotel's management and staff, led by James J. Horsman, were a critical success factor in establishing NINE ZERO as one of the premier independent hotels in the world,” said Paul Palandjian, principal of Intercontinental.

“NINE ZERO is truly a success story within our collection of largely independent hotels and resorts,” said Mark Hickey, senior vice president of operations for Destination Hotels & Resorts. “We put a great team, led by Jim Horsman, in place to deliver a one-of-a-kind hotel experience. We’re proud of our involvement in NINE ZERO and equally as pleased with the return we were able to provide Intercontinental upon sale of the property.”

Destination will continue its presence in the Northeast with the opening of Stowe Mountain Lodge in fall 2007. The company plans to capitalize on the success of NINE ZERO hotel by appointing Horsman as managing director of the new property. Destination also will remain in Boston with a sales and marketing office to support the new Stowe property.

Destination Hotels & Resorts is a privately held lodging management company headquartered in suburban Denver, Colo. With 32 independent, luxury and upscale hotels, resorts and golf clubs, Destination is the fifth largest independent hospitality management company in the country. The company’s portfolio features more than 8,000 guest rooms, 15 golf courses and 10 full-service spas. Destination Hotels & Resorts properties are located in key metropolitan and resort markets including New York, Washington, D.C., Chicago, Denver, Dallas, San Diego, Aspen, Austin, Phoenix, Palm Springs, Jackson Hole, Maui and Lake Tahoe. For more information on the properties in the Destination Hotels & Resorts collection, please visit www.destinationhotels.com.

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