Joie de Vivre Hospitality Announces Major Expansion

Oceanfront Accommodations in Huntington Beach, Two Renowned San Francisco Japantown Properties and Sacramento's First Boutique Hotel Are Among Those that Reinforce Joie de Vivre Hospitality's Position As State's Largest Boutique Hotelier

San Francisco, July 6, 2006 - Joie de Vivre (JdV) Hospitality has announced several new hotels in California, complementing its diverse collection in the Bay area and building on its already dominant position in California with 33 hotels.

"This commitment comes at a very pivotal time for Joie de Vivre," said Chip Conley, Founder and CEO of the company. "We're already the state's largest boutique hotel operator and, with these additional projects, we're showing that we intend to blanket the state with our unique brand of hospitality. If California was its own country - and sometimes I think it is - it would be the 8th largest economy in the world. So, this is a ripe market right in our own backyard."

On the heels of opening Los Angeles' iconic Hotel Angeleno, JdV Hospitality is excited to be furthering its Southern California development with a ground-up oceanfront project in Huntington Beach. The four-star Huntington Beach hotel will be overlooking this famous beach in the heart of 'Surf City' and will total 149 rooms. This hotel, which has an early 2008 opening date, is being developed by CIM Group with JdV as the operator.

JdV Hospitality's foray into the Sacramento market will also represent the capital's first boutique hotel. This historic building featuring a mansard roof, soaring ceilings and marble walls will be refurbished into a stylish boutique hotel. The 197-room property will also include 11,000 feet of meeting space, five staggeringly luxurious penthouses, a striking ballroom and a 3,000-square-foot terrace overlooking the state capitol. It is expected to open in early 2008. JdV is in joint venture with Rubicon Partners on this historic adaptive reuse project.

Complementing the Joie de Vivre-owned Kabuki Springs and Spa, the company will also be taking on the revitalization and management of two properties in San Francisco's Japantown: The Miyako Hotel and the Best Western Miyako Inn. The Radisson Miyako boasts 218 rooms and will be renovated to offer guests an authentic Japanese experience, with a selection of rooms offering traditional deep soaking tubs and highly flexible meeting space. The Best Western Miyako Inn will offer 125 rooms. Both hotels (along with the adjacent malls) have been purchased by 3D Investments and JdV will lead the renovation and repositioning of the hotels in the latter part of 2006 and early 2007. The goal will be to reconnect the hotels to the rich Japanese culture and customs in America's most vibrant Japantown community.

Joie de Vivre Hospitality is providing the design leadership and boutique services I collaboration with the developers of the 246-unit SOMA Grand (an innovative lifestyle condo development) in San Francisco, and recently signed contracts to operate and reposition four to five other San Francisco hotels, another Silicon Valley hotel, and possibly another hotel in Los Angeles. The movement in these markets is part of JdV's expansion strategy to become California's dominant independent hotelier. After nearly 20 years catering to the California traveler and operating twice as many in-state boutique properties as any competitor, JdV Hospitality has become the clear authority on the California travel experience.

"Having a deeper understanding of the state and the market allows us to uncover opportunities our competitors might not consider," said VP of Strategy and Development Christian Strobel. "Others might have a more aerial view and cherry-pick the prime areas such as West Hollywood and the Gas Lamp District in San Diego. We can be true innovators and pioneer markets that are typically overlooked by developers," Strobel continued.

About Joie de Vivre Hospitality

Based in San Francisco, Joie de Vivre Hospitality (www.jdvhotels.com) is a creative collection of lifestyle businesses. As California's most prolific hotel operator, the Joie de Vivre portfolio encompasses 37 hospitality businesses in California, including 30 boutique hotels. These properties represent a total of over 2,800 rooms and include five distinctive restaurants and bars. The company also owns and operates San Francisco's largest day spa, the Kabuki Springs & Spa. Each property celebrates California through a unique visual style, uncompromising design principles, one-of-a-kind amenities and personalized service. "Our goal," notes Joie de Vivre founder and CEO Chip Conley, "is to create landmark destinations full of soul and personality."