KOR HOTEL GROUP BRINGS LATEST TREND IN ENTERTAINMENT TO GUESTS OF BOUTIQUE HOTELS

PSP™ (PlayStation Portable) and PlayStation 2 systems now available at Viceroy Santa Monica, Viceroy Palm Springs, Avalon and Chamberlain

August 15, 2005 (Los Angeles) - Savor the hottest summer movies in a poolside cabana or ride an adrenaline-fueled gaming wave all night in your suite. With an eye toward consumer trends, Kor Hotel Group is making PSP™ (PlayStation Portable) system and PlayStation 2 computer entertainment system available as amenities at four of the group's Southern-California hotels. Beginning immediately, PlayStation 2 and PSP systems are available at Viceroy Santa Monica, Viceroy Palm Springs, Avalon and Chamberlain to both over-night and day guests.

"Kor is foremost interested in providing services that resonate with guests," said John Arnett, President of Kor Hotel Group. "Portable entertainment units like PSP are in demand right now, and we feel we're staying attuned to what's relevant and current."

PSPs are available as a complimentary guest service at check-in, and an extensive selection of popular games and films makes the pleasure-principle possibilities endless. For all suite bookings, the streamlined PlayStation 2 provides an attractive new upgrade option, with a Game Butler to install and provide tutorials on equipment and games. Day guests can enjoy the diversion too: PSP systems appear on hotel cocktail menus and provide an extra perk to cabana day-rentals.

Program Details:

• PSP free of charge with deposit of credit card.
• Overnight guests may use PSP for 24 hours.
• Day guests may use PSP in 3-hour segments.
• Games and movies subject to availability.
• PlayStation 2 available as suite and villa upgrade; Game Butler will install and provide tutorial.

The PlayStation brand continues to redefine entertainment in and out of the home. Launched in North America inMarch 2005, PSP is the first ever portable entertainment device to combine movies, music, games and wireless communication in a single product. It has immediately become the most sought after entertainment system of the year. PlayStation 2 is the market-leading home console with upwards of 32 million units sold in North America, providing consumers with access to over 1,000 games, online access and DVD and CD playback capabilities.

The Kor Group is a privately held real estate development and management firm with investments primarily in hotels and multi-family real estate. Kor Hotel Group, the hospitality division of Kor, holds a diverse property portfolio and manages both its own assets and non-owned hotels under third-party management contracts. Kor Hotel Group's properties include Avalon Hotel and Maison 140 in Beverly Hills, Viceroy Santa Monica and Viceroy Palm Springs, Gateway Hotel Los Angeles Airport, Delfina in Santa Monica, Tides in South Beach, Chamberlain in West Hollywood and The Jefferson in Washington D.C., as well as the forthcoming Viceroy Anguilla Resort and Residences and Viceroy Riviera Maya debuting in 2008.