***ASUITES & APARTMENTS

ANTELIAS STREET - BEIRUT - LEBANON

BUSINESS PLANArchitect Meguerditch L. Bouldoukian

Owner-General ManagerJune 20, 2006

General Information

Business Name : GARDEN TOWER HOTELMOT license : ***A Hotel

Business Address : Antelias Street, Beirut LebanonTelephone : 961 4 417741Fax : 961 4 417791Email : info@gardentowerhotel.comWebsite : www.gardentowerhotel.com

Owner : Architect Meguerditch BouldoukianBusiness Structure : Sole proprietorship

COMPETITIVE ANALYSIS

In 1995, Garden Tower Hotel was the first hotel built in the area extendingfrom Zalka to Debayeh.

Garden Tower Suite Hotel has been targeting the specific niche market of Lebaneseexpatriates, large families from Arab countries, embassies and corporate guests by

providing a friendly homelike atmosphere and appropriate facilitiesfor extended stay guests.

LOCATION

Garden Tower Hotel is locatedin a calm spot at Antelias,North-East of Greater Beirut, at16 kms from the HaririInternational Airport and 7 kmsfrom Beirut Central District, in acommercial and residentialzone, mid-way between Beirut,Jounieh and the mountainresorts.

It is at a walking distance fromDbayeh Marina Waterfront,Emile Lahoud ConventionCenter, Cilicia Museum, majormalls (City Mall, ABC Mall),health clubs, superstores andfamous restaurants.

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Lebanon Opportunities, in its April 2006 issue, indicated that

“Dbayeh Marina area is to witness major developments. It has been attractinginvestors and real estate development companies, who are buying huge plotsof land for future projects. The projects will include major attractions, for bothlocals and tourists, such as luxury hotels, shopping malls, residentialprojects, an Olympic swimming pool, and a public garden. Joseph Khoury,owner of about 300,000 square meters in the Marina area and Majed Al-Futtaim Group owner of 55,000 square meters, which he bought from Khouryfive years ago are venturing together. The joint venture is to include theCarrefour commercial center and several residential buildings, to becompleted in three years. With Solidere reaching saturation levels, the Marinahas become attractive to developers.”

“According to Massaad Fares of Prime Consult, whennews first circulated about the deal between Khoury andAl-Futtaim a few month ago, prices in the Marina areaincreased from $800 per m2 to about $1,200 and now theprice stands at $1,500.”

Being located in the immediate vicinity ofthe Dbayeh Marina zone where more than350,000 square meters of sea front landshall be developed within the next few yearsby the Majed Al Futtaim Group, the Dubaibased Waterfront Company and others,occupancy rates at the Garden Tower Hotelare expected to have a substantial increaseduring and after the construction period ofthe mega-projects and at the same timeenjoying a boost in its real estate value.

GARDEN TOWER CENTER

GARDEN TOWER HOTEL ***ADescription of the existing property

Date of construction : 1995Total built-up area : 6500 m2

Number of floors : Basement floor projected F&B outlets & parkingGround floor shops and entrance lobbiesFirst floor lounges and coffee shop5 typical floors of 4 suites and 4 apartments/floor6th floor 4 suites and 4 apartments

Total number of apartments : 46Number of Block A suites : 23Number of Block B apartments : 23 + roof apartment

Number of bedrooms : 79 (excluding living rooms, kitchens & bathrooms)Number of beds : 100 single and double bedsTotal capacity : 138 persons

TYPICAL FLOOR PLAN – BLOCK A & B

Description of Block B Apartments

Total construction area : 2619 m2Total number of apartments : 23Number of floors : Basement parking, 5 typical floors, 6th & 7th floors

Number of 2-bedroom apartments : 9Net area of 2-bedroom apartment : 74 m2

Number of 3-bedroom apartments : 10Net area of 3-bedroom apartments : 96 m2

Number of two bedroom luxury apartments: 4Net areas of luxury apartments : 96 and 74 m2

GARDEN TOWER HOTEL BLOCK B APARTMENTS

TYPICAL FLOOR PLAN – BLOCK B

SIXTH FLOOR PLAN – BLOCK B

LOUNGE

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Customer retention

Treating our guests as friends, caring for their comfort and wishes constantly in a homelikeatmosphere and facilities have proved to be a sustainable method for customer retention,growing network of repeat guests and mouth to ear publicity.

Partnerships

Garden Tower Hotel website is associated with ReservInternational (a global GDS provider)and it is listed in most of the online hotel reservation systems, providing a growingpercentage of the total reservations done online.

GARDEN TOWER HOTELCURRENT ONLINE SEARCH RESULTS

“Garden Tower Hotel”Yahoo: 905Google: 727MSN: 1,168

Garden Tower HotelYahoo: 4,470,000Google: 20,400,00

MSN: 1,311,533

“Monday Forum”Yahoo: 10,300 rank #1 & 10

Google: 15,300 rank #1MSN: 2,229 rank #2 & 3

Monday ForumYahoo: 61,600,000 rank #1

Google: 157,000,000 rank #1MSN: 7,946,839 rank # 6

Opportunities: past, present, & future

Growing regional interest in Lebanon as a business, cultural and recreationdestination

Growing number of Lebanese expatriates buying apartments in their homeland

Increasing international conferences and longer summer vacation season

Growing number of Arab nationals visiting Lebanon and investing in real estate

Growing public and private real estate development between Zalka and Dbayeh

Through spill over from high occupancy rates in Beirut Central District generatehigh occupancy rates in hotels between Zalka and Dbayeh

Increasing demand and rise in the cost of new constructions affect positively the re-evaluation of existing real estate

FINANCIAL OPTIONS

Sale of 23 two and three bedroom apartments in Block B, as hotel apartments.

Total built up area: 2619 m2 of apartments.

Value of the property including FF&E: US$ 2,380,000.

The concept enables investors to buy a fully-fitted, furnished and serviced hotelapartments that may be used free of charge for a certain period yearly. Profits from therental of the serviced apartments during the remaining period of the year will then bedistributed to individual part owners in the rental pool, after deducting cost of operationsand management.

ADVANTAGES OF THE PRODUCTFOR THE LEBANESE EXPATRIATES

Having a permanent vacation home in a hotel adjacent to the Dbayeh Marinazone where within the next few years several mega-projects shall turn the sea-front into an upscale residential, commercial and recreational area.

Investing in a value added property, in the form of fully serviced hotel apartment.And, vacationing free of charge for up to 2 months per year.

Investing in a property that optionally may generate yearly net income of 6.54%-12.10% of the initial investment, in addition to the expected capital gain in theappreciated unit value, within the next few years.

Buying an hotel apartment at almost the same price of what is offered in otheranonymous residential buildings with comparable specifications.

Investing in a property with a well known address, an important commercialgoodwill, well established international marketing partners, a valuable portfolioof long dated customer-friends and repeat guests.

Several Lebanese banks have special long term (up to 15 years) housing loanprograms, to encourage Lebanese expatriates to invest in real estate in Lebanon

ADVANTAGES OF THE PRODUCTFOR REGIONAL VACATIONERS

Having a permanent vacation home in a hotel adjacent to the Dbayeh Marina zonewhere within the next few years several mega-projects co-owned by Majid AlFuttaim of Arab Emirates shall turn the sea-front into an upscale residential,commercial and recreational area.

Investing in a value added property, in the form of fully serviced and maintainedhotel apartment that may be ready occupation within a very short notice.

Vacationing free of charge for up to 2 months per year in a hotel setting, locatedmidway between Downtown Beirut, Jounieh and mountain resorts, in acommercial and recreational zone.

Investing in a property that optionally may generate yearly net income of 6.54%-12.10% of the initial investment, in addition to the expected increase in its realestate value within the next few years.

Buying an hotel apartment at almost the same price as what is currently beingoffered in anonymous residential buildings with comparative quality

Investing in a property with a well known address, an important commercialgoodwill, well established international marketing partners, a valuable portfolio oflong dated customer-friends and repeat guests

OPTIONAL USE OF APARTMENTS

1. TO BE USED UNIQUELY BY THE OWNER OF THE DEED ORHIS FAMILY MEMBERS, ANY TIME OF THE YEAR. COMMONAREA CHARGES AND MANAGEMENT FEES, SHALL BEAPPLICABLE, PROPORTIONAL TO THE VALUE OF THEPROPERTY.

2. TO BE USED BY THE OWNER OF THE DEED OR HIS FAMILYMEMBERS, FREE OF CHARGE, FOR UP TO TWO MONTHSPER YEAR AND THE REMAINING PERIOD OF THE YEAR TOPARTICIPATE IN THE RENTAL POOL WITH RETURN ONINVESTMENT VARYING FROM 6.54%-12.10% ACCORDING TOTHE REALIZED OCCUPANCY RATES.

TYPES & PRICE RANGE OF APARTMENTS

1. TWO-BEDROOM APARTMENTS13 Apartments varying in size from 81-103 square metersPrice range: US$ 65,000-89,000

2. THREE-BEDROOM APARTMENTS10 Apartments varying in size from 103-119 square metersPrice range: US$ 101,000-135,000

YEARLY COST OF OPERATIONS&MANAGEMENT

The yearly estimated cost of operations shall be variable according to actualrates of occupancy. The following is a summary schedule of the main cost

centers:

1. Salaries and Social Security charges: US$ 10,300

2. Cost of utilities, (EDL and private electricity generators) and waterexpenses: US$ 20,000-33,000

3. Maintenance and supplies US$ 4,800-8,300

4. The estimated total cost of operations, including insurance, taxes,marketing and miscellaneous expenses: US$ 48,850-67,850

Reserve for replacement: 4% of gross revenue

Management fees: 5% of the yearly gross revenue +10% of gross profit asincentive fees

RETURN ON INVESTMENT

1. LOW RISK OPTION: at extended stay promotional ratesBASED UPON CURRENT EXTENDED STAY MARKET RATES

Up to two months / year free stay option:

40% occupancy: 6.54%50% occupancy: 8.43%60% occupancy: 10.29%70% occupancy: 12.10%

The real estate boom, which started in 2002, was mainly directed towards Solidereand the surrounding area.This was the first phase.

The second phase of the boom spilled over into the suburbs ofBeirut, but the third phase of the boom is now heading in the

direction of Metn, Dbayeh and Kesrouan.

Dbayeh is now the third phase, which reallybegan in 2005-2006, and interest in the area is

expected to increase further.

Mario Mhanna,general manager of Patrimoine Conseil,

Lebanon Opportunities, April 2006