Homewood Suites by Hilton Announces Plans to Build Condo Hotel in Fort Lauderdale, Opening in Late 2005.

Business Editors/Travel Writers

MEMPHIS, Tenn.--(BUSINESS WIRE)--May 19, 2004

$65-Million Project with Cartage Inc. Signals Renaissance

of The Village in North Lauderdale

Homewood Suites by Hilton(R), the national brand of upscale all-suite, residential-style hotels, and Robert Couf, chairman and CEO of Fort Lauderdale-based Cartage Inc., today announced plans for a 105-suite Homewood Suites by Hilton hotel in "The Village," a master-planned area on the Intracoastal Waterway in Fort Lauderdale. Set to break ground in the fall of 2004 and open in winter 2005, the 14-story, $65-million condo hotel will feature 12 boat slips, accommodating yachts up to 50 feet, and a charter-boat operation for deep-sea diving and sightseeing. The new hotel will be the only development in Ft. Lauderdale to include slips in a no-wake zone. The project also combines luxurious shops, boutiques and cafes, creating a charming neighborhood within walking distance from Fort Lauderdale's beaches.

The hotel will be the newest addition to the growing roster of more than 130 Homewood Suites by Hilton hotels. The hotel, originally named "Il Lugano," is being developed by Cartage Inc./Il Lugano, LLC, and will be managed by Hilton Hotels Corporation. Although a condo hotel, it will be branded and operated as a Homewood Suites by Hilton hotel.

"By having a world-class management team such as Hilton, which emphasizes high quality and guest satisfaction, a prime waterfront location and the appeals of 'The Village,' the hotel will attract residents and guests who want to visit and live in this desirable location," said Couf. "The development itself is ideal for those who enjoy Fort Lauderdale as a destination and as the boating capital of South Florida."

The new Homewood Suites by Hilton will feature residential-style studios, one- and two-bedroom suites with fully equipped kitchens, and spacious sleeping and living areas that are large enough for work, study, entertainment and relaxation. Each unit is designed with a nine-foot ceiling and equipped with a washer and dryer. The project, which provides a state-of-the-art fitness center and 60-foot lap pool, will offer the convenience and amenities of a first-class resort hotel, along with the privacy and luxury of a condominium.

Jim Holthouser, senior vice president, brand management, Homewood Suites by Hilton, said, "The Homewood Suites brand caters to business travelers who stay for extended periods of time, but this is an ideal opportunity for the brand to enter a market that has a great demand for leisure vacationers. We are committed to providing an exceptional lodging experience in Fort Lauderdale that encourages extended-stay travelers and families to seek out Homewood Suites by Hilton."

Available two- and three-bedroom private residences are priced from $725,000 to $2,000,000. The hotel suites begin at $222,000 and range from junior suites, deluxe suites and one-bedroom apartments. The purchaser will be able to use the suite for up to 60 days a year and receive income from the nights the unit is occupied as a hotel.

Make Yourself At Home

Guest amenities at Homewood Suites by Hilton hotels include a daily complimentary hot breakfast buffet in the hotel's hospitality center, called the "Lodge;" an evening Manager's Reception(a), Monday through Thursday, with a complimentary light meal and beverages; exercise facilities; and a 24-hour on-site Suite Shop(R) convenience store. Complimentary high-speed Internet access is available in all guest suites, in addition to wireless Internet access in the Lodge and meeting room.

About Homewood Suites by Hilton

Launched in 1989, the Homewood Suites by Hilton brand today has more than 130 hotels open, with another 50 in the pipeline. Beyond its spacious two-room suites and home-like amenities, Homewood Suites guests can find at each hotel an on-site Suite Shop(R) convenience store, exercise facility, and guest laundry at most locations. Guests can also enjoy a daily complimentary hot breakfast and weekday evening Manager's Reception(a) with a light meal and beverages in the hotel's Lodge. Additional guest services at Homewood Suites by Hilton hotels include a complimentary grocery shopping service(b) and a complete business center at most locations. Most Homewood Suites locations also feature a swimming pool and outdoor sports court.

To make reservations at a Homewood Suites by Hilton hotel, travelers can visit the Homewood Suites Web site at homewoodsuites.com or call 1-800-CALL-HOME(R). Homewood Suites participates in the Hilton HHonors(R) guest reward program, which allows its members to Double Dip(R) by simultaneously accumulating both hotel points and airline miles with each qualifying stay.

Homewood Suites by Hilton is part of Hilton Hotels Corporation, which is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,100 hotels, resorts, and vacation ownership properties. Its portfolio includes many of the industry's best known and most highly regarded hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn,(R) Hilton Grand Vacations Club(R) and Homewood Suites by Hilton(R).

(a) Subject to state and local laws. Must be of legal drinking age.

(b) Guest pays for groceries. Other restrictions apply.

HHonors(R), Double Dip(R) and Double Dipping(R) are trademarks owned by Hilton HHonors Worldwide, L.L.C. Hilton HHonors membership, earning of Points & Miles(R), and redemption of points are subject to HHonors Terms and Conditions.

The following trademarks are owned by Hilton Hospitality, Inc.: Hilton(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Grand Vacations Club(R), Homewood Suites by Hilton(R) and Suite Shop(R). Conrad(R) is owned by Conrad Hospitality, LLC.