Marcus Hotels and Resorts/Diversified Real Estate Concepts Form Joint Venture to Build Luxury Condominium Hotel in Las Vegas.

Business Editors/Real Estate Writers

MILWAUKEE--(BUSINESS WIRE)--Jan. 27, 2004

Marcus Hotels and Resorts to Manage Construction and Operate The

Platinum Suite Hotel & Spa

Platinum Condominium Development, LLC, a joint venture between Marcus Hotels and Resorts, a leading third-party, independent hotel management company and a division of The Marcus Corporation (NYSE:MCS), and Diversified Real Estate Concepts, Inc. (DREC), a major condominium hotel developer, today unveiled plans to build a luxury condominium hotel just off the Las Vegas Strip. The Platinum Suite Hotel & Spa will feature 255 condo units, consisting of 245 one-bedroom and 10 two-bedroom units; a luxury spa; indoor and outdoor swimming pools; 8,440 square feet of meeting space, which includes a 4,500-square-foot rooftop terrace overlooking the Strip; a sophisticated restaurant, poolside lounge and a lobby cafe and upscale bar.

Located at the intersection of Koval and Flamingo Streets, the nearly two-acre site is located one block east of the Las Vegas Strip near the Bellagio, Bally's and Caesars Palace casinos. Numerous nationally recognized restaurants and other attractions are nearby. Additionally, the hotel is just minutes from the Sands Expo Center and Las Vegas Convention Center. DREC will be responsible for marketing the project; Marcus Hotels and Resorts and DREC will oversee construction management, with Marcus Hotels and Resorts operating the hotel and public space upon opening.

The Platinum Suite Hotel & Spa's oversized, fully furnished, luxury suites, will range in size from 911 to 2,166 square feet. Each suite will offer upscale amenities such as plasma screen televisions, oversized whirlpool baths, fireplaces, 24-hour room service, town car service and complimentary high speed Internet access. Each suite will include a complete kitchen with granite countertops and stainless steel appliances, a separate dining area, living room, one or two bedrooms and spacious bathroom, and a large terrace/balcony featuring stunning views of the mountains and the Las Vegas Strip.

The units will be priced between $300,000 and $1 million. The hotel will offer a unit rental program for owners who wish to generate income from the units.

"The Platinum Suite Hotel & Spa will offer a relaxed, yet upscale alternative to the mega-casino complexes," said Bill Otto, president of Marcus Hotels and Resorts. "We fully understand the luxury condo owner and resort/spa guest, and look forward to creating an atmosphere and product that set our property apart from the typical Las Vegas experience."

"This is our second condo hotel project with Diversified," Otto said. "We have a great working relationship with Michael Peterson, DREC president, and his team and look forward to completing and operating one of Las Vegas' most exciting and unique hotels. This project further diversifies our management portfolio geographically, as we continue to aggressively seek joint ventures, as well as third-party management opportunities."

"Marcus Hotels and Resorts has a proven track record in luxury hotel, resort and spa development and management," Peterson said. "Ever since we successfully completed the Timber Ridge Lodge in Lake Geneva, Wisconsin, with Marcus Hotels and Resorts, we have looked for ways to develop additional projects together. This project perfectly fits our respective areas of expertise."

"Las Vegas has evolved far beyond a gambling destination," said Otto. "The city now offers a wide range of entertainment options for gamblers and non-gamblers alike. We feel that our clientele are interested not only in first class accommodations, but also in highly personalized service. We intend to create a club-like, residential atmosphere unlike any other currently found in the market."

The pre-development stage is under way with a sales center and model unit expected to open to the public by February 2004. The initial sales phase is expected to be completed this summer. An aggressive marketing program, targeting both U.S. and international markets, will begin shortly. Project construction is expected to begin in Autumn 2004, with an opening date slated for early 2006.

Additional information about The Platinum Suite Hotel & Spa is available by visiting the Platinum Suite Hotel and Spa Sales Center, 211 E. Flamingo Rd., Las Vegas, Nevada, or by visiting www.platinumlasvegas.com. Sales representatives can be reached at [phone].

Headquartered in Milwaukee, Wis., Marcus Hotels and Resorts is a division of The Marcus Corporation, a leader in the lodging and entertainment industries. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. The company's limited-service lodging division operates or franchises 179 Baymont Inns & Suites in 32 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 499 screens at 47 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. For more information, visit The Marcus Corporation's Web site at www.marcuscorp.com or the Marcus Hotels and Resorts Web site at www.marcushotels.com.