COMPETITIVE ADVANTAGES

1.  The Mandarin Oriental Hotel Group has quickly become an award-winning owner and operator of some of the world’s most prestigious hotels. They now operate 21 luxury hotels, primarily in highly-desirable locations such as San Francisco and New York City. There are ten new Mandarin Oriental properties being developed presently with locations including Prague, and Riviera Maya, Mexico (2006), Hainan Island, China, Barcelona and Boston (2007), Dallas, Chicago, Las Vegas and Macau (2009). The Mandarin Group has signed a 20-year management agreement for this site with a ten year renewable option.
    

2. The Cayman Islands are located 480 miles south of Miami, Florida and are easily accessible by air, with over 50 flights each week from 12 U.S. cities, operated by seven major airline carriers, including American Airlines, British Airways, Delta Airlines, US Airways, North Airlines and others. International guests can travel to the Cayman Islands via direct flights from London, Toronto and U.S. gateway cities.
    

3. The Cayman Islands have a stable climate. In a hundred year span, the islands have only had three major storms. The damage from Hurricane Ivan in 2004 has now been repaired, and insurance is readily available for properties located there. Mandarin Oriental required adequate insurance on the project from the ground-breaking stage.
    

4. The Mandarin Oriental Group is highly desirous of this specific location, and has agreed to an unprecedented three-year guarantee covering any shortfalls in the payments on the phase I project senior debt principal and interest. They have agreed to invest up to $2.5 million dollars to guarantee this.
    

5. The Cayman Islands are experiencing extraordinary population growth, doubling its size in the last twenty years. The non-native population grew from 21% to 41% in the last few years with the U.S. providing over 80% of the new residents, followed by England, Germany and other parts of Europe.
    

6. The Cayman Islands are internationally recognized as a premier destination for travelers and vacation home buyers. The island attracts very affluent visitors and residents making its average per capita income similar to the overall United States per capita income. The average is skewed upward because of the affluence of the newest residents over the last decade.
    

7. Cruise lines have made the Cayman Island a popular destination, and have doubled their stops on its shores. The economic impact of the cruise ships and overall travel to the islands has caused the forecasters to predict that the economic activity on the Cayman Islands will grow from its present $40.3 billion to more than $82 billion by 2014.
    

8. The condominium and second home market is booming on the island. According to Century 21 Real Estate’s report, the sales volume for condominiums jumped 77% from the fall of 2003 to the fall of 2004, and average per unit pricing rising by 31%.
    

9. The Ritz Carlton Hotel and Condominium project sold out their original units in a record timeframe at a sales price of $1,200 to $1,300 per square foot. They have now expanded their units from 71 to 96 and 15 of the additional 25 have already sold. The Mandarin Oriental Hotel will consist of 37 condominium units with an average size of approximately 1,700 square feet and three presidential suites that will be approximately 3,000 square feet. The average sales price for the condominiums will be approximately $1,300 per square foot.
    

10. The Mandarin Oriental Hotel will offer the owners of the condominium units access to their hotel rental program. The owners will receive revenue and be able to cover their maintenance costs.
     

11. The Mandarin Oriental Hotel and Resort project has been embraced by the Grand Cayman Government. The Governor and his cabinet have taken an active role in the project’s approval process. They are excited about the Mandarin Oriental brand and have worked to make the process go smoothly.