PRESS RELEASE 01-02-07

Resort to Receive Extensive Renovation Throughout Property by Acclaimed Interior Design Firm Skidmore, Owings & Merrill

TELLURIDE, Colo., Jan. 2 /PRNewswire/ -- The Peaks Resort & Golden Door Spa (www.ThePeaksResort.com), Telluride's signature resort destination, has announced plans for over $60 million in renovations and refurbishments that will result in its conversion to a premiere luxury condominium hotel available for individual ownership. As part of the redevelopment, all of the resort's guestrooms will receive a floor-to-ceiling re-design that will include both structural and cosmetic enhancements. The landmark mountain retreat will ultimately operate as a condo-hotel where both guests and residents will enjoy access to refreshed and revived amenities and refocused attention on service. The conversion is due to be complete by December 2007.

"As the first property in Telluride to combine the amenities and service of an established resort name with the ownership opportunities of a limited collection of luxury condominiums, The Peaks will redefine the concept of luxury mountain lifestyle," said Eric Sather, general manager for The Peaks. "Both owners and guests will enjoy benefits that will make the resort Telluride's most celebrated address - from interior design that embraces the spectacular outdoors to unobtrusive yet anticipatory service to premium amenities such as the Golden Door Spa."

Award-winning architecture and design firm Skidmore, Owings & Merrill LLP (SOM) will lead the extensive renovations, which will transform the resort's 174 current guestrooms into a variety of studio, one- and two-bedroom suites, priced from $500,000. In addition, the resort will enjoy revived public and meeting spaces and a fresh ambiance at the acclaimed Golden Door Spa.

Design Details

Inspired by the surrounding dramatic beauty of the Southern Colorado Rocky Mountains, as well as a desire to build a uniquely "modernized Telluride" ambiance, SOM has created a clean and bold design that combines modern sophistication with relaxed comfort. All of the resort's accommodations will receive a complete redesign, with new furniture, flooring, wall surfaces and fixtures. Luxury amenities such as flat-screen televisions, gas fireplaces and spa bathrooms with separate shower and tub will further both owner and guest enjoyment. Decor will be accented with extensive millwork, the use of native and natural stone and woods and custom-selected regional antique art pieces. Many rooms will have outdoor decks or patios, and all rooms will offer a private owner's closet where personal belongings may be stored between stays.

The sharp, elegant approach continues within the resort's public spaces, where renovation plans call for the redesign of the lobby, restaurants and Great Room in addition to a freshening of the resort's meeting and event space, children's activity center and Golden Door Spa. Guests and owners will also enjoy upgrades to the resort's fitness center, ski valet and valet areas.

Design plans extend to the resort's exterior, where color and texture will be used to soften The Peaks' appearance, and allow the buildings to blend more naturally into the breathtaking surroundings. New soft-edged landscaping and multi-level entryways will provide a heightened sense of arrival, and facilitate the check-in/check-out process.

Services and Amenities

Both resort guests and condominium owners will enjoy the same exacting standard of luxury accommodations and amenities, as well as an unfailing commitment to excellence and a consistent, highly personalized level of service. Once enhancements are complete, amenities at The Peaks will include ski-in/ski-out access to the Telluride ski area, privileges at the Telluride Ski & Golf Company championship golf course, tennis, an award-winning Golden Door Spa and four onsite restaurants and lounges. Other services include 24- hour in-room dining, daily housekeeping, valet and porter services, a ski valet to heat and tune boots and assist with equipment storage, onsite ski rental and lift ticket purchase, and a concierge to help coordinate travel, arrange dining reservations and provide detailed information on the area's vast array of activities - from heli-skiing and dog-sledding in winter, to mountain biking and whitewater rafting in summer.

Real Estate Sales

The Peaks Resort & Golden Door Spa began taking condominium sales on Dec. 29, 2006. Fully-furnished units are priced from $500,000. When not in personal use, condo owners may rent their suite as a traditional hotel room. Real estate sales and marketing will be handled by Sotheby's International/Peaks Real Estate. For more information, call (888) PEAKS-80 or visit www.ThePeaksResort.com.

About LXR Luxury Resorts & Hotels

The Peaks Resort & Golden Door Spa is part of the LXR Luxury Resorts & Hotels collection, a portfolio of independent properties dedicated to creating an experience of luxury, a sense of ease and endless pleasure. LXR properties are distinguished by a style and spirit that captures the unique qualities of their setting, whether the urban chic of a city like New York or the beauty and charm of an island like Puerto Rico. All LXR Luxury Resorts & Hotels offer elegant surroundings, attentive service, guest privileges at private golf clubs and rejuvenating spa programs. LXR Luxury Resorts & Hotels are located throughout the United States and the Caribbean. The LXR collection also includes the renowned Golden Door Spa brand and its four spas in the U.S. For more information and reservations, visit the Internet at www.LuxuryResorts.com or call (877) LXR-XOXO. LXR Luxury Resorts & Hotels was formed by affiliates of Blackstone Real Estate Advisors which owns the independent properties that comprise the collection. The Blackstone Group can be accessed on the Internet at www.Blackstone.com.

Source: LXR Luxury Resorts & Hotels

CONTACT: Amy Campbell, +1-310-358-7744, or ACampbell@LuxuryResorts.com,
or Anne Hersley-Hankins, +1-561-447-3370, or AHersley@LuxuryResorts.com, both
of LXR Luxury Resorts & Hotels

Web site: http://www.luxuryresorts.com/
http://www.thepeaksresort.com/
http://www.blackstone.com/