�We are very excited to have purchased this wonderful hotel,� said Karl Hoagland, chairman, president, and CEO of Larkspur Hotels, LLC.  �The Toll House is a perfect fit with our strategy of acquiring, renovating and improving the operation of unique three and four-star independent hotels.  We intend to invest more than $1 million in the renovation and upgrade of the Toll House Hotel and restaurant in 2004.  Larkspur Hotels are known for caring, personalized service combined with superior guest amenities, and that tradition will continue at the Toll House.  Along with our Larkspur Landing Hotel and the Pruneyard Inn, bothlocated in nearby Campbell, the Toll House allows us to continue to build a

Toll House Hotel 140 South Santa Cruz Avenue Los Gatos, California

�We love the Toll House Hotel and the town of Los Gatos,� continued Hoagland.  �The Toll House reflects the charm and character of this wonderful community, which is a natural fit with our company�s culture.  We are thrilled to become part of this community and our mission is to be responsible stewards of this hotel and to improve it for the town of Los Gatos and our hotel guests.� 

Nestled at the base of the Santa Cruz Mountains and just 12 miles from the San Jose International Airport, the Toll House Hotel features 115 beautifully appointed guest rooms and suites.  Rooms range from Deluxe Rooms, which offer traditional hotel comforts, to two-room Parlor Suites, which feature a separate sitting room and veranda with scenic mountain views as well as a Home Theater system.  All guest rooms feature high-speed Internet access, two-line phones, in-room coffee makers, irons, ironing boards, hair dryers and air-conditioning.  Additionally, a complimentary continental breakfast is provided to hotel guests each morning. 

The hotel also houses the full service Toll House Restaurant, serving guests and local residents continental cuisine with a California influence.  Entree items range from steaks to fresh seafood.  The restaurant is open seven days a week for breakfast and dinner and features a champagne brunch each Sunday.  Adjacent to the restaurant is the casual Fireplace Lounge, which offers a full service bar and a place for guests to relax and wind down. 

The Toll House features more than 4,000 square feet of state-of-the-art meeting and banquet facilities that can accommodate groups of up to 200 people for a variety of events.  A full range of audio visual equipment, including overhead projectors, 7 foot screens and high-speed Internet connections, is available to support all business needs.  The hotel�s customized meeting offerings and personalized services have earned it an outstanding reputation, voted by Silicon Valley newspapers as �the best place to hold a small business meeting.�

About Larkspur Hotels, LLC
Established in 2003, Larkspur Hotels, LLC and its affiliate Larkspur Hospitality Development and Management Company, LLC, is a rapidly growing and highly successful hotel company based in Corte Madera, California.  The company acquired its first hotel, the four-star RiverPlace Hotel and Lucere Restaurant in Portland, Oregon, in July 2003 and has designed and approved a $3 million renovation and repositioning to be completed by June 2004.  Larkspur and its affiliates own and operate 19 hotels comprising three brands (Larkspur Landing, Candlewood Suites and Hilton Garden Inn) in suburban areas of Northern California and the Pacific Northwest.  The Company also manages the Pruneyard Inn in Campbell, California, owned by Equity Office Properties.