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S.D. Malkin and Interstate Hotels Selected to Develop
302 room Westin Resort in Oceanside, California

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SAN DIEGO - May 10, 2005 -- In a unanimous decision in late April, Oceanside's City Council voted to select S. D. Malkin Properties and Interstate Hotels and Resorts to develop a two-block, beachfront resort across from the historic Oceanside Pier. The council accepted the Malkin/Interstate team's proposal for a 302-room Westin hotel with 72 timeshare units; ocean view spa; two ocean view restaurants; bar; and ocean view meeting and function space. The resort will eventually anchor an eight-block, mixed-use development in the heart of Oceanside Village that will include residential and retail space.

Presently, San Diego County travelers have only a limited selection of oceanfront hotels, none of which has affiliations with a major national brand. Featuring relaxed beach cottage architecture, Oceanside's Westin resort will feature several porches that invite the public into the hotel, creating a strong indoor/outdoor connection.

"Oceanside's old beach town ambience will add to the resort a surfside atmosphere for which Southern California is famed," said Jeremy Cohen, Sr. Vice President of S. D. Malkin Properties, the Project's Managing Partner. "Plus, some of the region's finest beaches will surround the property."

The resort's north San Diego location offers easy access from Interstate 5 for travelers from Orange County and Los Angeles. It is a one-block walk from the Amtrak Pacific Surfliner stop -- the train running from San Diego through Anaheim and Los Angeles' historic Union Station to Santa Barbara.

S.D. Malkin Properties will incorporate into the property approximately 25,000 square feet of meeting and function space, including a 7,200 square-foot ballroom, a junior ballroom, numerous breakout meeting rooms, and ocean-view function and pre-function spaces.

S. D. Malkin selected SB Architects of San Francisco to design the project. Construction is projected to begin in 2007, and the resort is expected to open in 2009.

S. D. Malkin Properties and Interstate Hotels and Resorts previously collaborated on the development and operation of the award-winning, 282-room Hilton Gaslamp Quarter in downtown San Diego. S. D. Malkin Properties is known for the development of unique urban projects. Apart from the Hilton Gaslamp Quarter, S. D. Malkin developed the Cable Building Lofts in the Hillcrest area of San Diego and the landmark 2 Rodeo Drive in Beverly Hills. Through its affiliate, Value Retail PLC, S. D. Malkin is also active in Europe having completed high-end retail outlet villages in London, Paris, Madrid, Barcelona, Frankfurt, Brussels, and Milan.

Interstate Hotels and Resorts is a New York Stock Exchange Traded Company that is the largest independent manager of hotels in the United States, with ownership interest in 25 hotels and management of more than 300 hotels. Interstate operates numerous quality hotels under the Hilton, Westin, Sheraton and Marriott flags.
 

Contact:

S. D. Malkin Properties
www.sdmproperties.com

Also See: Faulkner USA Properties of Austin, Texas, Pacifica of San Diego and SD Malkin of San Diego the Three Finalists for Resort Development in Oceanside, California / October 2004
Oceanside, Calif. Reviewing Hotel Proposals from Faulkner USA of Texas, Pacifica of San Diego and SD Malkin of San Diego; City Officials Learn Meaning Star Ratings / January 2005


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