NEW YORK, June 4, 1998 -  At a magical event held at Laura Belle, a Manhattan restaurant, executives from Patriot American Hospitality, Inc. and Wyndham International, Inc. (NYSE: PAH) announced today the formation of a distinctive new hotel collection for the 21st century: Grand Bay Hotels and Resorts. The new brand combines 11 existing and future luxury hotels and resorts in the Carefree Resorts and Grand Bay Hotels portfolios, as well as the prestigious Golden Door spa.

Paul A. Nussbaum, chairman and chief executive officer of Patriot American Hospitality, and James D. Carreker, chairman and chief executive officer of Wyndham International, Inc., made the announcement in a presentation replete with magical illusions. Also participating were Richard A. Holtzman, president of Grand Bay Hotels and Resorts, and Deborah Szekely, founder of the Golden Door.

As magician Bill Herz suggested that a new company is "about to re-write the book on the luxury hospitality industry," an illusion brought Nussbaum and Carreker to the stage to announce the formation of Grand Bay Hotels and Resorts. The new brand was then revealed through a sleight-of-hand trick as the words "Patriot American Hospitality; Wyndham International -- Luxury Division," written on a silk banner, changed with a flick of the wrist to "Grand Bay Hotels and Resorts."

"Patriot American Hospitality built its Luxury Division on two first-rate hospitality companies with exceptional portfolios - Carefree Resorts and Grand Bay Hotels," said Carreker. He further explained, "The Luxury Division is one of three tiers of products being operated by Wyndham International for Patriot American Hospitality."

Added Nussbaum, "With our plans for continued growth of the Luxury Division, the time is right to introduce a single brand to represent all of our luxury offerings. We've selected the name Grand Bay Hotels and Resorts, which we believe is, and will continue to be, synonymous with exclusive accommodations and the highest quality amenities available."

Another illusion revealed Holtzman who provided more details about the new brand and its distinctive qualities. "If you respect what Four Seasons and Ritz-Carlton have accomplished in the luxury end of the market, you'll more than appreciate what Grand Bay is all about," Holtzman said. He continued, "While competitors like Four Seasons and Ritz-Carlton made their mark first in the urban market, Carefree Resorts and Grand Bay Hotels specialized initially in developing one-of-a-kind resorts. This has allowed us to approach the industry from the standpoint of creating a great overall travel experience, with an emphasis on sanctuary and adventure, and bringing that expertise to some of North America's most important cities." He also explained that the four Carefree resorts - The Boulders, The Lodge at Ventana Canyon, The Peaks Resort Spa and Carmel Valley Ranch - will maintain their current names.

Holtzman then introduced Szekely, who spoke about the mystique of the Golden Door, which she founded in 1958, and her pride that the Door's basic tenets will find expression in spas developed by Grand Bay Hotels and Resorts. "In expanding the Golden Door beyond Escondido, I've fought hard to find someone who would give consideration to its ideals and philosophy, and I am confident that Grand Bay Hotels and Resorts is the right choice," said Szekely. "I look forward to the opportunity to introduce more people to Golden Door resort spas and Golden Door CitySpas throughout North America and the Caribbean as Grand Bay shepherds the growth of its propriety concept."

Holtzman explained that "all of these things - Golden Door spas at each location, a commitment to quality, and a focus on choice - are what make each Grand Bay hotel and resort magical."

The Grand Bay Hotels and Resorts collection of distinctive destination resorts and urban hotels includes The Boulders in Carefree, Arizona; Carmel Valley Ranch in Carmel, California; The Peaks Resort Spa in Telluride, Colorado; The Lodge at Ventana Canyon in Tucson, Arizona; Grand Bay Hotel, Coconut Grove (Miami, Florida); and the Golden Door in Escondido, California. Properties under development include Grand Bay Hotel, Toronto (opening Fall 1998); Grand Bay Hotel, Philadelphia (opening December 1999); Grand Bay Hotel, Chicago (opening early 2000) and Grand Bay Resort, Key Biscayne (opening in 2000). Las Casitas Village at El Conquistador in Puerto Rico will become a Grand Bay property on September 1, 1998. For more information or reservations, consumers should contact their travel professional or call Grand Bay Hotels and Resorts at its new central reservations number, 1-888-GRAN-BAY, effective July 15, 1998.