The Luxe Hospitality organization is organized around two primary functions: the Luxe Marketing Group, providing hotel reservation and marketing services; and the Luxe Franchise Hotel Group, developing a new worldwide franchise.

The parent company is acquiring a number of existing reservation and marketing companies that currently represent more than 200 hotels on five continents and offer a combined total of more than 100 years of reservation and marketing experience.

"This multimillion-dollar venture will create a broadly based hospitality group that encompasses businesses with annual projected revenues exceeding $1 billion," Harkham said. "Our mission is to provide the highest-quality reservation and marketing services and franchise affiliation to independent high-end and luxury hotels."

The Luxe Hospitality group fills a unique niche in the hospitality industry by representing the interests of independent hotel operators, who are generally ignored by larger hotel chains and have to compete very aggressively for a share of market.

Luxe Hospitality has put together a management team that represents "the best and brightest" professionals from the global hospitality industry, to provide these independent hoteliers with tailored reservation and marketing services and franchise affiliation. The group currently has sales offices in Los Angeles, Tokyo and Sydney, with plans to open offices in New York and London by the end of January 1999.

Luxe Hospitality Corp.'s Luxe Marketing Groups portfolio consists of a collection of more than 200 world-class 3-1/2 to 5-star hotel properties in Europe, Asia, Australia, North and South America. The company plans to grow this system to more than 700 up-scale, boutique properties over the next five years, including many that are internationally recognized for luxury and first-class accommodations.

Over the next year, Luxe Hospitality Corp. will expand the coverage and influence of its reservation and marketing service, currently the seventh-largest reservation service in the United States, will rollout a unique franchising opportunity to 3-1/2 to 5- star independent, high-end and luxury hotels.

At the forefront of the Luxe Hospitality Group is hospitality entrepreneur and businessman Harkham, who has a strong track record in hotel investments, management and financial turnarounds. In addition to the ownership of three hotels, Harkham has substantial investments in commercial real estate in the United States and Australia. He is also a recognized philanthropist and art collector.

Luxe Hospitality Corp., based in Los Angeles, is a private, diversified hospitality organization providing global reservations and marketing services and franchise affiliation. The company represents more than 200 luxury boutique hotels throughout the world and will be providing a unique franchise system for independent, high-end luxury hotels worldwide.