The proposal consists of a 100-room family resort, extensive expansion of the current clubhouse and related resort amenities within the 177-acre Sonoma Mission Inn Golf Club, located at 17700 Arnold Drive.

�The filing of this application represents an exciting time for our historic resort,� stated Sanjay Varma, President and Chief Executive Officer of Sonoma Spa Resorts. �We are very grateful for the support we have received from the local community and Sonoma County officials in repositioning the Sonoma Mission Inn & Spa. Its extensive refurbishment and upgrades, the addition of 60 new Mission and Wine Country Suites, 40,000 square foot spa, the new Restaurant and function space, and the acquisition of the historic Sonoma Golf Course, originally developed and owned by the Inn, restores this property to its rightful place in today�s market. In addition, the proposed new resort and its attendant amenities are crucial in meeting the demands of our family business and maintaining our tradition of exceeding guest expectations. The new resort operations will provide an additional 150 new jobs. When combined with the existing Sonoma Mission Inn & Spa operations, it will create the largest hotel company in the county, with more than 700 employees, and will generate more than $4.3 million per year in tax revenues.�

Ulrich Krauer, managing director for Sonoma Mission Inn & Spa said,
�Where the experience at Sonoma Mission Inn & Spa has been designed
primarily for couples on retreat from hectic daily schedules, this new hotel project is being created specifically for families and club members. In the past few years, we have seen a tremendous increase in the number of couples traveling with children. We are looking to meet the demands for family travel by creating a luxurious resort hotel with recreational and resort destination
activities that caters to families. The new hotel rooms will be spacious
enough to comfortably accommodate children traveling with parents. Our new resort amenities will include a �Children�s Camp�, kid�s pool, and restaurants, all of which have been designed first and foremost with family comfort and relaxation in mind.�

The 100-room family oriented hotel with related amenities will be constructed within the undeveloped and excess land of the existing 18-hole golf course. The architectural character will be of three, cluster-style Tuscan villages with interior plazas, entrances with arbors, and access limited to golf carts, service vehicles and emergency vehicles. Resort amenities will include pools, deck space, activity areas, a tennis center, a golf school and a golf academy. A proposed one level parking structure will feature tennis courts on the top level.
Also included in the application are plans to extensively expand the
existing club house, which currently houses the golf academy, pro shop,
restaurant and meeting rooms. New additions include a ballroom facility,
upscale locker rooms, a formal dining room with terrace, tennis courts and swimming pool.

In addition, the transition of Sonoma Mission Inn Golf Club from public to private facility is expected to be completed by year-end 2001. The 177-acre, 18-hole course will offer access to club members and resort guests.

Located 40 miles north of San Francisco, in the heart of California�s
historic and prestigious wine country, the Sonoma Mission Inn & Spa is a
premier resort, providing the country�s finest European spa experience.  The Inn is recipient of Mobil�s prestigious Four-Star and AAA�s Four-Diamond awards.

Sonoma Mission Inn & Spa is managed by Sonoma Spa Resorts, also operators of the Ventana Inn & Spa in Big Sur, California. Both resorts are owned by Crescent Real Estate Equities, Ltd., which has a number of other resorts, hotels and land developments in their portfolio including: Canyon Ranch, Tucson, Arizona; Canyon Ranch, Lennox, Massachusetts; Desert Mountain, Scottsdale, Arizona; Four Seasons Houston, Texas; Hyatt Regency Albuquerque, New Mexico; Hyatt Regency Beaver Creek, Colorado; Marriott City Center, Denver, Colorado; Omni Austin, Texas and Renaissance Houston, Texas.