FOR IMMEDIATE RELEASE

LUXURY DESTINATION RESORT OPENS IN NAPA

Pacific Hospitality Group and Shell Vacations LLC collaborate to develop elegant destination resort at gateway to Napa Valley

(NAPA, Calif. – July 2006) Pacific Hospitality Group, a hotel development and management company, and Shell Vacations LLC, a developer of vacation ownership resorts, opened The Meritage Resort and Vino Bello Resort in Napa, California. The resort opened with an upscale, invitation-only event and an auction of Meritage wines – blended Bordeaux-style wines.

Adjacent to one another, both hotels create a luxury destination in Napa Valley with an opening total of 274 luxuriously appointed guestrooms and suites, a gourmet restaurant with an award-winning chef, a wine bar, two swimming pools and fitness centers, a wedding chapel, grand ballroom and meeting space.

The destination resort, situated on eight acres of private vineyards and located at the base of Napa’s famed Grape Crusher statue, offers the most contiguous meeting space in the Napa area with a promenade pre-function reception area and a well-appointed grand ballroom that may be divided into ten sizeable break-out rooms.

“California’s Wine Country is an increasingly popular destination for sophisticated travelers, and the impetus for both hospitality companies to join forces,” says Timothy R. Busch, CEO of Pacific Hospitality Group and a partner in Trinitas Cellars wines of nearby Sonoma.

Both companies worked together to design compatible resort features, guest functions and an overall complementary architectural style. The result, says Busch, is designed to be a seamless destination experience.

The Meritage Resort will provide all services for Vino Bello including check-in and check-out assistance, says Shell Vacations CEO Sheldon Ginsburg. “We’re confident that our vacation resort owners will be well taken care of and greatly interested in dining in Siena, the gourmet restaurant onsite, and in all other resort amenities.”

Hotel General Manager Michael Lennon, former hotel manager of the four-diamond Omni San Francisco Hotel, will oversee management of both resorts. Jeffrey L. Longenecker, an award-winning chef, and Sean Dempsey, a well-recognized food and beverage director, have been engaged as executive chef and director of food and beverage services, respectively.

Guestrooms in The Meritage Resort have Tuscan-inspired décor with dark woods, scrolling patterns and wicker appointments. Three spacious executive suites offer living rooms, private dining rooms and/or board rooms, master suites and baths, fireplaces and balconies.

Vino Bello’s studio, one- and two-bedroom suites are similarly styled with Tuscan decor and offer fully appointed kitchens or sleek kitchen-bars, living and dining areas, fireplaces, jetted tubs and multi-head showers. Both resorts have added oversized flat screen televisions to all rooms along with technology features.

Vino Bello will add 60 more vacation ownership suites in early 2007. In addition, the destination resort will open an immense wine cave and an underground spa believed to be the first spa-cave in the world along with walking trails and public spaces throughout the vineyard.

For information and reservations regarding The Meritage Resort at Napa, call 1.866.370.NAPA (6272). Information is also available at www.themeritageresort and www.vinobelloresort.com.

About Pacific Hospitality Group

Pacific Hospitality Group (www.pacifichospitality.com) develops and manages an impressive portfolio of luxury hotels and resorts including the Crowne Plaza® Anaheim Resort near Disneyland, Doubletree® Hotels in Irvine and Santa Ana, and Havasu Inn at Lake Havasu in Arizona. With corporate headquarters in Irvine, California, Pacific Hospitality Group is a member of Preferred Hotels and Resorts Worldwide, an exclusive global brand of independently owned luxury hotels and resorts that requires each property to meet exceptional criteria of hospitality standards.

About Shell Vacations LLC

Shell Vacations LLC, is one of the nation’s leading independent vacation ownership developers. Headquartered in Northbrook, Illinois, the company owns Shell Vacations Club and Shell Vacations Hospitality with more than two dozen vacation ownership resorts and resort hotels throughout the U.S. and Canada. For info: www.shellvacationsclub.com or www.shellvacationshospitality.com. Shell hotels in Northern California include The Donatello, The Inn at the Opera and Fisherman Wharf Suites; in Southern California, Shell owns and operates Peacock Suites near Disneyland in Anaheim and Harbor Vacations Club in San Diego.

For all press inquiries for The Meritage Resort, Siena or Spa Terra, please contact Andrew Bradley, Marketing and Communications Manager at abradley@meritageresort.com or 707.251.1942.