September 24, 2007,
TORONTO - The Board of Governors of Exhibition Place today approved of entering into exclusive negotiations with HKHotels following their response to a Request for Proposal for the development, construction and management of an on-site, privately-financed convention hotel.

HKHotels is a privately run company that successfully operates four boutique hotels in New York City and a new resort hotel in Prague. The hotel developer has put together a strong development team that includes NORR Architects and Urban Strategies, and is committed to achieving LEED (Leadership in Energy and Environmental Design) Silver rating design standard. The first phase of this development recommends an urban resort-style hotel, with at least 300 rooms, complimented by amenities including tennis courts, pool, health club, underground parking and green space.

"The proposal from HKHotels demonstrated a well thought out urban master plan for the hotel site. It combines the needs and quality of a convention-style hotel, with environmental sensitivity and spectacular design features that will compliment the existing buildings on the grounds including the award-winning Direct Energy Centre and the many heritage properties at Exhibition Place," said Deputy Mayor Joe Pantalone, Chair of Exhibition Place.

Four potential sites, each representing approximately 3.5 acre parcels were identified by Exhibition Place in the 2006 Request for Proposal and Hotel Development Market Brief. HKHotels proposal sited the hotel in the lands south of the Direct Energy Centre, and adjacent to the Automotive Building (see site plan attached).

About Exhibition Place
Exhibition Place is Canada's largest entertainment venue, attracting over 5.2 million visitors a year. The site is an integral component of Toronto and Ontario's economy, particularly with respect to sport, festivals, recreation, culture and tourism. Occupancy of the proposed hotel would be driven by exhibition and convention delegates and attendees at Direct Energy Centre and the new Conference Centre project; and those attending annual events such as the Canadian National Exhibition, Toronto Grand Prix, and the Royal Agricultural Winter Fair. Besides creating a business synergy with the tenants across the grounds, demand for a hotel will also be driven by new commercial and residential developments such as Liberty Village and Fort York Neighbourhood surrounding Exhibition Place. …/2 The selection of a hotel developer is yet another element in the ongoing rejuvenation of Exhibition Place and follows City Council's approval of the proposed renovation of the Automotive Building to create a Conference Centre complete with ballrooms and meeting facilities. In 2004 Exhibition Place undertook an environmental stewardship initiative, which included the promotion of sustainable development, environmental initiatives and leading edge green technologies and practices across the 192-acre site. This environmental initiative has resulted in award winning recognition across North America, and has established Exhibition Place as a world leader in energy-efficient technologies.

About HKHotels
HKHotels is a fully integrated hotel company involved in the construction, ownership and management of hotel properties. Founded by Henry Kallan and based in New York, HKHotels is a privately owned and operated hotel collection that takes a unique perspective to the business of hospitality. Since opening its first property in 1992, HKHotels has become renowned for developing hotels that have a distinct point-of-view and offer an outstanding level of service quality. Designs for new HKHotels are currently under development in other key locations in the U.S. and Europe.

For additional information go to www.explace.on.ca