"Industry Background"

Probably the most significant change in the Hospitality Industry over the past 50 years is the "Suite-Hotel" phenomena. Not since cars began pulling up in front of motel rooms to accommodate the national trend of automobile travel has the Hospitality Industry gone through such an aggressive program of development.

According to Hotel and Management Magazine, a monthly periodical published by the hospitality industry, "Suite-Hotels" now occupy 20% of the existing room inventory nationally. All major players in hotel development, Marriott, hilton, Howard Johnson, Radisson, Embassy are actively adding "suites" to their management portfolios.

The primary reason for this dramatic growth in "all suites" is the "value perception" by the consumer. Most major suite hotels offer concierge service, hospitality suites for business travelers, executive board rooms, and generally stress in their marketing the implied concept of security, which is a major concern of the female business traveler - all of which is delivered, at a price that is competitive with traditional first class accommodations in a particular market area.

Amenities, Size convenience, and affordability are the features that set "suite hotel" standards a cut above their competitors and are the primary reasons this segment of the Hospitality Industry is experiencing such DRAMATIC GROWTH.

American Icon Resorts is a Florida "Limited Real Estate Partnership". The partnership is a diversified company specializing in the marketing and sales of Condominium-Hotel and Timeshare projects.

The partnerships basic corporate philosophy is to develop and market resorts in already proven tourist destinations.

American Icon markets it's product through a network of national and international real estate brokers and through it's professional "onsite" sales center staff.

"The Managing General Partner"

Robert L. Sirianni Sr. of Orlando, Florida was recruited by U.S. Capital Corporation in 1987 to complete the sell-out of the Enclave at Orlando: Orlando's first high rise condo-hotel project. The aggregate total sell-out of the project was $40,000,000, which represented 321 luxury unit sales. Following the Enclave, Bob, as Corporate Vice President was totally responsible for the sale and closing of 210 condominiums at the Parc Corniche Resort located on the International Golf Club at Grand Vista. Bob also negotiated the sale of the commercial property at Parc Corniche to the current hotel management operator, and negotiated the land contacts extensively with the Vista Group, the owners of the 24 acres Parc Corniche parcel. Bob has recruited and trained most of the successful condo salesmen in the Orlando Market. He has a reputation of bringing high energy to any sales organization, however his most obvious professional characteristic is that that he generally exceeds in his sales projections and completion projects on time. Bob's vast experience in handling MASS REAL ESTATE CLOSINGS, in a tight time frame, are unique to the Central Florida Real Estate Industry.

Since leaving U.S. Capital Bob has held various executive positions in the Timeshare Industry and he has established himself as a goal oriented project manager. His Timeshare experience has lead to successful ventures in Myrtle Beach South Carolina, Orlando, Daytona Beach, Naples, Puerto Rico, London, England, and the Ron Jon Cape Caribe Resort in Cape Canaveral, Florida. Currently, Bob is the founder and president of American Icon Resorts, Inc. American Icon develops, markets, and sells condominium-hotel and timeshare projects, and leads the industry in the "Branding" of resort properties.

"Company Info"

The "Condo - Hotel"

Definition

Basically, a condominium-hotel is a hybrid of two concepts. Each condominium is sold to an owner/investor, as a vacation home, in fee simple title. The purchaser has an unlimited right to the use of their residence and participation in the rental program is optional. Revenue is shared on a percentage basis between the Hospitality operator and the individual unit owner. General, the split between operator and owner is 60/40; 60% to the owner and 40% to the managing entity. In some cases the split between management and owner will be as high as 50/50. This depends largely on the extent of hotel services the "operator" provides, and the cost of doing business in a particular market area.

The primary features of a condominium-hotel, sold as real estate, are the following:

1. Furnished, Kitchen Equipment, and Accessories,
   The purchaser is provided a "turn-key nit", as a part of their purchase price. All furnishings, fixtures, kitchen appliances, accessories, and decorating are part of the Standardized Package.
   
2. Right to Use,
   The owner has unlimited right to use their residence. When a purchaser elects to enter into an individual management contract with the hospitality operator, there exists certain limitations with regard to personal occupancy. However, the ultimate "control" of the unit rests with the owner. In order to realize certain tax benefits derived from ownership as well as to maximize the income potential to "offset" monthly expenses, the owner and managing entity must agree on a unit by unit basis as to their business relationship.
   
3. End Loan Financing
   The developer arranges End-Loan Financing for the purchasers. A forward commitment from a lender, representing an 80% loan to value mortgage on all units is secured prior to the construction start date. The developer originates the loan. Processing of the application is generally done through the lender's loan processing department.
   
   The purchaser has the right to secure their own end-loan financing or provide "all cash" upon the closing of their unit.
   
4. Tax Benefits
   Under the Tax Reform Act of 1986 (TRA 1986), the owner of a vacation home has certain tax benefits that were extended and not available in other forms of real estate investment. Depreciation, interest right-off, and expenses are available to the purchasers, with certain limitations to offset ordinary income; providing the residence owner is active in the investment.
   
5. Association Manager/Hospitality Operator
   In a condominium-hotel, the Hospitality firm acts as both the hotel business operator and the manager of the owners' Condominium Association. The operator is totally responsible to the condominium owners and the Board of Directors that they elect to collect monthly association dues from all owners to maintain the property, provide security, and contingencies for reserve.
   
   As "Association Operator", the managing entity is bound by the Condominium Association Articles of Incorporation and Bylaws which are regulated by the State of Florida.
   
   As Hotel Operator, a contractual business relationship exists between owner and operator and is generally reviewed by both parties on an annual basis. By contract, "the operator" is required to issue a monthly Income and expense summary to the owner, along with payment of any income due the owner from the preceding monthly rental of the unit.
   
6. Ancillary Sources of Income
   In a condominium/hotel sold as a fee simple real estate, the resident owner participates in the revenue generated on their individual unit and not on the ancillary sources of income from services and facilities provided by the Hospitality Operator.