Toll House Hotel Purchased by Larkspur

Larkspur Hotels, LLC, one of the nation`s fastest growing independent
hotel companies, announced today that it has acquired the Toll House
Hotel, located in Los Gatos, California.

“We are very excited to have purchased this wonderful hotel,” said Karl
Hoagland, chairman, president, and CEO of Larkspur Hotels, LLC. “The Toll
House is a perfect fit with our strategy of acquiring, renovating and
improving the operation of unique three and four-star independent hotels.
We intend to invest more than $1 million in the renovation and upgrade of
the Toll House Hotel and restaurant in 2004. Larkspur Hotels are known for
caring, personalized service combined with superior guest amenities, and
that tradition will continue at the Toll House. Along with our Larkspur
Landing Hotel and the Pruneyard Inn, both located in nearby Campbell, the
Toll House allows us to continue to build a strong presence in the South
“We love the Toll House Hotel and the town of Los Gatos,” continued
Hoagland. “The Toll House reflects the charm and character of this
wonderful community, which is a natural fit with our company`s culture. We
are thrilled to become part of this community and our mission is to be
responsible stewards of this hotel and to improve it for the town of Los
Gatos and our hotel guests.”

Nestled at the base of the Santa Cruz Mountains and just 12 miles from the
San Jose International Airport, the Toll House Hotel features 115
beautifully appointed guest rooms and suites. Rooms range from Deluxe
Rooms, which offer traditional hotel comforts, to two-room Parlor Suites,
which feature a separate sitting room and veranda with scenic mountain
views as well as a Home Theater system. All guest rooms feature high-speed
Internet access, two-line phones, in-room coffee makers, irons, ironing
boards, hair dryers and air- conditioning. Additionally, a complimentary
continental breakfast is provided to hotel guests each morning.

The hotel also houses the full service Toll House Restaurant, serving
guests and local residents continental cuisine with a California
influence. Entree items range from steaks to fresh seafood. The restaurant
is open seven days a week for breakfast and dinner and features a
champagne brunch each Sunday. Adjacent to the restaurant is the casual
Fireplace Lounge, which offers a full service bar and a place for guests
to relax and wind down.
The Toll House features more than 4,000 square feet of state-of-the-art
meeting and banquet facilities that can accommodate groups of up to 200
people for a variety of events. A full range of audio visual equipment,
including overhead projectors, 7 foot screens and high-speed Internet
connections, is available to support all business needs. The hotel`s
customized meeting offerings and personalized services have earned it an
outstanding reputation, voted by Silicon Valley newspapers as “the best
place to hold a small business meeting.”

Established in 2003, Larkspur Hotels, LLC and its affiliate Larkspur
Hospitality Development and Management Company, LLC, is a rapidly growing
and highly successful hotel company based in Corte Madera, California. The
company acquired its first hotel, the four-star RiverPlace Hotel and
Lucere Restaurant in Portland, Oregon, in July 2003 and has designed and
approved a $3 million renovation and repositioning to be completed by June
2004. Larkspur and its affiliates own and operate 19 hotels comprising
three brands (Larkspur Landing, Candlewood Suites and Hilton Garden Inn)
in suburban areas of Northern California and the Pacific Northwest. The
Company also manages the Pruneyard Inn in Campbell, California, owned by
Equity Office Properties. All Larkspur Hotels feature guest-driven common
threads for service and amenities that drive industry-leading guest
satisfaction scores as measured by Market Metrix. Hotel Business listed
Larkspur as one of the top 15 hotel management companies in the United
States based on Revenue per Available room. For additional information on
Larkspur Hotels, LLC and LHDMC, visit