J.P.Morgan Investment Banking

APPENDIX Comparable precedent transactions Private and public - target transactions Date announced 1/30/2006 6/14/2005 10/24/2004 7/15/2004 6/4/2004 2/12/2004 Observations Acquirer Target Colony Capital & Kingdom Hotels/ Fairmont Hotels & Resorts Blackstone/Wyndham JPMorgan Blackstone/Boca Resorts Harrah's Entertainment/ Caesars Entertainment MGM Mirage/Mandalay Resort Group CNL Hospitality/KSL Recreation Corporation Lodging - median Gaming -median Description of target Fairmont is a leading owner/operator of luxury hotels and resorts. Fairmont's managed portfolio consists of 87 luxury and first-class properties Wyndham Intemational offers upscale and luxury hotel and resort accommodations in the U.S., Canada, Mexico, the Caribbean, and Europe Boca Resorts owns 5 luxury resorts and 4 golf clubs located in South Florida Caesars Entertainment owns 22 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Mandalay Resort Group owns and operates 11 properties in Nevada as well as casino's in Mississippi, Illinois and Michigan KSL's portfolio consists of leading resorts in Hawaii, Arizona and other vacation destinations Size Forward EBITDA (mm) multiple 15.8x 3,900 3,240 1,184 9,440 7,750 2,160 ■ K-2 is a blend of lodging and gaming ■ K-2 is not expected to offer the same level of synergy opportunities as a strategic buyer ■K-2 EBITDA is generally tax-exempt 12.6x 11.8x 8.5x 9.5x 13.1x 12.9x 9.0x PROJECT PLATO 19

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