Saturday BriefingPage �

October 11, 2008

Jazz Brunch on the Beach at

Outrigger Serenity Terraces Resort

By Panjama Leamsuwan

The development and hotel management team at Outrigger Serenity Terraces, Phuket, Thailand, recently celebrated the completion of the first phase of construction. This part of the project included the clubhouse, the infinity-edge swimming pool, and the two-bedroom beachfront pool suites. Formula 1 Champion Kimi Raikkonen was the guest of honor along with some 150 other friends and community leaders.

Outrigger Lodging Services Celebrates 20 Years

Last week, I was home alone and was totally surprised when a knock on the door announced the delivery of a beautiful bouquet. A card said that John Fitts had sent the flowers to recognize and celebrate the 20th anniversary of the founding of Outrigger Lodging Services. How time flies! It all began a little over two decades ago when, like now, the economy was going through a rough time. Across the country, there had been a great deal of overbuilding, fueled by low-interest loans provided by the nation’s savings and loan institutions. Like today’s financially troubled investment banks, the savings and loan institutions in the 1980s had departed from their original mission, which in that case was to provide a safe haven for individual savings accounts and make mortgage loans to homeowners. In that decade, they began to make large, risky commercial loans, issue credit cards, and invest in real estate development ventures. When the tax laws changed in 1986, it all came crashing down, and a total of 747 savings and loan institutions failed, putting thousands of homes and real estate projects into foreclosure across the continent and in Hawaii.

Continued on page 6

Continued on page 3

Dr. Richard Kelley; Keri Thompson, Director of Sales, Hilton Garden Inn Denver Airport; Martti Mannoja, Senior Vice President & Chief Financial Officer of Outrigger Lodging

Services; and John Fitts, President and Chief Executive Officer of Outrigger Lodging Services; at Hilton Garden Inn’s Annual Bonus Dinner, February 2008

The Outrigger logo graces the patio on the beach at Phuket, Thailand

Saturday BriefingPage 2

Saturday Briefing is published by and for employees of

Outrigger Enterprises Group.

Editor-In-Chief: Richard Kelley Senior Editor: Marie Casciato Assistant Editor: Lehua Kala‘i Contributing Writers: Employees

of Outrigger Enterprises Group Circulation: Marie Casciato

Visit us online at:www.saturdaybriefing.outrigger.com

Submit suggestions, comments, and news tidbits to Marie Casciato at

marie.casciato@outrigger.com or via interoffice mail to OEH/Executive Office,

or contact her at (808) 921-6601.

© 2008 Outrigger Hotels Hawaii An Equal Opportunity Employer

Oct 28: Jack Hao III and Zhi Liang Peng.

Oct 29: Elvira Sagucio, Narciso Cacal, Silvia Ortiz, and Allan Chung Yeung.

Oct 30: Amber Hudnall, Michelle Kelly, Laura X X Li, Xorda Laurin, Nenij Mark, Jennilyn Sato, Elpidio Salud, Bob T. Owens, Jim M. Heather, Annette Creamer, Sean C. Ling, Jayson C. Abut, Brett S. Soboleski, and Danny I. Ojiri.

Oct 31: Robert Giggey, Jessica A. Nagato, Ernesto Q. Yap, Robert L. Casco, and Cheryl C. Suda.

Nov 1: Nestor P. Nacis, James Hodges, Jr., Filomena Taylan, Thomas J. Fischer, Imelda V. Martinez, Pam A. Cabrera, and Doreen Nohara.

Nov 2: Toshiko Iida and Lucy Laborte.

Nov 3: Tita E. Aquino, Lapule L. Cummings, Kathy Hansberry, and Yuk Doong Chee.

Aloha United WayBy Charlene Luning

Each year, Aloha United Way (AUW), a nonprofit organization ask companies and the general public to support their efforts in helping those with special needs, reducing homelessness, increasing economic self-sufficiency, cutting crime & drug use, improving early childhood development, and increasing volunteerism.

• AUW helps fund partner agencies like the Mental Health Association, Boy Scouts of America, and Child & Family Services.

• AUW 2-1-1 is a confidential, free 24-hour, 7 day a week information and referral service on all islands. Check out their database at www.auw211.org/ it includes about 4,000 government and nonprofit programs and services.

• AUW Volunteer Hawaii enables groups and individuals to search online for volunteer opportunities.

• Contributions are tax deductible.

If you would like to help Aloha United Way in their efforts, please see your manager or supervisor for a pledge form and more information. This year’s campaign will begin on October 10, and end on October 31. Participation is completely voluntary. If you have further questions regarding Aloha United Way, please call me at 921-6951, or you may go to www.auw.org. Mahalo!

Employment Opportunities

If you are interested in the positions listed below and meet the qualifications, please submit your resume and apply online at outrigger.com. If you have any questions, please call Eric Ishikawa at (808) 921-6989. Application deadline for the following positions is October 17, 2008.

Director of Sales and Marketing(Full Time)

We are currently looking for a Director of Sales and Marketing for a brand new luxury boutique hotel in Waikiki. At least five years of hotel sales and marketing management experience is required. Knowledge of hospitality sales, market positioning, market segments, advertising and promotion, internal marketing, and distribution channels is essential. Must be able to establish, monitor and maintain all major booking channels, including Global Distribution System and related websites. Must have excellent presentation skills and be effective in communicating both verbally and in writing. Traveling to conferences and trade shows is required.

Guest Service Manager(Full Time)

A minimum of two years Front Desk and supervisory experience is required. Must have excellent communication skills, and able to speak in English and Japanese. Must be flexible to work any shift and day.

Saturday BriefingPage 3

Fiji Host Local Government Association Convention

The Outrigger on the Lagoon – Fiji had the honor of being selected as the host hotel for the Fifth Annual Fiji Local Government Association Convention. About 120 delegates including all the Lord Mayors, their Deputy, Town Clerks, and Councillors attended the event.

Here, Miss Outrigger on the Lagoon – Fiji (Semaema Nasedra) places a garland on the Lord Mayor of Suva City Ratu Peni Volavola during the

opening of the Conference.

Joy to the World!By Heather Doeringer

Looking for a distinctive way to celebrate the Holidays? Here’s a great idea—embrace the world’s many cultures at this year’s

Employee Holiday Party. Join the ‘ohana on Thursday, December 11, 2008 at Ala Moana Hotel’s Hibiscus Ballroom and Garden Lanai, beginning at 4:30 p.m. Indulge in scrumptious hors d’oeuvres from the seven continents around the world while enjoying unique cultural entertainment. You are encouraged to dress in “cultural holiday attire,” as we are celebrating all traditions on this special night. See your supervisor to sign up and provide your $10 refundable deposit. Sign-up sheets and monies are due back to Char Luning/OEH/HR by November 14. Watch for more details about this exciting event in upcoming issues of the Saturday Briefing!

Jazz Brunch on the BeachContinued from page �

front: Khun Lek, Khun Nate, Khun Gai, Khun Thai, and Khun Tangmoback: Khun Liz, Darren Edmonstone, and Michael Cowan

They gathered on the 200-meter beach in front of the resort and enjoyed brunch and the sounds of a famous local jazz band. Among the VIP guests were The Director of Tourism Authority of Thailand, Southern Chapter, The President of Phuket Real Estate Club, The Chief Reporter from the Phuket’s first English newspaper, Phuket Gazette, and many more.

Saturday BriefingPage �

Free Mammograms andProstate Cancer Testing

By Lauren Reis

Outrigger/OHANA Hotels & Resorts is committed to helping our employees maintain their good health. As part of this ongoing commitment, we are pleased to announce the 2008 Mammography and Prostate Cancer Project. This project offers our employees free screening for Breast and Prostate cancer—two of the most common types of cancer in the United States.

Free Mammograms Breast cancer is the most common cancer (other than skin cancer) among women in the United States. In 2008, more than 250,000 women will develop some form of this disease. Although we do not know how to completely prevent breast cancer, there are steps that women can take to reduce their risk of developing cancer, and to find it early if it does occur. Following breast cancer early detection guidelines, such as those published by the American Cancer Society, is very important because the earlier a breast tumor is found, the easier it is to treat. The recommendations include: self breast exam, clinical breast examinations performed by a health professional, and yearly mammograms starting at age forty. Each October, in conjunction with the National Breast Cancer Awareness Month, Outrigger assists in coordinating FREE mammograms for those employees who meet the American Cancer Society guidelines for receiving a mammogram. Mammograms can be obtained through Kaiser and HMSA from October 19 to November 30, 2008. To schedule your appointment please contact your health care provider at the numbers listed below. Be sure to mention you are an Outrigger/OHANA employee

when you call to receive the full benefits.

• Members of our ‘ohana covered by Kaiser Permanente, please call Kaiser at (808) 432-5100.

• Members of our ‘ohana covered by HMSA HealthLink, HPH Plus, and PPP, please call the Kapiolani Breast Center at (808) 535-7000.

Free Prostate Cancer Testing There will be an estimated 186,320 newly diagnosed cases of prostate cancer in the United States during 2008. According to the National Cancer Institute, prostate cancer is the second most common type of cancer among men in this country. The American Cancer Society recommends all men over age fifty be screened every year for prostate cancer. Screening includes both a digital rectal examination done by a health care provider, and a blood test called the “Prostate Specific Antigen” or “PSA”. Outrigger has arranged for male employees, over the age of fifty, to receive FREE PSA blood tests to detect hidden prostate cancer. The test can be obtained through Kaiser and HMSA from October 19 to November 30, 2008. To schedule your appointment please contact your health care provider at the numbers listed below. Be sure to mention you are an Outrigger/OHANA employee when you call to receive the full benefits.

• Members of our ‘ohana covered by Kaiser Permanente, please call Kaiser at (808) 432-2274.

• Members of our ‘ohana covered by HMSA HealthLink, HPH Plus and PPP, please contact there PCP.

Outrigger/OHANA employees working outside of Hawaii should check with their Director of Human Resources to find out the benefits and facilities for mammograms and PSA testing in their area. These screening procedures are excellent and may save your life if a cancer is detected early. Please take advantage of this wonderful program—all you have to do is schedule an appointment with your healthcare provider. For more information, please contact the Human Resource Service Center at 921-6965.

Saturday BriefingPage �

The venerable vocal jazz performer Jimmy Borges is being joined by his esteemed friends and fellow award-winning musicians Gabe Baltazar and Betty Loo Taylor at Outrigger Enterprises Groups’ next Nā Mele No Nā Pua free concert on Sunday, October 26, from 4 p.m. to 5:30 p.m., on stage at the Embassy Suites® - Waikiki Beach Walk® Grand Lanai.

Jimmy Borges is one of Hawaii’s most iconic performers with a musical career that has spanned 50 years. He’s performed in nightclubs, showrooms, and concert halls all over the world, including San Francisco, Vancouver, Montreal, New York, Las Vegas, Tokyo, and Rio de Janeiro.

Whether it’s jazz, Broadway, well-known classics, or contemporary tunes, Borges does it all with style and finesse. Nā Hōkū Hanohano Award winner Gabriel “Gabe” Baltazar Jr. is recognized as one of the world’s great alto saxophone players. He began his musical career as a featured soloist with the Stan Kenton Orchestra, with whom he recorded 18 albums. He also collaborated

with other talented musicians, including Dizzy Gillespie, Benny Carter, Cannonball Adderly, Howard Rumsey’s Lighthouse All-Stars, James Moody and the Saxophone Stars, and the Oliver Nelson Orchestra, among others.

By Kathy Hansberry

Betty Loo Taylor, notable pianist and jazz musician, became a piano prodigy at the tender age of three. Betty Lou Taylor’s life story was featured in a short film documentary entitled “They Call Her Lady Fingers,” which won the Blockbuster Video Audience Award for Best Documentary in the 2003 Hawaii International Film Festival. In June of this year, she received a Nā Hōkū Hanohano Award for Jazz Album of the year for “For All We Know,” a special collaboration with one of Hawaii’s distinguished singers Joy Abbott.

Outrigger’s Nā Mele No Nā Pua signature concert series is held bi-monthly on the final Sunday of the scheduled month. Each concert is held from 4 p.m. to 5:30 p.m. on the Grand Lanai of the Embassy Suites - Waikiki Beach Walk hotel. Since its inception, some of Hawaii’s most prominent and legendary entertains have taken the Na Mele No Na Pua stage, including Eddie Kamae, the late Aunty Genoa Keawe, Ledward Kaapana, Jerry Santos of Olomana, and Willie K. Concerts are free and open to the public while seating allows. Elevator access to the Grand Lanai is located on Lewers Street ground level. Valet parking is $6 for up to four hours at the Embassy Suites - Waikiki Beach Walk (201 Beachwalk) and the Wyndham at Waikiki Beach Walk® (227 Lewers Street), with any same-day purchase from any Waikiki Beach Walk® merchant.

Jimmy Borges

Gabriel “Gabe” Baltazar Jr.

Betty Loo Taylor

Saturday BriefingPage 6

Two such properties were the Waikiki Hobron Hotel and the Maile Court Hotel. My father, Outrigger co-founder Roy Kelley, and I decided jointly to put bids in to buy these two properties at the bankruptcy auctions, believing that we might get one. As luck would have it, our bids were accepted for both properties and we were suddenly faced with the challenge of staffing and operating two more hotels, each with 600 rooms. We were already stretched thin managing our existing hotels in Waikiki! I was scrambling to put things together when John Fitts walked into my office at the Outrigger Prince Kuhio Hotel and introduced himself as head of the management company that had been operating the Maile Court Hotel. “Do you need any help?” he asked. “I sure do,” I told him.

Outrigger Lodging Services Celebrates 20 YearsContinued from page �

OUTRIGGER LODGING SERVICESProperties Currently Managed

Property Name Location Category Keys

Banyan Harbor Resort Lihue, HI Timeshare/rental 148 The Carriage House Las Vegas, NV Timeshare 155 Clarion Hotel – Universal Orlando, FL Hotel 308 Hotel Amarano Burbank Burbank, CA Boutique Hotel 99 The Grafton on Sunset West Hollywood, CA Boutique Hotel 108 Hilton Garden Inn Denver Airport Aurora, CO Hotel 157 Jackson Hole Lodge Jackson Hole, WY Boutique Hotel 60 Le Montrose Suite Hotel West Hollywood, CA Boutique Hotel 135 Le Parc Suite Hotel West Hollywood, CA Boutique Hotel 154 Marin Suites Hotel Corte Madera, CA Boutique Hotel 100 Best Western Plantation Hale Suites Lihue, HI Condo Hotel 160

Continued on page 7

Dr. Richard Kelley; Gian Gandolfo, General Manager, Hilton Garden Inn Denver Airport; John Fitts, President and Chief Executive Officer of Outrigger Lodging Services; and Martti Mannoja, Senior Vice President & Chief Financial

Officer of Outrigger Lodging Services (back); at Hilton Garden Inn’s Annual Bonus Dinner, February 2008

Saturday BriefingPage 7

Beginning that day, a great friendship arose which led to the formation of a hotel management company, Outrigger Lodging Services (OLS). It has been quite a ride. Starting with an inventory of just four hotels, OLS has been the management company for a total, over the years, of 83 different properties, most of which have been in the western United States. OLS has operated hotels with well-known brand names such as Hilton, Marriott, Sheraton, Doubletree, Best Western, Hampton Inn, Holiday Inn, etc. Many are one-of-a-kind boutique hotels with names such as Hotel Amarano, The Grafton on Sunset, Le Parc, and Le Montrose. OLS currently has 11 properties under management. It has a very stable, talented staff in its Encino, California offices; many have been with OLS for 15 to 20 years. That includes John’s assistant, Julie Messa, who has been with the company since it was formed in 1988. OLS is a select, boutique management firm. It will only take on the management of a hotel if it feels the property is up to its standards and/or has the potential, with strong management, to do so. A quality relationship with the property’s owner is vital. OLS must feel that it can significantly improve the results for any hotel it commits to. Once a property is under OLS management, it monitors progress very carefully. OLS is famous for its Monday morning call-ins. CEO John Fitts and Chief Financial Officer Martti Mannoja personally telephone each hotel manager and quiz him or her on what happened during the previous week,

Outrigger Lodging Services Celebrates 20 YearsContinued from page 6

what to expect for the coming week and how that compares to budget. The managers are on the hot seat and better have the right answers! John and Martti hate surprises. Another secret weapon is John’s lovely wife, Toni, a skilled interior designer who has led beautiful and cost-effective renovations in many OLS properties. By sticking to its solid hotel management principles, this team has created excellent results. No hotel owner has ever fired OLS as a management company for poor service or disappointing results. Unfortunately, that kind of success is a double-edged sword. Improved management leads to improved profits and higher property values. That in turn motivates owners to cash in the increased value by selling the property. New owners, however, often have their own management company or one they customarily work with on other deals. To put it another way, thanks to the great job OLS does, it often finds it has worked itself out of a contract! No matter; it has been a great run. To John, Martti, Toni, Julie, and all the staff at OLS, congratulations and thanks for being part of the Outrigger ‘ohana.

Martti Mannoja, Senior Vice President & Chief Financial Officer of Outrigger Lodging Services and Julie Messa, Assistant to the President of Outrigger

Lodging Services at OLS’s Leadership Conference, July 2008

Toni and John Fitts, circa 1988

Saturday BriefingPage �

Outrigger & OHANA Hotels to Celebrate the Birthday of Princess Ka‘iulani with Lei Draping

By Kathy Hansberry

Outrigger Hotels & Resorts and OHANA Hotels & Resorts will commemorate the birthday of Princess Victoria Kawēkiu Lunalilo Kalaninuiahilapalapa Ka‘iulani Cleghorn (1875-1899) with a special lei draping ceremony on Thursday, October 16, from 10 a.m. to 10:30 a.m., at the Princess Ka‘iulani Traingle Park across from the OHANA East hotel. The ceremony will begin with a conch blowing and Oli (chant) followed by acknowledgement of various Hawaiian Societies, including the ‘Ahahui Ka‘iulani. This event is free and open to the public.

The Princess Ka‘iulani statue was commissioned in 1999 by Outrigger Hotels & Resorts and the Kelley family as part of their commitment to restoring Waikiki’s history and honoring the life of the princess. The bronze statue of Ka‘iulani was created by artist/sculptor Jan Gordon Fisher, and was formally dedicated to the people of Hawaii and Waikiki on October 16, 1999. It stands 7.5 feet tall and weighs 800 pounds. The Princess is featured wearing a Victorian dress and a lei of her favorite flower, the pikake (Chinese jasmine). Ka‘iulani, who adored peacocks, is shown feeding a peacock at her feet. Princess Ka‘iulani was born in 1875 to Princess Miriam Likelike, the sister of King Kalakaua and Queen Lili‘uokalani, and Governor Archibald Scott Cleghorn. She was the only child born to the last ruling dynasty of the Hawaiian Kingdom. During the 19th century, Ka‘iulani and her parents acquired 12 acres of land in the vicinity of where the OHANA East hotel now stands in Waikiki. After the overthrow of the Hawaiian monarchy, Ka‘iulani returned to Hawaii from her schooling in Europe and fought for the return of the throne to her aunt, Lili‘uokalani. Distraught over the loss of the kingdom, Ka‘iulani visited with friends on the Big Island of Hawaii. After riding her horse in a rainstorm, Ka‘iulani took ill and never fully recovered. The princess died on March 6, 1899, at the age of 23. This event is sponsored in part by the Mayor’s Office on Culture & the Arts and the OHANA East hotel as part of Outrigger’s ongoing commitment to preserving and sharing our islands’ contemporary and ancient culture.

Princess Victoria Kawēkiu Lunalilo Kalaninuiahilapalapa Ka‘iulani Cleghorn

Princess Ka‘iulani statue at the Princess Ka‘iulani Traingle Park across from the OHANA East hotel