HURRICANE WILMA – CANCELLATION POLICY

November 5, 2005

HURRICANE WILMA REVISION 2 – CANCELLATION POLICY

DESIRE RESORT & SPA

This has been a very difficult time for the management and employees of Desire. Working under the exceedingly difficult circumstances left in the wake of Wilma, the assessment of the full extent of the damage to the property and grounds of Desire has been completed and clean-up and work crews are working around-the-clock.

Following are the details of the revised cancellation policy:

FOR GUESTS WHO LEFT EARLY TO AVOID THE HURRICANE FROM OCTOBER 12 THRU 20, 2005 INCLUSIVE.

We will offer our guests a DESIRE TRAVEL CERTIFICATE valid for the number of room nights corresponding to the number of unused room due to their early departure. These certificates will be valid for stays at Desire from March 15 thru December 27, 2006, inclusive, in the same room category as the original booking regardless of the applicable rate in effect at the time of new travel dates or rate increases from one year to the other. These clients will have first option to book so that we can ensure the space for them. To confirm space during the high season we strongly recommend rebooking no later than Nov. 30, 2005 (rescheduling period will not expire as long as travel is used by December 27, 2006).

PASSENGERS WITH CONFIRMED AND PAID RESERVATIONS FOR THE NIGHTS OF OCTOBER 20 THRU MARCH 14, 2006 INCLUSIVE.

For clients who hold confirmed and paid reservations for the nights of October 20 thru March 14, 2006 inclusive we are offering two options: DESIRE TRAVEL CERTIFICATE or PAYMENT REFUNDS. Please see below for the conditions on both options.

DESIRE TRAVEL CERTIFICATES:

Guests who are able to rebook will discover that their DESIRE TRAVEL CERTIFICATES mean significant added value: their rate will remain the same as that in effect at the time of their 2005 booking, regardless of any anticipated increase in rates for 2006 as well as the benefit of the additional Free Nights.

Note: The compensation of Desire Travel Certificates will only be offered to guests with confirmed reservations that have been paid in full.

These certificates will be valid for stays at Desire from April 01 thru December 27, 2006, inclusive, in the same room category as the original booking. These clients will have first option to book to ensure positive space for them. We strongly recommend rebooking no later than Nov. 30, 2005 (rescheduling period will not expire as long as travel is used by December 27, 2006).

The complete stay including free nights can be used in one single trip or broken down into two trips.

The Free Nights offered as Incentive for Hurricane Wilma are “Free Nights” offered by Desire, therefore, these free nights cannot be used in future bookings toward a 5th night promotion. For example: if a client has 7 paid nights plus one free night for a total of 8 nights, these cannot be broken into two trips of 4 nights and then request the 5th night promotion. The certificates will indicate the number of paid nights + the number of free nights.

Note: For group bookings and takeovers, we will give the groups (as with individuals) first option to secure dates from April 02 thru December 27, 2006. We will be contacting our partners with groups to review in detail each individual group.

FOR CLIENTS WITH RESERVATIONS FOR THE NIGHTS OF OCTOBER 20 THRU DECEMBER 28, 2005 INCLUSIVE:

A). For clients who wish to rebook between the nights of April 01 thru April 30, 2006 we will confirm the booking in the same room category regardless of the applicable rate in effect for this travel period. This represents a savings of low season 2005 rate for a room during high season for 2006.

B). For guests who re-book between May 1 thru December 27, 2006 and had previously booked a 5-night stay or more, Desire Resort will offer an ICENTIVE OF ONE ADDITIONAL FREE NIGHT to the DESIRE TRAVEL CERTIFICATE.
Notes: 1- The free night offered as compensation is valid one free night per stay). 2- If clients had paid 4 nights with the 5th night free promotion and had 5 nights confirmed, the Desire Travel Certificate will be valid for 6 nights, this incentive reflects over 20% discount on the next year’s trip.

A). For guests who re-book between April 01 (or before once we have confirmed opening date) thru April 30, 2006 and had previously booked a 4-night stay or more, Desire Resort will offer ONE ADDITIONAL FREE NIGHT to the DESIRE TRAVEL CERTIFICATE. Notes: 1- The free night offered as INCENTIVE is valid one free night per stay.

B). For guests who re-book between May 01 thru December 27, 2006 and had previously booked a 4-night stay or more, Desire Resort will offer THREE ADDITIONAL FREE NIGHTS to the DESIRE TRAVEL CERTIFICATE.
Notes: 1- The free nights offered as INCENTIVE are valid for three free nights per stay.

FOR CLIENTS WITH RESERVATIONS FOR THE NIGHTS OF JANUARY 02 THRU MARCH 14, 2006 INCLUSIVE (or the night before the opening date) INCLUSIVE:

A). For guests who re-book between April 01 (or before once we have confirmed opening date) thru April 30, 2006 we will make the change in dates. The rate is the same for this season.

B). For guests who re-book between May 01 thru December 27, 2006 and had previously booked a 5-night stay or more, Desire Resort will offer TWO ADDITIONAL FREE NIGHTS to the DESIRE TRAVEL CERTIFICATE.
Notes: 1- The free nights offered as INCENTIVE is valid for two free nights per stay.

CASH REFUNDS:

Guests seeking a cash refund should be advised that we will be offering refunds, however with the closing of the hotel, our initial responsibilities have been directed to insuring the financial security of our employees; we intend to support- in every way necessary -each and every member of our staff and their dependant families until Desire reopens and their livelihoods are restored. Our lawyers are already in negotiations with our insurance carriers about the dilemma faced by guests who cannot rebook at this time (missing the opportunity of the added values we are offering) and seek compensation as a result of Wilma.

Refunds will be sent within 90 days of the above date.

We are working on a master list of all bookings that were paid for this period and the compensation each guest has selected. For guests choosing the Desire Travel Certificates and know their new travel dates, there will be no need for certificates, we will just make the change and issue a new confirmation number. For guests wishing to split the nights in two trips, we will need to know this information in order to issue the proper credits and reservations. If these clients already know their new travel dates there is no need to issue certificates; we will only issue certificates for clients who do not know what dates they wish to travel at this time.

If you booked thru your Travel Agent, please contact them if order to request your certificates and new travel dates.
If you reserved directly with Desire, please contact our reservation department at:
Silvia Recendiz at: groups@desiresorts.com
Narda Santana at: reserv@desireresorts.com

We request that no new bookings be made from Dec 20, 2005 thru April 30, 2006 so that we may accommodate all clients holding Wilma DESIRE TRAVEL CERTIFICATES. The booking period that we will honor exclusively for guest with Hurricane Wilma Travel Certificates will be from Nov.1 - 30, 2005 inclusive. On Dec. 1, 2005 we will open reservations for new guest bookings.

We thank you for your understanding and continued valued support as we tackle the significant repairs the resort requires. We are also diligently working to address and solve the many day-to-day and long-term challenges and concerns facing our dedicated employees and their families, many of whom lost everything in the hurricane.

Sincerely,

DESIRE MANAGEMENT