Great news for our clients - More fun Hard Rock Resorts coming to Mexico.

It is with great excitement that we announce the expansion of our partnership with Hard Rock International. Having recently teamed on Hard Rock Hotel & Casino Punta Cana, we, together with Hard Rock International, will transform Palace Resorts properties in Cancun, Puerto Vallarta and Riviera Maya into Hard Rock Hotels. These will be "ultimate all-inclusive" properties that bring the acclaimed Hard Rock experience to these popular Mexican tourist destinations.

The addition of these newly transformed resorts signals the continued growth of our company, which in turn will add more value to the guest experience and our partnership. Guests will gain a greater variety of vacation options to choose from and, best of all, you as our partner will continue to be a part of the growth and evolution of Palace Resorts.

"Palace Resorts is honored to collaborate with Hard Rock International in further aligning two first-class hospitality brands," said Roberto Chapur, President of Palace Resorts. "The opportunity to facilitate the entry of the iconic Hard Rock Hotel brand into Mexico, and to offer the Palace Resorts promise of an unmatched, all-inclusive resort experience, is very exciting. We look forward to the continuation of this great relationship."

The new Hard Rock resorts will maintain the same superior quality and exceptional service that you have grown accustomed to over the years, now with more rock n' roll for your enjoyment. Palace Resorts will continue to own and operate each property, just as we do with the Hard Rock Hotel & Casino Punta Cana. The transformation process will begin in the coming months, with the first Hard Rock-rebranded hotel in Cancun scheduled to launch in Winter 2012, Puerto Vallarta in Spring 2012, followed by a Fall 2012 first-phase debut of Hard Rock Hotel Riviera Maya.

We will continue to keep you updated as we move ahead with these exciting changes and look forward to welcoming you to our new Hard Rock properties and their grand opening events soon! As always, we sincerely thank you for your continued support and loyalty.

Best Regards,
Rafael Chapur