Palace Resorts Acquires Four New Resorts in Mexico

Palace Resorts Continues to Grow in Cancun and the Riviera Maya - Extends Its Brand Name to Cozumel and Nuevo Vallarta

Palace Resorts Palace Resorts announces the purchase of four new properties in Mexico: Hotel Sierra Cancun; Hotel Continental Plaza Playacar; Hotel Plaza Las Glorias Cozumel; and Hotel Sierra Nuevo Vallarta. The hotels will continue to operate under their current names until the end of the year, when they will be integrated into the Palace Resorts brand and assume new names.

"2004 is a very important year for Palace Resorts. After our recent expansion to the Caribbean with Grand Beach Palace in St. Thomas, USVI, we are continuing to strengthen our all-inclusive resort chain in Mexico, and giving our clients the opportunity to enjoy the quality of a Palace property in new destinations in Mexico," said Roberto Chapur, President of Palace Resorts.

All new properties will be upgraded to the standards of Palace Resorts, including the renovation of rooms, lobbies, and other common areas as necessary. In addition, the two European Plan properties, Hotel Continental Plaza Playacar and Hotel Plaza Las Glorias Cozumel, will be converted to the all-inclusive plan in 2005.

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