FOR IMMEDIATE RELEASE

The Meritage Resort at Napa Prepares to Open Spa Terra
World's First Spa in an Estate Wine Cave is the New Underground Experience

NAPA, Calif., March 2 2007 -- When the doors officially open to guests on April 15th, Spa Terra, the world's first spa to be developed in an estate wine cave, will offer an opportunity to completely escape, and indulge in a world of sensory pleasures.

Nestled nel cuore della terra, literally, "in the heart of the earth," Spa Terra at The Meritage Resort at Napa is located entirely underground in the eastern wing of the resort's Estate Cave. Featuring steam grottos, soaking pools, waterfalls, and lavishly appointed private treatment rooms for individuals and couples, the spa will offer a variety of relaxation rituals and personal pampering in a completely controlled environment.

"We were originally skeptical of the idea of a spa in a cave," says Dan Fitzgerald, Vice President of Sales & Marketing for Pacific Hospitality Group, the parent company of The Meritage Resort. "After all, wine country visitors are well aware that caves are generally cool and often damp -- great for aging wine, but not an obvious choice for a massage."

Undaunted, Meritage developers forged ahead with their underground spa concept, assembling an outstanding team of noted professionals, including Bacchus Cave Construction, Natural Resources Spa Consulting, and architectural firm David Bury & Co. -- a firm known for their ability to design unique spa facilities that draw inspiration from physical location.

"I never thought about it until this project came to our attention, but the cave environment is actually incredibly well-suited to spa design and construction for a number of reasons," says David Bury, whose award-winning projects include Aji, The Oaks, and Spa Ojai. "It maintains a constant temperature, which makes it very energy efficient in terms of heating and cooling, it's quiet, and structurally it's incredibly stable. And, perhaps most exciting for us as architects, the client needed us to focus all of our energy on interior design elements -- since the exterior of this project was handled by Mother Nature."

Working closely with local stone masons, muralists, metallurgists and other skilled craftspeople, the 9,000 square foot, $7.5 million project is an underground oasis, featuring elements such as hand-forged wrought-iron fixtures, water features and extensive custom tile work, including Mediterranean-inspired mosaics. Thoughtfully selected materials and an earthy palate provide a subtle reminder of the unique location throughout.

The Treatment Experience
The Napa Valley is perhaps the most famous agricultural region in North America, thanks to its primary export -- wine. But amongst the vines in this farming community, bountiful harvests of olives, citrus, herbs, honey and other crops are cultivated and gathered for use in winery kitchens and sold at farmers markets. Lynn Curry of Natural Resources Spa Consulting has worked closely with Spa Terra Director Victoria Boscarino to develop a menu of services and treatments for face and body that incorporate many of these local products and draw on the bounty of the region.

The spa's signature treatment, Solo Vino is a wine experience like no other. This unique body libation begins with an exfoliating grape seed scrub, followed by an invigorating jet shower rinse and a decadent body wrap with a wine cave mud mask. A Terra massage and a glass of wine paired with a cheese selection complete the two-hour experience. A complete spa menu, including current pricing is available online at www.spaterra.com.

At-a-Glance:

• 10 private, individually temperature controlled treatment rooms (including two designed for couples)
• Radiant heat flooring
• Separate mens/womens steam saunas and soaking pools with water walls
• Welcoming relaxation room with water feature
• Complete menu of treatments and services with special options for men, teens and expectant mothers
• Spa Terra menu and wine service available

The Meritage Resort at Napa
Built on an eight-acre private vineyard at the southern tip of Napa Valley, near where Napa and Sonoma counties meet, The Meritage Resort and adjacent Vino Bello Resort opened in July 2006. From the complimentary bottle of wine at check-in, to gourmet cuisine at the on-site Siena restaurant, to luxurious, Tuscan-inspired guest rooms and suites, The Meritage Resort exudes elegance. Guests of Vino Bello Resort, featuring 116 vacation ownership suites often available on a nightly basis, share all resort amenities.

For additional information, or to make reservations at The Meritage Resort at Napa, call 1.866.370.NAPA (6272). Guests can also learn more at www.themeritageresort and www.vinobelloresort.com.

About Pacific Hospitality Group
Pacific Hospitality Group (www.pacifichospitality.com) develops and manages an impressive portfolio of luxury hotels and resorts including the Crowne Plaza(R) Anaheim Resort near Disneyland, Doubletree(R) Hotels in Irvine and Santa Ana, and the Days Inn at Lake Havasu in Arizona. With corporate headquarters in Irvine, California, Pacific Hospitality Group is a member of Preferred Hotels and Resorts Worldwide, an exclusive global brand of independently owned luxury hotels and resorts that requires each property to meet exceptional criteria of hospitality standards.

###

For more information, contact:
Tori Wilder, APR, New Level Group
707-227-8310 or twilder@newlevelgroup.com