In this issue:

• Letter from Council of Co-Owners President Connie Clark
• Co-Owners Elect Directors, approve Budget and Minutes
• Board of Directors elects Officers and appoints committees
• Summary of General Manager's remarks
• Host Hotels announces changes for Condominium Sales Operations
• Units Available for Resale updated October 15, 2014.
• Camelback room rates are changing.
• Check the web for the latest about Camelback Inn

Dear fellow co-owners,

This year's annual meeting weekend, held October 16-18, was a time for reconnecting with old friends, making new ones, and receiving a hands-on update of the Camelback Inn's performance over the past year. The property looked beautiful under the management of award-winning Jim Rose and the skill of Director of Grounds Vanessa Cohorn.

On Thursday night, a reception was held at the handsomely appointed Manor House and included a tour of the brand new Chef's Garden. Friday featured the traditional golf tournament and an added activity, the "Insights" tour of Frank Lloyd Wright's Taliesin West.

Saturday's annual meeting brought continuing good news. Mr. Rose reported that revenue per available room (RevPAR) is up 8.0% for the year 2014 and is projected to increase 8.4% next year, significantly ahead of the competition. You will be proud to learn that Camelback Inn is ranked number 1 in Guest Satisfaction for the JW Marriott Brand in North America.

A major pool project is scheduled for 2015 which will require co-owner approval. The pool has not been renovated since it was built in 1996 and is in need of repair and updating. Plans should be finalized early next year and we will forward them to you as soon as they become available. Management hopes to begin work in June and have a major portion of the project completed in time for the arrival of large groups which are booked for the third quarter of 2015 and are important to our financial success.

Katie Palmer, representing the Partnership's General Partner, Host Hotels, reported that the 2014 forecasted distributable cash per 25 CEPI before vacation and reciprocal use is $5,877. Katie also announced that Host is in the process of transitioning condominium sales administration to First Financial Equity Corporation, a local firm which holds the necessary securities and real estate licenses. June and Wanda will remain on property, continuing in their roles as Host employees.

The value of our investment in the Camelback Inn rests in part on the contribution made by co-owners who volunteer to serve on committees and on the CBI Board. Working in this capacity is a rewarding experience, challenging but not too time consuming, and I invite you to become involved. Please contact me or any of the other Directors (See "Contacts" on the website) if you would like to participate.

Most sincerely,

Connie Clark, President

At the Council of Co-Owners Meeting on October 18, Biffie Kelly was elected to her second term and Christopher Gable was elected to his first term on the Board of Directors. Co-Owners adopted the 2015 Co-Owner Budget and approved the official minutes of the 2013 Annual Meeting that had been previously distributed.

At its Annual Meeting on October 18, 2014, The Board elected the following officers and made the following committee assignments for the term ending with the Annual Meeting of 2015:

Connie L. Clark, President
Biffie Kelly, Vice President
John Heller, Secretary
Charles Clist, Treasurer

Nominating Committee:
Anne Sherwood, Chair
(other members to be named later)

Communications Committee:
David C. Bartholomew, Chair
Jack Florio, Christopher Gable

Property Planning Committee:
Biffie Kelly, Chair
James Montgomery, Jr.; Jack Florio, Brenda Kaplan

The Board set meeting dates for January, April and July, 2015. Details are available on the web on the Meetings and Events - Board of Directors page.

General Manager Jim Rose introduced the Camelback Executive Management Team and presented his annual remarks to the Council of Co-Owners. Here are some of the highlights:

• Year to Date RevPAR is up 8% at CBI; up 6.3% for the competitive set.
• No significant new competition is expected in the next two years. Two competitors have closed, a golf resort in North Scottsdale and the Cottonwoods in Scottsdale, formerly a Renaissance, and expected to re-open as an Autograph property. Plans exist for the eventual re-opening of Mountain Shadows as a 125-150 room resort.
• Camelback group room nights 2013: 60,700; projected for 2014: 64,700. The increase in group activity is allowing the Inn to drive leisure rates higher as well.
• Guest satisfaction ratings put CBI at #1 for the JW brand in North America with 79.1% of surveyed guests stating a high intent to return. The 82.3% satisfaction rate is #8 in the JW Brand worldwide compared with our ranking of #22 prior to the bathroom renovations. Group satisfaction rating is 88.4% placing us at #4 worldwide in the JW Brand. We have many repeat groups including Old Navy and Gap Stores which hold lengthy training conferences.
• The new Ambiente Golf Course opened in November, 2013 making Camelback a true golf destination. I would especially like to thank Rob Bartley, Director of Golf, for his work and dedication to the project. Golf, Inc. has rated us the #1 golf course renovation with Donald Trump's Doral rated #2.
• Marriott will soon renovate the eastern portion of the Steak Fry Area just below Mummy Mountain. The western side will retain the present cowboy theme. Once renovated, the eastern side will have a generic setting enabling groups to choose from a variety of themed options such as a night in Tuscany.
• Renovation of the Lakeside Golf Pavilion meeting space is planned and space north and east of the Manor House has been converted to a Chef's Garden.
• The Jackrabbit Pool area is in need of major renovations. The children's play area is dated as are the rock formations and there are pool surface problems and rust issues. The pool has become a detractor and is hurting our ability to attract incentive groups. Our competitors have recently upgraded their pools. Through our efforts with the Board of Directors, we will soon be presenting you with detailed plans for the project which will be in keeping with the views and atmosphere of Camelback Inn and will include the addition of 75 lounge chairs, an upgraded exercise room and new food and beverage options.

Kathleen Palmer, on behalf of Host Hotels and Resorts, Inc., distributed financial reports and announced that a transition will begin soon involving the Condominium Sales Office. June and Wanda will continue to handle the Partnership business that they currently perform. The sale and marketing of Condominium units will be handled by First Financial Equities Corporation, a full service licensed securities broker with offices in North Scottsdale. The move will have no financial impact on the Partnership and is expected to expand the potential market for the resale of Condominium Units.

George Fischer and Mathew Munn of the FFEC Scottsdale office made brief presentations and answered questions from the Co-Owners. Units available for resale will continue to be posted on the Co-Owners web site which will soon include information about new procedures and a link to the FFEC web site.

June Durkin reported that there have been nine resales year to date, seven have closed and two are in escrow. Seven sales were to current owners and two were to new investors. Average value per CEPI was $4,965.

To view Host's written presentation, click the link on the "What's New" page.

The list of those Units that are currently being offered for sale by other Co-Owners was updated on October 15, 2014. To view the list, log on and click the "Units Available for Resale" tab on the left. You can also download the current Camelback Inn Property Map which shows the location of all the Condominium Units.

The number of days your unit will be charged when you use vacation time at a reciprocal property is based upon the rate in effect the day of your stay at that hotel. Rates are set to change several times during the fall. We suggest that you consult this page prior to making your plans if you need to forecast your vacation time usage.

To access the list of rates projected through December, including rates for Sundeck units, click the "Camelback Room Rates" tab on the left. Please keep in mind that all rates are subject to change.

The Communications Committee continually updates the web site on matters of interest to Co-Owners. This includes posting changes in CBI rates, additions or deletions to the units available for resale, and other news of interest to Camelback investors. We invite you to check back and find out "What's New".

If you have questions or need technical help with your access to the web site, do not hesitate to send an email to the Communications Committee c/o dcbartholomew@aol.com.

Happy Halloween!

The Board of Directors
Marriott Resort Hotel Condominium - Camelback Inn