The History of Oakwood Worldwide Oakwood Worldwide traces its origins to 1960, when the first steps were taken to building what has today become the leader in the global corporate housing industry and one of the most innovative business and real estate service companies in the world. THE EARLY DAYS In 1960 founding partners Howard Ruby and Bob Franks began their career in real estate, managing small apartment buildings in California. By 1962, the duo had teamed with financier Ed Broida and Howard's brother, Ken, to build Bay Village Apartment Communities, multifamily housing complexes that catered to the needs of young families, with amenities such as a swimming pool and a children's playground. These were among the first apartments to offer these recreational comforts in an urban housing complex. SOUTH BAY SPIRIT By 1965 the trio of Howard Ruby, Broida and Franks were operating as R&B Enterprises. They created the brand South Bay Clubs to market furnished apartments for "young single people" complete with swimming pools, volleyball courts and an activities director. The first South Bay Club opened in the Los Angeles suburb of Torrance, and soon South Bay Clubs could be found throughout Southern California. Emboldened by the marketing slogan "Live Where the Fun Is", the South Bay Clubs became the apartment smash of the sixties, riding the passion of that era for the California lifestyle. The South Bay Clubs were featured in Newsweek, Cosmopolitan, and Parade magazines as one of the most successful apartment concepts in the country, and R&B became one of the leading developers of apartments in the United States. BIRTH OF A CORPORATE CULTURE Even in these early stages of the company, a remarkable corporate culture was born at R&B. As the developer of the South Bay Clubs, R&B had a product that was hip and contemporary, an attitude that was reflected by the company's management. This new generation style was carried through to the firm's corporate activities. Yet simultaneously, R&B brought a remarkable business sophistication and discipline to the art of apartment management. Through its management arm, then known as Westside Management Company, the company developed innovative, structured policies and procedures for everything from leasing techniques to rent collection. Its staff became the best trained in the real estate industry. THE OAKWOOD BRAND IS BORN In 1969, R&B created the Oakwood Garden Apartments brand, for furnished apartment complexes that catered to a broader audience than singles, including families, seniors and business travelers. The first building to wear the Oakwood name was Oakwood Mission Bay in San Diego, California. The concept of "corporate apartments" was born and for the first time, extended stay travelers had a spacious alternative to staying in a hotel room. Soon, many properties were purpose-built with the Oakwood name, and all of the South Bay Clubs ultimately changed to use the Oakwood name. DIVERSIFICATION IN THE 70s & 80s The 1970's and 80's brought further growth to R&B, as the Oakwood brand continued to grow across the United States, with new buildings in dozens of major cities nationwide. Oakwood's biggest markets at the time were Los Angeles, San Diego, San Jose, Houston and Northern Virginia. In 1972, the company completed construction of Oakwood Toluca Hills, a sprawling, 1,151 unit, mountainside apartment complex on the border between Los Angeles and Burbank, California. In the years to come, this would become one of the firm's most famous destinations, due to the many entertainment industry luminaries who came to stay at Toluca, due to its location next to Universal, Warner Brothers and Disney Studios. The property even became a television star in its own right, being a host location to regular tapings from NBC's The Tonight Show starring Jay Leno. R&B ceased to be a developer of its own multifamily properties in the mid-70s, changing its focus into new areas such as: commercial real estate; fee management of real estate owned by others; telecommunications; and "home services" the items such as linens and dishes that make a furnished apartment a home. INTRODUCING THIRD PARTY CORPORATE HOUSING By 1990, the Oakwood brand (then known as Oakwood Corporate Apartments) had developed a loyal corporate clientele who had needs had exceeded Oakwood's breadth. Clients were sending business travelers to more locations than Oakwood had buildings. It was then that Howard Ruby developed the concept for the Oakwood Corporate Housing service, a network of offices throughout the United States that could furnish and sublet an apartment anywhere, even if Oakwood didn't own the building the guest stayed in. This service business was known as "third party corporate housing". Oakwood Corporate Housing accelerated its expansion between 1993-1995, and became the first national provider of corporate housing in the United States. Simultaneously, it built an infrastructure of Home Services warehouses that could provide furnishings to an apartment anywhere. Oakwood then introduced a proprietary method of selling nationally which allowed every sales account executive to sell every property in the chain - a concept then virtually unheard of in the lodging industry. This new boundaryless aspect of Oakwood's services allowed the company to grow its clientele to comprise more than 80% of the Fortune 500 companies. Oakwood also handled the housing needs of others needing extended stay housing, including government & military, professional sports, insurance companies and leisure travelers too. GLOBAL VISION Oakwood s reputation throughout the U.S. continued to grow, and Oakwood began to attract offers from global partners to expand the concept of corporate housing internationally. This concept was then formalized with the creation of the Oakwood International division in October 1995, which initially focused on expansion into Asia Pacific. A regional management office was later opened in Singapore. The joint venture Oakwood Asia Pacific was born, combining the expertise of Oakwood with Colony Capital, an international real estate investment fund. In the years to come, Oakwood would open spectacular new serviced apartment properties throughout Asia, in cities such as Bangkok and Tokyo. The opening of Oakwood Premier Ayala Center in Manila, Philippines marked the debut of the five-star Oakwood Premier brand, which would later grow to Seoul, Korea and Beijing, China. In 1999, Oakwood expanded into Europe, by bringing its corporate housing service to London in a venture named Oakwood United Kingdom. In recognition of the company's global focus and consumer awareness of the Oakwood brand name, the parent company's name was formally changed from R&B Realty Group to Oakwood Worldwide. In 2000, Oakwood announced a joint venture with Mitsui Fudosan, Japan's largest real estate company, to develop and manage serviced apartments in Japan. THE BILLION DOLLAR MAKEOVER Back in the United States, by the late 1990s the original Oakwood Apartments property portfolio was aging and ready for a makeover. R&B Investments, Oakwood's asset management division, undertook a dramatic real estate sale and acquisition program which saw the group complete over $1 billion in real estate trandsactions over a two year period. Venerable older Oakwoods, such as Oakwood Newport Beach, were sold (many for market record prices) and spectacular new properties were purchased in Miami, Atlanta, Seattle, Minneapolis, Houston and more. Six older flagship locations in California were selected for a spectacular $100 million remodeling program, which updated these properties facilities and appearance. Between the all-new acquisitions and the remodeling, the face of Oakwood was dramatically changed and the real estate portfolio was repositioned for a new century. FOUR CORE BRANDS Oakwood's core business of corporate housing and serviced apartments is now diversified through a group of four sister brands: In over 1,000 locations, Oakwood Corporate Housing takes leases on existing residential units, appoints them with its own furniture and housewares, and then sublets them to corporations and individuals as extended stay residences. In approximately 50 locations, the company operates the award winning Oakwood Apartments, properties with both furnished and unfurnished apartments. The properties have onsite Oakwood hospitality staff during business hours, and amenities such as concierge, swimming pool, fitness center, and business center. Oakwood Apartments combines the spacious privacy of a residential home with hospitality service. The company has also introduced the Oakwood Premier and Oakwood Residence brands, which identify luxury serviced apartment properties that combine elegant apartment living with higher levels of service, such as a 24-hour front desk. In all locations, Oakwood's goal is to provide a superb customer experience, from the initial reservations process to the length of the guest's stay. In sum, Oakwood's operations now span ten countries and include international gateway destinations such as New York, Los Angeles, London, Toronto, Tokyo, Bangkok, Seoul, Chicago, San Francisco, and Washington, D.C. A TECHNOLOGY REVOLUTION The technology revolution has caused a seismic shift in how Oakwood does business. The company embraced the e-business world through its web site, www.oakwood.com, and through multiple techonology initiatives deployed to make life easier for the customer, such as a centralized billing center. Oakwood also placed more than 250 locations on the Global Distribution System (GDS) used by travel agents worldwide. THE FUTURE IS BRIGHT FOR OAKWOOD Founding visionary and Chairman Howard Ruby continues to direct Oakwood into the future, personally guiding the firm's global expansion, customer service initiatives and new technology investments. The company's array of lodging and apartment products continue to provide comfort and value for a world of satisfied customers. In addition to its presence as a global business leader, the firm has maintained its spirited, friendly corporate culture. Oakwood continues to seek out the best employees and promote from within. It is not uncommon to find Oakwood employees with 10, 20 and 30 years of dedicated experience at the company. (The History of Oakwood Worldwide, Updated August 2003)