May 9, 2006

Dear Rancho Leonero Homeowners and Home Renters -

I truly regret to inform you that as of June 1, 2006, Rancho Leonero Resort will no longer extend the privilege of the use of hotel facilities to Leonero home rental clients, including sportfishing charters, our dock, phone/internet, pool, snorkel/kayak rentals, trash removal or ice. Our front desk is not a concierge service for home renters. Our dining room and bar are open to the public as always, and your clients are certainly welcome in those areas (reservations are recommended for meals).

Homeowners are still welcome to the use of all hotel facilities.

Over the last several years more and more homeowners have been renting their homes. At the last count over 50 rooms are available for rent, almost twice the number of rooms available at the hotel! Providing services to this ever-increasing number of renters has diluted my ability to properly service my own guests. The home-rental market has evolved into a competing business, and I am frankly tired of losing hotel reservations to homeowners who can offer a more competitive product as they have no employees, pay no taxes, and rely on the hotel to entertain their clients. I recently got into an argument with a renter who felt he was entitled to empty my ice machine, and have had several cases of renters not paying their hotel bill. Home rentals are also grossly unfair to the owners who don't rent their homes, as it's pretty hard to enjoy your own vacation home when the house next door is occupied by as many as 20 rowdy renters.

Most if not all the rental houses have websites. Many of these sites openly say the renters have hotel privileges. This WILL no longer be the case. I am also having this letter posted on our website to provide notice that renters are not entitled to hotel services.

Very truly yours,

John Ireland

Rancho Leonero Resort