Transactions Value by Segment Presented to: International Society of Hospitality Consultants Annual Conference October 20 – 23, 2005 San Diego, CA

Sales Comparables Full Service Marriott Residence Inn by Marriott Hilton Garden Inn Holiday Inn Express (Manhattan)

Marriott Hotel (suburban-midwest) Executive Summary Opened in 1985, 236 rooms, 18,000 sq. ft. meeting/conference space, restaurant, lounge, fitness facility, abutting public golf course. Union labor, weak to flat market, stagnant room demand. Product Improvement Plan = +/- $5,500,000 (mandatory) Financial Data Gross Rev.$10,000,000 Room Rev.$5,900,000 NOI (after mgt./FFE)$1,000,000

Sales Comparables Sale Price $9,000,000 Marriott Hotel (suburban – midwest) w/out PIPw/ PIP Sale Price P/Room $38,135$61,444 Direct Cap. Rate 11%6.9% Room Rev. Mult

Residence Inn by Marriott (suburban Northeast) Executive Summary Opened in 1998, 156 extended stay rooms, 2,000 sq. ft. meeting space. Airport market, strong OCC. (77%), weak ADR ($73), new supply issues. Product Improvement Plan = +/- $1,200,000 (mandatory) Financial Data Gross Rev.$3,300,000 Room Rev.$3,200,000 NOI (after mgt./FFE)$1,000,000

Sales Comparables Sale Price $11,500,000 Residence Inn by Marriott (suburban - Northeast) w/out PIPw/ PIP Sale Price P/Room $73,717$81,410 Direct Cap. Rate 8.7%7.87% Room Rev. Mult

Hilton Garden Inn (suburban Northeast) Executive Summary Opened in 2000, 112 rooms, 2,500 sq. ft. meeting space. 50% Corporate / 50% leisure market, strong Occ. (72%), strong ADR ($152), very good physical condition, new supply issues. Pricing significantly higher than the “cost to replace”. Product Improvement Plan = +/- $600,000 (mandatory) Financial Data Gross Rev.$4,400,000 Room Rev.$4,100,000 NOI (after mgt./FFE)$1,650,000

Sales Comparables Sale Price $17,750,000 Hilton Garden Inn (suburban Northeast) w/out PIPw/ PIP Sale Price P/Room $158,500$163,850 Direct Cap. Rate 9.3%8.99% Room Rev. Mult

Holiday Inn Express (midtown Manhattan) Executive Summary Opened in August 2005, 124 rooms, 400 sq.ft. meeting space. 65% Corporate / 35% leisure market, strong Occ. (83% proj.), strong ADR ($220 proj.) 2005 performance for select, limited service product was $232 ADR Non Union employees for construction and operations Financial Data – projected for 2006 Occupancy83% Average Rate$220 Gross Rev.$8,450,000 Room Rev.$8,300,000 NOI (after mgt./FFE)$2,900,000 (35%)

Sales Comparables Sale Price $36,500,000 Holiday Inn Express (midtown Manhattan) Sale Price P/Room $294,354 Direct Cap. Rate 7.96% proj. Room Rev. Mult. 4.40

Comparison By Product Type $/RoomDir. CapRR Mult. Marriott Hotel (Suburbs) $38,135 - $61, % - 6.9%1.52 – 2.45 Residence Inn $73,717 - $81,4108.7% - 7.9%3.60 – 3.97 Hilton Garden Inn $158,500 – 163,8509.3% - 8.9%4.33 – 4.47 Holiday Inn Express $294, % (proj.)4.40 (proj.)

In Summary Transaction market remains very strong Equity abundant in every hotel product segment Lenders are very aggressive Doctors and Dentists not yet in the market Pricing may be at Peak Single digit Cap Rates in every segment New supply additions in almost every market. Concerns over the rise in interest rates, fuel oil and construction costs.