total investment - source strategies · financial feasibility study : holiday inn, ... total...

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October 11, 2010

FINANCIAL FEASIBILITY STUDY : Holiday Inn, Georgetown 431 Pflugerville Highway Georgetown, Texas 78628

This study has been prepared to determine the financial feasibility of operating the recently

constructed 74 unit Holiday Inn along the west side of Pflugerville Highway, in Georgetown,

Texas. The 2 acre lot is located adjacent to the Homewood Suites, which is under development,

and is a short distance north of the existing La Quinta property. As a multi-story building with

good signage the hotel is easily visible and accessible to area traffic. The site is convenient to

the nearby businesses, restaurants, and other amenities in the local area.

Project quality is assumed to match the physical and operating standards of the Holiday Inn

brand, a product of Intercontinental Hotel Group (Holiday Express, Candlewood Suites, Crowne

Plaza, and Indigo Hotels). The level of quality and acceptance for the ‘Holiday Inn Express’

brand has been assumed in developing this financial feasibility study. Operating expenses are set

at the level of similar product in the mid-price, limited service segment.

This study incorporates the current downturn in the Texas hotel market, and the broader national

recession. In our Market section, we highlight the historical hotel performance in Texas, noting

the effect of past recessions. While every market has its own characteristics, our projections for

the local area market consider how the lodging industry reacts in times of economic downturn

and in normal times. We anticipate a continuation of the gradual period of recovery which

started in early 2010. See the Market section for more details.

KEY FINDING : Developing and operating a Holiday Inn at this site should generate a strong

unleveraged, pre-tax return on total invested capital of approximately 22%, with a return on

equity approaching 75%. This return on invested capital assumes a total hotel investment of

$5,600,000, with per unit improvements estimated at $64,865 as follows:

PO Box 120055 ♦♦♦♦ 134 Laurel Heights, San Antonio, TX 78212 ♦♦♦♦ 210-734-3434 ♦♦♦♦ Fax 210-735-7970 ♦♦♦♦ www.SourceStrategies.Org

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Total Investment1 Est. Land Investment $ 800,000 for 2 acres

Improvements $ 4,800,000 @$64,865 per unit Total Investment $ 5,600,000 Pre-Tax Project Return 22.45%2 Pre-Tax Return on Equity 74.80%3

With a recent August 2010 opening, cash flow market projections for the Holiday, before

taxes and after renovation reserves, should be available for debt service, income tax and

dividends as follows:

Project Summary

Occupancy Average $ Tot al Percent $ Rate REVPAR Revenue Cash Flow **

Year I 60.1% $102.51* $61.66 $1 ,731,959 $842,875 Year II 69.5% $107.38 $74.65 $2 ,096,851 $1,072,904 Year III 72.7% $111.41 $81.02 $2 ,275,787 $1,174,423 Year IV 72.8% $114.74 $83.53 $2 ,346,512 $1,210,952 Year V 72.8% $118.18 $86.04 $2 ,416,851 $1,201,318 Year VI 71.4% $121.74 $86.94 $2 ,442,155 $1,170,726 Year VII 70.2% $125.39 $88.05 $2 ,473,412 $1,226,208 Year VIII 69.0% $129.15 $89.18 $2 ,505,070 $1,270,376 Year IX 67.9% $133.03 $90.32 $2 ,537,132 $1,211,432 Year X 66.8% $137.02 $91.48 $2 ,569,605 $11,298,799*** *Year I ADR equates to approximately $75 in current market dollars.**Before Income Tax & Financing expense, but reflecting $1,132,822 in res erves for capital expenditures / property renovation ($15,308 per unit). ***assumes valuing property at Year 10 cash flow at an 11% return-to-buyer, less 4% expense of sale, plus year 10 cash flow.

The above cash flow, assuming a Year 10 sale, has been discounted at the rate of 22.45% to

a present value of $5,600,893, approximating the total budgeted investment of $5,600,000.

This 22.45% is the project's unleveraged return, provided capital is kept at this level.

An estimated capital budget of $64,865 per unit 'turn-key' costs for a hotel of this size and

quality are wellbelow average, in our experience. If capital outlays vary from budget for this

project, returns will vary accordingly. The following table illustrates the linear nature of

financial returns as capital requirements escalate or decline and revenue streams remain stable.

1 developer's estimate of investment in improvements and land. 2 after reserve for on-going renovations 3 assuming 25% equity and 75% debt at a 5% pre-tax debt cost; calculated weighted average.

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Effect on Returns if Capital Investment Changes 4

Improvements Budget Land Total Discounted Cash Flow Variance Per Unit Total Cost Investment Total Proj On Equity (85%) $55.1 $4,080 $800 $4,88 0 25.60% 87.40% (90%) $58.4 $4,320 $800 $5,12 0 24.47% 82.88% (95%) $61.6 $4,560 $800 $5,36 0 23.43% 78.72% BUDGET $64.9 $4,800 $800 $5,60 0 22.45% 74.80% (105%) $68.1 $5,040 $800 $5,84 0 21.54% 71.16% (110%) $71.4 $5,280 $800 $6,08 0 20.69% 67.76% (115%) $74.6 $5,520 $800 $6,32 0 19.88% 64.52%

4 Discounted Cash Flow / Internal Rate of Return.

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A detailed look at Year III (2012/2013) shows the following:

Year III – 2012/2013 Room Revenues $2,188,257 Total Revenues $2,275,787 Income Before Fixed Costs $1,388,347 (61.0%) Net Income Before Tax & Fin. $1,105,965 (48.6%) Cash Flow Before Financing $1,174,423 (51.6%) 5 Occupancy % 72.7% Average Daily Rate $111.41 $ REVPAR $ 81.02

SUMMARY OF CRITICAL ASSUMPTIONS: Critical assumptions are summarized as

follows, with the Market History and Projection study (page 11) following the Methodology

section (page 7).

1. Projections of the I-35 Corridor market reflect a mixture of old and newer competitive

hotels. The average hotel room in the local market is 15 years old, half way through its probable

cycle, and past its peak performing years. The typical hotel building becomes stylistically and

structurally obsolete after about 30 years. Of the 52 hotels in the local market, 14 were built

before 1986, and 21 were built since 2000. There is typically a wide gap between the

performance of new and older properties, with the typical hotel in the area either being relatively

new and competitive, or old and on its way to closure.

We are comfortable with market projections. After plummeting in 2009 with the recent

recession, occupancy is expected to slowly recover to an equilibrium level of 60%. Further,

REVPAR in this market is projected to grow by 3.9% annually over the next nine years,

reflecting a slow market recovery and the replacement of obsolete hotel product. Detailed local

market history and projections commence on page 15. 5 Before deductions of loan principal and interest, before income tax deductions, and before any equity payout.

The critical statistic used in this study is REVPAR. REVPAR means revenue per

available room per day, and reflects the average daily room revenue yield of every room

in a property or market (not just occupied rooms). REVPAR is generated by multiplying

occupancy times rate (i.e. REVPAR = % occupancy times average daily rate), and is the

most effective and important tool in the evaluation of the success of any lodging concern.

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IH-35 CORRIDOR MARKET Year Occupancy % $ REVPAR 2009 55.4% $ 36.93 2010 57.4% $ 37.256 Projected 2012 60.9% $ 43.25 2018 60.0% $ 51.90 Historical Annual Compound Growth Rates Past 9 Year Average -1.2% -0.4% Past 4 Year Average -2.4% -2.1% Past 1 Year Average -2.4% -10.6% Future Annual Compound Growth Rates Next 9 Years 0.5% 3.9% Next 5 Years 1.0% 4.7%

2. Versus the local market's REVPAR dollar projections, the REVPAR index of the

proposed Holiday Inn starts at 150% of the market average REVPAR in Year I, climbs to

174% in Year II, and peaks at 182% in Years III-V. Thereafter, the REVPAR Index declines

due to the normal aging cycle. Detailed REVPAR derivation and subsequent projections

commence on page 32.

Holiday Inn Data in 2010 $ Year I Year II Year III Base : Name & Quality 1.45 1.45 1.45 x Brand Age Adjustment 0.91 0.91 0.91 x Site Value Adjustment 1.15 1.15 1.15 x Size Adjustment 1.02 1.02 1.02 x Other Adjustments 1.05 1.05 1.05 x Newness Adjustment 0.92 1.07 1.12 = Performance Factor 150% 174% 182 % x Market REVPAR $37.25 $37.25 $37.25 = Projected Performance $55.69 $64.77 $67.80

The projected REVPAR performance of the subject hotel, versus the local area market

average REVPAR reflects the fact that this hotel is expected to perform at a level well

above the market average. The hotel's REVPAR level starts at a level well above the market

average in Year I, peaks in Years III-V, then slowly loses ground versus the local market's

inflationary growth:

6 12 months ending June 30, 2010.

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3. Expenses are set at the level of similar, limited service hotel products from Smith Travel

Research Host Reports operating statistics, inflated at 3% per annum. See page 45 for details.

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METHODOLOGY

To develop Pro Forma financial results for the proposed project, two major sets of

assumptions have been developed. First, the future market's average REVPAR is forecast

on a reasonable and economically-sound basis; the performance of the project is dependent on

this market forecast and varies from it only due to specific variables of the project. Second, the

specific variables of the project are combined and expressed as an index for each quarter of

the forecast, an index that is used to adjust the overall market performance to the specific

project.

MARKET REVPAR FORECAST

The large Austin Metro market is examined historically and projected. The key in the market

projections is to stabilize the market in the future at a sustainable, average equilibrium for

occupancy, a level which we have determined to be approximately 60% in markets of this type,

and lower for rural and highway areas. Over the 20 years from 1987 through 2007, according to

the Source Strategies, Inc. database, hotel occupancy in Texas has averaged 59%, and 60% in

Texas metros. This occupancy level is highly relevant as a long-term, equilibrium occupancy, a

level where investors are neutral about adding new hotel rooms to the market and an average that

will reoccur over long periods of time (e.g. 20 years).

After the total market area is forecast, we forecast the performance of the local market on a

similar basis. Market projections are based on growth rates in real demand (room-nights sold),

prices (average daily rates), and supply (rooms available). The key in this projection is to

stabilize the local market in the future at a sustainable, average equilibrium for occupancy, a

level which we have determined to be approximately 60% in markets of this type. The

REVPAR projection of the local market is then the pro forma market environment of the

proposed subject development; the project will vary from the norm for only project-specific

differences, and then only relatively.

PROJECT SPECIFIC VARIABLES:

DEVELOPMENT OF PROJECT REVPAR INDICES

The first variable from the averages to be developed has to do with the fact that each

product type and brand have a typical and identifiable influence on REVPAR

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performance. This variable is based on its consumer acceptance, its product definition, its level

of quality, the price it can command from the consumer, its marketing efforts, and other factors.

The value of the brand and product type is termed the Base Value.

The second adjustment used on the dollar value of the local area's REVPAR is the Brand

Age Adjustment. This is made to reflect the average age of similarly branded hotels on the

subject property's performance versus the market average. The opening dates of Holiday Inn

Express hotels in similar areas were examined in order to quantify this factor.

The next step to developing a project REVPAR index is to determine any further

adjustment based on any deviation from a normal project Size. If the number of proposed

rooms in the project is significantly above or below the average for that brand and product-type,

its performance will also vary from the norm. A lower than average number of rooms should

increase per room performance and vice versa. This is due to the fact that consumer demand for

a single brand is demand at the project's site, regardless of the number of rooms offered by the

hotel (a minor exception here would be a convention hotel).

An empirical proof of this evaluation of Size is the major increase in volume enjoyed by

numerous hotels throughout Texas that have split into two branded operations, using two

different names. For example, the Hilton Hotel Towers Austin added $1,000,000 annually to

revenues by splitting off its adjacent, ground-based rooms as a Super 8 Motel. By creating

another brand, the Super 8 began to fill demand for budget properties in the immediate area,

while the Hilton Towers kept its current upscale customer base. Hence, smaller room counts

than average generate higher occupancy than average. Further proof is the correlation between

project size and occupancy: the smaller the property, the higher the occupancy.7

A further, 'Other,' segment adjustment may be made if the proposed product type is

under- or over- supplied in the local market, or for other factors. For example, a product type

commanding 10% of the Texas market - but zero locally - would command a higher daily rate or

occupancy locally because it is a relatively scarce commodity. Further, a subject product far

7 Study detailed in size factor derivation in analysis section.

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exceeds the product quality of the brand average, then a positive adjustment should be made to

reflect a better product than normal. While there is usually a reasonably consistent pattern of site

factors for the nearby local chain properties selected, these factors often vary because of unique

situations, including: 1) visibility and access differences between nearby sites; 2) any large

variation from the norm in the usual number of rooms for a local chain property at a site; 3) a

nearby property's quality, the quality of management, last renovation, etc.; and 4) any major new

commercial development nearby (e.g. shopping, office complex, hospital). Adjustments can be

made for these differences within forecast site factor, based on industry experience. This is the

Segment, or Other adjustment.

Then the REVPAR potential of the subject Site, regardless of brand, is developed in two

ways. First, all other property factors except site are calculated for nearby competitors, the site

factor then being used to bring the calculated REVPAR into a match with actual REVPAR

performance. In other words, combining all factors including a 'plugged' site factor results in the

theoretical REVPAR projection equaling actual REVPAR for each property studied, revealing

the mathematical value of individual hotel sites.

With the development of the adjustments for Brand/product type, overall Brand Age,

Segment, project Size, and Site, a revenue projection for the proposed operation begins to

take form by combining these factors into a combined index that is applied to the overall

market-wide REVPAR projection, resulting in the forecast of the project's dollar

REVPAR. However, this combined index changes with the cumulative age the project.

Then, the physical Age of the individual project impacts this REVPAR index. A +12%

increase factor is applied to the combined REVPAR index in the operating Years III-V. A

first-year start-up adjustment of -8% and a second year adjustment of +7%, followed by a +12%

adjustment for years III-V. This factor reflects the major revenue-generating power of new

versus old properties. In the sixth year and thereafter, the REVPAR index is then diminished at a

rate of 1.67% per annum in order to reflect aging and the normal life-cycle of a hotel.

This pattern of declining performance with property aging is based on major studies of economic

life-cycle patterns. The first study was conducted on a census of all 25,000 Texas rooms built

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between 1980 and 1982 (study published in September 1994 issues of MarketShare8 and the

October 1994 issue of Hotel & Motel Management); the second investigation was conducted on

all 17,231 rooms built in Texas from 1990 through 1995. These Source Strategies, Inc. studies

confirm a similar, major study conducted in 1982 at the Holiday corporation on 160 company-

owned and company-operated Holiday Inn hotels.

Combining all of these factors - Product Type, Brand Age, Site, Size, Segment (other), and

Newness (Age) - results in the REVPAR stream for the project. A REVPAR stream from

which room revenues, estimated rate, occupancy and roomnights sold are derived. At this

point, the investment and operational costs can be laid against the revenue line to generate

pro forma financial performance and discounted cash flow analysis. The calculation of the

statistic of Operating Costs Per Occupied Room (before fixed/capital costs are deducted) is

typically the important cost to examine carefully because it is highly stable and predictable,

regardless of occupancy and rate. The Smith Travel Research Host Report of Hotel Operating

Statistics, 2009 edition (2008 data) with dollar costs inflated, and Source Strategies, Inc.

financial models are the source of operating cost statistics.

From national average occupancies, costs are categorized as fixed, semi-variable or variable,

resulting in the highly-leveraged profit performance characteristic of lodging products,

depending on occupancy and REVPAR performance (i.e. variable costs increase proportionately

with higher occupancy levels while fixed costs do not). Furthermore, with a capital expenditures

profile provided by the International Society of Hospitality Consultants' CapEx, A Study of

Capital Expenditures in the U.S. Hotel Industry, a method has been applied to determine an

appropriate amount of renovation reserves to ensure that the property is maintained at the

franchisor's required level.

All study-area individual hotel/motel five year histories are included in the study, using the

Source Strategies, Inc. database of all Texas hotels and motels (includes each hotel’s brand,

room count, room revenue, occupancy, rate and REVPAR). The methodology of this database is

attached as an exhibit.

8 Now Hotel Brand Report.

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MARKET REVPAR HISTORY: TEXAS

1. Since 1980, the State of Texas (and the wider U.S. market) has experienced other

instances of economic turmoil such as the current recession. In 1982-1983 the Texas market

suffered through 6 consecutive quarters of major demand declines, with a sharp plummet of 24%

in the first quarter of 1983.

Two years later, every quarter in 1986 posted significant demand decreases of 19% or more.

The most recent period of decline was in 2001, with the onset of a recession, which was

exacerbated by the terrorist attacks of 9/11. Beginning in the Third quarter of 2001, seven of the

next eight quarters showed declining room demand, and it was not until the first quarter of 2004

that healthy levels of growth resumed.

We have considered the historical market patterns in formulating our projections for all

market projections. Though there are differences in each economic downturn, and areas across

the state are impacted differently depending on factors driving demand, there is much that can be

discerned from historical negative trending performances and the patterns of subsequent periods

of recovery.

Historical quarterly data highlighting periods of economic decline in

Texas follows overleaf:

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HOTEL MARKET: STATE OF TEXAS - 1980-2010

# Room-1 Total Htls nites Rooms % Growth Vs Yr Ago Year & and # sold Revenue % 2 $ 3 $ 4 Quarter Mtls Rooms 000's $ 000's Occ. Rate RPAR Sply Real ADR $ Rev 801 1,694 138,446 9,012 286,171 72.3 31.76 22.97 802 1,859 143,967 9,593 321,352 73.2 33.50 24.53 803 1,941 147,589 10,077 331,532 74.2 32.90 24.42 804 1,827 150,272 9,430 296,137 68.2 31.40 21.42 811 1,808 149,062 10,268 349,319 76.5 34.02 26.04 7.7 13.9 7.1 22.1 812 1,990 154,783 11,102 398,057 78.8 35.85 28.26 7.5 15.7 7.0 23.9 813 2,065 157,359 12,026 429,629 83.1 35.73 29.68 6.6 19.3 8.6 29.6 814 1,941 159,855 10,955 368,202 74.5 33.61 25.04 6.4 16.2 7.0 24.3 821 1,944 159,719 11,275 410,194 78.4 36.38 28.54 7.1 9.8 6.9 17.4 822 2,072 164,022 11,554 448,560 77.4 38.82 30.05 6.0 4.1 8.3 12.7 823 2,122 168,756 11,239 426,972 72.4 37.99 27.50 7.2 -6.5 6.3 -0.6 824 1,909 169,962 9,383 340,781 60.0 36.32 21.79 6.3 -14.4 8.1 -7.4 831 1,927 171,393 8,574 326,286 55.6 38.06 21.15 7.3 -24.0 4.6 -20.5 832 2,098 177,954 9,118 367,533 56.3 40.31 22.70 8.5 -21.1 3.8 -18.1 833 2,192 181,281 9,574 378,280 57.4 39.51 22.68 7.4 -14.8 4.0 -11.4 834 1,988 181,046 8,445 320,928 50.7 38.00 19.27 6.5 -10.0 4.6 -5.8 841 2,059 185,074 9,110 370,661 54.7 40.69 22.25 8.0 6.3 6.9 13.6 842 2,263 193,838 9,777 417,810 55.4 42.73 23.69 8.9 7.2 6.0 13.7 843 2,343 198,581 10,267 440,975 56.2 42.95 24.14 9.5 7.2 8.7 16.6 844 2,144 198,042 8,762 357,849 48.1 40.84 19.64 9.4 3.8 7.5 11.5 851 2,168 201,426 11,088 462,103 61.2 41.68 25.49 8.8 21.7 2.4 24.7 852 2,396 207,832 12,005 525,445 63.5 43.77 27.78 7.2 22.8 2.4 25.8 853 2,456 210,876 12,004 521,612 61.9 43.45 26.89 6.2 16.9 1.2 18.3 854 2,201 210,122 10,095 422,314 52.2 41.83 21.85 6.1 15.2 2.4 18.0 861 2,221 209,942 8,935 394,611 47.3 44.16 20.88 4.2 -19.4 6.0 -14.6 862 2,366 216,430 9,484 438,490 48.2 46.24 22.26 4.1 -21.0 5.6 -16.5 863 2,398 216,313 9,335 433,948 46.9 46.49 21.81 2.6 -22.2 7.0 -16.8 864 2,162 214,530 8,011 354,767 40.6 44.29 17.97 2.1 -20.6 5.9 -16.0 871 2,125 211,297 9,822 439,986 51.6 44.80 23.14 0.6 9.9 1.4 11.5 872 2,323 217,846 10,613 469,942 53.5 44.28 23.71 0.7 11.9 -4.2 7.2 873 2,488 223,226 11,609 513,072 56.5 44.20 24.98 3.2 24.4 -4.9 18.2 874 2,288 220,113 8,703 389,235 43.0 44.72 19.22 2.6 8.6 1.0 9.7 881 2,225 216,646 10,651 480,022 54.6 45.07 24.62 2.5 8.4 0.6 9.1 882 2,328 219,194 11,468 519,279 57.5 45.28 26.03 0.6 8.1 2.3 10.5 883 2,394 220,718 12,179 551,823 60.0 45.31 27.18 -1.1 4.9 2.5 7.6 884 2,183 217,487 10,408 468,241 52.0 44.99 23.40 -1.2 19.6 0.6 20.3 891 2,139 214,433 10,972 505,830 56.9 46.10 26.21 -1.0 3.0 2.3 5.4 892 2,254 216,409 12,152 568,731 61.7 46.80 28.88 -1.3 6.0 3.4 9.5 893 2,380 219,464 13,087 606,723 64.8 46.36 30.05 -0.6 7.5 2.3 9.9 894 2,143 214,991 10,915 505,305 55.2 46.30 25.55 -1.1 4.9 2.9 7.9 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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HOTEL MARKET: STATE OF TEXAS - 1980-2010 # Room-1 Total Htls nites Rooms % Growth Vs Yr Ago Year & and # sold Revenue % 2 $ 3 $ 4 Quarter Mtls Rooms 000's $ 000's Occ. Rate RPAR Sply Real ADR $ Rev 901 2,129 214,419 11,679 554,170 60.5 47.45 28.72 -0.0 6.4 2.9 9.6 902 2,311 218,824 12,840 624,482 64.5 48.64 31.36 1.1 5.7 3.9 9.8 903 2,488 223,343 12,708 629,223 61.8 49.51 30.62 1.8 -2.9 6.8 3.7 904 2,195 215,581 10,531 513,588 53.1 48.77 25.90 0.3 -3.5 5.3 1.6 911 2,288 216,607 11,476 565,424 58.9 49.27 29.00 1.0 -1.7 3.8 2.0 912 2,450 220,230 12,714 652,416 63.4 51.31 32.55 0.6 -1.0 5.5 4.5 913 2,489 221,280 13,203 669,743 64.9 50.73 32.90 -0.9 3.9 2.5 6.4 914 2,288 217,777 11,146 556,396 55.6 49.92 27.77 1.0 5.8 2.4 8.3 921 2,311 218,438 11,593 595,139 59.0 51.34 30.27 0.8 1.0 4.2 5.3 922 2,488 222,368 12,751 675,369 63.0 52.97 33.38 1.0 0.3 3.2 3.5 923 2,548 223,434 13,690 721,311 66.6 52.69 35.09 1.0 3.7 3.9 7.7 924 2,359 219,803 11,488 593,804 56.8 51.69 29.36 0.9 3.1 3.5 6.7 931 2,364 220,328 11,903 630,049 60.0 52.93 31.77 0.9 2.7 3.1 5.9 932 2,526 223,631 12,955 711,191 63.7 54.90 34.95 0.6 1.6 3.6 5.3 933 2,587 225,580 14,033 762,508 67.6 54.34 36.74 1.0 2.5 3.1 5.7 934 2,382 221,392 11,714 625,100 57.5 53.36 30.69 0.7 2.0 3.2 5.3 941 2,414 222,471 12,287 671,853 61.4 54.68 33.56 1.0 3.2 3.3 6.6 942 2,593 227,497 13,565 773,762 65.5 57.04 37.38 1.7 4.7 3.9 8.8 943 2,666 230,187 13,848 787,544 65.4 56.87 37.19 2.0 -1.3 4.7 3.3 944 2,475 226,119 12,215 677,868 58.7 55.50 32.59 2.1 4.3 4.0 8.4 951 2,457 225,028 12,549 738,394 62.0 58.84 36.46 1.1 2.1 7.6 9.9 952 2,604 229,116 13,526 810,170 64.9 59.90 38.86 0.7 -0.3 5.0 4.7 953 2,701 234,593 14,117 841,494 65.4 59.61 38.99 1.9 1.9 4.8 6.9 954 2,602 232,201 12,326 722,297 57.7 58.60 33.81 2.7 0.9 5.6 6.6 961 2,596 233,619 13,221 823,051 62.9 62.26 39.14 3.8 5.4 5.8 11.5 962 2,740 239,156 14,047 878,542 64.5 62.54 40.37 4.4 3.9 4.4 8.4 963 2,735 242,809 14,040 875,250 62.9 62.34 39.18 3.5 -0.5 4.6 4.0 964 2,666 241,679 12,572 775,657 56.5 61.70 34.89 4.1 2.0 5.3 7.4 971 2,694 245,315 13,353 861,700 60.5 64.53 39.03 5.0 1.0 3.6 4.7 972 2,774 250,349 14,720 965,813 64.6 65.61 42.39 4.7 4.8 4.9 9.9 973 2,838 254,368 14,874 968,988 63.6 65.15 41.41 4.8 5.9 4.5 10.7 974 2,800 257,088 13,470 873,191 57.0 64.83 36.92 6.4 7.1 5.1 12.6 981 2,847 258,388 14,390 965,828 61.9 67.12 41.53 5.3 7.8 4.0 12.1 982 2,930 263,497 15,481 1,057,929 64.6 68.34 44.12 5.3 5.2 4.2 9.5 983 3,019 270,763 15,927 1,053,109 63.9 66.12 42.28 6.4 7.1 1.5 8.7 984 2,978 271,238 14,316 941,569 57.4 65.77 37.73 5.5 6.3 1.4 7.8 991 3,047 277,678 15,010 1,023,911 60.1 68.22 40.97 7.5 4.3 1.6 6.0 992 3,129 282,933 15,996 1,125,938 62.1 70.39 43.73 7.4 3.3 3.0 6.4 993 3,220 290,145 16,562 1,111,162 62.0 67.09 41.63 7.2 4.0 1.5 5.5 994 3,208 289,149 14,552 968,974 54.7 66.59 36.43 6.6 1.7 1.2 2.9 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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HOTEL MARKET: STATE OF TEXAS - 1980-2010 # Room-1 Total Htls nites Rooms % Growth Vs Yr Ago Year & and # sold Revenue % 2 $ 3 $ 4 Quarter Mtls Rooms 000's $ 000's Occ. Rate RPAR Sply Real ADR $ Rev 001 3,226 290,046 15,883 1,114,731 60.8 70.18 42.70 4.5 5.8 2.9 8.9 002 3,356 295,709 17,001 1,232,674 63.2 72.51 45.81 4.5 6.3 3.0 9.5 003 3,388 300,371 17,187 1,219,157 62.2 70.94 44.12 3.5 3.8 5.7 9.7 004 3,360 299,047 15,228 1,064,870 55.3 69.93 38.71 3.4 4.6 5.0 9.9 011 3,411 302,343 16,517 1,188,162 60.7 71.94 43.66 4.2 4.0 2.5 6.6 012 3,536 306,089 17,222 1,239,069 61.8 71.95 44.48 3.5 1.3 -0.8 0.5 013 3,589 310,957 16,802 1,164,254 58.7 69.29 40.70 3.5 -2.2 -2.3 -4.5 014 3,535 307,914 14,483 960,167 51.1 66.30 33.89 3.0 -4.9 -5.2 -9.8 021 3,576 309,745 15,867 1,110,327 56.9 69.98 39.83 2.4 -3.9 -2.7 -6.6 022 3,684 314,166 17,012 1,225,468 59.5 72.04 42.86 2.6 -1.2 0.1 -1.1 023 3,707 318,226 16,541 1,158,407 56.5 70.03 39.57 2.3 -1.6 1.1 -0.5 024 3,644 313,988 14,713 986,554 50.9 67.05 34.15 2.0 1.6 1.1 2.7 031 3,672 316,723 15,361 1,057,864 53.9 68.87 37.11 2.3 -3.2 -1.6 -4.7 032 3,780 318,836 16,737 1,169,718 57.7 69.89 40.32 1.5 -1.6 -3.0 -4.5 033 3,805 323,624 16,776 1,162,518 56.3 69.30 39.05 1.7 1.4 -1.0 0.4 034 3,734 320,212 14,914 987,483 50.6 66.21 33.52 2.0 1.4 -1.3 0.1 041 3,747 323,147 16,239 1,145,793 55.8 70.56 39.40 2.0 5.7 2.5 8.3 042 3,878 327,926 17,518 1,237,847 58.7 70.66 41.48 2.9 4.7 1.1 5.8 043 3,913 332,549 17,679 1,264,128 57.8 71.50 41.32 2.8 5.4 3.2 8.7 044 3,829 329,158 15,951 1,082,616 52.7 67.87 35.75 2.8 7.0 2.5 9.6 051 3,852 329,449 17,015 1,214,908 57.4 71.40 40.97 2.0 4.8 1.2 6.0 052 3,983 332,254 18,593 1,391,414 61.5 74.84 46.02 1.3 6.1 5.9 12.4 053 4,048 338,115 19,173 1,449,393 61.6 75.59 46.59 1.7 8.5 5.7 14.7 054 3,962 334,144 18,561 1,383,105 60.4 74.52 44.99 1.5 16.4 9.8 27.8 061 3,978 334,912 18,910 1,479,351 62.7 78.23 49.08 1.7 11.1 9.6 21.8 062 4,121 337,788 19,328 1,609,669 62.9 83.28 52.37 1.7 4.0 11.3 15.7 063 4,184 344,093 19,733 1,606,206 62.3 81.40 50.74 1.8 2.9 7.7 10.8 064 4,093 341,556 18,004 1,439,964 57.3 79.98 45.82 2.2 -3.0 7.3 4.1 071 4,127 343,745 19,366 1,614,471 62.6 83.37 52.19 2.6 2.4 6.6 9.1 072 4,290 347,178 19,916 1,756,887 63.0 88.21 55.61 2.8 3.0 5.9 9.1 073 4,340 353,440 20,324 1,743,413 62.5 85.78 53.62 2.7 3.0 5.4 8.5 074 4,248 350,908 18,594 1,564,612 57.6 84.15 48.46 2.7 3.3 5.2 8.7 081 4,276 353,555 19,690 1,738,726 61.9 88.31 54.64 3.1 1.7 0.2 -0.9 082 4,463 359,217 20,654 1,919,396 63.2 92.93 58.72 3.6 3.7 8.5 10.3 083 4,524 366,163 21,246 1,907,486 63.1 89.78 56.62 3.8 4.6 7.0 22.3 084 4,338 360,500 19,285 1,694,290 58.1 87.86 51.09 2.7 3.7 4.4 8.2 091 4,378 366,440 18,710 1,592,799 56.7 85.13 48.30 3.6 -5.0 -3.6 -8.4 092 4,603 374,553 18,627 1,613,320 54.7 86.61 47.33 4.3 -9.8 -6.8 -15.9 093 4,691 384,597 19,149 1,593,068 54.1 83.19 45.02 5.0 -9.9 -7.3 -16.5 094 4,581 384,315 17,295 1,371,472 48.9 79.30 38.79 6.6 -10.1 -9.7 -19.1 101 4,643 390,069 19,157 1,547,363 54.6 80.77 44.08 6.4 2.4 -5.1 -2.9 CGR% 28 yrs 3.3% 2.3% 5.9% -0.9% 3.5 % 2.6% " 20 yrs 2.7% 2.7% 6.1% 0.0% 3.3 % 3.3% " 10 yrs 3.0% 2.4% 5.1% -0.5% 2.6 % 2.1% " 5 yrs 2.6% 3.5% 8.5% 0.9% 4.8 % 5.7% " 1 yr 5.6% -7.1% -13.9%-11.9% -7.3 % -18.4% 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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Market REVPAR History & Forecast:

2. Over the past nine years, the Austin Metro Market has shown an average annual real

growth of 2.1% (room-nights sold), annual growth of 3.3% in total room revenues, and a

0.4% annual gain in REVPAR; note that the severe recession of 2009 depressed the long-

term performance numbers. Occupancy dropped 0.8% per year over the nine years. Supply

rose by 2.9% per year, with room rates rising 1.2% annually.

Over the past four years, a 1% per year rise in demand was coupled with supply growth of

2.7% annually. Revenues over this period gained an average of 3.4% per year, while REVPAR

increased a modest 0.7% annually. Room rates rose 2.4% per year. Occupancy decreased over

the last four years by 1.6% per year.

Over the last two years, demand dropped by 2.1% annually. Average performance was

further impinged by 3.3% annual increases in supply. These results caused occupancy to fall

by 5.2% annually, followed by REVPAR losses averaging 8.3% per year. Rates fell 3.2% per

year, and yearly revenues slipped 5.3%.

Most recent history, the 12 months ending June 30, 2010, shows poor results. Real demand

dropped by 0.1%, rates by 6.5%, revenues by 6.6% and occupancy by 3.6%. With a

supply increase of 3.5%, REVPAR dropped 9.9% for the average hotel. Revenues fell 6.6%

for the area market versus 14% for all of Texas. Market occupancy averaged 57.3% versus

53.6% for the state.

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LODGING MARKET: AUSTIN METRO HISTORY

# Room 1 Total Htls nites Rooms Year & and # sold Revenue % 2 $ 3 $ 4 % Growth Vs Yr Ago Quarter Mtls Rooms 000's $000's Occ. Rate RevPar Sply Real ADR $ Rev 003 208 20,871 1,277 115,500 66.5 90.44 60.15 004 208 21,137 1,243 110,384 63.9 88.81 56.76 011 210 21,570 1,315 117,375 67.7 89.25 60.46 012 219 22,223 1,291 117,995 63.8 91.44 58.35 013 225 22,634 1,144 96,260 54.9 84.16 46.23 8.4 -10.4 -6.9 -16.7 014 223 22,867 1,087 83,887 51.7 77.15 39.87 8.2 -12.5 -13.1 -24.0 021 228 23,046 1,143 94,198 55.1 82.44 45.42 6.8 -13.1 -7.6 -19.7 022 236 23,593 1,256 110,095 58.5 87.64 51.28 6.2 -2.7 -4.2 -6.7 023 237 23,785 1,098 91,966 50.2 83.78 42.03 5.1 -4.0 -0.5 -4.5 024 234 23,918 1,137 88,913 51.7 78.23 40.41 4.6 4.5 1.4 6.0 031 236 24,130 1,230 101,080 56.6 82.18 46.54 4.7 7.6 -0.3 7.3 032 242 24,288 1,244 103,830 56.3 83.44 46.98 2.9 -0.9 -4.8 -5.7 033 244 24,452 1,184 96,721 52.6 81.71 43.00 2.8 7.8 -2.5 5.2 034 243 24,531 1,082 84,327 47.9 77.94 37.36 2.6 -4.8 -0.4 -5.2 041 245 25,418 1,247 97,386 54.5 78.07 42.57 5.3 1.4 -5.0 -3.7 042 251 25,601 1,409 114,500 60.5 81.26 49.15 5.4 13.2 -2.6 10.3 043 252 25,602 1,315 109,409 55.8 83.18 46.45 4.7 11.1 1.8 13.1 044 246 25,302 1,242 98,018 53.4 78.91 42.11 3.1 14.8 1.2 16.2 051 243 25,084 1,413 115,872 62.6 82.00 51.33 -1.3 13.3 5.0 19.0 052 249 25,170 1,494 132,608 65.2 88.74 57.90 -1.7 6.1 9.2 15.8 053 247 25,105 1,405 125,602 60.8 89.40 54.38 -1.9 6.8 7.5 14.8 054 244 24,890 1,425 120,368 62.2 84.49 52.57 -1.6 14.7 7.1 22.8 061 244 24,887 1,551 139,023 69.2 89.64 62.07 -0.8 9.8 9.3 20.0 062 251 25,189 1,544 155,762 67.3 100.92 67.95 0.1 3.3 13.7 17.5 063 257 25,763 1,585 156,078 66.9 98.45 65.85 2.6 12.8 10.1 24.3 064 252 25,875 1,506 141,312 63.2 93.86 59.36 4.0 5.7 11.1 17.4 071 248 25,774 1,702 171,764 73.4 100.89 74.05 3.6 9.8 12.6 23.6 072 258 25,904 1,643 180,521 69.7 109.89 76.58 2.8 6.4 8.9 15.9 073 259 26,065 1,608 170,467 67.0 106.03 71.09 1.2 1.4 7.7 9.2 074 251 25,922 1,527 153,132 64.0 100.26 64.21 0.2 1.4 6.8 8.4 081 253 25,935 1,649 175,341 70.6 106.34 75.12 0.6 -3.1 5.4 2.1 082 269 26,343 1,657 190,461 69.1 114.98 79.45 1.7 0.8 4.6 5.5 083 267 26,661 1,592 180,730 64.9 113.55 73.68 2.3 -1.0 7.1 6.0 084 258 26,522 1,477 156,131 60.5 105.69 63.99 2.3 -3.3 5.4 2.0 091 255 26,821 1,569 163,751 65.0 104.38 67.84 3.4 -4.9 -1.8 -6.6 092 273 27,455 1,544 162,095 61.8 105.00 64.88 4.2 -6.8 -8.7 -14.9 093 268 27,317 1,440 148,120 57.3 102.86 58.94 2.5 -9.5 -9.4 -18.0 094 268 27,572 1,403 138,012 55.3 98.38 54.41 4.0 -5.0 -6.9 -11.6 101 272 27,962 1,657 160,668 65.9 96.95 63.84 4.3 5.6 -7.1 -1.9 102 284 28,398 1,673 171,899 64.7 102.78 66.52 3.4 8.3 -2.1 6.0 CGR% Past 9yrs 2.9% 2.1% 3.3% -0.8% 1.2 % 0.4% 4yrs 2.7% 1.0% 3.4% -1.6% 2.4 % 0.7% 2yrs 3.3% -2.1% -5.3% -5.2% -3.2 % -8.3% 1yr 3.5% -0.1% -6.6% -3.6% -6.5 % -9.9% 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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3. In the future, overall market occupancy is projected to return to the estimated long-term

equilibrium occupancy level of 61% by 2014. For the next nine years, real demand (room nights

sold) is projected at an average 3.2% growth rate, matching the projected net supply growth of

3.2%. With 2.9% average daily rate inflation, market gross revenues should gain 6.2% annually

during the nine year forecast.

These assumptions relative to demand, supply, and occupancy reflect the fact that over the past

20 years overall occupancy in Texas has averaged about 60%, a level considered to be

'Equilibrium Occupancy' state-wide. This fact considers that larger and more successful metro

area markets generate higher overall occupancy and REVPAR numbers than state averages,

while rural areas lag these averages (Source Strategies, Inc. database).

'Equilibrium Occupancy' is further explained by the fact that new investment money will

eventually be attracted to an under-supplied market until market occupancy falls and lower

returns on capital are the result. The equilibrium occupancy point is where net, new supply is

being added at about the same rate as growth in demand, and where return on investment is in

balance with the cost of capital.

Fueled by moderate, steady demand growth, the Austin Metro has room for appropriately-

positioned new development, added at similar rates to demand. Higher quality new lodging

products at or above mid-priced levels are performing very well in the market despite overall

performance numbers being moderated by the large number of older, obsolete, budget and

independent hotels. These older, existing competitors are highly vulnerable to the superior

attractiveness of newly-built lodging. This pattern can be seen in the success of chain operations

at or above the mid-priced levels. Given this growth scenario, room supply consequently grows

from 28,398 rooms currently to 37,779 in 2019, 33% higher and representing 9,381 net new

rooms (gross new openings, less closings).

Note that REVPAR growth for every individual hotel unit is well below the total revenue growth

of the market, with average REVPAR in our projection rising by 2.8% per annum over the next

five years (compared to the 0.4% average REVPAR gain of the past nine years). Revenues are

forecast to grow by 6.3% per year on the strength of 3.4% growth in real demand and 2.7%

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growth in price (room-rates). Occupancy over the next five years is expected to rise by 0.1% per

year, as supply rises 3.4% per year.

If supply should grow 3,800 rooms over forecast (+10%), without demand also growing faster

than forecast, average individual hotel REVPAR would decline by 9% versus forecast, dropping

from the forecast REVPAR of $73 to $67 by the last quarter of 2019. Real growth for hotel

rooms in the metro began to resume in the first quarter of 2010.

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LODGING MARKET: AUSTIN METRO PROJECTION

# Room 1 Total Htls nites Rooms Year & and # sold Revenue % 2 $ 3 $ 4 % Growth Vs Yr Ago Quarter Mtls Rooms 000's $000's Occ. Rate RevPar Sply Real ADR $ Rev 103 280 28,273 1,512 152,414 58.1 100.80 58.60 3.5 5.0 -2.0 2.9 104 280 28,537 1,473 147,817 56.1 100.35 56.30 3.5 5.0 2.0 7.1 111 284 28,941 1,740 172,083 66.8 98.89 66.07 3.5 5.0 2.0 7.1 112 297 29,392 1,756 185,909 65.7 105.86 69.51 3.5 5.0 3.0 8.2 113 293 29,263 1,565 163,270 58.1 104.33 60.65 3.5 3.5 3.5 7.1 114 293 29,536 1,525 158,345 56.1 103.86 58.27 3.5 3.5 3.5 7.1 121 297 29,954 1,792 183,449 66.5 102.35 68.05 3.5 3.0 3.5 6.6 122 310 30,421 1,809 198,189 65.3 109.57 71.59 3.5 3.0 3.5 6.6 123 306 30,287 1,612 173,213 57.8 107.46 62.16 3.5 3.0 3.0 6.1 124 306 30,570 1,570 167,988 55.8 106.98 59.73 3.5 3.0 3.0 6.1 131 311 31,002 1,846 194,621 66.2 105.42 69.75 3.5 3.0 3.0 6.1 132 325 31,485 1,863 210,258 65.0 112.86 73.38 3.5 3.0 3.0 6.1 133 320 31,347 1,660 183,761 57.6 110.68 63.72 3.5 3.0 3.0 6.1 134 320 31,640 1,617 178,218 55.6 110.18 61.23 3.5 3.0 3.0 6.1 141 325 32,087 1,902 206,474 65.8 108.58 71.50 3.5 3.0 3.0 6.1 142 338 32,430 1,919 223,063 65.0 116.24 75.59 3.0 3.0 3.0 6.1 143 333 32,287 1,710 194,952 57.6 114.01 65.63 3.0 3.0 3.0 6.1 144 333 32,589 1,666 189,072 55.6 113.49 63.06 3.0 3.0 3.0 6.1 151 338 33,050 1,959 219,048 65.8 111.84 73.64 3.0 3.0 3.0 6.1 152 351 33,403 1,977 236,648 65.0 119.73 77.85 3.0 3.0 3.0 6.1 153 347 33,256 1,761 206,825 57.6 117.43 67.60 3.0 3.0 3.0 6.1 154 347 33,566 1,716 200,586 55.6 116.90 64.95 3.0 3.0 3.0 6.1 161 352 34,041 2,017 232,388 65.8 115.20 75.85 3.0 3.0 3.0 6.1 162 365 34,405 2,036 251,059 65.0 123.32 80.19 3.0 3.0 3.0 6.1 163 361 34,254 1,814 219,421 57.6 120.95 69.63 3.0 3.0 3.0 6.1 164 361 34,573 1,767 212,802 55.6 120.40 66.90 3.0 3.0 3.0 6.1 171 366 35,062 2,078 246,540 65.8 118.65 78.13 3.0 3.0 3.0 6.1 172 380 35,437 2,097 266,349 65.0 127.02 82.59 3.0 3.0 3.0 6.1 173 375 35,281 1,869 232,783 57.6 124.58 71.72 3.0 3.0 3.0 6.1 174 375 35,611 1,820 225,762 55.6 124.01 68.91 3.0 3.0 3.0 6.1 181 381 36,114 2,140 261,555 65.8 122.21 80.47 3.0 3.0 3.0 6.1 182 396 36,500 2,160 282,570 65.0 130.83 85.07 3.0 3.0 3.0 6.1 183 390 36,340 1,925 246,960 57.6 128.31 73.87 3.0 3.0 3.0 6.1 184 390 36,679 1,875 239,511 55.6 127.73 70.98 3.0 3.0 3.0 6.1 191 396 37,198 2,204 277,483 65.8 125.88 82.89 3.0 3.0 3.0 6.1 192 412 37,595 2,225 299,778 65.0 134.76 87.62 3.0 3.0 3.0 6.1 193 406 37,430 1,982 262,000 57.6 132.16 76.08 3.0 3.0 3.0 6.1 194 406 37,779 1,931 254,097 55.6 131.57 73.11 3.0 3.0 3.0 6.1 201 412 38,314 2,271 294,382 65.8 129.65 85.37 3.0 3.0 3.0 6.1 202 428 38,723 2,291 318,035 65.0 138.80 90.25 3.0 3.0 3.0 6.1 203 422 38,553 2,042 277,955 57.6 136.13 78.37 3.0 3.0 3.0 6.1 204 422 38,913 1,989 269,571 55.6 135.51 75.30 3.0 3.0 3.0 6.1 211 429 39,463 2,339 312,310 65.8 133.54 87.93 3.0 3.0 3.0 6.1 212 446 39,885 2,360 337,403 65.0 142.96 92.96 3.0 3.0 3.0 6.1 CGR% 9yrs 3.2% 3.2% 6.2% 0.0% 2.9 % 2.9% '5yrs 3.4% 3.4% 6.3% 0.1% 2.7 % 2.8% HISTORY CGR% Past 9yrs 2.9% 2.1% 3.3% -0.8% 1.2 % 0.4% 4yrs 2.7% 1.0% 3.4% -1.6% 2.4 % 0.7% 1yr 3.5% -0.1% -6.6% -3.6% -6.5 % -9.9% Roomnights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for roomn ights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day.

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LOCAL MARKET PERFORMANCE

4. The subject hotel’s local market area currently generates a REVPAR of $37

compared to the Texas average of $44. This REVPAR difference is not a

performance shortfall, but rather, it is due to a l ack of upscale and luxury

hotels locally:

PERIOD: TWELVE MONTHS ENDING JUNE 30, 2010

LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN

# * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR CHAINS MARRIOTT 1 .3 5.9 70 6.7 8,454 12.4 65.3 120.22 78.51 TOT UPSCALE 1 .3 5.9 70 6.7 8,454 12.4 65.3 120.22 78.51 RESIDENCE 2 .2 3.7 48 4.6 5,638 8.3 71.7 117.09 83.95 STAYBRIDG 1 .1 1.6 18 1.7 1,713 2.5 61.2 94.59 57.93 TOT SUITES 3 .3 5.3 66 6.3 7,351 10.8 68.5 110.94 75.99 COURTYARD 2 .2 4.8 38 3.6 3,659 5.4 43.8 95.82 41.92 HILT GARD 2 .2 4.8 51 4.9 4,949 7.2 58.8 96.48 56.73 HOLID INN 1 .1 1.8 19 1.8 1,403 2.1 56.5 74.71 42.25 TOT MID/UPS 5 .6 11.3 108 10.3 10,011 14.7 52.1 92.47 48.19 CANDLWOOD 1 .1 2.0 22 2.1 1,278 1.9 61.9 57.73 35.72 COMFO STE 3 .2 3.9 43 4.1 3,565 5.2 60.6 82.18 49.83 SPRNGHILL 2 .2 4.7 54 5.1 4,391 6.4 62.2 82.01 50.97 TOT MIN STE 6 .5 10.6 119 11.3 9,233 13.5 61.5 77.56 47.73 BEST WEST 2 .2 3.7 38 3.6 2,166 3.2 55.6 57.69 32.08 CNTRY INN 1 .1 1.2 10 1.0 547 .8 45.2 54.35 24.55 FAIRFIELD 1 .2 3.0 20 1.9 1,598 2.3 37.0 78.90 29.19 HAMPTON 1 .1 1.9 23 2.2 2,501 3.7 66.6 110.53 73.67 HOLID EXP 3 .2 4.3 46 4.4 3,758 5.5 58.9 81.24 47.88 LA QUINTA 3 .3 6.0 67 6.4 4,392 6.4 61.3 65.21 39.98 SLEEP INN 0 .0 .4 3 .3 198 .3 50.5 58.22 29.40 WINGATE 1 .1 2.0 19 1.8 1,278 1.9 53.2 65.82 35.02 TOT LTD SVE 12 1.1 22.4 227 21.6 16,438 24.1 55.3 72.44 40.09 EXT AMERI 3 .4 7.2 79 7.5 3,073 4.5 60.2 38.85 23.39 INTOWN ST 1 .1 2.4 29 2.8 991 1.5 66.5 33.74 22.43 VALUE PLC 2 .2 4.2 52 4.9 1,498 2.2 67.0 28.96 19.41 TOT EXT STA 6 .7 13.8 160 15.2 5,562 8.1 63.4 34.72 22.00 DAYS INN 2 .1 2.1 17 1.6 799 1.2 44.6 47.21 21.05 HO JO 1 .2 3.7 29 2.8 1,003 1.5 42.5 34.37 14.62 MOTEL 6 2 .3 5.3 61 5.8 2,289 3.4 62.5 37.60 23.48 QUALITY 1 .1 1.1 12 1.1 668 1.0 59.9 56.63 33.92 RAMADA 1 .2 3.1 32 3.0 1,098 1.6 56.1 34.40 19.29 RED ROOF 2 .3 5.0 43 4.1 1,889 2.8 47.4 43.65 20.70 SUPER 8 1 .1 2.4 28 2.7 1,197 1.8 62.2 42.85 26.66 TOT BUDGET 10 1.1 22.7 222 21.1 8,944 13.1 53.2 40.30 21.46 TOT CHAINS 43 4.6 91.9 973 92.6 65,992 96.7 57.7 67.83 39.16 TOT INDEP 7 .4 8.1 78 7.4 2,280 3.3 53.0 29.12 15.42 TOT MARKET 50 5.0 100.0 1,051 100.0 68,272 100 57.3 64.94 37.25 1. Roomnights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for roomnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per day (room sales per day).

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Local Market REVPAR History & Forecast:

5. Over the past nine years, the I-35 Corridor Market has shown an average annual real

growth of 2.3% (room-nights sold), annual growth of 3.2% in total room revenues, and a

0.4% annual decline in REVPAR; note that the severe recession of 2009 depressed the

long-term performance numbers. Occupancy dropped 1.2% per year over the nine years.

Supply rose by 3.6% per year, with room rates rising 0.9% annually.

Over the past four years, a gain of 0.2% per year in demand was coupled with supply

growth of 2.7% annually. Revenues over this period rose an average of 0.6% per year, while

REVPAR slipped 2.1% annually. Room rates rose 0.4% per year. Occupancy decreased over

the last four years by 2.4% per year.

Over the last two years, demand fell 3.1% annually. Average performance was further

hampered by a 4.6% annual increases in supply. These results caused occupancy to fall by

7.4% annually, followed by REVPAR losses averaging 12.6% per year. Rates dropped 5.6% per

year, and yearly revenues slipped 8.6%.

Most recent history, the 12 months ending June 30, 2010, shows poor results. Real demand

gained a modest 1.9%, rates fell 8.3%, revenues dropped by 6.7% and occupancy eroded

2.4%. With a supply increase of 4.4%, REVPAR dropped 10.6% for the average hotel.

For comparison, revenues fell 14% for all of Texas during the same period. Market occupancy

averaged 59% versus 53% for the state. Locally, demand resumed in the first quarter of 2010.

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LODGING MARKET: AUSTIN IH-35 CORRIDOR HISTORY

# Room 1 Total Htls nites Rooms Year & and # sold Revenue % 2 $ 3 $ 4 % Growth Vs Yr Ago Quarter Mtls Rooms 000's $000's Occ. Rate RevPar Sply Real ADR $ Rev 003 37 3,464 204 12,327 64.0 60.40 38.68 004 38 3,654 211 12,144 62.8 57.55 36.12 011 38 3,606 217 12,821 66.8 59.13 39.51 012 41 3,861 222 13,978 63.3 62.87 39.78 013 41 4,033 203 12,289 54.6 60.65 33.12 16.4 -0.7 0.4 -0.3 014 41 4,033 184 10,021 49.7 54.38 27.01 10.4 -12.7 -5.5 -17.5 021 42 4,110 199 11,409 53.8 57.37 30.84 14.0 -8.3 -3.0 -11.0 022 42 4,218 221 13,554 57.5 61.39 35.31 9.2 -0.7 -2.4 -3.0 023 42 4,300 201 12,418 50.7 61.86 31.39 6.6 -0.9 2.0 1.0 024 44 4,348 196 10,948 49.0 55.86 27.37 7.8 6.3 2.7 9.3 031 44 4,399 209 11,938 52.9 57.05 30.15 7.0 5.2 -0.6 4.6 032 44 4,399 225 13,246 56.2 58.93 33.09 4.3 1.8 -4.0 -2.3 033 45 4,409 208 11,966 51.2 57.58 29.50 2.5 3.5 -6.9 -3.6 034 46 4,506 189 10,389 45.5 55.10 25.06 3.6 -3.8 -1.4 -5.1 041 45 4,549 216 11,735 52.6 54.45 28.66 3.4 3.0 -4.6 -1.7 042 46 4,563 243 13,753 58.6 56.50 33.12 3.7 8.3 -4.1 3.8 043 46 4,563 226 13,121 53.9 57.97 31.26 3.5 8.9 0.7 9.7 044 46 4,563 213 11,637 50.7 54.67 27.72 1.3 12.9 -0.8 12.0 051 45 4,524 249 13,790 61.1 55.43 33.87 -0.5 15.5 1.8 17.5 052 46 4,540 267 16,389 64.7 61.29 39.67 -0.5 9.9 8.5 19.2 053 45 4,480 249 15,476 60.3 62.23 37.55 -1.8 9.9 7.3 17.9 054 45 4,479 245 14,561 59.5 59.35 35.34 -1.8 15.3 8.6 25.1 061 46 4,548 267 16,529 65.3 61.88 40.38 0.5 7.4 11.6 19.9 062 46 4,548 281 20,160 67.9 71.72 48.71 0.2 5.1 17.0 23.0 063 46 4,548 283 19,483 67.5 68.96 46.56 1.5 13.6 10.8 25.9 064 46 4,536 274 17,922 65.7 65.33 42.95 1.3 11.8 10.1 23.1 071 46 4,535 302 20,715 73.9 68.69 50.75 -0.3 12.9 11.0 25.3 072 46 4,535 291 22,256 70.4 76.62 53.93 -0.3 3.3 6.8 10.4 073 47 4,557 283 20,590 67.6 72.66 49.11 0.2 0.3 5.4 5.7 074 47 4,557 269 18,643 64.2 69.25 44.47 0.5 -1.9 6.0 4.0 081 47 4,557 284 20,769 69.2 73.18 50.64 0.5 -5.9 6.5 0.3 082 48 4,679 283 21,706 66.5 76.65 50.98 3.2 -2.5 0.0 -2.5 083 48 4,778 273 20,893 62.0 76.66 47.53 4.8 -3.8 5.5 1.5 084 47 4,763 245 17,418 56.0 71.00 39.75 4.5 -8.9 2.5 -6.6 091 47 4,763 248 16,357 57.8 65.98 38.16 4.5 -12.6 -9.8 -21.2 092 49 4,933 266 18,521 59.3 69.60 41.26 5.4 -6.0 -9.2 -14.7 093 49 4,906 244 16,280 54.0 66.85 36.07 2.7 -10.6 -12.8 -22.1 094 50 5,063 236 15,011 50.6 63.67 32.23 6.3 -3.9 -10.3 -13.8 101 49 5,023 284 17,584 62.8 61.90 38.90 5.5 14.6 -6.2 7.5 102 50 5,097 288 19,396 62.1 67.36 41.82 3.3 8.2 -3.2 4.7 CGR% Past 9yrs 3.6% 2.3% 3.2% -1.2% 0.9 % -0.4% 4yrs 2.7% 0.2% 0.6% -2.4% 0.4 % -2.1% 2yrs 4.6% -3.1% -8.6% -7.4% -5.6 % -12.6% 1yr 4.4% 1.9% -6.7% -2.4% -8.3 % -10.6% Wider Market History CGR% Past 9yrs 2.9% 2.1% 3.3% -0.8% 1.2 % 0.4% 4yrs 2.7% 1.0% 3.4% -1.6% 2.4 % 0.7% 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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6. Overall market occupancy is projected to recover as the economy rebounds. This

translates to a gradual gain in occupancies to the long-term equilibrium occupancy level of

60% over the next 4 years (by 2014). REVPAR should grow at 3.9% annually in the

period, coupled with room revenue growth of 7.3% annually, 3.4% annual rate increases

and 0.5% annual occupancy gains. Over the next nine years, real demand (room nights sold)

is projected at an average 3.7% growth rate, with supply rising 3.2%.

These assumptions relative to demand, supply, and occupancy reflect the fact that over the past

20 years overall occupancy in Texas has averaged about 59%, a level considered to be

'Equilibrium Occupancy' state-wide. This fact considers that larger and more successful metro

area markets generate higher overall occupancy and REVPAR numbers than state averages,

while rural and Interstate highways areas lag these averages (Source Strategies, Inc. database).

'Equilibrium Occupancy' is further explained by the fact that new investment money will

eventually be attracted to an under-supplied market until market occupancy falls and lower

returns on capital are the result. The equilibrium occupancy point is where net, new supply is

being added at about the same rate as growth in demand, and where return on investment is in

balance with the cost of capital.

The IH-35 Corridor market has room for selectively-positioned new development, in pockets of

high demand and/or aged and weak competitors. Higher quality new lodging products at or

above mid-priced levels are performing very well in the market despite overall performance

numbers being moderated by the large number of older, obsolete, budgets. These older, existing

competitors are highly vulnerable to the superior attractiveness of newly-built, major-branded

lodging. This pattern can be seen in the success of chain operations at or above the mid-priced

levels.

Given our growth assumptions, room supply consequently grows from 5,022 rooms currently to

6,754 in 2019, 34% higher and representing 1,731 net new rooms (gross new openings, less

closings).

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Note that REVPAR growth for every individual hotel unit is well below the total revenue

growth of the market, with average REVPAR in our projection rising by 4.7% per annum

over the next five years (compared to a 0.4% average annual REVPAR decline over the

past nine years). Revenues are forecast to grow at 8.6% per year on the strength of 4.7%

growth in real demand – starting from the ‘trough’ of 2009 - and 3.7% growth in price (room-

rates). Occupancy over the next five years is expected to gain 1% annually, as supply rises by

3.7% per year.

If supply should grow 680 rooms over forecast (+10%), without demand also growing faster than

forecast, average individual hotel REVPAR would decline by 9% versus forecast, dropping from

the forecast REVPAR of $48 to $44 in the last quarter of 2019.

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LODGING MARKET: AUSTIN IH-35 CORRIDOR PROJECTION

# Room 1 Total Htls nites Rooms Year & and # sold Revenue % 2 $ 3 $ 4 % Growth Vs Yr Ago Quarter Mtls Rooms 000's $000's Occ. Rate RevPar Sply Real ADR $ Rev 103 50 5,102 268 17,906 57.1 66.85 38.15 4.0 10.0 0.0 10.0 104 51 5,190 259 17,010 54.3 65.58 35.63 2.5 10.0 3.0 13.3 111 51 5,199 313 19,925 66.8 63.76 42.58 3.5 10.0 3.0 13.3 112 52 5,275 317 22,193 66.0 70.05 46.23 3.5 10.0 4.0 14.4 113 53 5,306 281 19,553 57.6 69.52 40.05 4.0 5.0 4.0 9.2 114 54 5,397 272 18,575 54.8 68.20 37.41 4.0 5.0 4.0 9.2 121 54 5,459 328 21,758 66.8 66.31 44.29 5.0 5.0 4.0 9.2 122 55 5,539 333 24,468 66.0 73.56 48.54 5.0 5.0 5.0 10.3 123 56 5,572 291 21,249 56.8 73.00 41.45 5.0 3.5 5.0 8.7 124 57 5,667 282 20,186 54.1 71.61 38.72 5.0 3.5 5.0 8.7 131 58 5,732 340 23,645 65.8 69.62 45.84 5.0 3.5 5.0 8.7 132 58 5,733 344 26,337 66.0 76.50 50.48 3.5 3.5 4.0 7.6 133 58 5,739 300 22,762 56.8 75.92 43.11 3.0 3.0 4.0 7.1 134 60 5,837 290 21,520 54.1 74.12 40.07 3.0 3.0 3.5 6.6 141 60 5,904 348 25,085 65.5 72.06 47.21 3.0 2.5 3.5 6.1 142 60 5,905 353 27,941 65.7 79.18 52.00 3.0 2.5 3.5 6.1 143 61 5,911 307 24,148 56.5 78.58 44.41 3.0 2.5 3.5 6.1 144 62 6,012 298 22,830 53.8 76.71 41.27 3.0 2.5 3.5 6.1 151 62 6,081 357 26,612 65.2 74.58 48.63 3.0 2.5 3.5 6.1 152 63 6,082 362 29,642 65.4 81.95 53.56 3.0 2.5 3.5 6.1 153 63 6,088 315 25,618 56.2 81.33 45.74 3.0 2.5 3.5 6.1 154 65 6,193 305 24,103 53.5 79.02 42.31 3.0 2.5 3.0 5.6 161 65 6,263 366 28,095 64.9 76.82 49.84 3.0 2.5 3.0 5.6 162 65 6,234 371 31,294 65.4 84.41 55.16 2.5 2.5 3.0 5.6 163 65 6,240 323 27,046 56.2 83.77 47.11 2.5 2.5 3.0 5.6 164 67 6,347 313 25,446 53.5 81.39 43.58 2.5 2.5 3.0 5.6 171 67 6,420 375 29,662 64.9 79.12 51.34 2.5 2.5 3.0 5.6 172 67 6,390 380 33,039 65.4 86.94 56.82 2.5 2.5 3.0 5.6 173 68 6,397 331 28,554 56.2 86.28 48.52 2.5 2.5 3.0 5.6 174 69 6,506 320 26,865 53.5 83.83 44.88 2.5 2.5 3.0 5.6 181 70 6,580 384 31,315 64.9 81.50 52.88 2.5 2.5 3.0 5.6 182 70 6,550 390 34,881 65.4 89.55 58.52 2.5 2.5 3.0 5.6 183 70 6,556 339 30,146 56.2 88.87 49.98 2.5 2.5 3.0 5.6 184 72 6,669 328 28,363 53.5 86.34 46.23 2.5 2.5 3.0 5.6 191 72 6,745 394 33,061 64.9 83.94 54.46 2.5 2.5 3.0 5.6 192 72 6,714 399 36,825 65.4 92.23 60.28 2.5 2.5 3.0 5.6 193 72 6,720 348 31,826 56.2 91.53 51.48 2.5 2.5 3.0 5.6 194 74 6,835 337 29,944 53.5 88.93 47.62 2.5 2.5 3.0 5.6 201 75 6,913 404 34,904 64.9 86.46 56.10 2.5 2.5 3.0 5.6 202 75 6,881 409 38,878 65.4 95.00 62.09 2.5 2.5 3.0 5.6 203 75 6,888 356 33,601 56.2 94.28 53.02 2.5 2.5 3.0 5.6 204 77 7,006 345 31,613 53.5 91.60 49.05 2.5 2.5 3.0 5.6 211 77 7,086 414 36,850 64.9 89.05 57.78 2.5 2.5 3.0 5.6 212 77 7,053 419 41,046 65.4 97.85 63.95 2.5 2.5 3.0 5.6 CGR% 9yrs 3.2% 3.7% 7.3% 0.5% 3.4 % 3.9% '5yrs 3.7% 4.7% 8.6% 1.0% 3.7 % 4.7% HISTORY CGR% Past 9yrs 3.6% 2.3% 3.2% -1.2% 0.9 % -0.4% 4yrs 2.7% 0.2% 0.6% -2.4% 0.4 % -2.1% 1yr 4.4% 1.9% -6.7% -2.4% -8.3 % -10.6% 1. Roomnights sold (derived from est. rate and actu al revenues) 2. Occupancy nights sold divided by nights available for sale. 3. Avg. price for ro omnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per da y (room sales per day)

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7. The local market REVPAR index history has fluctuated widely versus the metro, with a low

point of 61% versus the wider metro market REVPAR recorded in the latest year:

MARKET REVPAR HISTORY

Local/Total Market Year & Total Local Quarter Year Quarter Mkt Area Market Index Index

003 60.15 38.68 64 004 56.76 36.12 64 011 60.46 39.51 65 012 58.35 39.78 68 65 013 46.23 33.12 72 014 39.87 27.01 68 021 45.42 30.84 68 022 51.28 35.31 69 69 023 42.03 31.39 75 024 40.41 27.37 68 031 46.54 30.15 65 032 46.98 33.09 70 69 033 43.00 29.50 69 034 37.36 25.06 67 041 42.57 28.66 67 042 49.15 33.12 67 68 043 46.45 31.26 67 044 42.11 27.72 66 051 51.33 33.87 66 052 57.90 39.67 69 67 053 54.38 37.55 69 054 52.57 35.34 67 061 62.07 40.38 65 062 67.95 48.71 72 68 063 65.85 46.56 71 064 59.36 42.95 72 071 74.05 50.75 69 072 76.58 53.93 70 71 073 71.09 49.11 69 074 64.21 44.47 69 081 75.12 50.64 67 082 79.45 50.98 64 67 083 73.68 47.53 65 084 63.99 39.75 62 091 67.84 38.16 56 092 64.88 41.26 64 62 093 58.94 36.07 61 094 54.41 32.23 59 101 63.84 38.90 61 102 66.52 41.82 63 61 CGR% 9yrs 0.4% -0.4% 4yrs 0.7% -2.1% 2yrs -8.3% -12.6% 1yr -9.9% -10.6%

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8. The REVPAR forecast calls for the local market REVPAR index to rise to a level of 67 in the

early years of our projection:

MARKET REVPAR PROJECTION

Local/Total Mar ket Year & Total Local Quarter Year Quarter Market Market Index Index

103 58.60 38.15 65 104 56.30 35.63 63 111 66.07 42.58 64 112 69.51 46.23 67 65 113 60.65 40.05 66 114 58.27 37.41 64 121 68.05 44.29 65 122 71.59 48.54 68 66 123 62.16 41.45 67 124 59.73 38.72 65 131 69.75 45.84 66 132 73.38 50.48 69 67 133 63.72 43.11 68 134 61.23 40.07 65 141 71.50 47.21 66 142 75.59 52.00 69 67 143 65.63 44.41 68 144 63.06 41.27 65 151 73.64 48.63 66 152 77.85 53.56 69 67 153 67.60 45.74 68 154 64.95 42.31 65 161 75.85 49.84 66 162 80.19 55.16 69 67 163 69.63 47.11 68 164 66.90 43.58 65 171 78.13 51.34 66 172 82.59 56.82 69 67 173 71.72 48.52 68 174 68.91 44.88 65 181 80.47 52.88 66 182 85.07 58.52 69 67 183 73.87 49.98 68 184 70.98 46.23 65 191 82.89 54.46 66 192 87.62 60.28 69 67 193 76.08 51.48 68 194 73.11 47.62 65 201 85.37 56.10 66 202 90.25 62.09 69 67 203 78.37 53.02 68 204 75.30 49.05 65 211 87.93 57.78 66 212 92.96 63.95 69 67 213 80.52 54.48 68 214 77.37 50.39 65 CGR% 9Yrs 2.9% 3.9% First 5Yrs 2.8% 4.7%

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9. A graph of the REVPAR history and projection for the local and metro markets shows

that REVPAR will only return to the levels of recent history by about 2016.

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10. The occupancy projection for the IH-35 market is below the level of much of the past

ten years. Our projection is for the local market to recover to the 60% equilibrium level by

2014:

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11. Graphing the Room Nights Sold history and projection also shows the reasonable

nature of the expectations for the local market, given a normal level of population growth and

investment expected in the area and a national economic recovery:

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PROJECT REVPAR - DEVELOPMENT OF INDICES

Within the above market REVPAR forecast, the expected performance of the proposed

hotel is based on six factors. All six factors are independent and modify the market's projected

REVPAR average to reflect the subject property's particular characteristics.

First, what is the Base Value? It is the effect of the Brand, including specified product quality

levels. Second, what is the effect of the brand's overall Age on its average performance?

Third, what is the effect of the project's Size, or room-count, on results? Fourth, are there any

‘Other’ adjustments needed to account for various factors, including under- or over-supply in

the product's Segment in which the project will compete? Fifth, what is the effect of the normal

Life Cycle patterns on the project (e.g. the effect of the project's Newness compared to older

competition on its unstoppable way to obsolescence)? And sixth, what is the likely influence of

the selected Site on results?

1. The Base Value factor sets property type/brand/product quality for a Holiday Inn

Express at 145%, the average level for Holiday Inn Express in the Exhibit IV hotel

market.9 This valuation is based on the REVPAR performance of the 200 Holiday Express

properties currently operating in the Exhibit IV market. These hotels produced a REVPAR of

$53 in the year ending June 30, 2010, compared to the Exhibit IV market average REVPAR of

$36.46, as follows:

$53/ $36.45 = 1.45 or 145%

This large sample of Texas Holiday Inn Express properties firmly grounds the basic REVPAR

performance that can be expected when operating a Holiday Inn Express hotel in a comparable

market, such as the proposed location. It should be noted that a 'Limited Service' hotel like the

proposed subject offers a higher consumer value than traditional ‘Full Service’ hotels because of

high efficiency and lower operational costs. It operates without the economic losses from

generally unsuccessful hotel Food and Beverage operations and high overhead.

9 The Exhibit IV hotel market here incorporates all T exas hotels except for the Luxury and Upscale Segments. This large market was selected t o closely mimic the local market situation/mix and to provide a wider body of information from whi ch to draw the characteristics of specific brand performance.

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2. The second adjustment factor, Brand Aging, is set at 0.91 (91%), an effective decrease in

performance projections because of the 200 Holiday Express’ inherent newness in the

market. These hotels were built in 2004 on average, and consequently outperformed older

hotels in part due to their average physical age.

This factor adjusts for the effect of the average age of the existing hotels on the brand's current

performance.10 The brand age adjustment, or life-cycle adjustment, for this and other brands

examined includes:

BRAND AGING: TEXAS MARKETS

Average Brand Aging Brand Opening Adjustment Candlewood Suites 2004 .91 Comfort Suites 2004 .91 La Quinta 1999 .99 Best Western 1994 1.07 Days Inn 1986 1.23

3. The property Size factor - reflecting room count - calls for a +2% performance

adjustment for this property, or 102% (1.02). The average Holiday Inn Express hotel in the

Exhibit IV market has 77 rooms, slightly more than the 74 unit subject.

The size factor assigns a premium if the property is smaller than average and a penalty to the

property if it is larger than average. The size adjustment is necessary because demand is not

affected by the number of rental rooms offered, as the individual consumer only needs one room:

customers do not care whether a hotel offers 100, 125 or 150 rooms and their purchasing

behavior will be the same regardless of how many rooms the property offers. Keeping a project

conservatively sized assures a higher per-unit revenue yield, particularly in very competitive

markets like the local area. The highly-positive effect on revenues and return on capital due to

building small, and not 'over-sizing' projects is best explained by the following study, a study

that can be replicated with any brand, in almost any situation. The net effect of building small is

to run higher occupancy and rate, thereby increasing brand REVPAR by building a below-

average number of rental units.

10 Point #5, below, adjusts for the physical life-cycle of the subject property, a different and additional consideration.

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A STUDY OF THE EFFECT OF HOTEL SIZE ON PERFORMANCE

IN THE TEXAS HOTEL INDUSTRY THE CASE FOR DOWNSIZING NEW HOTELS 11

Source Strategies, Inc., has long contended that the number of rooms a developer offers in a new

property is one of the key factors in determining a venture's relative success or failure. It is

every bit as important to size a hotel project properly as it is to select the appropriate brand, and

to have chosen to develop in a suitable market and location.

For the purposes of this study, we analyzed two separate samplings of hotels. We first looked at

Comfort Inns across Texas as a selected brand sampling; then we examined all branded hotels

built during a set period of time for a wider sampling.

1) COMFORT INN - ANALYSIS OF SIZING AND ITS IMPACT ON PERFORMANCE

In our initial analysis, we selected a group [55 properties] of Texas Comfort Inn branded

properties ranging in size from 36 to 75 rooms. The following chart of performance statistics

clearly illustrates the fact that on average, the smaller property will perform better, in terms of

REVPAR and occupancy, than a larger property of the same brand:

12 Months Ending September 30, 1 999 Rooms Occupancy Rate REVP AR 36-40 66.9 55.25 36. 95 41-45 65.3 57.34 37. 45 46-50 66.5 57.38 38. 17 51-55 62.8 56.02 35. 20 56-60 61.8 54.26 33. 55 61-65 56.6 55.33 31. 33 66-70 44.6 45.71 20. 41 71-75 43.8 44.20 19. 38 Combined: 52 63.2 55.46 35. 03

Further, properties with lower room counts were clearly able to sustain a higher level of

occupancy. Average occupancy ranged from 66.9% for properties of 36-40 rooms, downward to

a much lower 43.8% average occupancy for properties in the 71-75 room size bracket.

11 Analyzed and compiled by Douglas W. Sutton and Bruc e H. Walker.

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The above chart and graph clearly illustrate that developers often miss the mark, building more

rooms than 'optimum'. 'Optimum' is defined as generating the highest return on invested capital,

and is closely tied to occupancy and REVPAR. Analyzing the above data provides a measure of

the effect of over-building. For the typical range of rooms for Comfort Inn projects occupancy

dropped 23 points (a full 35%) from 67% to 44% as room counts escalated. The key question is,

'how to apply this principle to a given hotel project.' Naturally, each project would have to be

judged on its individual merits, but looking at an 'average' project for a single brand and product

is very revealing.

BRANDED HOTELS - ANALYSIS OF SIZING AND ITS IMPACT ON

PERFORMANCE

In our second analysis, we looked at a sampling [91 properties] of Texas branded hotels of less

than 135 rooms which were constructed from 1970-1975. For our analysis we examined

performance results from the year 1985 when all subject hotels were 10 to 15 years old, to well

into their aging life cycles. The following table of performance statistics from 1985 for branded

properties throughout Texas clearly illustrates the downward curve, with a pronounced and

methodical erosion of performance as room counts increased:

# of Hotels Rooms Occupancy Rate REVPAR 2 00-44 70.0 37.88 26.50 3 45-59 73.9 36.13 26.71 7 60-74 66.8 31.10 20.77 14 75-89 62.7 31.65 19.86 29 90-104 60.9 32.42 19.75 16 105-119 57.8 26.25 15.18 20 120-134 55.5 29.35 16.28 Combined: 91 98 59.8 30.34 18.14

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The following graph provides a clear picture of descending performance as room counts

increase. Average occupancy ranged from 70% for properties of 44 rooms or less, downward to

a much lower 55.5% average occupancy for properties in the 120-134 size bracket, after peaking

at 73.9% in the 45-59 size range.

The data is clear: in almost every case small hotels outperform larger ones. Common sense

explains this occurrence: a successful 100 room hotel will inevitably prompt the development of

one or more new, small hotels of similar quality in the immediate area. In a competitive market

environment, the smaller hotel has a distinct advantage and wins - almost every time. The fact

remains that if one builds a smaller than average property for a given brand, results should be

improved over the average: the converse of this fact is also true.

4. Fourth, the Segment or Other adjustment factor is set at 105% (1.05), or above average,

due to the inclusion of mini-suites in the project. Mini-suites average about 400 square feet,

compared to the industry standard room size of 324 square feet (the average for a Holiday Inn

sized room bay). The mini-suite rooms in the subject property will be a very strong attraction to

travelers looking for comfort and value in their hotel.

The attractiveness of the extra space in suite and mini-suite product offers consumers greater

value and comfort. The family appreciates the higher 'sleeping' capacity of a suite unit and its

inherent economy, including a free breakfast. With microwave kitchen facilities, coffeemaker

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and a small refrigerator, preparation of both snacks and dinners is an option, creating extra value

and convenience.

All this is an equally valuable asset to the business traveler. The dual attraction of mini-suite

hotels to both leisure and business travelers is what keeps the occupancy high on both weekends

and weekdays; it is the most appropriate product type of all to build in today's lodging market,

especially where high-priced demand is strong.

5. Fifth, the Aging Adjustment factor reflects the standard hotel life cycle: 92% (-8%) in

Year I; 107% for Year II; 112% for Years III thro ugh V; followed by a 1.67% annual

decline in the REVPAR index starting in Year VI. The aging factor also mirrors extensive

studies of hotel life-cycles conducted by Source Strategies, Inc.'s principal, Bruce Walker, when

heading the Holiday Inn Corporation's strategic planning department (1979-83).

It also reflects recent research on the life cycles of 25,000 Texas hotel rooms, developed from

1980 through 1982, and then again in 1990 through 1992, with each group's performance versus

the market tracked to the present (MarketShare newsletter, "The Hotel Life Cycle - It's Very

Real" published September 1994).

6. The last factor, Site, is set at 1.15 (115%), or above average for the local market. The site

values for this property, as well as for nearby existing competitors have been developed by

quantifying the influence site has had on their performance. Applying known adjustment factors

to existing properties, except for a site factor, lets us solve for the site value itself. Source

Strategies' site methodology 'backs into' the value of the site by matching actual performance

against known factors, using the site factor as the 'plugged number.'

The differences between the closest key competitors appear to be both explainable and

reasonable. The site value is 'plugged' so that projected REVPAR versus market approaches the

actual REVPAR over the past 12 months. Overall, current performances would indicate that

a 115% site value for the Holiday Express would be a responsible estimate with the

addition of new supply pressure in the market:

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SITE & PROPERTY DERIVATION

Days/ Comfort La Quality G-town Data in 2010 $ Suites Quinta Inn Inn Base: Name & Quality 1.12 1.05 .71 .61 x Brand Age Adjustment .91 1.09 1.23 1.23 x Site Value Adjustment 1.27 1.22 1.25 1.22 x Size Adjustment 1.00 1.00 1.17 1.07 x Other Adjustments 1.25 1.00 .90 .75 x Newness Adjustment 1.12 .80 .79 .68 = Performance Factor 181% 112% 91 % 50% x Market REVPAR $37.25 $37.25 $37.25 $37.25 = Projected Performance $67.50 $41.61 $33.83 $18.61 Actual Yr End 2nd 10 $67.54 $41.73 $33.94 $18.66 Index (Proj. Vs Actual) 100 100 100 100 Units in Above Subject 69 99 54 55 Average Units 68 99 81 67 Size Adjustment (33%) 0 0 17 7 Year Built 2006 1985 1984 1975

Combining all six factors that affect a hotel's REVPAR performance, we calculate that the

proposed hotel's REVPAR will achieve 182% of the market average REVPAR in Years III-

V, declining slowly thereafter:

Holiday Inn Express Georgetown Data in 2010 $ Year I Year II Year III Base: Name & Quality 1.45 1.45 1.45 x Brand Age Adjustment .91 .91 .91 x Site Value Adjustment 1.15 1.15 1.15 x Size Adjustment 1.02 1.02 1.02 x Other Adjustments 1.05 1.05 1.05 x Newness Adjustment .92 1.07 1.12 = Performance Factor 150% 174% 182 % x Market REVPAR $37.25 $37.25 $37.25 = Projected Performance $55.69 $64.77 $67.80

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COMBINING THE ABOVE MARKET REVPAR PROJECTION AND TH E HOTEL'S REVPAR INDEX TO DEVELOP REVENUES, OCCUPANCY, AND RA TE Using the projected Year III REVPAR index of 182%, the above process generates a

theoretical REVPAR of $67.80 (in latest year market dollars). This is the result of the Year

III performance index of 182% (1.82) multiplied by the current market average REVPAR of

$37.25.

Therefore, if the property were open today and were in its third year of operation, it should

theoretically be operating at the following level against the latest year's market results: a

$67.80 REVPAR computes to gross room revenues of approximately $1,831,278 ($67.80 times

74 units times 365 days). Please note that the actual effect on the market due to the introduction

of this project and other new hotels is fully reflected in subsequent pro forma market projections

and financials.

In the latest year's dollars, this projection for the project's Year III revenue breaks down

seasonally as follows:

Quarter Fourth First Second Third Year III Room Revenues $401,481 $464,966 $517,782 $447,048 $1,831,278 % of Year 21.9% 25.4% 28.3% 24.4% 100 Seasonal Index 87 103 113 97 100 REVPAR$ $58.97 $69.81 $76.89 $65.67 $67.80

Source Strategies, Inc.'s projections of a reasonable rate and occupancy mix, a split of the

Holiday Inn Express Hotel & Suites' REVPAR for occupancy and rate, in latest year dollars,

would be as follows:

Quarter Fourth First Second Third Year III ADR - $ $81.85 $95.96 $105.10 $89.65 $93.13 Occupancy % 72.0% 72.8% 73.2% 73.2% 72.8% REVPAR$ $58.97 $69.81 $76.89 $65.67 $67.80

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Tests For REASONABILITY

Comparisons can be made to assess the reasonable nature of the above market and subject projections:

1. Individual property projections depend importantly on the projection of local market

REVPAR - forecast to rise at a reasonable, conservative rate through 2020, starting at the

current, highly-depressed level. Over the next nine years market REVPAR is projected to

grow 3.9% per year (versus the 0.4% annual REVPAR decrease of the past nine years).

REVPAR encompasses the net effects of supply and demand. Over the next nine years, we are

comfortable with the 3.7% real compound growth projected for the local market, higher than the

projected net supply growth of 3.2% annually, and resulting in the return to the expected

equilibrium occupancy level of 60% in the early years of our projection.

2. The derived Base Value of 1.45 (145%) for a Holiday Inn Express in the Exhibit IV

market area is reasonable when compared to the Base Values of other hotels in these same

markets. The hierarchy of REVPAR indices for selected brands is shown below:

REVPAR Index Comparison 12

Residence Inn 201 Hampton Inn 165 Courtyard by Marriott 164 Holiday Express 145 Comfort Suites 112 Candlewood Suites 108 La Quinta Inn 105 Best Western 99 Comfort Inn 92 Quality Inn 71 Super 8 70 Motel 6 65 Days Inn 64

3. Developing actual adjustment factors for the existing properties - so that their projected

REVPAR equals actual REVPAR - indicates why the REVPAR index projection has a high

probability of being achieved. The REVPAR differences between the closest key competitors

appear to be both explainable and reasonable, using the standard, Source Strategies' adjustment

12 Unadjusted for physical aging of each brand.

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factor quantification. For each property, revenues are driven first by chain name affiliation and

product type, and are further adjusted for size, segment, hotel age and site location. The

REVPAR Index is then multiplied by the actual local area market average to generate dollar

REVPAR. We also include the theoretical Year III performance of the subject hotel, as follows:

REVPAR COMPARISON Holiday Days/ Express Comfort La Quality G-town Data in 2010 $ Yr III Suites Quinta Inn Inn Base: Name & Quality 1.45 1.12 1.05 .71 .61 x Brand Age Adjustment .91 .91 1.09 1.23 1.23 x Site Value Adjustment 1.15 1.27 1.22 1.25 1.22 x Size Adjustment 1.02 1.00 1.00 1.17 1.07 x Other Adjustments 1.05 1.25 1.00 .90 .75 x Newness Adjustment 1.12 1.12 .80 .79 .68 = Performance Factor 182% 181% 112 % 91% 50% x Market REVPAR $37.25 37.25 37.25 37.25 37.25 = Projected Performance $67.80 67.50 41.61 33.83 18.61 Actual Past Year n/a 67.54 41.73 33.94 18.66 Index (Proj. Vs. Actual n/a 100 100 100 100

4. The projected REVPAR performance of the Holiday Inn Express Hotel & Suites versus

the local market average reflects the fact that this hotel’s physical quality will be

reasonably high, and will carry a popular brand name in a strong location.

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5. The graphically projected Occupancy performance of the Holiday Inn Express versus

the local market average reflects the fact that this hotel will be well above the overall

market average because of its brand, its product offering, its location, and its age. The

Holiday Express Occupancy gradually declines toward the market average after several years.

6. In the overall market, any new hotel will have an inordinate advantage over the old; the

playing field here is not level as the lodging consumer almost always votes for 'new' versus

old. From Holiday Inn consumer research, 'new' means 'clean,' and 'old' means 'dirty' to the

consumer. Cleanliness is the number one consumer selection factor in lodging.

The average hotel room in the local market is 15 years old, about half of the way through its life

cycle, and past its peak performing years. The typical hotel building becomes stylistically and

structurally obsolete after 30 years. Of the 52 hotels in the local market, 14 were built before

1986, and 21 were built since 2000. There is typically a wide and dramatic gap between the

performance of new and older properties, with the typical hotel in the area either being relatively

new and competitive, or older and on its way to closure.

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I-35 CORRIDOR MARKET PROPERTIES Year # Open Rooms Local Hotel

2009 121 VALUE PLACE - AUSTIN BRAKER 2009 145 COURTYARD AUSTIN NORTH PARK 2009 150 FAIRFIELD INN AND SUITES 2009 64 COMFORT SUITES 2008 117 HILTON GARDEN INN-AUSTIN 2008 121 VALUE PLACE HOTEL 2007 22 BUDGET INN 2006 69 COMFORT SUITES 2005 16 ECONOMY INN 2004 121 INTOWN SUITES 2003 104 EXTENDED STAY AMERICA 6197 C H 2003 61 COUNTRY INN & SUITES 2002 132 SPRINGHILL SUITES 2002 98 CANDLEWOOD SUITES 2002 91 HOLIDAY I & S FMR AMERISUITES 2001 93 HAMPTON INN ROUND ROCK 2001 295 MARRIOTT LA FRONTERA 2001 81 STAYBRIDGE SUITES 2000 88 RESIDENCE INN-AUSTIN NORT 2000 104 SPRINGHILL SUITES BY MARRIOTT 2000 63 COMFORT SUITES 1999 84 HOLIDAY EXPRESS FMR QUALITY S T 1999 101 HOLIDAY EXPRESS FMR WINGATE 3 / 1999 79 HOLIDAY EXPRESS STI L 1999 100 WINGATE INN 1999 96 RESIDENCE INN - ROUND ROC 1999 122 HILTON GARDEN INN 1998 86 LA QUINTA INN FMR BAYMT CHG R O 1998 118 EXTENDED STAY DELUXE FMR WELL E 1998 138 EXTENDED STAY AMERICA FMR CRO S 1998 113 COURTYARD BY MARRIOTT 1997 68 BEST WESTERN EXECUTIVE IN 1997 49 DAYS INN INN & SUITES FMR ROD E 1996 123 SUPER 8 FMR TRAVELERS 1996 107 RED ROOF INN #302 FMR SLEEP 1987 117 BEST WESTERN ATRIUM NORTH 1986 156 RAMADA LTD FMR HOJO/RALTD/HER I 1986 116 LA QUINTA INN #905 1985 99 LA QUINTA INN #926 1984 46 AUSTIN MOTOR INN 1984 54 QUALITY INN FMR COMFORT INN 1983 33 AUSTIN VILLAGE MOTOR INN FMR R 1983 150 BUDGET MOTEL FMR HOMESTYLE IN N 1982 143 RED ROOF INN #210 N 1981 111 MOTEL 6 #1344 1981 141 AUSTIN SUITES FMR TRAVL 3/09 N 1980 156 MOTEL 6 #360 1979 15 SAN GABRIEL MOTEL 1975 55 DAY'S INN-GEORGETOWN 1973 18 WALNUT FOREST MOTEL POOJA BU S 1971 120 BUDGET INN 1967 188 HOW JOHNSON PLAZA FMR 4PTS 3/ 0

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PRO FORMA: Applying the project derivation factor (182% Year III-V) to the quarterly

local market REVPAR forecast results in the following progression:

PROJECT REVPAR PROJECTION

Subject/ Year & Local Subject Market Inde x Quarter Market Hotel Qtr Year

104 35.63 53.44 150 111 42.58 63.88 150 112 46.23 69.35 150 113 40.05 60.08 150 150 114 37.41 65.09 174 121 44.29 77.06 174 122 48.54 84.46 174 123 41.45 72.13 174 174 124 38.72 70.47 182 131 45.84 83.42 182 132 50.48 91.88 182 133 43.11 78.47 182 182 134 40.07 72.93 182 141 47.21 85.92 182 142 52.00 94.63 182 143 44.41 80.82 182 182 144 41.27 75.12 182 151 48.63 88.50 182 152 53.56 97.47 182 153 45.74 83.24 182 182 154 42.31 75.71 179 161 49.84 89.20 179 162 55.16 98.72 179 163 47.11 84.31 179 179 164 43.58 76.68 176 171 51.34 90.34 176 172 56.82 99.98 176 173 48.52 85.38 176 176 174 44.88 77.66 173 181 52.88 91.50 173 182 58.52 101.26 173 183 49.98 86.48 173 173 184 46.23 78.66 170 191 54.46 92.67 170 192 60.28 102.56 170 193 51.48 87.58 170 170 194 47.62 79.66 167 201 56.10 93.85 167 202 62.09 103.87 167 203 53.02 88.71 167 167 204 49.05 80.68 165 211 57.78 95.05 165 212 63.95 105.20 165 213 54.48 89.62 165 165 214 50.39 81.52 162 221 59.37 96.04 162 CGR% 9 Yrs 3.2% 4.5% “ First 5 Yrs 3.4% 7.1%

-CGR% measured from open date-

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This REVPAR forecast is then extended to room revenues - multiplying REVPAR by the

number of days in each quarter and by the number of rooms in the project - and to

occupancy, estimated rate and to roomnights sold:

RESULTING PROJECTION: Holiday Inn Express Hotel & Suites

Resulting Aver. Room- Year& Room Annual % Daily nghts Annual Basis Quarter Revenues Basis Occ Rate Sold RMNTES Occ . Rate 104 $363,831 59.4 $90.00 4, 043 111 $425,413 60.8 $105.00 4, 052 112 $466,970 60.3 $115.00 4, 061 113 $409,020 $1,665,234 60.1 $100.00 4, 090 16,245 60.1% $102.51 114 $443,146 68.9 $94.50 4, 689 121 $513,219 69.9 $110.25 4, 655 122 $568,769 69.9 $120.75 4, 710 123 $491,069 $2,016,203 69.4 $104.00 4, 722 18,777 69.5% $107.38 124 $479,744 71.7 $98.28 4, 881 131 $555,604 72.8 $114.66 4, 846 132 $618,716 73.2 $125.58 4, 927 133 $534,193 $2,188,257 73.3 $107.12 4, 987 19,641 72.7% $111.41 134 $496,535 72.0 $101.23 4, 905 141 $572,258 72.8 $118.10 4, 846 142 $637,262 73.2 $129.35 4, 927 143 $550,206 $2,256,262 73.2 $110.33 4, 987 19,664 72.8% $114.74 144 $511,419 72.0 $104.27 4, 905 151 $589,412 72.8 $121.64 4, 845 152 $656,365 73.2 $133.23 4, 927 153 $566,699 $2,323,895 73.2 $113.64 4, 987 19,664 72.8% $118.18 154 $515,450 70.5 $107.39 4, 800 161 $594,058 71.2 $125.29 4, 741 162 $664,766 71.9 $137.22 4, 844 163 $573,952 $2,348,226 72.0 $117.05 4, 903 19,289 71.4% $121.74 164 $522,048 69.3 $110.62 4, 719 171 $601,661 70.0 $129.05 4, 662 172 $673,274 70.7 $141.34 4, 763 173 $581,298 $2,378,281 70.8 $120.56 4, 821 18,967 70.2% $125.39 174 $528,729 68.2 $113.93 4, 641 181 $609,362 68.8 $132.92 4, 584 182 $681,891 69.6 $145.58 4, 684 183 $588,738 $2,408,721 69.6 $124.18 4, 741 18,650 69.0% $129.15 184 $535,496 67.0 $117.35 4, 563 191 $617,161 67.7 $136.91 4, 508 192 $690,619 68.4 $149.95 4, 606 193 $596,273 $2,439,550 68.5 $127.91 4, 662 18,338 67.9% $133.03 194 $542,350 65.9 $120.87 4, 487 201 $625,060 66.6 $141.02 4, 433 202 $699,458 67.3 $154.45 4, 529 203 $603,905 $2,470,774 67.3 $131.74 4, 584 18,032 66.8% $137.02 204 $549,292 64.8 $124.50 4, 412 211 $633,061 65.4 $145.25 4, 358 212 $708,410 66.1 $159.08 4, 453 213 $610,150 $2,500,912 66.0 $135.70 4, 496 17,720 65.6% $141.13 214 $554,972 63.6 $128.23 4, 328 221 $639,607 64.2 $149.61 4, 275 222 $715,736 64.9 $163.85 4, 368 223 $616,459 $2,526,774 64.8 $139.77 4, 411 17,382 64.4% $145.37 224 $560,711 62.4 $132.08 4, 245 231 $646,221 63.0 $154.09 4, 194 232 $723,137 63.6 $168.77 4, 285 233 $622,834 $2,552,903 63.5 $143.96 4, 326 17,050 63.1% $149.73 CGR%9Yr 4.5% 1.2% 3.3% 1.2% First5Y 7.1% 3.5% 3.5% 3.5%

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OPERATING COSTS13

Profitability and returns reflect the above revenue projections and the following other critical

assumptions: operating costs per occupied room approximate Limited Service hotels of similar

size, rate, and occupancy and include appropriate fixed, semi-fixed and variable costs (Smith

Travel Research's 2009 Host Report for year 2008 data, and Source Strategies, Inc.).

Estimates of operating costs take into account the lower costs of the West South Central United

States, which had an average Per Occupied Room Cost of $43.51 (including 5% royalties) in

2008 in Limited Service hotels - versus a national average of $53.72 - or 81% of the U.S.

average. The following cost comparisons have all been adjusted to reflect this 19% lower-cost

environment that may be expected in operating a hotel in the West South Central Region.

Rooms only Operating Costs per Occupied Room (before Fixed Charges) are estimated at $43.00

For Year I ($698,568 divided by 16,246 roomnights sold); $43.92 for Year II ($824,746 divided

by 18,777), and $45.18 for Year III ($887,440 divided by 19,641). These numbers compare to

industry-wide data as follows:

a) $52.54 in the Host Report for Upscale hotels in 2008 (average rate of $126.29), adjusted to Southwest. This POR cost translates to $59.13 when inflated to Year 2012 dollars. b) $48.32 in the Host Report for Larger hotels (125+ rooms) in 2008 (average rate of $117.17), adjusted to Southwest. This POR cost translates to $54.38 when inflated to Year 2012 dollars. c) $35.66 in the Host Report for Suburban hotels in 2008 (average rate of $89.48), adjusted to Southwest. This POR cost translates to $40.14 when inflated to Year 2012 dollars. d) $34.98 in the Host Report for Mid-Priced hotels in 2008 (average rate of $84.99), adjusted to Southwest. This POR cost translates to $39.38 when inflated to Year 2012 dollars. - Versus room revenues: a necessary marketing expense of 7% in Year I and thereafter.

Marketing includes reservation and advertising fees, sales expense, local advertising and the

always important outdoor billboards. An annual royalty fee of 6% has been applied, and no

annual management fee has been charged.

13 The calculation of the statistic of Operating Costs Per Occupied Room (before fixed/capital costs are deducted) is typically the important cost to examine carefully because it is highly stable and predictable, regardless of occupancy and rate. Looking at costs on a percentage basis can be highly misleading because of the high variability in average room revenues.

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A reserve for renovations is taken and subtracted from projected cash flows annually; such

renovation reserves amount to $1,132,822 in the first ten years ($15,308 per unit). Reserves

insure that future revenue streams continue by maintaining product quality at excellent levels as

required by the franchisor. Reserves are based on an extensive 2001 study, CapEx, by the

International Society of Hospitality Consultants. The study shows that required reserves average

5.5% over a 20 year period.

- Total capital of $5,600,000 is allocated for the development of the project. The estimated turn-

key cost of $64,865 per unit is below average for the development of a hotel of this size and

quality, in our experience. Land is valued at $800,000. Should capital needs prove to be greater,

then returns would change proportionately. The developer’s estimates of necessary capital

include:

Investment Est. Land Investment $ 800,000 for 2 acres

Improvements $ 4,800,000 @$64,865 per unit Total Investment $ 5,600,000

The pro forma profit and cash flow statements are shown overleaf:

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open Oct 1, 2010 Holiday Inn Express Georgetown Land Value: 800,000 # Rooms: 74 Investment per room excluding land : $64,865

QUARTER: Fourth First Second Third Year Rmnites Sold 4,043 4,052 4,061 4,090 16,246 Rmnites Avail 6,808 6,660 6,734 6,808 27,010 Occupancy % 59.4% 60.8% 60.3% 60.1% 60.1% Avg Rate $90.00 $105.00 $115.00 $100.00 $102.51 REVPAR $53.45 $63.88 $69.35 $60.74 $61.66 % Revenues Room Revenues $363,870 $425,460 $467,015 $409,000 1,665,345 96.2% Other 14,555 17,018 18,681 16,360 66,614 3.8% Total Sales $378,425 $442,478 $485,696 $425,360 $1,731,959 100.0% Operating Expense Administration 15,137 17,699 19,428 17,014 69,278 4.0% Housekeeping 15,161 15,195 15,229 15,338 60,923 3.5% Laundry 6,065 6,078 6,092 6,135 24,369 1.4% Front Desk 16,172 16,208 16,244 16,360 64,984 3.8% Miscellaneous 7,568 8,850 9,714 8,507 34,639 2.0% Taxes/Benefits 7,212 7,684 8,005 7,602 30,503 1.8% Total Payroll 67,316 71,713 74,711 70,957 284,696 16.4% -Room Expense S:Linen & Laundry 6,065 6,078 6,092 6,135 24,369 1.4% Comp. F & B 8,086 8,104 8,122 8,180 32,492 1.9% Total Room 14,151 14,182 14,214 14,315 56,861 3.3% -Other Expense Phone Lines 2,031 2,031 2,031 2,031 8,123 0.5% Elec/Utility 18,194 18,234 18,275 18,405 73,107 4.2% Maint. & Repair 5,676 6,637 7,285 6,380 25,979 1.5% Total Other 25,901 26,902 27,591 26,816 107,209 6.2% -Gen & Admin Marketing & Adver 25,471 29,782 32,691 28,630 116,574 6.7% Franchise Fee 21,832 25,528 28,021 24,540 99,921 5.8% Credit Card 7,277 8,509 9,340 8,180 33,307 1.9% Tot Admin & Gen 54,581 63,819 70,052 61,350 249,802 14.4% -Total Op Expense 161,947 176,616 186,567 173,438 698,568 40.3% Gross Op Profit 216,478 265,862 299,128 251,922 1,033,390 59.7% -Fixed Charges Insurance 12,990 12,990 12,990 12,990 51,959 3.0% Property Tax 15,137 17,699 19,428 17,014 69,278 4.0% Deprec SL 39 Yrs. 30,769 30,769 30,769 30,769 123,077 7.1% Tot Capital Expen 58,896 61,458 63,187 60,773 244,314 14.1% Net Income Before 157,582 204,404 235,942 191,149 789,076 45.6% Tax & Financing Depreciat. AddBac 30,769 30,769 30,769 30,769 123,077 7.1% Renovation Reserv (15,137) (17,699) (19,428) (17,014) (69,278) -4.0% Cash Flow Before 173,214 217,474 247,283 204,904 842,875 48.7% Tax & Financing

-see following 2 pages for the next 9 years-

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Holiday Inn Express Georgetown Compound # Rooms: 74 Growth Year 2 3 4 5 6 7 8 9 10 Yr 2-10 Rmnites Sold 18,777 19,641 19,664 19, 664 19,289 18,967 18,650 18,338 18,0 32 1.2% Rmnites Avail 27,010 27,010 27,010 27, 010 27,010 27,010 27,010 27,010 27,0 10 0.0% Occupancy % 69.5% 72.7% 72.8% 7 2.8% 71.4% 70.2% 69.0% 67.9% 66 .8% 1.2% Avg Rate* $107.38 $111.41 $114.74 $118 .18 $121.74 $125.39 $129.15 $133.03 $137. 02 3.3% REVPAR $74.65 $81.02 $83.53 $86 .04 $86.94 $88.05 $89.18 $90.32 $91. 48 4.5% RoomRevenues 2,016,203 2,188,257 2,256,262 2,323, 895 2,348,226 2,378,281 2,408,721 2,439,550 2,470,7 74 4.5% Other 80,648 87,530 90,250 92, 956 93,929 95,131 96,349 97,582 98,8 31 4.5% Total Revenues 2,096,851 2,275,787 2,346,512 2,416, 851 2,442,155 2,473,412 2,505,070 2,537,132 2,569,6 05 4.5% Operating Expense - Payroll Administration 71,357 73,497 75,702 77, 973 80,313 82,722 85,204 87,760 90,3 93 3.0% Housekeeping 72,526 78,139 80,578 82, 995 83,855 84,928 86,014 87,113 88,2 29 4.2% Laundry 29,010 31,256 32,231 33, 198 33,542 33,971 34,406 34,845 35,2 92 4.2% Front Desk 77,361 83,349 85,950 88, 528 89,445 90,590 91,749 92,920 94,1 11 4.2% Miscellaneous 41,237 44,428 45,815 47, 189 47,678 48,288 48,906 49,530 50,1 65 4.2% Taxes/Benefits 34,979 37,280 38,433 39, 586 40,180 40,860 41,553 42,260 42,9 83 3.9% Total Payroll 326,470 347,949 358,708 369, 470 375,012 381,361 387,831 394,428 401,1 71 3.9% -Room Expense Linen & Laundry 29,010 31,256 32,231 33, 198 33,542 33,971 34,406 34,845 35,2 92 4.2% Comp. F & B 38,681 41,674 42,975 44, 264 44,722 45,295 45,874 46,460 47,0 55 4.2% Total Room 67,691 72,930 75,206 77, 462 78,264 79,267 80,280 81,305 82,3 47 4.2% -Other Expense Phone Lines 9,670 10,419 10,744 11, 066 11,181 11,324 11,469 11,615 11,7 64 4.2% Electric 87,031 93,767 96,693 99, 594 100,626 101,914 103,217 104,535 105,8 75 4.2% Repairs & Maint 31,453 34,137 35,198 36, 253 36,632 37,101 37,576 38,057 38,5 44 4.5% Total Other 128,154 138,322 142,635 146, 913 148,439 150,339 152,262 154,207 156,1 82 4.3% -Gen & Admin Marketing & Adv 141,134 153,178 157,938 162, 673 164,376 166,480 168,610 170,769 172,9 54 4.5% Franchise Fee 120,972 131,295 135,376 139, 434 140,894 142,697 144,523 146,373 148,2 46 4.5% Credit Card 40,324 43,765 45,125 46, 478 46,965 47,566 48,174 48,791 49,4 15 4.5% Total G & A 302,430 328,239 338,439 348, 584 352,234 356,742 361,308 365,933 370,6 16 4.5% -TotOperExp. 824,746 887,440 914,988 942, 429 953,949 967,709 981,681 995,873 1,010,3 16 4.2% GrossOpProfit 1,272,105 1,388,347 1,431,524 1,474, 422 1,488,207 1,505,704 1,523,388 1,541,259 1,559,2 89 4.7%

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Holiday Inn Express Georgetown Compound # Rooms: 74 Growth Year 2 3 4 5 6 7 8 9 10 Yr 2-10 Rmnites Sold 18,777 19,641 19,664 19, 664 19,289 18,967 18,650 18,338 18,0 32 1.2% Rmnites Avail 27,010 27,010 27,010 27, 010 27,010 27,010 27,010 27,010 27,0 10 0.0% Occupancy % 69.5% 72.7% 72.8% 7 2.8% 71.4% 70.2% 69.0% 67.9% 66 .8% 1.2% Avg Rate* $107.38 $111.41 $114.74 $118 .18 $121.74 $125.39 $129.15 $133.03 $137. 02 3.3% REVPAR $74.65 $81.02 $83.53 $86 .04 $86.94 $88.05 $89.18 $90.32 $91. 48 4.5% RoomRevenues 2,016,203 2,188,257 2,256,262 2,323, 895 2,348,226 2,378,281 2,408,721 2,439,550 2,470,7 74 4.5% Other 80,648 87,530 90,250 92, 956 93,929 95,131 96,349 97,582 98,8 31 4.5% Total Revenues 2,096,851 2,275,787 2,346,512 2,416, 851 2,442,155 2,473,412 2,505,070 2,537,132 2,569,6 05 4.5% Income BefFixe 1,272,105 1,388,347 1,431,524 1,474, 422 1,488,207 1,505,704 1,523,388 1,541,259 1,559,2 89 4.7% -Fixed Charges Insurance 62,906 68,274 70,395 72, 506 73,265 74,202 75,152 76,114 77,0 88 4.5% Land Lease ERR Property Tax 83,874 91,031 93,860 96, 674 97,686 98,936 100,203 101,485 102,7 84 4.5% Depr. SL 39 Yrs 123,077 123,077 123,077 123, 077 123,077 123,077 123,077 123,077 123,0 77 0.0% Total Fixed Ch. 269,857 282,382 287,333 292, 256 294,028 296,216 298,432 300,676 302,9 49 2.4% Income Before 1,002,248 1,105,965 1,144,192 1,182,166 1,194,179 1 ,209,488 1,224,957 1,240,583 1,256,339 5.3% Tax & Financing Depr. AddBack 123,077 123,077 123,077 123, 077 123,077 123,077 123,077 123,077 123,0 77 0.0% RenovReserve (52,421) (54,619) (56,316) (103, 925) (146,529) (106,357) (77,657) (152,228) (313,4 92) 18.3% Cash Before 1,072,904 1,174,423 1,210,952 1,201, 318 1,170,726 1,226,208 1,270,376 1,211,432 1,065,9 24 2.6% Tax & Financing

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October 11, 2010

OPINION

This report is based on independent opinion, survey s and research from

sources considered reliable. No representation is made as to accuracy

or completeness and no contingent liability of any kind can be

accepted.

The study projections are dependent on the develope r building and

operating the hotel as a ‘Holiday Inn Express Hotel & Suites’,

including certain amenities, and spending the appro priate operating

funds necessary to generate projected revenues, mos t especially

budgeted funds for aforementioned amenities and for marketing,

including a listing in the American Automobile Asso ciation Texas

Tourbook.

It is our opinion that this report fairly and conse rvatively represents

the room revenues, profitability and return on inve stment performance

that can be achieved by developing and operating a 74 unit Holiday Inn

Express Hotel & Suites at the aforementioned site i n Georgetown, Texas.

Please contact us with any questions at (210) 734-3 434.

Respectfully submitted,

Douglas W. Sutton, Bruce H. Walker, Executive Vice President President

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EXHIBITS :

I Metro & Local Market History, Aggregated Basi s: II Local Market: By Segment and Brand, Past Fiv e Years, Annual Basis III Individual Hotel/Motel Histories For Local Market IV Texas Excluding and Luxury & Upscale Segments V The Case For Downsizing Hotels VI Start-up Performance of New Hotels VII CAPEX Study of Capital Expenditures VIII 2 nd Quarter 2010 Texas Hotel Report IX Preparer Qualifications and Client List X Source Strategies Database Methodology XI Hotel Brand Report Newsletter

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EXHIBIT I HOTEL MARKET: AUSTIN METRO A REA # Rnights $ Rooms Hotels # sold 1 Revenu es % $ $ YRQ Motels Rooms (000s) (000 s) OCC2 Rate3 RPAR4 --- ------ ------ ------- -------- -- ---- ----- ----- 001 204 20,146 1,216.4 105,7 47 67.1 86.93 58.32 002 207 20,544 1,291.4 120,8 91 69.1 93.61 64.66 003 208 20,871 1,277.2 115,5 00 66.5 90.44 60.15 004 208 21,137 1,243.0 110,3 84 63.9 88.81 56.76 *TOTAL 2000 5,028.0 452,5 22 66.6 90.00 59.96 011 210 21,570 1,315.1 117,3 75 67.7 89.25 60.46 012 219 22,223 1,290.5 117,9 95 63.8 91.44 58.35 013 225 22,634 1,143.8 96,2 60 54.9 84.16 46.23 014 223 22,867 1,087.4 83,8 87 51.7 77.15 39.87 *TOTAL 2001 4,836.7 415,5 17 59.3 85.91 50.99 021 228 23,046 1,142.6 94,1 98 55.1 82.44 45.42 022 236 23,593 1,256.2 110,0 95 58.5 87.64 51.28 023 237 23,785 1,097.7 91,9 66 50.2 83.78 42.03 024 234 23,918 1,136.6 88,9 13 51.7 78.23 40.41 *TOTAL 2002 4,633.1 385,1 72 53.8 83.14 44.74 031 236 24,130 1,230.0 101,0 80 56.6 82.18 46.54 032 242 24,288 1,244.4 103,8 30 56.3 83.44 46.98 033 244 24,452 1,183.8 96,7 21 52.6 81.71 43.00 034 243 24,531 1,081.9 84,3 27 47.9 77.94 37.36 *TOTAL 2003 4,740.1 385,9 57 53.3 81.42 43.42 041 245 25,418 1,247.4 97,3 86 54.5 78.07 42.57 042 251 25,601 1,409.0 114,5 00 60.5 81.26 49.15 043 252 25,602 1,315.4 109,4 09 55.8 83.18 46.45 044 246 25,302 1,242.1 98,0 18 53.4 78.91 42.11 *TOTAL 2004 5,213.9 419,3 13 56.1 80.42 45.09 051 243 25,084 1,413.0 115,8 72 62.6 82.00 51.33 052 249 25,170 1,494.3 132,6 08 65.2 88.74 57.90 053 247 25,105 1,404.9 125,6 02 60.8 89.40 54.38 054 244 24,890 1,424.7 120,3 68 62.2 84.49 52.57 *TOTAL 2005 5,736.9 494,4 50 62.7 86.19 54.05 061 244 24,887 1,551.0 139,0 23 69.2 89.64 62.07 062 251 25,189 1,543.5 155,7 62 67.3 100.92 67.95 063 257 25,763 1,585.4 156,0 78 66.9 98.45 65.85 064 252 25,875 1,505.6 141,3 12 63.2 93.86 59.36 *TOTAL 2006 6,185.5 592,1 74 66.6 95.74 63.79 071 248 25,774 1,702.4 171,7 64 73.4 100.89 74.05 072 258 25,904 1,642.8 180,5 21 69.7 109.89 76.58 073 259 26,065 1,607.8 170,4 67 67.0 106.03 71.09 074 251 25,922 1,527.3 153,1 32 64.0 100.26 64.21 *TOTAL 2007 6,480.2 675,8 85 68.5 104.30 71.45

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HOTEL MARKET: AUSTIN METRO A REA # Rnights $ Rooms Hotels # sold 1 Revenu es % $ $ YRQ Motels Rooms (000s) (000 s) OCC2 Rate3 RPAR4 --- ------ ------ ------- -------- -- ---- ----- ----- 081 253 25,935 1,648.8 175,3 41 70.6 106.34 75.12 082 269 26,343 1,656.5 190,4 61 69.1 114.98 79.45 083 267 26,661 1,591.6 180,7 30 64.9 113.55 73.68 084 258 26,522 1,477.3 156,1 31 60.5 105.69 63.99 *TOTAL 2008 6,374.2 702,6 61 66.2 110.24 73.01 091 255 26,821 1,568.8 163,7 51 65.0 104.38 67.84 092 273 27,455 1,543.8 162,0 95 61.8 105.00 64.88 093 268 27,317 1,440.0 148,1 20 57.3 102.86 58.94 094 268 27,572 1,402.9 138,0 12 55.3 98.38 54.41 *TOTAL 2009 5,955.4 611,9 79 59.8 102.76 61.43 101 272 27,962 1,657.3 160,6 68 65.9 96.95 63.84 102 284 28,398 1,672.5 171,8 99 64.7 102.78 66.52 *TOTAL 2010 YTD 3,329.8 332,5 67 65.3 99.88 65.20 *TOTAL 58,513.6 5,468,1 99 61.5 93.45 57.52 1. Roomnights sold (derived from est. rate and a ctual room revenues) 2. Occupancy: nights sold divided by nights avai lable for sale(x 100) 3. Average price for each roomnight sold;from Di rectories and surveys 4. $ Revenue per available room per day (room sa les per day)

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LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AU STIN THROUGH GEORGETOWN # RNIGHTS $ ROOMS Hotels # SOLD 1 REVENU ES % $ $ YRQ Motels ROOMS (000S) (000 S) OCC2 Rate3 RPAR4 --- ------ ------ ------- -------- -- ---- ----- ----- 001 34 3,254 185.2 10,2 17 63.3 55.15 34.89 002 34 3,311 199.6 12,6 04 66.2 63.14 41.83 003 37 3,464 204.1 12,3 27 64.0 60.40 38.68 004 38 3,654 211.0 12,1 44 62.8 57.55 36.12 *TOTAL 2000 799.9 47,2 92 64.0 59.12 37.86 011 38 3,606 216.8 12,8 21 66.8 59.13 39.51 012 41 3,861 222.3 13,9 78 63.3 62.87 39.78 013 41 4,033 202.6 12,2 89 54.6 60.65 33.12 014 41 4,033 184.3 10,0 21 49.7 54.38 27.01 *TOTAL 2001 826.0 49,1 08 58.3 59.45 34.63 021 42 4,110 198.9 11,4 09 53.8 57.37 30.84 022 42 4,218 220.8 13,5 54 57.5 61.39 35.31 023 42 4,300 200.8 12,4 18 50.7 61.86 31.39 024 44 4,348 196.0 10,9 48 49.0 55.86 27.37 *TOTAL 2002 816.4 48,3 28 52.7 59.20 31.19 031 44 4,399 209.2 11,9 38 52.9 57.05 30.15 032 44 4,399 224.8 13,2 46 56.2 58.93 33.09 033 45 4,409 207.8 11,9 66 51.2 57.58 29.50 034 46 4,506 188.5 10,3 89 45.5 55.10 25.06 *TOTAL 2003 830.4 47,5 38 51.4 57.25 29.41 041 45 4,549 215.5 11,7 35 52.6 54.45 28.66 042 46 4,563 243.4 13,7 53 58.6 56.50 33.12 043 46 4,563 226.3 13,1 21 53.9 57.97 31.26 044 46 4,563 212.8 11,6 37 50.7 54.67 27.72 *TOTAL 2004 898.2 50,2 48 54.0 55.95 30.19 051 45 4,524 248.8 13,7 90 61.1 55.43 33.87 052 46 4,540 267.4 16,3 89 64.7 61.29 39.67 053 45 4,480 248.7 15,4 76 60.3 62.23 37.55 054 45 4,479 245.3 14,5 61 59.5 59.35 35.34 *TOTAL 2005 1,010.2 60,2 16 61.4 59.61 36.62 061 46 4,548 267.1 16,5 29 65.3 61.88 40.38 062 46 4,548 281.1 20,1 60 67.9 71.72 48.71 063 46 4,548 282.5 19,4 83 67.5 68.96 46.56 064 46 4,536 274.3 17,9 22 65.7 65.33 42.95 *TOTAL 2006 1,105.0 74,0 94 66.6 67.05 44.66 071 46 4,535 301.6 20,7 15 73.9 68.69 50.75 072 46 4,535 290.5 22,2 56 70.4 76.62 53.93 073 47 4,557 283.4 20,5 90 67.6 72.66 49.11 074 47 4,557 269.2 18,6 43 64.2 69.25 44.47 *TOTAL 2007 1,144.6 82,2 04 69.0 71.82 49.54

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LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AU STIN THROUGH GEORGETOWN # RNIGHTS $ ROOMS Hotels # SOLD 1 REVENU ES % $ $ YRQ Motels ROOMS (000S) (000 S) OCC2 Rate3 RPAR4 --- ------ ------ ------- -------- -- ---- ----- ----- 081 47 4,557 283.8 20,7 69 69.2 73.18 50.64 082 48 4,679 283.2 21,7 06 66.5 76.65 50.98 083 48 4,778 272.5 20,8 93 62.0 76.66 47.53 084 47 4,763 245.3 17,4 18 56.0 71.00 39.75 *TOTAL 2008 1,084.9 80,7 87 63.3 74.47 47.14 091 47 4,763 247.9 16,3 57 57.8 65.98 38.16 092 49 4,933 266.1 18,5 21 59.3 69.60 41.26 093 49 4,906 243.5 16,2 80 54.0 66.85 36.07 094 50 5,063 235.8 15,0 11 50.6 63.67 32.23 *TOTAL 2009 993.3 66,1 69 55.3 66.61 36.87 101 49 5,023 284.1 17,5 84 62.8 61.90 38.90 102 50 5,097 288.0 19,3 96 62.1 67.36 41.82 *TOTAL 2010 YTD 572.0 36,9 80 62.5 64.65 40.38 *TOTAL 10,080.9 642,9 63 59.7 63.78 38.08 1. Roomnights sold (derived from est. rate and a ctual room revenues) 2. Occupancy: nights sold divided by nights avai lable for sale(x 100) 3. Average price for each roomnight sold;from Di rectories and surveys 4. $ Revenue per available room per day (room sa les per day)

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EXHIBIT II PERIOD: TWELVE MONTHS ENDING J UNE 30, 2010 LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS MARRIOTT 1 .3 5.9 70 6.7 8,454 12.4 65.3 120.22 78.51 TOT UPSCALE 1 .3 5.9 70 6.7 8,454 12.4 65.3 120.22 78.51 RESIDENCE 2 .2 3.7 48 4.6 5,638 8.3 71.7 117.09 83.95 STAYBRIDG 1 .1 1.6 18 1.7 1,713 2.5 61.2 94.59 57.93 TOT SUITES 3 .3 5.3 66 6.3 7,351 10.8 68.5 110.94 75.99 COURTYARD 2 .2 4.8 38 3.6 3,659 5.4 43.8 95.82 41.92 HILT GARD 2 .2 4.8 51 4.9 4,949 7.2 58.8 96.48 56.73 HOLID INN 1 .1 1.8 19 1.8 1,403 2.1 56.5 74.71 42.25 TOT MID/UPS 5 .6 11.3 108 10.3 10,011 14.7 52.1 92.47 48.19 CANDLWOOD 1 .1 2.0 22 2.1 1,278 1.9 61.9 57.73 35.72 COMFO STE 3 .2 3.9 43 4.1 3,565 5.2 60.6 82.18 49.83 SPRNGHILL 2 .2 4.7 54 5.1 4,391 6.4 62.2 82.01 50.97 TOT MIN STE 6 .5 10.6 119 11.3 9,233 13.5 61.5 77.56 47.73 BEST WEST 2 .2 3.7 38 3.6 2,166 3.2 55.6 57.69 32.08 CNTRY INN 1 .1 1.2 10 1.0 547 .8 45.2 54.35 24.55 FAIRFIELD 1 .2 3.0 20 1.9 1,598 2.3 37.0 78.90 29.19 HAMPTON 1 .1 1.9 23 2.2 2,501 3.7 66.6 110.53 73.67 HOLID EXP 3 .2 4.3 46 4.4 3,758 5.5 58.9 81.24 47.88 LA QUINTA 3 .3 6.0 67 6.4 4,392 6.4 61.3 65.21 39.98 SLEEP INN 0 .0 .4 3 .3 198 .3 50.5 58.22 29.40 WINGATE 1 .1 2.0 19 1.8 1,278 1.9 53.2 65.82 35.02 TOT LTD SVE 12 1.1 22.4 227 21.6 16,438 24.1 55.3 72.44 40.09 EXT AMERI 3 .4 7.2 79 7.5 3,073 4.5 60.2 38.85 23.39 INTOWN ST 1 .1 2.4 29 2.8 991 1.5 66.5 33.74 22.43 VALUE PLC 2 .2 4.2 52 4.9 1,498 2.2 67.0 28.96 19.41 TOT EXT STA 6 .7 13.8 160 15.2 5,562 8.1 63.4 34.72 22.00 DAYS INN 2 .1 2.1 17 1.6 799 1.2 44.6 47.21 21.05 HO JO 1 .2 3.7 29 2.8 1,003 1.5 42.5 34.37 14.62 MOTEL 6 2 .3 5.3 61 5.8 2,289 3.4 62.5 37.60 23.48 QUALITY 1 .1 1.1 12 1.1 668 1.0 59.9 56.63 33.92 RAMADA 1 .2 3.1 32 3.0 1,098 1.6 56.1 34.40 19.29 RED ROOF 2 .3 5.0 43 4.1 1,889 2.8 47.4 43.65 20.70 SUPER 8 1 .1 2.4 28 2.7 1,197 1.8 62.2 42.85 26.66 TOT BUDGET 10 1.1 22.7 222 21.1 8,944 13.1 53.2 40.30 21.46 TOT CHAINS 43 4.6 91.9 973 92.6 65,992 96.7 57.7 67.83 39.16 TOT INDEP 7 .4 8.1 78 7.4 2,280 3.3 53.0 29.12 15.42 TOT MARKET 50 5.0 100.0 1,051 100.0 68,272 100 57.3 64.94 37.25 * All figures annualized. Includes taxed and est n on-tax room revenues.

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PERIOD: TWELVE MONTHS ENDING J UNE 30, 2009 LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS MARRIOTT 1 .3 6.1 67 6.5 8,576 11.7 62.2 128.14 79.65 TOT UPSCALE 1 .3 6.1 67 6.5 8,576 11.7 62.2 128.14 79.65 RESIDENCE 2 .2 3.8 47 4.6 6,005 8.2 70.3 127.17 89.41 STAYBRIDG 1 .1 1.7 20 1.9 1,918 2.6 66.0 98.31 64.88 TOT SUITES 3 .3 5.5 67 6.5 7,923 10.8 69.0 118.73 81.91 COURTYARD 1 .1 2.3 24 2.4 2,584 3.5 59.2 105.75 62.65 HILT GARD 2 .2 5.0 50 4.9 5,395 7.4 57.7 107.26 61.84 HOLID INN 1 .1 1.9 18 1.8 1,579 2.2 55.5 85.62 47.53 TOT MID/UPS 4 .4 9.2 93 9.0 9,557 13.1 57.6 102.58 59.11 CANDLWOOD 1 .1 2.0 22 2.1 1,392 1.9 61.3 63.52 38.91 COMFO STE 2 .1 2.8 31 3.0 2,662 3.6 62.7 84.91 53.23 SPRNGHILL 2 .2 4.9 54 5.3 5,300 7.2 63.0 97.61 61.53 TOT MIN STE 5 .5 9.8 108 10.4 9,354 12.8 62.6 86.96 54.41 BEST WEST 2 .2 3.8 36 3.5 2,286 3.1 53.8 62.98 33.86 CNTRY INN 1 .1 1.3 12 1.2 785 1.1 53.6 65.84 35.27 FAIRFIELD 0 .0 .8 4 .4 344 .5 26.5 95.01 25.23 HAMPTON 1 .1 1.9 21 2.1 2,510 3.4 62.4 118.55 73.95 HOLID EXP 3 .3 5.5 59 5.7 5,387 7.4 60.8 91.99 55.90 LA QUINTA 3 .3 6.3 68 6.6 4,724 6.5 62.1 69.28 43.00 WINGATE 1 .1 2.1 22 2.1 1,482 2.0 60.0 67.66 40.59 TOT LTD SVE 11 1.0 21.7 222 21.5 17,519 23.9 58.3 79.03 46.09 EXT AMERI 3 .4 7.5 79 7.7 3,502 4.8 60.3 44.22 26.65 INTOWN ST 1 .1 2.5 32 3.1 1,228 1.7 73.2 37.99 27.80 OTHER EXT 2 .3 5.4 51 4.9 1,807 2.5 53.2 35.51 18.90 TOT EXT STA 6 .7 15.4 162 15.7 6,537 8.9 59.9 40.25 24.11 DAYS INN 2 .1 2.2 15 1.5 864 1.2 40.4 56.31 22.77 HO JO 2 .3 7.2 58 5.6 2,428 3.3 45.9 42.12 19.34 MOTEL 6 2 .3 5.6 66 6.4 2,834 3.9 67.6 43.02 29.08 QUALITY 1 .1 1.1 11 1.0 675 .9 53.7 63.76 34.26 RED ROOF 2 .3 5.2 49 4.8 2,469 3.4 54.1 50.05 27.06 SUPER 8 1 .1 2.6 33 3.2 1,689 2.3 72.7 51.75 37.63 TOT BUDGET 10 1.1 23.7 231 22.4 10,961 15.0 55.5 47.36 26.30 TOT CHAINS 40 4.4 91.5 950 92.1 70,427 96.2 59.1 74.14 43.85 TOT INDEP 7 .4 8.5 82 7.9 2,762 3.8 54.9 33.74 18.51 TOT MARKET 48 4.8 100.0 1,032 100.0 73,189 100 58.8 70.93 41.70 * All figures annualized. Includes taxed and est n on-tax room revenues.

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PERIOD: TWELVE MONTHS ENDING J UNE 30, 2008 LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS MARRIOTT 1 .3 6.4 74 6.6 10,079 12.3 68.3 136.96 93.61 TOT UPSCALE 1 .3 6.4 74 6.6 10,079 12.3 68.3 136.96 93.61 RESIDENCE 2 .2 4.0 54 4.8 7,009 8.6 79.9 130.60 104.37 STAYBRIDG 1 .1 1.8 19 1.7 1,939 2.4 65.6 100.02 65.57 TOT SUITES 3 .3 5.8 73 6.5 8,948 11.0 75.5 122.49 92.51 COURTYARD 1 .1 2.5 29 2.6 2,898 3.5 69.9 100.48 70.27 HILT GARD 1 .1 2.7 31 2.7 3,277 4.0 68.5 107.43 73.60 HOLID INN 1 .1 2.0 22 2.0 2,017 2.5 66.5 91.28 60.72 TOT MID/UPS 3 .3 7.1 81 7.3 8,192 10.0 68.4 100.59 68.85 CANDLWOOD 1 .1 2.1 23 2.1 1,611 2.0 65.6 68.65 45.03 COMFO STE 2 .1 2.9 33 3.0 2,872 3.5 69.3 86.07 59.61 SPRNGHILL 2 .2 5.1 64 5.7 6,567 8.0 73.9 103.18 76.23 TOT MIN STE 5 .5 10.2 120 10.8 11,049 13.5 70.8 91.72 64.96 BEST WEST 2 .2 4.1 42 3.8 2,833 3.5 60.7 67.24 40.84 CNTRY INN 1 .1 1.3 15 1.3 1,064 1.3 65.6 72.81 47.77 HAMPTON 1 .1 2.0 25 2.2 2,891 3.5 73.6 115.76 85.17 HOLID EXP 3 .3 5.7 66 5.9 5,974 7.3 69.1 90.01 62.17 LA QUINTA 3 .3 6.6 72 6.4 5,121 6.3 65.7 70.94 46.61 WINGATE 1 .1 2.2 24 2.1 1,716 2.1 64.9 72.46 47.02 TOT LTD SVE 11 1.0 22.0 244 21.8 19,598 24.0 66.3 80.34 53.25 EXT AMERI 3 .4 7.9 93 8.3 4,247 5.2 70.8 45.54 32.23 INTOWN ST 1 .1 2.6 35 3.1 1,334 1.6 79.1 38.17 30.20 OTHER EXT 1 .2 3.7 43 3.8 1,694 2.1 68.2 39.75 27.12 TOT EXT STA 5 .7 14.2 171 15.3 7,275 8.9 71.7 42.59 30.51 DAYS INN 2 .1 2.3 25 2.2 1,512 1.9 66.2 60.16 39.82 HO JO 2 .3 7.5 59 5.3 2,772 3.4 46.9 47.07 22.08 MOTEL 6 2 .3 5.8 69 6.2 3,089 3.8 71.3 44.45 31.69 QUALITY 1 .1 1.2 13 1.2 909 1.1 67.3 68.50 46.11 RED ROOF 2 .3 5.4 56 5.0 2,862 3.5 61.6 50.89 31.36 SUPER 8 1 .1 2.7 38 3.4 2,005 2.5 85.7 52.10 44.66 TOT BUDGET 10 1.1 24.9 262 23.4 13,148 16.1 62.7 50.28 31.54 TOT CHAINS 38 4.2 90.6 1,025 91.5 78,289 95.8 67.6 76.39 51.62 TOT INDEP 9 .4 9.4 95 8.5 3,419 4.2 60.0 36.13 21.68 TOT MARKET 47 4.6 100.0 1,119 100.0 81,708 100 66.9 72.99 48.80 * All figures annualized. Includes taxed and est n on-tax rooms revenues.

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PERIOD: TWELVE MONTHS ENDING J UNE 30, 2007 LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS MARRIOTT 1 .3 6.5 78 6.8 10,161 12.6 72.6 129.95 94.36 TOT UPSCALE 1 .3 6.5 78 6.8 10,161 12.6 72.6 129.95 94.36 RESIDENCE 2 .2 4.1 56 4.9 6,493 8.1 83.1 116.38 96.68 STAYBRIDG 1 .1 1.8 22 1.9 2,062 2.6 72.8 95.88 69.76 TOT SUITES 3 .3 5.8 77 6.7 8,556 10.6 79.9 110.68 88.45 COURTYARD 1 .1 2.5 30 2.6 2,614 3.3 72.0 88.04 63.39 HILT GARD 1 .1 2.7 32 2.8 3,139 3.9 72.8 96.76 70.49 HOLID INN 1 .1 2.0 23 2.0 2,027 2.5 70.3 86.81 61.02 TOT MID/UPS 3 .3 7.2 85 7.4 7,780 9.7 71.8 91.01 65.38 CANDLWOOD 1 .1 2.2 27 2.3 1,701 2.1 74.2 64.11 47.56 COMFO STE 2 .1 2.9 33 2.9 2,707 3.4 69.5 80.88 56.19 SPRNGHILL 2 .2 5.2 66 5.7 6,489 8.1 76.4 98.67 75.33 TOT MIN STE 5 .5 10.3 126 10.9 10,897 13.6 73.9 86.64 64.07 BEST WEST 2 .2 4.2 46 4.0 3,064 3.8 65.7 67.24 44.19 CNTRY INN 1 .1 1.3 16 1.4 1,108 1.4 72.5 68.66 49.78 HAMPTON 1 .1 2.0 26 2.3 2,667 3.3 76.2 103.11 78.58 HOLID EXP 3 .3 5.8 64 5.5 5,412 6.7 66.2 85.04 56.27 LA QUINTA 3 .3 6.6 74 6.4 5,036 6.3 67.0 68.40 45.84 WINGATE 1 .1 2.2 25 2.2 1,725 2.1 69.4 68.08 47.27 TOT LTD SVE 11 1.0 22.2 250 21.8 19,013 23.7 68.0 75.99 51.65 EXT AMERI 3 .4 8.0 99 8.6 4,435 5.5 75.4 44.66 33.66 INTOWN ST 1 .1 2.7 35 3.1 1,329 1.7 80.3 37.46 30.09 OTHER EXT 1 .1 3.1 31 2.7 1,250 1.6 60.4 40.21 24.29 TOT EXT STA 5 .6 13.7 166 14.4 7,014 8.7 72.9 42.29 30.84 DAYS INN 2 .1 2.3 26 2.3 1,441 1.8 68.2 55.63 37.96 HO JO 1 .2 4.1 40 3.5 1,996 2.5 58.5 49.72 29.08 MOTEL 6 2 .3 5.9 72 6.3 3,169 3.9 73.9 44.01 32.52 QUALITY 1 .1 1.2 13 1.1 869 1.1 66.8 65.97 44.10 RAMADA 1 .2 3.4 33 2.8 1,645 2.0 57.4 50.30 28.90 RED ROOF 2 .3 5.5 58 5.1 2,926 3.6 63.9 50.15 32.06 SUPER 8 1 .1 2.7 32 2.8 1,624 2.0 71.6 50.55 36.18 TOT BUDGET 10 1.1 25.2 274 23.9 13,670 17.0 65.8 49.82 32.80 TOT CHAINS 38 4.1 90.9 1,057 92.0 77,091 95.9 70.2 72.92 51.20 TOT INDEP 8 .4 9.1 92 8.0 3,285 4.1 60.8 35.87 21.79 TOT MARKET 46 4.5 100.0 1,149 100.0 80,375 100 69.3 69.97 48.52 * All figures annualized. Included taxed and est n on-tax rooms revenues.

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PERIOD: TWELVE MONTHS ENDING J UNE 30, 2006 LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUS TIN THROUGH GEORGETOWN # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS MARRIOTT 1 .3 6.5 75 7.2 8,652 13.0 69.8 115.04 80.35 TOT UPSCALE 1 .3 6.5 75 7.2 8,652 13.0 69.8 115.04 80.35 RESIDENCE 2 .2 4.1 55 5.2 5,870 8.8 81.2 107.59 87.40 STAYBRIDG 1 .1 1.8 20 1.9 1,719 2.6 67.3 86.43 58.13 TOT SUITES 3 .3 5.9 74 7.1 7,589 11.4 77.0 101.93 78.46 COURTYARD 1 .1 2.5 26 2.5 2,051 3.1 62.3 79.82 49.72 HILT GARD 1 .1 2.7 29 2.8 2,461 3.7 64.7 85.49 55.27 HOLID INN 1 .1 2.0 22 2.1 1,604 2.4 65.1 74.20 48.29 TOT MID/UPS 3 .3 7.2 76 7.3 6,116 9.2 64.0 80.37 51.40 CANDLWOOD 1 .1 2.2 24 2.3 1,350 2.0 67.3 56.13 37.75 COMFO STE 1 .1 2.2 21 2.0 1,541 2.3 58.7 73.99 43.43 SPRNGHILL 2 .2 5.2 62 5.9 5,563 8.3 71.9 89.87 64.58 TOT MIN STE 4 .4 9.6 107 10.2 8,454 12.7 67.8 79.17 53.71 BEST WEST 2 .2 4.2 42 4.1 2,668 4.0 61.2 62.84 38.47 CNTRY INN 1 .1 1.4 13 1.2 772 1.2 57.8 59.99 34.68 HAMPTON 1 .1 2.1 24 2.3 2,274 3.4 71.5 93.72 66.99 HOLID EXP 3 .3 5.8 54 5.2 4,329 6.5 55.7 80.62 44.93 LA QUINTA 2 .2 4.8 49 4.7 3,027 4.5 61.8 62.38 38.57 WINGATE 1 .1 2.2 23 2.2 1,420 2.1 62.1 62.68 38.91 TOT LTD SVE 10 .9 20.4 204 19.6 14,490 21.7 60.7 70.87 43.01 EXT AMERI 3 .4 8.0 89 8.6 3,344 5.0 67.9 37.37 25.38 INTOWN ST 1 .1 2.7 32 3.1 1,133 1.7 72.6 35.34 25.65 OTHER EXT 1 .1 3.1 29 2.8 1,094 1.6 56.7 37.49 21.26 TOT EXT STA 5 .6 13.8 151 14.5 5,571 8.3 66.3 36.96 24.50 BAYMONT 1 .1 1.9 21 2.0 1,280 1.9 67.8 60.34 40.88 DAYS INN 2 .1 2.3 24 2.3 1,239 1.9 63.9 51.08 32.63 MOTEL 6 2 .3 5.9 72 6.9 2,776 4.2 73.7 38.60 28.43 QUALITY 1 .1 1.2 12 1.1 757 1.1 60.5 63.42 38.40 RAMADA 1 .2 3.5 33 3.1 1,592 2.4 57.1 48.93 27.96 RED ROOF 2 .3 5.5 54 5.2 2,540 3.8 59.6 46.71 27.83 SUPER 8 1 .1 2.7 25 2.4 1,173 1.8 55.8 46.87 26.14 TOT BUDGET 10 1.0 23.0 241 23.2 11,357 17.0 63.5 47.07 29.91 TOT CHAINS 36 3.9 86.5 929 89.1 62,229 93.3 65.2 66.98 43.68 TOT INDEP 9 .6 13.5 113 10.9 4,498 6.7 50.8 39.76 20.20 TOT MARKET 45 4.5 100.0 1,042 100.0 66,727 100 63.3 64.03 40.50 * All figures annualized. Included taxed and est n on-tax rooms revenues.

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EXHIBIT III LODGING MARKET: I-35 CORRIDOR FROM FAR NORTH AUST IN THROUGH GEORGETOWN E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 11400 N IH 35 78753 AUSTIN MOTOR INN 84 1.800 051 46 39,684 83,302 2.099 31 .53 64 20.12 052 46 73,301 102,139 1.393 35 .91 68 24.40 053 46 76,906 106,461 1.384 38 .90 65 25.16 054 46 49,051 88,302 1.800 32 .01 65 20.87 061 46 43,610 88,166 2.022 32 .75 65 21.30 062 46 61,530 104,906 1.705 38 .90 64 25.06 063 46 80,105 114,563 1.430 39 .20 69 27.07 064 46 71,442 108,687 1.521 38 .42 67 25.68 071 46 73,799 106,105 1.438 38 .42 67 25.63 072 46 70,309 102,264 1.454 39 .50 62 24.43 073 46 67,134 104,259 1.553 38 .71 64 24.64 074 46 64,279 104,269 1.622 37 .94 65 24.64 081 46 60,030 103,462 1.724 37 .26 67 24.99 082 46 68,648 108,080 1.574 39 .28 66 25.82 083 46 61,906 112,183 1.812 41 .92 63 26.51 084 46 44,668 104,550 2.341 37 .57 66 24.70 091 46 47,801 98,427 2.059 35 .69 67 23.77 092 46 62,738 103,752 1.654 36 .89 67 24.79 093 46 52,673 96,193 1.826 35 .89 63 22.73 094 46 66,485 110,340 1.778 34 .44 76 26.07 101 46 58,981 96,204 1.631 33 .06 70 23.24 102 46 48,825 96,290 1.972 34 .88 66 23.00 8300 N IH 35 78753 AUSTIN SUITE S FMR TRAVL 51 81 1.450 051 141 X.STE 172,615 195,175 1.131 34 .22 45 15.38 052 141 X.EXT 225,956 273,235 1.209 37 .98 56 21.29 053 141 X.EXT 194,880 258,609 1.327 38 .89 51 19.94 054 141 X.EXT 145,554 233,077 1.601 35 .35 51 17.97 061 141 X.EXT 142,568 251,407 1.763 35 .35 56 19.81 062 141 X.EXT 213,802 351,048 1.642 39 .74 69 27.36 063 141 X.EXT 198,586 354,239 1.784 41 .69 65 27.31 064 141 X.EXT 127,535 216,265 2.014 38 .80 43 16.67 071 141 X.EXT 142,917 337,302 2.360 38 .80 69 26.58 072 141 X.EXT 129,193 342,221 2.649 41 .12 65 26.67 073 141 X.EXT 134,305 370,816 2.761 41 .67 69 28.59 074 141 X.EXT 84,359 343,451 4.071 40 .84 65 26.48 081 141 X.EXT 103,428 339,402 3.282 40 .11 67 26.75 082 141 X.EXT 129,635 263,708 2.034 37 .99 54 20.55 083 141 X.EXT 176,339 255,828 1.451 38 .37 51 19.72 084 141 X.EXT 150,000 217,500 .000 35 .27 48 16.77 091 141 X.EXT 37,834 67,263 .000 28 .26 19 5.30 092 141 X.EXT 44,922 68,706 1.529 28 .26 19 5.35 601 MIDDLE LN 78753 AUSTIN VILLA GE MOTOR INN F 83 2.200 051 33 53,888 118,554 .000 42 .91 93 39.92

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 601 MIDDLE LN 78753 AUSTIN VILLA GE MOTOR INN F 83 2.200 052 33 26,991 40,735 1.509 44 .63 30 13.56 053 33 30,576 51,962 1.699 46 .28 37 17.12 054 33 30,704 44,986 1.465 42 .63 35 14.82 061 33 44,690 67,923 1.520 42 .23 54 22.87 062 33 38,176 77,320 2.025 44 .70 58 25.75 063 33 28,667 73,145 2.552 45 .57 53 24.09 064 33 31,305 68,390 2.185 41 .16 55 22.53 071 33 30,597 72,536 2.371 41 .16 59 24.42 072 33 27,859 71,433 2.564 43 .75 54 23.79 073 33 33,879 74,906 2.211 44 .83 55 24.67 074 33 32,463 71,219 2.194 41 .29 57 23.46 081 33 32,472 70,485 2.171 40 .56 58 23.73 082 33 22,568 66,515 2.947 42 .08 53 22.15 083 33 24,747 56,618 2.288 40 .48 46 18.65 084 33 20,422 50,694 2.482 40 .22 42 16.70 091 33 22,093 50,182 2.271 37 .05 46 16.90 092 33 27,904 55,334 1.983 37 .05 50 18.43 093 33 22,926 51,356 2.240 35 .56 48 16.92 094 33 13,682 45,395 3.318 33 .11 45 14.95 101 33 22,279 48,477 2.176 33 .71 48 16.32 102 33 25,524 56,547 2.215 33 .54 56 18.83 7928 GESSNER DR 78753 BEST WESTERN ATRIUM NORTH 87 1.120 051 122 BWEST 270,842 306,756 1.133 48 .55 58 27.94 052 122 BWEST 338,464 390,877 1.155 55 .69 63 35.21 053 122 BWEST 266,627 297,461 1.116 54 .64 49 26.50 054 122 BWEST 251,348 355,715 1.415 52 .05 61 31.69 061 122 BWEST 324,031 364,818 1.126 53 .55 62 33.23 062 122 BWEST 368,846 410,662 1.113 61 .97 60 36.99 063 122 BWEST 352,296 380,730 1.081 60 .73 56 33.92 064 122 BWEST 308,253 327,087 1.061 53 .90 54 29.14 071 122 BWEST 375,358 443,128 1.181 55 .50 73 40.36 072 122 BWEST 385,036 447,052 1.161 61 .68 65 40.27 073 122 BWEST 363,274 377,805 1.040 59 .47 57 33.66 074 122 BWEST 321,953 348,765 1.083 56 .32 55 31.07 081 122 BWEST 326,296 376,726 1.155 55 .32 62 34.31 082 122 BWEST 344,705 395,251 1.147 60 .28 59 35.60 083 117 BWEST 294,372 355,685 1.208 59 .87 55 33.04 084 117 BWEST 221,348 250,704 1.133 53 .81 43 23.29 091 117 BWEST 265,735 306,393 1.153 51 .12 57 29.10 092 117 BWEST 250,523 313,053 1.250 51 .12 58 29.40 093 117 BWEST 232,342 248,444 1.069 49 .73 46 23.08 094 117 BWEST 205,862 220,695 1.072 45 .60 45 20.50 101 117 BWEST 319,050 363,239 1.139 48 .58 71 34.50 102 117 BWEST 316,278 353,624 1.118 55 .30 60 33.21 9106 I-35 NORTH 78753 BUDGET INN 71 1.450 051 120 69,034 136,663 1.980 28 .13 45 12.65

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 9106 I-35 NORTH 78753 BUDGET INN 71 1.450 052 120 96,884 191,795 1.980 30 .30 58 17.56 053 120 112,170 220,274 1.964 33 .70 59 19.95 054 120 118,428 169,892 1.435 29 .55 52 15.39 061 120 146,834 187,824 1.279 29 .55 59 17.39 062 120 185,458 248,940 1.342 36 .57 62 22.80 063 120 184,500 234,508 1.271 35 .84 59 21.24 064 120 147,299 201,048 1.365 33 .85 54 18.21 071 120 192,209 227,670 1.184 33 .85 62 21.08 072 120 192,266 237,467 1.235 37 .88 57 21.75 073 120 177,636 223,821 1.260 35 .85 57 20.27 074 120 157,937 207,015 1.311 33 .17 57 18.75 081 120 168,961 223,336 1.322 32 .58 63 20.68 082 120 191,188 233,721 1.222 32 .58 66 21.40 083 120 164,521 206,343 1.254 32 .91 57 18.69 084 120 142,230 187,681 1.320 31 .91 53 17.00 091 120 132,290 187,665 1.419 29 .55 59 17.38 092 120 173,182 239,106 1.381 29 .55 74 21.90 093 120 109,005 164,702 1.511 27 .39 54 14.92 094 120 105,204 153,621 1.460 26 .28 53 13.91 101 120 109,637 159,951 1.459 25 .23 59 14.81 102 120 105,505 158,613 1.503 25 .10 58 14.53 9220 N I H 35 78753 BUDGET MOTEL FMR HOMESTYLE 83 2.300 051 150 142,603 165,830 .000 3 22 .57 54 12.28 052 150 144,838 168,499 .000 22 .53 55 12.34 053 150 125,000 175,000 1.400 1 25 .00 51 12.68 054 150 115,054 149,296 1.298 25 .00 43 10.82 061 150 179,778 211,862 1.178 25 .00 63 15.69 062 150 186,755 250,223 1.340 31 .23 59 18.33 063 150 170,148 241,922 1.422 30 .63 57 17.53 064 150 152,832 230,963 1.511 26 .98 62 16.74 071 150 160,300 258,502 1.613 27 .58 69 19.15 072 150 181,406 280,654 1.547 32 .46 63 20.56 073 150 168,905 281,565 1.667 31 .81 64 20.40 074 150 163,402 288,110 1.763 32 .34 65 20.88 081 150 17,000 290,000 .000 1 31 .77 68 21.48 082 150 174,459 240,390 1.548 31 .77 55 17.61 083 150 148,086 272,060 1.837 32 .09 61 19.71 084 150 88,782 195,565 2.203 29 .18 49 14.17 091 150 69,453 151,213 2.177 27 .15 41 11.20 092 150 91,647 153,552 1.675 27 .15 41 11.25 093 150 73,524 151,098 2.055 25 .83 42 10.95 094 150 49,770 129,269 2.597 23 .99 39 9.37 101 150 60,250 127,045 2.109 22 .55 42 9.41 102 150 90,357 164,591 1.822 22 .44 54 12.06 12330 N INTERST 78753 COURTYARD AU STIN NORTH PAR 09 1.050 093 70 COURT 238,110 249,780 1.049 120 .02 32 38.79

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 12330 N INTERST 78753 COURTYARD AU STIN NORTH PAR 09 1.050 094 145 COURT 309,489 326,201 1.054 100 .77 24 24.45 101 145 COURT 477,924 493,044 1.032 96 .74 39 37.78 102 145 COURT 506,528 535,757 1.058 87 .11 47 40.60 700 MIDDLE LN 78753 ECONOMY INN 05 1.150 052 16 32,795 40,531 1.236 50 .00 56 27.84 053 16 24,945 33,516 1.344 51 .85 44 22.77 054 16 33,403 38,413 .000 50 .09 52 26.10 061 16 22,481 25,853 .000 40 .09 45 17.95 062 16 24,236 27,871 .000 42 .42 45 19.14 063 16 26,398 29,011 1.099 41 .57 47 19.71 064 16 21,132 24,302 .000 38 .78 43 16.51 071 16 29,051 33,409 .000 40 .78 57 23.20 072 16 24,415 28,077 .000 41 .92 46 19.28 073 16 14,567 21,268 1.460 38 .71 37 14.45 074 16 21,274 24,465 .000 48 .72 34 16.62 081 16 28,479 32,751 .000 39 .99 57 22.74 082 16 41,147 47,319 .000 52 .22 62 32.50 083 16 25,055 42,833 1.710 48 .00 61 29.10 084 16 43,839 53,839 1.228 47 .03 78 36.58 091 16 38,270 44,011 .000 42 .78 71 30.56 092 16 34,904 40,140 .000 42 .78 64 27.57 093 16 36,015 41,417 .000 42 .59 66 28.14 094 16 28,616 32,908 .000 39 .81 56 22.36 101 16 32,327 39,814 1.232 41 .77 66 27.65 102 16 36,275 41,716 .000 41 .56 69 28.65 8221 N IH 35 78753 EXTENDED STA Y DELUXE FMR W 98 2.100 051 119 EXTSA 152,106 248,568 1.634 40 .15 58 23.21 052 119 EXTSA 195,841 328,078 1.675 41 .76 73 30.30 053 119 EXTSA 126,027 302,968 2.404 44 .13 63 27.67 054 119 EXTSA 84,987 263,201 3.097 38 .94 62 24.04 061 119 EXTSA 160,051 254,706 1.591 37 .54 63 23.78 062 119 EXTSA 215,914 312,959 1.449 39 .73 73 28.90 063 119 EXTSA 225,960 327,003 1.447 41 .68 72 29.87 064 119 EXTSA 192,255 304,058 1.582 41 .65 67 27.77 071 119 EXTSA 242,510 429,459 1.771 49 .55 81 40.10 072 119 EXTSA 230,631 401,098 1.739 50 .94 73 37.04 073 119 EXTSA 241,400 351,961 1.458 48 .55 66 32.15 074 119 EXTSA 157,583 269,901 1.713 40 .72 61 24.65 081 119 EXTSA 253,509 357,579 1.411 43 .92 76 33.39 082 119 EXTSA 222,715 334,088 1.500 43 .92 70 30.85 083 118 EXTSA 209,949 336,927 1.605 44 .36 70 31.04 084 118 EXTSA 137,047 327,142 2.269 43 .02 70 30.13 091 118 EXTSA 146,518 222,975 1.478 40 .87 51 21.00 092 118 EXTSA 137,726 253,359 1.840 39 .55 60 23.59 093 118 EXTSA 89,767 203,015 2.262 36 .54 51 18.70

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 8221 N IH 35 78753 EXTENDED STA Y DELUXE FMR W 98 2.100 094 118 EXTSA 100,097 189,788 1.896 34 .54 51 17.48 101 118 EXTSA 117,662 232,730 1.978 33 .16 66 21.91 102 118 EXTSA 124,628 280,330 2.249 37 .36 70 26.11 12536 N INTERST 78753 FAIRFIELD IN N AND SUITES 09 1.040 092 150 FAIRF 320,488 344,331 1.074 95 .00 27 25.23 093 150 FAIRF 260,057 274,893 1.057 92 .43 22 19.92 094 150 FAIRF 330,053 346,191 1.049 82 .03 31 25.09 101 150 FAIRF 465,487 486,406 1.045 76 .83 47 36.03 102 150 FAIRF 473,348 490,896 1.037 72 .88 49 35.96 12400 N INTERST 78753 HILTON GARDE N INN-AUSTIN 08 1.045 083 117 HILTG 601,513 654,436 1.088 116 .15 52 60.80 084 117 HILTG 469,323 562,596 1.199 101 .95 51 52.27 091 117 HILTG 528,503 614,480 1.163 96 .85 60 58.36 092 117 HILTG 625,759 633,572 1.012 102 .85 58 59.51 093 117 HILTG 440,021 448,532 1.019 96 .17 43 41.67 094 117 HILTG 463,715 495,674 1.069 90 .63 51 46.05 101 117 HILTG 681,497 700,332 1.028 90 .00 74 66.51 102 117 HILTG 683,620 712,305 1.042 94 .53 71 66.90 8500 N I H 35 78753 HOLIDAY EXPR ESS FMR WINGAT 99 1.150 051 101 WINGT 149,137 154,430 1.035 50 .57 34 16.99 052 101 WINGT 119,899 124,471 1.026 56 .75 24 13.54 053 101 HIEXP 119,891 174,047 1.452 78 .85 24 18.73 054 101 HIEXP 172,791 228,998 1.325 75 .70 33 24.64 061 101 HIEXP 203,122 209,651 1.032 80 .70 29 23.06 062 101 HIEXP 357,752 411,415 .000 82 .13 54 44.76 063 101 HIEXP 257,413 296,025 .000 74 .49 43 31.86 064 101 HIEXP 220,081 253,093 .000 73 .00 37 27.24 071 100 HIEXP 401,297 461,492 .000 77 .50 66 51.28 072 100 HIEXP 503,168 578,643 .000 84 .81 75 63.59 073 100 HIEXP 350,000 402,500 .000 1 73 .95 59 43.75 074 100 HIEXP 380,966 438,111 .000 72 .47 66 47.62 081 100 HIEXP 528,883 608,215 .000 83 .57 81 67.58 082 101 HIEXP 623,175 623,175 .000 90 .61 75 67.80 083 101 HIEXP 379,354 436,257 .000 97 .58 48 46.95 084 101 HIEXP 402,146 462,468 .000 84 .92 59 49.77 091 101 HIEXP 307,850 354,028 .000 80 .67 48 38.95 092 101 HIEXP 376,907 433,443 .000 80 .67 58 47.16 093 101 HIEXP 287,281 330,373 .000 73 .62 48 35.55 094 101 HIEXP 230,326 264,875 .000 70 .64 40 28.51 101 101 HIEXP 376,721 433,229 .000 67 .81 70 47.66 102 101 HIEXP 429,074 493,435 .000 74 .14 72 53.69 7800 N INTERSTA 78753 HOW JOHNSON PLAZA FMR 4PTS 67 2.450 051 188 4 PTS 479,164 572,526 1.195 62 .57 54 33.84

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 7800 N INTERSTA 78753 HOW JOHNSON PLAZA FMR 4PTS 67 2.450 052 188 4 PTS 485,268 571,495 1.178 66 .11 51 33.41 053 188 188,916 345,036 1.826 60 .00 33 19.95 054 188 189,384 300,502 1.587 59 .10 29 17.37 061 188 HO JO 290,786 346,071 1.190 60 .10 34 20.45 062 188 HO JO 417,318 524,181 1.256 58 .31 53 30.64 063 188 HO JO 289,010 329,825 1.141 54 .20 35 19.07 064 188 HO JO 288,066 705,762 .000 48 .51 84 40.80 071 188 HO JO 413,815 457,950 1.107 48 .51 56 27.07 072 188 HO JO 441,974 502,008 1.136 49 .87 59 29.34 073 188 HO JO 353,571 404,132 1.143 48 .87 48 23.37 074 188 HO JO 264,304 293,202 1.109 46 .59 36 16.95 081 188 HO JO 345,871 371,726 1.075 46 .75 47 21.97 082 188 HO JO 345,280 364,114 .000 46 .75 46 21.28 083 188 HO JO 243,409 256,012 .000 47 .22 31 14.80 084 188 HO JO 111,234 121,881 .000 45 .78 15 7.05 091 188 HO JO 125,000 306,250 .000 1 38 .49 47 18.10 092 188 HO JO 200,000 490,000 .000 2 38 .49 74 28.64 093 188 HO JO 200,000 490,000 .000 3 37 .45 76 28.33 094 188 HO JO 73,112 185,192 2.533 35 .94 30 10.71 101 188 HO JO 85,949 211,667 2.463 30 .00 42 12.51 102 188 HO JO 97,664 116,393 1.192 29 .85 23 6.80 9909 N LAMAR BL 78753 INTOWN SUITE S 04 4.000 051 121 INTOW 54,164 237,613 4.387 30 .58 71 21.82 052 121 INTOW 61,183 265,409 4.338 33 .88 71 24.10 053 121 INTOW 69,836 267,206 3.826 34 .74 69 24.00 054 121 INTOW 47,995 280,731 5.849 33 .98 74 25.22 061 121 INTOW 71,723 276,148 3.850 33 .98 75 25.36 062 121 INTOW 63,382 308,563 4.868 38 .72 72 28.02 063 121 INTOW 93,499 332,649 3.558 37 .95 79 29.88 064 121 INTOW 52,786 321,313 6.087 35 .82 81 28.86 071 121 INTOW 39,522 339,125 8.581 37 .52 83 31.14 072 121 INTOW 77,247 335,728 4.346 38 .57 79 30.49 073 121 INTOW 98,285 335,938 3.418 38 .78 78 30.18 074 121 INTOW 79,322 339,257 4.277 37 .78 81 30.48 081 121 INTOW 85,342 337,395 3.953 37 .11 83 30.98 082 121 INTOW 89,648 321,308 3.584 39 .13 75 29.18 083 121 INTOW 80,657 318,301 3.946 39 .52 72 28.59 084 121 INTOW 62,316 296,925 4.765 38 .32 70 26.67 091 121 INTOW 60,728 303,638 5.000 36 .40 77 27.88 092 121 INTOW 74,318 308,942 4.157 37 .80 74 28.06 093 121 INTOW 57,619 225,753 3.918 34 .83 58 20.28 094 121 INTOW 48,020 244,314 5.088 33 .42 66 21.95 101 121 INTOW 69,104 271,033 3.922 34 .00 73 24.89 102 121 INTOW 61,817 249,452 4.035 32 .83 69 22.65 8010 N INTERSTA 78753 MOTEL 6 #134 4 81 1.030 051 111 MTL 6 217,656 219,792 1.010 33 .20 66 22.00

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 8010 N INTERSTA 78753 MOTEL 6 #134 4 81 1.030 052 111 MTL 6 273,262 274,714 1.005 35 .88 76 27.20 053 111 MTL 6 273,185 278,885 1.021 37 .21 73 27.31 054 111 MTL 6 231,979 241,829 1.042 35 .02 68 23.68 061 111 MTL 6 268,913 273,825 1.018 37 .02 74 27.41 062 111 MTL 6 329,657 330,191 1.002 46 .07 71 32.69 063 111 MTL 6 341,210 343,737 1.007 45 .15 75 33.66 064 111 MTL 6 277,412 283,305 1.021 40 .42 69 27.74 071 111 MTL 6 333,812 349,335 1.047 42 .52 82 34.97 072 111 MTL 6 352,328 358,906 1.019 47 .82 74 35.53 073 111 MTL 6 346,053 354,358 1.024 46 .86 74 34.70 074 111 MTL 6 283,497 290,953 1.026 42 .63 67 28.49 081 111 MTL 6 335,880 346,343 1.031 43 .95 79 34.67 082 111 MTL 6 312,431 319,204 1.022 45 .17 70 31.60 083 111 MTL 6 337,621 353,336 1.047 47 .47 73 34.60 084 111 MTL 6 224,137 237,986 1.062 40 .29 58 23.30 091 111 MTL 6 295,212 300,319 1.017 41 .13 73 30.06 092 111 MTL 6 322,199 325,371 1.010 43 .13 75 32.21 093 111 MTL 6 286,931 290,953 1.014 41 .38 69 28.49 094 111 MTL 6 205,719 208,231 1.012 36 .82 55 20.39 101 111 MTL 6 231,835 242,948 1.048 35 .35 69 24.32 102 111 MTL 6 278,115 279,977 1.007 38 .46 72 27.72 9420 N I H 35 78753 MOTEL 6 #360 80 1.030 051 158 MTL 6 303,177 304,672 1.005 32 .25 66 21.43 052 158 MTL 6 360,630 364,043 1.009 35 .93 70 25.32 053 158 MTL 6 380,939 392,367 .000 37 .88 71 26.99 054 156 MTL 6 346,085 356,468 .000 34 .06 73 24.84 061 156 MTL 6 401,565 407,064 1.014 36 .56 79 28.99 062 156 MTL 6 492,264 495,584 1.007 45 .04 78 34.91 063 156 MTL 6 488,553 493,635 1.010 45 .61 75 34.39 064 156 MTL 6 406,649 416,802 1.025 41 .66 70 29.04 071 156 MTL 6 452,312 465,308 1.029 42 .56 78 33.14 072 156 MTL 6 448,761 458,238 1.021 46 .26 70 32.28 073 156 MTL 6 480,751 487,962 1.015 45 .33 75 34.00 074 156 MTL 6 352,883 365,629 1.036 40 .18 63 25.48 081 156 MTL 6 420,886 430,574 1.023 42 .78 72 30.67 082 156 MTL 6 480,576 493,620 1.027 48 .25 72 34.77 083 156 MTL 6 451,885 473,829 1.049 48 .13 69 33.01 084 156 MTL 6 336,879 367,780 1.092 40 .84 63 25.63 091 156 MTL 6 320,690 336,373 1.049 38 .00 63 23.96 092 156 MTL 6 437,077 439,410 1.005 44 .00 70 30.95 093 156 MTL 6 368,846 370,946 1.006 40 .86 63 25.85 094 156 MTL 6 264,371 273,913 1.036 36 .99 52 19.09 101 156 MTL 6 282,767 292,145 1.033 35 .51 59 20.81 102 156 MTL 6 323,759 329,495 1.018 35 .33 66 23.21 9121 NORTH DR # 78753 RAMADA LTD F MR HOJO/RALTD/ 86 1.100 051 156 RALTD 325,900 349,071 1.071 43 .52 57 24.86

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 9121 NORTH DR # 78753 RAMADA LTD F MR HOJO/RALTD/ 86 1.100 052 156 RALTD 364,803 392,784 1.077 47 .34 58 27.67 053 156 RALTD 391,053 421,688 1.078 50 .34 58 29.38 054 156 RALTD 293,355 378,816 1.291 49 .58 53 26.39 061 156 RALTD 345,685 373,141 1.079 46 .50 57 26.58 062 156 RALTD 372,705 418,417 1.123 49 .22 60 29.47 063 156 RALTD 389,998 430,629 1.104 50 .49 59 30.00 064 156 RALTD 339,064 365,168 1.077 49 .48 51 25.44 071 156 HO JO 417,331 458,943 1.100 49 .48 66 32.69 072 156 HO JO 366,323 390,619 1.066 51 .89 53 27.52 073 156 HO JO 355,569 369,081 1.038 49 .58 52 25.72 074 156 HO JO 247,495 274,118 1.108 44 .10 43 19.10 081 156 HO JO 338,035 367,397 1.087 47 .00 56 26.17 082 156 HO JO 309,368 328,660 1.062 46 .09 50 23.15 083 156 HO JO 349,582 395,239 1.131 48 .57 57 27.54 084 156 HO JO 245,629 274,514 1.118 43 .22 44 19.13 091 156 RALTD 282,177 310,278 1.100 41 .06 54 22.10 092 156 RALTD 259,584 273,983 1.055 40 .06 48 19.30 093 156 RALTD 268,139 279,462 1.042 38 .98 50 19.47 094 156 RALTD 156,096 212,805 1.363 33 .11 45 14.83 101 156 RALTD 280,654 322,530 1.149 33 .71 68 22.97 102 156 RALTD 272,455 283,329 1.040 32 .35 62 19.96 8210 N I H 35 78753 RED ROOF INN #210 82 1.050 051 143 REDRF 244,636 247,587 1.012 37 .53 51 19.24 052 143 REDRF 309,882 313,350 1.011 40 .56 59 24.08 053 143 REDRF 321,417 328,761 1.023 42 .06 59 24.99 054 143 REDRF 242,426 247,380 1.020 39 .46 48 18.80 061 143 REDRF 283,794 290,653 1.024 39 .46 57 22.58 062 143 REDRF 307,040 309,641 1.008 41 .76 57 23.79 063 143 REDRF 326,918 329,232 1.007 40 .92 61 25.03 064 143 REDRF 284,235 285,431 1.004 41 .67 52 21.70 071 143 REDRF 373,243 377,781 1.012 41 .67 70 29.35 072 143 REDRF 359,149 366,734 1.021 42 .84 66 28.18 073 143 REDRF 319,921 323,440 1.011 40 .42 61 24.58 074 143 REDRF 267,407 270,014 1.010 37 .78 54 20.52 081 143 REDRF 356,453 360,423 1.011 42 .73 66 28.00 082 143 REDRF 365,879 373,913 1.022 47 .10 61 28.73 083 143 REDRF 309,234 321,842 1.041 44 .79 55 24.46 084 143 REDRF 263,057 311,686 1.185 45 .37 52 23.69 091 143 REDRF 258,169 271,077 .000 38 .64 55 21.06 092 143 REDRF 225,190 236,450 .000 37 .64 48 18.17 093 143 REDRF 197,018 206,869 .000 36 .48 43 15.72 094 143 REDRF 147,257 154,620 .000 35 .01 34 11.75 101 143 REDRF 189,447 198,919 .000 33 .12 47 15.46 102 143 REDRF 231,654 243,237 .000 34 .35 54 18.69 12401 N LAMAR B 78753 RESIDENCE IN N-AUSTIN NORT 00 1.300 051 88 RESID 615,145 679,677 1.105 97 .06 88 85.82

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 12401 N LAMAR B 78753 RESIDENCE IN N-AUSTIN NORT 00 1.300 052 88 RESID 639,069 739,914 1.158 110 .51 84 92.40 053 88 RESID 563,685 694,024 1.231 112 .69 76 85.72 054 88 RESID 422,538 697,271 1.650 105 .65 82 86.13 061 88 RESID 574,125 776,567 1.353 107 .22 91 98.05 062 88 RESID 721,979 827,707 1.146 127 .11 81 103.36 063 88 RESID 694,891 794,090 1.143 124 .57 79 98.08 064 88 RESID 669,692 727,159 1.086 114 .05 79 89.82 071 88 RESID 718,386 821,081 1.143 114 .97 90 103.67 072 88 RESID 705,885 760,499 1.077 134 .64 71 94.97 073 88 RESID 737,627 893,266 1.211 133 .81 82 110.33 074 88 RESID 644,814 854,081 1.325 131 .13 80 105.49 081 88 RESID 716,210 903,942 1.262 134 .10 85 114.13 082 88 RESID 780,534 897,880 1.150 142 .20 79 112.12 083 88 RESID 690,913 841,227 1.218 143 .62 72 103.91 084 88 RESID 459,830 805,677 1.752 136 .35 73 99.52 091 88 RESID 373,579 611,851 1.638 120 .98 64 77.25 092 88 RESID 549,816 675,716 1.229 125 .98 67 84.38 093 88 RESID 508,786 592,580 1.165 112 .84 65 73.19 094 88 RESID 373,570 578,968 1.550 108 .27 66 71.51 101 88 RESID 537,110 650,431 1.211 110 .66 74 82.13 102 88 RESID 570,592 770,393 1.350 125 .03 77 96.20 12520 N IH 35 78753 SPRINGHILL S UITES 02 1.040 051 132 SPRNG 705,953 719,455 1.019 77 .50 78 60.56 052 132 SPRNG 849,430 864,302 1.018 94 .12 76 71.95 053 132 SPRNG 716,428 768,231 1.072 92 .83 68 63.26 054 132 SPRNG 706,575 824,271 1.167 91 .44 74 67.87 061 132 SPRNG 848,736 923,962 1.089 95 .44 81 77.77 062 132 SPRNG 1,033,204 1,097,348 1.062 122 .18 75 91.35 063 132 SPRNG 931,647 981,849 1.054 109 .94 74 80.85 064 132 SPRNG 859,880 885,925 1.030 100 .45 73 72.95 071 132 SPRNG 1,055,694 1,096,274 1.038 107 .55 86 92.28 072 132 SPRNG 1,086,711 1,139,170 1.048 121 .87 78 94.84 073 132 SPRNG 950,998 993,793 1.045 113 .55 72 81.83 074 132 SPRNG 901,157 944,838 1.048 107 .36 72 77.80 081 132 SPRNG 999,419 1,046,381 1.047 111 .54 79 88.08 082 132 SPRNG 1,001,973 1,060,187 1.058 128 .15 69 88.26 083 132 SPRNG 826,793 907,414 1.098 120 .85 62 74.72 084 132 SPRNG 756,038 861,879 1.140 107 .48 66 70.97 091 132 SPRNG 727,986 775,190 1.065 100 .21 65 65.25 092 132 SPRNG 717,396 755,586 1.053 100 .21 63 62.90 093 132 SPRNG 578,264 594,332 1.028 87 .77 56 48.94 094 132 SPRNG 551,769 573,840 .000 81 .12 58 47.25 101 132 SPRNG 639,667 663,732 1.038 81 .72 68 55.87 102 132 SPRNG 670,194 734,922 1.097 88 .56 69 61.18 8128 N I H 35 78753 SUPER 8 FMR TRAVELERS 96 1.150 051 123 SUPR8 221,644 240,207 1.084 41 .29 53 21.70

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 8128 N I H 35 78753 SUPER 8 FMR TRAVELERS 96 1.150 052 123 SUPR8 284,104 304,955 .000 46 .06 59 27.25 053 123 SUPR8 293,492 310,318 1.057 47 .76 57 27.42 054 123 SUPR8 257,662 276,298 1.072 44 .33 55 24.42 061 123 SUPR8 309,882 333,330 1.076 46 .53 65 30.11 062 123 SUPR8 240,032 253,469 1.056 49 .25 46 22.65 063 123 SUPR8 349,685 402,138 .000 48 .26 74 35.54 064 123 SUPR8 276,714 318,221 .000 46 .61 60 28.12 071 123 SUPR8 362,342 416,693 .000 48 .51 78 37.64 072 123 SUPR8 423,589 487,127 .000 58 .09 75 43.52 073 123 SUPR8 423,048 486,505 .000 51 .05 84 42.99 074 123 SUPR8 423,048 486,505 .000 46 .79 92 42.99 081 123 SUPR8 434,533 499,713 .000 52 .64 86 45.14 082 123 SUPR8 462,667 532,067 .000 58 .71 81 47.54 083 123 SUPR8 452,831 520,756 .000 64 .35 72 46.02 084 123 SUPR8 313,430 360,445 .000 46 .88 68 31.85 091 123 SUPR8 347,657 399,806 .000 47 .20 77 36.12 092 123 SUPR8 355,198 408,478 .000 48 .65 75 36.49 093 123 SUPR8 281,739 324,000 .000 47 .33 60 28.63 094 123 SUPR8 265,900 305,785 .000 42 .74 63 27.02 101 123 SUPR8 281,331 323,531 .000 41 .80 70 29.23 102 123 SUPR8 211,622 243,365 .000 39 .30 55 21.74 11105 N INTERST 78753 VALUE PLACE - AUSTIN BRAKE 09 2.600 094 121 VALUP 76,806 156,321 4.330 27 .27 51 14.04 101 121 VALUP 60,147 234,853 3.905 28 .82 75 21.57 102 121 VALUP 82,112 195,727 2.384 27 .38 65 17.78 11506 IH 35 NOR 78753 WALNUT FORES T MOTEL POOJA 73 1.500 051 18 14,895 32,560 2.186 34 .63 58 20.10 052 18 21,479 39,559 1.842 39 .03 62 24.15 053 18 18,856 38,937 2.065 39 .96 59 23.51 054 18 14,487 34,769 2.400 34 .73 60 21.00 061 18 18,460 35,287 1.912 35 .23 62 21.78 062 18 21,774 49,319 2.265 41 .52 72 30.11 063 18 20,378 48,894 2.399 42 .65 69 29.53 064 18 17,938 54,409 3.033 44 .74 73 32.86 071 18 17,531 50,952 2.906 44 .74 70 31.45 072 18 25,645 55,075 2.148 49 .90 67 33.62 073 18 27,814 57,130 2.054 48 .90 71 34.50 074 18 22,127 49,163 2.222 47 .92 62 29.69 081 18 25,063 47,216 1.884 45 .70 64 29.15 082 18 32,050 55,243 1.724 50 .76 66 33.73 083 18 28,608 56,938 1.990 53 .29 64 34.38 084 18 27,077 43,966 1.624 47 .08 56 26.55 091 18 21,697 48,778 2.248 44 .73 67 30.11 092 18 26,255 50,535 1.925 45 .73 67 30.85 093 18 26,896 49,103 1.826 44 .49 67 29.65

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ AUSTIN 11506 IH 35 NOR 78753 WALNUT FORES T MOTEL POOJA 73 1.500 094 18 24,377 39,578 1.624 41 .73 57 23.90 101 18 29,649 43,734 1.475 42 .94 63 27.00 102 18 30,135 45,152 1.498 42 .73 64 27.57 GEORGETOWN 1908 S AUSTIN A 78626 BUDGET INN 07 1.800 073 22 31,667 38,855 1.227 37 .13 52 19.20 074 22 23,032 39,512 1.716 37 .76 52 19.52 081 22 31,939 45,133 1.413 38 .64 59 22.79 082 22 25,831 42,511 1.646 38 .64 55 21.23 083 22 23,162 35,181 1.519 38 .02 46 17.38 084 22 25,742 32,819 1.275 36 .87 44 16.21 091 22 22,236 25,559 1.149 31 .89 40 12.91 092 22 23,163 33,209 1.434 35 .50 47 16.59 093 22 17,659 32,620 1.847 34 .54 47 16.12 094 22 18,908 33,930 1.794 32 .87 51 16.76 101 22 16,121 36,137 2.242 31 .56 58 18.25 102 22 18,620 33,949 1.823 31 .10 54 16.96 11 WATERS EDGE 78626 COMFORT SUIT ES 06 1.050 061 69 COMFS 203,465 217,393 1.068 80 .00 44 35.01 062 69 COMFS 308,780 316,612 1.025 83 .09 61 50.42 063 69 COMFS 328,960 341,756 1.039 81 .43 66 53.84 064 69 COMFS 347,342 356,103 1.025 81 .98 68 56.10 071 69 COMFS 357,515 373,419 1.044 83 .50 72 60.13 072 69 COMFS 420,955 426,800 1.014 90 .98 75 67.97 073 69 COMFS 410,070 418,271 1.020 89 .16 74 65.89 074 69 COMFS 363,215 380,972 1.049 87 .38 69 60.01 081 69 COMFS 381,753 397,675 1.042 93 .62 68 64.04 082 69 COMFS 422,087 440,515 1.044 99 .83 70 70.16 083 69 COMFS 355,661 388,374 1.092 95 .95 64 61.18 084 69 COMFS 366,778 385,454 1.051 90 .66 67 60.72 091 69 COMFS 337,026 361,863 1.074 86 .13 68 58.27 092 69 COMFS 382,281 404,574 1.058 97 .65 66 64.43 093 69 COMFS 378,624 390,400 1.031 95 .00 65 61.50 094 69 COMFS 370,634 391,865 1.057 91 .15 68 61.73 101 69 COMFS 389,328 409,455 1.052 91 .34 72 65.93 102 69 COMFS 480,617 508,551 1.058 99 .84 81 80.99 209 N IH 35 78626 GEORGETOWN I NN FMR DAYS 75 1.050 051 55 DAYS 96,372 96,978 1.006 43 .34 45 19.59 052 55 DAYS 145,801 153,091 .000 47 .15 65 30.59 053 55 DAYS 145,114 152,370 .000 48 .89 62 30.11 054 55 DAYS 103,258 108,421 .000 44 .91 48 21.43 061 55 DAYS 140,139 140,832 1.005 46 .51 61 28.45 062 55 DAYS 158,586 160,520 1.012 50 .28 64 32.07 063 55 DAYS 168,617 177,048 .000 51 .53 68 34.99 064 55 DAYS 153,640 161,322 .000 48 .54 66 31.88

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ GEORGETOWN 209 N IH 35 78626 GEORGETOWN I NN FMR DAYS 75 1.050 071 55 DAYS 169,547 178,024 .000 50 .54 71 35.96 072 55 DAYS 197,732 207,619 .000 57 .10 73 41.48 073 55 DAYS 204,357 206,809 1.012 59 .88 68 40.87 074 55 DAYS 160,691 168,726 .000 52 .51 63 33.34 081 55 DAYS 162,624 170,755 .000 55 .78 62 34.50 082 55 DAYS 185,141 194,398 .000 60 .84 64 38.84 083 55 DAYS 143,471 149,821 1.044 60 .14 49 29.61 084 55 DAYS 130,445 135,203 1.036 50 .55 53 26.72 091 55 DAYS 63,181 68,003 1.078 48 .02 29 13.74 092 55 DAYS 104,379 109,849 1.052 48 .02 46 21.95 093 55 DAYS 89,931 94,849 1.055 46 .13 41 18.74 094 55 DAYS 75,447 80,047 1.061 41 .76 38 15.82 101 55 90,094 93,726 1.040 40 .86 46 18.93 102 55 100,710 105,904 1.052 40 .66 52 21.16 103 N AUSTIN AV 78626 SAN GABRIEL MOTEL 79 1.650 051 15 26,349 32,867 1.247 40 .07 61 24.35 052 15 31,876 42,563 1.335 42 .71 73 31.18 053 15 31,702 39,324 1.240 44 .29 64 28.50 054 15 34,562 48,426 1.401 43 .63 80 35.09 061 15 34,015 39,020 1.147 43 .63 66 28.90 062 15 40,186 51,556 1.283 52 .53 72 37.77 063 15 35,718 47,188 1.321 52 .46 65 34.19 064 15 32,841 46,505 1.416 49 .45 68 33.70 071 15 27,020 46,140 1.708 49 .45 69 34.18 072 15 37,138 52,176 1.405 58 .03 66 38.22 073 15 35,894 43,970 1.225 54 .91 58 31.86 074 15 22,390 31,697 1.416 48 .52 47 22.97 081 15 25,651 33,011 1.287 49 .65 49 24.45 082 15 26,976 32,407 1.201 49 .65 48 23.74 083 15 27,789 28,956 1.042 50 .15 42 20.98 200 IH-35 78628 COUNTRY INN & SUITES FMR H 99 1.060 051 79 HIEXP 265,112 293,203 1.106 64 .56 64 41.24 052 79 HIEXP 350,863 381,835 1.088 77 .54 68 53.11 053 79 HIEXP 324,252 379,031 1.169 77 .30 67 52.15 054 79 HIEXP 294,023 339,063 1.153 72 .40 64 46.65 061 79 HIEXP 285,144 306,948 1.076 68 .50 63 43.17 062 79 HIEXP 336,936 357,157 1.060 79 .91 62 49.68 063 79 HIEXP 353,095 379,717 1.075 78 .31 67 52.25 064 79 HIEXP 329,016 360,550 1.096 75 .96 65 49.61 071 79 HIEXP 325,456 378,386 1.163 77 .56 69 53.22 072 79 HIEXP 356,225 413,487 1.161 82 .24 70 57.52 073 79 HIEXP 372,330 405,095 1.088 81 .87 68 55.74 074 79 HIEXP 326,785 355,376 1.087 79 .25 62 48.90 081 79 HIEXP 314,816 355,671 1.130 81 .08 62 50.02 082 79 HIEXP 395,320 414,788 1.049 86 .15 67 57.70

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ GEORGETOWN 200 IH-35 78628 COUNTRY INN & SUITES FMR H 99 1.060 083 79 HIEXP 352,172 404,287 1.148 86 .00 65 55.63 084 79 HIEXP 325,848 360,073 1.105 79 .99 62 49.54 091 79 HIEXP 317,579 335,936 1.058 74 .24 64 47.25 092 79 HIEXP 355,596 382,617 1.076 88 .24 60 53.22 093 79 HIEXP 309,054 319,974 1.035 82 .93 53 44.03 094 40 HIEXP 115,481 121,676 1.054 76 .76 43 33.06 333 I-35 NORTH 78628 LA QUINTA IN N #926 85 1.200 051 99 LAQUN 259,825 281,897 1.085 55 .84 57 31.64 052 99 LAQUN 319,929 334,966 1.047 59 .84 62 37.18 053 99 LAQUN 307,263 334,800 1.090 62 .05 59 36.76 054 99 LAQUN 259,946 290,267 1.117 59 .15 54 31.87 061 99 LAQUN 260,000 290,000 1.115 1 59 .15 55 32.55 062 99 LAQUN 367,209 389,892 1.062 68 .96 63 43.28 063 99 LAQUN 347,119 377,939 1.089 66 .60 62 41.50 064 99 LAQUN 334,636 358,458 1.103 63 .31 62 39.36 071 99 LAQUN 311,517 341,288 1.096 60 .31 64 38.30 072 99 LAQUN 349,640 361,288 1.033 71 .25 56 40.10 073 99 LAQUN 377,557 409,272 1.084 69 .82 64 44.94 074 99 LAQUN 364,491 378,245 1.038 64 .21 65 41.53 081 99 LAQUN 324,689 347,763 1.071 65 .69 59 39.03 082 99 LAQUN 372,187 389,318 1.046 70 .40 61 43.21 083 99 LAQUN 288,051 337,820 1.173 70 .36 53 37.09 084 99 LAQUN 280,905 314,274 1.119 62 .41 55 34.51 091 99 LAQUN 249,523 275,316 1.103 55 .62 56 30.90 092 99 LAQUN 326,918 342,538 1.048 65 .62 58 38.02 093 99 LAQUN 324,910 333,627 1.027 63 .84 57 36.63 094 99 LAQUN 344,505 364,979 1.059 62 .22 64 40.07 101 99 LAQUN 328,953 376,953 1.146 61 .94 68 42.31 102 99 LAQUN 346,223 431,632 1.247 67 .31 71 47.91 1005 LEANDER RD 78628 QUALITY INN FMR COMFORT IN 84 1.055 051 54 QUALY 133,090 141,253 1.061 53 .84 54 29.06 052 54 QUALY 196,795 202,621 1.030 65 .04 63 41.23 053 54 QUALY 194,015 211,360 1.089 67 .45 63 42.54 054 54 QUALY 131,910 140,660 1.066 56 .59 50 28.31 061 54 QUALY 169,585 182,569 1.077 58 .59 64 37.57 062 54 QUALY 212,873 222,209 1.044 69 .42 65 45.22 063 54 QUALY 213,900 226,534 1.059 69 .01 66 45.60 064 54 QUALY 182,370 187,546 1.028 62 .47 60 37.75 071 54 QUALY 206,255 215,534 1.045 63 .57 70 44.35 072 54 QUALY 230,919 239,507 1.037 68 .43 71 48.74 073 54 QUALY 236,823 245,437 1.036 67 .06 74 49.40 074 54 QUALY 222,889 231,406 1.038 68 .66 68 46.58 081 54 QUALY 216,461 219,216 1.013 69 .23 65 45.11 082 54 QUALY 209,969 212,851 1.014 69 .23 63 43.32 083 54 QUALY 184,643 197,147 1.068 68 .21 58 39.68

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ GEORGETOWN 1005 LEANDER RD 78628 QUALITY INN FMR COMFORT IN 84 1.055 084 54 QUALY 143,693 145,994 1.016 62 .26 47 29.39 091 54 QUALY 145,659 148,083 1.017 59 .15 52 30.47 092 54 QUALY 176,324 184,021 1.044 64 .50 58 37.45 093 54 QUALY 159,133 161,778 1.017 59 .83 54 32.56 094 54 QUALY 130,688 134,334 1.028 53 .57 50 27.04 101 54 QUALY 154,031 163,105 1.059 51 .43 65 33.56 102 54 QUALY 200,411 209,255 1.044 61 .12 70 42.58 1501 SUN CITY B 78628 SUN CITY GEO RGETOWN 97 1.050 051 24 55,994 58,794 .000 46 .41 59 27.22 052 24 60,257 63,270 .000 48 .27 60 28.97 053 24 62,484 65,608 .000 50 .06 59 29.71 054 24 57,603 60,483 .000 49 .31 56 27.39 061 24 79,666 83,649 .000 49 .31 79 38.73 062 24 63,532 66,709 .000 52 .20 58 30.54 063 24 54,154 56,862 .000 51 .16 50 25.75 064 12 34,169 35,877 .000 47 .59 68 32.50 071 12 20,745 21,782 .000 49 .00 41 20.17 072 12 23,190 24,350 .000 50 .37 44 22.30 073 12 17,449 18,321 .000 48 .58 34 16.60 074 12 18,936 19,883 .000 47 .61 38 18.01 081 12 21,373 22,442 .000 48 .72 43 20.78 082 12 24,485 25,709 .000 48 .72 48 23.54 PFLUGERVILLE 15112 FM 1825 78660 COMFORT SUIT ES 09 1.100 092 20 COMFS 69,262 76,188 .000 85 .00 49 41.86 093 64 COMFS 200,606 220,667 .000 82 .70 45 37.48 094 64 COMFS 195,056 214,562 .000 79 .35 46 36.44 101 64 COMFS 263,201 289,521 .000 72 .34 69 50.26 102 64 COMFS 296,920 326,612 .000 84 .91 66 56.08 ROUND ROCK 1851 N IH 35 78664 BEST WESTERN EXECUTIVE IN 97 1.070 051 68 BWEST 176,077 204,172 1.160 57 .51 58 33.36 052 68 BWEST 270,596 286,747 1.060 71 .25 65 46.34 053 68 BWEST 273,614 307,005 1.122 75 .23 65 49.07 054 68 BWEST 212,732 289,936 1.363 71 .44 65 46.35 061 68 BWEST 256,994 296,554 1.154 67 .54 72 48.46 062 68 BWEST 328,483 345,640 1.052 82 .07 68 55.86 063 68 BWEST 342,496 383,769 1.121 83 .37 74 61.34 064 68 BWEST 292,320 337,994 1.156 76 .02 71 54.03 071 68 BWEST 276,131 356,040 1.289 78 .52 74 58.18 072 68 BWEST 363,117 388,502 1.070 87 .91 71 62.78 073 68 BWEST 322,277 330,978 1.027 83 .30 64 52.91 074 68 BWEST 315,716 324,892 1.029 78 .69 66 51.93 081 68 BWEST 280,358 324,362 1.157 80 .51 66 53.00 082 68 BWEST 328,288 353,731 1.078 86 .59 66 57.16 083 68 BWEST 244,715 306,332 1.252 84 .43 58 48.97

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 1851 N IH 35 78664 BEST WESTERN EXECUTIVE IN 97 1.070 084 68 BWEST 229,977 251,896 1.095 76 .04 53 40.26 091 68 BWEST 201,697 218,295 1.087 72 .24 49 35.67 092 68 BWEST 260,346 283,962 1.091 78 .24 59 45.89 093 68 BWEST 238,933 249,216 1.043 73 .21 54 39.84 094 68 BWEST 197,599 255,562 1.293 70 .25 58 40.85 101 68 BWEST 198,429 210,412 1.060 64 .85 53 34.38 102 68 BWEST 252,739 265,182 1.049 74 .48 58 42.85 521 S I H 35 78664 CANDLEWOOD S UITES 02 1.900 051 98 CANDL 178,090 284,468 1.597 50 .00 65 32.25 052 98 CANDL 187,350 327,884 1.750 52 .00 71 36.77 053 98 CANDL 174,811 354,167 2.026 57 .03 69 39.28 054 98 CANDL 141,318 288,796 2.044 54 .70 59 32.03 061 98 CANDL 193,358 301,999 1.562 55 .37 62 34.24 062 98 CANDL 219,220 405,471 1.850 56 .99 80 45.47 063 98 CANDL 231,171 410,841 1.777 58 .80 77 45.57 064 98 CANDL 219,058 394,862 1.803 60 .27 73 43.80 071 98 CANDL 265,473 428,022 1.612 64 .50 75 48.53 072 98 CANDL 240,252 467,419 1.946 73 .50 71 52.41 073 98 CANDL 201,428 464,694 2.307 72 .03 72 51.54 074 98 CANDL 169,856 379,554 2.235 65 .69 64 42.10 081 98 CANDL 226,129 419,692 1.856 69 .16 69 47.58 082 98 CANDL 227,539 346,620 1.523 67 .13 58 38.87 083 98 CANDL 238,425 385,190 1.616 69 .82 61 42.72 084 98 CANDL 143,803 353,311 2.457 63 .82 61 39.19 091 98 CANDL 192,094 330,356 1.720 58 .90 64 37.46 092 98 CANDL 241,634 322,957 1.337 61 .50 59 36.21 093 98 CANDL 151,597 246,066 1.623 54 .97 50 27.29 094 98 CANDL 120,921 312,309 2.583 55 .18 63 34.64 101 98 CANDL 187,202 360,503 1.926 56 .24 73 40.87 102 98 CANDL 215,533 358,852 1.665 64 .22 63 40.24 5555 S. IH 35 78664 EXTENDED STA Y AMERICA FMR 98 1.900 051 138 EXTSA 150,682 253,936 1.685 29 .50 69 20.45 052 138 EXTSA 153,589 305,953 1.992 30 .68 79 24.36 053 138 EXTSA 123,358 271,366 2.200 31 .82 67 21.37 054 138 EXTSA 125,000 275,000 2.200 1 31 .34 69 21.66 061 138 EXTSA 136,151 196,238 1.441 29 .54 53 15.80 062 138 EXTSA 238,632 337,200 1.413 36 .56 73 26.85 063 138 EXTSA 262,540 398,732 1.519 39 .75 79 31.41 064 138 EXTSA 204,983 314,088 1.532 34 .84 71 24.74 071 138 EXTSA 261,886 405,019 1.547 39 .84 82 32.61 072 138 EXTSA 276,082 459,361 1.664 48 .15 76 36.58 073 138 EXTSA 284,792 417,505 1.466 44 .25 74 32.88 074 138 EXTSA 275,530 372,106 1.351 40 .42 73 29.31 081 138 EXTSA 242,473 399,230 1.646 44 .56 72 32.14 082 138 EXTSA 304,472 403,553 1.325 46 .59 69 32.14

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 5555 S. IH 35 78664 EXTENDED STA Y AMERICA FMR 98 1.900 083 138 EXTSA 189,261 365,210 1.930 44 .03 65 28.77 084 138 EXTSA 132,968 240,585 1.817 42 .69 44 18.95 091 138 EXTSA 178,306 273,774 .000 40 .56 54 22.04 092 138 EXTSA 156,848 343,672 2.191 46 .56 59 27.37 093 138 EXTSA 127,207 293,118 2.304 42 .38 54 23.09 094 138 EXTSA 141,166 253,560 1.796 38 .74 52 19.97 101 138 EXTSA 140,159 266,317 1.900 35 .08 61 21.44 102 138 EXTSA 172,814 307,573 1.780 39 .88 61 24.49 100 DELL WAY 78664 HAMPTON INN ROUND ROCK 01 1.055 051 93 HAMPT 452,398 473,957 1.048 78 .59 72 56.63 052 93 HAMPT 552,385 567,593 1.028 91 .09 74 67.07 053 93 HAMPT 491,597 524,358 1.067 89 .70 68 61.29 054 93 HAMPT 470,970 525,492 1.116 91 .11 67 61.42 061 93 HAMPT 543,264 565,051 1.040 91 .11 74 67.51 062 93 HAMPT 644,606 658,908 1.022 102 .15 76 77.86 063 93 HAMPT 648,368 655,767 1.011 103 .05 74 76.64 064 93 HAMPT 540,705 589,016 1.089 94 .13 73 68.84 071 93 HAMPT 640,536 672,703 1.050 101 .13 79 80.37 072 93 HAMPT 727,679 749,998 1.031 113 .62 78 88.62 073 93 HAMPT 686,675 701,095 1.021 109 .39 75 81.94 074 93 HAMPT 642,587 662,411 1.031 105 .44 73 77.42 081 93 HAMPT 712,426 725,766 1.019 119 .25 73 86.71 082 93 HAMPT 780,414 801,828 1.027 129 .38 73 94.75 083 93 HAMPT 685,466 739,378 1.079 130 .67 66 86.42 084 93 HAMPT 616,711 640,615 1.039 117 .00 64 74.87 091 93 HAMPT 432,210 446,094 1.032 104 .50 51 53.30 092 93 HAMPT 665,361 684,029 1.028 118 .50 68 80.83 093 93 HAMPT 563,265 579,933 1.030 108 .48 62 67.78 094 93 HAMPT 591,238 608,684 1.030 108 .98 65 71.14 101 93 HAMPT 599,775 623,001 1.039 104 .62 71 74.43 102 93 HAMPT 652,228 688,977 1.056 120 .02 68 81.41 2505 S IH 35 78664 RESIDENCE IN N - ROUND ROC 99 1.200 051 96 RESID 459,764 618,924 1.346 86 .97 82 71.63 052 96 RESID 631,473 764,240 1.210 101 .93 86 87.48 053 96 RESID 558,260 678,060 1.215 98 .06 78 76.77 054 96 RESID 368,413 722,971 1.962 96 .59 85 81.86 061 96 RESID 557,984 787,905 1.412 102 .11 89 91.19 062 96 RESID 609,321 685,571 1.139 115 .44 68 78.48 063 96 RESID 776,786 862,836 1.111 113 .13 86 97.69 064 96 RESID 648,488 821,452 1.267 107 .74 86 93.01 071 96 RESID 671,452 758,830 1.130 107 .74 82 87.83 072 96 RESID 809,410 947,082 1.170 118 .98 91 108.41 073 96 RESID 728,336 898,038 1.233 123 .46 82 101.68 074 96 RESID 675,020 796,196 1.180 116 .62 77 90.15 081 96 RESID 812,579 904,371 1.113 132 .49 79 104.67

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 2505 S IH 35 78664 RESIDENCE IN N - ROUND ROC 99 1.200 082 96 RESID 756,529 861,498 1.139 132 .49 74 98.61 083 96 RESID 705,924 840,681 1.191 129 .88 73 95.19 084 96 RESID 527,242 729,829 1.384 119 .14 69 82.63 091 96 RESID 559,528 688,385 1.230 113 .18 70 79.67 092 96 RESID 698,792 811,533 1.161 127 .65 73 92.90 093 96 RESID 624,644 735,799 1.178 121 .27 69 83.31 094 96 RESID 588,619 698,585 1.187 116 .36 68 79.10 101 96 RESID 613,420 757,476 1.235 111 .71 78 87.67 102 96 RESID 716,333 853,554 1.192 128 .07 76 97.71 1209 N I H 35 78664 WINGATE INN 99 1.060 051 100 WINGT 251,243 284,222 1.131 51 .96 61 31.58 052 100 WINGT 279,384 312,933 1.120 59 .24 58 34.39 053 100 WINGT 324,286 372,572 1.149 64 .85 62 40.50 054 100 WINGT 220,321 259,032 1.176 53 .68 52 28.16 061 100 WINGT 295,598 340,994 1.154 57 .58 66 37.89 062 100 WINGT 390,694 447,566 1.146 72 .59 68 49.18 063 100 WINGT 394,306 430,461 1.092 65 .26 72 46.79 064 100 WINGT 314,347 355,981 1.132 59 .05 66 38.69 071 100 WINGT 411,093 444,670 1.082 69 .05 72 49.41 072 100 WINGT 449,468 494,360 1.100 78 .69 69 54.33 073 100 WINGT 398,891 419,234 1.051 71 .14 64 45.57 074 100 WINGT 364,631 385,124 1.056 66 .89 63 41.86 081 100 WINGT 360,950 405,317 1.123 70 .48 64 45.04 082 100 WINGT 455,507 506,431 1.112 80 .61 69 55.65 083 100 WINGT 363,892 408,127 1.122 73 .34 60 44.36 084 100 WINGT 311,175 331,761 1.066 64 .52 56 36.06 091 100 WINGT 313,501 345,097 1.101 61 .29 63 38.34 092 100 WINGT 338,352 396,624 1.172 71 .29 61 43.59 093 100 WINGT 331,559 349,608 1.054 66 .73 57 38.00 094 100 WINGT 247,329 259,539 1.049 61 .91 46 28.21 101 100 WINGT 248,143 269,408 1.086 57 .60 52 29.93 102 100 WINGT 376,764 399,734 1.061 75 .22 58 43.93 1400 INTERSTATE 78681 CLSD SUPER 8 7/05 FMR RALT 86 1.050 051 60 SUPR8 85,000 90,000 1.059 7 36 .33 46 16.67 052 60 SUPR8 85,000 90,000 1.059 8 37 .78 44 16.48 609 CHISHOLM TR 78681 COMFORT SUIT ES 00 1.100 051 63 COMFS 210,925 224,598 1.065 59 .58 66 39.61 052 63 COMFS 272,107 278,806 1.025 72 .36 67 48.63 053 63 COMFS 233,939 253,869 1.085 72 .13 61 43.80 054 63 COMFS 172,168 200,621 1.165 66 .12 52 34.61 061 63 COMFS 222,514 236,483 1.063 65 .12 64 41.71 062 63 COMFS 252,692 316,170 1.251 76 .76 72 55.15 063 63 COMFS 286,467 290,890 1.015 75 .22 67 50.19 064 63 COMFS 259,980 266,398 1.025 72 .05 64 45.96

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 609 CHISHOLM TR 78681 COMFORT SUIT ES 00 1.100 071 63 COMFS 303,934 320,063 1.053 76 .55 74 56.45 072 63 COMFS 321,226 331,758 1.033 82 .39 70 57.87 073 63 COMFS 286,911 298,674 1.041 76 .98 67 51.53 074 63 COMFS 274,457 282,820 1.030 73 .99 66 48.80 081 63 COMFS 274,715 316,404 1.152 80 .51 69 55.80 082 63 COMFS 294,812 336,816 1.142 83 .55 70 58.75 083 63 COMFS 255,371 306,315 1.199 80 .35 66 52.85 084 63 COMFS 219,291 230,554 1.051 73 .06 54 39.78 091 63 COMFS 246,123 259,302 1.054 72 .26 63 45.73 092 63 COMFS 232,840 249,048 1.070 76 .50 57 43.44 093 63 COMFS 185,785 197,152 1.061 70 .54 48 34.02 094 63 COMFS 160,902 167,818 1.043 64 .80 45 28.95 101 63 COMFS 186,813 201,170 1.077 60 .05 59 35.48 102 63 COMFS 223,569 246,949 1.105 71 .69 60 43.08 1560 N IH 35 78681 COUNTRY INN & SUITES 03 1.100 051 61 CTRYI 119,223 125,739 1.055 54 .50 42 22.90 052 61 CTRYI 175,123 186,755 1.066 58 .76 57 33.64 053 61 CTRYI 153,776 159,103 1.035 56 .58 50 28.35 054 61 CTRYI 140,192 147,257 1.050 51 .71 51 26.24 061 61 CTRYI 164,541 176,043 1.070 54 .71 59 32.07 062 61 CTRYI 270,550 289,663 1.071 72 .52 72 52.18 063 61 CTRYI 209,709 232,995 1.111 66 .17 63 41.52 064 61 CTRYI 209,270 228,296 1.091 58 .80 69 40.68 071 61 CTRYI 300,099 312,105 1.040 68 .80 83 56.85 072 61 CTRYI 311,109 334,880 1.076 79 .67 76 60.33 073 61 CTRYI 265,502 272,671 1.027 72 .03 67 48.59 074 61 CTRYI 233,780 248,119 1.061 68 .63 64 44.21 081 61 CTRYI 243,829 257,173 1.055 71 .24 66 46.84 082 61 CTRYI 254,553 285,663 1.122 79 .35 65 51.46 083 61 CTRYI 220,434 267,052 1.211 76 .10 63 47.59 084 61 CTRYI 144,126 176,431 1.224 63 .51 50 31.44 091 61 CTRYI 147,720 155,963 1.056 59 .38 48 28.41 092 61 CTRYI 167,499 185,759 1.109 61 .65 54 33.46 093 61 CTRYI 130,850 134,947 1.031 58 .37 41 24.05 094 61 CTRYI 91,190 97,595 1.070 50 .44 34 17.39 101 61 CTRYI 132,475 139,430 1.053 49 .49 51 25.40 102 61 CTRYI 155,547 174,731 1.123 58 .30 54 31.48 2700 HOPPE TRAI 78681 COURTYARD BY MARRIOTT 98 1.111 051 113 COURT 424,448 438,573 1.033 71 .30 60 43.12 052 113 COURT 488,196 521,103 1.067 79 .56 64 50.68 053 113 COURT 446,054 451,564 1.012 78 .36 55 43.44 054 113 COURT 399,795 412,148 1.031 73 .44 54 39.64 061 113 COURT 535,632 558,007 1.042 77 .44 71 54.87 062 113 COURT 612,151 629,100 1.028 88 .43 69 61.18 063 113 COURT 571,774 574,284 1.004 81 .86 67 55.24

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 2700 HOPPE TRAI 78681 COURTYARD BY MARRIOTT 98 1.111 064 113 COURT 556,583 564,875 1.015 78 .95 69 54.34 071 113 COURT 659,331 679,913 1.031 88 .55 75 66.85 072 113 COURT 762,004 795,348 1.044 101 .31 76 77.35 073 113 COURT 687,835 715,348 1.040 99 .28 69 68.81 074 113 COURT 608,202 631,133 1.038 93 .37 65 60.71 081 113 COURT 706,635 737,187 1.043 101 .17 72 72.49 082 113 COURT 762,679 814,439 1.068 107 .25 74 79.20 083 113 COURT 668,626 749,955 1.122 103 .68 70 72.14 084 113 COURT 585,786 635,457 1.078 120 .53 51 61.13 091 113 COURT 525,141 574,928 1.095 95 .50 59 56.53 092 113 COURT 572,404 623,488 1.089 105 .50 57 60.63 093 113 COURT 439,235 466,127 1.061 99 .72 45 44.84 094 113 COURT 399,511 424,075 1.061 92 .61 44 40.79 101 113 COURT 478,932 537,717 1.123 86 .40 61 52.87 102 113 COURT 563,437 625,880 1.111 101 .89 60 60.87 1802 S I H 35 78681 DAYS INN INN & SUITES FMR 97 1.060 051 49 DAYS 77,870 80,613 1.035 40 .37 45 18.28 052 49 DAYS 153,795 155,992 1.014 50 .51 69 34.98 053 49 DAYS 156,454 176,497 1.128 57 .56 68 39.15 054 49 DAYS 129,075 160,260 1.242 55 .65 64 35.55 061 49 DAYS 135,535 140,209 1.034 42 .65 75 31.79 062 49 DAYS 198,320 199,426 1.006 61 .02 73 44.72 063 49 DAYS 185,670 197,612 1.064 58 .82 75 43.84 064 49 DAYS 118,325 126,654 1.070 53 .90 52 28.10 071 49 DAYS 164,257 176,994 1.078 58 .50 69 40.13 072 49 DAYS 198,518 215,614 1.086 66 .31 73 48.35 073 49 DAYS 176,150 196,583 1.116 61 .26 71 43.61 074 49 DAYS 179,703 194,996 1.085 60 .03 72 43.26 081 49 DAYS 169,319 187,446 1.107 63 .98 66 42.50 082 49 DAYS 182,904 191,924 1.049 68 .03 63 43.04 083 49 DAYS 161,739 171,088 1.058 64 .97 58 37.95 084 49 DAYS 48,247 53,456 1.108 59 .68 20 11.86 091 49 DAYS 74,297 74,821 1.007 56 .70 30 16.97 092 49 DAYS 96,287 102,064 .000 62 .50 37 22.89 093 49 DAYS 61,948 65,591 1.059 56 .56 26 14.55 094 49 DAYS 105,183 110,891 1.054 52 .35 47 24.60 101 49 DAYS 112,483 116,866 1.039 49 .49 54 26.50 102 49 DAYS 124,674 131,364 1.054 54 .22 54 29.46 2310 N I H 35 78681 HILTON GARDE N INN 99 1.035 051 122 HILTG 446,024 472,479 1.059 72 .32 59 43.03 052 122 HILTG 601,252 625,565 1.040 86 .65 65 56.35 053 122 HILTG 550,565 576,009 1.046 84 .67 61 51.32 054 122 HILTG 469,990 492,802 1.049 77 .39 57 43.91 061 122 HILTG 594,604 611,937 1.029 80 .00 70 55.73 062 122 HILTG 762,743 780,581 1.023 97 .91 72 70.31

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 2310 N I H 35 78681 HILTON GARDE N INN 99 1.035 063 122 HILTG 721,171 742,473 1.030 93 .60 71 66.15 064 122 HILTG 651,727 662,026 1.016 87 .71 67 58.98 071 122 HILTG 793,169 826,219 1.042 94 .50 80 75.25 072 122 HILTG 885,370 907,997 1.026 110 .51 74 81.79 073 122 HILTG 778,524 803,261 1.032 102 .40 70 71.57 074 122 HILTG 674,842 685,042 1.015 95 .45 64 61.03 081 122 HILTG 833,981 856,048 1.026 109 .02 72 77.96 082 122 HILTG 909,694 932,982 1.026 122 .19 69 84.04 083 122 HILTG 808,040 857,340 1.061 119 .37 64 76.38 084 122 HILTG 642,185 667,186 1.039 106 .05 56 59.44 091 122 HILTG 633,327 668,612 1.056 100 .75 60 60.89 092 122 HILTG 712,270 736,527 1.034 112 .75 59 66.34 093 122 HILTG 575,145 581,767 1.012 102 .88 50 51.83 094 122 HILTG 536,425 553,747 1.032 94 .56 52 49.34 101 122 HILTG 638,736 648,093 1.015 91 .74 64 59.02 102 122 HILTG 775,498 808,435 1.042 111 .18 65 72.82 2340 IH 35 N 78681 HOLIDAY I & S FMR AMERISUI 02 1.060 051 91 HOLID 263,398 273,011 1.036 62 .50 53 33.33 052 91 HOLID 346,862 358,515 1.034 71 .24 61 43.29 053 91 HOLID 324,694 346,717 1.068 71 .08 58 41.41 054 91 HOLID 345,126 393,226 1.139 70 .01 67 46.97 061 91 HOLID 372,566 392,752 1.054 74 .01 65 47.96 062 91 HOLID 450,850 471,379 1.046 80 .99 70 56.92 063 91 HOLID 460,968 476,186 1.033 81 .92 69 56.88 064 91 HOLID 425,364 443,587 1.043 78 .32 68 52.98 071 91 HOLID 497,354 514,141 1.034 88 .32 71 62.78 072 91 HOLID 564,261 592,749 1.050 97 .99 73 71.58 073 91 HOLID 496,795 501,763 1.010 90 .74 66 59.93 074 91 HOLID 434,320 451,784 1.040 85 .26 63 53.96 081 91 HOLID 527,487 533,107 1.011 90 .30 72 65.09 082 91 HOLID 515,874 530,068 1.028 98 .82 65 64.01 083 91 HOLID 450,666 491,083 1.028 99 .81 59 58.66 084 91 HOLID 364,018 380,729 1.046 83 .20 55 45.48 091 91 HOLID 291,875 303,888 1.041 75 .24 49 37.10 092 91 HOLID 381,734 402,983 1.056 82 .15 59 48.66 093 91 HOLID 338,521 342,158 1.011 77 .98 52 40.87 094 91 HOLID 253,273 274,711 1.085 70 .60 46 32.81 101 91 HOLID 347,275 361,471 1.041 67 .78 65 44.14 102 91 HOLID 410,000 425,000 1.037 1 82 .17 62 51.32 2004 I-35 NORT 78681 LA QUINTA IN N #905 86 1.100 051 116 LAQUN 298,448 327,129 1.096 53 .51 59 31.33 052 116 LAQUN 397,966 423,582 1.064 62 .93 64 40.13 053 116 LAQUN 432,167 452,054 1.046 65 .26 65 42.36 054 116 LAQUN 379,671 407,123 1.072 57 .68 66 38.15 061 116 LAQUN 368,264 392,144 1.065 57 .68 65 37.56

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 2004 I-35 NORT 78681 LA QUINTA IN N #905 86 1.100 062 116 LAQUN 427,027 470,371 1.102 68 .35 65 44.56 063 116 LAQUN 469,077 492,033 1.049 66 .98 69 46.11 064 116 LAQUN 394,306 418,522 1.050 62 .31 63 39.22 071 116 LAQUN 435,152 460,944 1.059 66 .51 66 44.15 072 116 LAQUN 490,007 505,302 1.031 71 .46 67 47.87 073 116 LAQUN 476,904 504,564 1.058 72 .03 66 47.28 074 116 LAQUN 367,347 394,438 1.074 63 .73 58 36.96 081 116 LAQUN 416,498 446,665 1.072 68 .28 63 42.78 082 116 LAQUN 467,483 500,106 1.070 72 .33 65 47.38 083 116 LAQUN 444,325 495,497 1.115 73 .05 64 46.43 084 116 LAQUN 349,410 386,484 1.106 63 .07 57 36.21 091 116 LAQUN 373,212 396,248 1.062 59 .92 63 37.95 092 116 LAQUN 418,054 452,298 1.082 69 .92 61 42.85 093 116 LAQUN 357,586 369,747 1.034 64 .13 54 34.65 094 116 LAQUN 304,317 325,252 1.069 60 .95 50 30.48 101 116 LAQUN 327,964 360,456 1.099 57 .94 60 34.53 102 116 LAQUN 390,266 448,940 1.150 67 .20 63 42.53 2600 LA FRONTER 78681 MARRIOTT LA FRONTERA 01 1.070 051 295 MARRT 1,829,302 1,877,015 1.026 98 .54 72 70.70 052 295 MARRT 1,944,172 2,049,174 1.054 107 .68 71 76.33 053 295 MARRT 1,652,097 1,735,670 1.051 106 .38 60 63.95 054 295 MARRT 1,622,185 1,731,876 1.068 98 .87 65 63.81 061 295 MARRT 2,193,649 2,296,478 1.047 111 .87 77 86.50 062 295 MARRT 2,755,505 2,887,989 1.048 138 .51 78 107.58 063 295 MARRT 2,311,185 2,397,284 1.037 125 .94 70 88.33 064 295 MARRT 2,086,134 2,229,253 1.069 123 .42 67 82.14 071 295 MARRT 2,672,107 2,762,992 1.034 130 .42 80 104.07 072 295 MARRT 2,648,856 2,771,047 1.046 139 .21 74 103.22 073 295 MARRT 2,429,379 2,492,543 1.026 131 .82 70 91.84 074 295 MARRT 2,231,448 2,344,795 1.051 129 .87 67 86.40 081 295 MARRT 2,647,863 2,675,442 1.010 143 .11 70 100.77 082 295 MARRT 2,430,846 2,566,424 1.056 143 .11 67 95.60 083 295 MARRT 2,353,183 2,434,529 1.035 139 .90 64 89.70 084 295 MARRT 1,942,729 2,162,674 1.113 126 .92 63 79.69 091 295 MARRT 1,874,651 1,996,179 1.065 122 .47 61 75.19 092 295 MARRT 1,898,253 1,982,692 1.044 122 .47 60 73.86 093 295 MARRT 1,871,191 1,960,037 1.047 122 .07 59 72.22 094 295 MARRT 1,801,414 1,939,016 1.076 117 .13 61 71.44 101 295 MARRT 2,232,855 2,312,727 1.036 118 .68 73 87.11 102 295 MARRT 2,065,633 2,242,163 1.085 123 .03 68 83.52 1990 N INTERSTA 78681 RED ROOF INN #302 FMR SLEE 96 1.030 051 107 REDRF 224,376 226,722 1.010 43 .20 54 23.54 052 107 REDRF 297,077 298,554 1.005 51 .48 60 30.66 053 107 REDRF 321,523 333,232 1.036 52 .35 65 33.85 054 107 REDRF 293,312 298,208 1.017 48 .51 62 30.29

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 1990 N INTERSTA 78681 RED ROOF INN #302 FMR SLEE 96 1.030 061 107 REDRF 323,886 327,462 1.011 51 .51 66 34.00 062 107 REDRF 400,706 404,570 1.010 60 .87 68 41.55 063 107 REDRF 420,983 424,743 1.009 62 .59 69 43.15 064 107 REDRF 368,668 370,219 1.004 57 .42 65 37.61 071 107 REDRF 362,062 366,052 1.011 57 .42 66 38.01 072 107 REDRF 399,041 405,710 1.017 65 .30 64 41.67 073 107 REDRF 378,851 391,173 1.033 62 .23 64 39.74 074 107 REDRF 362,985 366,498 1.010 59 .03 63 37.23 081 107 REDRF 359,163 362,008 1.008 60 .40 62 37.59 082 107 REDRF 408,140 414,471 1.016 66 .47 64 42.57 083 107 REDRF 402,386 432,588 1.075 67 .13 65 43.94 084 107 REDRF 302,973 319,348 1.054 59 .27 55 32.44 091 107 REDRF 275,621 279,554 1.014 54 .12 54 29.03 092 107 REDRF 294,643 296,862 1.008 59 .52 51 30.49 093 107 REDRF 248,157 252,140 1.016 55 .96 46 25.61 094 107 REDRF 247,247 249,618 1.010 53 .69 47 25.36 101 107 REDRF 291,835 292,872 1.004 52 .41 58 30.41 102 107 REDRF 286,009 290,864 1.017 54 .24 55 29.87 1980 S INTERSTA 78681 SLEEP INN & SUITES OF ROU 10 .000 102 74 SLEEP 177,393 198,007 1.116 58 .21 51 29.40 2960 HOPPE TRL 78681 SPRINGHILL S UITES BY MARRI 00 1.100 051 104 SPRNG 340,368 364,709 1.072 62 .58 62 38.96 052 104 SPRNG 427,882 449,929 1.052 70 .28 68 47.54 053 104 SPRNG 425,223 450,192 1.059 71 .84 65 47.05 054 104 SPRNG 359,327 403,504 1.123 65 .74 64 42.17 061 104 SPRNG 418,122 469,879 1.124 73 .54 68 50.20 062 104 SPRNG 580,556 625,398 1.077 87 .36 76 66.08 063 104 SPRNG 518,205 549,454 1.060 79 .93 72 57.43 064 104 SPRNG 524,130 552,539 1.054 78 .33 74 57.75 071 104 SPRNG 574,355 609,853 1.062 82 .53 79 65.16 072 104 SPRNG 623,106 673,969 1.082 94 .09 76 71.21 073 104 SPRNG 551,175 583,435 1.059 83 .39 73 60.98 074 104 SPRNG 544,137 567,996 1.044 81 .72 73 59.36 081 104 SPRNG 594,900 657,498 1.105 89 .55 78 70.25 082 104 SPRNG 669,278 712,522 1.065 99 .68 76 75.29 083 104 SPRNG 523,884 585,398 1.117 93 .81 65 61.18 084 104 SPRNG 433,387 461,154 1.064 82 .42 58 48.20 091 104 SPRNG 410,438 464,224 1.131 78 .30 63 49.60 092 104 SPRNG 446,036 489,569 1.098 85 .30 61 51.73 093 104 SPRNG 409,549 426,973 1.043 80 .03 56 44.63 094 104 SPRNG 330,731 354,470 1.072 71 .99 51 37.05 101 104 SPRNG 413,580 453,037 1.095 71 .61 68 48.40 102 104 SPRNG 526,967 589,586 1.119 88 .07 71 62.30 520 S INTERSTAT 78681 STAYBRIDGE S UITES 01 1.300 051 81 STAYB 210,717 390,552 1.853 72 .57 74 53.57

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 520 S INTERSTAT 78681 STAYBRIDGE S UITES 01 1.300 052 81 STAYB 335,409 394,794 1.177 80 .67 66 53.56 053 81 STAYB 319,177 411,385 1.289 85 .63 64 55.20 054 81 STAYB 253,341 388,321 1.533 78 .80 66 52.11 061 81 STAYB 341,543 403,247 1.181 83 .50 66 55.32 062 81 STAYB 434,473 515,614 1.187 96 .84 72 69.95 063 81 STAYB 339,011 517,908 1.528 93 .63 74 69.50 064 81 STAYB 316,219 462,492 1.463 89 .70 69 62.06 071 81 STAYB 435,791 505,391 1.160 93 .50 74 69.33 072 81 STAYB 487,955 576,683 1.182 106 .40 74 78.24 073 81 STAYB 399,067 500,031 1.253 99 .37 68 67.10 074 81 STAYB 391,896 451,387 1.152 93 .46 65 60.57 081 81 STAYB 368,083 433,188 1.177 94 .71 63 59.42 082 81 STAYB 457,658 553,986 1.210 111 .93 67 75.16 083 81 STAYB 490,163 562,506 1.148 113 .05 67 75.48 084 81 STAYB 359,744 456,102 1.268 92 .16 66 61.21 091 81 STAYB 379,333 441,306 1.163 89 .45 68 60.54 092 81 STAYB 425,207 458,402 1.078 98 .45 63 62.19 093 81 STAYB 365,414 439,163 1.202 99 .67 59 58.93 094 81 STAYB 307,441 401,630 1.306 95 .64 56 53.90 101 81 STAYB 349,142 410,737 1.176 88 .84 63 56.34 102 81 STAYB 341,983 461,259 1.349 94 .53 66 62.58 1950 N INTERSTA 78681 VALUE PLACE HOTEL 08 3.000 082 121 VALUP 251,968 376,800 .000 38 .00 90 34.22 083 121 VALUP 180,468 353,900 1.961 37 .88 84 31.79 084 121 VALUP 38,296 322,925 1.798 36 .44 80 29.01 091 121 VALUP 90,525 257,153 1.667 34 .62 68 23.61 092 121 VALUP 120,073 263,963 2.198 34 .62 69 23.97 093 121 VALUP 88,779 241,915 2.725 31 .64 69 21.73 094 121 VALUP 46,645 182,464 3.912 28 .44 58 16.39 101 121 VALUP 78,874 261,625 3.317 29 .33 82 24.02 102 121 VALUP 88,814 225,387 2.538 29 .18 70 20.47 16950 N IH 35 78728 EXTENDED STA Y AMERICA 6197 03 1.850 051 104 EXTSA 147,057 226,905 1.543 33 .12 73 24.24 052 104 EXTSA 182,646 272,225 1.490 34 .44 84 28.76 053 104 EXTSA 155,258 238,375 1.535 35 .71 70 24.91 054 104 EXTSA 135,311 312,374 2.309 39 .90 82 32.65 061 104 EXTSA 157,528 256,612 1.629 38 .50 71 27.42 062 104 EXTSA 225,030 323,487 1.438 47 .10 73 34.18 063 104 EXTSA 215,325 350,872 1.629 48 .51 76 36.67 064 104 EXTSA 169,684 278,492 1.641 43 .62 67 29.11 071 104 EXTSA 206,019 353,415 1.715 46 .52 81 37.76 072 104 EXTSA 249,280 413,486 1.659 53 .99 81 43.69 073 104 EXTSA 235,437 346,328 1.471 50 .56 72 36.20 074 104 EXTSA 214,817 292,247 1.360 46 .61 66 30.54 081 104 EXTSA 257,220 378,803 1.473 49 .72 81 40.47

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 16950 N IH 35 78728 EXTENDED STA Y AMERICA 6197 03 1.850 082 104 EXTSA 259,183 323,228 1.247 48 .71 70 34.15 083 104 EXTSA 243,126 352,040 1.448 51 .22 72 36.79 084 104 EXTSA 162,140 234,677 1.530 45 .78 54 24.53 091 104 EXTSA 171,751 236,852 1.404 43 .49 58 25.30 092 104 EXTSA 196,059 315,136 1.607 47 .49 70 33.30 093 104 EXTSA 158,999 275,921 1.735 45 .32 64 28.84 094 104 EXTSA 122,966 274,938 2.236 43 .48 66 28.74 101 104 EXTSA 124,104 232,378 1.872 39 .36 63 24.83 102 104 EXTSA 160,647 263,271 1.639 40 .79 68 27.82 14620 N IH 35 78728 HOLIDAY EXPR ESS FMR QUALIT 99 1.070 051 84 HIEXP 341,448 373,714 1.094 70 .57 70 49.43 052 84 HIEXP 437,707 470,873 1.076 85 .87 72 61.60 053 84 HIEXP 422,369 464,248 1.099 89 .05 67 60.07 054 84 HIEXP 385,069 423,370 1.099 82 .30 67 54.78 061 84 HIEXP 437,262 466,721 1.067 82 .30 75 61.74 062 84 HIEXP 552,588 568,470 1.029 90 .29 82 74.37 063 84 HIEXP 509,576 552,262 1.084 91 .72 78 71.46 064 84 HIEXP 510,867 527,241 1.032 90 .67 75 68.22 071 84 HIEXP 527,882 563,601 1.068 93 .67 80 74.55 072 84 HIEXP 593,242 647,222 1.091 106 .57 79 84.67 073 84 HIEXP 564,969 599,997 1.062 105 .42 74 77.64 074 84 HIEXP 522,877 542,565 1.038 103 .31 68 70.21 081 84 HIEXP 571,914 599,161 1.048 106 .62 74 79.25 082 84 HIEXP 599,530 628,994 1.049 113 .71 72 82.29 083 84 HIEXP 552,211 618,826 1.121 114 .85 70 80.08 084 84 HIEXP 456,096 491,011 1.077 105 .20 60 63.54 091 84 HIEXP 508,038 544,505 1.072 99 .94 72 72.02 092 84 HIEXP 539,789 563,239 1.043 105 .94 70 73.68 093 84 HIEXP 417,686 468,310 1.121 103 .07 59 60.60 094 84 HIEXP 375,302 385,681 1.028 91 .22 55 49.91 101 84 HIEXP 404,542 434,245 1.073 87 .57 66 57.44 102 84 HIEXP 469,981 505,812 1.076 87 .13 76 66.17 150 PARKER DR 78728 LA QUINTA IN N FMR BAYMT CH 98 1.055 051 85 BAYMT 256,930 261,068 1.016 53 .59 64 34.13 052 85 BAYMT 264,956 278,080 1.050 56 .77 63 35.95 053 85 BAYMT 262,522 271,463 1.034 58 .87 59 34.71 054 86 LAQUN 206,676 231,527 1.120 55 .03 53 29.26 061 86 LAQUN 330,196 353,297 1.070 55 .03 83 45.65 062 86 LAQUN 393,712 423,324 1.075 70 .94 76 54.09 063 86 LAQUN 365,712 396,889 1.085 70 .56 71 50.16 064 86 LAQUN 346,264 374,304 1.103 66 .21 71 47.31 071 86 LAQUN 419,333 440,133 1.050 71 .51 80 56.86 072 86 LAQUN 483,195 508,837 1.053 83 .79 78 65.02 073 86 LAQUN 418,141 452,010 1.081 74 .27 77 57.13 074 86 LAQUN 376,788 399,837 1.061 73 .76 69 50.54

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E 3 YR AVG CITY ADDR ZIP S E ST 4 OP ADJ 1 ---- ---- --- T A VG. % -- ----- # TAXABLE GROSS ADJ 1 DA ILY OCC $ 5 YRQ RMS BRAND REVENUE REVENUE FACTOR 2 R ATE EST REVPAR --- ---- ----- ------- -------- ------ - -- --- --- ------ ROUND ROCK 150 PARKER DR 78728 LA QUINTA IN N FMR BAYMT CH 98 1.055 081 86 LAQUN 420,022 445,672 1.061 76 .38 75 57.58 082 86 LAQUN 411,372 452,695 1.100 80 .63 72 57.85 083 86 LAQUN 428,687 454,572 1.060 81 .44 71 57.45 084 86 LAQUN 404,744 423,013 1.045 77 .99 69 53.46 091 86 LAQUN 408,307 426,009 1.043 75 .61 73 55.04 092 86 LAQUN 401,917 420,273 1.046 75 .61 71 53.70 093 86 LAQUN 353,247 366,678 1.038 73 .56 63 46.34 094 86 LAQUN 280,768 291,380 1.038 66 .69 55 36.83 101 86 LAQUN 313,972 329,434 1.049 64 .98 65 42.56 102 86 LAQUN 369,931 393,042 1.062 73 .61 68 50.22 ENDNOTES: --------- 1. Factor used to adjust taxable to gross revenues . Area factor used if property data not available. Taxable equals 89 % of gross Statewide. 2. A number or a 'Y' indicates quarter's revenues were estimated. 3. Estimated Average Daily Rate (e.g. 60-85% of 'r ack single'); 4. Occupancy derived from calculated roomnights so ld (gross room revenues divided by Average Daily Rate), divided by ro omnights available. 5. Total REVenues Per Available Room per day, or ' REVPAR'; Prepared from State Comptroller, chain directories and private records. Includes all quarterly reports exceeding $18,000 ( otherwise omitted). SOURCE STRATEGIES, INC. 09/22/10 (210) 734-3434. PROPS.FEX

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EXHIBIT IV PERIOD: TWELVE MONTHS ENDING J UNE 30, 2010 LODGING MARKET: TEXAS EXCLUDING HIGHEST P RICED SEGMENTS # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS ELEMENT 1 .2 .1 36 .1 4,096 .1 54.3 112.31 60.99 EMBASSY 21 4.7 1.5 1,096 1.8 150,498 3.6 64.3 137.36 88.28 HOMEWOOD 41 4.0 1.3 941 1.6 106,278 2.6 63.9 112.89 72.14 RESIDENCE 54 6.3 2.0 1,490 2.5 165,689 4.0 65.3 111.18 72.55 STAYBRIDG 24 2.6 .8 570 .9 57,550 1.4 60.2 101.00 60.83 SUMMERFLD 9 1.3 .4 280 .5 27,524 .7 59.9 98.24 58.82 OTH SUITE 13 3.1 1.0 674 1.1 87,157 2.1 60.2 129.39 77.96 TOT SUITES 164 22.1 7.1 5,087 8.4 598,792 14.5 63.1 117.70 74.28 4 POINTS 4 .6 .2 118 .2 10,556 .3 51.7 89.43 46.24 ALOFT 6 .9 .3 172 .3 20,362 .5 53.0 118.31 62.74 COURTYARD 69 9.1 2.9 1,887 3.1 195,044 4.7 56.8 103.38 58.74 CROWNPLZA 14 4.6 1.5 890 1.5 84,124 2.0 53.5 94.51 50.61 DOUBLTREE 8 2.3 .7 498 .8 57,297 1.4 58.8 115.07 67.63 HILT GARD 36 5.1 1.6 1,118 1.9 124,341 3.0 60.6 111.20 67.42 HOLID INN 52 10.2 3.3 2,017 3.3 175,695 4.3 53.9 87.09 46.97 HYATT PLC 19 2.3 .7 518 .9 54,317 1.3 61.2 104.95 64.20 INDIGO 2 .3 .1 64 .1 6,584 .2 56.8 102.59 58.28 RADIS HTL 14 3.0 1.0 572 .9 46,367 1.1 51.6 81.04 41.81 SHERATON 12 5.2 1.7 1,079 1.8 114,868 2.8 57.3 106.44 61.00 OTHER MUP 2 .3 .1 74 .1 7,376 .2 64.6 100.29 64.77 TOT MID/UPS 238 43.9 14.1 9,007 14.9 896,930 21.7 56.2 99.58 55.94 CAMBRIA 1 .1 .0 23 .0 2,264 .1 50.1 98.33 49.23 CANDLWOOD 39 3.7 1.2 761 1.3 50,459 1.2 57.0 66.27 37.77 COMFO STE 109 7.3 2.3 1,390 2.3 107,753 2.6 52.5 77.54 40.68 HAWTHORN 15 1.6 .5 283 .5 22,512 .5 49.0 79.42 38.94 QUAL STES 3 .2 .1 36 .1 2,410 .1 46.9 67.08 31.45 SPRNGHILL 26 3.0 1.0 623 1.0 57,128 1.4 57.3 91.74 52.56 TOWNPLACE 21 2.2 .7 440 .7 35,606 .9 55.1 80.88 44.55 OTHER MIN 10 1.0 .3 211 .3 15,838 .4 60.3 75.11 45.29 TOT MIN STE 224 19.0 6.1 3,767 6.2 293,970 7.1 54.4 78.03 42.47 BEST WEST 241 14.9 4.8 2,841 4.7 193,751 4.7 52.2 68.19 35.63 CNTRY INN 17 1.2 .4 229 .4 15,158 .4 51.6 66.11 34.10 COMFO INN 84 5.6 1.8 1,002 1.7 65,312 1.6 49.4 65.17 32.18 DRURY INN 18 2.9 .9 624 1.0 59,731 1.4 58.3 95.73 55.79 FAIRFIELD 55 4.6 1.5 949 1.6 78,492 1.9 56.0 82.75 46.32 HAMPTON 140 12.1 3.9 2,642 4.4 258,260 6.3 59.9 97.76 58.61 HOLID EXP 200 15.4 5.0 3,260 5.4 298,354 7.2 57.9 91.52 53.00 LA QUINTA 201 20.0 6.4 3,948 6.5 280,145 6.8 54.2 70.97 38.44 SLEEP INN 30 2.0 .6 372 .6 23,248 .6 51.3 62.56 32.11 WINGATE 11 1.0 .3 208 .3 15,860 .4 57.7 76.17 43.99 TOT LTD SVE 998 79.7 25.7 16,074 26.6 1,288,312 31.2 55.3 80.15 44.29 BUDG STES 11 4.0 1.3 940 1.6 30,327 .7 64.4 32.26 20.79 EXT AMERI 42 4.5 1.5 1,025 1.7 48,523 1.2 62.1 47.35 29.42 HOMESTEAD 15 2.0 .6 460 .8 18,763 .5 64.0 40.82 26.13 INTOWN ST 30 3.9 1.2 943 1.6 28,614 .7 66.9 30.36 20.30 STUDIO + 7 .6 .2 148 .2 6,542 .2 62.9 44.23 27.83

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PERIOD: TWELVE MONTHS ENDING J UNE 30, 2010 LODGING MARKET: TEXAS EXCLUDING HIGHEST P RICED SEGMENTS # * EST. $ EST. #* RMS % RNS % AMT. % EST. $ $ BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR ----- --- ---- ---- ------ ---- -------- ---- ---- ----- ---- CHAINS STUDIO 6 25 2.8 .9 622 1.0 24,977 .6 60.3 40.18 24.22 VALUE PLC 33 4.0 1.3 933 1.5 26,731 .6 64.1 28.64 18.35 OTHER EXT 29 3.4 1.1 711 1.2 26,474 .6 57.9 37.22 21.54 TOT EXT STA 192 25.2 8.1 5,781 9.6 210,951 5.1 62.9 36.49 22.96 BAYMONT 28 2.4 .8 420 .7 22,028 .5 48.0 52.49 25.21 BST VALUE 101 6.4 2.1 1,042 1.7 37,468 .9 44.5 35.96 16.01 BUDGETEL 0 .0 .0 1 .0 74 .0 14.8 55.04 8.17 CLARION 7 1.0 .3 149 .2 7,763 .2 41.9 52.26 21.90 DAYS INN 137 9.5 3.1 1,574 2.6 77,078 1.9 45.5 48.97 22.29 ECONOLODG 50 2.8 .9 459 .8 20,703 .5 45.1 45.13 20.35 HO JO 32 2.8 .9 440 .7 21,202 .5 43.4 48.14 20.88 MICROTEL 20 1.2 .4 229 .4 11,376 .3 50.7 49.75 25.21 MOTEL 6 110 10.9 3.5 2,357 3.9 91,056 2.2 59.0 38.63 22.80 QUALITY 62 5.1 1.6 838 1.4 47,812 1.2 45.1 57.03 25.70 RAMADA 41 4.0 1.3 620 1.0 30,289 .7 42.5 48.83 20.75 RED ROOF 26 3.1 1.0 552 .9 25,471 .6 49.2 46.10 22.66 RODEWAY 33 1.9 .6 311 .5 13,702 .3 44.0 44.11 19.40 SUPER 8 156 9.2 3.0 1,673 2.8 83,441 2.0 49.8 49.87 24.83 TRAVELODG 23 1.8 .6 298 .5 13,581 .3 44.4 45.53 20.24 OTHER BUD 87 4.3 1.4 693 1.1 29,155 .7 43.7 42.05 18.37 TOT BUDGET 913 66.5 21.4 11,657 19.3 532,199 12.9 48.0 45.65 21.92 TOT CHAINS 2,729256.4 82.6 51,374 85.0 3,821,154 92.5 54.9 74.38 40.84 TOT INDEP 1,133 54.1 17.4 9,048 15.0 310,888 7.5 45.8 34.36 15.73 TOT MARKET 3,863310.5 100.0 60,423 100.0 4,132,042 100 53.3 68.39 36.46 * All figures annualized. Includes taxed and est n on-tax room revenues.

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EXHIBIT V

A STUDY OF THE EFFECT OF HOTEL SIZE ON PERFORMANCE IN THE TEXAS HOTEL INDUSTRY

THE CASE FOR DOWNSIZING NEW HOTELS

11/30/99 By Douglas W. Sutton and Bruce H. Walker

Source Strategies has long contended that the numbe r of rooms a developer offers

in a new property is one of the key factors in dete rmining a venture's relative

success or failure. It is every bit as important t o size a hotel project

properly as it is to select the appropriate brand, and to develop in a suitable

market and location. We have previously conducted extensive studies of the

lodging market that support our hotel sizing conten tion, and we have taken this

opportunity to re-examine the issue using our exten sive database of hotel and

motel performance for the State of Texas.

Before delving into the numbers that define the rol e of room count in a hotel's

performance, we should first highlight the basic in dustry theory of 'right-

sizing' a property. The premise offered by many in experienced developers is "If

I can make a profit constructing a 50 room hotel in a given market, it would be

twice as profitable to develop 100 rooms." In virt ually all cases nothing could

be farther from the truth. At some point adding ro oms to a project reaches a

point of diminishing returns, and the investment in the additional rooms cannot

be economically justified.

To illustrate this point, mentally divide our hypot hetical 100 room project into

two 50 room hotels. The initial 50 rooms may perfo rm very well, with occupancies

over 70% and a very strong rate structure. However , the second 50 rooms are only

utilized when there is overflow from the first hote l because its rooms are 100%

occupied. Effectively, the second 50 rooms may onl y attain an occupancy of 30%

or less. This low level of occupancy may prompt th e general manager to lower

rates to bolster occupancy, but this is a losing ba ttle. Ultimately,

overbuilding causes REVPAR erosion in the property, and in the market as a whole.

Today's developers and lenders would not seriously consider involvement in a 50

room project operating at this low level, but often times they accomplish the

same end by pushing for more rooms in a project tha n the market can effectively

support. If we now mentally put these two 50 room properties back together (one

operating at 70%, the other at 30% occupancy), what we end up with is an

oversized 100 room hotel that is running a mediocre 50% occupancy.

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Over-sizing a hotel makes it difficult, if not impo ssible, to be competitive in a

marketplace. There are a finite number of roomnigh ts sold to be divided among

existing hotels in the market, and developing a mor e conservatively sized

property helps insure that a profitable level of th ose roomnights can be

captured. Building a hotel is not the 'Field of Dr eams'.... If you build it -

they won't come.... With the exception of destinat ion resorts and some unique

convention hotels, people do not go someplace becau se there is a hotel. Rather,

they stay in a hotel because they want to be near s omeplace.

Builders who construct too many rooms usually put t hemselves in unenviable

financial situations. Many hotels which we see put up for sale were developed

with far too many rooms. The owners, having had di fficulty getting a return on

their investment, are often trying to get out from under a bad investment. There

are even drastic cases of properties bulldozing ent ire wings to provide

additional parking, because those extra rooms are a financial burden, remaining

unsold the vast majority of the time.

Now that we've outlined the basic economic benefits of 'building small', let's

look into hotel performance numbers and see if they support this development

principle. We analyzed two separate hotel sampling s: First we will look at

Comfort Inns across Texas as a selected brand sampl ing. Then we will look at all

branded hotels built during a given period of time for a more diverse sampling.

COMFORT INN - ANALYSIS OF SIZING AND ITS IMPACT ON PERFORMANCE

In our initial analysis, we selected a sampling of Texas Comfort Inn branded

properties ranging in size from 36 to 75 rooms; th ey are all 'Limited Service'

hotels. We excluded those properties located in ex clusive, higher priced

markets, since they would naturally support larger room counts while maintaining

strong performance levels and would distort the fin dings. The resulting sample

included 55 Comfort Inn hotels located across Texas .

The following chart of performance statistics from the latest year on file (12

months ending September 30, 1999) clearly illustrat es the consistent curve,

showing marked declines in performance as room coun t increases. This decline was

exhibited in all three measures shown, Occupancy, A verage Daily Rate, and REVPAR:

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Year Ending 6/30/99 Results Average # of Daily Units Occupancy Rate REVP AR 36-40 66.9 55.25 36. 95 41-45 65.3 57.34 37. 45 46-50 66.5 57.38 38. 17 51-55 62.8 56.02 35. 20 56-60 61.8 54.26 33. 55 61-65 56.6 55.33 31. 33 66-70 44.6 45.71 20. 41 71-75 43.8 44.20 19. 38 Combined: 52 63.2 55.46 35. 03 Looking only at occupancy, the following graph give s a clear depiction of the

notable negative impact of larger room counts on a hotel's ability to maintain an

acceptable level of roomnights sold. Properties wi th lower room counts were

clearly able to sustain a higher level of occupancy . Average occupancy ranged

from 66.9% for properties of 36-40 rooms, downward to a much lower 43.8% average

occupancy for properties in the 71-75 room size bra cket.

When looking at REVPAR, the following graph follows a very similar performance

curve, ranging from an average REVPAR of $36.95 for properties of 36-40 units,

downward to a mediocre $19.38 average REVPAR for pr operties in the 71-35 unit

size bracket. Note that the downward slide in both graphs did not begin until

room counts exceeded 35 units. Prior to that, a mi ld upward trend is

experienced. This appears to indicate that, on ave rage, 50 rooms is the

'optimum' size for a Comfort Inn in Texas markets ( excluding high priced areas).

Of course, this is an average number for this type of market. Each project must

be examined on an individual basis to determine the proper size to develop within

its given market.

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The above chart and graphs clearly illustrates that Developers often missed the

mark, building more rooms than 'optimum.' 'Optimum ' is defined as generating the

highest return on invested capital, and is closely tied to occupancy and REVPAR

generation.

Analyzing the above data provides a measure of the effect of over building. For

the typical range of rooms for Comfort Inn projects (40-75 rooms) outside of

higher priced areas, the occupancy dropped 23.1 poi nts (a full 35%) from 66.9% to

43.8% as room counts escalated. With a 35 room inc rease in rooms from the 36-40

room size bracket to the 71-75 room size bracket, a resulting 35% drop in

occupancy is experienced.

The key question, is how to apply this principle to a given hotel project.

Naturally, each project would have to be judged on its individual merits, but

looking at an 'average' project for a single brand and product is very revealing.

All are Comfort Inns. All are very similar product s in similar market

environments, leaving size as the major variable in performance.

In our sampling, the average project is 65 rooms in size. At this size, the

average occupancy is 62.8%. If we built 36% fewer rooms (42 rooms) our average

occupancy would rise a moderate 6.5% to 66.9%. Con versely, if we built 36% more

than average, (71 rooms) our average occupancy plum mets by 42.5% to 43.8%.

Clearly there are some basic economic principles at work. Comfort Inns are

conservatively-sized. Building smaller than the av erage of 65 rooms yields

slightly higher occupancies, but the ability to cha rge ever higher rates as size

decreases is marginal. As rates rise, some consume rs perceive lost value and

will stay at another property. On the other side o f the coin, properties built

larger than the average 65 rooms suffer serious occ upancy declines. At some

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point the need for additional rooms that was envisi oned by the optimistic

developer is simply not there, and the extra rooms only serve to depress the

overall performance of the property.

BRANDED HOTELS - ANALYSIS OF SIZING AND ITS IMPACT ON PERFORMANCE

In our second analysis, we selected a sampling of a ll Texas branded hotels

constructed from 1970-1975; 91 properties across T exas, predominantly 'Full

Service'. Our sampling was limited to hotels of le ss than 135 rooms. We once

again excluded those properties located in exclusiv e, higher priced markets. For

our analysis we examined performance results from t he year 1985 when all subject

hotels were 10 to 15 years old, well into their agi ng life cycles.

The following chart of performance statistics from 1985 for branded properties

throughout Texas clearly illustrates the downward c urve, with definite erosion in

performance measures as room count increases:

1985 Performance Results Average # of # of Daily Hotels Units Occupancy Rate REVPAR 2 00-44 70.0 37.88 26.50 3 45-59 73.9 36.13 26.71 7 60-74 66.8 31.10 20.77 14 75-89 62.7 31.65 19.86 29 90-104 60.9 32.42 19.75 16 105-119 57.8 26.25 15.18 20 120-134 55.5 29.35 16.28 Combined: 91 98 59.8 30.34 18.14 With occupancy declines being the strongest indicat or of the negative impact of

building too large, the following graph provides a clear picture of the

descending performance slide as room counts increas e. Once again, properties

with lower room counts were more insulated from mar ket competition and were

therefore able to be more competitive in both favor able and depressed market

environments. Average occupancy ranged from 70% fo r properties of 58 rooms or

less, downward to a much lower 55.5% average occupa ncy for properties in the 120-

134 room size bracket, after peaking at 73.9% in th e 45-59 size range.

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As with the Comfort Inn analysis, the above data pr ovides a measure of the effect

of over building. However, since a number of varyi ng brands are considered in

this sample, the typical range in size of these pro jects ranges from about 40 to

135. This is a wider range than the Comfort sampli ng, since many of the brands

in this sample typically have larger room counts th an a Comfort Inn. This is

partially due to some brands' ability to support hi gher room counts, and

partially due to the tendency to overbuild in the e arly 1970s, when all hotels in

this sample were constructed.

While the 65 room average for our Comfort Inn sampl e is reasonably close to

optimum sizing for that brand, the 98 room average for this analysis appears to

be oversized. In our assessment, the optimum avera ge number of rooms for this

sampling would have been 60 to 41 rooms, depending upon brand. In 1985, this

roomcount supported occupancies near 70%, with an a verage REVPAR of almost $27.

Compare this to the average capacity of 98 rooms at taining a much lower average

occupancy of 60.9% and REVPAR below $20. Clearly t his lower level of performance

can be attributed to over-sizing projects in the ea rly 1970s.

Looking at our average (oversized) roomcount of 98 rooms, increasing the size by

30% (135 rooms) would cause occupancy to slide 10% from 60.9% to 55.5%. On the

other hand, making the average project smaller (58 rooms, or 75% smaller) would

improve occupancy to 73.9%, or a healthy 21% increa se.

For the sake of comparison, let us assume that the average property was more

appropriately sized at about 58 rooms. If the proj ect size were increased to 135

rooms, the largest range in our sample, occupancy w ould suffer a significant 33%

decline from optimum levels.

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Of course this assumes that locational differences are not significant. We

believe this is true; the large sample and clear c orrelation between size and

performance support this conclusion.

SUMMARY

The data is clear. In most cases, small hotels out perform large hotels, with the

exception of higher-priced markets where competitiv e barriers to entry exist

(e.g. lack of land, excessive land cost, building r estrictions, etc.).

Common sense explains this occurrence: a successfu l 100 room hotel will

inevitably prompt the development of one or more ne w, small hotels of similar

quality in the immediate area. In a competitive ma rket environment, the smaller

hotel has a distinct advantage and wins - almost ev ery time.

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EXHIBIT VI

START-UP PERFORMANCE OF NEW HOTELS AND MOTELS

A new study by Source Strategies, Inc., utilizing a ll new chain hotels opened in

Texas between 1990 and 1994, shows that new hotels and motels provide their peak

performance in Years III through V, when they typic ally reach 112% of their 20-

year average REVPAR performance level.

In other words, the newness of a property is an adv antage on the order of a 12%

premium in Years III through V - versus the average REVPAR that would otherwise

be expected for that property over a twenty-year pe riod. That's because the

consumer almost always picks new over old because, to them, 'new' means 'clean'

and 'new' means 'value.' Perhaps this is not news to many, but it is highly

important to those who forecast the performance of new properties.

Here's what the graph looks like for the first twel ve years for new properties

opened in the moderately-good and improving markets of the 1990's. The years

after peak are projected based on two major previou s studies: one by Limited

Service in the early 1980's and the second last yea r by Source Strategies, Inc.

Year I at 92% of the 20 Year Average, Year II at 10 7%

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The study found that a property could expect a REVP AR at Year I of 92% of the

twenty-year average for a project. In Year II, thi s would move to 107% and to

112% in Years' III through V.

For example, if over the twenty-year span of the pr oject, we expect a

hypothetical new hotel to generate 105% of the mark et average REVPAR, this means

that in Year I it would generate 97% of market (105 % times 92%), and in Year II

112% (105% times Year II's 107%), and then peak at 118% for Years III-V.

Study Method

The underlying design for this study was to determi ne what effect a property's

age had on its REVPAR during the first five years o f operation.

From two other studies, we know that properties wil l decline at 1.67% per year,

versus the market average, over long periods of tim e. The second study sample

consisted of all new Texas development in the early 1980's, a time of major

under-supply. Consequently, the first few years pe rformance of this group of

hotels and motels was probably be overstated - vers us the current, more-normal

times. The current study confirmed that belief.

The current study's design was to develop the REVPA R index for every new chain

property (each new property's REVPAR, divided by th e REVPAR of all nearby hotels

and motels). Then all the resulting indices were a veraged.

This process was done for each year of development, 1990, 1991, 1992, 1993 and

1994, in order to obtain data for "Year I," "Year I I" and so on. These were

averaged as well to obtain an over-all, average Yea r I result.

This process produced the graph curve shown above, and is reflective of the

particular mix of chain properties, a mix which pro duced REVPAR slightly above

the market average. To eliminate the effect of a s pecific mix of chains, the

scale was moved down slightly, so that the applicat ion of the year-by-year REVPAR

indices to any project would result in averaging 10 0 of the first twenty years of

the project.

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REVPAR OF ALL NEW CHAIN HOTELS OPENED 1990-1994 INCLUDES THEIR LOCAL MARKET AVERAGES (SAME ZIP-CODES)

Opened 1990 Year I Year II Year III Year IV Year V Year VI 9 Chain hotels 41.97 49.45 54.76 54.17 59.45 66.16 Local Market Average 35.38 37.40 39.72 39.71 43.31 48.87 Index New Chain/Market 119 132 138 136 137 135 (Peak) Opened 1991 Year I Year II Year III Year IV Year V Year VI 8 Chain hotels 32.06 37.95 41.49 44.18 46.26 Local Market Average 29.96 31.26 32.36 33.04 33.70 est Index New Chain/Market 107 121 128 134 137 135 (Peak) Above assumes Year VI index decline of 1.67% Opened 1992 Year I Year II Year III Year IV Year V Year VI 7 Chain hotels 25.07 36.53 39.76 41.74 Local Market Average 30.60 33.62 34.36 37.49 est est Index New Chain/Market 82 109 116 111 111 109 (Peak) Above assumes Year V is "flat" and Year VI ind ex declines by 1.67% Opened 1993 Year I Year II Year III Year IV Year V Year VI 16 Chain hotels 24.51 29.15 33.19 Local Market Average 30.70 31.88 35.27 est est est Index New Chain/Market 80 91 94 94 93 91 (Peak) (Peak) Above assumes Year III and IV are Peak, and Ye ar V and Year VI index

declines by 1.67% annually

Opened 1994 Year I Year II Year III Year IV Year V Year VI 29 Chain hotels 30.40 35.97 Local Market Average 38.68 41.29 est est est est Index New Chain/Market 79 87 90 89 87 86 Above assumes Year III and Year IV Peak equals Year II plus 4%, as above, and

Year V and Year VI index declines by 1.67% annually

Peak COMBINED INDICES Year I Year II Year III Year IV Year V Year VI Average of Raw Data 93 108 113 113 113 111 Adjusted 100 over 20 years 92 107 112 112 112 110

After Year V, Declines Average 1.67% Per Annum In the sixth year and thereafter, the twenty-year a verage REVPAR index is

diminished at a rate of 1.67% per annum in order to reflect aging and the normal

life-cycle of a hotel.

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This pattern of declining performance with property aging is based on major

studies of economic life-cycle patterns, studies wh ich were conducted on a census

of all 25,000 Texas rooms built between 1980 and 19 82 (study published in

September 1994 issues of MarketShare and the Octobe r 1994 issue of Hotel & Motel

Management). These Source Strategies studies confi rm a similar, major study

conducted in 1982 at the Holiday corporation on 160 company-owned and company-

operated hotels.

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EXHIBIT VII

CapEx: A STUDY OF CAPITAL EXPENDITURES IN THE US H OTEL INDUSTRY

THE FOLLOWING IS A SUMMARY OF THE INTERNATIONAL SOCIETY OF HOSPITALITY

CONSULTANTS' 2000 "CAPEX STUDY, A STUDY OF CAPITAL EXPENDITURES IN THE US HOTEL

INDUSTRY" AS IT APPLIES TO LIMITED SERVICE PROPERTI ES:

The objective of our historical analysis in CapEx 2 000 was to determine what has

been spent in the past to maintain a hotel in good, competitive condition. Hotel

owners and management companies were contacted to p rovide data for the study.

Definition of CapEx

"Capital Expenditure" is defined as: investments o f cash or the creation of

liability to acquire or improve an asset, e.g., lan d, buildings, building

additions, site improvements, machinery, equipment; Comparatively, the "reserve

for replacement" for a hotel asset has been narrowl y defined as the funds set

aside for the periodic replacement of furniture, fi xtures and equipment (FF&E).

The reserve was not contemplated to fund the replac ement of major building

components, such as roofs, elevators, and chillers.

For this study the term has been defined as: the c ost of replacing worn out

FF&E, as well as the cost of;

- updating design and decor - curing functional and economic obsolescence... - complying with franchisors' brand requirements - technology improvements - product change to meet market demands - adhering to government regulatory requirements - replacing all short and long lived building compo nents due to wear and tear

Although many equity investors frequently argue aga inst the necessity of a

reserve, particularly if the investor does not plan to hold the property for

greater than five years, the requirement for and am ount of reserves are typically

contractual issues between ownership, lender, manag er, and/or

franchisor/franchisee.

Significant Findings of CapEx 2000

The average amount spent per year by limited-servic e hotels in the survey was

determined to be 5.5% of total revenue for the time period covered by CapEx 2000

(1988-1998). As these limited-service hotels have matured, CapEx has increased,

underscoring one of our principal findings that Cap Ex requirements increase as a

hotel ages. CapEx Spending is highly dependent upo n a hotel's point in its life

cycle. The following chart shows the range of CapE x spending (as a percentage of

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total revenues) over a 25-year time period; the ta ble following the chart

identifies the specific ranges of CapEx spending as a% of total revenues by year.

Percentage Range of CapEx Spending by Year

Year Range Minimum Range Maximum 1 1.65% 4.51% 2 1.72% 3.29% 3 1.48% 3.15% 4 1.31% 3.64% 5 3.21% 6.23% 6 4.80% 6.77% 7 4.15% 5.85% 8 3.60% 5.23% 9 4.83% 7.01% 10 8.43% 11.94% 11 4.66% 6.55% 12 5.42% 9.36% 13 4.66% 9.93% 14 4.66% 7.82% 15 3.35% 5.72% 16 5.12% 12.40% 17 5.10% 10.50% 18 2.51% 9.72% 19 2.93% 8.10% 20 2.37% 8.68% 21 2.37% 6.99% 22 3.20% 6.84% 23 5.07% 16.98% 24 3.45% 12.88% 25 5.05% 10.24%

As the data indicates, CapEx spending increases ove r time for all (U.S.) hotels,

with large differences in both the level of CapEx s pending and timing across

different hotels. The data illustrates that, over time, the minimum and maximum

levels of CapEx spending generally widens as a hote l increases in age.

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For limited-service hotels, the first major increas e in spending occurs in the

sixth year, which likely represents the replacement of soft goods. The first

major spike occurs in year 10, which is likely to b e the result of a rooms and

corridors renovation. Smaller spikes in CapEx spen ding occur in the following

years, with the next major spending spike occurring in year 17, which is likely

building and some mechanical renovation and replace ment.

The following series of tables illustrates limited- service CapEx spending levels

in various demographic categories:

CapEx 2000- Limited Service Hotels by Location

Average Capex/Total CapEx pe r Location Age Revenue Room per Year All Properties 12.0 yrs 5.5% $1,1 11 Airport 9.8 yrs 5.4% $1,2 68 Urban 15.2 yrs 4.3% $ 8 20 Small City/Hwy 9.2 yrs 5.1% $ 7 73 Suburban 10.5 yrs 5.7% $1,1 72

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CapEx 2000- Limited Service Hotels by Average Daily Rate Average Average Capex/Total CapEx pe r Daily Rate Age Revenue Room per Year All Properties 12.0 yrs 5.5% $1,1 11 < $60 12.7 yrs 5.0% $ 6 87 $60-$80 12.5 yrs 6.3% $1,1 34 > $80 12.0 yrs 5.3% $1,5 70 CapEx 2000- Limited Service Hotels by Property Size Average Capex/Total CapEx pe r Property Size Age Revenue Room per Year All Properties 12.0 yrs 5.5% $1,1 11 < 100 rooms 8.7 yrs 3.3% $ 4 75 100-150 rooms 10.3 yrs 5.4% $1,1 07 > 150 rooms 20.0 yrs 6.9% $1,3 60 -CapEx 2000- Limited Service Hotels by Age of Prope rty Average Capex/Total CapEx per Daily Rate Revenue Room per Year All Properties 5.5% $1,111 > 15 yrs old 6.5% $1,372 5-15 yrs old 4.8% $ 897 < 5 yrs old 3.0% $ 547

Overall, the study details the varying levels of ca pital required to keep a hotel

competitive in its life cycle. Historically, many operators have held no more

than 3-4% of gross revenues in reserve, a level whi ch may be sufficient for FF&E

replacement, but is woefully inadequate for other r equired expenditures. 14

14 Data compiled and organized from the CapEx report o f the International Society of Hospitality Consultants, copyright 2000.

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August 13, 2010

EXHIBIT VIII Market Texas Tourism Office of the Governor, Economic Development & Tourism

TEXAS HOTEL PERFORMANCE REPORT: SECOND QUARTER 2010

Texas lodging room revenues gained 7.2% in the Second quarter of 2010 after a 16.3% decline in the Second quarter of 2009. The market lost 2.9% in the First Quarter of 2010 and 17.6% for all of 2009. It gained 8.5% in 2008, 8.9% in 2007, 13% in 2006 and 15% in 2005. However, even with this Second quarter 2010 gain of 7.2%, revenues are still 10.3% below the Second quarter of 2008, two years ago. The Fourth quarter of 2008 marked the end of four years of revenue growth levels above 8%. Second quarter 2010 room revenues advanced to $1.726 billion versus $1.610 billion a year ago. Prices declined by 1.1%, on top of a 6.7% decline in the Second quarter of 2009. Revenue Per Available Room per day (REVPAR) gained 1.5% in the quarter, but remained a stressful 17.7% below the Second quarter of 2008. The most important industry driver, roomnights sold, increased by a modestly encouraging 8.3% over last year (although roomnights are still 2.9% lower than 2008 levels while new supply has expanded by 9.1%). Room supply in the quarter grew 5.6% after peaking at the end of 2009. Due to generally low current returns on investment, future net supply growth will be extremely limited. Second quarter occupancy improved 2.6%, from 54.8% to 56.2% (1.4 points), well below the 59% long-term industry average and below the 63.1% in the Second quarter of 2008. 2010 market results indicate a ‘bottoming’ of the severe recession and a developing , slow recovery. However, the general economic outlook remains uncertain at best.

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In general, performance measures are turning in a modestly positive direction.

Texas: percentage Change Vs. Year Ago

Room Room Rooms % $ $ Qtr/Yr Supply Rev $ Sold Occ Price RPAR 1st '08 3.2 7.9 1.7 -0.8 4.6 3.7 2nd 3.7 9.5 3.7 -0.2 5.5 5.4 3rd 3.7 9.4 4.6 0.3 5.0 5.5 4th 3.0 8.3 3.8 0.5 4.0 4.5 1st '09 4.4 -8.6 -5.0 -9.5 -3.6 -12.7 2nd 4.6 -16.3 -10.3 -13.5 -6.7 -19.3 3rd 5.6 -16.4 -9.3 -14.4 -7.6 -20.9 4th 6.8 -18.8 -9.9 -16.5 -9.7 -24.6 1st '10 6.0 2.1 2.1 -3.7 -5.1 -8.4 2nd 5.6 7.2 8.3 2.6 -1.1 1.5

For the Second quarter, most areas showed rising roomnight demand. Strongest performers – all above 10% - were Victoria, Laredo, El Paso, San Antonio, Houston-Baytown-Sugar Land, Texarkana, Odessa and Dallas. Led by San Antonio, all four the largest metros had revenue gains:

Second Quarter % Total Revenue* % Chains Only:

Metropolitan Areas Market 2009 2010 Change %Occ $ ADR REVPAR Dallas-Ft Worth-Arlington 26.4% $424.2 $455.0 7.2% 57.9% $87.86 $50.87 Houston-Baytown-Sugarland 21.9% $356.2 $378.0 6.1% 57.3% $92.68 $53.11 San Antonio 13.6% $207.1 $234.9 13.4% 57.6% $108.06 $62.24 Austin-Round Rock 10.0% $162.1 $172.2 6.2% 65.9% $100.99 $66.55 Corpus Christi 3.1% $52.8 $53.6 1.5% 58.4% $84.21 $49.18 El Paso 2.3% $32.0 $39.1 22.3% 69.3% $78.25 $54.23 Brownsville-Harlingen 1.8% $30.2 $30.9 2.3% 55.9% $79.11 $44.22 Balance of Texas 21.0% $345.6 $361.8 4.7% 55.8% $74.52 $41.58 Total State of Texas 100.0% $1,610.2 $1,725.6 7.2% 58.1% $89.00 $51.71

* $ millions

Analyst’s Prediction/Opinion: If historical patterns from the recessions of the 1980’s repeat themselves, the severe rate of decline in room-nights sold has probably ceased and growth has resumed. However, recovery to historically healthy levels is highly uncertain. This opinion is based on the state of the overall economy: about 17% unemployment continuing unabated (includes part-time workers and those ‘giving up’ searching), the clear ineffectiveness of federal stimuli, federal deficit levels approaching those of insolvent countries, a rejection of meaningful energy development (e.g. Gulf drilling moratorium, dismissal of nuclear energy), An unaffordable and unworkable nationalized health care plan, and the depressive effects on private free enterprise of proposed federal programs including, ‘Card Check,’, ‘Cap & Trade,’ Immigration ‘Reform,’ and huge, looming tax increases of all kinds.

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By Price – Room Revenues: Higher priced hotels have recovered some of their share of room revenues, with a 6.6% gain. This followed five quarters of notable revenue declines for hotels priced over $135. Lower and mid-priced hotels also improved their positions in the quarter with growth of 10.5% and 4.1% respectively, while the industry as a whole gained 7.2% in the quarter. In 2009, lodging priced above $135 lost 31.2% of revenues versus 2008. In the First quarter of 2009, this category lost 19.4% totally due to a 22.8% decline in supply as higher priced hotels dropped rates and migrated down to the Mid-priced category. Higher priced hotels will generally drop price in order to hold occupancy levels as consumer demand drops. Change In Room Revenues by Price (vs. year ago)

Average

Rate: Under $90 $90 to $135 $135+ Total Year of 2009 -3.7% -9.4% -31.2% -15.0% 1st Quarter '10 6.5% 1.3% -19.4% -2.9%

2nd Quarter 10.5% 4.1% 6.6% 7.2%

By Product Segment: For the Second quarter of 2010, higher priced hotels out-performed the market in terms of REVPAR improvement. Mini-suites, Low priced/Extended Stay and Budgets suffered continued erosion in REVPAR. Overall, segment results signal some recovery of Business-related demand in the market; room revenues for the Luxury, Upscale, Suites, Mid/Upscale and Mini-Suite chain segments15 showed positive revenue gains. Mid/Upscales, Limited Service/ Midscales and Mini Suites added 14,800 of the 20,700 total room increase. Segment Performance – Second Quarter 2010 Results

( 000's) # # # $ Room % % % Point Rate RVPAR Segments Hotels Rooms Chg Revenues Chg Mkt Occup Chg Chg Chg Luxury 18 7.9 0.3 83,992 7.2% 4.9% 62.6 4.4 -4.5% 2.6%

Upscale 83 35.5 1.5 296,168 12.4% 17.2% 60.8 4.3 -1.8% 5.6%

Suites 166 22.2 1.0 161,445 9.1% 9.4% 65.4 4.3 -2.6% 4.3%

Mid/Upscales 254 46.9 4.3 260,445 13.7% 15.1% 59.1 3.5 -2.7% 3.4%

Mini-Suites 237 20.2 3.8 85,960 14.4% 5.0% 58.7 0.3 -7.3% -8.7%

L.S./Midscales 1,007 80.8 6.7 356,784 6.6% 20.7% 58.5 0.6 -3.1% -2.2%

Extended Stay 195 25.5 1.0 55,916 -4.1% 3.2% 64.6 -1.3 -7.0% -7.9%

Budget 948 68.6 2.6 147,844 -2.5% 8.6% 50.3 -1.0 -4.4% -6.2%

Total Chains 2,908 307.6 21.1 1,448,555 7.8% 83.9% 58.1 1.3 -1.8% 0.4%

Tot. Independ. 1,858 84.6 -0.4 277,008 3.8% 16.1% 49.2 1.3 1.5% 4.2%

Total Market 4,766 392.2 20.7 1,725,562 7.2% 100.0% 56.2 1.4 -1.1% 1.5%

15 Limited Service chain hotels offer high-quality rooms without restaurants at average prices (e.g. Holiday Express, Hampton Inn, Fairfield Inn, La Quinta). Mini-suite hotels feature room sizes of about 400 square feet and limited service. Luxury hotels are the highest priced chains (Westin, Four Seasons, Gaylord, Ritz Carlton). Upscales are the large full-service, higher-priced hotels (e.g. Marriott, Hilton, Hyatt, Omni, Wyndham). Mid-Upscale hotels are lower-priced, partially-full-service hotels (e.g. Marriott Courtyard, Hilton Garden, Hyatt Place, Holiday Inn, Sheraton). Low Priced Extended Stay includes brands such as Budget Suites of America, Extended Stay America, etc. Budget chains include Motel 6, Super 8, Days Inn, Ramada and similar low-priced hotels.

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Supply Expansion Expected to Cease Near-term Room supply growth rates have decreased for the past two quarter and should continue to do so because of weak consumer demand for hotel rooms and little debt availability; after completion of hotels now under construction, supply growth should drop to very low levels. In the Second quarter of 2010, total room inventory expanded by 20,800 net rooms, after expanding by about 24,000 units in recent quarters. In the Second quarter, rooms currently priced below $90 gained by 10% (22,300 rooms). Rooms offered at rates from $90 up to $135 slipped 1.4% (1,500 rooms). Rooms offered at rates $135+ were virtually the same as a year ago (-0.2%). These results reflect both hotels closing and hotels shifting price category. The Largest Areas Recovering in the Second Quarter San Antonio Metro roomnights-sold increased by a rejuvenating 11.7% from the Second quarter a year ago, bringing real demand virtually equal to 2008. Rates increased 1.6%, bringing revenues to $235 million, up 13.4%. As net room supply increased by 7.7% (3,100 net rooms), average occupancy edged higher by 1.9 points, to 55.9%; these results confirm only selective opportunity for new development. In the year of 2009, San Antonio room revenues dropped 15.7% because of an 8.4% decrease in room rates and an 8.0% drop in roomnights sold from 2008. In 2009, occupancy slipped 8.4 points to a 51.9% average. Houston-Baytown-Sugar Land roomnights-sold showed an 11.1% gain, with revenues up 6.1%, to $378 million, as prices slipped by 4.4%. Occupancy gained 1.8 points to 56.4% in spite of a room supply additions amounting to a 7.8% increase (+5,800 rooms); some of this supply increase consisted of hotels that were closed in 2008 due to hurricane damage. In the year of 2009, Houston metro room revenues dropped a debilitating 20.1% from 2008 because of a 13.3% decline in roomnights sold, compounded by a 7.8% decrease in room rates; annual 2009 occupancy eroded 10.9 points to a 55.4% average. Dallas Metropolitan Division roomnights-sold gained a strong 10.2% in the Second quarter. Inhibited by a 2.7% rate erosion, revenues to still advanced 7.3% to $304 million. Net room supply increased by 3.6% (2,500 net rooms), average occupancy rose by 3.3 points, to 55.45%; again, there will be only limited opportunity for new supply additions here. In the year of 2009, Dallas room revenues dropped a massive 17.9% because of a 10.1% decline in roomnights sold from 2008 compounded by a 7.3% decrease in room rates; occupancy eroded 7.9 points to a 51.8% average. Ft. Worth-Arlington Metropolitan Division roomnights-sold rose a robust 9.1% in the quarter, with revenues up 7.2%, to $151 million. Net room supply grew by 4% (1,500 rooms) resulting in an occupancy gain of 2.3 points, to 59.9%. In the year of 2009, roomnights dropped 5.6%, rates slipped 6% and occupancy eroded 9 points to 57.4%, slightly below the state long-term average of 59%; with supply up 9.2% (2,600 rooms), room revenues eroded by 11.5%, Austin-Round Rock roomnights-sold increased 6.2% in the Second quarter in a non-legislative year. Net room supply rose 3.6% (1,000 net rooms). Also influenced by a 2.5% price decrease, revenues gained 6.2% to $172 million (compared to $190 million in 2008 in the quarter). Occupancy held its own at 64.8%. In the year of 2009, Austin room revenues dropped an alarming 12.9% in a legislative year, caused by a 6.5% decline in roomnights sold from 2008 and a 6.8% decrease in room rates; occupancy eroded 6.8 points to a fairly healthy 59.4% average.

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For the three Gulf Coast16 metros excluding Houston, roomnights sold dropped 0.7%. With rates ‘flat,’ room revenues slipped 0.9%. As net room supply increased by 2.8%, occupancy also slipped 1.8 points, to 50.7%. These metros are heavily affected by both the oil business and by leisure travel. Second Quarter Occupancy The latest quarter occupancy averaged 56.2%. This compares to 54.8% in the Second quarter of 2009 and to 63.1% in 2008. In 2008, total year occupancy for the state was 61.5%, about 4% above long term averages. Chain occupancy was 58.1% in the Second quarter, up by 1.3 points from a year ago. Chains accounted for 83.9% of market revenues, up a percentage point from a year ago. Independents generated 49.2% occupancy, also up by 1.3 points. Fourteen of the 27 areas of Texas showed increased occupancy versus the Second quarter of 2009. Ten areas exceeded the state occupancy average of 56.2% in the quarter. All five of the largest areas were above or within a point of the state average.

Metro Area Performance Year of 2009 2nd Quarter 2010

Occ Pt. Rev Occ Pt. Rev

Metro Area % Chg % Chg % Chg % Chg

El Paso 63.6 -4.3 -7.9% 69.1 5.6 22.3%

Austin-Round Rock 59.4 -6.8 -12.9% 64.8 3.0 6.2%

Amarillo 56.0 -2.1 -3.5% 61.4 2.4 8.4%

Ft Worth-Arlington MD 57.4 -9.0 -11.3% 59.9 2.3 7.2%

Texarkana (Tx) 60.8 -4.6 3.4% 57.9 -2.1 12.9%

San Angelo 59.6 -2.7 -3.9% 57.4 -2.9 -7.4%

College Station-Bryan 56.0 -8.7 -7.6% 57.3 -1.3 -1.7%

Lubbock 57.9 -3.9 -0.6% 57.3 -5.0 0.2%

Houston-Baytown-Sugarland 55.4 -10.9 -20.1% 56.4 1.6 6.1%

Killeen-Temple-Ft Hood 51.7 -5.2 -7.8% 56.4 1.8 6.2%

State Average 53.5 -8.0 -15.0% 56.2 1.4 7.2%

Laredo 48.2 -7.5 -16.3% 55.9 11.4 32.9%

San Antonio 51.9 -8.4 -15.7% 55.9 1.9 13.4%

Midland 54.4 -12.0 -17.2% 55.8 -5.8 -5.9%

Dallas MD 51.8 -7.9 -17.6% 55.4 3.3 7.3%

Waco 53.8 -6.4 -5.7% 54.6 0.7 6.2%

Tyler 52.8 -9.9 -5.8% 53.6 -1.6 -2.5%

Victoria 45.5 -13.7 -24.0% 53.2 9.7 35.6%

Corpus Christi 46.9 -1.3 -1.5% 53.0 0.3 1.5%

Non Metro 50.0 -7.6 -13.2% 52.7 -1.4 7.6%

Longview 53.2 -11.6 -9.1% 52.4 -3.5 -1.8%

Odessa 50.4 -25.6 -35.9% 52.0 1.3 4.1%

Sherman-Denison 45.8 -8.2 -10.4% 51.7 -0.4 11.5%

Brownsville-Harlingen 45.8 -1.0 -7.2% 50.4 2.2 2.3%

Wichita Falls 52.1 2.4 1.9% 47.7 -4.7 0.7%

McAllen-Edinburg-Pharr 51.0 -7.2 -11.4% 47.6 -0.1 0.9%

Beaumont-Pt Arthur 54.2 -12.9 -16.4% 46.5 -11.6 -12.5%

Abilene 46.5 -9.3 -12.9% 45.1 -2.7 -4.8%

16 Beaumont/Port Arthur, Corpus Christi and Brownsville/Harlingen

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EXHIBIT IX

Know your competition Source Strategies, Inc. maintains the most accurate and comprehensive Texas hotel database, covering 98% of all hotels. More importantly, Source is the only provider of individual, hotel-by-hotel data, trends and financial projections.

Source data is based on the Texas State Comptroller audited tax files for the period of 1980 to the present, making it more accurate and complete than voluntary samples, in our opinion. Since 1988, Source has been under contract to the Office of the Governor, Economic Development and Tourism to supply its hotel research data and analysis. Services detailed below and at www.SourceStrategies.org .

• The Texas Hotel Performance Factbook, puts each and every hotel and motel’s Revenue and Occupancy Numbers on your desk, hotel-by-hotel, and compared to last year, then summarized by zip-code, by city and by metro area. Factbooks are available with three month data and with 12-month data.

• Financial Feasibility Studies. Over 150 hotel feasibility studies are developed annually, far more than by any other consultancy. Many of Texas’ lenders insist on a Source study because of the proprietary methodology and high level of accurate prediction, speed and cost efficiency.

• The Hotel Brand Report newsletter is published quarterly. It is the only industry source that tracks how each major brand is performing, as well as product and price segments. Readers learn which are winning!

• Appraiser’s Packages. Five and ten year market and property histories give a comprehensive view, by selected geography and for individual hotels. As both market and individual property trends become very clear, so do resulting hotel appraisals.

• Litigation Support and Data Analysis. Almost any question can be analyzed and proved up with the powerful Source database.

Endorsed by the Texas Hotel & Lodging Association

Contacts us at (210) 734-3434 e-mail Address

Bruce H. Walker, President [email protected] Douglas W. Sutton, Executive Vice President [email protected] Todd A. Walker, Senior Vice President [email protected] Amanda B Sykes, Manager Administration [email protected]

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BRUCE H. WALKER

1987-Present: Source Strategies, Inc. Founder and President of consultancy in research, strategy and marketing, specializing in lodging. Practice includes 120+ hotel feasibility studies annually for individual developers. Other clients include Office of the Governor, Texas Economic Development & Tourism, Banks, major accounting firms, appraisers and attorneys. Database of 4,100+ Texas hotel/motels created and maintained continuously. Testify regularly. Publisher and writer of The Hotel Brand Report and the Texas Hotel Performance Factbook. 1986-1987: La Quinta Motor Inns, Inc. Senior Vice President, Marketing. Repositioned brand with the ad campaign "Just Right Overnight," new corporate logo, extensive couponing and premium-quality king rooms. 1984-1985: Portel Videotex Network LP. President. Home-banking, home-shopping start-up. 1976-1983: Holiday Corporation. Hotel Group Vice President, Marketing (1975-79), President of subsidiaries (1979-82), Senior Vice President, Central and Strategic Planning(1980-83). Started the first hotel frequent traveler's program, and the classic ad campaign, "The Best Surprise is No Surprise." Developed and launched the Hi-Net satellite reception network to 350 Holiday Inn hotels, offering HBO, CNN and ESPN. Created prototypes and strategic plans for new chains Holiday Inns and Embassy Suites, and recommended sale of Holiday Inn chain (sold 1989 to Bass PLC). 1969-1975: Howard Johnson Company. Assistant to the President, Director Disney World Development, Director Restaurant Marketing. 1964-1968: Procter & Gamble Company. International Brand Manager. Took Scope mouthwash, Secret deodorant and Crisco Oil into Canada, Crest toothpaste and Tempo deodorant into the United Kingdom. EDUCATION 1957-61 Amherst College. BA, Economics. 1961-63 Harvard Business School. MBA. Ongoing seminars throughout career include strategic studies with the Boston Consulting Group. Appraisal Institute Hotel/Motel Valuation and Investment Seminar, April 1992 PUBLICATIONS AND SEMINARS: * The Cornell Quarterly, October 1993, "What's Ahead: A Strategic Look at Lodging Trends." * Hotel & Motel Management, October 1994, " Hoteliers Should Examine Hotels' Life Cycles." * Two articles per year for Hotelexecutive.com, the authoritative, on-line hotel magazine. * The Hotel Brand Report newsletter, written and published quarterly since 1987. Over 80 issues. * Speeches to Urban Land Institute, Appraisal Institute, Real Estate Counseling Group of America and O’Connor & Associates.

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DOUGLAS W. SUTTON

1996- Present Source Strategies, Inc. Executive Vice president specializing in development of hotel feasibility studies, database software development and maintenance, and developing special studies and articles published in the Hotel Brand Report newsletter. Completed over 300 Financial Feasibility studies successfully, encompassing over thirty-two different brands in Texas, New Mexico, Louisiana, Kansas, Colorado and Oklahoma. Studies include major and local market assessments and projections, proposed hotel’s revenue generation and ten-year cash flow forecasts and the projection of return on capital investment. Major contributor to Source Strategies in its achieving market status as the largest supplier of hotel financial feasibilities to Texas’ lending institutions. Responsible for creating and programming database of over 4,000 Texas hotels and motels. Contributing analyst and writer to Hotel Brand Report newsletter and the Texas Hotel Performance Factbook, including ‘Hot Brands & Dying Brands’ (2006), ‘Development Since 9/11: Winners & Losers’ (2005), ‘Higher Priced Brands in Turmoil, Mid-Priced Brands Prosper’ (2004). Provides litigation support, analysis and strategy for hotel litigation and testimony. 1994-1996 University Health System, San Antonio Texas. Decision Support Analyst. Provided data analysis support to all levels of hospital management. Prepared numerous medical studies, grant support documents, cost-analysis studies, staffing studies, and other decision support analysis. Developed a number of vertical software applications to allow key departments to track and study their individual patient populations. 1987-1994 Systems IV Professionals, Inc., San Antonio. President. Consulting firm specializing in data analysis and customized software development utilizing FOCUS database software. Created major applications, including a long distance network analysis system for a major carrier; system allowed the carrier to determine the effect of various network changes before implementation to facilitate selection of the most cost efficient network possible. 1983-1987 United States Air Force. Captain and Information Services Officer, Directorate of Special Weapons, Kelly AFB, Texas. Duties included writing and maintaining software to manage the Air Force's Nuclear weapons arsenal, tracking nuclear component parts and supplies, and acquisition and installation of major secure computer network. EDUCATION 1979-83 Troy State University, Troy Alabama, BS in Computer and Information Science.

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TODD ANDERSON WALKER

1997-Present Source Strategies, Inc. Senior Vice president, Business Operations. Major contributor to Source Strategies in its achieving market status as the largest supplier of hotel financial feasibilities to Texas’ lending institutions. Completed over 400 Financial Feasibility studies successfully, encompassing over thirty different brands now operating successfully in Texas, New Mexico, Louisiana, Kansas, Colorado and Oklahoma. Studies include major and local market assessments and projections, proposed hotel’s revenue generation, ten-year cash flow forecasts and the projection of return on capital investment. Key contributor to research studies of convention hotel and convention center performance. Responsible for sales and operation of Source Strategies’ publications, including The Texas Hotel Performance Factbook and The Hotel Brand Report Newsletter. Manage Accounts Receivables, billing and collections. Contributes as analyst, writer and editor to Hotel Brand Report newsletter and the Texas Hotel Performance Factbook, including ‘Results from 1995, 2004, & 2005: Limited Service Dominates’ (2005), ‘First Quarter 2004, The Best Increase Since the Year 2000’ (2004), ‘Age Matters, Size Matters’ (2005). Provides litigation support, analysis and strategy for hotel litigation and testimony. 1997 The Toronto Globe & Mail Newspaper. Assistant to the Editor of Business Publications. The Globe & Mail is Canada's national newspaper, a division of Thomson Publishing Corporation. Wrote business articles and edited publications. Edited InfoGlobe from April to October 1997. 1994-1997 Source Strategies, Inc., San Antonio. Senior Consultant. Developed hotel feasibility studies. Completed over 60 studies for new hotels and motels throughout Texas. Circulation Director for Brand Report newsletter and the Texas Hotel Performance Factbook. Generated renewals at 85% rate. 1989-1994 Intern at Source Strategies, Inc. during university education. EDUCATION 1989-94 University of Toronto, Ontario, Canada. Bachelor of Arts with Honors in English and History.

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2001 - 2005 FINANCIAL FEASIBILITY STUDIES

PARTIAL LISTING AmeriSuites Austin NW College Station Denton Fort Worth Stockyards San Antonio Waco Baymont Inn San Antonio InterContinental New Braunfels Best Value San Antonio San Antonio SW San Antonio Waller Best Western Inn & Suites Addison Andrews Big Spring Bridgeport Cameron Cleveland Copperas Cove Dickinson Franklin Halletsville La Grange Lake Dallas Laredo Levelland Lumberton Pearsall Pilot Point Rosenberg Schulenberg Temple Tomball Wakeeney, KS

Budget Host Fort Worth Candlewood Suites San Antonio Irving DFW Friendswood San Antonio Westheimer San Antonio Toyota San Marcos Temple Wichita Falls Comfort Inn, Comfort Suites Fredericksburg Navasota Pampa Pharr Bay City College Station Copperas Cove Deer Park Elmendorf Georgetown San Antonio InterContinental Hobbs, NM Longview Pasadena Quanah San Antonio San Antonio Downtown Sugarland Longview Webster Country Inn & Suites Arlington Econo Lodge Dallas Lake Charles Port Arthur

Texas City Embassy Suites Laredo Lubbock Fairfield Inn by Marriott Livingston Laredo Holiday Inn Austin Pecan Park Austin Ben White Cedar Park Corpus Christi Del Rio Galveston Gainesville Greenville Hillsboro San Antonio InterContinental San Antonio Beltway 8 Greenville Nipomo, CA Rosenberg Seguin Schertz South Austin Texarkana Waxahatchie Hawthorn Suites Ltd Marble Falls Hilton Hotel Fort Worth Convention Center Hilton Garden Inn Amarillo Corpus Christi Granbury

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San Antonio Beltway 8 Killeen McAllen New Braunfels Temple

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Feasibilities Continued… Holiday Express Hotel & Suites Allen Alvarado Amarillo Atlanta Austin Buda Cameron Center Cleburn Corsicanna Desoto Galveston Gatesville La Grange La Porte Lampasas Manvel Pearland Orange San Antonio I-10 West San Antonio Toyota San Marcos Sherman Texarkana Wichita Falls Holiday Inn Austin (Select) Dallas Downtown Frisco San Antonio Homewood Suites San Antonio Katy Freeway Norman, OK Marble Falls McAllen New Braunfels Waco Wichita Falls

Independent Hotels Crescent Hotel, New Orleans Dacoma Inn San Antonio Executive Inn Tyler Fairmont Hotel San Antonio First Choice Inn Grand Prairie Garden Inn San Antonio Harker Heights Inn Steward Mansion Galveston Killeen Inn Laredo Inn Luxury Suites Canton Palms Hotel South Padre Palace Inn San Antonio Passport San Antonio San Antonio Inn & Suites Wylie Inn Hotel Indigo Alamo Plaza San Antonio La Quinta Inn & Suites Boerne Cedar Hill Gun Barrel City Keene Palestine Pasadena Pearland Rockwall San Antonio San Antonio I-10W San Antonio Toyota Seguin Tomball Marriott Hotel Dallas Convention Center Colorado Springs CC Quality Inn, Quality Suites Katy San Antonio East

Waco Radisson Inn & Suites Amarillo Red Roof Inn San Antonio InterContinental Pharr Stafford Temple Staybridge Suites San Antonio South Padre Island Studio 6 Bay City Tyler Winnie Super 8 Austin East San Antonio Conroe Copperas Cove Fort Stockton Humble Killeen Livingston Pharr Plainview Rosenberg San Antonio South Townplace Suites Killeen Travelodge Killeen San Antonio Wingate Inn & Suites McAllen San Antonio Wyndham Wyndham Savoy San Antonio

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CONSULTING STUDIES, DATA AND LITIGATION SUPPORT 1. Contracted by the Texas’ Governors Office of Economic Development, Tourism Division since 1988 to maintain the industry database of hotel performance. Source Strategies is the sole supplier to the Governor’s Office of lodging market statistics and analysis in reports used to assess Texas tourism promotion efforts and to aid in marketing Texas. 2. Provided over 1,500 detailed five-year custom local hotel market histories to MAI appraiser clients. 3. Developed numerous studies of subject hotel(s) to determine their historical, competitive REVPAR performance versus the market average. This unique analysis technique highlights trends and deviations in performance, regardless of market movement; a REVPAR index versus market average shows how well a property has performed. By limiting study to a single variable, a truly scientific conclusion can be made as to cause and effect. Deviations from trend can be related to specific, causal events such as management problems or outside influence (e.g. new highway construction, brand change, new competition); if there is no effect from an event, studies confirm the absence of any impact). If there is an effect, the degree is measurable and apparent. This study approach is among Source's most important work, frequently the basis for expert witness testimony by Source's principal Bruce Walker. Examples of major studies include: a) the (lack of) induced demand from opening every large downtown hotel in Texas, 1980 through 2003 (see www.sourcestrategies.org for full study); b) the impact of adding a second luxury hotel of the same brand in a local market, or removing a hotel of the same name, on the performance of the pre-existing property; 3) Studies to separate and quantify hotel Business Value - and the separate Real Estate Value - (for tax assessment disputes). The most important study here was to determine the average revenue effect of adding or removing the "Marriott Hotel" name to numerous hotel properties from 1980 through 1995. Source Strategies has produced values for the Marriott Austin hotel and the Marriott Rivercenter hotel San Antonio, both with- and without- the Marriott name for real property tax disputes. Clients include USAA and the Bexar County Appraisal District. Sample litigation clients have included the Texas Department of Transportation (through Texas Attorney General's Office) for condemnation valuation and damage cases, including: the Days Inn San Antonio I-45N, Motel 6 Ft. Worth, Holiday Inn San Antonio I-45N, La Quinta San Antonio I-45N, Holiday Inn Lubbock, and Austin Hawthorn Suites South, Chariot Inn, Malibu Grand Prix), Dallas Sheraton, San Antonio Holiday Select Airport, Coit Towers Hotel Dallas, Erie County PA Hotel Owners vs. Convention Authority, Bandera Motel San Antonio. Other litigating clients have included USAA, Bexar County Appraisal District, Capital Income Properties (Hilton Nassau Bay, Austin Marriott North), American Liberty, Dosani Brenham Inn, Wes-Tex Management El Campo. Hospitality (Homeplace Inn), Ramada Bannister Austin (Lock manufacturer), Rodeway Inn I-10 West (bank's non-funding of a committed loan), Homer J. Rader, and Siu Ft Worth and San Antonio Inn (bankruptcies), Holiday/Clarion (loss due to change of brand), United Fire (Wingate McAllen performance due to construction issues), Hyatt Regency San Antonio (arbitration re: introduction of second Hyatt in CVB). 4. Numerous studies to determine the effect on revenues and cash flow of brand name alternatives, whether in new builds or in changing to- or from- a brand name. This technique is used extensively in feasibility work to predict revenue performance of new hotel projects under various brand name alternatives. 5. Represented Host Marriott before Real Estate Tax Appeal Board. 6. Drafted national lending guidelines for Heller Small Business Finance for lodging projects under $5 million. 7. Presentations to bank lending committees to explain the dynamic economics of the lodging industry, particularly the effect of market demand and supply, equilibrium occupancy, cost structures, and the effect of brand name on REVPAR and ROIC. 8. Analysis of alternative markets to determine their potential for new lodging: alternative metro areas, alternative sites, and strategically, for an expanding chain. 9. Consumer intercept and secondary data studies, including the effect of a potential name change, the effect of new hotel.

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Methodology of Texas Hotel/Motel Reports Texas Hotel/Motel Quarterly Reports are prepared on a custom basis for private clients, including Office of the Governor, Texas Economic Development & Tourism, and the Texas Attorney General. Reports are prepared by Source Strategies Inc. of San Antonio, Texas, based on Texas State Comptroller revenue records and independent research. Data sources include the following: Room Revenues: State of Texas Comptroller records are the source of taxable room revenues for all properties. All properties exceeding $18,000 in the current quarter are included; the below-$18,000 units result in 2% of the total state revenues being initially excluded from the Source Strategies database. As a result, the database covers 98% of Texas. Gross room revenues (including Non-taxable) were reported to the Comptroller starting in the third quarter of 1990. To account for the missing non-taxable revenues prior to the third quarter of 1990, Source Strategies increases each individual property's taxable-only, reported revenues by variable factors averaging 12% to reflect this untaxed volume (e.g. government business, over 30-day stays, charitable and educational purchases). "Apartment-type" revenues are typically not reflected. Starting in the third quarter of 1990, hotels and motels were required by the Texas Comptroller to report both taxable and gross room revenues. Approximately 80% of properties usually comply, allowing the development of adjustment factors for all hotels and motels, even if only taxable revenues are reported. For example, taxable room revenues are adjusted accordingly higher if a hotel reports only taxable revenues (i.e. where taxable equals gross room revenues). Properties that make no report or only partial reports are estimated based on the past five quarter trends. If and when they subsequently report accurately, their actual revenues 'overwrite' our estimates. Room Counts: these are checked annually in chain directories and the Texas American Automobile Association Tour Book; properties checked account for approximately 80% of revenues. For independent properties too small to be listed, the room counts reported to the state are used (unless they appear unreasonable; if so, a telephone contact is made). As a result, the 'CHAIN' occupancies and room counts appear to be very close to 'actual', while independent room counts could be slightly overstated. Reports are split into CHAIN and INDEPENDENT categories. Average Daily Rates are estimated with the aid of financial reports, appraisers, private S.S.I. surveys, chain and AAA directories and another reliable industry database. Roomnights sold are derived from the above revenues, divided by Average Daily Rates. Roomnights available are calculated from Room Counts (times days in the period). Occupancy is calculated from roomnights sold and roomnights available. All occupancy figures reported represent fully weighted averages, as calculations are always made after sub-totaling or totaling roomnights sold and roomnights available. "CHAINS" are defined as one of the "Top 70+" brands, and include the following names: Four Seasons, Gaylord, Westin, W, Hilton, Hyatt, Inter-Continental, Marriott, Omni, Renaissance, Wyndham. Also, Embassy, Homewood, Residence, Staybridge, Clarion, Courtyard, Crowne Plaza, Indigo, Doubletree, Hilton Garden, Holiday Inn, Radisson, Sheraton. AmeriSuites, Bradford, Candlewood, Comfort Suites, Hawthorn, Quality Suites, SpringHill, TownPlace, Amerihost, Baymont, Best Western, Comfort Inn, Country Inn, Drury, Fairfield, Hampton, Holiday Express, La Quinta, Wingate. Budget Suites, Extended Stay, Homestead Village, Intown, Value Place, Studio Plus, Studio 6, Best Value, Days, Econo Lodge, Howard Johnson, Microtel, Motel 6, Quality Inn, Ramada, Red Roof, Super 8. Accuracy: Room counts and Room Revenues are within 2%. On an overall basis, the change in average daily rates reported by Source Strategies Inc. are within a few tenths of one-percent of PKF Trends, another private research firm that gets financial reports from about 30% of all hotel/motels in Texas and then publishes aggregated results by metro and smaller areas.

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