TransactionsValue by Segment

Presented to:

International Society of Hospitality Consultants

Annual Conference

October 20 – 23, 2005

San Diego, CA

Sales Comparables - 2005

Full Service Marriott

Residence Inn by Marriott

Hilton Garden Inn

Holiday Inn Express (Manhattan)

Marriott Hotel (suburban-midwest)

Executive Summary

• Opened in 1985, 236 rooms, 18,000 sq. ft. meeting/conference space, restaurant, lounge, fitness facility, abutting public golf course.

• Union labor, weak to flat market, stagnant room demand.

• Product Improvement Plan = +/- $5,500,000 (mandatory)

Financial Data

Gross Rev. $10,000,000

Room Rev. $5,900,000

NOI (after mgt./FFE) $1,000,000

Sales Comparables - 2005

Sale Price $9,000,000

Marriott Hotel (suburban – midwest)

w/out PIP w/ PIP

Sale Price P/Room $38,135 $61,444

Direct Cap. Rate 11% 6.9%

Room Rev. Mult. 1.52 2.45

Residence Inn by Marriott (suburban Northeast)

Executive Summary

• Opened in 1998, 156 extended stay rooms, 2,000 sq. ft. meeting space.

• Airport market, strong OCC. (77%), weak ADR ($73), new supply issues.

• Product Improvement Plan = +/- $1,200,000 (mandatory)

Financial Data

Gross Rev. $3,300,000

Room Rev. $3,200,000

NOI (after mgt./FFE) $1,000,000

Sales Comparables - 2005

Sale Price $11,500,000

Residence Inn by Marriott (suburban - Northeast)

w/out PIP w/ PIP

Sale Price P/Room $73,717 $81,410

Direct Cap. Rate 8.7% 7.87%

Room Rev. Mult. 3.6 3.97

Hilton Garden Inn (suburban Northeast)

Executive Summary

• Opened in 2000, 112 rooms, 2,500 sq. ft. meeting space.

• 50% Corporate / 50% leisure market, strong Occ. (72%), strong ADR ($152), very good physical condition, new supply issues. Pricing significantly higher than the “cost to replace”.

• Product Improvement Plan = +/- $600,000 (mandatory)

Financial Data

Gross Rev. $4,400,000

Room Rev. $4,100,000

NOI (after mgt./FFE) $1,650,000

Sales Comparables - 2005

Sale Price $17,750,000

Hilton Garden Inn (suburban Northeast)

w/out PIP w/ PIP

Sale Price P/Room $158,500 $163,850

Direct Cap. Rate 9.3% 8.99%

Room Rev. Mult. 4.33 4.47

Holiday Inn Express (midtown Manhattan)

Executive Summary

• Opened in August 2005, 124 rooms, 400 sq.ft. meeting space.

• 65% Corporate / 35% leisure market, strong Occ. (83% proj.), strong ADR ($220 proj.)

• 2005 performance for select, limited service product was 84.5% @ $232 ADR

• Non Union employees for construction and operations

Financial Data – projected for 2006

Occupancy 83%

Average Rate $220

Gross Rev. $8,450,000

Room Rev. $8,300,000

NOI (after mgt./FFE) $2,900,000 (35%)

Sales Comparables - 2005

Sale Price $36,500,000

Holiday Inn Express (midtown Manhattan)

Sale Price P/Room $294,354

Direct Cap. Rate 7.96% proj.

Room Rev. Mult. 4.40

Comparison By Product Type

$/Room Dir. Cap RR Mult.

Marriott Hotel

(Suburbs)

$38,135 - $61,444 11.0% - 6.9% 1.52 – 2.45

Residence Inn

$73,717 - $81,410 8.7% - 7.9% 3.60 – 3.97

Hilton Garden Inn

$158,500 – 163,850 9.3% - 8.9% 4.33 – 4.47

Holiday Inn Express

$294,354 7.96% (proj.) 4.40 (proj.)

In Summary

Transaction market remains very strongEquity abundant in every hotel product segment

Lenders are very aggressive

Doctors and Dentists not yet in the market

Pricing may be at PeakSingle digit Cap Rates in every segment

New supply additions in almost every market.

Concerns over the rise in interest rates, fuel oil and construction costs.