the u l t imate guest exper ience TM

In the Spirit of Hospitality .............................................................3

Parent Company Profile ................................................................4

Executive Profiles ..........................................................................6

Mission, Core Values & Guest Commitment ...............................9

Operations ...................................................................................10

Human Resources .......................................................................11

Training and Development / Accounting .....................................12

Property Portfolio ........................................................................13

Brand Approvals ..........................................................................18

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In the Spirit of Hospitality

When I began in the hospitality industry there was a phrase

that always exemplified what the industry meant to me, “in the spirit of hospitality”. From a desk clerk through my days as a General Manager and on into my career, this has always been the backbone of my hospitality philosophy, and still fills me with the passion and drive I feel for the industry today. For me personally, this phrase captures the rewarding feeling I received as a General Manager when a guest told me how wonderful their wedding was or the family that gushed about how wonderful their vacation had been. The feeling that I received as a desk clerk recommending a restaurant to a guest only to have them come back and buy me an entrée because they were so thrilled with the restaurant I had recommended. In the spirit of hospitality also captures the family atmosphere that runs through the hotel. The feeling that we are all working as a team toward the common goal of ensuring our guests have a truly memorable guest experience. The idea that we will not only go above and beyond for our guests but also for our fellow associates and colleagues. Ultima Hospitality is extremely excited and proud of the company that we have built through a tremendous amount of hard work and dedication. Our Mission

is to Exemplify the Spirit of Hospitality with Integrity, Passion and Performance. Ultima Hospitality has attracted highly skilled, passionate and motivated associates with proven track records in the industry. We have the experience necessary to drive revenue and profit within the market because we understand the unprecedented market dynamics and challenges we face. What will differentiate us in the market are not only the results that we receive but more importantly how we achieve those results. Ultima Hospitality will deliver results, we have high expectations that we know will reap high rewards. Ultima Hospitality looks forward to developing a mutually rewarding relationship. In the spirit of hospitality, we’ve been expecting you!

Warmest Regards,

Mark ZettlExecutive Vice President, COOUltima Hospitality

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Parent Company

Through the Company’s branded multifamily operating company, Waterton Residential™, it has completed over $3 billion in investments in 110 separate real estate transactions involving a portfolio of over 39,000 apartment units. A sister company, Waterton Commercial, has separately invested over $50 million in a portfolio of commercial, industrial and hospitality assets. All Waterton investments are made through equity joint ventures with major financial institutions, Wall Street Investment banks, and pension funds.

Waterton’s principals and key officers are committed to grow capital for their investors and have made personalinvestments in the company sponsored funds. The Company’s investment strategy relies on its team of professionals who are real estate veterans with expertise in managing a full cycle of a real estate investment beginning with acquisition of an asset, creation of value add through re-positioning and renovation, and disposition of the asset.

Waterton Associates L.L.C. was founded in 1995 and the

management company, Waterton Residential, was founded in 1998. With headquarters in Chicago, IL, Waterton Residential also has regional offices in:• Washington, D.C.• Atlanta, Georgia• Dallas, Texas• San Diego, California

The company currently operates approximately 16,000 apartment homes across 34 communities in 12 states including:• Arizona• California• Colorado• Florida• Georgia• Illinois

Over the past 14 years the staff and structure have grown significantly and the current managements’ organizational structure is as follows:

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Waterton Associates L.L.C. is a private equity real estate investment firm. The principals, Peter M. Vilim and David R. Schwartz, having over 50 years of combined experience in multi-family real estate, launched the Company in 1995 to sponsor multi-family real estate investment funds.

• Maryland• Minnesota• Nevada• North Carolina• Texas• Virginia

Parent Company Continued

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P r o P e rt y o P e r at i o n s

• The management is run nationwide with a corporate staff of 18 associates

• Includes two Vice Presidents, six Regional Managers, a Training & Marketing Manager, an Ancillary Business Services Manager, a Human Resources team, and a Capital Project Management team

a s s e t M a n a g e M e n t

• Staffed by 7 associates• The asset management team includes

two asset managers supported by specialists in portfolio and property level analysis, loan draw coordination, real estate taxes, insurance and legal entities

P r o P e rt y a C C o u n t i n g a n d r e P o rt i n g

• Staffed by 10 associates• Includes Property Controller, Property

Accounting Staff, and Accounts Payable

s y s t e M s a n d t e C h n o l o g y

• Staffed by 13 associates• Includes Systems Trainers, Systems Specialists, Network Specialists and Project

Managers servicing hardware and software functions throughout the company and our communities

Waterton Residential has not only grown in terms of the number of staff members, it has also grown in terms of the quality of its management. Waterton Residential has won a collection of property management awards during their 14 years, but more specifically, in 2008 Waterton Residential had six Satisfacts Award Winners, a resident survey program, for the following properties:

• 2008 - Pinnacle Ridge• 2008 - Hidden Creek• 2008 - Monterey Lakes• 2008 - Tantra Lakes• 2008 - Camino Real

Executive Profiles

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M a r C s w e r d l o w President, General Counsel, Mr. Swerdlow joined Waterton in 2001. Mr. Swerdlow has been involved in real estate investment since 1986. Prior to joining Waterton, Marc was a Senior Investment Manager with GE Capital Real Estate where he was responsible for structuring and closing structured debt and joint venture transactions. During his tenure at GE Capital he was directly involved the origination and structuring of over $600 million of debt and $120 million of equity investments with a total value of $1.1 billion. Before joining GE Capital, Mr. Swerdlow was a Senior Vice President with Heitman Advisory Corporation for eleven years during which he was involved in the structuring and closing of acquisitions of in excess of $1 billion and dispositions in excess of $750 million in all classes of commercial real estate. In addition Marc was involved in the negotiation of investment management agreements with many of Heitman’s institutional clients, including, Colorado Public Employees Retirements System and Iowa Public Employees Retirement System. Mr. Swerdlow graduated from the University of Iowa with a Bachelor’s Degree in Finance and holds a J.D. Degree from DePaul University. Marc is a board member and executive committee member of the Lungevity Foundation.

M a r k Z e t t l Executive Vice President, COO for Ultima Hospitality, Mr. Zettl joined Waterton in 2008 after over 25 years of experience in the Hospitality field. Prior to joining Waterton, Mr. Zettl served as Vice President of Operations for two Chicago based hotel companies whose properties included Doubletree, Radisson, Marriott, and InterContinental. Mr. Zettl is also the former Director of Franchise Services for InterContinental Hotel Group (IHG). During his tenure with IHG, he was instrumental in developing the Holiday Inn Express Brand and oversaw new hotel openings for all Holiday Inns in North America. Mr. Zettl was also integral in hotel level training and wrote many service and revenue workshops. As a General Manager, he has operated the Renaissance O’Hare and the Holiday Inn-Select in Naperville, IL. Mr. Zettl holds a Bachelor of Science degree in Hotel and Resort Management from the Rochester Institute of Technology.

a l i s h a k a l o u s , P h r Vice President of Human Resources for Ultima Hospitality, Ms. Kalous joined Ultima Hospitality in 2010, after consulting on the development of the human resources function for Ultima Hospitality. Prior to joining Ultima Hospitality, Ms. Kalous owned a human resources consulting firm and previously worked for the Hyatt Corporation on the rebranding and development of the human resources platform for the select-service division of Hyatt. Over Ms. Kalous’s hospitality career, she has worked as a Director of Human Resources and held several operations management roles within four-diamond resorts and luxury boutique properties, within organizations such as the Marcus Corporation and Interstate Hotels & Resorts. Ms. Kalous holds a Bachelor of Science degree in Business Leadership with a minor in Communication from George Williams College and maintains her Professional Human Resources designation (PHR) as certified through the Human Resources Certification Institute (HRCI) in conjunction with the Society for Human Resources Management (SHRM).

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C Y N T H I A B O C K Vice President of Sales for Ultima Hospitality, Cynthia joined the Ultima team in 2010. Her prior experience includes Director of Sales & Marketing for Hyatt, Hilton and InterContinental Hotel Group hotels. Brand hotels range from full service properties such as Hyatt Regency, Hilton Suites, Doubletree Guest Suites & Conference Center, Crowne Plaza Hotel & Conference Center to focused service brands such as Hilton Garden Inn and Doubletree Club. Ms. Bock’s extensive hospitality career has included leading a “Doubletree Sales Team of the Year”, being chosen as the Chicagoland cluster lead for Hilton hotel’s Director of Sales, Sales Trainer for regional sales teams, Independent Consultant for the International Association of Conference Centers and opening one of the most sought after banquet facilities in Chicago’s western suburbs; Esplanade Lakes by Doubletree. Ms. Bock’s drive and dedication for hospitality is fueled by a passion for leadership, training, development and overall success in moving market share. Ms. Bock holds a Bachelor of Science degree in both Marketing & Public Relations from Bradley University in Peoria, IL.

D A N I E L P H E L P S Vice President, Asset Management for Ultima Hospitality, Waterton Commercial Properties, Dan began his career in the real estate industry in 1997 with Liska Management as a Building Manager where his responsibilities included managing the aesthetics, maintenance, leasing and daily communications with tenants. In 2002, Dan worked for GVA Williams as a Broker’s Assistant; helping both sellers and

Waterton, Mr. Phelps worked as a real estate consultant at Realogic Analytics. While with Realogic, Mr.

During this time Dan also played an instrumental role in developing a valuation model,

securitization of condominium conversions. Mr. Phelps holds a Bachelors of Science degree in Business Finance-Real Estate from Indiana University, Bloomington.

M E G A N O ’ M A L L E Y , C P AManager for Ultima Hospitality and Waterton Commercial Properties, Ms. O’Malley joinedWaterton in 2008. Her responsibilities include financial, tax, investor and third party reportingfor the Tactical Fund, Ultima Hospitality and Corporate entities. She oversees multiplelocations’ financial reporting, cash management, and budgeting processes as well as the set upand maintenance of the accounting systems. Upon graduating Marquette University with aBachelor’s Degree in Accounting and International Business and subsequently a Master’sDegree in Accounting, Ms. O’Malley joined the Audit and Assurance Practice of Ernst &Young, LLC in Chicago. As an auditor, she received a wide breadth of accounting, auditingand financial reporting experience applicable to private and publicly held companies bothdomestic and international. As an Audit Manager, Ms. O’Malley specialized in the real estateindustry, serving both public and private clients including hospitality, private equity firms, andreal estate investment trusts. Ms. O’Malley is a Certified Public Accountant and a member ofthe Illinois CPA Society and the American Institute of Certified Public Accountants. She alsoserves on the Board of Directors of the Council of International Programs in Chicago.

Executive Profiles Continued

Assistant Vice President, Corporate Accounting

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N I R L I E B L I N G , Senior Vice President, Director of Acquisitions, joined Ultima Hospitality in 2011 and is primarily responsible for overseeing Ultima Hospitality’s acquisition initiatives. Mr. Liebling has executed on over $2 billion in lodging transactions across major markets in the United States. Prior to joining Ultima, Mr. Liebling led acquisitions for Chartres Lodging Group, LLC, where he was responsible for originating transactions, leading due diligence efforts and negotiating all key transaction-related documents including: purchase agreements, management agreements and joint

ng Mr. Liebling oversaw more than $200 million in equity joint venture transactions alongside prominent

roles, Mr. Liebling also served with CNL Hotels & Resorts where he was involved in acquisitions and dispositions as well as with Ernst and Young’s Real Estate Advisory Services practice where he was involved in the due diligence and underwriting of over $1 billion in real estate transactions. Mr. Liebling graduated magna cum laude from theUniversity of Miami, holds a Master’s degree from Cornell University’s School of HotelAdministration and an MBA from the Wharton School at the University of Pennsylvania.

Executive Profiles Continued

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Ultima Hospitality’s Mission: Exemplify the Spirit of Hospitality with Integrity, Passion and Performance

u lt i M a h o s P i ta l i t y ’ s C o M M i t M e n t t o o u r g u e s t s :Ultima Hospitality is committed to the service of our guests and firmly believes that our superior ability to serve the guest will differentiate us as a hospitality company of choice. Our expectation is that our associates provide superior service to not only our guests but also to fellow associates and vendors. We ask that as associates go throughout their day, they consider our core values and remember our sole purpose is to serve our guests in a way that meets their expectations, going above and beyond to create the ultimate guest experience!

ultiMa hosPitality’s CoMMitMent to our CoMMunitiesUltima Hospitality is committed to assisting in the development of the communities in which we are a part of. We strongly believe that our associates are the community’s strongest asset and that by encouraging and developing opportunities for our associates to use their talents through volunteering, the community will reap generous rewards. Ultima participates in numerous community enrichment projects and supports several other national and world-wide volunteer, non-for-profit and charity based programs. Ultima’s associates build stronger communities through personal accountability which sustains long term benefits for personal growth and engagement. It is Ultima’s belief that this rewards the community, associate, asset and investor.

u lt i M a h o s P i ta l i t y ’ s C o r e Va l u e s :Integrity: adherence to moral and ethical principles; soundness of moral character and honesty in all that you do

Accountability: being accountable, liable, or answerable for personal actions & decisions

Performance: completion of tasks with the highest level of achievement

Passion: powerful or compelling emotion or feeling toward what you do that exudes in your daily work, dedication

Operations

s t r at e g i C g o a l sStrategic alignment: The strategic priorities that are transmitted, shared, and made consistent with organizational values and behaviors.

Customer focus alignment: The strategic, performance, and people approaches needed to focus successfully on the customer relationship.

Leadership and talent management alignment: The leadership style, communication, motivation, commitment, and behaviors to create the necessary climate for the organization to be productive.

Performance alignment: The processes and day-to-day behaviors and activities that match and support the strategic priorities of the organization.

Cultural alignment: The values and beliefs of associates and the processes that directly links them so that their behavior supports overall organizational strategy.

s a l e s & M a r k e t i n gUltima Hospitality is committed to acquiring only the highest level of talent within the industry, finding dedicated leaders with a proven sales ability. As an important asset to our team, our sales professionals are given the tools and knowledge in order for them to succeed. Our sales professionals build upon our core values of integrity, accountability, passion and performance to build solid, sustainable and long-term relationships with clients and within the community.

We differentiate ourselves by approaching each hotel from an ownership perspective, as owners ourselves.

F o o d & B e V e r a g eUltima Hospitality is dedicated to providing our guests with food & beverage experience that exceeds expectations and matches the positioning of the hotel with a flare of creativity.

Our food & beverage operation focuses on running an operation that combines profitability with special attention to service and menu items that are tailored to the specific needs and audience of the hotel. We create only the highest quality and most effective vendor relationships to ensure our food and beverage goals are met.

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h r t e C h n o l o g y Taleo Our strategic talent acquisition includes the utilization of a state of the art online applicant tracking system, Taleo Business Edition. Taleo currently works with clients like Hyatt, Hard Rock, Aramark, Hewlett-Packard, and Starbucks. Having an online system also allows us to build in specific filters to ensure our associates match our values and service principles. It also allows for us to recruit utilizing the last industry trends, including social media. Taleo’s versatility also allows for us to integrate behavioral, background, tax credits and drug screening as part of the on-boarding process.

Taleo allows for impressive operational results, including reductions in hiring cycle times, cost per hire, turnover, and risk. Taleo manages all necessary reporting for Affirmative Action and annual EEO reporting. It also allows the corporate office to have direct oversight of all hiring practices and track training required by a variety of brands to ensure compliance. This system directly impacts owner value through increased revenues and decreased costs.

Ultimate Software & Kronos Kronos is our automated, biometric, time and attendance system, reducing the risks of errors and payroll inflation common to manual processes. It allows for detailed labor tracking reports to ensure proper payroll management, directly impacting overall revenue. Together, with our HRIS, Ultimate Software, we are able to provide the most automated people management, reporting and analysis.

a s s o C i at e B e n e F i t s Ultima Hospitality is committed to providing our associates with the highest level of medical, dental and vision coverage. Additionally, with Fidelity Investments as our 401(k) provider, we are able to offer associates assistance in planning their retirement needs. Our entire benefits package is extremely comprehensive and competitive within the industry.

t r a i n i n g & d e V e l o P M e n t Ultima Hospitality strongly believes in hiring and developing the best talent in the industry, ultimately driving revenue to the bottom line. As part of our ongoing commitment, Ultima maintains several company specific training and development programs as well as maintaining compliance with all brand specific programs.

Ultima has developed a college management training program to develop young managers into skilled professionals within the industry and building bench-strength within the organization. Ultima recruits management candidates from some of the most renowned hospitality programs in the country.

Ultima believes our true success lies within our associates therefore, we continuously strive to train and develop the best and brightest in the industry, assisting our associates to succeed at the highest possible level.

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Human Resources

Ultima Hospitality believes that the human resources function plays an integral role in the satisfactions of our associates and guests, while helping to drive revenue.

Accounting

M 3 a C C k n o w l e d g eM3 AccKnowledge links the properties and corporate office to a common site. Data is entered directly into the system at the property level. This reduces the cost, time, and inefficiency of two or more people handling the same paperwork. Management has immediate, same-day daily reports and on-demand financial reporting including general ledger, accounts payable and inventory management. This also allows management to spend less time hunting and gathering information and more time guiding associates and satisfying guests.

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As part of Ultima’s ongoing commitment to use only the highest quality vendors, we have an accounting system that is robust and versatile.

Property Portfolio

Location: • Skokie, Illinois• 18 miles north of downtown Chicago• 15 miles from O’Hare Airport• Excellent location in Skokie, Illinois, a block from Westfield Old Orchard Shopping Mall, the North Shore’s premier shopping destination.

Project Description:• 367 Rooms• Over 22,000 square feet of meeting space• Features a Jameson’s Charhouse restaurant• Acquired in 2006 in an 80/20 joint venture with Oxford OBG• Sole ownership and management of the property as of December 1, 2010

Investment Highlights:• Asset holds the International Association of Conference Centers (IACC) designation making it one of the prominent meeting, conference and banquet centers in the Chicago North Shore• Completed $19.9 million renovation in 2007• Purchased at a significant discount to replacement value

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Location: • Portland, Maine• Largest city in the state• 115 miles north of Boston• Located at the Portland International JetPort• Less than five miles from downtown Portland and the Old Port District which is the largest port in the state

Project Description:• 119 Rooms• 2,300 square feet of flexible meeting space• Acquired in late 2007 in a 95/5% joint venture with the RIM Corp.• Post-closing JPMorgan entered into an 85/15% joint venture of Waterton’s 95%

Investment Highlights:• Completed $4.2 million renovation in 2009 positioning the hotel as one of the premier branded lodging assets in the market• Located at the Portland International JetPort, the Embassy Suites hotel provides an upscale lodging experience for business and leisure travelers alike• The suites product provides a tremendous value to the customer

Property Portfolio

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Location: • Madison, Wisconsin• 2nd largest city in the state• Minutes from State Capital & Big Ten University• Across from the Alliant Energy Center• Less than 10 miles from the Dane County Regional Airport

Project Description• 239 Rooms• Over 17,000 square feet of meeting and exhibition space• Acquired in 2007 in an 85/15% joint venture with the Marcus Corp.

Investment Highlights:• Completed $4.6 million renovation in 2008, included updates to the common areas, meeting facilities and guestrooms• Located in a high barriers-to-entry market• Property offers convenient access to the State Capital, University of Wisconsin- Madison central campus and Alliant Energy Center

Property Portfolio

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Location: • Columbus, Ohio• 15th largest metro area in the US• State Capital & Big Ten University• South end of CBD• Across from new state courthouse

Project Description:• 188 Rooms• Over 12,000 square feet of meeting space in 10 rooms• Two F&B outlets: High Street Grill and Thurber’s Bar• Acquired in 2007 in an 85/15% joint venture with the Marcus Corp.

Investment Highlights:• With the completion of a $9.2 million renovation in 2008, the property now provides the state-of-the-art amenities expected by today’s travelers• Premier hotel destination in the market• Famous historic hotel, first opened in 1897, located within the downtown business district• The property’s signature 4,200 square foot Grand Ballroom provides an unforgettable setting for up to 450 guests

Property Portfolio

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Location: • Framingham, Massachusetts• Framingham/Natick is located within the Boston “Metro West” submarket• 20 miles west of Boston CBD• Direct access to the most heavily traveled east/west thoroughfares

(Mass Turnpike [HWY 90] and Worcester Road [Route 9] as well as beingstrategically located between the areas two major north/south expressways (I-95and I-495)

• 25 miles from Logan International Airport

Project Description:• 375 Rooms• Over 21,000 square feet of meeting space including a 8,500 square foot

Grand Ballroom• Two F&B outlets: Molly Malone’s and J. Witherspoons• Acquired in 2011 in a joint venture with AREA Property Partners

Investment Highlights:• Asset holds the International Association of Conference Centers (IACC)

designation making it one of the prominent meeting, conference and banquetcenters in the market

• Property underwent approximately $13.4 million in renovation in 2008 to softgoods, lobby and the IACC Conference Center

• Immediately adjacent to the areas 2 largest employers: the World Headquarters ofStaples, Inc. and Genzyme Corporation, one of the world’s leading biotechnologycompanies

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Brand Approval

H I LT O N W O R L D W I D E• Hilton• DoubleTree by Hilton• Embassy Suites• Homewood Suites S TA RW O O D H O T E L S A N D R E S O RT S• Sheraton• Element

I N T E R C O N T I N E N TA L H O T E L S G R O U P• Crowne Plaza• Holiday Inn• Holiday Inn Express• Staybridge Suites

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