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					ASPEN HOTEL PORTFOLIO




 CONFIDENTIAL F INANCING M EMORANDUM
                                             TABLE OF CONTENTS



Title                                                                                                  Section




EXECUTIVE SUMMARY ...........................................................................             I



WESTIN PORTLAND ...............................................................................           II



HOTEL LUCIA ........................................................................................      III



HOTEL DELUXE .....................................................................................        IV



HOTEL MAX ..........................................................................................      V



HOTEL PRESTON ..................................................................................          VI



SPONSORSHIP ......................................................................................        VII



AREA INFORMATION ..............................................................................           VIII
EXECUTIVE SUMMARY


The Aspen hotel portfolio is comprised of the Westin Portland, Hotel Lucia, and Hotel deLuxe
located in Portland, Oregon; Hotel Max located in Seattle, Washington; and Hotel Preston located
in Nashville, Tennessee. The Portland and Seattle properties are located within the Central
Business District and benefit from significant barriers to entry. Hotel Preston is conveniently
located adjacent to the Nashville International Airport. The five-property portfolio totals 825
rooms.


Financing Highlights

Westin Portland
Portland, Oregon

    ADR increased from $125.51 to $154.28 from 2003 to year-end 2006, an increase of
     approximately 23%. In addition, ADR was 9% higher than the property’s competitive set for the
     year-ending 2006.

    RevPAR increased from $96.21 to $120.38 from 2003 to year-end 2006, an increase of
     approximately 25%.

    The property has exhibited strong historical occupancies, ranging from 76.7% in 2003 to 78.0% in
     2006.

    Since 2003, the Westin has been ranked 1 st of 7 in RevPAR performance in its competitive set.
     [This statement is no longer valid as RevPAR ranking dropped to 4 of 7 in 2006. However, the
     following statement is valid: “Since 2004, the Westin has been ranked 2 nd of 7 in ADR
     performance in its competitive set.”]

    Further evidence of the Westin’s dominance as Portland’s hotel for the preferred corporate
     traveler is the $125.01 weekday RevPAR compared to the $110.03 for its competitive set for
     2006. This equates to a premium of approximately 14%.

    This Westin prototype hotel produces a net operating income margin of approximately 40% due
     to its “executive style” meeting area and food and beverage operations.

    The Westin Portland is the only luxury segment, nationally branded hotel in downtown Portland
     with a specific focus on the corporate traveler.

    The Westin Portland has consistently received the prestigious “Four-Diamond” rating by the
     American Automobile Association (AAA).

    The property is strategically located in the heart of downtown Portland and is within walking
     distance to Portland’s finest theaters, restaurants, retail stores and office buildings.




                                                                                                   1
Hotel Lucia
Portland, Oregon

    ADR increased 34% from $108.54 in 2003 to $149.59 for year-end 2006

    Originally built in 1909, the hotel completed a $5 million ($39,000 per room) renovation and
     reopened as Hotel Lucia in May 2002.

    Rooms revenue increased from $3,687,700 in 2003 to $5,359,785 in 2006, an increase of
     approximately 45%.

    Occupancy increased from 72.7% in 2003 to 79.4% in 2006, an increase of approximately 9%.

    Hotel Lucia has received numerous awards and national attention for outstanding interior design
     and its one-of-a-kind artwork collection. The hotel boasts the largest West Coast collection of
     photographs by 1972 Pulitzer Prize winner David Kennerly. He has been the personal
     photographer for the past seven presidents.

    The property is strategically located in the heart of downtown Portland and is within walking
     distance to Portland’s finest theaters, restaurants, retail stores and office buildings.


Hotel deLuxe
Portland, Oregon

    Upon acquisition in August 2004, the property operated as the Mallory Hotel and had an ADR of
     $93. Under Aspen Hotel Group’s focused ownership and management, ADR has increased to
     $142.48 for the year-ended 2006.

    The hotel closed in January 2006 and reopened in May 2006 as Hotel deLuxe after an extensive
     $8.5 million ($65,385 per room) renovation to its guestrooms, bathrooms, common areas, lobby
     and restaurant. The renovation, coupled with the increased service level, has positioned the
     hotel to achieve stabilized ADR and occupancy in 2008 of $152.75 and 65.7%, respectively.

    In the month of December 2006, ADR was $141.17, an increase of 27% over the same period in
     2005.

    The property is strategically located three blocks from the Pearl District, which is being developed
     with high-end housing, fashionable restaurants, and shopping. The hotel is easily accessible
     from Interstate-405 and US-26, approximately 2 blocks east and 6 blocks south, respectively.

Hotel Max
Seattle, Washington

    The property, formerly operated as the Vance Hotel, completed a $9 million ($55,215 per room)
     renovation in October 2005 and reopened as the Hotel Max. The renovation included the lobby,
     common areas, guestrooms and bathrooms.

    When the hotel operated as the Vance, ADR in January 2005 was $72.99 and increased by 70%
     to $124.14 for the same period in 2006 as the Hotel Max. RevPAR increased by 125% from
     $30.29 to $68.28 for the same period.




                                                                                                       2
    RevPAR is projected to increase from $65.56 in 2005 to $110.60 when the property stabilizes in
     2007, an increase of 69%.

    Approximately 8.65 million square feet of office space is located within five blocks of the property.

    Hotel Max has been featured on MTV and has been recognized for its glamour and art in
     numerous publications including Condé Nast, Sunset, Blender, Boutique Design, Seattle
     Magazine, Maxim, and Nylon.

    The property is strategically located in the heart of downtown Seattle and is within walking
     distance to Seattle’s finest theaters, restaurants, and retail stores.



Hotel Preston
Nashville, Tennessee

    The hotel completed a $2 million ($10,000 per room) renovation in 2002 and will undergo further
     renovations of approximately $3.5 million ($17,500 per room) in 2006 – 2007.

    Approximately 5 million square feet of office space is located in the immediately surrounding
     area.

    The property is strategically located 2 miles from the entrance of the Nashville International
     Airport and is within close proximity to downtown Nashville.

    Passenger traffic at the Nashville International Airport grew from 8,336,168 in 2004 to 8,877,481
     in 2005, an increase of approximately 6.5%.

    The interchange of Interstate-40 and Briley Parkway has been undergoing re-construction for the
     past 2 years, and is scheduled for completion in June 2006. This reconfiguration will enhance the
     access and visibility to the hotel (140,000 cars per day).




                                                                                                         3
                                          Net
                       Number of
                                   Operating Income      Debt        Financing Terms
                        Rooms            2006
Westin Portland           205         $4,310,234      $40,000,000    10-Year Fixed Rate
Portland, Oregon
Hotel Lucia               127          2,730,665       25,000,000    10-Year Fixed Rate
Portland, Oregon
Hotel deLuxe              130          1,018,963       15,000,000         Interim
Portland, Oregon

Hotel Max                 163          2,905,705       22,400,000    10-Year Fixed Rate
Seattle, Washington
Hotel Preston             200          791,714         5,000,000          Interim
Nashville, Tennessee
Total                     825                         $107,400,000




                                                                                          4
PROPERTY DESCRIPTION


Address            The Westin Portland
                   750 SW Alder Street
                   Portland, Oregon


Location           The Westin Portland is located in the heart of Portland’s financial and retail
                   district. The property is located at the southeast corner of SW Park Avenue
                   and SW Alder Street, approximately six blocks west of the Morrison bridge
                   off-ramp in the western-end of Portland’s Central Business District (CBD).
                   SW Park Avenue is a one way north-south arterial that bisects the CBD,
                   while SW Alder Street runs east-west and connects to Interstate-405 six
                   blocks to the west and Interstate-5 approximately one mile to the east.

                   The hotel is located within minutes of:

                          Rose Garden Arena                Pioneer Art Museum
                          Rose Garden                      Arlene Schnitzer Concert Hall
                          Memorial Coliseum                Federal Building
                          Oregon Museum of Science         Mark O. Hatfield Federal
                           and Industry                      Courthouse
                          Lloyd Center                     State Office Building
                          Oregon Convention Center         Portland State University
                          Oregon Zoo                       Pioneer Square Shopping Center
                          Pioneer Place Courthouse         Nordstrom

                   Convenient access to the hotel is provided via Interstate-5, the major north-
                   south highway of the region and Interstate-84, the major east-west corridor of
                   the Eastside. Interstate-5 is the west coast’s major north-south interstate
                   connecting the Canadian border 250 miles to the north and the Mexican
                   border approximately 1,125 miles south. Interstate-84 connects Portland to
                   the Oregon Coast approximately 80 miles to the west. Interstate-405, which
                   loops around the Westside of downtown Portland, is accessible six blocks to
                   the west of the hotel. Portland International Airport is located 12 miles north
                   of the hotel and is easily accessible by Interstate-205 from Interstate-84
                   north.


Description        The Westin Portland is a 19-story, 205-room full service luxury hotel offering
                   a 130-seat restaurant and bar, 2,060 square feet of meeting space, a fully-
                   equipped fitness center, two luxuriously appointed lobby lounge areas and
                   on-site subterranean parking for 20 cars. The hotel has been awarded the
                   “Four-Diamond” designation from the American Automobile Association
                   (AAA).

                   The hotel is designed with a French provincial architectural theme. The
                   exterior of the building is sheathed in a limestone façade up to the 2nd floor,
                   and the balance of the building is composed of ecru-colored concrete block
                   panels. The top is capped by an antique-green colored hip roof.




                                                                                                5
                  The main entrance and the covered Porte Cochère entrance are both
                  accessed from SW Alder Street. Guests enter the hotel through a vestibule
                  adorned in mahogany wood and beveled glass. The registration desk is
                  situated to the left of the lobby as is the Library. The Living Room is to the
                  right of the Lobby. The Lobby area is enhanced with 20-foot vaulted ceilings,
                  cherry wood paneling, and recessed lighting. The lobby is decorated with
                  original contemporary art, and the floor is tiled in limestone. The Library and
                  Living Room are both well-appointed seating areas, accommodating up to 20
                  people, respectively. Both rooms have plush leather furniture, carpeting,
                  crown moldings, and chandeliers. The living room has a dramatic gas-
                  burning fireplace, newspapers, magazines, and classic books which are
                  available to guests.

                  Two passenger elevators and the lobby entrance to the restaurant are just to
                  the right of the registration desk with a separate entrance to the Daily Grill
                  from SW Park Street.


Hotel Amenities   The Westin Portland offers the following amenities:

                       Highly rated dining at the Daily Grill.
                       24-hour valet parking.
                       24-hour room service.
                       24-hour fully equipped fitness center.
                       Nightly turndown service.
                       Executive Business center.
                       High-speed wireless Internet access.
                       Lobby lounge and Library area with seating for approximately 40
                        guests.
                       Daily newspaper delivery to each guestroom.
                       Dry cleaning/laundry service.


Guestrooms        The Westin Portland features 205 guestrooms including 17 suites. The room
                  mix is comprised of Double and King rooms, and Suites. Most of the
                  guestrooms offer excellent views of downtown Portland.

                  The following is a breakdown of guestrooms:

                       Type                            Quantity
                       Deluxe Rooms
                          Double                          31
                          King                            157
                       Park Avenue Suites                 16
                       Presidential Suite                  1
                       Total                              205




                                                                                               6
                    The guestrooms are furnished in an elegant but contemporary style. Each
                    room has a large work desk topped in black granite, an extendable lamp with
                    an outlet, an ergonomic leather executive desk chair, and a plush lounge
                    chair. Each guestroom includes the Heavenly BedTM which has a nightstand
                    and lamp on each side, a radio/CD/alarm clock, and two telephones with
                    data port and speaker phone with voice mail. All rooms have an armoire and
                    remote controlled 27” color television featuring a Lodgenet on-command
                    system providing in-room movies and video games along with a mini-bar.
                    Additional room amenities include an electric safe, iron and ironing board,
                    and a coffee maker.
                                                                    TM
                    Typical bathrooms feature the Heavenly Shower which includes a shower
                    with dual showerheads and upgraded amenities. Bathrooms contain
                    Spanish tile floors, marble vanities, and a separate bathtub. The spacious
                    bathrooms also include a lighted make-up mirror and a hair-dryer.


Guestroom
Amenities           The Westin Portland offers the following guestroom amenities:

                          High-speed wireless Internet access.
                          Dual line speaker telephone with voicemail.
                          Remote controlled 27” color television.
                          On-command movies and video games.
                          Radio/CD/Alarm Clock.
                          Mini bar.
                          Iron and ironing board.
                          Coffee maker.
                          Bathrobes.
                          Lighted make-up mirror.
                          Heavenly BedTM .
                          Heavenly ShowerTM.
                          Pillow Menu.
                          “Make It So” Service Button.


Suites              There are 17 suites, including one 2-room Presidential Suite on the 20th
                    Floor and 16 one-room Park Avenue Suites. The Park Avenue Suites have
                    sleeper sofas and coffee tables in a large living area. The furnishings are
                    similar to that of a deluxe room.

               TM                                                                   TM
Heavenly Bed        Westin Hotels distinguishes itself with the Heavenly Bed , which is
                    comprised of:

                          Custom-designed Simmons Beauty Rest pillow-top mattress.
                          Triple sheets ranging from 180 to 250 thread count.
                          Down-filled blanket.
                          Sumptuous down comforter with crisp white duvet coverlet.
                          Two queen-sized, hypo-allergenic pillows.
                          Two king-sized natural feather pillows.
                          Decorative boudoir pillow.




                                                                                             7
Heavenly ShowerTM            The Heavenly ShowerTM is an extension of the Heavenly BedTM program and
                             contains invigorating dual shower heads and upgraded amenities.


Daily Grill
Restaurant                   The 130-seat Daily Grill is located on the first floor and serves breakfast,
                             lunch, and dinner. The 4,100 square-foot restaurant serves traditional
                             American fare, featuring a classical architectural theme, accented with
                             hardwood paneling. The Daily Grill was ranked as the #1 destination for a
                             power lunch in Portland by the Portland Business Journal in 2005. Hours of
                             operation are daily from 6:30 a.m. – 11:00 p.m. The restaurant also provides
                             all the food and beverage for the hotel’s catered meetings and banquets, as
                             well as room service, which is available 24 hours a day. The Daily Grill
                             restaurant is owned by an affiliate of the borrower and is managed by Grill
                             Concepts Inc.


Meeting &
Banquet Facilities           The Westin Portland contains approximately 2,060 square feet of meeting
                             space located on the second floor. The meeting space can accommodate
                             groups from 10 to over 130 people. All of the meeting rooms have wireless
                             high-speed Internet access as well as “state-of-the-art” audio/visual
                             capabilities. The meeting space is configured as follows:



                                        Square Feet    Reception   Banquet    Theatre    U-Shape    Conference


                     Alder Ballroom      1,282          132        120        120         50           54
                          East                  660          68         48         60         27           26
                          West                  622          64         48         60         27           26
                     The Park Room        550            58         48         50         21           23
                     The Boardroom        228                       10                                 10
                     TOTAL               2,060


Fitness Center               The fitness center was recently renovated and is located on the third floor. It
                             is fully equipped with three treadmills, two stair climbers, two stationary
                             bikes, free weights, and state-of-the-art weight stations. The fitness center
                             also contains medicine balls and televisions.


Executive
Business Center              The Executive Business center includes two desktop computers, each with a
                             high-speed internet connection.    The Executive Business center also
                             contains a fax/copy/scanner machine.


Site                         Approximately .23 acres, owned fee simple.




                                                                                                                 8
Age       Completed in August 1999.


Parking   There are 20 parking stalls on-site: 15 subterranean and 5 stalls in the porte-
          cochere. There is additional overflow leased parking one block south at Star
          Park.




                                                                                       9
CONSTRUCTION SPECIFICATIONS


Foundation          Continuous footings poured on a steel reinforced 5’ concrete mat.


Exterior Walls      Steel studs supported on P.T. slab with limestone tiles on exterior of building.


Roof                Flat with built-up composition hip style, metal clad, green.


Flooring            Guest and public areas carpeted; lobby limestone.


Interior Finish     Common areas – Faux painted over gypsum and vinyl wall covering.
                    Back of house – Painted gypsum and tile ceilings.
                    Guestrooms – Vinyl wall covering.


HVAC                185-ton McQuay chiller 4-pipe system.        Each guestroom has a separate
                    control unit.


Bathrooms           Floor, shower and tub surrounds tile covered; some vinyl wall covering.


Lighting            Public area – recessed cans and chandeliers.


Elevators           2 Otis public elevators with a speed of 350 feet per minute.
                    1 Otis service elevator with a speed of 350 feet per minute.
                    1 sidewalk hoist elevator.


Fire/Life/Safety
Systems             The building is sprinklered throughout – magnetic fire doors in public area
                    and smoke guard screens in front of elevator doors. Hallways have fire
                    extinguishers.




                                                                                                 10
SUMMARY OF MANAGEMENT CONTRACT


Owner               Portland Hotel, LLC.


Manager             Starwood Hotels & Resorts Worldwide, Inc.


Commencement
                              th
Date                August 15 , 1999.


Expiration Date     August 31st, 2009.


Renewals            One Ten-year (10-year) extension through August 31, 2019.


Base
Management Fee      3.00% of annual Gross Operating Revenue.


Incentive
Management Fee      There are two incentive fees. The “First Incentive Fee” is equal to the lesser
                    of: (i) 20% of the Cash Profit after debt service and a 15% return on equity,
                    or (ii) $300,000 (which amount shall be reduced to $250,000 if Owner retains
                    an independent food and beverage operator) minus the Base Fee for that
                    Operating Year. The amount specified in (ii) shall be increased each
                    Operating Year by the increase (if any) in the Consumer Price Index during
                    the most recent 12-month period for which statistics are published prior to the
                    Operating Year for which the calculation is being made. The “Second
                    Incentive Fee” is equal to 20% of Distributable Cash after the First Incentive
                    Fee and an additional 7% (total of 22%) return on equity.            Incentive
                    Management Fees are subordinate to debt service.


Owners Right to
Early Termination   Owner shall have the right to terminate this Agreement if: (a) Owner sells,
                    exchanges, or otherwise conveys all of its interest in the Hotel after the 10th
                    anniversary of the Opening Date; (b)The Hotel has not produced during the
                    first five (5) full Operating Years an average annual ten percent (10%) return
                    on Owner’s Actual Equity; (c) If for any two (2) consecutive Operating Years
                    commencing after the third (3rd) full Operating Year (each such two-year
                    period being referred to as a “Performance Test Period”), the Hotel’s Annual
                    RevPAR shall be less than one hundred five percent (105%) of the Average
                    RevPAR of the Competitive Set for each of the Operating Years in such
                    Performance Test Period.




                                                                                                11
MARKET INFORMATION


The Westin Portland currently competes with the following properties:


                                          Competitive Set Overview
                                                                      Total              Meeting
                Number                     Hotel                              Suites
                                                                     Rooms               Space

                     1        Marriott Portland City Center           249       10        3,500
                              520 SW Broadway

                     2        Hotel Vintage Plaza                     107       21        4,500
                              422 SW Broadway

                     3        Hotel Monaco                            221       135       4,500
                              506 SW Washington St.

                     4        The Governor Hotel                      100       24       22,000
                              611 SW 10th Ave.

                     5        Heathman Hotel                          150       33        3,000
                              1001 SW Broadway

                     6        The Benson Hotel                        287       55       14,000
                              309 SW Broadway

                 TOTAL                                               1,114
                              The Westin Portland                     205       17        2,060


The following table shows the average daily rate for the competitive set and for the Westin Portland for
the trailing twelve months ending February 2007:



                                    Trailing Twelve Months February 2007

                                                   Average Daily Rate          Occupancy

                    Competitive Set*                     $143.19                 78.9%

                    The Westin Portland                  $154.29                 80.5%
                    Source: Smith Travel Research

                   * Competitive set includes the Westin Portland.




                                                                                                     12
13
PROPERTY DESCRIPTION


Address            Hotel Lucia
                   400 SW Broadway
                   Portland, Oregon


Location           The property is located at the southeast corner of SW Broadway and SW
                   Stark Street approximately six blocks west of the Morrison bridge off-ramp in
                   the western end of Portland’s Central Business District (CBD). The hotel is
                   two blocks north of the retail shopping core along SW Broadway, downtown
                   Portland’s primary north-south retail street. SW Stark Street, two blocks
                   north of SW Alder Street, connects to Interstate-405 eight blocks to the west
                   and Interstate-5 approximately one mile to the east.

                   The hotel is located within minutes of:

                          Rose Garden Arena                    Pioneer Art Museum
                          Rose Garden                          Arlene Schnitzer Concert Hall
                          Memorial Coliseum                    Federal Building
                          Oregon Museum of Science             Mark O. Hatfield Federal
                           and Industry                          Courthouse
                          Lloyd Center                         State Office Building
                          Oregon Convention Center             Portland State University
                          Oregon Zoo                           Pioneer Square Shopping Center
                          Pioneer Place Courthouse             Nordstrom

                   Convenient access to the hotel is provided via Interstate-5, the major north-
                   south highway of the region and Interstate-84, the major east-west corridor of
                   the Eastside. Interstate-5 is the West Coast’s major north-south interstate
                   connecting the Canadian border 250 miles to the north to the Mexican border
                   approximately 1,125 miles south. Interstate-84 connects Portland to the
                   Oregon Coast approximately 80 miles to the west. Interstate-405, which
                   loops around the Westside of downtown Portland, is accessible eight blocks
                   to the west of the hotel. Portland International Airport is located 12 miles
                   north of the hotel and is easily accessible by Interstate-205 from Interstate-84
                   north.


Description        The Hotel Lucia is a 9-story, 127-room full-service boutique hotel offering a
                   126-seat restaurant and bar, 2,030 square feet of meeting space, a fully
                   equipped fitness center and an executive business center. The main
                   entrance fronting SW Broadway opens to a dramatically spacious hotel lobby
                   featuring 15’ ceilings and three large skylights. The lobby’s white tile floors
                   are accented by dark sapele wood paneled walls.

                   In the center of the lobby, an area rug lays beneath a large black table where
                   an oversized vase is filled with fresh cut flowers. To the right of this table is
                   the front desk, which is limestone accented with a stainless steel counter top.
                   Ceiling mounted tear drop lighting hangs above the front desk. The light
                   casts a warm glow off of the long white drapes hanging in the background of
                   the front desk.




                                                                                                 14
                  Situated to the left of the front desk is the Fireside Lounge which features a
                  large fireplace, velour sofa, two leather chairs, and a coffee table. The walls
                  are dark sapele wood and a decorative frosted glass wall separates the
                  lounge from the lobby. A large original oil-on-canvas painting is mounted
                  above the fireplace. Lighting is provided by ceiling mounted indirect and
                  inset recessed fixtures as well as natural light via a large pane window facing
                  SW Broadway.

                  In the rear of the lobby is the main lounge area and entrance to the
                  restaurant, Typhoon! It is anticipated that Typhoon! will open a bar/lounge to
                  the left of the hotel entrance in a space that is adjacent to the Fireside
                  Lounge. The lounge will feature a 58 seat bar and is scheduled to open in
                  July 2006. The main lounge is decorated with a large bronze statue, and a
                  generous sitting area with four leather chairs, a velour couch and velour
                  chaise lounge. Other furnishings include two dark sleek coffee tables, an
                  end table featuring a red bowl filled with green apples, and two large area
                  rugs. This area also features multiple sculptures, two large original oil-on-
                  canvas paintings and twelve Kennerly photographs. It is illuminated by
                  ceiling mounted stainless steel track lighting and natural light from the sky
                  lights.

                  The hotel’s corridors are lined with Kennerly photographs mounted on vanilla
                  colored walls which provide a subtle contrast to the white trim and wainscot.
                  The textured ceilings have inset recessed lighting and large white frosted
                  fixtures.

                  Since opening, Hotel Lucia has been recognized in numerous travel
                  publications. Travel & Leisure ranked the hotel in the top 500 in the world.
                  Condé Nast placed Hotel Lucia in the top 80 hottest new hotels in the world.
                  National Geographic Traveler ranked Hotel Lucia as one of the best new
                  hotels in North America and part of their favorite 56 hotels. USA Today
                  named the hotel the “Hippest Hideaway.”


Hotel Amenities   Hotel Lucia offers the following amenities:

                         Highly rated dining at the Typhoon! restaurant.
                         24-hour valet parking.
                         24-hour room service.
                         24-hour fully equipped fitness center.
                         Nightly turndown service.
                         High-speed wireless Internet access.
                         Executive Business center.
                         Daily complimentary newspaper.
                         Concierge service.
                         Dry cleaning/laundry service.




                                                                                              15
Guestrooms   The Hotel features 127 guestrooms, including 8 suites. The guestroom
             furnishings reflect a contemporary look softened by vanilla colored walls,
             which are trimmed with white crown molding, and wooden window blinds.
             Carpeting is a light and dark brown checkered pattern. Typical furnishings
             include mahogany dressers which include an honor bar and a television,
             chairs, tables, floor lamps and desk lamps. Most rooms also include a sleek
             black executive desk with matching ergonomic chair.           Most of the
             guestrooms offer excellent views of downtown Portland.

             The following is a breakdown of guestrooms:

                  Type                          Quantity
                  Double-Doubles                  16
                  Deluxe Rooms
                      Queen                        21
                      King                         59
                  Superior Rooms
                      King                         23
                  Junior Suites                     7
                  Gallery Suite                     1
                  Total                            127

             The beds in the guestrooms feature a luxurious pillow top mattress with a
             white duvet and pillows which also match the white lampshades and desk
             lamps. A unique amenity is the Pillow Menu, which allows each guest to
             order pillows ranging from “soft” to “extra firm.” Each bed features either a
             mahogany or leather head board trimmed with black wood.

             The bathrooms have white tile floors and light brown painted walls. The
             bathrooms feature stainless steel sinks and towel racks, with the sinks sitting
             on shelves of frosted glass. Most of the bathrooms have white cloth shower
             curtains with the exception of a few rooms that have glass enclosures.


Guestroom
Amenities    Hotel Lucia offers the following guestroom amenities:

                    High-speed wireless Internet access.
                    Dual-line cordless telephone with voicemail.
                    Remote controlled color 27” television.
                    On-command movies and video games.
                    Radio/CD/Alarm Clock.
                    Mini bar.
                    Electric safe.
                    Iron and ironing board.
                    Coffee maker.
                    Bathrobes.
                    Pillow Menu.
                    “Make It So” Service Button.




                                                                                         16
Suites                The hotel has seven Junior suites and one Gallery suite. The Junior suites
                      are located at the end of the hotel corridors and can be separated creating
                      one master suite. The Junior suites offer many of the amenities and
                      furnishings included in the other guestrooms with the addition of a living room
                      area complete with a sofa, a 27” flat screen television, and two bathrooms.
                      The Gallery suite is similar to the Junior suite but offers a fireplace, dining
                      room, wet-bar, and a large flat screen television with DVD and stereo.


Typhoon! Restaurant   Hotel Lucia is home to Portland’s hippest and highly rated Thai and American
                      cuisine restaurant. According to Bon Appetit magazine, Typhoon!’s chef is
                      considered one of the “hottest chefs in America.” The 3,812 square foot
                      restaurant is recommended by Sunset, Zagat, and Esquire magazines. The
                      restaurant offers seating for up to 126 people and provides 24-hour room
                      service.

                      Commencing in December 2001, Typhoon! executed a five-year lease with
                      two 5-year renewal options. Typhoon! has given notice that they will
                      exercise their first option. In addition, it is anticipated that they will expand
                      their operations to include a bar/lounge. The restaurant will pay the higher of
                      an annual base rent of $129,600 NNN or percentage rent of 7% of sales.
                      Rental obligations for the lounge will begin in July 2006 at an annual rental of
                      $64,800 NNN. The restaurant will also pay as additional rent, 10% of gross
                      revenues for any banquet services. Annual rent will be adjusted each August
                      by the Consumer Price Index.


Meeting &
Banquet Facilities    Hotel Lucia provides approximately 2,030 square feet of meeting space
                      located in two separate rooms, Monterosso and Genoa. The Monterosso
                      room is the larger of the two and is adjacent to the large lounge area located
                      in the lobby. The Genoa room is located on the lower level of the hotel near
                      the executive business and fitness centers. The meeting space can
                      accommodate groups from 10 to 130 people.              The meeting space is
                      configured as follows:

                                            Square Feet   Classroom   U-Shape   Conference


                       The Monterosso          1,160         40         30           -
                       The Genoa                 870         20          -          15
                       TOTAL                   2,030



Fitness Center        The fitness center offers a variety of equipment such as two treadmills, one
                      bicycle, one Stairmaster, and a complete set of free weights.




                                                                                                    17
Executive
Business Center   The Executive Business center includes two desktop computers, each with a
                  high-speed Internet connection, as well a fax/copy/scanner machine.


Site              Approximately 0.22 acres, owned fee simple.


Age               The property was originally built in 1909. It was completely renovated at a
                  cost of $5 million ($39,000 per room) and reopened in May 2002.


Parking           Hotel Lucia has an agreement with Star Park for up to 55 reserve parking
                  spaces. More spaces are available if necessary.




                                                                                          18
CONSTRUCTION SPECIFICATIONS


Foundation          Reinforced concrete.


Exterior Walls      Brick, terrra cotta, steel frame.


Roof                Flat with built-up composition.


Flooring            Carpet and sandstone tile in guest and public areas.


Interior Finish     Common areas – Painted drywall, mahogany panels.
                    Back of house – Painted gypsum
                    Guestrooms – Painted lathe plaster and gypsum.


HVAC                60-ton chiller for lobby and a 60 ton, four compressor chiller for tower.


Bathrooms           Tile floor, shower and tub surround.


Lighting            Public area – recessed cans and chandeliers.



Elevators           Two Westinghouse elevators and one sidewalk hoist elevator.


Fire/Life/Safety
Systems             The building is sprinklered with magnetic fire doors in public areas. Hallways
                    have fire extinguishers.




                                                                                                19
MARKET INFORMATION


Hotel Lucia currently competes with the following properties:

                                        Competitive Set Overview

                                                                      Total            Meeting
             Number                       Hotel                      Rooms    Suites    Space

                 1       The Benson Hotel                             287      55       14,000
                         309 SW Broadway

                 2       Hotel Vintage Plaza                          107      21       4,500
                         422 SW Broadway

                 3       Hotel Monaco                                 221      135      4,500
                         506 SW Washington St.

                 4       Westin Portland                              205      17       2,060
                         750 SW Alder St.

                 5       Heathman Hotel                               150      33       3,000
                         1001 SW Broadway

             TOTAL                                                    970
                         Hotel Lucia                                  127       8       2,030


The following table shows the average daily rate and occupancy for the competitive set and for Hotel
Lucia for the trailing twelve months ending February 2007:


                                     Trailing Twelve Months February 2007
                                                     Average Daily Rate       Occupancy

                     Competitive Set*                      $149.11              79.4%

                     Hotel Lucia                           $148.00              79.7%
                     Source: Smith Travel Research

                     * Competitive set includes Hotel Lucia.




                                                                                                 20
21
PROPERTY DESCRIPTION


Address            Hotel deLuxe (formerly operated as The Mallory Hotel)
                              th
                   729 SW 15 Avenue
                   Portland, Oregon

                                                           th
Location           The property is located on SW 15 Avenue, on the western border of the
                   Central Business District (CBD), three blocks from the fashionable Pearl
                   District in downtown Portland. The property will be the closest full service
                   hotel to the Pearl District. The Pearl District was an older warehouse area
                   that has been transformed with over $2 billion in redevelopment investments
                   over the last 10 years, and is quickly becoming the hippest section of
                   Portland. The hotel is just blocks from the retail shopping core along SW
                   Broadway, which is downtown Portland’s primary north-south retail arterial.

                   The hotel is located within minutes of:

                          Rose Garden Arena
                          Rose Garden
                          Memorial Coliseum
                          Oregon Museum of Science
                           and Industry
                          Lloyd Center
                          Oregon Convention Center
                          Oregon Zoo
                          Pioneer Place Courthouse
                          Pearl District
                          PGE Park
                          Pioneer Art Museum
                          Arlene Schnitzer Concert Hall
                          Federal Building
                          Mark O. Hatfield Federal
                           Courthouse
                          State Office Building
                          Portland State University
                          Pioneer Square Shopping
                           Center
                          Nordstrom
                          Tiffany Center




                                                                                            22
Convenient access to the hotel is provided via Interstate-5, the
major north-south highway of the region and Interstate-84, the
major east-west corridor of the Eastside. Interstate-5 is the West
Coast’s major north-south interstate connecting the Canadian
border 250 miles to the north to the Mexican border
approximately 1,125 miles south.           Interstate-84 connects
Portland to the Oregon Coast approximately 80 miles to the
west. Interstate-405, which loops around the Westside of
downtown Portland, is accessible two blocks to the east of the
hotel. Portland International Airport is located 10 miles north of
the hotel and is easily accessible by Interstate-205 from
Interstate-84 north. US-26 is located ½ miles south of the hotel,
accessible by Interstate-405, 2 blocks east.

Tri-Met, Portland’s mass transit system runs through the
neighborhood and immediately south of the hotel. Tri-Met
recently completed the Central City Streetcar line though the
downtown, running from Portland State University on the South
to the Pearl District to the north and St. Vincent’s Hospital to the
west. The streetcar line provides direct access to Tri-Met’s light
rail line in the central part of Downtown Portland.




                                                                 23
              The Tiffany Center is listed on the National Register of Historic
              Places and provides approximately 11,000 square feet of
              meeting space located one-half block from the hotel. The Tiffany
              Center offers a variety of meeting spaces and banquet rooms
              that can fulfill the requirements of most corporate events. PGE
              Park, home to the AAA Portland Beavers and Portland Timbers,
              is located ¼ mile south of the property. PGE Park has a seating
              capacity of 19,566 and hosts approximately 360,000 fans per
              year.

              The Pearl District includes a broad mix of specialty retail,
              commercial and residential uses. The mix of specialty retail in
              the district reflects the upscale taste and preference of the new
              residential population in the area, which tends to be young,
              affluent, highly educated, professional single or couple
              households living in the newly designed lofts, apartments or
              condominiums in the northern edge of the district.

              The most prominent new development for the Pearl District is the
              Brewery Blocks development on the site of the former Blitz-
              Weinhard Brewery. This $250 million development is located
              along the southern edge of the Pearl District and will include a
              mix of housing, office and retail space situated on a five-block
              area of the district. The transformation of these blocks into a
              major retail/entertainment and upscale residential community will
              create a key link between the Pearl District, Historic Old Town
              and Downtown Core Districts.


Description   The hotel is an 8-story, 130-room, full-service boutique hotel that
              offers a restaurant and bar, approximately 1,800 square feet of
              meeting space, a fully equipped fitness center, and an Executive
              Business center.

              Guests enter the main entrance along 15 th Avenue by walking up
              white marble stairs to the dramatic 2nd floor lobby, which is
              adorned with white marble floors and white walls accented by
              gold trim, ornate columns and extensive ceiling detail. The hotel
              has a retro 1960’s “Hollywood” theme once the renovation is
              complete.

              To the right of the entrance is the registration desk and two of
              the three meeting rooms. All of the public space, including the
              restaurant, lounge, guest registration and lobby, and meeting
              space are located on the first floor. The fitness center is located
              on the 2nd floor. Two elevators are located to the left of the
              meeting rooms. Further to left of the elevators is the largest
              meeting room, the Screening Room. The Driftwood Lounge and
              Dining Room restaurant are located to the left of the entrance
              and are adjacent to each other.

              A 200-stall four-story parking structure is located across the
              street from the hotel, on SW Yamhill Street and 15 th Avenue.
              Located on the ground floor of the parking structure is 13,595
              square feet of office space that is leased to the United States



                                                                              24
                        General Services Administration (Social Security district office).
                        The lease commenced in October 1997 for a term of 10 years
                        and there is an additional 5-year option to renew. Annual rental
                        obligations are currently $268,168 and are adjusted each
                        September by the Consumer Price Index. The lease provides for
                        20 parking spaces free of charge.

Renovation/Reposition
Summary                 The 130-room Hotel deLuxe (formerly known as The Mallory)
                        and the adjacent 200-stall, four story parking structure were
                        acquired by The Aspen Hotel Group in August 2004 for $9
                        million. At the time of acquisition, the property was operating at
                        60% occupancy and an ADR of $93. The hotel had no presence
                        in the dominant distribution channels, including the GDS
                        systems, Consortia, Extranets, or Internet. The Aspen Hotel
                        Group immediately repositioned these channels via a new web
                        site and the addition of Pegasus/Unirez as the GDS provider. As
                        a result, the property achieved 69.5% occupancy at an ADR of
                        $102.37 in 2005 prior to any renovation. Prior to acquisition, all
                        ancillary revenue sources including parking, food and beverage,
                        telephone, and internet access were free to guests. Since
                        acquisition, Aspen began charging for these services which has
                        resulted in increased revenue.

                        An $8.5 million ($65,385 per room) renovation commenced in
                        February 2006. The renovation was completed in May 2006, at
                        which time the hotel reopened as the Hotel deLuxe. The
                        renovation included new guestrooms, bathrooms, plumbing,
                        lighting, as well as a complete renovation and design of the
                        public areas, restaurant and lounge, and meeting space. The
                        hotel décor has a 1960’s Hollywood theme.

                        The following chart summarizes the cost of the renovation:

                                                  Renovation Budget

                               Construction                                  $5,032,040
                               FF&E                                           1,089,064
                               OS&E                                             753,888
                               Project Development                              602,118
                               Marketing/PR                                     208,000
                               PMS System                                       172,500
                               Art Installation                                 149,890
                               Communications Upgrade                            95,500
                               Signage/Permits/Fees                              65,500
                               Project Contingency                              343,500
                               Total                                         $8,512,000




                                                                                       25
Hotel Amenities
                  Hotel deLuxe offers the following amenities:

                         Driftwood Lounge and Dining Room restaurant.
                         24-hour room service.
                         24-hour fully equipped fitness center.
                         Nightly turndown service.
                         Executive Business center.
                         High-speed wireless Internet access.
                         Spiritual Menu.
                         Complimentary daily newspaper.
                         Same day laundry service.
                         Pillow Menu.
                         “Make It So” Service Button.

Guestrooms        The guestroom furnishings will reflect a contemporary retro
                  1960’s Hollywood look and style. Typical furnishings will include
                  mahogany dressers, chairs, tables, floor lamps and desk lamps.
                  The rooms will also include an honor bar and a 32’’ flat panel
                  television. Most rooms will also feature a modern blue desk
                  chair, a sleek black desk, distinctive artwork, an i-home docking
                  station to play music from an i-pod, and bathrobes. Most of the
                  guestrooms offer excellent views of downtown Portland.

                  The following is a breakdown of guestrooms:

                       Type                          Quantity
                       Standard
                           King Deluxe                  57
                           Queen Deluxe                 31
                           Queen Premier                8
                       Suites
                           King Feature                  20
                           Queen Premier                 7
                           King Premier                  6
                           Garbo Suite                   1
                       Total                            130


                  The beds in the guestrooms will feature comfortable pillow top
                  mattresses with a white duvet and pillows which will also match
                  the white lampshades and desk lamps. A unique amenity is the
                  Pillow Menu, which allows each guest to order pillows ranging
                  from “soft” to “extra firm.” Above each bed is a white head
                  board, of which some are trimmed with white wood.

                  The bathrooms will feature white marble floors, light blue painted
                  walls, stainless steel sinks and towel racks, a curved shower
                  rod, and Speakman shower head.

Guestroom
Amenities         Hotel deLuxe offers the following guestroom amenities:

                       High-speed wireless Internet access.
                       Telephone with voicemail.



                                                                                 26
                               Remote controlled 32” flat panel color television.
                               On-command movies and video games.
                               i-Home docking station.
                               Mini bar.
                               Iron and ironing board.
                               Coffee maker.
                               Bathrobes.
                               Pillow Menu.
                               “Make It So” Service Button.


Suites                  The hotel contains 34 suites. The suites offer many of the
                        amenities and furnishings included in standard guestrooms and
                        also include a living room area complete with a sofa and a 42’’
                        flat panel television. Each suite also contains a velour bench, a
                        walk-in closet, two phones, and a bronze and glass valet in the
                        living room.


Food & Beverage
Facilities              The Driftwood Lounge and the adjacent Dining Room restaurant
                        are located to the left of the entrance. The Dining Room
                        contains dramatic chandeliers and a gold leaf ceiling. The
                        restaurant offers American cuisine and is open for breakfast,
                        lunch, and dinner. The Driftwood Lounge is improved with retro
                        1960’s “Rat Pack” décor and offers cocktails and other
                        beverages.




Meeting &
Conference Facilities   Hotel deLuxe contained 1,782 square feet of meeting space.
                        The Screening Room features ornate chandeliers, and high gold
                        leaf ceilings. The Green Room contains one wall of windows
                        that provides abundant natural lighting and the Editing Room is
                        for boardroom meetings. The meeting space is configured as
                        follows:




                                                                                      27
                 Square Feet   Reception   Banquet Round   Theater   U-Shaped   Conference   Classroom

Screening Room      1,163        120            80           100        40          50          60
Green Room           336          40            30            30        24          24          24
Editing Room         283          25            20            24        -           16          12
Total               1,782



Fitness Center                   The fully equipped fitness center offers a variety of equipment
                                 such as treadmills, bicycles, Stairmaster, and a complete set of
                                 free weights.


Executive
Business Center                  The Executive Business center offers desktop computers, each
                                 with high-speed Internet access, as well a fax/copy/scanner
                                 machine.


Site                             Approximately .69 acres, owned fee simple.


Age                              The property was originally built in 1912 and was fully renovated
                                 in 2006. The parking structure was completed in 1999.


Parking                          Parking is provided by an adjacent 4-story, 200-car garage and a
                                 separate 35-car surface lot across the street to the east. The
                                 surface lot is leased by the hotel, and is typically used by guests
                                 of the restaurant and lounge.




                                                                                                     28
CONSTRUCTION SPECIFICATIONS


Foundation          Concrete.


Structural Frame    Concrete.


Exterior Walls      Concrete, brick and glazing.


Roof                Flat deck roof with waterproof membrane cover.


HVAC                Two pipe heating and cooling system.


Elevators           A total of three elevators including two passenger elevators and
                    one service elevator. An elevator is also located in the parking
                    garage.


Walls               Typically vinyl wall covering with areas of painted drywall.


Ceilings            Painted concrete and painted drywall.


Lighting            Fluorescent and incandescent.


Fire/Life/Safety
Systems             Hardwired smoke detectors in the guestrooms and common
                    areas. Emergency lighting is located throughout the property.




                                                                                    29
MARKET INFORMATION


Hotel deLuxe competes with the following properties:

                                Competitive Set Overview

                                                        Total             Meeting
        Number                     Hotel                         Suites
                                                       Rooms              Space

            1      The Paramount Portland                  154     2      1,400
                   808 SW Taylor St.

            2      The Westin Portland                     205     17     2,060
                   750 SW Alder St.

            3      Hotel Vintage Plaza                     107     21     4,500
                   422 SW Broadway

            4      Hotel Monaco                            221    135     4,500
                   506 SW Washington St.

            5      The Governor Hotel                      100     24     22,000
                   611 SW 10th Ave.

            6      Heathman Hotel                          150     33     3,000
                   1001 SW Broadway

         TOTAL                                             937
                   Hotel deLuxe                            130     34        1,782


The following table shows the average daily rate and occupancy for the competitive set and
for Hotel deLuxe for the trailing twelve months ended February 2007:


                              Trailing Twelve Months February 2007
                                              Average Daily
                                                                      R
                                                                      a
                                                                  Occupancy
                                                                      t
                                                                      e

                    Competitive Set (1)          $146.93             77.6%

                    Hotel deLuxe                 $145.37             54.5%

                    Source: Smith Travel Research

                    (1) The Competitive Set includes the Hotel deLuxe.




                                                                                       30
31
PROPERTY DESCRIPTION


Address            Hotel Max
                   620 Stewart Street
                   Seattle, Washington


Location           Hotel Max is located on the corner of 7 th Avenue and Stewart Street in the
                   heart of downtown Seattle, Washington. The hotel is easily accessible from
                   Interstate-5, and is conveniently located two blocks from the 120,000 square-
                   foot Westlake Mall, and six blocks from the famous Pike Place Market.

                   7th Avenue is one of the major thoroughfares running through downtown
                   Seattle, consisting of a three-lane roadway that proceeds southwest through
                   downtown Seattle. The Interstate-5 northbound on-ramp is located blocks
                   away, to the northeast on Howell Street. Interstate-5 runs the length of the
                   western United States, originating at the state of Washington’s border with
                   Canada and terminating at California’s border with Mexico near San Diego.
                   Locally, Interstate-5 connects Seattle with Tacoma to the south and Everett
                   to the north. Interstate-5 also connects with Interstate-90, an east-west
                   highway linking Seattle with Bellevue on the eastside. The Seattle-Tacoma
                   (Sea-Tac) International Airport is located just off Interstate-5, 12 miles south
                   of the hotel.

                   The hotel is located adjacent to the Shopping district of Seattle, and is only
                   blocks from the Washington State Convention and Trade Center, a state-of-
                   the-art, 310,700 square-foot convention facility which can accommodate
                   meetings of up to 10,000 delegates including two independent 100,000
                   square-foot exhibition halls. Another demand generator for the hotel is the
                   Financial District, which encompasses the southern portion of the city and
                   contains the bulk of the business activity in the city. Hotel Max is within
                   walking distance of 8.5 million square feet of office space, as well as public
                   transportation including monorail and METRO service in the downtown area.

                   The Hotel is located within minutes of:

                          Paramount Theater                    Ferry Terminal
                          Nordstrom                            Bell Street Pier
                          Pacific Place Shopping Center        Capital Hill
                          Westlake Center Mall                 Safeco Park
                          NikeTown                             Qwest Field
                          The Pike Place Market                Key Arena
                          Seattle Aquarium                     University of Washington Husky
                          Space Needle at Seattle Center        Stadium
                          Pioneer Square




                                                                                                32
Description             Hotel Max is a 10-story, 163-room, full-service boutique hotel which includes
                        a fully equipped fitness center, an Executive Business center, and the highly
                        successful Red Fin restaurant. Originally built in 1926, Hotel Max was
                        officially reopened in October 2005, upon completion of a $9 million
                        renovation ($55,215 per room).

                        The main entrance along Stewart Street opens to a dramatically edgy
                        designed hotel lobby featuring 17’ ceilings, cathedral windows, and a diverse
                        collection of modern artwork. The hotel’s corridors are gallery like and
                        contain monochromatic, Masland carpet. Hotel Max is essentially an art
                        gallery for local artists. Each guestroom door contains larger than life
                        photographs based on a theme unique to that floor with over 300 pieces of
                        art from 39 emerging Seattle artists.

                        The lobby’s rectangular sandstone floors are accented by dark zebra wood
                        paneled walls and a red lacquer registration desk. The center of the lobby
                        contains stylish area rugs that accent the modern, colorful, and comfortable
                        furniture. The sumptuous furniture includes a large black table where an
                        oversized vase is filled with fresh cut flowers, a chaise lounge, and designer
                        chairs. The large fireplace to the right of the lobby creates a warm
                        environment among the minimalist surroundings. The lobby is well lit with
                        roof mounted, chrome wire halogen lights as well as natural light from large
                        windows facing Stewart Street.

                        A large original painting is located to the side of the elevators which are to
                        the left of the registration desk. To the right of the registration desk is the
                        Sidebar room which contains a contemporary executive roundtable with
                        seating for up to 15 guests, a dropdown screen, electrical connections for
                        laptop computers, and contemporary artwork. Down the hallway to the left is
                        the Executive Business center which contains two internet accessible
                        computers, fax machine, and copy machine.

                        To the left of the lobby is the Red Fin restaurant which offers Asian Fusion
                        cuisine. Parking is provided in the hotel’s 5-story parking structure.

                        Since reopening in October 2005, Hotel Max has been recognized in
                        numerous publications including Sunset, Blender, Boutique Design, Seattle
                        Magazine, Maxim, Condé Nast, Nylon, and has been featured on MTV.


Renovation/Reposition
Summary
                        The renovation to Hotel Max consisted of replacing and upgrading all
                        guestroom furnishings and finishes, new guest bathroom plumbing, tile and
                        accessories, new air conditioning and heating units, a complete
                        reconfiguration of the hotel’s public areas and meeting room, including new
                        furnishings. The renovation included the addition of a 24-hour fully equipped
                        fitness center and a business center. The renovation totaled over $9 million
                        ($55,215 per room) and was completed in October 2005.




                                                                                                    33
                  The following chart summarizes the cost of the renovation:

                                          Renovation Cost
                       Construction                           $5,569,332
                       FF&E                                     937,809
                       OS&E                                     616,587
                       Project Development                      729,680
                       Restaurant Buyout                        250,000
                       Art Installation                         190,268
                       PMS System                               136,271
                       Restaurant TI’s                          228,942
                       Communications Upgrade                   125,357
                       Marketing/PR                             175,682
                       Signage/Permits/Fees                      63,627

                       Total                                  $9,023,555


Hotel Amenities   Hotel Max offers the following amenities:

                         Highly rated dining at the Red Fin restaurant.
                         24-hour valet parking.
                         24-hour room service.
                         24-hour fully equipped fitness center.
                         Nightly turndown service.
                         Executive Business center.
                         High-speed wireless Internet access.
                         24-hour bell staff.
                         Complimentary coffee/tea/newspapers in lobby.
                         Concierge service.
                         “You Got It” Service Button.


Guestrooms        Hotel Max offers 163 rooms, including 3 suites. The guestrooms contain
                  Maharam upholstery and Durkan carpets and a 32” flat panel television. The
                  guestroom furnishings reflect a sleek contemporary look and include
                  mahogany dressers, a modern desk chair and comfortable stool, an
                  executive desk with contemporary lamp, floor lamps and 2 nightstand lamps.
                  The nightstands are a unique mix of frosted glass and either light or dark
                  colored wood. The dressers also include an honor bar. Most of the rooms
                  offer excellent views of Seattle.




                                                                                         34
                     The following is a breakdown of guestrooms:

                          Type                         Quantity
                          Single                          10
                          Double                          28
                          Queen                           49
                          King                            73
                          Parlor Suites                    3
                          Total                          163

                     The beds in the guestrooms feature a comfortable pillow top mattress with a
                     red and white duvet and pillows. The duvet and pillows match the white
                     lampshades. All beds contain either a stainless steel or wooden headboard.
                     A unique amenity is the “Pillow Menu”, which allows each guest to order
                     pillows ranging from “soft” to “extra firm.” Each room contains a safe, and a
                     coffee maker with Sardegna coffee and Tazo teas. In addition, each room
                     contains an original piece of artwork from a local artist and a “You Got It”
                     service button which allows guests to request any type of amenities.

                     The bathrooms are finished with marble floors with red and white tile walls.
                     The bathrooms feature modern stainless steel sinks and towel racks and a
                     glass valet. Most of the bathrooms have white cloth shower curtains and all
                     bathrooms have Speakman shower heads.


Guestroom
Amenities            Hotel Max offers the following guestroom amenities:

                            High-speed wireless Internet access.
                            Dual line cordless telephone with voicemail.
                            Remote controlled 32” flat panel color television.
                            On-command movies and video games.
                            Radio/CD/Alarm Clock.
                            Mini bar.
                            Iron and ironing board.
                            Coffee maker.
                            Bathrobes.
                            Electric safe.
                            Pillow Menu.
                            “Make It So” Service Button.


Suites               The hotel has three suites. The suites offer similar amenities and furnishings
                     included in standard guestrooms with the addition of a living room area
                     complete with a sofa, and a 42’’ flat panel television.


Red Fin Restaurant   Red Fin restaurant offers innovative Asian fusion in a stylish and inviting
                     atmosphere with a menu ranging from sushi to steak. The restaurant
                     contains a bar that offers a broad variety of Japanese sakes and imaginative




                                                                                                35
                     cocktails. The restaurant is open for breakfast, lunch, and dinner, and offers
                     24-hour room service.

                     The Red Fin lease commenced in September 2005 for a term of 10-years.
                     Total leased space is 5,076 square feet. The current rent is the greater of
                     7% of gross sales or $7,000 per month which will increase to $8,000 per
                     month in September 2007. Beginning in September 2012, rental obligations
                     will increase by 3% per year. Red Fin has two options to renew for five years
                     each. Red Fin is responsible for their pro-rata share of insurance, utilities,
                     and property taxes.


Meeting &
Banquet Facilities   The Sidebar Room is a contemporary executive boardroom with seating for
                     up to 15 guests, a dropdown AV screen, electrical outlets for laptop
                     computers, and contemporary artwork.


Fitness Center       The fitness center offers two treadmills, two bicycles, Stairmaster, a complete
                     set of free weights, and two elliptical machines.


Executive
Business Center      The Executive Business center contains two internet accessible computers, a
                     fax machine, and a copy machine.


Site                 Approximately .31 acres, owned fee simple.


Age                  The hotel was originally built in 1926 and was completely renovated in 2005.


Parking              Approximately 114 spaces located in an adjacent 5-story garage, of which 2
                     floors are leased.




                                                                                                 36
Financial Performance
Comparison              The following charts display monthly ADR and RevPAR between 2004 and
                        2006.

                        The property was under renovation, converting from the Vance Hotel to the
                        Hotel Max, between February and October 2005. 2006 total year ADR is
                        projected to be up approximately 46% since 2004:




                        2006 total year RevPAR is projected to be up approximately 55% since 2004.




                                                                                               37
CONSTRUCTION SPECIFICATIONS


Construction        Concrete.


Exterior Finishes   Finishes include terra cotta and brick façade.


Flooring            The hotel lobby and entrance consist of sandstone.


HVAC                Central HVAC in public areas. Individual units in guestrooms.


Lighting            Wall sconces in the corridors.


Elevators           Two Otis passenger elevators in the hotel accessing eleven levels, one
                    freight elevator in the garage for automobile parking and one hydro elevator
                    for freight access to basement from the alley.


Fire/Life/Safety
Systems             New sprinkler piping concealed above the new sloped sidewall ceilings in
                    corridors with semi-recessed sprinkler heads for corridor protection and one
                    sprinkler head inside each room. Sectional control valves with test and drain
                    facilities for each floor. Backflow, double check valve in basement.




                                                                                               38
MARKET INFORMATION


Hotel Max currently competes with the following properties:

                                        Competitive Set Overview

                                                                      Total                Meeting
           Number                       Hotel                                   Suites
                                                                     Rooms                  Space


              1       Mayflower Park Hotel                            171         19         4,576
                      405 Olive Way

              2       Roosevelt Hotel                                 151          2         2,366
                      1531 7th Avenue

              3       Hotel Vintage Park                              126          0          700
                      1100 5th Avenue

              4       Paramount Hotel                                 146          2         1,335
                      724 Pine Street

              5       Hotel Andra                                     119         90         3,450
                      2000 4th Avenue

           TOTAL                                                      713
                      Hotel Max                                       163          3         1,200


The following table shows the average daily rate and occupancy for the competitive set and for Hotel Max
for the trailing twelve months ending February 2007:


                                     Trailing Twelve Months February 2007

                                                     Average Daily Rate           Occupancy

                    Competitive Set*                       $157.43                  74.0%

                    Hotel Max**                            $150.77                  67.4%


                    Source: Smith Travel Research

                   * Competitive set includes Hotel Max.
                    ** Hotel Max reopened in October 2005 after converting from the Vance Hotel.




                                                                                                      39
40
PROPERTY DESCRIPTION


Address            Hotel Preston
                   733 Briley Parkway
                   Nashville, Tennessee


Location           Located two miles from the Nashville International Airport terminal, Hotel
                   Preston provides convenient access to Nashville’s shopping, sports,
                   businesses, restaurants, art galleries and theatre. Hotel Preston is located
                   five miles from Opryland and the new Opry Mills Retail and Entertainment
                   Complex and only seven miles from downtown Nashville. Convenient
                   access to the hotel is provided via Briley Parkway which is a major north-
                   south arterial. Hotel Preston is highly visible from Interstate-40 (140,000 cars
                   per day), a major east-west highway in the region that provides direct access
                   to the Nashville International Airport. Upon completion in June 2006 of
                   nearby road construction, there will be convenient access to the hotel from
                   Interstate-40 and other freeways, including Interstates-440, 24, US-41, 70
                   and 31. The hotel provides a complimentary shuttle service to and from the
                   Nashville International Airport.

                   The immediate surrounding area contains restaurants and office buildings
                   including the Century City Plaza and the BNA Corporate center. The BNA
                   Corporate Center is located ¼ mile south of Hotel Preston and contains over
                   220,000 square feet of Class-A office space including tenants such as
                   Bridgestone, American General Financial Services, and Yasuda Fire and
                   Marine Insurance Company. Century City Plaza is located off of Elm Hill
                   Pike, 2 miles northeast of the Hotel. Overall, the airport area office market
                   contains approximately 5 million square feet of office space.

                   In addition to the airport and the office market, demand generators include:

                          Belle Meade Plantation           Dudley Field
                          Country Music Hall of Fame       Nashville Superspeedway
                           and Museum                       Starwood Amphitheatre
                          Grand Ole Opry House             The Coliseum
                          Music Valley Wax Museum          Vanderbilt University
                          Parthenon                        Tennessee Aquarium and IMAX
                          Opry Hills Mall                   Theater
                          Ryman Auditorium                 Rock City on Lookout Mountain
                          Tennessee State Museum           Ruby Falls
                          Allen Arena                      Incline Railway
                          Curb Event Center                Southern Belle Riverboat




                                                                                                  41
Description             Hotel Preston is an 11-story, 200-room, full service hotel offering a restaurant
                        and bar/lounge, approximately 8,900 square feet of meeting space, a fully
                        equipped fitness center and outdoor pool, a well appointed lobby lounge
                        area, and on-site surface parking for 249 cars.

                        The hotel exterior is tan colored while the Porte Cochère area is artistically
                        painted with bright blue, red, and orange accents. The Porte Cochère
                        contains modern furniture which will be extended to the lobby upon further
                        renovation.

                        The restaurant and lounge are located adjacent to the lobby, which is
                        improved with marble flooring, a unique art collection from Nashville artists,
                        recessed lighting and a comfortable lobby lounge area that contains a well-
                        appointed seating area.

                        Two passenger elevators are located to the left of the restaurant and lounge.
                        The fitness area, outdoor pool, meeting rooms, and multi-function room are
                        located one floor below the lobby, accessible by elevator or by a staircase in
                        the lobby.

                        Hotel Preston offers an outdoor pool that is open during the summer months.
                        Once a week, the hotel promotes a poolside “movie day.” In addition, the
                        area opens to a multi-purpose conference room which hosts a weekly hotel-
                        sponsored luau.

                        The site has excess land where future development may occur that will not
                        be part of the collateral. The first parcel is north of the hotel, behind the
                        parking lot. Development on this pad is planned to be a two-story, 25,000
                        square-foot office building leased to Kaplan Educational Services, who is
                        wholly owned by The Washington Post (credit rating of A+ from S&P and A-1
                        from Moody’s). The site will have access via an easement through the hotel
                        parking lot. Along the northeast border of the hotel fronting Interstate-40
                        (exposure to over 140,000 cars daily), two restaurants may be developed.
                        The hotel will be further improved with a 30’ sign at the entrance when the
                        road construction is completed.

                        Hotel Preston offers a unique “You Want It, You Got It” service that is
                        consistent with other owned and managed Aspen Hotel Group properties.


Renovation/Reposition
Summary
                        The Aspen Hotel Group assumed control of the hotel in October 2003
                        subsequent to its conversion from a Clarion to a Radisson in 2002. The
                        Radisson PIP totaled $2 million ($10,000 per room) that included extensive
                        improvements to the lobby, guestrooms, restaurant, and meeting/banquet
                        facilities. Since being converted to the Hotel Preston in February 2004, both
                        occupancy and ADR have increased dramatically, which is attributable to
                        Aspen Hotel Group’s new management who immediately implemented
                        expense controls, increased the sales staff, and created a more inviting
                        environment in the hotel. It is also attributable to the conversion from a
                        Radisson to one of the only independently branded hotels in Nashville. An
                        additional $3.5 million ($17,500 per room) renovation is planned for 2007.




                                                                                                     42
                  The following chart summarizes the cost of the renovation:

                                       Renovation Budget

                       Construction                               $1,531,326
                       Furniture, Fixtures & Equipment              1,219,976
                       Restaurant & Bar Allowance                     350,000
                       Project Development*                           100,000
                       Artwork and Signage                            200,725
                       Marketing and PMS                               31,683
                       Permits/Fees/Comm Upgrades                      10,925
                       Total                                      $3,444,634
                          Includes design fees, internal project management and
                       account costs, and legal costs.



Hotel Amenities   Hotel Preston offers the following amenities:

                         Highly rated dining at the Parkside grill.
                         24-hour room service.
                         24-hour fully equipped fitness center.
                         High-speed wireless Internet access.
                         Daily complimentary newspaper.
                         Outdoor pool.
                         Complimentary parking and shuttle.
                         Pillow Menu.
                         Same day dry cleaning/laundry services.


Guestrooms        Hotel Preston features 200 guestrooms including 4 parlor suites. The
                  guestrooms are furnished in an elegant contemporary style with earth tone
                  colored walls and artwork. Each room has a large work desk, multiple lamps,
                  an ergonomic desk chair, and a plush lounge chair. Each guestroom
                  includes triple sheeted bedding, a nightstand and lamp on each side of the
                  bed, a radio/CD/alarm clock, two telephones with voicemail, and high-speed
                  wireless Internet access. All rooms have a remote controlled 25” color
                  television offering on-demand movies and video games. All guestrooms
                  contain traditional wooden dressers.




                                                                                          43
                        The following is a breakdown of guestrooms:

                             Type                           Quantity
                             Deluxe Rooms
                                 Double                        125
                                 King                          71
                             Parlor Suites                      4
                             Total                             200

                        The bathrooms, which will be renovated, have tile floors, marble vanities, a
                        curved shower curtain, and a wall to wall mirror. The spacious bathrooms
                        include a hair-dryer, bathrobe, and luxurious toiletries.


Guestroom
Amenities               Hotel Preston offers the following guestroom amenities:

                               High-speed wireless Internet access.
                               Two telephones with voicemail.
                               Remote controlled 25” color television.
                               On-command movies and video games.
                               Radio/CD/Alarm Clock.
                               Iron and ironing board.
                               Coffee maker.
                               Bathrobes.
                               Pillow Menu.
                               “Make It So” Service Button.


Suites                  Hotel Preston contains four fully appointed parlor suites, accessible by
                        double doors. Upon entering the first set of doors, guests may choose to
                        enter either the living room area or the bedroom area. The bedroom is
                        similarly appointed as a deluxe guestroom. The living room area contains a
                        60’’ flat screen television, luxurious couches and chairs. Each parlor suite
                        contains a refrigerator, microwave and desk area.


Food & Beverage
Facilities              The Parkside Grill offers American cuisine for breakfast and dinner, featuring
                        a full menu and buffet. The restaurant overlooks the pool and is open from
                        6:30 a.m. - 10:30 a.m. and 5:00 p.m. – 10:00 p.m. daily. Room service is
                        available 24 hours per day. The hotel bar/lounge is open from 5:00 p.m. until
                        approximately 1:00 a.m. daily.          The lounge offers food, spirits, live
                        entertainment from local bands, darts, and a pool table. Each night a
                        different local musician is featured in the lounge.


Meeting &
Conference Facilities   Hotel Preston offers approximately 8,900 square feet of meeting space
                        including four conference rooms and a 4,400 square-foot ballroom. All of the




                                                                                                   44
                                        meeting rooms have high-speed Internet access as well as state-of-the-art
                                        audio/visual capabilities. Also, the poolside area can accommodate up to
                                        200 people for outdoor functions. The meeting space is configured as
                                        follows:

                                   Square Feet        Banquet      Theater    Classroom   Conference   Reception    U-Shape

       Grand Ballroom               4,400             350         500          200          -          700          150
             Lynchburg                     1,100            80         100          50         40            150         40
             Cumberland                    1,100            80         100          50         40            150         40
             Hermitage                     1,100            80         100          50         40            150         40
             Donelson                      1,100            80         100          50         40            150         40
       Grand Ballroom Foyer         2,000                     -          -       -          -             -          -
       Brentwood                      575             40          60           30         20            55           25
       Franklin                       575             40          60           30         20            55           25
       Lincoya                      1,050             80          100          50         30           150           30
       Madison                        308               -           -            -          -             -          -
       TOTAL                        8,908
       Garden Patio: Outdoor Function for up to 200 People



Fitness Center                          The fitness center offers a variety of equipment such as treadmills, an
                                        exercise bicycle and free weights.


Site                                    Approximately 13.31 acres, owned fee simple. The hotel site will be
                                        approximately 5.7 acres excluding the development parcels.


Age                                     The property was built in 1974, renovated in 2002, and will undergo further
                                        improvements in 2006.


Parking                                 249 surface parking spaces. The hotel site will contain 197 parking spaces
                                        excluding the development parcels.




                                                                                                                               45
Financial Performance
Comparison              The following charts display monthly ADR and RevPAR between 2004 and
                        2006:




                                                                                         46
CONSTRUCTION SPECIFICATIONS


Foundation          Reinforced concrete.


Exterior Walls      Brick, terra cotta, steel frame.


Roof                Flat with built-up composition. Silicone polyurethane foam roofing.


Flooring            Carpet and marble tile in guest and public areas.


Interior Finish     Painted drywall, mahogany panels, vinyl wall covering in the common areas;
                    painted gypsum in the back of house; painted lathe plaster and gypsum in
                    the guestrooms.


HVAC                15 ton for lobby area, 10 ton for kitchen, 5 ton on all other. Roof vents 5 ton
                    on lower level split systems. PTAC window systems 2 ½ ton on two meeting
                    areas.


Bathrooms           Tile floor, shower and tub surround.


Lighting            Recessed fluorescent lighting.


Elevators           Three Lochnivar elevators one used as a service elevator.


Fire/Life/Safety
Systems             The building is fully sprinklered with magnetic fire doors in public areas.
                    Hallways have fire extinguishers. Wired smoke detectors in all rooms.




                                                                                                  47
MARKET INFORMATION


Hotel Preston currently competes with the following properties:

                                       Competitive Set Overview

                                                                   Total                Meeting
           Number                        Hotel                               Suites
                                                                  Rooms                 Space

              1        Holiday Inn Select                             382      5         5,000
                       2200 Elm Hill Pike

              2        Marriott Nashville                             398      6        24,000
                       600 Marriott Drive

              3        Embassy Suites                                 296     296       14,000
                       10 Century Boulevard

              4        Radisson Nashville International Airport       303      0        14,500
                       1112 Airport Center

              5        Hilton Garden Inn                              110      0         1,269
                       412 Royal Parkway

           TOTAL                                                  1,489
                       Hotel Preston                                  200      4         8,900


The following table shows the average daily rate and occupancy for the competitive set and for Hotel
Preston for the trailing twelve months ended February 2007:


                                    Trailing Twelve Months February 2007

                                                 Average Daily Rate         Occupancy

                    Competitive Set*                   $90.99                69.6%

                    Hotel Preston                      $79.86                63.6%
                    Source: Smith Travel Research

                    * Competitive set includes Hotel Preston.




                                                                                                  48
49
The Aspen Hotel Group’s principals are Gordon Sondland, Steve Rosenberg and Joseph Angel.


Gordon Sondland

Mr. Sondland has been in the real estate investment, development and management business for over 20
years, and has been responsible for the acquisition or disposition of over $250 million of investment
property. Mr. Sondland, through affiliates, has acquired, developed, or renovated and repositioned over
19 full service hotels throughout the United States.

In addition to serving as CEO of Aspen Hotel Management Group LLC, Mr. Sondland also serves as a
director and managing member of the Aspen Companies, a diversified private equity firm established in
1989. Aspen has participated as a principal in transactions valued at over $1 billion since its inception.
Mr. Sondland serves on the boards of U.S. Bank (Washington), Westin Hotels Marketing Corp., The
Portland Art Museum and the Governors Economic Advisory Board (Oregon).

Mr. Sondland has extensive experience renovating, re-positioning, and managing boutique hotel
properties.


Steve Rosenberg

Steve Rosenberg has been a partner with Aspen Group for the past 17 years. Over this time his
responsibilities have included development, brokerage, and finance and acquisitions for the company.
Mr. Rosenberg has been directly responsible for the identification, structure, and funding of over 60
separate transactions totaling over $180,000,000 as well as brokerage, development and lease
transactions totaling over $100,000,000. He is the developer of 7 major residential and commercial
complexes in the Pearl district.

Joseph Angel

Joseph Angel opened his first Burger King Restaurant in Missouri when he was 25 years of age,
becoming the youngest franchisee for Burger King Corporation at that time. After selling that store two
years later, Mr. Angel brought the Burger King concept to the Northwest in 1972. His relationship with the
Burger King Corporation covered almost 30 years and he opened 35 stores in the Portland/Vancouver
area. In 1996, Mr. Angel sold his Burger King franchise interest and retired from the business. In 1997,
Joseph Angel and Gordon Sondland formed a partnership and subsequent alliance with Westin Hotels &
Resorts to develop Westin Hotels.

Mr. Angel is currently a member of the Portland Art Museum; Arlington Club; Multnomah Athletic Club;
World Presidents’ Organization; Association for Portland Progress; and is a board member of Norm
Thompson Outfitters, Inc. and College Housing Northwest, Inc. His past civic involvement includes
serving on the Portland Planning Commission for 7 years during the formation of the Central City Plan,
past president of the Oregon Restaurant Association, chapter chairman for the Oregon Young Presidents’
Organization, and numerous other local and state activities.




                                                                                                       50
AREA INFORMATION


Portland, Oregon

Portland is located in the county of Multnomah, in the state of Oregon at the confluence of the Columbia
and Willamette Rivers. The Portland Area is naturally divided into eastern and western portions by the
Willamette River. To the north, the area is bounded by the Columbia River, which has enabled shipping
and logging industries to thrive. The Columbia River empties into the Pacific Ocean 80 miles west of
Portland. The Portland area, readily accessible by both land and sea, acts as a major transportation and
trade hub for the Pacific Northwest.

Portland is located in a region known for its high level of precipitation. Although this reputation is well
founded in winter months, summer months are relatively dry. Additionally, year-round temperatures are
mild, with an average low of 34 degrees Fahrenheit in the winter and an average high of 79 degrees
Fahrenheit in the summer. The beauty and natural attractions of the Pacific Northwest, including Mount
Hood, make the greater Portland area aesthetically appealing.

Portland’s economy has experienced positive trends since the mid-1980’s, with the strongest growth
occurring during the early to mid 1990’s. The exodus of Californians to the less populated and more
affordable Portland area, coupled with Pacific Rim investment in the Pacific Northwest, stimulated the
economy of the Portland area. While the area has historically been dependent on the cyclical lumber
industry, the area’s economy has branched into the high-technology sector; Portland includes Oregon’s
“Silicon Forest,” home to high-tech companies like Tektronix, Inc., Intel Corporation, LSI Logic, and
Sequent Computers. In addition, the headquarters of several large sports-oriented companies like Nike,
Adidas and Jantzen are located in the Portland area. As a result, Portland now has one of the most
diversified economies of any major city on the West Coast.

Population

With its metropolitan area covering approximately 4,416 square miles in two states, Oregon and
Washington, the region is defined generally as the Portland-Vancouver Metropolitan Statistical Area
(MSA). Located on the Pacific Rim and bridging the states of Oregon and Washington, the Portland-
Vancouver Metropolitan Statistical Area is uniquely positioned as the strategic center of trade and
commerce on the U.S. West Coast. The regional market addition of Skamania County to the Portland
MSA brings a total of seven counties to the mix. A vibrant and attractive business location with a variety
of commercial and industrial sites, this area is served by an efficient multi-modal transportation system.
Land and construction costs are among the lowest on the West Coast. Utility rates are lower than other
West Coast locations, and the water supply is known as one of the purest and most plentiful in the nation.
The population of the Portland-Vancouver MSA stands at approximately two million residents

The Portland metropolitan region’s workforce has been augmented by population growth of more than
120,000 since the year 2000, a testament to the area’s quality of life. Historically, the metropolitan
population has grown at nearly twice the national average, with in-migration being the main factor.
Additionally, it is estimated that Portland’s college-educated, 25 to 34-year-old population is growing at
five times the national rate. The regional population has grown 35% since 1990 (526,909 people). With
population growth projected to reach more than 2.2 million by 2010, a 16% increase from 2000.




                                                                                                        51
Economy

Portland enjoys a diversified economy. Major manufactured products include paper, transportation
equipment, metal products, sportswear, and electronic components and equipment. Major corporations
headquartered in the metropolitan region include Nike, Louisiana-Pacific, a wood-products manufacturer,
and Tektronix, a maker of scientific measuring devices and color printers. High-technology manufacturing
is a growing component of the city’s economy, with such firms as Intel, a leader in microprocessor
production. Portland is the wholesaling, financial, and medical center for much of Oregon and parts of
Idaho and Washington. Downtown Portland contained 4,043 businesses, organizations and government
entities between the Interstate-405 and Interstate-5 loop as of 2004.

Although Portland is inland from the Pacific Ocean, the 90 miles of the Columbia River between the city
and the sea is fully open to navigation. Oceangoing shipping helped the city develop, and it remains a
major transportation center. The Port of Portland, one of the busiest in the western United States,
manages five marine terminals and a ship repair yard in addition to Portland International Airport. Two
interstate highways, major railroads, and barges on the Columbia-Snake river system serve the city.
Chief exports are wood products and farm produce. A prominent import is automobiles from Japan and
South Korea.

Employment

Portland’s total non-farm wage and salary employment has grown 17% between 1995 and 2005. This is
an increase of 148,700 employees, bringing the total to 991,400 as of December 2005. The Portland
metro area unemployment rate for December 2005 was 5.1%.

The following chart details the Portland Area’s employment by sector:


                                              Employment by Sector

                                                             Other
                                                              4%
                                                                     Construction
                                                                         6%
                                  Government
                                     14%
                                                                                    Manufacturing
                                                                                        13%


                           Leisure &
                           Hospitality
                              9%

                                                                                          Trade,
                                                                                     Transportation &
                                                                                         Utilities
                                                                                           20%
                             Educational &
                            Health Services
                                  12%
                                                                                    Information
                                                                                        2%
                                                Professional &       Financial
                                              Business Services         7%
                                                     13%




                                                                                                        52
The major employers in Portland represent a cross section of hotel demand potential. Some are national
in scope, while others operate on a more local basis; some are engaged in technology and
manufacturing, and others are active in the healthcare sector. According to the Portland Metropolitan
Chamber of Commerce, the Portland-Vancouver MSA is home to over 2,000 business headquarters
including Nike Inc., Tektronix Inc., and Weyerhaeuser Company.

The following chart depicts the major private-sector employers in the Portland region:


                                  M AJOR PRIVATE SECTOR EMPLOYERS
                    Intel Corp.                                            15,500
                    Providence Health System                               11,000
                    Fred Meyer, Inc.                                        9,967
                    Legacy Health System                                    7,907
                    Kaiser Permanente                                       7,433
                    Nike, Inc.                                              5,742
                    Safeway, Inc.                                           5,282
                    Hewlett-Packard Co.                                     4,300
                    Wells Fargo Bank                                        4,155
                    Freightliner Corp.                                      4,000
                    Shari’s Restaurants                                     3,725
                    Albertsons, Inc.                                        3,450
                    Southwest Washington Medical Center                     3,177
                    Regal Cinema                                            3,100
                    McDonald’s Corp.                                        3,000
                    United Parcel Service                                   2,800
                    Portland General Electric                               2,687
                    Volt Services Group                                     2,500
                    Coherent Inc.                                           2,190
                    Precision Castparts Corp.                               2,110
                    Standard Insurance Company                              2,066
                    Tektronix, Inc.                                         2,048
                    PacifiCorp                                               2,020
                    Home Depot                                              2,000
                    Adventist Medical Center                                1,907
                    Hollywood Entertainment                                 1,869
                    Regence BlueCross/BlueShield of Oregon                  1,861
                    TriQuint Semiconductor                                  1,500
                    Louisiana-Pacific Corp.                                  1,160




                                                                                                   53
Convention Activity

The Oregon Convention Center opened in September 1990 and is located across the Willamette River
from the Central Business District. At nearly 1 million square feet, the Oregon Convention Center is now
the largest meeting facility in the Pacific Northwest. Double its original size, the center offers 255,000 sq.
ft. of contiguous exhibit space, 50 meeting rooms, two grand ballrooms, full service catering and dining,
and an 800-space parking garage. In addition to the Oregon Convention Center, the Portland
Metropolitan Exposition Center is also available for large events. Located north of downtown Portland
along the banks of the Columbia River off of Interstate-5, the Exposition Center features more than
330,000 square feet of space. Convenient access to the convention center is via the MAX light-rail
system, which connects downtown with the convention center free of charge. Furthermore, there is a
direct connection to the convention center from the airport.

A $105 million expansion of the Convention Center was completed in April 2003. The expansion nearly
doubled the previous square footage to include an additional 100,000 square feet of exhibit space, a
34,300 square-foot ballroom, another 25,500 square-foot ballroom, and 27,000 square feet of additional
meeting rooms. This increased capacity has allowed the Oregon Convention Center to increase events
and total attendance. In 2005, the OCC hosted 572 events which accounted for a total attendance of
over 709,870 people creating a total economic impact to the area of more than $420 million and
supporting approximately 6,200 jobs.

Airport Traffic

Portland International Airport (PDX) is served by 20 different scheduled domestic and international
passenger airlines, with an average of more than 15 non-stop and direct flights each day to almost 100
cities in the United States, Canada, Germany and Mexico. Daily nonstop service to Tokyo began in June
2004, and daily nonstop service to New York began in May 2005. The region is also well served by 18
all-air cargo carriers including Air China Cargo and Korean Air, both with nonstop services. Along with
the general aviation business terminal at PDX, the area is served by three publicly operated general
aviation airports located in Mulino, Hillsboro and Troutdale.

Total passengers at PDX increased by 6.5% from 2004 to 2005. The following table shows historical air
passenger trends for Portland International Airport beginning in 1999:


                  Portland International Airport (PDX) – Historical Passenger Statistics

                                      Portland International Airport
                                     Year                Total Passengers
                                    1999                    13,721,684
                                    2000                    13,790,115
                                    2001                    12,703,606
                                    2002                    12,241,975
                                    2003                    12,395,938
                                    2004                    13,038,057
                                    2005                    13,879,701




                                                                                                           54
PDX has experienced sustained growth since 1990, with the exception of three years. Much of the
growth can be attributed to the growing number of discount carriers, such as Southwest (17.3% of market
share), Delta (6.7% of market share), Alaska/Horizon (34.6% of market share), and United (14.11% of
market share).

As a result of the soaring growth in passenger counts and traffic loads at the airport during the 1990s,
Portland International Airport completed major expansions in 1998 and 2001. Phase one included major
pavement construction around Concourse C and the addition of 10 gates to the west end of Concourse C.
Phase two entailed extending the terminal more than 200 feet to the south, replacing existing gates with a
modern concourse, connecting Concourses B and C with a lobby, adding a light-rail station, and making
aircraft pavement and taxiway improvements. Access to downtown has been made very convenient and
affordable, as the 38-minute ride on the light rail’s Red Line.

Consistent with Portland’s initiative to provide free wireless internet around the city, Portland International
Airport provides access in 70 percent of the airport terminal’s main level, which includes most gates, the
Oregon Market and food court, and lobby areas near the north and south security checkpoints. Airport
travelers can get real-time flight arrival and departure updates from the Portland International Airport Web
site and browse information about the 30-plus retail and restaurant offerings in the airport in addition to
checking e-mail and surfing the internet.

Shipping

The Portland harbor and the Port of Vancouver offer one of the most comprehensive and well-managed
maritime complexes in the Pacific Northwest. The Port of Portland owns four marine terminals and
industrial property adjacent to the harbor. The harbor facilities are well served by the area’s rail and
highway transportation network. Containers may be loaded directly from ship to railcar, eliminating cross-
town drayage expenses. The Port also operates Foreign Trade Zone (FTZ) #45. Foreign merchandise
entering the FTZ is not subject to normal customs entry procedures and duty payment until it leaves the
FTZ and enters the stream of domestic commerce. The port is the number one auto port on West Coast,
number four in auto imports in the U.S., and third in total tonnage on the West Coast. In 2005, The Port
of Portland experienced a total tonnage volume of 11,547,668 short tons.

Rail

The Portland metropolitan region is the western terminus for the east-west rail corridor that runs at river
grade along the Columbia River. The region is served by two transcontinental railroads: Burlington
Northern Santa Fe and Union Pacific. Portland handles vast quantities of all types of cargo, including
containers, automobiles and bulks (agricultural and mineral), as well as all merchandise cargo. Of the
more than 126 million square feet of industrial building space in the area, more than half is served by rail.

Highways and Trucking

Two major interstate highways, Interstate-5 and Interstate-84, intersect in the region. Interstate-5 is the
main north-south route from Canada to Mexico, connecting Seattle, Portland, Sacramento, Los Angeles
and San Diego. Interstate-84 is the principal route east from Portland to Salt Lake City and on to the
Midwest and East Coast. Approximately 100 national, regional and local truck lines serve the Portland
metropolitan area. First morning service is provided as far north as Vancouver, B.C. Los Angeles is less
than two days south.




                                                                                                            55
Bus, Light Rail and Streetcar

Across the Columbia River, C-Tran serves Clark County and the surrounding area. Commuter services to
Portland, as well as 26 transit routes, tie the region together. Locally, the Tri-County Metropolitan
Transportation District of Oregon (TriMet) serves some 575 square miles of the metropolitan area.
Ridership has increased each year, to its current record level of 91 million rides per year. By providing
efficient transportation alternatives and taking cars off the roads, TriMet helps keep the air clean and
preserves the region’s quality of life.

TriMet operates the 44-mile Metropolitan Area Express (MAX) light rail line, along with 93 bus routes and
services for seniors and people with disabilities. MAX has become a national model for community
support, land-use/transportation planning, public art and environmentally friendly construction practices.
The 33-mile MAX Blue Line connects the cities of Portland, Gresham, Beaverton and Hillsboro. The 5.5-
mile Airport MAX Red Line extension, the West Coast’s first train-to-plane service, connects Portland
International Airport with downtown. The 5.8-mile Interstate MAX Yellow line extension, which opened
ahead of schedule in May 2004, connects the Rose Quarter Transit center to the Expo. TriMet’s MAX
and buses combined eliminate 62 million car trips per year.

The South Corridor project, which has been approved by Metro and local governments, outlines future
transportation options. Phase 1, the South Corridor Project to Clackamas County, and phase 2, the
future Portland-Milwaukee extension, will add more than 14 miles to the existing light rail system.
Completed in March 2005, the 1.2-mile Portland Streetcar extension to Riverplace lengthens the streetcar
line to six miles total, with 40 platform stops. Acting as a circulator on its six mile loop, the Portland
Streetcar operates seamlessly with existing surface transit and carries approximately 4,000 passengers a
day in the central city and northwest Portland.

Leisure Travel and Tourist Attractions

Portland features an abundance of dining, cultural and recreational opportunities, the nation’s largest
number of local microbreweries, and the nation’s largest independent bookstore.

A variety of demand generators draw tourists to the Portland market area. Within the central business
district, Portland’s relatively new Center for the Performing Arts features symphony, opera, ballet, and
theater performances. The Oregon Symphony Orchestra is the oldest orchestra in the western United
States; the Portland Opera Association offers a minimum of four operas each year; two ballet companies,
Ballet Oregon and Pacific Ballet Theater, serve the area; and nearly 20 theater companies round out
Portland’s performing arts offerings. Portland is also home to a large collection of public art, a number of
unique museums, the Washington Park Zoo, and two professional sports teams; the NBA’s Portland
Trailblazers and the Western Hockey League’s Winter Hawks.

Located to the north of downtown Portland across the Willamette River is the Rose Quarter, an
entertainment complex featuring the Rose Garden, the Memorial Coliseum, and the Rose Quarter
Commons. The Rose Garden, a newly constructed sports arena, contains approximately 20,000 seats
and has replaced Memorial Coliseum as the home of the Portland Trailblazers. Memorial Coliseum, a
12,000-seat arena, is still used by the Winter Hawks and for concerts and special events. The Memorial
Coliseum also houses an exhibit hall with approximately 40,000 square feet of exhibit space. The Rose
Quarter Commons is an outdoor paved plaza that connects the new Rose Garden, the Memorial
Coliseum, and the Rose Quarter Restaurants. At more than 125,000 square feet, the Rose Quarter is
Portland’s largest outdoor public plaza.




                                                                                                         56
PGE Park hosts approximately 360,000 fans per year. The Park has 24 luxury suites and 6 field suites.
There are 86 sporting events scheduled for 2006. Both the Beavers (baseball) and the Timbers (soccer)
play their regular season games at PGE Park. The Park also hosts concerts in the summer seasons.
The stadium underwent a $38.5 million renovation in 2001.

Portland hosts several festivals throughout the year, including the Portland Rose Festival, a 22-day event
in June that includes carnival rides and a starlight parade. Skiing, golfing, wind surfing, fishing, hiking,
hunting, camping, sailing, running, and mountain climbing are year-round activities in areas east of
Portland, such as the Columbia River Gorge and Mount Hood. Additionally, the Pacific Ocean is
approximately 80 miles west of Portland. In Portland, more than 250 community and neighborhood
parks, natural areas, recreational facilities, and gardens cover more than 10,500 acres of Portland’s 130
square miles, representing approximately 10% of all city land. A regional system of trails planned to
eventually reach 750 miles links neighborhoods, schools, parks and jobs. The temperate climate makes
a walk in the park or woods a year-round activity.



Sources:    Portland Business Alliance
            HVS International
            Port of Portland
            Merchants Exchange
            Portland International Airport
            Encarta
            Oregon Convention Center




                                                                                                         57
AREA INFORMATION


Seattle, Washington

Area Overview

The city of Seattle is located in King County in the state of Washington. King County is bounded on the
north by Snohomish County, on the east by Chelean and Kittitas Counties, on the south by Pierce
County, and on the west by Kitsap County and Puget Sound.

The “Puget Sound Area” encompasses the counties of King, Pierce, and Snohomish. This area consists
of an approximately 100-mile long strip of land bounded by Puget Sound to the west and the Cascade
Mountain Range to the east. The central Puget Sound Area, which includes Seattle, is considered the
Pacific Northwest region’s financial and distribution center, as well as its largest population center. In
December 2005, this area had an estimated population of approximately 3.3 million people, which
represents 55% of the state of Washington.

The Seattle metropolitan area is the largest urban concentration in the region. It is located in the western
portion of King County, and the Seattle metropolitan area can be considered to extend north to Everett
and south to Tacoma. Nearby communities include Bellevue, Renton, Kent, Tukwila, Sea-Tac, and
numerous unincorporated neighborhoods.

Population

A population history and forecast for King, Snohomish, Pierce, and Kitsap Counties was completed in
April of 2004 by the Puget Sound Regional Council, and can be found below. This shows that th e four
county region experienced continued population growth through the end of 2000 and then will slow and
stabilize for the next 20 years. The largest percentage of growth will focus in areas outside of the Seattle
City limits, due to the lower cost and availability of housing.


                                   Census Information and Population Estimates
                       1970               1980              1990            2000       2010 Est.   2020 Est.
 King              1,159,464          1,269,749         1,507,319       1,755,429      1,932,057   2,132,730
 Kitsap              101,761            147,152           189,731         255,425        289,570     341,748
 Pierce              412,480            485,643           586,203         728,508        839,317     935,455
 Snohomish           265,271            337,720           465,642         605,164        743,563     855,761
 Totals            1,938,976          2,240,264         2,748,895       3,344,526       3,804,57   4,265,694



                                          Population Growth by Decade
                       1970-1980            1980-1990           1990-2000           2000-2010      2010-2020
 King                       9.5%               18.7%               16.5%               10.1%          10.4%
 Kitsap                   44.6%                28.9%               34.6%               13.4%          18.0%
 Pierce                   17.7%                20.7%               24.3%               15.2%          11.5%
 Snohomish                27.3%                37.9%               30.0%               22.9%          15.1%




                                                                                                           58
Economy

Seattle is a major manufacturing center and a prime air and water port for international trade. Situated on
Elliott Bay, a deep and unobstructed saltwater harbor, Seattle’s port was organized in 1911 and is publicly
owned. Seattle boasts the shortest routes from the U.S. mainland to Tokyo, Japan, and is the primary
American port to Asia and Siberia. The port has also long considered itself the gateway to Alaska.
Seattle’s port is among the largest in the United States, managing 28 commercial terminals that link 30
steamship operators with more than 150 truck, rail, or warehouse operators.

Once a “one-company” town, dependent on the fortunes of The Boeing Company, Seattle’s economy in
the 1990s was characterized by industrial diversity, including aerospace, software, computer and
electronic equipment, medical devices and biotechnology, and telecommunications products. Among
Greater Seattle’s leading employers are Boeing and the Microsoft Corporation. Other major local
companies include Costco Companies, the Weyerhaeuser Company, Paccar, Nordstrom, SAFECO
Corporation, Airborne, Starbucks Coffee, Amazon.com, and Alaska Airlines.

Seattle is served by the Seattle-Tacoma International Airport (Sea-Tac), 13 miles south of the city. The
Burlington Northern and Union Pacific railroads provide transcontinental service to Seattle, and Amtrak
offers passenger rail service. The Metro Transit bus system provides service throughout King County,
linking to Pierce County Transit and Snohomish County Transit, as well as to waterfront ferries. The
Washington State Ferry system provides service from Seattle to Bainbridge Island, Vashon Island, and
Bremerton, Kingston, and Southworth on the Kitsap Peninsula; nearly 24 million passengers boarded
ferries throughout the system in 2005.

Companies

Five companies on the 2005 Fortune 500 list of the United States' largest companies, based on total
revenue, are currently headquartered in Seattle: financial services company Washington Mutual (#131),
insurance company Safeco Corporation (#285), clothing merchant Nordstrom (#294), Internet retailer
Amazon.com (#303) and coffee chain Starbucks (#372).

Many Seattle residents work for companies based outside of Seattle proper. Airplane manufacturer
Boeing (#21) was the largest company based in Seattle before its 2001 corporate headquarters move to
Chicago. Because several production facilities remain in the region, Boeing is still a major Seattle
employer.

Other Fortune 500 companies popularly associated with Seattle are based in nearby Puget Sound cities.
Warehouse club chain Costco Wholesale Corp. (#29), the largest company in Washington state, is based
in Issaquah. Microsoft (#46) is based in Redmond. So was the cellular telephone pioneer McCaw
Cellular, which in 1994 became AT&T Wireless (#120), before being absorbed in 2004 by Cingular.
Weyerhaeuser, the forest products company (#95), is based in Federal Way near the city of SeaTac.
Bellevue is home to truck manufacturer PACCAR (#250).

The city has announced a desire to spark a new economic boom driven by the biotechnology industry.
Major redevelopment of the South Lake Union neighborhood is underway in an effort to attract new and
established biotech companies to the region, joining current biotech companies such as Corixa, Immunex
(now part of Amgen), and ZymoGenetics. The effort has public support and some financial backing from
former Microsoft founder Paul Allen.




                                                                                                        59
In 2005, the Seattle area had a 4.7% unemployment rate, down from 4.9% in 2004. The Seattle area is
the regional center for the Pacific Northwest, and due to the strength of the local economy, regional
offices of the federal government, business and financial institutions are being established there.
Globally, Seattle is a well-established leader for advanced technology in aerospace, computer software,
bioinformatics, genomics, telemedicine, electronics, medical equipment and environmental engineering.

Aircraft and parts jobs make up the largest category of manufacturing employment. The Boeing
Company remains the largest employer in the area, directly and indirectly accounting for one fifth of the
regional economy. The world's largest aerospace company, Boeing is also the #2 maker of large
commercial jets and the #2 defense contractor. Boeing has two major segments: Commercial Airplanes
and Integrated Defense Systems. Boeing's commercial aircraft include the 787 Dreamliner (due in 2008),
767, 747, and the 737; military aircraft include the F/A-18 Hornet, the F-15 Eagle, the C-17 Globemaster
III transport, and the AH-64D Apache helicopter. Boeing's space operations include communications
satellites, Delta rockets, missiles, the International Space Station, and the Space Shuttle (with Lockheed).
Overall, Boeing is expected to remain as the primary manufacturing payroll generator in the Seattle area
economy for the foreseeable future.

Microsoft is the region’s second largest employer with year-end 2004 employment of 28,007 people in
Washington State and 57,000 people worldwide. Each Microsoft job creates approximately 3.5 additional
jobs in the area. With wages and benefits averaging $58,860 (excluding stock options) per employee
combined with the “Wealth Affect” created by their stock options, Microsoft’s economic impact is a
significant contributor to the regional economy. Microsoft’s net income for the quarter ending December
2005 was $3.6 billion and it’s market capitalization is $277 billion.

The payroll for the region’s 23,500 software workers was $6.77 billion (including stock options), or an
average wage of $288,085. The success of Microsoft has not only created exceptional individual wealth
but has created a tremendous source of wealthy, young, entrepreneurial business people who have left
Microsoft to create spin-off companies. There are an estimated 2,500 software development firms in the
state. In addition, many high technology companies are attracted to the Redmond area in order to be
close to Microsoft, as the company continues to dominate the software industry.

A vibrantly competitive telecommunications sector, with extensive fiber optic corridors serving numerous
commercial areas, has encouraged the growth of the technology sector. High bandwidth services are
provided on a competitive basis by both cable television and digital subscriber line technologies in almost
all locations.

Bio and High-Tech firms generate $2 billion in revenue for the state’s economy and account for nearly
15,000 jobs in 160 companies. By the end of 2005, biotechnology and medical technology companies
are projected to employ 27,000 people, account for more than $2 billion in R & D expenditures and
generate sales revenues of approximately $5 billion annually in the state’s economy. Other major
industries include wood products, transportation equipment, food products, fish processing and apparel
design.




                                                                                                         60
                                         T OP 20 EMPLOYERS
                                    CENTRAL PUGET SOUND REGION
               Company                                               # of Employees
               The Boeing Co.                                               63,361
               Microsoft Corp.                                              28,007
               Costco Wholesale Corp.                                       15,000
               Safeway Inc.                                                 12,809
               Fred Meyer Stores                                            12,197
               Weyerhaeuser Co.                                             10,000
               Group Health Coop.                                            9,790
               Providence Health                                             8,412
               Swedish Health                                                7,115
               Starbucks Corp.                                               6,736
               Washington Mutual Inc.                                        6,139
               Bank of America                                               5,463
               Multicare Health Systems                                      5,083
               Nordstroms Inc.                                               4,500
               The Bon Marche                                                4,300
               Alaska Air Group                                              4,000
               Haggen Inc.                                                   4,000
               Safeco Corp.                                                  3,800
               Evergreen Healthcare                                          2,700
               Regence Blue Shield                                           2,450

An employment forecast for King, Snohomish, Pierce, and Kitsap Counties was also completed in the
same previously cited study by the Puget Sound Regional Council, and the results can be found in the
graphs below. The study indicates that while the four County region is experiencing a slowing in job
growth as a percentage, it is anticipated that the total new jobs created over the next 20 years will be
slightly less than the new jobs created over the previous two decades. The growth of new jobs is spread
evenly as a growth percentage throughout the four Counties, but as a raw number, King County will
create nearly 60% of the new jobs in the four County regions:

                                        Total Jobs and Estimates
                      1970           1980           1990           2000        2010 Est.     2020 Est.
 King               466,592        697,401        972,567      1,123,512       1,301,870     1,420,533
 Kitsap              38,405         56,701         79,267         89,621         110,085       128,415
 Pierce             163,415        175,904        224,059        267,323         313,275       353,457
 Snohomish           72,515        103,401        169,350        221,841         265,061       303,405
 Regional           740,927      1,033,407      1,445,243      1,702,297       1,990,291     2,205,810

                                       Total Jobs and Estimates
                           1970-1980       1980-1990       1990-2000        2000-2010       2010-2020
 King                         49.5%             39.5%           15.5%           15.9%            9.1%
 Kitsap                       47.6%             39.8%           13.1%           22.8%           16.7%
 Pierce                         7.6%            27.4%           19.3%           17.2%           12.8%
 Snohomish                    42.6%             63.8%           31.0%           19.5%           14.5%
 Regional                     39.5%             39.9%           17.8%           16.9%           10.8%




                                                                                                     61
Seattle has been ranked as one of the best U.S. cities in which to locate a business according to several
recent surveys. Key factors are Seattle’s skilled work force, manufacturing capability, education and
research, quality transportation and infrastructure, access to international and domestic markets, and
government accessibility. Other important factors are cultural diversity, an international perspective, and
quality of life.


Tourism and Convention Activity


Tourism

Tourism continues to be one of the fastest growing industries in the Pacific Northwest, and is the fourth
largest industry in the state of Washington. The Norwegian Cruise Line has added Seattle as a home
port and the Washington State Convention and Trade Center completed a major expansion in 2001.
Seattle Center (site of the 1962 World's Fair) and local hotels have gained a reputation as exciting venues
for conferences and conventions. Other major facilities include the Bell Harbor International Conference
Center, a new Stadium Exhibition Center and the Meydenbauer Center in Bellevue.

The Pacific Northwest is well positioned to capitalize on incoming tourist and commercial travelers from
the Pacific Rim countries. Seattle is the gateway too much of the travel to Alaska, and a stopover point
for much of the cruise ship travel to Alaska departing from Vancouver, British Columbia. In May of 2000,
the Norwegian Sky established Seattle as the homeport for passenger transits through the Port of Seattle
that previously had to transfer from SeaTac to Vancouver, BC. In April 2001, Royal Caribbean’s MV
“Vision of the Seas” began two, three, and four night itineraries. It generated almost 120,000 passenger
transits at the Bell Street Pier and created 570 jobs and $25.5 million in new business revenue. The
region has received excellent national and international media exposure in recent years as a result of the
world’s fair in Vancouver, and the 1990 Goodwill Games in Seattle.

The following chart shows the economic impact of travel in the Seattle-King County area and Washington
State:

                                                   Seattle-King County        Washington State

        Travel Generated Employment                                50,500                126,560
        Estimated Out-of-State Visits                          25,400,000             41,400,000
        Travel Expenditures                                $4,960,000,000         $9,620,000,000
        Travel Generated Payroll                           $1,230,000,000         $2,170,000,000
        State Tax Receipts                                  $190,800,000           $470,600,000
        Local Tax Receipts                                  $110,800,000           $177,800,000


Convention Center

The Washington State Convention and Trade Center opened its doors in June 1988. The primary goal of
the convention center, located in downtown Seattle, is to attract affluent business groups to the state
including medical exhibitions, conventions, and trade shows. The facility has been designed to fit mid-
size national and international conventions drawing between 2,000 and 10,000 delegates per event and is
generating 150 to 160 events per year.




                                                                                                        62
Meetings & Conferences

       54 meeting rooms accommodate groups from 10 to 3,500+.
       Fully carpeted and appointed with high-quality finishes.
       Total sound separation between rooms.
       State-of-the-art lighting and climate control.
       Complete audiovisual services and technology support.

Banquet and Event Services

       Dramatic spaces and settings.
       Fully carpeted and beautifully appointed with high-quality finishes.
       Nationally-acclaimed staff, trained at the Culinary Institute of America.
       Complete on-site kitchen and bakery.
       Inspired food and wine selections and presentations.
       Service for 10 to 10,000.

Exhibits & Tradeshows

       The Northwest's premier event facility.
       205,700 square feet of dedicated exhibit space.
       Divisible into 3 sections.
       Accommodates 50 to 500 10'x l0' booths.
       45,000 square feet of divisible ballroom space.
       Divisible into 4 sections.
       Accommodates 20 to 200 10'x 10' booths.
       Complete event services and support.
       Convenient downtown location and on-site parking.


Bell Harbor International Conference Center

Completed in 1996, the Bell Harbor International Conference Center is Seattle’s newest meeting center.
Located on the water, views of Elliott Bay are available in most of the meeting rooms. The Amenities and
facilities offered are:

       52,000 square feet conference center.
       5,000 square feet International Exhibit Hall.
       4,000 square feet Harbor Dining Room.
       4 main conference rooms.
       Private dining room.
       Rooftop Plaza for outdoor functions.

The Bell Harbor International Conference center is positioned as a small, upscale international meeting
facility. It is equipped with state of the art technology that enables the attendees to use their exclusive
Electronic Group Interaction System, simultaneous interpretation and video-conferencing.

The center is used for overflow meetings in association with citywide conventions as well appealing to
smaller regional groups.




                                                                                                        63
Seattle Center

   Built in 1962 as the World Fairgrounds, the Seattle Center is the city’s most popular cultural and
   recreational attraction. Over 5,000 performances are held annually at the Seattle Center. In addition
   to its popularity as an urban park and site for Professional Indoor sports. Seattle Center provides a
   home for the Seattle Opera, Seattle Symphony, Pacific Northwest Ballet, and several major theater
   companies. Each year special festivals such as Bumbershoot, Northwest Folk Life festival, and the
   Bite of Seattle draw hundreds of thousands of visitors each year.

   In the fall of 2005, the Seattle Center will begin the second phase of implementing its “master plan” to
   renew the 74-acre campus and better serve the community in the years ahead. These exciting
   projects will transform temporary and antiquated buildings into inviting spaces that celebrate the
   artistry, energy and power of the performing arts, from grass roots to world class.

Major Attractions

   In addition to the Seattle Center, other major attraction include, the Space Needle, Pike Place Market,
   the Hiram Chittenden Locks, Woodland Park Zoo, Tillicum Indian Village, Seattle Aquarium,
   waterfront, lakeside and sound beaches, Pioneer Square, International District, and local wineries
   and breweries. Outdoor activities include boating, fishing, golf, water sports, hiking, biking, mountain
   climbing, and skiing. Seattle is situated on the shores of two large lakes and Puget Sound, with
   remote wilderness less than an hour away, and is flanked by two major mountain ranges (Olympics
   and Cascades), with Mount Rainier in full view. Nearby are the San Juan Islands, Pacific Ocean
   beaches, and major rivers.

Arts, Festivals and Sports Events

   Seattle is renowned for its world-class music and dance, with the Seattle Symphony, Seattle Opera,
   and Pacific Northwest Ballet. A large population of artists is supported in part by public funds. There
   are numerous galleries in addition to the Seattle Art Museum and Seattle Asian Art Museum. Drama
   and literature flourish with 80 theater companies, the Seattle Poetry Festival and the Northwest
   Bookfest. The Seattle region has become a major attraction for the television/film industry and
   supports a major International Film Festival. Major league sports include Seahawks football (a new
   stadium will be completed in 2002), Mariners baseball (at Safeco Field), Supersonics basketball,
   Seattle Storm women's basketball, and Seattle Sounders soccer. The citywide Seafair festival in
   August is a long-time Seattle tradition, including hydroplane boat races, Navy ship tours and the Blue
   Angels aerial exhibition.

International trade

   Washington State exceeded $36 billion in foreign exports in 2005. Nearly three-quarters of
   Washington's exports are from the central Puget Sound region. As a result, the economy is
   extremely dependent upon foreign trade. International trade provides (directly and indirectly) nearly
   740,000 jobs annually. One in three jobs in Washington is tied to foreign exports. While the state
   represents about 2% of the nation's population, its ports handle 7% of all U. S. exports and receive a
   6% share of the nation's imports.

   Historically, demand for traditional exports of fur, timber and seafood established trade as a
   cornerstone of life in King County. Today, in the central Puget Sound region, the largest exports are
   in aerospace, forest, computer products and processed food. Close proximity to Asian markets
   means a majority of trade flows east. However, Canada and several European nations are also
   found among the list of top twenty trade partners




                                                                                                        64
Transportation


Railroads and Bus Service

   Burlington Northern and Union Pacific provide transcontinental rail service and operate three
   intermodal yards in Seattle. Passenger service to major US destinations is provided by Amtrak.
   Various bus lines connect Seattle with major cities in the U.S., Canada, and as far south as Tijuana,
   Mexico. Seattle is served by a countywide bus system with a ride-free zone in Seattle’s downtown
   district. The voter approved Sound Transit plan is in the process of integrating transportation in the
   greater Seattle area using light rail, commuter rail from Everett to Seattle to Tacoma.

Fishermen’s Terminal

   Fishermen’s Terminal serves as the homeport for the US North Pacific fishing fleet and as a growing
   center for other commercial workboats as well. The facility provides moorage for 700 vessels, along
   with the most comprehensive support services available on the West Coast. Nearby, the Maritime
   Industrial Center offers additional vessel moorage, storage, re-supply, maintenance, and repair
   facilities.

Harbor Facilities

   Closer to Asia and Alaska than any other major U.S. seaport, Seattle is a premier gateway for
   products, cruise passengers and tourists moving to and from North America. Seattle’s seaport is an
   international trade resource for customers throughout the world, providing fast and convenient links to
   global markets. It also is an economic engine for the local community, providing jobs and business
   opportunity.

   The Port of Seattle is the fifth largest container port in the United States and 25th largest in the world.
   Products valued at $36 billion cross the Port's docks each year. It is served by 20 regularly
   scheduled container steamship lines, two major transcontinental railroads, and more than 100
   trucking companies that link Seattle to market hubs throughout North America.                     The Port
   encompasses more than 450 acres of container-handling space, with 25 container cranes and
   facilities to handle chilled fruit, vegetables, forest products, automobiles, steel, cruise ships and grain.
   The recently expanded terminal 18 increased container-handling space to 545 acres. The Port also
   owns and operates Seattle-Tacoma International Airport; Fishermen's Terminal and Marine Industrial
   Center; Shilshole Bay Marina, and Bell Street Pier, an 11-acre complex with an international
   conference center, marina, cruise ship terminal, shops and restaurants. The new World Trade Center
   complex, adjacent to the Bell Street Pier, strengthens Seattle's role as a center for international trade.

   About 70 percent of the Port’s containerized cargo originates in or is destined for regions of the
   country outside the Pacific Northwest, making Seattle a trade gateway of regional, national and
   international significance. The Port owns one of the largest, most efficient cargo load centers on the
   West Coast of the United States, handling 14,460,124 million metric tons in 2005. About 1.8 million
   containers crossed the Port’s docks last year, and Seattle has the capacity to nearly double its
   current container volume to 3 million TEU (twenty foot equivalent units).




                                                                                                            65
Cruise Seattle

   The cruise industry in Seattle has expanded dramatically due to Port investment, cruise line
   commitments and vacationers wishing to visit domestic ports. Since 1999 when six ships called on
   Seattle, this homeport has grown in popularity and in the summer of 2005 an estimated 170 ships will
   call, bringing about 650,000 passengers. Now Seattle is homeport for four cruise lines and eight
   different ships. The Port collaborates with state and local institutions involved with tourism
   development, including the Washington State Tourism Office and the Seattle Convention & Visitors
   Bureau, to create and oversee plans for international tourism promotion targeting the primary markets
   of the United Kingdom, France and Japan.

Seattle-Tacoma International Airport (Sea-Tac)

   Sea-Tac International Airport is the 16th largest airport in the United States and is the dominant
   airport in the Pacific Northwest. Sea-Tac Airport serves 70 domestic and 13 international destinations
   and more than 29 million passengers annually, one in 10 of them on an international flight. Air cargo
   at Sea-Tac Airport in 2005 totaled 338,591 metric tons with international freight making up nearly a
   quarter of the volume. Two major U.S. railroads are within two miles of container terminals, and two
   major interstate highways are within minutes of all terminals, providing efficient truck and rail access
   for inland destinations including Chicago, New York and Boston.

   2004 marked the completion of several airport construction projects, including the new South
   Terminal, and the new Central Terminal and Pacific Marketplace opened on May 2, 2005:

    Concourse A - The new Concourse opened in June 2004. Once the smallest of the concourses,
     the new wider, longer concourse has 14 gates, moving walkways, public meeting space, new
     restaurants and retail concessions.

    Satellite Transit System - The airport's subway system has been completely renovated.

    Third Runway - The new runway will allow aircraft to land on two runways at the same time in all
     but the worst weather, reducing flight delays.

    Parking Garage Lighting Upgrade - Brighter, whiter lights have been installed on all eight floors
     of the airport's parking garage, improving safety and way finding.

Conclusion

Tourism and commercial travel in the Seattle area continue to be supported by a strong local economy
given the underlying strength of the aerospace and high technology industries, the active trade with
Pacific Rim nations, the growth in the service sector, and a more diversified employment base. The
convention center is attracting many people to the Seattle area, creating an influx of visitor spending.
Demand for hotel accommodations which are convenient to office developments, the convention center,
and the retail core are expected to continue its increase.


Sources:   HVS International
           Puget Sound Business Journal's Book of Lists
           Dean Runyan Assn. for Washington State
           Washington State Convention and Trade Center
           Port of Seattle




                                                                                                        66
AREA INFORMATION


Nashville, Tennessee

Nashville is situated in the north-central region of Tennessee, approximately 40 miles south of the state’s
border with Kentucky. Nashville’s city limits extend to the Davidson County line, and span 533 square
miles. Davidson County is part of the Nashville-Davidson-Murfreesboro, Tennessee Metropolitan
Statistical Area (NDM-MSA), as well as the Nashville Economic Market (NEM). The NDM-MSA extends
4,004 square miles, encompassing eight counties, including Cheatham, Davidson, Dickson, Robertson,
Rutherford, Sumner, Williamson, and Wilson. The NEM spans 5,225 square miles, and encompasses the
MSA, as well as the two additional counties of Maury and Montgomery.

As the capital of Tennessee, Nashville is the state’s most populous and urbanized city. Additionally,
Nashville is a major transportation hub of the United States due to its strategic location in the center of the
Eastern United States. Nashville is within 650 miles of half of the United States’ population. Three major
interstate highways converge in the Nashville market area: Interstates 65, 40, and 24. Moreover,
Nashville is linked to 20 other states by railroads provided by CSX Transportation, the largest railroad in
the Eastern United States. Nashville is also navigable by air and water. Nashville International Airport
(BNA) services Nashville and its surrounding counties, and the Port of Nashville provides for water freight
access to Nashville by way of the Gulf of Mexico and the Cumberland River.

The city of Nashville is a center for business, government, and tourism. The economic structure of
Nashville is diverse. Although the local economy typically parallels the national economy, the diversity of
economic sectors creates a degree of stabilization, which results in sustainable employment growth and
relatively low unemployment rates. Industries represented in the Nashville economy include finance and
insurance, healthcare services, automobile manufacturing, computer manufacturing, music,
entertainment, hospitality, and tourism. With regard to tourism, the City of Nashville’s major lure is music,
as a result, it has been heralded the “Music City.” Many of the biggest stars in country music began their
careers at live music venues in Nashville. These stars continue to establish residences in the area, giving
rise to attractions focused on the music industry, including the Country Music Hall of Fame, the Grand Ole
Opry, and Opryland Mall.

Demographic and Economic Trends

The following chart displays the labor force and labor force growth between 1995 and 2005 for various
counties in Tennessee and the United States:


                                             Labor Force Growth

           County                            2005 Labor Force     1995 Labor Force     Growth (%)
           Cheatham                                  19,380              16,830           15.2%
           Davidson                                 302,730             295,850            2.3%
           Dickson                                   22,480              19,120           17.6%
           Robertson                                 30,560              24,550           24.5%
           Rutherford                               110,410              78,560           40.5%
           Sumner                                    72,910              61,260           19.0%
           Wilson                                    52,030              41,240           26.2%
           Nashville Economic Market                760,700             675,360           12.6%
           Tennessee                              2,913,800           2,664,640            9.4%
           United States                       147,978,000          131,056,040           12.9%




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Population

The total population in Davidson county in July 2005 was 556,719, an approximately 1.2% increase over
the same period in 2004. The median resident age was 33.8 years and the median household income
was $43,315 for the year-ending 2005.

The following chart displays the educational attainment for citizens in Nashville-Davidson who are age 25
and above for 2005:


                                        Educational Attainment
                             High school or higher             80.1%
                             Bachelor's degree or higher       30.7%
                             Graduate or professional degree   10.0%


The population growth of the MSA has historically exceeded those of the state and nation. This trend is
expected to continue through 2010. Per capita personal income in the county increased at a healthy
average annual compounded rate of 3.4% between 1990 and 2005, higher than those of the MSA, state,
and nation. Income growth in the county between 2000 and 2005 was higher than those of the MSA,
state, and nation. As such, Davidson County residents are amongst Tennessee’s wealthiest, with a per
capita personal income nearly 1.2 times that of the nation. Per capita personal income should continue to
grow at a modest average annual compounded rate of 1.2% for the county through 2010.


Workforce Characteristics

The following table sets forth the Nashville MSA workforce distribution by business sector for 2005:


                                         Workforce Distribution
                           Manufacturing                              11.9%
                           Trade, Transportation, & Utilities         20.7%
                           Information Technology                      2.7%
                           Financial Services                          7.4%
                           Professional & Business Services           11.4%
                           Educational & Health Services              14.4%
                           Leisure & Hospitality                      12.5%
                           Other                                      19.0%




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Major Employers

The following table presents a list of the major employers in the Nashville-Davidson-Murfreesboro,
Tennessee MSA:



  Firm                                                         Industry                  No. of Employees
  Tennessee State Government                                   Government                     20,312
  Vanderbilt University & Medical Center                       Education                      13,400
  United States Government                                     Government                     12,000
  Metropolitan Government of Nashville & Davidson county       Government                     10,430
  Metropolitan Nashville & Davidson County Schools             Education                      10,000
  HCA (including Tri-Star Health Systems)                      Healthcare                     9,863
  Saturn Corporation                                           Automobiles                    8,500
  Nissan Motor Manufacturing Corporation                       Automobiles                    6,600
  Kroger                                                       Grocery Retailer               5,900
  Gaylord Entertainment Company                                Entertainment                  5,000
  Wal-Mart Stores                                              Retail                         4,500
  Dell Computer Corporation                                    Computers                      4,000
  Shoney’s Corporation                                         Restaurants                    4,000
  Summer County Public Schools & County Government             Education/Government           3,900
  Bridgestone/Firestone                                        Tires                          3,800
  Saint Thomas Hospital                                        Healthcare                     3,800
  BellSouth                                                    Telecommunications             3,400
  Rutherford County Board of Education & County Government     Education/Government           3,300
  Baptist Hospital                                             Healthcare                     3,000
  Williamson Public Schools & county Government                Education/Government           2,650


The composition of the largest employers in the area is diverse, as major companies in the automobile,
healthcare, retail, restaurant, and technology industries are located, along with local, state, and federal
government officials, within the MSA.

Nissan North America Inc. is moving its North American headquarters from the Los Angeles suburb of
Gardena, California to Nashville. As part of the move, Nissan is buying a 50-acre site from Crescent
Resources in the Cool Springs submarket. The automotive maker will spend $70 million on the new
headquarters, which will span between 400,000 and 450,000 square feet. Construction is slated to begin
this year with delivery expected in 2008. It is expected that over 1,800 new local jobs will be created in
addition to an influx of residents moving to Nashville from Southern California. The new headquarters will
be located 8 miles from the hotel. Nashville has been ranked number one in the top 20 “Hot
Headquarters Metro areas for the 21 st Century.”

The Airport/Murfreesboro (AMR) office submarket contains approximately 5.7 million square feet in 61
buildings, which is 21% of Nashville’s total office space. Infrastructure improvements continue in the
Briley Parkway/Interstate-40 corridor in the AMR submarket. Access to facilities within this corridor will be
dramatically enhanced once infrastructure projects are completed. Last quarter’s positive net absorption
rate of 30,000 square feet is the fourth consecutive quarter with positive absorption. AMR has posted




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191,000 square feet of positive net absorption during the previous 12 months. Both Class A and B
properties showed improvements during the quarter and posted decreases in vacancy rates and positive
net absorption rates. The 20 Class A properties in Nashville (2.9 million square feet) posted a 10.3%
vacancy rate in the fourth quarter of 2005, a .4% decrease from the fourth quarter of 2004. Positive
absorption of 13,000 square feet for the Class A properties accounted for almost 45% of the submarkets
positive net absorption. The overall vacancy rate in Nashville decreased by 2.6% in 2005, to 9.8%. The
following employment centers are located within 8 miles of the hotel: Vanderbilt University, The Nashville
School District Headquarters, and Baptist Hospital.


Unemployment Statistics

The following table presents the historical unemployment rates for counties within the Tennessee MSA
1995 – 2005:


                                  Unemployment Rate by County 1993-2004

 Year    Cheatham     Davidson     Dickson    Robertson    Rutherford     Sumner    Williamson   Wilson
 1995       2.5         3.3          4.2         4.5          3.5           3.8          2.1      3.9
 1996       2.4         3.2          4.5         5.0          3.5           3.6          2.0      3.7
 1997       2.8         3.4          4.8         4.7          3.8           3.8          2.2      3.9
 1998       2.2         2.6          3.3         3.4          2.8           3.3          1.6      3.3
 1999       2.2         2.9          3.1         3.3          2.6           2.7          1.9      2.7
 2000       2.4         2.8          3.7         3.7          2.9           3.1          1.9      3.1
 2001       2.9         3.0          4.4         4.3          3.4           4.5          2.2      3.6
 2002       3.7         4.1          5.0         5.2          4.0           4.4          2.9      4.2
 2003       4.1         4.5          5.3         5.6          4.4           4.7          3.0      4.9
 2004       3.8         3.5          5.0         4.0          3.3           3.8          2.5      3.8
 2005       3.7         3.5          4.6         4.0          3.1           3.6          2.5      3.6


Unemployment levels in the county and MSA have generally been significantly lower than statewide and
national levels, the result of a relatively diverse economy. Nevertheless, from 2001 through 2003,
unemployment rates in both the county and MSA (like those in the state and nation) increased, which can
be attributed to the downsizing of several companies in the immediate area. This trend has since
reversed, as both regional and national economies have strengthened.

Convention Activity

The city of Nashville offers many venues for meetings and conventions. Three of the largest such venues
are the Nashville Convention Center, the Gaylord Entertainment Center, and the Nashville Municipal
Auditorium.

The Nashville Convention Center (NCC) is connected to the Gaylord Entertainment Center by way of an
air-conditioned tunnel. The Nashville Convention Center is substantially larger than the aforementioned
facilities, boasting an approximately 118,675 square-foot exhibit room with 27-foot ceilings, an
approximately 11,000 square-foot ballroom, and 25 additional meeting rooms, for a total of approximately
200,000 square feet of meeting and convention space. The following table displays the historical event
and attendance data for the Nashville Convention Center:




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                                Year          Number of Attendees
                                1996                395,770
                                1997                359,700
                                1998                356,336
                                1999                372,282
                                2000                350,085
                                2001                387,710
                                2002                441,597
                                2003                311,962
                                2004                356,201
                                2005                376,995



The Gaylord Entertainment Center (GEC), which is located along Fifth Avenue South, offers more than
64,000 square feet of meeting and convention space, including a 43,000-square-foot exhibit floor and
eight meeting rooms. The venue is the current home of the Nashville Predators, of the National Hockey
League. During special events the GEC can accommodate up to 20,000 delegates.

The Nashville Municipal Auditorium (NMA) is located in the central business district. This venue offers an
approximately 63,000 square-foot exhibit floor, a 9,654-seat arena floor, and an approximately 38,000
square-foot outdoor plaza. In addition to a meeting facility, the auditorium serves as a sporting venue that
hosts the Longhorn World Championship Rodeo and Arena-Cross (the largest indoor motor sports
series).

The Willis Conference Center's 20,000 square feet of flexible meeting space will accommodate groups of
10 to 200. Supported by advanced audiovisual systems, their 16 meeting rooms are state-of-the-art. The
facility includes soundproofing, ergonomically designed swivel chairs, individual climate and lighting
controls, and tack-able wall surfaces. The amphitheatre features tiered schoolroom seating that
accommodates 75-200 people. The amphitheatre’s front and rear screen projection facilities and
performance-quality acoustics make it the ideal location for training meetings, recognition events and
product introductions.

The Conference Center is the only Nashville member of the International Association of Conference
Centers (IACC). Through strict standards of facility design, IACC properties guarantee an environment
dedicated to productive meetings.

Nashville International Airport (BNA)

The Nashville International Airport (BNA) is located off of Interstate-40. Major commercial airlines that
serve BNA include American Airlines, Continental Airlines, Delta Airlines, Northwest Airlines, Southwest
Airlines, and US Airways. The following chart details the airport’s historical passenger traffic:




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                                     Nashville International Airport
                                  Year                Passenger Traffic
                                  1995                   7,642,638
                                  1996                   7,099,103
                                  1997                   7,627,434
                                  1998                   8,026,363
                                  1999                   8,554,211
                                  2000                   9,044,065
                                  2001                   8,473,617
                                  2002                   8,041,020
                                  2003                   7,981,178
                                  2004                   8,336,168
                                  2005                   8,877,481


As illustrated by the preceding table, total passenger traffic is rebounding at BNA. From 1997 to 2000,
traffic grew consistently, and the airport hosted more than nine million passengers in 2000. This was
followed by significant decreases in 2001 and 2002 when passenger traffic decreased to approximately
8.5 million and 8.0 million, respectively. The decline was a direct result of the terrorist attacks of
September 11th, 2001, and the slowing of the regional and national economies. Passenger traffic has
since rebounded and has increased by approximately 6.5% between 2004 and 2005.

Tourist Attractions

The area’s tourist attractions reflect the variety of activities that draw leisure travelers to the Nashville
area either as a destination or as stopping point. The convergence of three interstate highways,
Interstates 65, 40, and 24 directs numerous travelers through Davidson County. The following are
popular tourist destinations:

         The Coliseum was built in 1999 for $290 million. This sports complex is the home field for
          both the National Football League’s Tennessee Titans and the National Collegiate Athletic
          Association’s Tennessee State athletic teams. The sports complex seats approximately
          67,000 fans and has accommodated more than 500,000 fans annually since it opened.

         The Gaylord Entertainment Center, located along Fifth Avenue South, is a multi-purpose
          entertainment facility, which regularly hosts concerts, sporting events, meetings, children’s
          shows (such as Sesame Street Live), Disney On Ice, the Ringling Brothers Circus, and other
          spectacles. It is also home to the National Hockey League’s Nashville Predators.

         The $37 million upgrade of the Country Music Hall of Fame opened in 2001. Used to promote
          Country music, the approximately 135,000 square-foot venue, located along Demonbreun
          Street, contains a gallery and a concert hall.

         Ryman Auditorium is locally recognized as Nashville’s premier performance hall. This venue
          boasts 1,064 seats and is used for a variety of special events, including music concerts and
          comedy shows.




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        The Frist Center for Visual Arts is a not-for-profit art exhibition gallery located on Broadway,
         directly across from the subject property. The facility maintains approximately 24,000 square
         feet of exhibit space, and is used to enhance the public’s education and appreciation for the
         arts.

        The Grand Ole Opry is perhaps Nashville’s most famous musical theater and is now part of
         the Opryland Resort complex. For more than 75 years, this facility has featured top country
         western performers. The 4,400-seat venue broadcasts a live radio show, which holds the
         record as the world’s longest-running radio show.

        Opry Mills is a 1.1-million-square-foot shopping and entertainment mall, containing more than
         200 stores, restaurants, and entertainment venues.

        The General Jackson, first launched in 1985, is a 300-foot-long boat housing a restaurant
         and live entertainment. The boat can accommodate 1,200 passengers and 150 crew
         members.

        The Wave Pool, also known as Wave Country, is a public swimming pool that generates
         artificial waves. The park area also offers rentable flotation devices and food outlets.

        The Hermitage mansion, once the home of President Andrew Jackson, was built in 1802 and
         is still furnished with the original fixtures.

        Historic Second Avenue is Nashville’s entertainment center, featuring theme restaurants and
         nightlife. Some notable attractions include the Hard Rock Café, NASCAR Café, Wildhorse
         Saloon, and Tootsie’s Orchid Lounge. In addition to dining and entertainment venues, the
         district also includes many shops.

        The Bicentennial Mall is a 19-acre public park designed to complement the Tennessee
         Capitol Building. Built to celebrate the Tennessee bicentennial, the park contains exhibits that
         educate visitors in the history of Tennessee.

        The $20-million Centennial Sportsplex is a public sports complex used for fitness, tennis,
         swimming, and ice skating. The facility offers 17 acres of recreational enjoyment. In addition,
         the facility was the previous home of the National Hockey League’s Nashville Predators and
         is the current home of the American Hockey League’s Nashville Kats.

        The Parthenon, which is located in Centennial Park, is a re-creation of the original structure in
         Athens. Created to celebrate classical architecture, the Parthenon contains a museum with a
         42-foot statue of Athena.


Sources:   CB Richard Ellis
           HVS International
           Metro Nashville International Airport Authority
           Nashville Chamber of Commerce
           Nashville Convention and Visitors Bureau
           US Bureau of Labor Statistics
           Woods and Poole Economics, Inc.
           Tennessee Department of Transportation




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