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					EMBASSY SUITES — ORLANDO NORTH
       ALTAMONTE SPRINGS, FLORIDA




CONFIDENTIAL INVESTMENT OFFERING


   2
INSIDE OF COVER
CONFIDENTIAL INVESTMENT OFFERING




         PLEASE DIRECT ALL INQUIRIES TO


                            .
                 William P Stadler
                  Managing Director
            E-mail: bstadler@mkhotels.com


                   Mark J. Rome
                  Managing Director
            E-mail: mrome@mkhotels.com


              5215 N. O’Connor Boulevard
                       Suite 200
                   Irving, TX 75039
                 Phone: 972-868-9133
                  Fax: 972-868-9134

                  www.mkhotels.com
DISCLAIMER
THIS IS A CONFIDENTIAL OFFERING MEMORANDUM, PREPARED BY MOLINARO KOGER, INTENDED SOLELY FOR THE PROSPECTIVE PURCHASER’S
OWN LIMITED USE IN CONSIDERING WHETHER TO PURSUE NEGOTIATIONS TO ACQUIRE THE EMBASSY SUITES ORLANDO NORTH LOCATED
IN ALTAMONTE SPRINGS, FLORIDA. THE INFORMATION, ANALYSES, AND PROJECTIONS CONTAINED HEREIN ARE PROVIDED SOLELY
FOR INFORMATIONAL PURPOSES ONLY FOR PROSPECTIVE PURCHASERS, AND NO WARRANTY OR REPRESENTATION AS TO ACCURACY
OR COMPLETENESS IS MADE BY THE OWNER OR MOLINARO KOGER, THEIR SUBSIDIARIES OR AFFILIATES, NONE OF WHOM SHALL HAVE
ANY LIABILITY OR OBLIGATION WITH RESPECT THERETO. THE PROPERTY IS BEING SOLD ON AN “AS-IS, WHERE-IS” BASIS WITHOUT ANY
WARRANTIES WHATSOEVER, EXPRESSED OR IMPLIED. PROSPECTIVE PURCHASERS MUST, THEREFORE, RELY EXCLUSIVELY ON THEIR OWN
INVESTIGATIONS, INTERPRETATIONS AND ANALYSES IN CONNECTION WITH THIS OFFERING.

THIS SALE OFFERING IS MADE SUBJECT TO ERRORS, OMISSIONS, PRIOR SALE, CHANGE OF PRICE OR TERMS, OR WITHDRAWAL FROM THE
MARKET WITHOUT NOTICE. ALL INFORMATION IS FOR GUIDANCE ONLY AND DOES NOT CONSTITUTE ALL OR ANY PART OF A CONTRACT.
THE MATERIAL CONTAINED HEREIN IS CONFIDENTIAL, FURNISHED SOLELY FOR THE PURPOSE OF CONSIDERING THE PURCHASE OF THE
PROPERTY DESCRIBED HEREIN AND IS NOT TO BE USED FOR ANY OTHER PURPOSE OR MADE AVAILABLE TO ANY OTHER PERSON WITHOUT
THE PRIOR WRITTEN CONSENT OF THE OWNER.

THE SELLER EXPRESSLY RESERVES THE RIGHT, AT ITS SOLE DISCRETION, TO REJECT ANY OR ALL PROPOSALS OR EXPRESSION OF INTEREST
IN THE PROPERTY AND TO TERMINATE DISCUSSIONS WITH ANY PARTY AT ANY TIME WITH OR WITHOUT NOTICE.

BY ACKNOWLEDGEMENT OF RECEIPT OF THIS CONFIDENTIAL MEMORANDUM, PROSPECTIVE PURCHASER AGREES THAT THE MEMORANDUM
AND ITS CONTENTS ARE CONFIDENTIAL, THAT YOU WILL HOLD AND TREAT IT IN THE STRICTEST OF CONFIDENCE, THAT YOU WILL NOT,
DIRECTLY OR INDIRECTLY, DISCLOSE OR PERMIT ANYONE ELSE TO DISCLOSE THIS MEMORANDUM OR ITS CONTENTS TO ANY OTHER
PERSON, FIRM OR ENTITY WITHOUT PRIOR WRITTEN AUTHORIZATION OF SELLER. IF THE RECIPIENT DETERMINES NOT TO PARTICIPATE
IN THIS TRANSACTION, IT WILL PROMPTLY RETURN OR DESTROY ALL MATERIALS RECEIVED IN CONNECTION HEREWITH, INCLUDING THIS
MEMORANDUM, WITHOUT RETAINING ANY COPIES.




AGENCY
THE FIRM OF MOLINARO KOGER AND ITS AGENTS (“MK”) HAVE BEEN RETAINED TO MARKET THE PROPERTY. ALL PROSPECTIVE PURCHASERS
RECOGNIZE THAT MOLINARO KOGER REPRESENTS THE SELLER IN THIS TRANSACTION. THE FACT THAT MK AND ITS AGENTS PROVIDE
GUIDANCE TO THE BUYER AND/OR MAKE RECOMMENDATIONS REGARDING FINANCING DO NOT CREATE AN AGENCY RELATIONSHIP
BETWEEN PURCHASER AND MK.

THE SELLER IS RESPONSIBLE FOR PAYING ALL BROKERAGE COMMISSIONS ASSOCIATED WITH THE SALE OF THE AFOREMENTIONED PROPERTY.


DO NOT CONTACT THE MANAGEMENT OR STAFF OF THE HOTEL. MOLINARO KOGER IS THE OWNER’S EXCLUSIVE ADVISOR FOR THIS
CONFIDENTIAL ASSIGNMENT. ANY AND ALL REQUESTS SHOULD BE DIRECTED TO WILLIAM STADLER OR MARK ROME AT 972-868-9133.
                                                                                          TABLE OF CONTENTS


EXECUTIVE SUMMARY                                                                                                                                  SUMMARY
                                                                                                                                                      M
                                                                                                                                            MARKET SUMM

                                                            ...                                       .............................1
                                                                                                      .
Introduction ....................................................................................................................1 1                Ov               ..                                ....
                                                                                                                                            Market Overview ...........................................................................................................29
                                                            ...                                       .............................2
Investment Highlights .................................................................................................2           2                     ..............
                                                                                                                                                          ............                                 ....
                                                                                                                                            Population........................................................................................................................30
                                                            ...                                       .............................5
Financial Overview .......................................................................................................5        5                      t ...................................................................................................................31
                                                                                                                                            Employment ..........                                      ....
                                                            ...                                       .............................5
Terms of Sale ...................................................................................................................5 5                         ..........
                                                                                                                                                             .........                                 ....
                                                                                                                                            Education ........................................................................................................................32
Aerial Map ........................................................................................................................6
                                                            ...                                                                    6
                                                                                                      .............................6        Tourism ............................................................................................................................33
                                                                                                                                                                                                       ....
                                                                                                                                                                                                       ....
                                                                                                                                            Convention Center........................................................................................................35
                                                                                                                                                                                                       ....
                                                                                                                                            Office Market ..................................................................................................................36
PROPERTY DESCRIPTION                                                                                                                                                                                   ....
                                                                                                                                            Transportation ................................................................................................................38
                                                                                                                                            A tamonte                                                   rv
                                                                                                                                            Altamonte Springs Submarket Overview .............................................................40
                                                                 ...                                       .............................7
Property Overview ........................................................................................................7             7   Altamonte Spri
                                                                                                                                            A           Springs/North Orlando Lo
                                                                                                                                                     te Spr                                             Lodging Market ........................................43
Location ............................................................................................................................8
                                                                 ...                                                                    8
                                                                                                           .............................8
Access & Visibility ....................................................................................................... 10
                                                                 ...                                       .......................... 0
Property Location Map............................................................................................. 11
                                                                 ...                                       .......................... 1     C      T
                                                                                                                                            COMPETITIVE ANALYSIS
                                                                                                                                            COMPETIT
                                                                 ...                 .......................
                                                                                      ...............................................
Design & Layout .......................................................................................................... 12
                                                                 ...                      ...........................................
                                                                                           .........................................
Property Layout .......................................................................................................... 13               Competitive Overview.................................................................................................44
                                                                                                                                              mp
                                                                                                                                            Comp                                                  ....
Meeting Space............................................................................................................. 15
                                                                 ...                                     ..........                     5   Competitive Properties Map .....................................................................................48
                                                                                                                                            Com                                                   ....
                                                                 ...                                                      ....
                                                                                                                            ......... 6
Guestrooms .................................................................................................................. 16            STR Overview ..................................................................................................................49
                                                                                                                                                                                                  ....
Food & Beverage Outlets ......................................................................................... 18
                                                                 ...                                       .
                                                                                                           .......................... 8
                                                                 ...                                       .......................... 9
                                                                                                           .
Food & Beverage Lease ............................................................................................ 19
Fitness Center .............................................................................................................. 20
                                                                 ...                                       .
                                                                                                           .......................... 0     FINANCIAL ANALYSIS
Parking ........................................................................................................................... 20
                                                                 ...                                       .
                                                                                                           .......................... 0
Hotel Amenities, Guest Services & Suite Amenities ....................................... 21
                                                                 ui                                        .
                                                                                                           .......................... 1                    view
                                                                                                                                                           v                                 ....
                                                                                                                                            Financial Overview .......................................................................................................54
Market Segmentation ............................................................................................... 22
                                                                 ...                                       .......................... 2
                                                                                                           .                                               ncial S                           ....
                                                                                                                                            Historical Financial Statements ................................................................................56
                                                                 ...                                       .
Demand Segmentation............................................................................................ 23
                                                                                                           .......................... 3                   nancial                            ....
                                                                                                                                            Pro Forma Financial Statements ..............................................................................57
                                                                 ...                                      ........................... 4
Capital Improvements .............................................................................................. 24
                                                                 ...                                  ..
                                                                                                       .............................. 4
Management/Franchise ........................................................................................... 24
                                                                 ...                       ..........................................
                                                                                           .
Taxes................................................................................................................................ 25
                                                                 ...
Environmental ............................................................................................................. 25
Construction Features .............................................................................................. 27
                                                                 ...
                                                                 ...
Utilities ........................................................................................................................... 27
EXECUTIVE SUMMARY
BACK SIDE OF DIVIDER
Molinaro Koger, as sole and exclusive advisor to FelCor Lodging Trust,         concentration of “Class A” office parks in the Altamonte Springs, Lake
has been retained to market for sale the 277-suite, Embassy Suites Hotel       Mary, Maitland and other North Orlando suburbs. Current ownership
located in Altamonte Springs, Florida (the “Hotel,” “Embassy Suites,” or       invested approximately $6.5 million from 2007-2009 to renovate and
“Embassy Suites Orlando North”).                                               enhance the Embassy Suites, making it one of the premier all-suite
                                                                               hotels in the Orlando market. Additionally, the Hotel is being sold free
The Embassy Orlando North represents an outstanding investment                 and clear of current management and enhanced by the Embassy Suites
opportunity located adjacent to the 25-acre Uptown Altamonte lifestyle         brand affiliation. The Hotel’s central location to transient and corporate
development and proximate to Orlando’s CBD and many of Orlando’s               demand, its recently renovated product and the appeal of the Embassy
largest tourist attractions. The Embassy Suites is surrounded by a large       Suites brand make this an exceptional investment opportunity.




                                                                           1
        INVESTMENT HIGHLIGHTS

        EXCELLENT SUBURBAN ORLANDO LOCATION                                      DIVERSIFIED LODGING MARKET

        •   The Embassy Suites is located in the northern Metro Orlando          •   The Metro Orlando market offers a unique mix of corporate
            suburb of Altamonte Springs within Seminole County, just off             business in the high-tech, medical and bioscience fields along
            Highway 436/Altamonte Springs Road and midway between                    with some of the most heavily visited tourist destinations in the
            downtown Orlando and Daytona Beach.                                      country and a large government sector.

        •   The Hotel is located adjacent to the mixed-use lifestyle             •   Altamonte Springs’ location nearly half way between Orlando
            development of Uptown Altamonte as well as business parks                and the beaches of Daytona allows the Embassy Suites to
            and proximate to leisure attractions including Universal                 benefit not only from Walt Disney World, Universal and other
            Orlando, Disney World, International Drive, Orange County                Orlando attractions but also events such as the Daytona 500
            Convention Center, Amway Arena, and three Orlando area                   and the beaches of Daytona and New Smyrna.
            airports. Specifically, the Hotel is located just eight miles from
            Downtown Orlando, 23 miles from Orlando International
            Airport (MCO) and 28 miles from the Disney parks.                    OUTSTANDING PHYSICAL PRODUCT

        •   The Embassy Suites enjoys a picturesque setting along Cranes         •   The Embassy Suites received approximately $6.5M in
            Roost Lake and only two blocks from the Altamonte Mall. The              renovations between 2007-2009 including upgrades to the
            1.3 million SF Altamonte Mall offers over 180 shops and is               guest suites, guest bathrooms, meeting rooms, public areas
            anchored by Macy’s, Dillard’s, JC Penney and Sears.                      and exterior. Having received substantial capital investment
                                                                                     in recent years, the Hotel is in excellent condition requiring
        •   Uptown Altamonte is the core of a meticulously planned                   nominal renovations upon change of ownership.
            1,375-acre CBD that allows one to work, play and live in a well-
            designed community that has transformed the city from a
            suburban community to a diverse urban and economic center.
            At the heart of Uptown Altamonte is Cranes Roost Lake – where
            the Embassy Suites is situated. The lake and 45-acre Cranes
            Roost Park offers a European-style plaza with choreographed
            music, light and water shows and concerts in the Eddie Rose
            Amphitheater.




EXECUTIVE SUMMARY                                                            2
NOTEWORTHY PERFORMANCE IN LOCAL MARKET                                                          PERFORMANCE COMPARISON
•   The Embassy Suites is ranked first out of eight hotels with respect to                                   YTD October 2010
    RevPAR for the 12 months ending October 2010 and continues to be                               Occupancy        ADR         RevPAR
    one of the premier upscale all-suite properties in the market.            Embassy Suites
                                                                                                     57.5%         $108.16      $62.21
                                                                              Orlando North
•   The Hotel’s success is exemplified by its current penetration levels
    against its competitive set of seven hotels with 1,767 rooms. As of       Competitive Set        53.7%         $94.49       $50.79
    October 2010, the Embassy Suites achieved YTD and Trailing Twelve         Orlando North
                                                                                                     49.6%         $68.92       $34.17
    Month RevPAR penetration levels of 122.5% and 124.5% respectively.        Submarket
    Additionally, the Embassy Suites consistently runs a $15-$20 rate         Orlando, FL            63.4%         $91.61       $58.09
    premium over the competitive set.
                                                                              U.S.                   59.2%         $98.22       $58.13

STRONG BRAND AFFILIATION

•   Embassy Suites is the pre-eminent upscale, all-suite brand - attractive
    to commercial and leisure travelers as well as the group meeting
    market. The success of the brand is driven in part by the two-room
    suites, complimentary cooked-to-order breakfast and evening
    manager’s reception, the tropical atrium and participation in the
    Hilton Honors frequent guest program. Penetration levels against its
    competitive set typically exceed its fair share during both weekdays
    and weekends.

•   With more than 200 locations and 50,000 rooms in the United
    States, Canada and Latin America, Embassy Suites has helped
    create the all-suite segment of the lodging industry and maintains
    the commanding presence in this segment in terms of system size,
    geographic distribution, brand-name recognition and operating
    performance. Furthermore, in 2009 J.D. Power and Associates rated
    Embassy Suites Hotels “Highest Guest Satisfaction Among Upscale
    Hotel Chains” for an record breaking eighth time.




                                                                   3
 VALUE ENHANCEMENT OPPORTUNITIES                        CONTINUED DEVELOPMENT IN
                                                        ALTAMONTE SPRINGS
 •   The Hotel is being sold unencumbered by
     management. It is currently managed by             •   The continued development of Uptown
     Hilton Worldwide’s Embassy Suites Division.            Altamonte and surrounding office parks will
     A new owner will have the opportunity to               bolster the Embassy Suites’ performance
     implement a more aggressive sales and                  via an increase in transient and corporate
     marketing campaign to regain past revenue              business. Three pad sites remain in Uptown
     levels and implement cost control measures             Altamonte and are entitled for residential,
     to increase profitably. With the addition              high-rise condos and retail establishments.
     of a solid base of group business, new
     management is projected to increase yield          •   Redevelopment of the Centerpoint Office
     to achieve a higher RevPAR – comparable to             Park and additional vacant land on the
     past performance.                                      northern side of Cranes Roost Lake will
                                                            enhance the amount of Class A office space in
 •   A new owner has the opportunity to                     the Hotel’s immediate market. Based on the
     terminate the food and beverage lease with             Embassy Suites’ proximity and accessibility
     Culinaire (the current food and beverage               via the walkway over Cranes Roost Lake, the
     operator) and assume control of the food               Hotel will benefit from an increased corporate
     and beverage service at the Hotel. Property            presence.
     management estimates the new owner
     could generate up to $500,000 in increased
     profit by self- management of the food and
     beverage services. Additionally, a new owner       DISCOUNT TO REPLACEMENT COST
     could potentially contract with the City
     of Altamonte Springs to handle food and            •   The Embassy Suites can be acquired at a
     beverage service for the numerous events               significant discount to replacement cost.
     in Uptown Altamonte and the outdoor                    A similar structure would cost in excess of
     amphitheatre on Cranes Roost Lake.                     $200,000 per key to develop.

 •   Market fundamentals are strengthening.
     During 2008 and 2009, the hotel industry
     endured one of the worst recessions in U.S.
     history. This recession has lead to the decrease
     of business and leisure travel; however, as
     the economy begins to recover and business
     and leisure travel return, new ownersip will
     be well positioned to take advantage of the
     upside performance. By investing in the
     Embassy Suites Orlando North in a recovering
     market, a new owner will have a significantly
     lower investment basis and potentially strong
     equity returns year-over-year.



EXECUTIVE SUMMARY                                                              4
                      FINANCIAL OVERVIEW
                                                                            FINANCIAL SUMMARY
                                                   Year End 2007             Year End 2008    Year End 2009   TTM October-10   Actual/Forecast 2010*
Occupancy                                              76.1%                     72.0%            60.6%           57.0%                56.7%
ADR                                                   $117.31                   $121.17          $113.74         $107.96              $107.61
RevPAR                                                 $89.31                    $87.21           $68.93          $61.56              $61.04
Total Room Revenue                                   $9,029,568                $8,841,442       $6,968,828      $6,224,447          $6,171,511
Total Revenue                                        $9,336,328                $9,167,319       $7,301,793      $6,474,150          $6,411,000
EBITDA                                               $2,638,820                $2,623,903       $1,764,441      $1,280,798          $1,173,249
Adjusted EBITDA**                                    $2,445,161                $2,443,817       $1,621,732      $1,137,400          $1,027,146
Net Operating Income                                 $2,265,367                $2,257,210       $1,472,369      $1,021,832           $916,809
Adjusted Net Operating Income**                      $2,081,708                $2,077,125       $1,621,632       $878,434            $770,706
NOI Profit Margin                                       24.3%                        24.6%        20.2%           15.5%               14.3%
Adjusted NOI Profit Margin**                            22.3%                        22.7%        18.2%           13.6%               12.0%
Total Room Revenue per Room                            $32,598                      $31,919      $25,158         $22,577             $22,803
Total Revenue per Room                                 $33,705                      $33,095      $26,360         $23,504             $23,684
* Includes actual financials thru October and Forecast for the remainder of 2010.
** Includes Franchise Royalty Fee and Management Fee adjustments.




TERMS OF SALE
Price:                             Competitive offers requested

Capitalization:                    All cash, no assumable debt

Management:                        Free and clear of management

Franchise:                         Sale subject to Embassy Suite brand affiliation

Ownership Interest:                Fee Simple



                                                                                       5
AERIAL MAP



                                                        Majesty
                                                        Building


                                                                                            Centerpointe II



                                                                                             Centerpointe I

             Emerson Plaza
                                               Centerpointe
                                                Office Park




                                                     Cranes Roost Lake




                                                                         Uptown Altamonte




                         Altamonte Drive




                                           6
PROPERTY DESCRIPTION
BACK SIDE OF DIVIDER
                         PROPERTY OVERVIEW
Guestrooms:                 277 suites

History:                    Originally opened as the Park Suites in 1985 with
                            210 suites

Conversion/Expansions:      Converted to Embassy Suites in 1991; In 1998,
                            67 suites were added in attached Palm Building

Configuration:              Seven-story Atrium Building with guestrooms
                            surrounding heavily landscaped atrium; four-story
                            interior corridor Palm Building. All guest suites are
                            a “shotgun” style configuration.

Land Area:                  ± 5.0 acres (Fee)

Meeting/Conference Space:   7,068 SF of meeting space in six meeting/conference
                            rooms highlighted by the following:
                             - 5,206 SF Regency Ballroom (Divisible by four)
                             - Two meeting rooms - Florida and Volusia - 1,400 SF
                               and 462 SF, respectively

Food & Beverage:            •   Omaha Steak House (Leased)
                            •   Complimentary cooked-to-order breakfast and
                                evening manager’s reception
                            •   Room Service

Additional Facilities:      •   Two-room suites with separate living room
                            •   Suites feature two 27” LCD flat-screen televisions,
                                refrigerator, wet bar with microwave, coffeemaker
                                and two telephones
                            •   Indoor heated pool, whirlpool and sauna
                            •   Renovated fitness center with Precor equipment
                            •   Business center
                            •   Complimentary transportation
                            •   Concierge kiosk
                            •   Guest laundry
                            •   Gift Shop (leased)
                            •   Budget car rental desk
                            •   ATM machine                            7
   LOCATION
   Embassy Suites Orlando North
   255 Shorecrest Drive
   Altamonte Springs, Florida 32701

   The Embassy Suites Orlando North is ideally located in Altamonte Springs just off
   Altamonte Drive (FL-436) and less than one mile east of Interstate 4. Its location within           Local Businesses/Office Parks Proximate to Hotel
   the 25-acre Uptown Altamonte lifestyle development places the Embassy Suites in the         Company                                  Miles to/from Hotel
   middle of several multi-tenant office buildings, residential condominium buildings
   along with retail and entertainment destinations.                                           Altamonte Lakeside Office Park                Adjacent
                                                                                               Lucent Training Center                           0.5
   The major Orlando suburbs surrounding the Embassy Suites include Altamonte                  Center Point Office Park                         1.0
   Springs, Maitland, Apopka, Winter Park, and Lake Mary. These areas and surrounding
                                                                                               Verizon Wirless                                  1.0
   towns comprise what is known as the “Orlando North” submarket.
                                                                                               Centerpoint I-II Office Buildings                1.5
   The Embassy Suites Orlando North is ideally located to capture demand from local            EMBARQ/Nextel (Altamonte)                        1.5
   businesses, transient travelers, and leisure travelers visiting the greater Orlando area.   Sprint                                           1.5
   The Hotel’s location near key corporate demand generators and several office parks          ASSA Abloy                                       1.5
   including Altamonte Lakeside Office Park and Center Pointe Office Park makes it ideal
                                                                                               Integrated Business Group                        2.0
   for weekday corporate, weekend corporate/leisure, conferences, training seminars
   and corporate meetings. Additionally, the Hotel is directly adjacent to the 1.3 million     Florida Hospital                                 2.0
   square foot Altamonte Mall anchored by Sears, Macy’s, Dillard’s, JC Penny’s and the 18      Charles Schwab                                   2.5
   screen AMC Movie Theater.                                                                   ATT                                              2.5
                                                                                               Avaya                                            3.0
   Cranes Roost Park is located at the heart of Uptown Altamonte surrounding Cranes
   Roost Lake. The lake is encircled by one mile of continuous walkways with benches           Institute of Internal Auditors                   4.0
   and covered seating areas. Within the 45-acre park is a European-styled plaza which         Toptech Systems                                  5.0
   includes choreographed fountain shows and a 62’ picturesque limestone clad tower as         CNA                                              5.0
   well as the Eddie Rose Amphitheater with stadium seating and a one-of-a-kind floating
                                                                                               EMBARQ (Maitland)                                5.0
   stage.
                                                                                               FedEx                                            5.0
                                                                                               Maitland Center Office Park                      5.0
                                                                                               Centex Homes                                     7.0
                                                                                               Cingular                                         7.0
                                                                                               Embarq (Apopka)                                  7.0
                                                                                               Heathrow/Lake Mary Business Park                 7.0
                                                                                               IBM                                              7.0
                                                                                               MTRON PTI                                        7.0
                                                                                               Siemens                                          7.0
                                                                                               Coca Cola                                        8.0
                                                                                               Fiserv                                          12.0


PROPERTY DESCRIPTION                                                             8
In addition to being situated proximate to local corporate and leisure demand                          Major Attractions/Demand Generators
generators, the Hotel is located within a short drive to many of greater
Orlando’s major leisure attractions. The following table lists several attractions   Attraction                                         Miles to/from Hotel
and demand generators and their respective distance to the Embassy Suites            Uptown Altamonte                                        Adjacent
Orlando North.
                                                                                     Lifestyle Fitness                                       Adjacent
                                                                                     Cranes Roost Park                                       Adjacent
                                                                                     Altamonte Shopping Mall                                 Adjacent
                                                                                     Merrill Park                                               2.0
                                                                                     RDV Sports Complex                                         4.0
                                                                                     Seminole Softball Complex                                  4.0
                                                                                     Bob Carr Auditorium                                        7.0
                                                                                     Orlando Science Center                                     7.0
                                                                                     Citrus Bowl                                                8.0
                                                                                     Downtown Orlando                                           8.0
                                                                                     Mall at Millenia                                          10.0
                                                                                     Seminole Sports Training Center/Sylvan Park               12.0
                                                                                     Sanford International Airport                             14.0
                                                                                     University of Central Florida                             16.5
                                                                                     Universal Orlando                                         18.0
                                                                                     International Drive                                       18.0
                                                                                     CityWalk                                                  18.0
                                                                                     Wet 'n Wild Water Park                                    18.0
                                                                                     Universal Islands of Adventure                            18.5
                                                                                     Orange County Convention Center                           20.0
                                                                                     SeaWorld Florida                                          22.0
                                                                                     Orlando International Airport (MCO)                       23.0
                                                                                     Gatorland                                                 26.0
                                                                                     Typhoon Lagoon                                            27.5
                                                                                     Epcot Center                                              28.0
                                                                                     MGM Studios                                               28.0
                                                                                     Walt Disney World                                         28.0
                                                                                     Disney's Animal Kingdom                                   28.0
                                                                                     Disney's Hollywood Studios                                30.0
                                                                                     Blizzard Beach                                            30.0
                                                                                     Daytona Beach                                             45.0
                                                                                     New Smyrna Beach                                          45.0
                                                                                     Kennedy Space Center                                      60.0

                                                                        9
   ACCESS & VISIBILITY
   Access to the Hotel is excellent from major thoroughfares including Interstate
   4 (I-4) and Altamonte Drive (FL-436) as well as other surrounding roadways
   throughout the Orlando North submarket.

   •   I-4 is the major north/south thoroughfare beginning at I-95 near Daytona
       Beach and terminating in Tampa. The Embassy Suites’ seven-story building is
       highly visible from I-4 in proximity to Exit #92.

   •   Altamonte Drive/Semoran Boulevard (FL-436) is also a major roadway in
       Orlando beginning west of the Hotel in Apopka and terminating at the
       Orlando International Airport (MCO).

   Guests access the Hotel from either the east or west from FL-436 via North Lake
   Boulevard and turn left onto Shorecrest Drive.

   Located on Shorecrest Drive, the seven-story Hotel offers good visibility from within
   the Uptown Altamonte development and surrounding office parks. Additionally,
   the Hotel has excellent visibility from north and southbound Interstate 4.




PROPERTY DESCRIPTION                                                              10
PROPERTY LOCATION MAP                                                                                                 Kelly Pa                                                                                                                                                                                                                                                                                      Lake Mary Blvd




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                                                                                                                                                                                                                                                                                                                                                                Ma itla nd Ave
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                                                                                                                                                                                                                                                                                                                         11
   DESIGN & LAYOUT
   The Embassy Suites Orlando North consists of a seven-story guest tower
   (210 suites) with a traditional interior-style atrium at its core and a four-
   story (67 suites) interior corridor addition called the Palm Building. The
   Palm Building connects to the main Hotel Atrium Building near the
   breakfast and reception area. The four-story addition houses a separate
   lobby and a rental car desk.

   Guests enter the Hotel under a port cochere into a foyer where the
   front desk and lobby are found. Beyond the foyer, guests immediately
   enter the atrium area to access the four passenger elevators. Meeting
   space and the business center are located on the perimeter of the
   atrium. Within the atrium’s ground floor, guests find the breakfast and
   manager’s reception seating area, gift shop, as well as the Omaha Steak
   House restaurant.

   The guest suite tower wraps around the atrium in a diamond shape. Each
   standard suite has a “shotgun” layout with a living room/entertainment
   area upon entry, an appropriately sized bathroom, and separate
   bedroom space. Suites offer windows in the living area that provide
   light from the atrium while bedroom windows face the outside. The
   recently renovated pool, whirlpool, sauna and fitness center area are all
   located on the first floor. Surface parking is ample with 285 spaces and
   direct access to the Hotel.




PROPERTY DESCRIPTION                                                               12
PROPERTY LAYOUT



                        Restrooms
                                            Meeting Room\ Ballroom
                        Gift Shop




                                                                                                                              EXIT
                                                                                 Kitchen/Service Area/
                                                                                                                                     151   150    149   148
 Sun Deck
                                     ELEV           ELEV
     Omaha Steakhouse




                                                                                       Load Dock
                                                                                                                                           147

                                                                                                                                           146
   Mtg
   Rm




                                                                                                                                           145
                                            A
                                            t
                                                                                                                                           144
    Lobby




                                            r               Complimentary
                                            i               Breakfast & Bar                                            ELEV                Rear
                                            u                                                                          ELEV                Exit
                                                                               Pool
                                            m
  Admin.
  Office




                                                                                                                                           143

                                                                                                                                           142
   Business
    Center




                                                                                                                      Car                  141
                                                                                                                     Rental
                                     ELEV           ELEV
   Restrooms
    Vending/




                                                                                                                                           140


                                                                                                         Restrooms
                                                                              Fitness
                                    Meeting Room\Ballroom
                                                                              Center                                   Rear



                                                                                                                              EXIT
                                                                                                                                     136   137    138   139
                                                                                                                       Exit




                                                            13
14
MEETING SPACE
The Embassy Suites Orlando North has 7,068 square feet of premium             of the demand at the Embassy Suites. Additionally, the Hotel offers six
meeting space spread over six meeting rooms. The Hotel’s Regency              conference suites located in both the Atrium and Palm Buildings, which
Ballroom is divisible into four sections providing breakout rooms             are not included in the total square footage of meeting space.
and private meeting areas. Additionally, the Hotel uses its expansive
atrium and complimentary service areas as pre-function, breakout and          The following table and diagram detail the meeting space available at
luncheon space. The Hotel’s meeting space is well-configured to attract       the Hotel.
a significant level of group business of varying size – accounting for 25%

                                                           MEETING SPACE (SIZE AND CAPACTIY)
 Room                          SF            Dimensions           Ceiling        Banquet          Reception           Theater         Classroom
 Regency Ballroom            5,206            38' x 137'            10             320               400                450               240
    Seminole                 2,053                 --               11             110               175                125                80
    Orange                   1,102             38' x 29'            11              60                75                100                60
    Lake                     1,102             38' x 29'            11              60                75                100                60
    Citrus                    950              38' x 25'            11              60                75                100                50
 Florida Room                1,400            56' x 25'             10             100               100                150               80
 Volusia                      462              33' x 14’             8              20                20                 40                24
 Total                       7,068                                                           --




                                                                     15
   GUESTROOMS
   The Embassy Suites features 277 two-room guest suites in a front-to-back (shotgun) layout
   and average 406 square feet. The typical guest suite bay measures approximately 29’ x 14’
   and features a separate living room with wet bar and a bedroom with vanity sink. The living
   room is comfortably appointed with a sleeper sofa, armchair, activity table and 27” flat screen
   LCD television. The wet bar offers a microwave, sink, small refrigerator and coffee maker. The
   bedrooms include either one king bed or two double beds, second vanity and armoire/closet
   with 27” flat screen LCD television. Additional suite amenities include iron/ironing board,
   wireless high-speed Internet and AM/FM alarm clock. Approximately 150 suites (54%) feature
   balconies with sliding glass or French doors.

                                  GUESTROOM CONFIGURATION
    Room Type                                               Count                   Percent
    Atrium Building
      King Suites                                            125                     45%
      Double/Double Suites                                    82                     30%
      King Conference Suites                                   3                     1.0%
    Subtotal                                                 210                     76%
    Palm Building
      King Suites                                             35                     13%
      Double/Double Suites                                    30                     11%
      Double/Double Conference Suites                          2                    0.5%
    Subtotal                                                  67                     24%
    Total                                                    277                    100%

   The Hotel has received approximately $6.5 million in renovations from 2007-2009. Approximately
   $3.6 million was spent in the guest suites and guest baths including carpeting, case goods, flat
   screen televisions and wet bars. Additionally, suite beds were replaced in 2005 along with soft
   goods.




PROPERTY DESCRIPTION                                                           16
17
   FOOD & BEVERAGE OUTLETS
   The Hotel offers an Omaha Steakhouse with bar and room service. Hotel catering is also available for guests utilizing the meeting space. As a brand
   standard, the Hotel offers a complimentary Cooked-to-Order Breakfast and nightly Manager’s Reception.

   The following provides a description of each food and beverage outlet:



   Complimentary Cooked-to-Order Breakfast: The complimentary
   cooked-to-order breakfast is offered daily in the Hotel’s atrium. Hours of    Omaha Steakhouse: The 105-seat Omaha Steakhouse is the Hotel’s
   operation are Sunday through Saturday 6:30 AM – 9:30 AM.                      full service restaurant located on the first floor proximate to the front
                                                                                 entrance. Open for lunch and dinner, patrons are offered premium
   Manager's Reception: The Hotel offers a complimentary nightly                 quality corn-fed beef and ocean fresh seafood dishes. The restaurant is
   Manager’s Reception in the atrium featuring a variety of beverages and        leased which can be terminated on sale.
   snacks. Hours of operation are Sunday through Saturday 5:00 PM – 7:00
   PM.                                                                           Room Service: Room service is available from 11:00 AM -11:00 PM daily.

   Food and beverage service at the Hotel is operated by Culinaire through a long term lease agreement contract. A new owner has the ability to terminate
   Culinaire and potentially increase the profitability of the food and beverage department over the current annual lease payment. An abstract of the lease
   can be found below.




PROPERTY DESCRIPTION                                                            18
FOOD & BEVERAGE LEASE
Landlord:            DJONT Operations, L.L.C.

Tenant:              Culinaire of Florida, Inc.

Commencement Date:   September 22, 2000

Initial Term:        5 Years

Option to Extend:    Option to extend “Initial Term” of Lease for 2 successive 5
                     year terms
                     •   Second Renewal Term of 5 years extended November
                         14, 2010, expiring November 13, 2015

Expiration Date:     September 22, 2015

Rent:                Percentage Rent of Annual Gross Revenues (AGR)

                     •   3.5% of AGR less than $1.2M, plus
                     •   5% of AGR in excess of $1.2M, but less than or equal to
                         $1.5M, plus
                     •   5.5% AGR in excess of $1.5M but less than or equal
                         $2.0M, plus
                     •   6.0% AGR in excess of $2.0M but less than or equal
                         $2.5M, plus
                     •   7.0% AGR in excess of $2.5M but less than or equal
                         $3.0M, plus
                     •   8.0% AGR in excess of $3.0M

Early Termination:   Terminable upon Sale




        19
   FITNESS CENTER
   The Embassy Suites offers an appropriately sized fitness center
   that was upgraded in 2007. The 544 SF amenity features five
   Precor cardiovascular machines with flat screen televisions
   including two treadmills, two elliptical trainers and one
   stationary bicycle. The fitness center also includes free weights,
   weight bench, balance ball and medicine balls. Additionally, the
   Hotel has an agreement with Lifestyle Fitness that allows guests
   seeking a more complete exercise outlet access to the Lifestyle
   Fitness facility adjacent to the Hotel.




   PARKING
   The Embassy Suites has +/- 285 surface parking spaces
   surrounding the Hotel. The Hotel does not charge for parking.




PROPERTY DESCRIPTION                                                    20
HOTEL AMENITIES, GUEST SERVICES & SUITE A MENITIES
                   Hotel Amenities & Guest Services                                               Suite Amenities
•   105-seat Omaha Steakhouse                                        •   All-suite property with separate sleeping and living areas
•   Room service                                                     •   Sleeper sofa
•   7,068 square feet of meeting space with six meeting rooms        •   Alarm clock radio with MP3 connection
•   Indoor heated pool and whirlpool                                 •   Wireless Internet
•   Sauna                                                            •   Two 27” LCD flat screen televisions
•   Fitness room                                                     •   Mini-refrigerator
•   Business center                                                  •   Microwave oven
•   Complimentary Cooked-to-Order Breakfast                          •   Coffee maker/tea service
•   Nightly Manager’s Reception                                      •   Two telephones with data ports
•   Gift shop (leased)                                               •   Lit dining/work table
•   Safety deposit box                                               •   Iron and ironing board
•   Local area transportation                                        •   Hair dryer
•   Laundry/valet service
•   ATM
•   Guest Laundry
•   Wireless internet




                                                                21
   M ARKET SEGMENTATION
   The Embassy Suites market segmentation and corresponding average daily rate for 2007 - 2009 is presented in the following table. The Embassy
   Suites has begun to improve its share in the Local Negotiated segment of its business and has seen increased government business as the market
   has returned to positive growth trends. Overall, the Hotel benefits from a broad base of business in all demand segments with no single account
   contributing more than 3% of the Hotel’s room nights sold.
                                                    2007                                 2008                                  2009
    Type                               Nights         %          Rate       Nights        %           Rate       Nights         %          Rate
    BAR                                 16,710      21.3%      $139.16      15,237      20.7%       $145.16      11,021       17.8%       $135.48
    Consortia                            3,170       4.0%      $143.95       2,968       4.0%       $147.23       2,197        3.6%       $140.59
    Corporate Negotiated                 8,573      10.9%       $98.65       7,871      10.7%       $104.31       6,179       10.0%       $109.29
    Local Negotiated                     4,799       6.1%      $109.72       4,577       6.2%       $116.80       4,590       7.4%        $116.44
    Government                          4,821       6.1%       $99.60       7,130       9.7%         $99.46        617        10.7%        $97.75
    Corporate Marketing Programs         3,309       4.2%      $108.10       3,360       4.6%       $123.33       2,868        4.6%       $114.83
    Other Discounts                     16,028      20.4%      $118.87      13,834      18.8%       $114.10      13,067       21.2%       $102.02
    Individual Tour Wholesale             0           --          --           4         0.0%       $113.61         25        0.0%        $123.67
    Convention/Association              6,179       7.9%        $99.84       4,619       6.3%       $104.25       4,574       7.4%        $103.61
    SMERF                               8,607       11.0%      $111.13      10,088      13.7%       $121.39       8,045       13.0%       $113.96
    Company Meetings                    4,630       5.9%       $116.81      3,281        4.5%       $124.18       2,086       3.4%        $118.70
    Group Tour                           146        0.2%        $90.99         0           --          --           0           --           --
    Comp                                1,565       2.0%          --         715         1.0%          --          477        0.8%           --
    Total                              78,537       100%       $114.97      73,684      100%        $119.99      61,746       100%       $112.86




PROPERTY DESCRIPTION                                                         22
DEMAND SEGMENTATION
Market demand segmentation data for the Hotel was based on information                   Group 25%
provided by property management. Below is the market mix for the Embassy
Suites Orlando North which has been fairly consistent year-over-year.

                  Transient                        75%
                    Corporate              60%
                     Leisure               40%

                  Group                            25%
                                                                                                     Transient 75%

                  Total                            100%



Transient demand is comprised of both corporate and leisure business.

    Corporate demand makes up 60% of the total transient business and is
    comprised of local corporate businesses that utilized the Embassy Suites for
    its convenient location. This demand segment consists of people visiting area
    companies and organizations for purposes of training, distribution, relocation,
    and sales meetings. The Hotel’s proximity to several business parks including
    Altamonte Lakeside Office Park, Maintland Office Park, Centerpointe Office
    Park as well as the stand alone office buildings of Centerpointe I, II and III
    make it a convent location for corporate travelers.

    Leisure demand is composed primarily of individual leisure guests traveling
    to the area. This demand is generated by various sources including visitors
    to the local Orlando market, various educational institutions and events and
    festivals that are regularly organized in the area. Additionally, leisure demand
    is generated as a result of the Hotel’s proximity to Disney tourist attractions as
    well as Daytona Beach.

Group demand is comprised of corporate and leisure negotiated rates for
businesses, associations, sports teams, weddings, reunions and large events such
as the Daytona 500. The Hotel continuously works with the CVB to be the host
hotel of local sporting events and SMERF groups given its location in Uptown
Altamonte. The Hotel’s proximity to the business parks mentioned above also
enables the Hotel to negotiate favorable group rates, sell local meeting space and
capture training events. The Hotel is an ideal destination for group tours as its
central location is a “stopping point” on the return trip from Orlando attractions.
Historically, the Hotel has also experienced some marginal compression from the
Orange County Convention Center.


                                                                      23
   CAPITAL IMPROVEMENTS
   The property has been owned by Felcor Lodging Trust since 1991 and has received substantial capital investment.
   The Hotel is in excellent condition requiring modest renovations upon change of ownership. The Embassy Suites
   received approximately $6.5M in renovations between 2007-2009 including improvements to the guest suites,
   bathrooms, meeting rooms, public areas and exterior improvements.

   The table below highlights the major capital improvement projects from 2007-2009:


                                       Select Capital Expenditures 2007-2009

    Area                                                   Item                                   Amount
                             Major renovation including: case goods, soft goods, flat screen
    All Guest suites         televisions, vanity, carpet, lighting, wall-covering, artwork and   $3,589,383
                             soft seating
    Elevators                Elevator modernization/upgrades                                      $373,277
    Fire & Life Safety       Alarm panel                                                          $347,333
    Exterior                 Parking seal, landscape and lighting                                 $336,354
    Restaurant/Lounge        Millwork, FF&E and flooring                                          $170,398
    Exterior                 Waterproof, paint and seal                                           $146,029
    Public Restrooms         Flooring and wall finishes                                            $81,999
    Fitness Center           Equipment, lighting, renovation                                       $80,436
    Operating System         High speed internet upgrade                                           $67,762
    Comp Area                Floor tile                                                            $46,914
    Lobby                    FF&E - seating                                                        $39,469
    Business Center          Finishes and FF&E                                                     $33,120
    Exterior                 Signage                                                              $30,000
    Meeting Space            Wall finish and doors                                                 $21,104


   MANAGEMENT/FRANCHISE
   The Hotel is currently managed by Hilton Hotels Worldwide. A new owner will have the opportunity to acquire the Hotel
   free and clear of the management and enter into a new 10-year franchise agreement with Embassy Suites subject to the
   completion of a change-of-ownership PIP.




PROPERTY DESCRIPTION                                                           24
TAXES
The Embassy Suites Orlando North is located at 225 Shorecrest Drive in Altamonte Springs,
Florida (Parcel ID # 14-21-29-300-005D-0000). The various taxing authorities include County
General Fund, Schools, Fire, City of Altamonte, Saint Johns Water Management, and County
Bonds. For 2010, the combined tax rate is $18.4818/$1000 of assessed value. Current (2010)
assessed value is $13.366 million generating a tax liability of $247,027.



                                           REAL ESTATE TAXES

           Tax Year               Taxable Value        Millage (Tax Rate)   Tax Amount
             2010                  $13,365,937              18.4818          $247,027
             2009                  $19,720,059              18.1490          $357,899
             2008                  $20,006,928              17.5843          $351,808
             2007                  $19,690,994              17.0959          $336,635
    Source: Seminole County Tax Assessor



                                       TANGIBLE PROPERTY TAXES

           Tax Year               Taxable Value        Millage (Tax Rate)   Tax Amount
             2010                       N/A                   N/A              N/A
             2009                     $878,351              18.1490          $15,487
             2008                     $891,159              17.5843          $15,670
             2007                     $955,819              17.0959          $16,341
    Source: Seminole County Tax Assessor




ENVIRONMENTAL
Neither the Owner nor their advisor make any representations or warranties regarding the
environmental condition of the Embassy Suites Orlando North. All prospective purchasers
are encouraged to perform an independent environmental inspection of the property.




                                                  25
26
CONSTRUCTION FEATURES
Zoning:                    Altamonte Springs Zoning - MOC-3          Laundry Facilities   Washers: Four Unimac washers
                           Mixed Office Commercial                                        Dryers: Four Unimac dryers

Structure:                 203,474 SF contained in the seven-story   HVAC System:         Public Area: Roof top HVAC units
                           Atrium Building and four-story Palm                            Guestrooms: 4-pipe system
                           Building
                                                                     Utilities
Corridors:                 Interior
                                                                     Water:               City of Altamonte Springs
Foundation and Footings:   Concrete slab on grade
                                                                     Sewer:               City of Altamonte Springs
Frame:                     Concrete block
                                                                     Electric:            Florida Power
Flooring:                  Poured concrete between floors
                                                                     Natural Gas:         Teeco
Exterior Walls:            Atrium Building: Concrete
                           Palm Building: Stucco

Roof:                      Flat asphalt roof with rubber membrane
                           replaced in 2002

Windows:                   Double pane with aluminum frame

Life Safety System:        The property is equipped with a central
                           panel, sprinkler system throughout
                           the Hotel, hard-wired smoke detectors
                           throughout the Hotel and fire
                           extinguishers on all floors.

Elevators:                 Atrium Building:
                           Four (4) hydraulic guest elevators
                           (3,000lb capacity) modernized in 2008

                           Palm Building:
                           Two (2) hydraulic guest elevators
                           (3,000lb capacity)

Parking:                   ±285 surface parking spaces



                                                         27
28
MARKET SUMMARY
BACK SIDE OF DIVIDER
MARKET OVERVIEW
 The market area encompassing the Hotel is broadly defined as the Orlando-    Orlando continues to be named one of the best places in the country to
 Kissimmee Metropolitan Statistical Area (“Metro Orlando” MSA). The MSA       do business. Additionally, Orlando was recently ranked 1st in the United
 is the third most populated metropolitan region in Florida and contains      States as the “Number One City for Entrepreneurs”, one of “Hottest Large
 the 27th largest metro area in the United States. The MSA consists of four   Cities for Doing Business”, and Global Insight says Orlando will be the #1
 counties: Lake, Osceola, Orange and Seminole Counties. Specifically, the     city for job growth from 2007–2012.
 Hotel is located in Seminole County, Florida.
                                                                              Orlando has major offices of each of the four branches of the US Armed
 Metro Orlando has a population of 2,077,969 according to the Metro           Forces. Fiscal Year 2011 federal per diem rates for the Altamonte Springs
 Orlando Economic Development Commission 2009 population estimate.            area, which took effect on October 1, 2010, are $80 for lodging and $61 for
 Orlando ranks as the fourth most popular city in the United States based     meals and incidental expenses. Continued government spending in the
 on where people want to live, according to a 2009 Pew Research Center        Homeland Security and Defense Department helps support the Orlando
 study.                                                                       economy during slow economic times. The popularity of Orlando by
                                                                              government, business and leisure travelers alike makes the area a very
 Orlando is home to the headquarters of five Fortune 1000 companies:          attractive destination.
 Darden Restaurants, International Assets Holding, Harris Corporation,
 Airtran Holdings, and Tupperware Brands. In addition, Orlando houses         Tourism is a major part of the Orlando economy. In 2009, Orlando saw
 operations for several other Fortune 1000 companies including Lockheed       $27.6 billion in visitor spending injected into the economy due to domestic
 Martin, Agere Systems Inc., Hughes Supply, Mitsubishi Power Systems Inc.     and international tourism. Additionally, tourism accounts for nearly
 and Westinghouse Power Corporation.                                          380,000 jobs (31% of total employment) in the Orlando area. Orlando is
                                                                              home to a wide variety of tourist attractions including Walt Disney World,
 Boasting a $13.4 billion technology sector, the area's economic base         Universal Studios and SeaWorld. Walt Disney World is the area's largest
 is highly diversified with close to 53,000 people in such high tech          attraction with its many parks such as the Magic Kingdom, Epcot, Disney's
 industries as digital media, modeling, simulation and training, optics and   Hollywood Studios, Disney's Animal Kingdom, Typhoon Lagoon, Blizzard
 photonics, aviation/aerospace, homeland security/defense, information        Beach and Downtown Disney.
 technology, agri-technology, energy, life sciences, and biotechnology.




                                                                       29
POPULATION
The Embassy Suites Orlando North is situated in the northern suburbs of Metro Orlando within the governing area of Seminole County,
specifically Altamonte Springs. Population growth from 1990 through 2000 in Florida was booming due to new development and relocation
of retiring baby boomers. Population growth for the Metro area is beginning to slow and return to more normal levels due to the impact of
the recent economic recession, however, the projected growth of the Metro Orlando area is expected to be 13.4% from 2009 – 2014.



                                                     Population Trends (In Thousands)

                                            1990        2000                2009                2010(1)         % Increase 1990-2000
 Altamonte Springs                        36,943        42,200             42,106                 41,903                14.2%
 Seminole County                         291,169       367,209            414,064                425,746                27.0%
 Metro Orlando                          1,224,844     1,656,835          2,082,421              2,361,955               35.3%
 State of Florida                      13,033,307    16,047,246         18,537,969             20,260,023               23.1%
 United States                         249,622,814   282,171,936        307,006,550           321,000,000               13.0%
 (1) Projected
 Source: US Census Bureau, Population Division




MARKET SUMMARY                                                            30
EMPLOYMENT
Metro Orlando is a major industrial and hi-tech center with a $13.4 billion technology industry employing more
than 53,000 people. In addition to industrial and technology industries, the area is home to companies in a
wide array of disciplines including retail trade, transportation, engineering, professional services, finance, and
hospitality. Orlando has the 7th largest research park in the country - Central Florida Research Park with over
1,027 acres. It is home to 116 companies, employs more than 9,500 people, and is the hub of the nation’s military
simulation and training programs. Additionally, Metro Orlando is home to two Fortune 500 companies: Darden
Restaurnats (Orlando) and International Assets Holding (Altamonte Springs) and three Fortune 1000 companies.

The following table indicates the top 10 employers in the Metro Orlando area:


                                              Metro Orlando Top 10 Employers

 Company                                                 Employees   Industry
 Walt Disney Company                                      62,000     Leisure & Hospitality
 Florida Hospital (Adventist Health Systems)              16,002     Health Care & Social Assistance
 Publix Super Markets Inc.                                15,606     Retail Trade
 Universal Orlando                                        13,000     Leisure & Hospitality
 Orlando Regional Healthcare System                       10,000     Health Care & Social Assistance
 Busch Entertainment Corporation                           7,800     Leisure & Hospitality
 Lockheed Martin Corporation                               7,200     Professional, Scientific & Technical Services
 Marriott International                                    6,312     Leisure & Hospitality
 Central Florida Investments                               6,155     Real Estate & Leasing
                                                                     Accommodation & Food Service,
 Darden Restaurants Inc.                                   5,950
                                                                     Management of Companies
 Source: Metro Orlando Economic Development Commission




                                                                       31
EDUCATION
The Metro Orlando area is home to more than 35 post-
                                                                           Largest Metro Orlando Universities/Colleges (by number of students)
secondary educational institutions that generate a steady
flow of highly educated employees and entrepreneurs to           Institution                                            Location                # of Students
the area. The University of Central Florida (UCF) is the sixth
largest university in the United States and its College of       Valencia Community College                   Orlando, FL (various locations)      30,245
Business Administration has been ranked as one of the            University of Central Florida                         Orlando, FL                 46,646
largest business schools in the nation. UCF is located 16.5      Seminole Community College                   Seminole County (4 locations)        11,655
miles from the Embassy Suites Orlando North.
                                                                 Rollins College                                     Winter Park, FL               3,478
                                                                 Source: Metro Orlando Economic Development Committee
The table to the right highlights some of the largest and
most well known universities in the area:




                                                                                                                                                Valencia Community College




                                                                 University of Central Florida                                                  Seminole Community College




MARKET SUMMARY                                                                  32
TOURISM
Tourism is the foundation of the Metro Orlando economy. Walt Disney
World, Universal Studios Orlando, Sea World, Wet ‘n Wild, and numerous
smaller theme parks and leisure facilities have turned Metro Orlando into
one of the world’s most popular destinations. Over 45 million people visit
Orlando annually. In addition to the theme parks, Orlando is known for
its extensive art and cultural offerings. Orlando is home to one of the top
orchestras in the state, the Orlando Philharmonic Orchestra. Moreover,
there are several art galleries such as the Terrace and Mayor’s Gallery at City
Hall, Morse Museum, and the Orlando Museum of Art.

Orlando hosts several major festivals throughout the year that attract visitors
from all over the state and country. Some of the major festivals include
the Florida Film Festival, Zora Neal Hurston, and Orlando Fringe Festivals.
Tourism funneled over $28 billion into the Orlando economy in 2009.

During 2009, Orlando played host to 46.5 million visitors, ranking third
overall in share of overseas visitors behind New York and Los Angeles.
Orlando's market share of overseas visitors to the U.S. increased from 9.6%
in 2008 to 10.1% in 2009. Orlando also maintains a position as one of the
top three convention and meeting destinations in the country.

The following table details the number of domestic and international
visitors to Orlando since 2000:


                           ORLANDO VISITOR STATISTICS

    Year           Domestic           International            Total      % Change
    2000          39,784,000             3,730,000           43,514,000       --
    2001          37,701,000             3,062,000           40,763,000    -6.32%
    2002          40,590,000             2,378,000           42,968,000     5.41%
    2003          42,685,000             2,297,500           44,982,500     4.69%
    2004          45,166,000             2,582,000           47,748,000     6.15%
    2005          46,649,000             2,673,000           49,322,000     3.30%
    2006          45,114,000             2,686,000           47,800,000    -3.09%
    2007          45,907,000             2,838,000           48,745,000     1.98%
    2008          45,515,000             3,373,000           48,888,000     0.3%
    2009          43,319,000             3,264,000           46,583,000    -4.7%
Source: Orlando/Orange County Convention & Visitors Bureau




                                                                            33
Located 18 miles from the Hotel, the Universal Orlando Resort is the second
largest resort in Orlando, behind only Walt Disney World. Made up of Universal
Studios Florida, Universal's Islands of Adventure, and Universal CityWalk,
the resort plays host to millions of guests annually. Average annual visitor
attendance at each of the cities parks is detailed below.

                                 Top Attractions in Central Florida

 Attraction                                                                        Annual Visitors
 Magic Kingdom                                                                           17,063,000
 Epcot Center                                                                            10,935,000
 Disney's Hollywood Studios                                                              9,608,000
 Disney's Animal Kingdom                                                                  9,540,000
 Universal Studios at Universal Orlando                                                  6,231,000
 SeaWorld Florida                                                                        5,926,000
 Islands of Adventure at Universal Orlando                                                5,297,000
 Busch Gardens Tampa Bay                                                                 4,410,000
 Source: Themed Entertainment Association, Economics Research Associates, 2008 Report.

                                                                                                           Amway Center
                                                                                                           One of the newest Orlando developments is the Amway Center - a
                                                                                                           20,000-seat arena located in the CBD. Opened in October 2010, the
                                                                                                           facility is owned and operated by the City of Orlando on behalf of the
                                                                                                           Central Florida Community. The building is home to the Orlando Magic
                                                                                                           and Orlando Predators and will host events such as elite concerts, ice
                                                                                                           shows, arena football, indoor soccer, NCAA basketball tournaments and
                                                                                                           ultimately NBA All-Star games.




MARKET SUMMARY                                                                                        34
CONVENTION CENTER
Located 20 miles from of the Hotel, the award-winning Orange
County Convention Center is ranked #1 overall as a convention                              Orange County Convention Center Event Attendance
destination and the #1 destination among corporate meeting             Year                                Conventions     Attendance            % Change
planners. The Orange County Convention Center boasts over
seven million square feet including 2,053,820 square feet of           2007                                      108        1,455,203                 --
exhibition space with 74 meeting rooms and 232 breakout                2008                                       98        1,310,377              -10.0%
rooms. The largest ballroom is the Valencia Ballroom spanning          2009                                       84        1,076,224              -17.9%
over 62,000 square feet. Additional features include the 2,643-
                                                                       YTD October 2009                           66          811,306                 --
seat Chapin Theater and a 200-seat Lecture Hall.
                                                                       YTD October 2010                           76          817,568                0.8%
The following table details conventions/tradeshows and                 Source: Orange County Convention Center
attendance from 2007 through YTD September 2010:




   The total number of conventions and attendance are down from                     the economy continues to recover from one of the worst recessions in the
   historical levels, however, the Orange County Convention Center projects         nation’s history, business and trade association are expected to increase
   that 2010 and 2011 will bring more conventions to the Orlando area due           the number of meetings and conventions held in Orlando. This facility
   to the national meeting cycle rotating back to Orlando. Year-over-year           creates demand compression in the Orlando market and drives business
   attendance is up almost 1% through September 2010. Additionally, as              to suburban hotels including the Embassy Suites.




                                                                  35
OFFICE MARKET
Orlando has over 36.8 million square feet of office space throughout its        to be the final year of declines from the recent recession, with rent
six submarkets. Through the third quarter of 2010, the Orlando office           growth of 1.5% in 2011.
market has seen further negative net absorption bringing the YTD
absorption to a negative 100,722. Construction rose by 60,550 SF in Q3          Overall the office market has troughed and a recovery consistent with
due to two new projects in Lake Mary and Altamonte Springs.                     the local and national economy is projected for 2011. Minimal new
                                                                                supply of Class A office product is expected to help lead positive net
The Embassy Suites Orlando North is located in the North Orlando                absorption and shrinking vacancy rates.
submarket with its competitive market stretching into the Lake Mary
submarket. Lake Mary and South Orlando witnessed 48,393 SF of                   The following table displays Orlando office space statistics:
positive net absorption in Q3 2010. CB Richard Ellis is projecting 2010



                                                           Metro Orlando Office Market - Q3 2010

 Submarket                       Total Inventory (SF)   Total Vacancy %   Q3 Absorption (SF)       Under Construction       Asking Lease Rates $/SF
 North Orlando                         4,248,575             25.6                (4,627)                 16,550                       $16.63
 Lake Mary                             4,997,335             15.0                25,711                  44,000                       $20.98
 Downtown                              7,524,708             16.8               (12,267)                105,000                       $22.80
 East Orlando                          6,336,697             21.1             (153,032)                       0                       $18.55
 Maitland Center                       5,632,086             19.8               (46,781)                      0                       $20.05
 South Orlando                         8,092,829             24.8                22,682                       0                       $20.56
 Orlando MSA                          36,828,230             20.5             (168,314)                 165,550                       $20.10
 Source: OCB Richard Ellis; Q3 2010




MARKET SUMMARY                                                                36
37
TRANSPORTATION
The Metro Orlando area is served by three airports - Orlando International Airport (MCO),
Orlando Sanford International Airport (SFB) and the Orlando Executive Airport (ORL). The
Embassy Suites is located just a short drive from each of the metro area airports - 10.7 miles
from ORL, 14.5 miles from SFB and 21 miles from MCO. Historical passenger counts at Orlando
International Airport and Orlando Sanford International Airport are provided in the following
table:




                                             Orlando                       Orlando Sanford
                                       International Airport             International Airport
                                               (MCO)                             (SFB)
Year                                Passengers          Percent       Passengers         Percent
                                                     Change (%)                        Change (%)
1997                                25,148,404             --          1,044,496             --
1998                                25,711,785            2.24%        1,198,803          14.77%
1999                                26,894,997            4.60%          939,962         -21.59%
2000                                28,285,725            5.17%        1,086,635          15.60%
2001                                26,158,784           -7.52%        1,222,391          12.49%
2002                                24,971,215            4.54%        1,263,662           3.38%
2003                                25,546,253                2.30%   1,253,862               -0.78%
2004                                31,494,285               23.28%   1,834,315              46.29%
2005                                34,128,048                8.36%   1,649,237              -10.09%
2006                                34,830,914                2.06%   1,645,989               -0.20%
2007                                36,480,416                4.73%   1,780,495               8.17%
2008                                35,661,269               -2.25%   1,837,247               3.19%
2009                                33,693,649               -5.52%   2,702,412              47.09%
YTD 2009                            20,428,557 (1)             --     1,264,776 (2)            --
                                                     (1)                          (2)
YTD 2010                            20,787,134               1.76%      856,729              -32.26%
Notes:
(1) YTD July
(2) YTD August


Source: Orlando/Orange County Convention & Visitors Bureau




MARKET SUMMARY                                                                          38
Orlando International Airport                                      Orlando Sanford International Airport
Orlando International Airport is the 13th busiest airport in       The Orlando Sanford International Airport is located 14.5
the United States in terms of passenger traffic and the 29th       miles from the Embassy Suites Orlando North and is Metro
busiest in the world. In addition, the Orlando International       Orlando’s secondary airport. The airport was originally
Airport is one of the fastest growing major metropolitan           constructed as a military installation known as Naval Air
airports in the nation. MCO is ranked number two in the            Station Sanford. Although it is primarily a landing point for
nation and also in the world in customer service according         European travel, Sanford is also the second largest focus city
to a recent J.D. Power and Associates survey.                      for Las Vegas-based Allegiant Air and the smallest focus city
                                                                   for Myrtle Beach-based Direct Air. The airport is also home
In 2009, the Orlando International Airport processed               to Delta Connection Academy, a subsidiary of Delta Air Lines,
33.7 million passengers with growth in the tourism and             which provides flight training for prospective regional airline
healthcare sectors has continuing to bolster traffic to the        pilots. The Seminole County Sheriff’s Office also maintains
city. For 2010, international passenger traffic at the airport     a hangar and support facility at the airport for aviation
has increased by 9.8% (+2 million visitors) compared to the        elements of the agency’s Special Operations Division.
same year-to-date period in 2009. In addition, the airport
has seen a 1.8% increase in traffic year-to-date over last year.   Orlando Executive Airport

The Orlando International Airport is served by over 43             Orlando Executive Airport serves as a general aviation and
passenger airlines and offers over 96 non-stop flights to          corporate aviation airport for the Metro Orlando area. Its
domestic and international cities everyday. Major carriers         proximity to the East-West Expressway as well as downtown
include American Airlines, US Airways, United, Southwest           Orlando makes it a popular airport for private business and
Airlines, Continental and Delta. The airport serves as a           pleasure travelers alike. The Orlando Executive Airport is
secondary hub and corporate headquarters for AirTran               located 10.7 miles from the Embassy Suites Orlando North.
Airways and is a focus city for Southwest Airlines and JetBlue
Airways. The airport also serves as a major international          High Speed Intercity Passenger Rail Program
destination for the Central Florida region with major foreign
carriers including Lufthansa, British Airways, Virgin Atlantic,    The Florida Department of Transportation was awarded
Aer Lingus, TAM and Aeromexico.                                    $1.25 billion by the Federal Railroad Administration as part
                                                                   of the High Speed Intercity Passenger Rail Program. This
As part of the Florida High Speed Rail project, the Orlando        investment will initiate the Phase I development of the
International Airport is planned to be the Orlando terminus        Tampa to Orlando segment, with speeds reaching 168 mph
of the initial Orlando-Tampa route along the Interstate            and 16 round trips per day on a brand new track dedicated
4 corridor. The airport has already invested capital to            solely to high-speed rail. Trip time between the two cities on
accommodate the station, such as the extra length of the           the new line will be less than one hour, compared to around
taxiway bridge over the southern access road.                      90 minutes by car. This project will create jobs and generate
                                                                   economic activity as 84 miles of track are constructed,
                                                                   stations are built, and equipment is purchased. Completion
                                                                   of Phase I is anticipated by 2014.




                                    39
ALTAMONTE SPRINGS
SUBMARKET OVERVIEW
The Embassy Suites Orlando is located in Altamonte Springs, adjacent                  connecting Daytona Beach, Orlando, and Tampa. The area includes the
to the acclaimed Central Business District - Uptown Altamonte. Visible                Altamonte Mall, a four-anchor indoor shopping mall which includes an
from Interstate 4 and State Road 436, the busiest intersection in the                 18-screen AMC Theatre and many restaurants.
region, and positioned on 1,375 acres, Uptown Altamonte is a planned
work, play and live lifestyle development. Uptown Altamonte is one of                 Altamonte Springs is home to over 42,000 residents and hosts several
the most affluent submarkets in the area.                                             local events in the Orlando area, including Red, Hot & Boom, a major
                                                                                      annual firework festival that takes place every July 3rd in celebration of
Cranes Roost Park is at the heart of Uptown Altamonte surrounding                     Independence Day. The Red, Hot & Boom event, Central Florida's largest
Cranes Roost Lake. The lake is encircled by one mile of continuous                    Independence Day Celebration, draws over 100,000 local residents and
walkways with benches and covered seating areas. Within the 45-acre                   visitors annually from the entire Central Florida area and includes musical
park is a European-styled plaza which includes choreographed fountain                 performances by nationally and internationally known entertainers.
shows and a 62’ picturesque limestone clad tower as well as the Eddie
Rose Amphitheater with stadium seating and a one-of-a-kind floating                   The Hotel is in close proximity to several large business parks in the
stage.                                                                                area including Altamonte Lakeside Office Park, Maintland Office Park,
                                                                                      Centerpointe I, II and III as well as the Centerpointe Office Park. The chart
Cranes Roost Park, Cranes Roost Lake, and the general area on State                   below details the major employers in Seminole County. Additionally,
Road 436 east of Interstate 4 are known as the central areas of Altamonte             International Assets Holdings, 49th on the 2010 Fortune 500, list is
Springs. Interstate 4 is the main interstate highway for Central Florida              located in Altamonte Springs.




                                                Top 10 Employers in Seminole County

 Company                                                City                Employees        Industry
 Convergys                                              Lake Mary              1,771         Software
 Florida Hospital                                       Altamonte Springs      1,671         Medical
 Chase Bankcard Services                                Heathrow               1,634         Financial Services
 Orlando Regional Healthcare                            Longwood               1,089         Medical
 American Automobile Association                        Heathrow               1,006         Service
 Embarq                                                 Altamonte Springs        986         Service
 Sears Home Improvement Products                        Longwood                 924         Home Improvement Products
 Tri-City Electrical Contractors                        Altamonte Springs        803         Electrical Contractors
 Central Florida Regional Hospital                      Sanford                  786         Medical
 Fiserv                                                 Lake Mary                661         Software
 Source: Seminole County Florida Economic Development




MARKET SUMMARY                                                                  40
Recent & Future Developments

CenterPointe On the Park: The CenterPointe On The Park development           CenterPointe Office Park/CenterPointe I, II and III: CenterPointe Office
is located at the crossroads of State Road 436 and Interstate 4. Owned,      Park is a series of eight single-story office buildings with a total of 126,000
operated and developed by Emerson International, this mixed-use, master-     square feet. Future plans for the site include razing the current buildings
planned community includes residential and commercial buildings such         and constructing higher density office developments. CenterPointe
as Emerson Plaza, CenterPointe Office Park and Centerpointe I, II and III.   buildings I, II and III are four story Class A+ mid-rise office buildings offering
The Embassy Suites Orlando North is connected to this development via        a total of 305,690 square feet of space. Recent leases include:
a lighted boardwalk over Cranes Roost Lake. Earlier this year, Emerson
signed a new long-term lease agreement for the 7,000 square foot Café        •   Crump Insurance Services, 15,177 square feet - CenterPointe I
Murano restaurant located within walking distance of the Hotel.
                                                                             •   Embry-Riddle University Worldwide, 9,292 square feet -
Emerson Plaza: The residential developments of Emerson Plaza consists            CenterPointe One Office Park
of two twelve-story luxury residential towers located in the CenterPointe
On the Park development. Developed by Emerson Properties, Emerson            •   Preferred Plastic Surgery, 5,604 square feet - CenterPointe on
Plaza enjoys a lakeside location, manicured grounds, lighted boardwalks,         the Park located at 220 E. Central Parkway, Altamonte Springs.
premier dining, great entertainment and convenient shopping at the
Altamonte Mall.




                                                           41
Uptown Altamonte Sites: The one million
square foot development of Uptown
Altamonte still has three pad sites available
for development. The long term plans and
                                                                         SITE 3
current entitlements for the sites include
high density residences, parking, as well
as retail and entertainment. The site plan
to the right details the master plan for the
Uptown Altamonte development. The three
sites identified on the master plan remain
undeveloped and represent potential future
upside for the Embassy Suites.

Gateway Crossing: The 1.5 million-square-         SITE 2
foot mixed use office development is a public/
private partnership between the city of
Altamonte Springs and Crescent Resources
located four miles from the Hotel. Acting as
the gateway to Altamonte Springs, Gateway
Crossings is a part of a 32-acre planned
development. The development will add 1.2                       SITE 1
million square feet of Class A suburban office
space. Additionally, the project may include
office, retail and luxury residential with a
central park area surrounded by support retail.

Florida Hospital Expansion: Florida Hospital,
located 1.2 miles from the Embassy Suites has
expanded to add much needed bed space,
parking capacity and medical office space.
The expansion is expected to continue for
nearly a decade.




MARKET SUMMARY                                             42
ALTAMONTE SPRINGS/NORTH ORLANDO
LODGING MARKET OVERVIEW

The Orlando lodging market derives its strength from its diverse economy and     The North Orlando lodging market currently features 90 hotels offering
world class tourist attractions. Since 2006, however, RevPAR has decreased       9,182 guestrooms. Supply additions in North Orlando include a 253-room
due to additional supply, a weak economy and ultimately the recession            Westin (opened November 2009) and a 119-room Residence Inn (opened
of 2008/2009. The Embassy Suites has been able to maintain some rate             August 2009). These two hotels are located eight miles north of the Embassy
integrity over the past three years but has suffered in regards to occupancy.    Suites and are viewed as secondary competitors. The Orlando CVB Research
A new owner has the opportunity to benefit from the recovering economy           Department anticipates that there will be no new supply increase in 2011.
and lodging market and capitalize on improving market fundamentals.
                                                                                 The performance trends of the local, state and national lodging markets are
                                                                                 illustrated in the following chart:


                                                                   PERFORMANCE TRENDS
                                     2007                            2008                              2009                        YTD October 2010
                            OCC     ADR      RevPAR      OCC        ADR         RevPAR     OCC        ADR       RevPAR       OCC         ADR        RevPAR
Embassy Suites             76.1%   $117.32   $89.31     72.0%      $121.18      $87.22    60.6%     $113.79     $68.96      57.5%      $108.17      $62.22
Comp Set                   66.8%   $106.16   $70.94     63.8%      $107.67      $68.67    54.8%      $97.63     $53.52      53.7%       $94.49      $50.79
Orlando North              58.5%   $80.61    $47.13     52.6%      $80.86       $42.56    47.0%     $72.33      $34.02      49.6%      $68.92       $34.17
Upscale Chains             68.7%   $107.10   $73.57     64.5%      $109.37      $70.57    53.5%      $99.26     $53.10      53.4%       $94.11      $50.26
Orlando                    67.9%   $105.82   $71.85     65.9%      $106.11      $69.88    60.7%      $92.91     $56.36      63.4%       $91.61      $58.09
Top 25                     68.5%   $128.47   $88.05     65.5%      $132.95      $87.23    60.2%     $117.44     $70.65      65.1%      $118.03      $76.87
U.S.                       63.1%   $104.04   $65.61     60.4%      $106.55      $64.37    55.1%      $97.51     $53.71      59.2%       $98.22      $58.13
Source: Smith Travel Research



The Orlando North lodging market’s YTD October 2010 RevPAR is $34.17              product, and premier location of the Hotel. As the overall market continues
while the Embassy Suites achieved a RevPAR of $62.22. RevPAR for the              to recover, a new owner will be well positioned to benefit from the upside in
Embassy Suites is almost $30 higher than the Orlando North market                 revenues and earnings.
displaying the overall strength of the Embassy Suites brand, the all-suite




                                                                    43
44
COMPETITIVE ANALYSIS
BACK SIDE OF DIVIDER
COMPETITIVE OVERVIEW

The Embassy Suites Orlando North competes with six other properties located in the immediate area based on market orientation,
chain affiliation, location, facilities, amenities and quality of area hotels. A summary of the competitive set with individual property
features appears in the table below.



                                                                     COMPETITIVE SET FEATURES
                                                                                                                   Meeting Space (SF) / Per
 Property                                                                   Rooms               Opened                                        Amenities
                                                                                                                         Guestroom
 Embassy Suites Orlando North (subject)                                        277                1985                7,068 SF / 25.5 SF      A, B, C, D, E
 Sheraton Hotel Orlando North                                                  390                1985               15,000 SF / 38.5 SF             B, C, D
 Residence Inn Orlando Altamonte Springs                                       128                1985                  651 SF / 5.1 SF          A, C, D, E
 Hilton Orlando Altamonte Springs                                              311                1985               18,000 SF / 57.9 SF         B, C, D, E
 Hilton Garden Inn Lake Mary                                                   123                1998                1,100 SF / 8.9 SF              B, C, D
 Springhill Suites Orlando Altamonte Springs                                    91                2000                  855 SF / 9.4 SF           A, C, D, E
 Homewood Suites Orlando Maitland                                              143                2000                  816 SF / 5.7SF            A, C, D, E
 Marriott Orlando Lake Maitland                                                304                2002               11,000 SF / 36.2 SF             B, C, D
 Totals                                                                      1,767                 --                                               --
 Amenities Code: A = All-Suites; B = Restaurant/Bar; C = Swimming Pool(s); D = On-site Fitness Facilities; E = Complimentary Hot Breakfast

 Source: Individual site inspections




                                                                                     44
                       SHERATON HOTEL ORLANDO NORTH
                       Address
                       600 North Lake Destiny Drive
                       Maitland, Florida 32751

                       The 390-room, six-story hotel opened in 1985 and offers 15,000 SF of meeting space.
                       The Sheraton is owned by Paramount Hotel Group and managed by Starwood Hotels
                       and Resorts.

                       Facilities & Services
                       Main facilities include guestrooms and suites with flat screen televisions, Sheraton
                       Sweet Sleeper Bed, mini refrigerator and high-speed internet access. The Sheraton
                       offers a preferred club level as well as an outdoor pool with water feature, fitness
                       facility, shuttle service and business center. Food and beverage includes the Grande
                       Café, Celestial Lounge and Starbucks.




                       RESIDENCE INN ORLANDO
                       ALTAMONTE SPRINGS
                       Address
                       270 Douglas Avenue
                       Altamonte Springs, Florida 32714

                       The 128-suite, two-story (16 buildings) hotel opened in 1985 and offers 651 SF of
                       meeting space. The Residence Inn is owned and operated by Island Hospitality

                       Facilities & Services
                       Main facilities include guest suites with fully equipped kitchens, complimentary
                       high-speed internet access and complimentary continental breakfast. Other
                       amenities include a sports court, fitness center and heated outdoor pool.




COMPETITIVE ANALYSIS                          45
HILTON ORLANDO ALTAMONTE SPRINGS
Address
350 North Lake Boulevard
Altamonte Springs, Florida 32701

The 311-room, eight-story hotel opened in 1985 and offers 18,000
SF of meeting space. The Hilton is owned and operated by Cooper
Hotels.

Facilities & Services
Main facilities include guest rooms and suites with complimentary
high-speed internet access and LCD televisions, fitness center,
heated outdoor pool and the U Restaurant and Lounge. The Hilton
completed a $7 million renovation in 2009.




HILTON GARDEN INN LAKE MARY
Address
705 Currency Circle
Lake Mary, Florida 32746

The 123-room, three-story hotel opened in 1998 and offers 1,100 SF
of meeting space. The Hilton is owned and operated by Trans Inn
Management

Facilities & Services
Main facilities include guestrooms with in-room microwave and
refrigerator, high-speed internet access, Pavilion Pantry, business
center, fitness room and outdoor pool. Food and beverage services
at the hotel include the Great American Grill serving breakfast and
dinner.




                                    46
                       SPRINGHILL SUITES ORLANDO ALTAMONTE SPRINGS
                       Address
                       205 W. Highway 436
                       Altamonte Springs, Florida 32714

                       The 91-suite, four-story hotel opened in 2000 and offers 855 SF of meeting space. The Springhill
                       Suites is owned by Moody International and managed by Hospitality Management Advisors

                       Facilities & Services
                       Main facilities include one bedroom guest suites with pantry, sink, microwave and refrigerator.
                       Amenities include complimentary breakfast buffet, wireless internet access, fitness center,
                       business center, meeting room and indoor pool.



                       HOMEWOOD SUITES ORLANDO MAITLAND
                       Address
                       290 Southhall Lane
                       Maitland, Florida 32751

                       The 143-suite, six-story hotel opened in 2000 and offers 816 SF of meeting space. The Homewood
                       Suites is owned by Chatham Lodging Trust and managed by Hilton Worldwide.

                       Facilities & Services
                       Main facilities include one or two bedroom guest suites with fully equipped kitchens complete
                       with full-size refrigerator, microwave, oven with stove top and dishwasher. Amenities include
                       complimentary hot breakfast buffet, wireless internet access, fitness center, business center and
                       outdoor pool.


                       MARRIOT ORLANDO LAKE MARY
                       Address
                       1501 International Parkway
                       Lake Mary, Florida 32746

                       The 304-room, 10-story hotel opened in 2002 and offers 11,000 SF of meeting space. The
                       Marriott is owned and operated by Pinnacle Hotel Management, LLC.

                       Facilities & Services
                       Main facilities include guestrooms with complimentary wireless internet access, 32” flat screen
                       televisions, meeting rooms, exercise room, heated pool, martini bar and the Bistro 1501
                       restaurant. The Marriott is planning its 10-year refresh sometime in 2011.



COMPETITIVE ANALYSIS                                 47
COMPETITIVE PROPERTY MAP                                                                                                                                                                                                                    Florida               92
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                                                                                                                                                                                                                                                48
   STR OVERVIEW
   Smith Travel Research has compiled historical occupancy, ADR and RevPAR statistics for Year End 2005 through 2009, YTD
   October 2008 - 2010 and TTM October 2008 - 2010 for the competitive set previously outlined. The following table provides
   historical performances for the Embassy Suites Orlando North and competitive set.


                                         Subject and Competitive Set Operating Statistics
                                       Occupancy                           ADR                            RevPAR
    Period                     Subject      Competitive set      Subject     Competitive set    Subject      Competitive
                                Hotel                             Hotel                          Hotel          set
    YE 2005                     73.2%            78.2%           $107.83           $90.35       $78.97         $70.65
    YE 2006                     82.0%            73.5%           $109.78           $96.73       $90.07         $71.13
    YE 2007                     76.1%            66.8%           $117.32          $106.16       $89.31         $70.94
    YE 2008                     72.0%            63.8%           $121.18          $107.67       $87.22         $68.67
    YE 2009                     60.6%            54.8%           $113.79           $97.63       $68.96         $53.52
    YTD October 2008            73.8%            66.0%           $122.96          $108.76       $90.60         $71.82
    YTD October 2009            61.8%            56.5%           $115.01           $98.55       $71.09         $55.67
    YTD October 2010            57.5%            53.7%           $108.17           $94.49       $62.22         $50.79
    TTM October 2008            73.7%            64.5%           $120.89          $107.78       $89.16         $69.48
    TTM October 2009            61.9%            55.8%           $114.55           $98.91       $70.96         $55.21
    TTM October 2010            57.0%            52.5%           $107.96           $94.13       $61.57         $49.45


   Based on the figures in the previous table, corresponding
                                                                       Penetration/Yields for the Subject Property
   yield and penetration numbers for the Embassy Suites
   have been calculated and are presented in the table to      Period               Occupancy        ADR           RevPAR
   the right.                                                  YE 2005                93.6%         119.3%         111.8%
                                                               YE 2006               111.6%         113.5%         126.6%
   The Embassy Suites maintains a competitive advantage
                                                               YE 2007               113.9%         110.5%         125.9%
   as evidenced by its Year End 2009 RevPAR index of
   125% and TTM October 2010 index of 124.5 %. The             YE 2008               112.9%         112.5%         127.0%
   key advantages of the Embassy Suites are its all-suites     YE 2009               110.6%         116.6%         128.8%
   guestroom product, extensive amenity package, strong        YTD October 2008      111.8%         112.8%         126.1%
   brand affiliation, and appealing location in Uptown
                                                               YTD October 2009      109.4%         116.7%         127.7%
   Altamonte.
                                                               YTD October 2010      107.0%         114.5%         122.5%
   The monthly occupancy, average daily rate, and RevPAR       TTM October 2008      114.4%         112.2%         128.3%
   statistics for the subject property and six competitive     TTM October 2009      111.0%         115.8%         128.5%
   properties are highlighted in the following tables          TTM October 2010      108.5%         114.7%         124.5%



COMPETITIVE ANALYSIS                                                         49
                                  MONTHLY OCCUPANCY TRENDS
                                     Embassy Suites                        Competitive Set
  Month                       2008        2009            2010      2008        2009          2010
  January                    73.3%       60.1%           48.4%     71.2%       59.0%         57.5%
  February                   89.2%       75.9%           68.8%     82.7%       62.3%         58.9%
  March                      87.2%       69.5%           71.2%     80.0%       66.3%         64.8%
  April                      81.9%       80.3%           66.9%     70.0%       66.1%         62.3%
  May                        77.7%       66.4%           64.3%     65.4%       56.6%         55.8%
  June                       73.3%       60.8%           58.1%     63.3%       55.5%         49.7%
  July                       67.0%       54.4%           52.1%     61.1%       56.8%         47.4%
  August                     57.3%       45.7%           48.4%     56.6%       40.7%         41.1%
  September                  55.6%       50.6%           41.7%     52.5%       48.5%         46.7%
  October                    76.6%       56.0%           56.2%     59.0%       53.5%         53.6%
  November                   63.9%       55.1%              -      55.6%       48.8%            -
  December                   61.5%       54.0%              -      49.3%       44.3%            -
  Annual                     72.0%       60.6%              -      63.8%       54.8%            -
  YTD thru October           75.7%       63.9%           57.5%     68.6%       57.8%         53.7%
  TTM thru October           74.7%       64.1%           57.0%     65.4%       56.6%         52.5%
  Source: Smith Travel Research and Subject Property


                      Occupancy Trends - Trailing 12 Months October 2010
                           Embassy Suites versus Competitive Set
80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

 0.0%
        Nov    Dec     Jan    Feb     Mar     Apr      May   Jun   Jul   Aug    Sep    Oct    TTM
                                                     Month                  Subject   Com p Set




                                                    50
                                                   MONTHLY AVERAGE DAILY RATE TRENDS
                                                         Embassy Suites                               Competitive Set
                 Month                         2008            2009            2010           2008         2009           2010
                 January                      $126.13         $123.80         $112.42       $114.94      $110.59         $96.91
                 February                     $139.16         $132.70         $120.63       $128.88      $116.00        $105.74
                 March                        $136.67         $121.81         $112.60       $115.42      $104.21         $99.67
                 April                        $123.56         $111.89         $105.33       $109.20      $96.90         $90.55
                 May                          $116.14         $110.51         $105.22       $101.51       $94.67        $93.47
                 June                         $116.80         $108.23         $106.62       $102.68       $92.20        $93.31
                 July                         $119.09         $111.77         $108.66        $99.45       $89.22        $89.92
                 August                       $115.24         $107.19         $102.78        $97.07       $89.44        $90.53
                 September                    $113.40         $109.84         $103.53       $104.30       $95.93        $93.06
                 October                      $111.99         $107.11         $100.82       $105.35       $91.50         $89.35
                 November                     $113.06         $108.67            -          $103.88       $95.78            -
                 December                     $111.50         $105.14            -           $97.56       $88.01          -
                 Annual                       $121.18         $113.79            -          $107.67       $97.63          -
                 YTD thru October             $124.91         $116.40         $108.17       $109.56       $99.66        $94.49
                 TTM thru October             $120.88         $115.06         $107.96       $107.55      $100.70        $94.13
                 Source: Smith Travel Research and Subject Property

                                                  ADR Trends - Trailing 12 Months October 2010
                                                    Embassy Suites versus Competitive Set
                         $125

                         $120

                         $115

                         $110

                         $105

                         $100

                          $95

                          $90

                          $85

                          $80
                                Nov     Dec     Jan     Feb    Mar      Apr   May     Jun   Jul   Aug   Sep   Oct     TTM
                                                                              Month                     Subject    Com p Set



COMPETITIVE ANALYSIS                                                     51
                                          MONTHLY RevPAR TRENDS
                                      Embassy Suites                               Competitive Set
Month                       2008            2009            2010           2008        2009              2010
January                    $92.39          $73.92          $54.37         $81.85      $65.28            $55.70
February                  $124.14         $100.69          $83.05        $106.57      $72.29            $62.27
March                     $119.13         $84.70           $80.13         $92.29      $69.06            $64.61
April                     $101.18         $89.82           $70.49        $76.43       $64.03            $56.41
May                        $90.26          $73.33          $67.65         $66.41      $53.59            $52.17
June                       $85.57          $65.83          $61.96         $64.99      $51.22            $46.35
July                       $79.80          $60.78          $56.60         $60.76      $50.72            $42.67
August                     $66.03          $49.03          $49.75         $54.94      $36.42            $37.24
September                  $63.10          $55.53          $43.17         $54.75      $46.52            $43.49
October                   $85.80          $60.04           $56.66         $62.12      $48.97            $47.88
November                   $72.20          $59.92             -           $57.73      $46.77               -
December                  $68.53          $56.79              -          $48.30       $38.95               -
Annual                    $87.22          $68.96              -          $68.68       $53.52               -
YTD thru October          $94.58          $74.42           $62.22        $75.17       $57.65            $50.79
TTM thru October          $90.26          $73.77           $61.57        $70.10       $57.00            $49.45
Source: Smith Travel Research and Subject Property

                              RevPAR Trends - Trailing 12 Months October 2010
                                  Embassy Suites versus Competitive Set
     $90


     $80



     $70


     $60



     $50


     $40


     $30
            Nov     Dec     Jan    Feb     Mar       Apr   May     Jun    Jul   Aug   Sep      Oct     TTM
                                                           Month                       Subject       Com p Set


                                                 52
53
FINANCIAL ANALYSIS
BACK SIDE OF DIVIDER
FINANCIAL OVERVIEW

The following assumptions and factors are used as the basis for the pro forma financial statements:

     •   Ownership will change by year end 2010.

     •   The current management agreement will be terminated and an experienced 3rd party manager
         will implement a more aggressive sales and marketing campaign and cost saving measures.

     •   Culinaire’s food and beverage lease will be terminated upon sale with the new management
         company assuming operation of the food and beverage facilities providing improved revenues
         and margins.

     •   The standard Embassy Suites Franchise Royalty Fee has been incorporated into the pro forma
         analysis including rights to the brand name.

     •   The Hotel will complete the required Embassy Suites PIP in Year 1 or 2011, which is expected to
         be nominal and should not significantly impact operations during the renovation.

     •   Stabilized occupancy of 68% given the general improvements in the product, improvements in
         lodging fundamentals, national economic rebound and the continued focus on building base
         business to yield higher ADR.

     •   The annual Base Management Fee is set at 3.0% of gross revenues.

     •   The annual Reserve for Replacement is set at 4.0% of gross revenues.

The historical financial summary for the Embassy Suites and the pro forma financial projections are
highlighted in the following pages.




                                                    54
55
HISTORICAL FINANCIAL STATEMENTS
                                                                                             12 MONTHS ENDING               12 MONTHS ENDING           12 MONTHS ENDING              10 MONTHS ENDING                        10 MONTHS ENDING                         12 MONTHS ENDING                               FORECAST (1)
                                                                                             DECEMBER 31, 2007              DECEMBER 31, 2008          DECEMBER 31, 2009               OCTOBER 30, 2009                         OCTOBER 30, 2010                        OCTOBER 30, 2010                           YEAR END 2010

  Rooms                                                                                                   277                      277                         277                                  277                                      277                                     277                                      277
  Available Rooms                                                                                    101,105                      101,382                    101,105                              84,208                                  84,208                                  101,105                                  101,105
  Occupied Rooms                                                                                      76,972                      72,969                      61,269                              52,049                                  48,436                                   57,656                                   57,352
  Occupancy                                                                                           76.1%                       72.0%                       60.6%                               61.8%                                    57.5%                                   57.0%                                    56.7%
  ADR                                                                                                $117.31                      $121.17                    $113.74                             $114.95                                 $108.16                                  $107.96                                  $107.61
  ADR % Change                                                                                            --                       3.3%                       -6.1%                                  --                                    -5.9%                                       --                                   -5.4%
  RevPAR                                                                                              $89.31                      $87.21                      $68.93                              $71.05                                  $62.21                                   $61.56                                   $61.04
  RevPAR % Change                                                                                         --                      -2.4%                      -21.0%                                  --                                   -12.4%                                       --                                   -11.4%
                                                                                             Amount              Percent      Amount         Percent    Amount         Percent         Amount                Percent            Amount               Percent             Amount               Percent             Amount               Percent
REVENUE
  Rooms                                                                                      $9,029,568          96.7%       $8,841,442      96.4%     $6,968,828      95.4%          $5,983,264             95.5%             $5,238,883             96.4%             $6,224,447            96.1%              $6,171,511               96.3%
  Telephone                                                                                   $111,602               1.2%      $117,825       1.3%       $96,865        1.3%               $82,385             1.3%                 $67,575            1.2%                 $82,055             1.3%                 $77,816               1.2%
  Other                                                                                       $113,748               1.2%      $133,572       1.5%      $174,176        2.4%             $148,669              2.4%                 $97,184            1.8%                $122,691             1.9%                $115,890               1.8%
  Restaurant Rent                                                                              $81,410               0.9%       $74,480       0.8%       $61,924        0.8%               $50,638             0.8%                 $33,671            0.6%                 $44,957             0.7%                 $45,783               0.7%
TOTAL REVENUE                                                                                $9,336,328         100.0%       $9,167,319     100.0%     $7,301,793    100.0%           $6,264,956          100.0%               $5,437,313          100.0%               $6,474,150          100.0%               $6,411,000            100.0%

DEPARTMENTAL EXPENSES
  Rooms (2)                                                                                  $2,319,670          25.7%       $2,262,174      25.6%     $1,891,988      27.1%          $1,603,207             26.8%             $1,497,311             28.6%             $1,786,092            28.7%              $1,775,923               28.8%
  Telephone                                                                                    $39,754           35.6%          $55,628      47.2%       $46,507       48.0%               $39,371           47.8%                  $34,189           50.6%                 $41,325           50.4%                  $40,948              52.6%
  Other                                                                                        $72,163           63.4%          $77,624      58.1%       $59,382       34.1%               $50,673           34.1%                  $38,278           39.4%                 $46,987           38.3%                  $45,664              39.4%
TOTAL DEPARTMENTAL EXPENSES                                                                  $2,431,587         26.0%        $2,395,426     26.1%      $1,997,877      27.4%          $1,693,251            27.0%              $1,569,778            28.9%              $1,874,404            29.0%              $1,862,535              29.1%
GROSS OPERATING INCOME                                                                       $6,904,741         74.0%        $6,771,893     73.9%      $5,303,916      72.6%          $4,571,705            73.0%              $3,867,535            71.1%              $4,599,746            71.0%              $4,548,465              70.9%
UNDISTRIBUTED OPERATING EXPENSES
  Administrative & General (3)                                                                $774,770               8.3%      $806,559       8.8%      $580,637        8.0%             $499,488              8.0%               $512,337             9.4%                $593,486             9.2%               $609,868                9.5%
  Franchise Royalty Free                                                                      $361,183               3.9%      $353,659       3.9%      $278,844        3.8%             $239,421              3.8%               $209,555             3.9%                $248,978             3.8%               $246,860                3.9%
  Sales & Marketing (4)                                                                       $929,440           10.0%         $895,051       9.8%      $714,181        9.8%             $608,581              9.7%               $582,040            10.7%                $687,640           10.6%                $692,625               10.8%
  Repairs & Maintenance                                                                       $660,163               7.1%      $630,230       6.9%      $538,443        7.4%             $439,995              7.0%               $456,190             8.4%                $554,638             8.6%               $543,079                8.5%
  Energy Costs                                                                                $626,841               6.7%      $609,458       6.6%      $666,667        9.1%             $568,529              9.1%               $538,045             9.9%                $636,183             9.8%               $651,431               10.2%
TOTAL UNDISTRIBUTED OPERATING EXPENSES                                                       $3,352,397         35.9%        $3,294,957     35.9%      $2,778,772      38.1%          $2,356,014            37.6%              $2,298,167            42.3%              $2,720,925            42.0%              $2,743,863              42.8%
GROSS OPERATING PROFIT                                                                       $3,552,344         38.0%        $3,476,936     37.9%      $2,525,144      34.6%          $2,215,691            35.4%              $1,569,368            28.9%              $1,878,821            29.0%              $1,804,602              28.1%
  FIXED CHARGES
  Insurance                                                                                   $352,994               3.8%      $284,616       3.1%      $259,785        3.6%             $215,518              3.4%               $194,870             3.6%                $239,137             3.7%               $239,800                3.7%
  Property Taxes                                                                              $339,888               3.6%      $352,979       3.9%      $358,667        4.9%             $336,650              5.4%               $212,220             3.9%                $234,237             3.6%               $272,167                4.2%
  Leases / Other (5)                                                                           $33,916               0.4%       $32,091       0.4%       $(3,691)      -0.1%                 $9,109            0.1%                  $9,471            0.2%                  $11,578            0.2%                 $11,443               0.2%
  Management Fees                                                                             $186,726               2.0%      $183,347       2.0%      $145,942        2.0%             $125,310              2.0%                 $92,439            1.7%                $113,071             1.7%               $107,943                1.7%
TOTAL FIXED CHARGES                                                                           $913,524           9.8%          $853,033      9.3%       $760,703       10.4%             $686,587           11.0%                 $509,000             9.4%                $598,023             9.2%               $631,353                9.8%
EBITDA                                                                                       $2,638,820         28.3%        $2,623,903     28.6%      $1,764,441      24.2%          $1,529,104            24.4%              $1,060,368            19.5%              $1,280,798            19.8%              $1,173,249              18.3%
  Reserve for Replacement (6)                                                                 $373,453               4.0%      $366,693       4.0%      $292,072        4.0%             $250,598              4.0%               $217,493             4.0%                $258,966             4.0%               $256,440                4.0%
NET OPERATING INCOME                                                                         $2,265,367         24.3%        $2,257,210     24.6%      $1,472,369      20.2%          $1,278,506            20.4%                 $842,875           15.5%              $1,021,832            15.8%                $916,809              14.3%

  Adujustments

  Franchise Royalty Fee Adjustment (7)                                                         $90,295               1.0%       $88,413       1.0%       $69,597        1.0%               $59,742             1.0%                 $52,389            1.0%                 $62,244             1.0%                 $61,716               1.0%
  Management Fee Adjustment (8)                                                                $93,364               1.0%       $91,673       1.0%       $73,112        1.0%               $62,639             1.0%                 $70,680            1.3%                 $81,154             1.3%                 $84,387               1.3%
ADJUSTED EBITDA                                                                              $2,455,161         26.3%        $2,443,817     26.7%      $1,621,732      22.2%          $1,406,723            22.5%                 $937,298           17.2%              $1,137,400            17.6%              $1,027,146              16.0%
                                                                                                                                                                                 The Seller, Molinaro Koger and their respective affiliates, officers, and directors make no representations or warranties with respect to the accuracy or completeness
ADJUSTED NET CASH TO OWNER                                                                   $2,081,708         22.3%        $2,077,125     22.7%      $1,329,660      18.2%           $1,156,125            18.5%                $719,806           13.2%                $878,434         13.6%                 $770,706             12.0%
                                                                                                                                                                                    of the financials. All potential investors must conduct and rely upon their own due diligence and underwriting with respect to the performance of the property
Notes:
(1) Forecast includes actuals through October 31, 2010.
(2) Rooms Expense includes Reservation Costs and HRW Expenses.
(3) Administrative & General Expense includes Human Resources Expenses.
(4) Sales & Marketing Expense includes Hilton Frequent Guest Program Expenses and HHC Group Marketing Allocation.
(5) Leases / Other includes Equipment Rentals.
(6) Reserve for Replacement set at pro forma rate of four percent (4.0%) of Total Revenue.
(7) Franchise Royalty Fee has been adjusted to reflect pro forma rate of five percent (5.0%) of Gross Rooms Revenue.


                                                                                                                                                         56
(8) Management Fee has been adjusted to reflect pro forma rate of three percent (3.0%) of Total Revenue.
PRO FORMA FINANCIAL STATEMENTS
                                                                                                         RENOVATION YEAR
                                                                                                                       2011                                       2012                                2013                       2014                       2015
   Rooms                                                                                                                277                                        277                                 277                        277                        277
   Available Rooms                                                                                                   101,105                                    101,105                              101,105                    101,105                    101,105
   Rooms Sold                                                                                                         60,663                                    63,696                               66,729                     68,751                     68,751
   Occupancy                                                                                                          60.0%                                      63.0%                                66.0%                      68.0%                      68.0%
   ADR                                                                                                               $112.92                                    $119.46                              $125.44                    $130.45                    $135.67
   ADR % Change                                                                                                        4.0%                                       5.8%                                5.0%                       4.0%                       4.0%
   RevPAR                                                                                                             $67.75                                    $75.26                               $82.79                     $88.71                     $92.26
   RevPAR % Change                                                                                                     8.4%                                      11.1%                                10.0%                      7.2%                       4.0%
                                                                                                           Amount                Percent                 Amount               Percent          Amount          Percent    Amount          Percent    Amount          Percent
 REVENUE
   Rooms                                                                                                  $6,849,763             81.8%                  $7,609,402            82.0%            $8,370,342      82.0%      $8,968,948      82.2%     $9,327,706       82.3%
   Food & Beverage                                                                                        $1,312,141             15.7%                  $1,446,635            15.6%            $1,591,299      15.6%      $1,688,705      15.5%     $1,739,367       15.3%
   Telephone                                                                                                   $83,735             1.0%                     $90,560             1.0%             $97,718        1.0%       $103,700        1.0%       $106,811        0.9%
   Other                                                                                                     $124,591              1.5%                    $134,745             1.5%            $145,396        1.4%       $154,296        1.4%       $158,925        1.4%
 TOTAL REVENUE                                                                                            $8,370,230           100.0%                   $9,281,342          100.0%         $10,204,755       100.0%      $10,915,650    100.0%      $11,332,809    100.0%
 DEPARTMENTAL EXPENSES
   Rooms (1)                                                                                              $1,923,017             28.1%                  $2,092,419            27.5%            $2,262,123      27.0%      $2,400,593      26.8%     $2,472,610       26.5%
   Food & Beverage                                                                                           $957,863            73.0%                  $1,041,577            72.0%            $1,113,909      70.0%      $1,182,094      70.0%     $1,217,557       70.0%
   Telephone                                                                                                   $41,868           50.0%                      $43,469           48.0%              $45,927       47.0%        $48,739       47.0%        $50,201       47.0%
   Other                                                                                                       $49,836           40.0%                      $51,203           38.0%              $52,343       36.0%        $55,547       36.0%        $57,213       36.0%
 TOTAL DEPARTMENTAL EXPENSES                                                                              $2,972,584            35.5%                   $3,228,668           34.8%             $3,474,302     34.0%       $3,686,972     33.8%      $3,797,581      33.5%
 GROSS OPERATING INCOME                                                                                   $5,397,646            64.5%                   $6,052,674           65.2%             $6,730,453     66.0%       $7,228,678     66.2%      $7,535,228      66.5%
 UNDISTRIBUTED OPERATING EXPENSES
   Administrative & General (2)                                                                              $669,618              8.0%                    $714,663             7.7%            $755,152        7.4%       $789,134        7.2%       $812,808        7.2%
   Franchise Royalty Fee                                                                                     $342,488              4.1%                    $380,470             4.1%            $418,517        4.1%       $448,447        4.1%       $466,385        4.1%
   Sales & Marketing (3)                                                                                     $652,878              7.8%                    $696,101             7.5%            $744,947        7.3%       $782,872        7.2%       $798,529        7.0%
   Repairs & Maintenance                                                                                     $544,065              6.5%                    $529,036             5.7%            $551,057        5.4%       $579,111        5.3%       $584,902        5.2%
   Energy Costs                                                                                              $688,525              8.2%                    $738,875             8.0%            $793,411        7.8%       $837,890        7.7%       $863,027        7.6%
 TOTAL UNDISTRIBUTED OPERATING EXPENSES                                                                   $2,897,574            34.6%                   $3,059,146           33.0%             $3,263,084     32.0%       $3,437,454     31.5%      $3,525,651      31.1%
 GROSS OPERATING PROFIT                                                                                   $2,500,072            29.9%                   $2,993,528           32.3%             $3,467,368     34.0%       $3,791,224     34.7%      $4,009,577      35.4%
   FIXED CHARGES
   Insurance                                                                                                 $182,886              2.2%                    $186,544             2.0%            $190,275        1.9%       $195,983        1.8%       $201,862        1.8%
   Property Taxes                                                                                            $262,186              3.1%                    $267,430             2.9%            $272,778        2.7%       $280,962        2.6%       $289,390        2.6%
   Leases / Other (4)                                                                                          $22,804             0.3%                     $23,488             0.3%             $24,193        0.2%        $24,919        0.2%        $25,666        0.2%
   Management Fee (5)                                                                                        $251,107              3.0%                    $278,440             3.0%            $306,143        3.0%       $327,469        3.0%       $339,984        3.0%
 TOTAL FIXED CHARGES                                                                                         $718,983             8.6%                     $755,902            8.1%             $793,388       7.8%        $829,333       7.6%        $856,903       7.6%
 EBITDA                                                                                                   $1,781,089            21.3%                   $2,237,626           24.1%             $2,673,980     26.2%       $2,961,891     27.1%      $3,152,673      27.8%
   Reserve for Replacement (6)                                                                               $334,809              4.0%                    $371,254             4.0%            $408,190        4.0%       $436,626        4.0%       $453,312        4.0%
 NET OPERATING INCOME                                                                                     $1,446,279            17.3%                   $1,866,373           20.1%             $2,265,790     22.2%       $2,525,265     23.1%      $2,699,361      23.8%
 Notes:
 (1) Rooms Expense includes Reservation Costs and HRW Expenses.
 (2) Administrative & General Expense includes Human Resources Expenses.
 (3) Sales & Marketing Expense includes Hilton Frequent Guest Program Expenses and HHC Group Marketing Allocation.
 (4) Leases / Other includes Equipment Rentals.
 (5) Management Fee has been set at three percent (3.0%) of Total Revenue.
 (6) Reserve for Replacement set at four percent (4.0%) of Total Revenue.


 The Seller, Molinaro Koger and their respective affiliates, officers, and directors make no representations or warranties with respect to the accuracy or completeness of the financials.
 All potential investors must conduct and rely upon their own due diligence and underwriting with respect to the performance of the property.




FINANCIAL ANALYSIS                                                                                                                                                                        57

				
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