EXHIBIT (c)(4)
--------------
APPRAISAL OF REAL PROPERTY
SUNBURST HOSPITALITY CORPORATION
36 Properties
IN A SUMMARY REPORT
As of October 30, 2000
Prepared For:
The Chase Manhattan Bank
380 Madison Avenue, 9th Floor
New York, New York 10017-2591
Prepared By:
HVS International
Division of H&R Valuation Services, Inc.
2229 Broadway
Boulder, Colorado 80302
October 30, 2000
Mr. Peter C. Lilienfield
Vice President
The Chase Manhattan Bank
380 Madison Avenue, 9th Floor
New York, New York 10017
Re: SUNBURST HOSPITALITY CORPORATION
36 Properties
Dear Mr. Lilienfield:
In fulfillment of our agreement as outlined in the Letter of Engagement,
HVS International has undertaken an appraisal of each of the 36 hotel properties
in the above captioned portfolio; the chart at the end of this document provides
details regarding each property, parameters used in the appraisal, and the final
value conclusion(s). This document acts as a summary of the process and
conclusions reached in this assignment. Individual Complete, Self Contained
appraisals were prepared on each property, inclusive of a description of the
property and the market in which it is located. Comparable data is presented and
analyzed, leading to a conclusion of the market value of the appropriate fee
simple, leased fee or leasehold interest.
Each property has been appraised under its highest and best use, with
consideration given to the property both as vacant and as improved.
Consideration was given to typical generators of hotel income and expenses, as
well as third party tenants, ground leases, and other sources of revenues and
costs. The value conclusions recognize the contributory value of the furniture,
fixtures and equipment at each property; an allocation for this element is
presented in each appraisal. While the value conclusions do not recognize any
existing financing, both excess land and excess development potential, if any,
have been taken into account in the final value conclusion.
The properties contained in this portfolio were individually inspected
between September 27, 2000 and October 10, 2000 by the offices of HVS
International. The "as is" date of value for each property is October 1, 2000.
USPAP/FIRREA Compliance
- -----------------------
This is a Complete Appraisal in a Summary Report which is intended to
comply with the reporting requirements set forth under Standards Rule 2-2(b) of
the Uniform Standards of Professional Appraisal Practice for an Appraisal Report
as well as our interpretation of your institution's guidelines and in compliance
with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)
1989 as amended. As such, it presents a brief discussion of the data, reasoning,
and analyses that were used in the appraisal process to develop the appraisers'
opinions of value. Supporting documentation concerning the data, reasoning, and
analyses is retained in the appraisers' files. The depth of discussion contained
in this report is specific to the needs of the client and for the intended use
stated below. The appraiser is not responsible for unauthorized use of this
report.
We are issuing this Summary Report in advance of our individual Complete
Self Contained reports which will be prepared on each asset and forwarded to you
shortly.
Portfolio Description
- ---------------------
The HVS International portfolio included 36 hotels; of these, 9 were full-
service hotels, 21 were limited-service, and 6 were extended-stay. Except for
one leasehold interest, the interest appraised for the remaining 35 hotels was
fee simple. The following table illustrates the distribution further by Choice
brand name.
- --------------------------------------------------------------------------------------------------------------------------
Brand Name Distribution
Guestrooms
Full- Limited- Extended- -------------------------------
Brand Name # of Hotels Service Service Stay Total Units % of Total
- --------------------------------------------------------------------------------------------------------------------------
Clarion Hotels 4 4 0 0 753 15%
Quality Inns, Hotels, & Suites 8 4 4 0 1,537 30%
Comfort Inns & Suites 13 1 12 0 1,713 33%
Sleep Inns 5 0 5 0 556 11%
MainStay Suites 6 0 0 6 572 11%
- --------------------------------------------------------------------------------------------------------------------------
Totals 36 9 21 6 5,131
- --------------------------------------------------------------------------------------------------------------------------
These hotels were constructed between 1962 and 1999; 14 of the hotels were
constructed in the 1990s, 10 were constructed in the 1980s, 9 were constructed
in the 1970s, and the remaining three were built in 1962, 1952, and 1926. The
average opening year for the portfolio is 1984. The portfolio spanned 18 states,
as illustrated in the following map.
[MAP APPEARS HERE]
6 were located in Virginia, 4 in Florida, 4 in Missouri, 3 in Colorado, 3
in Massachusetts, 2 in Maryland, 2 in Ohio, 2 in Texas, and 1 hotel in each of
the following states: California, Kentucky, New
Mexico, Pennsylvania, Utah, Alabama, Maine, Michigan, New York, and Rhode
Island. Four of the hotels were concentrated in the Washington DC metro area (2
from Virginia and 2 from Maryland).
This portfolio included five pairs of hotels that were located adjacent to
one another, on a shared site. In these cases, each hotel was separable and was
valued as such. The 36-hotel portfolio is part of a larger, 73-hotel portfolio
of properties operated by ownership.
Definitions of Value, Interest Appraised, and Other Pertinent Terms
- -------------------------------------------------------------------
The following definition of Market Value has been taken from the Uniform
Standards of Professional Appraisal Practice of the Appraisal Foundation:
The most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and
seller, each acting prudently and knowledgeably, and assuming the price is
not affected by undue stimulus. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what
they consider their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale.
Exposure Time
Under item 3 of the definition of Market Value, the value estimate presumes
that "A reasonable time is allowed for exposure in the open market".
Exposure time is defined as the estimated length of time the property
interest being appraised would have been offered on the market prior to the
hypothetical consummation of a sale at the market value on the effective
date of the appraisal. Exposure time is presumed to precede the effective
date of the appraisal.
Marketing Time
Marketing time is an estimate of the time that might be required to sell a
real property interest at the appraised value. Marketing time is presumed
to start on the effective date of the appraisal. Marketing time is
subsequent to the effective date of the appraisal and exposure time is
presumed to precede the effective date of the appraisal. The estimate of
marketing time uses some of the same data analyzed in the process of
estimating reasonable exposure time and it is not intended to be a
prediction of a date of sale.
Estimates of exposure and marketing time will be presented in each complete
self-contained report.
The following definitions of pertinent terms are taken from the Dictionary
of Real Estate Appraisal, Third Edition (1993), published by the Appraisal
Institute as well as the Urban Land Institute, Dollars and Cents of Shopping
Centers - 1995.
Gross Leasable Area (GLA)
The total floor area designed for tenants' occupancy and exclusive use,
including any basements, mezzanines, or upper floors, expressed in square
feet and measured from the centerline of joint partitions and from outside
wall faces.
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject to
the limitations imposed by the governmental powers of taxation, eminent
domain, police power, and escheat.
Leased Fee Estate
An ownership interest held by a landlord with the rights of use and
occupancy conveyed by lease to others. The rights of the lessor (the leased
fee owner) and the leased fee are specified by contract terms contained
within the lease.
Leasehold Estate
The interest held by the lessee (the tenant or renter) through a lease
conveying the rights of use and occupancy for a stated term under certain
conditions.
Market Value As Is
The value of specific ownership rights to an identified parcel of real
estate as of the effective date of the appraisal; relates to what
physically exists and is legally permissible and excludes all assumptions
concerning hypothetical market conditions or possible rezoning.
Market Rent
The rental income that a property would most probably command on the open
market, indicated by the current rents paid and asked for comparable space
as of the date of appraisal.
Cash Equivalent
A price expressed in terms of cash, as distinguished from a price expressed
totally or partly in terms of the face amounts of notes or other securities
that cannot be sold at their face amounts.
Purpose and Intended Use of the Appraisal
- -----------------------------------------
The purpose of this appraisal is to estimate the market value of the
respective fee simple, leasehold or leased fee estate in each Sunburst
Hospitality Corporation property in the portfolio. The function of this
appraisal is for financing purposes.
Extent of the Appraisal Process
- -------------------------------
In the process of preparing each appraisal, we:
. Inspected the building, site improvements, and market in which each
property is located.
. Interviewed representatives of ownership and/or the property
management company, where applicable.
. Reviewed operating history at each property, including occupancy
levels and average daily rates (ADR), as well as a detailed budget of
income and expense forecasts.
. Conducted market research to identify existing competitive properties
and proposed additions to the supply of hotel rooms in the market
place.
. Analyzed demand for hotel rooms and estimated future demand growth
trends by market segments to derive potential room night demand.
. Forecasted occupancy patterns based on market segmentation and
penetration analysis. A prospective stabilized level of occupancy was
projected for those properties not currently considered to be
stabilized.
. Forecasted ADR and subsequent increases based on historic performance,
changes in market supply and demand, and potential property specific
physical and marketing changes. A prospective stabilized ADR was
projected for those properties not currently considered to be
stabilized.
. Reviewed third party leases for tenants occupying portions of the
improvements, as well as ground leases.
. Identified recent sales of similar properties to ascertain sales price
per room, effective gross revenue multipliers and capitalization
rates.
. Developed a range of value estimates of the property through direct
sales comparison.
. Based on occupancy and ADR projections, estimated revenues from rooms
as well as other associated departments (food and beverage, telephone,
other).
. Prepared a forecast of income and expenses in keeping with the Uniform
System of Accounts for Hotels in connection with an estimate of
stabilized net income for a discounted cash flow analysis over a 10-
year holding period. Revenue from third party leases and the expense
attributed to ground leases, if any, were considered in each
property's projected cash flows.
. Converted the projected cash flows into an indicator of value
utilizing capitalization and discount rates derived from industry
surveys, comparable transactions and an analysis of debt and equity
parameters.
. Reconciled the value indications from the Sales Comparison and Income
Approaches and concluded to a final value estimate for the property.
An allocation was subsequently made for FFE, and real estate
components.
. Estimated insurable value for each property.
. For this assignment, Complete appraisals of the subject properties
have been performed with the results being conveyed in individual
Self-Contained reports. A Complete appraisal involves an estimate of
market value without any departure from the Uniform Standards of
Professional Appraisal Practice maintained by the Appraisal
Foundation. A Self-Contained report makes a comprehensive presentation
of the data and analyses that serve as the basis of our conclusion of
value for the subject property.
Valuation Methodology
- ---------------------
Our valuation methodology has considered all three approaches to value. The
most appropriate methodology was matched to the specific interest being
appraised (i.e. fee simple, leased fee, leasehold). The charts presented at the
end of this summary report provide specific details regarding the interest
appraised, significant parameters used in the valuation of each property, and
the final value conclusion. In each instance, the property's highest and best
use was determined and formed the basis for valuation. The value of any excess
land and/or excess development potential has been taken into account in the
final value conclusion.
The Cost Approach was considered for each appraisal; however, upon
-------------
consideration, only replacement cost was estimated for each appraisal. While
some of the properties were recently constructed, it was determined that the
Cost Approach was not a reliable indicator of market value because it does not
reflect how potential buyers consider hotel investments; these buyers rely
primarily on the hotel's income potential. Elements of the Cost Approach have
been used in deriving Insurable Value for each property, and in each instance
the value of the property's land as if vacant was also determined based upon a
ground rent analysis.
The Sales Comparison Approach has been used to estimate the value of each
-------------------------
property based upon recent comparable sales. A national database of transactions
has been supplemented with local and regional sales of comparable properties.
Sale prices per room have been analyzed and an appropriate range of unit rates
selected for application to the subject. Where available, an overall
capitalization rate, RevPAR, occupancy levels, and average rate levels were
considered for a check against the conclusion of the Income Approach.
The Income Approach is a method of converting the anticipated economic
---------------
benefits of owning property into a value estimate through capitalization. The
most common methods of converting net income into value are direct
capitalization and discounted cash flow analysis. The application of the
appropriate Income Approach technique is determined based upon the specific
appraisal situation. A discounted cash flow analysis has been prepared for each
property in the portfolio.
Historical operations at each property were reviewed along with a market
segmentation analysis to derive projected occupancy and average daily rates over
the projected holding period. This included consideration of existing
competitors in the market, as well as anticipated new construction. Expenses
were projected based upon operating histories as well as industry standards,
with consideration given to existing franchise agreements; an appropriate
reserve for replacement was included, and a base management fee of 3.0% of total
revenues was also included. The projected income stream was capitalized into an
indicator of value using a discounted cash flow analysis. In those instances
where the property was not considered to be stabilized, both a current market
value and a prospective stabilized value were estimated.
In the instance of a property subject to a ground lease (where the value
reflects the leasehold interest), the annual rent was recognized as an
additional expense line item, with an adjustment made, as necessary, in the
selected capitalization or discount rate. For leased fee properties (with third
party tenants), lease revenues were reflected in the cash flows, with an
adjustment made, as necessary, in the selected capitalization or discount rate.
Conclusion
- ----------
The indicators of value derived via the methodologies summarized above were
reconciled into a market value after weighing the strengths and weaknesses of
each approach, leading to a final conclusion of value. The individual values
that comprise our conclusion are presented in the summary chart shown below.
These charts have been segregated by brand name to facilitate comprehension and
analysis.
It should be noted that the summation of these values should not be
considered a reflection of value to a single purchaser of the defined portfolio.
Furthermore, the value conclusions displayed herein are subject to HVS
International's standard Assumptions and Limiting Conditions, which are attached
at the end of this report.
Respectfully submitted,
/s/ Rodney G Clough
Rodney G. Clough, CCRA
Senior Vice President
/s/ Greg Hartmann
Greg Hartmann
Managing Director
/s/ Stephen Rushmore
Stephen Rushmore, MAI, CRE, CHA
President and Founder
CHARTS
------
- ------------------------------------------------------------------------------------------------------------------------------------
Total Excess Yr.
Estate Land Land # Year Last
- ------------------------------------------------------------------------------------------------------------------------------------
# Name Brand Address City State Type Valued Area (SF) (SF) Rooms Built Renov.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
851 MainStay Suites MS 9253 East Costilla Avenue Greenwood Village CO ES FS 53,900 - 100 1998 -
- ------------------------------------------------------------------------------------------------------------------------------------
856 MainStay Suites MS 1650 Alliant Drive Louisville KY ES FS 109,800 - 100 1998 -
- ------------------------------------------------------------------------------------------------------------------------------------
853 MainStay Suites MS 9701 N. Shannon Drive Kansas City MO ES FS 135,472 - 88 1998 -
- ------------------------------------------------------------------------------------------------------------------------------------
850 MainStay Suites MS 4709 W. Plano Parkway Plano TX ES FS 116,741 - 96 1996 -
- ------------------------------------------------------------------------------------------------------------------------------------
854 MainStay Suites MS 268 Metro Center Blvd. Warwick RI ES FS 89,864 - 94 1997 -
- ------------------------------------------------------------------------------------------------------------------------------------
867 MainStay Suites MS 200 Jubilee Drive Peabody MA ES FS 130,680 - 94 1999 -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
702 Sleep Inn SI 9257 E. Costilla Avenue Greenwood Village CO LS FS 44,900 - 119 1999 -
- ------------------------------------------------------------------------------------------------------------------------------------
778 Sleep Inn SI 15900 E. 40th Avenue Aurora CO LS FS 193,100 - 119 1997 -
- ------------------------------------------------------------------------------------------------------------------------------------
710 Sleep Inn SI 7611 NW 97th Terrace Kansas City MO LS FS 152,024 - 107 1997 -
- ------------------------------------------------------------------------------------------------------------------------------------
782 Sleep Inn SI 4801 W. Plano Parkway Plano TX LS FS 130,244 - 104 1994 -
- ------------------------------------------------------------------------------------------------------------------------------------
749 Sleep Inn SI 2 Research Court Rockville MD LS FS 114,658 - 107 1997 -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
756 Quality Inn QI 4465 S. Century Drive Salt Lake City UT LS FS 162,043 - 131 1973 1999
- -----------------------------------------------------------------------------------------------------------------------------------
718 Quality Inn QI 8008 West Broad Street Richmond VA LS FS 129,809 - 193 1985 2000
- -----------------------------------------------------------------------------------------------------------------------------------
775 Quality Inn QI 40455 Ann Arbor Road Plymouth MI LS FS 134,165 - 123 1989 1996
- ------------------------------------------------------------------------------------------------------------------------------------
771 Quality Inn
& Sts. QIS 1809 W. Meucury Blvd. Hampton VA FS FS 337,590 - 189 1972 1994/95
- ------------------------------------------------------------------------------------------------------------------------------------
707 Quality Hotel QH 1200 N. Courthouse Rd. Arlington VA FS FS 247,907 - 392 1962 1996/98
- ------------------------------------------------------------------------------------------------------------------------------------
728 Quality Hotel QH 5249 W. Century Blvd. Los Angeles CA FS FS 37,350 - 278 1972 1999
- ------------------------------------------------------------------------------------------------------------------------------------
776 Quality Suites QS 3 Research Court Rockville MD FS FS 266,251 - 124 1978 1997
- ------------------------------------------------------------------------------------------------------------------------------------
763 Quality Suites QS 1050 E. Newport Ctr. Dr. Deerfield Beach FL FS FS 119,180 - 107 1991 1994/95
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
758 Comfort Inn CI 2300 Yale Blvd. SE Albuquerque NM LS FS 95,000 - 118 1985 1997
- ------------------------------------------------------------------------------------------------------------------------------------
715 Comfort Inn CI 1200 Mae Street Hummelstown PA LS FS 103,000 - 125 1990 1998/99
- ------------------------------------------------------------------------------------------------------------------------------------
736 Comfort Inn CI 6261 Collins Avenue Miami Beach FL LS FS 101,930 - 153 1952 1997
- ------------------------------------------------------------------------------------------------------------------------------------
721 Comfort Inn CI 50 S.E. 20th Avenue Deerfield Beach FL LS FS 39,028 - 69 1975 1995
- ------------------------------------------------------------------------------------------------------------------------------------
757 Comfort Inn CI 50 Dayton Street Danvers MA LS FS 228,690 - 140 1972 1997
- ------------------------------------------------------------------------------------------------------------------------------------
729 Comfort Inn CI 90 Maine Mall Road Portland ME LS LH 100,180 - 127 1984 1999/00
- ------------------------------------------------------------------------------------------------------------------------------------
787 Comfort Inn CI 12031 Lackland Road St. Louis MO FS FS 362,419 - 169 1971 1995/99
- ------------------------------------------------------------------------------------------------------------------------------------
755 Comfort Inn CI 8315 4th Avenue Brooklyn NY LS FS 10,165 - 70 1926 1996
- ------------------------------------------------------------------------------------------------------------------------------------
784 Comfort Inn CI 5345 Broadmoor Cir. NW Canton OH LS FS 207,346 - 124 1989 1997
- ------------------------------------------------------------------------------------------------------------------------------------
783 Comfort Inn CI 17550 Rosbough Drive Middleburg Hts. OH LS FS 124,146 - 136 1989 1999
- ------------------------------------------------------------------------------------------------------------------------------------
766 Comfort Inn CI 1587 Springhill Road Vienna VA LS FS 191,072 - 250 1982 1999
- -----------------------------------------------------------------------------------------------------------------------------------
772 Comfort Suites CS 106 Bank Road Haverhill MA LS FS 119,354 - 131 1989 1997
- -----------------------------------------------------------------------------------------------------------------------------------
763 Comfort Suites CS 1040 E. Newport Ctr. Dr. Deerfield Beach FL LS FS 79,453 - 101 1991 1994/95
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel C 3333 S. Glenstone Ave. Springfield MO FS FS 358,934 - 195 1974 1996
- ------------------------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel C 2727 Ferndale Drive NW Roanoke VA FS FS 348,480 - 154 1980 1995
- ------------------------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel C 3101 Airport Blvd. Mobile AL FS FS 174,588 - 251 1978 1994
- ------------------------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel C 4453 Bonney Road Virginia Beach VA FS FS 228,037 - 149 1985 1994/95
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
12 mos.ending 12/99 Year 1 (proj.) Stab. Yrs to
- ------------------------------------------------------------------------------------------------------------------------------------
# Name City State Occ ADR RevPAR Occ. ADR RevPar Occ. ADR RevPar Stab.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO 63% $ 54.89 $ 34.69 67% $ 57.86 $ 38.77 71% $ 62.47 $ 44.35 3
- ------------------------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY 69% $ 53.77 $ 37.16 71% $ 56.21 $ 39.91 69% $ 61.74 $ 42.60 3
- ------------------------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO 48% $ 53.51 $ 25.63 50% $ 53.76 $ 26.88 60% $ 57.40 $ 34.44 3
- ------------------------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX 70% $ 59.87 $ 42.03 67% $ 62.65 $ 41.98 72% $ 65.93 $ 47.47 3
- ------------------------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI 84% $ 74.22 $ 62.27 77% $ 77.82 $ 59.92 81% $ 82.51 $ 66.83 3
- ------------------------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA 81% $ 73.98 $ 59.85 82% $ 79.48 $ 65.17 78% $ 86.74 $ 67.66 4
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO 38% $ 49.28 $ 18.73 46% $ 51.35 $ 23.62 53% $ 55.54 $ 29.44 3
- ------------------------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO 63% $ 51.72 $ 32.79 67% $ 55.57 $ 37.23 66% $ 56.04 $ 36.99 2
- ------------------------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO 50% $ 52.95 $ 26.53 62% $ 52.57 $ 32.59 63% $ 53.27 $ 33.56 2
- ------------------------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX 39% $ 50.57 $ 19.57 51% $ 50.50 $ 25.76 54% $ 53.77 $ 29.04 3
- ------------------------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD 76% $ 74.47 $ 56.67 78% $ 64.34 $ 50.19 78% $ 64.34 $ 50.19 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT 47% $ 50.36 $ 23.62 53% $ 50.59 $ 26.81 57% $ 53.74 $ 30.63 4
- ------------------------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA 63% $ 57.47 $ 35.92 62% $ 59.10 $ 36.64 63% $ 60.81 $ 38.31 2
- ------------------------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI 76% $ 68.39 $ 52.25 70% $ 72.35 $ 50.65 70% $ 75.63 $ 52.94 2
- ------------------------------------------------------------------------------------------------------------------------------------
771 Quality Inn & Sts Hampton VA 67% $ 63.73 $ 42.38 65% $ 68.40 $ 44.46 65% $ 68.40 $ 44.46 1
- ------------------------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA 63% $ 97.48 $ 60.93 68% $ 95.36 $ 64.84 68% $ 98.45 $ 66.95 2
- ------------------------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA 77% $ 54.40 $ 41.62 75% $ 59.35 $ 44.51 75% $ 60.99 $ 45.74 2
- ------------------------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD 76% $ 74.47 $ 56.67 78% $ 79.16 $ 61.74 79% $ 81.53 $ 64.41 2
- ------------------------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL 71% $ 77.90 $ 55.08 66% $ 74.82 $ 49.38 70% $ 76.82 $ 53.77 3
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM 72% $ 49.64 $ 35.89 73% $ 50.38 $ 36.78 74% $ 52.96 $ 39.19 3
- ------------------------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA 69% $ 95.53 $ 65.72 69% $ 94.09 $ 64.92 68% $ 96.33 $ 65.50 2
- ------------------------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL 74% $ 68.15 $ 50.70 78% $ 72.41 $ 56.48 80% $ 74.61 $ 59.69 2
- ------------------------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL 67% $ 64.34 $ 42.98 70% $ 67.77 $ 47.44 70% $ 67.77 $ 47.44 1
- ------------------------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA 69% $ 78.20 $ 54.04 73% $ 86.99 $ 63.50 71% $ 95.26 $ 67.63 4
- ------------------------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME 78% $ 69.18 $ 53.82 77% $ 73.40 $ 56.52 75% $ 77.67 $ 58.25 3
- ------------------------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO 56% $ 61.64 $ 34.33 60% $ 61.94 $ 37.16 61% $ 63.65 $ 38.83 2
- ------------------------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY 89% $152.04 $135.47 90% $164.64 $148.18 84% $169.16 $142.09 2
- ------------------------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH 71% $ 60.18 $ 42.79 73% $ 60.62 $ 44.25 73% $ 62.16 $ 45.38 2
- ------------------------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH 74% $ 64.38 $ 47.64 73% $ 61.05 $ 44.57 74% $ 64.85 $ 47.99 3
- ------------------------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA 69% $ 85.40 $ 59.01 70% $ 94.68 $ 66.28 71% $ 98.06 $ 69.62 2
- ------------------------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA 70% $ 72.46 $ 50.50 73% $ 79.69 $ 58.17 69% $ 84.91 $ 58.59 3
- ------------------------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL 69% $ 64.99 $ 44.58 68% $ 61.47 $ 41.80 70% $ 64.76 $ 45.33 3
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO 59% $ 52.25 $ 30.62 63% $ 55.03 $ 34.67 63% $ 55.03 $ 34.67 1
- ------------------------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA 68% $ 59.83 $ 40.68 69% $ 57.70 $ 39.81 70% $ 61.01 $ 42.71 2
- ------------------------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL 63% $50.39 $ 31.66 60% $51.63 $ 30.98 62% $54.66 $ 33.89 3
- ------------------------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA 67% $ 79.09 $ 53.07 67% $ 84.49 $ 56.61 67% $ 84.49 $ 56.61 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Stabilized Year
- ----------------------------------------------------------------------------------------------------------------------
REVENUES (% of Gross Rev.) DEPART. EXP. (% of Dept. Inc.)
- ----------------------------------------------------------------------------------------------------------------------
# Name City State Rms Food Bev Tel. 3rd Party Other Rooms F&B Tel. Other Total
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO 96.7% 0.0% 0.0% 2.9% 0.0% 0.4% 23.0% 0.0% 91.4% 0.0% 24.9%
- ----------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY 95.8% 0.0% 0.0% 3.7% 0.0% 0.4% 22.2% 0.0% 88.6% 0.0% 24.6%
- ----------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO 94.3% 0.0% 0.0% 3.9% 0.0% 1.8% 23.3% 0.0% 123.3% 65.5% 27.9%
- ----------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX 97.5% 0.0% 0.0% 2.3% 0.0% 0.1% 19.0% 0.0% 172.6% 0.0% 22.6%
- ----------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI 97.4% 0.0% 0.0% 2.4% 0.0% 0.2% 18.2% 0.0% 127.6% 0.0% 20.8%
- ----------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA 96.2% 0.0% 0.0% 3.3% 0.0% 0.5% 20.9% 0.0% 68.7% 0.0% 22.1%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO 97.3% 0.0% 0.0% 2.5% 0.0% 0.2% 31.7% 0.0% 111.6% 0.0% 33.8%
- ----------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO 97.9% 0.0% 0.0% 1.9% 0.0% 0.2% 37.9% 0.0% 97.6% 0.0% 38.9%
- ----------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO 98.4% 0.0% 0.0% 1.6% 0.0% 0.0% 32.5% 0.0% 103.8% 0.0% 33.7%
- ----------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX 98.0% 0.0% 0.0% 2.0% 0.0% 0.0% 31.8% 0.0% 222.5% 0.0% 35.7%
- ----------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD 95.9% 0.0% 0.0% 3.1% 0.0% 1.0% 27.0% 0.0% 70.0% 0.0% 28.1%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT 97.0% 0.0% 0.0% 2.1% 0.0% 0.9% 25.2% 0.0% 89.7% 0.0% 26.3%
- ----------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA 97.6% 0.0% 0.0% 2.1% 0.0% 0.4% 28.2% 0.0% 77.7% 0.0% 29.1%
- ----------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI 94.4% 2.0% 0.0% 3.1% 0.0% 0.5% 29.7% 30.1% 38.7% 0.0% 29.9%
- ----------------------------------------------------------------------------------------------------------------------
771 Quality Inn
& Sts Hampton VA 77.0% 15.9% 2.6% 2.0% 0.0% 2.6% 25.9% 77.8% 70.8% 0.0% 35.7%
- ----------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA 84.3% 11.4% 0.6% 1.7% 0.0% 2.0% 23.6% 60.1% 63.3% 0.0% 28.2%
- ----------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA 80.0% 12.1% 1.6% 1.7% 0.0% 4.6% 31.4% 74.6% 150.1% 0.0% 37.9%
- ----------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD 79.6% 15.2% 1.5% 2.0% 0.0% 1.7% 28.0% 54.9% 62.0% 0.0% 32.7%
- ----------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL 88.5% 6.3% 1.3% 2.1% 0.0% 1.9% 27.0% 89.1% 98.5% 0.0% 32.7%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM 97.7% 0.0% 0.0% 1.9% 0.0% 0.4% 29.8% 0.0% 71.5% 0.0% 30.5%
- ----------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA 96.2% 1.0% 0.0% 1.0% 0.0% 1.8% 25.1% 44.1% 100.7% 0.0% 25.3%
- ----------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL 89.6% 0.0% 0.0% 2.4% 0.0% 7.9% 26.9% 0.0% 55.0% 0.0% 25.5%
- ----------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL 91.7% 0.0% 0.0% 2.3% 0.0% 6.0% 33.3% 0.0% 75.0% 0.0% 32.2%
- ----------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA 95.6% 0.0% 0.0% 1.6% 0.0% 2.8% 26.2% 0.0% 67.2% 0.0% 26.1%
- ----------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME 98.1% 0.0% 0.0% 1.5% 0.0% 0.3% 28.4% 0.0% 82.7% 0.0% 29.1%
- ----------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO 87.2% 8.4% 1.4% 2.4% 0.0% 0.7% 32.5% 97.5% 72.5% 0.0% 39.6%
- ----------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY 96.7% 0.0% 0.0% 1.6% 0.0% 1.7% 22.6% 0.0% 47.9% 0.0% 22.6%
- ----------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH 94.1% 3.0% 0.0% 2.7% 0.0% 0.3% 29.3% 23.6% 75.6% 0.0% 30.6%
- ----------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH 93.8% 4.2% 0.0% 1.7% 0.0% 0.3% 30.9% 37.7% 80.8% 0.0% 32.0%
- ----------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA 94.9% 0.3% 0.0% 1.8% 0.0% 3.0% 24.3% 0.0% 64.4% 0.0% 24.3%
- ----------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA 96.0% 0.5% 0.0% 3.3% 0.0% 0.2% 25.4% 62.4% 37.8% 0.0% 25.9%
- ----------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL 95.7% 0.0% 0.0% 2.7% 0.0% 1.6% 32.0% 0.0% 98.5% 0.0% 33.3%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO 61.0% 26.9% 9.5% 1.8% 0.0% 0.7% 31.1% 73.6% 91.9% 0.0% 47.5%
- ----------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA 64.8% 30.8% 2.0% 1.8% 0.0% 0.6% 30.2% 76.5% 57.5% 0.0% 45.7%
- ----------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL 71.9% 21.7% 2.7% 1.7% 0.0% 2.0% 29.8% 75.2% 72.6% 0.0% 41.0%
- ----------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA 74.1% 20.7% 2.6% 1.4% 0.0% 1.1% 23.7% 62.0% 89.1% 0.0% 33.3%
- ----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Stab.Yr.
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Fixed Expenses
(% of Total Revenues) (% of Total Revenues) NOI as
- ------------------------------------------------------------------------------------------------------------------------------------
Ops/ Gnd % of
# Name City State A&G Mgmt Mkt'g FranFee Maint Energy Total Taxes Insur. Res. Rent Total Rev.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO 8.2% 3.0% 6.0% 6.8% 5.0% 3.3% 32.3% 4.9% 0.5% 4.0% 0.0% 9.4% 33.4%
- ------------------------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY 8.6% 3.0% 4.9% 6.7% 4.5% 3.8% 31.5% 2.5% 0.5% 4.0% 0.0% 7.0% 36.9%
- ------------------------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO 8.0% 3.0% 6.6% 6.6% 4.5% 5.8% 34.5% 8.3% 0.6% 4.0% 0.0% 12.9% 24.7%
- ------------------------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX 9.3% 3.0% 4.5% 6.8% 4.0% 4.8% 32.4% 6.4% 0.5% 4.0% 0.0% 10.9% 34.1%
- ------------------------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI 8.0% 3.0% 3.5% 6.8% 3.3% 3.5% 28.1% 6.3% 0.4% 4.0% 0.0% 10.7% 40.4%
- ------------------------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA 9.5% 3.0% 3.0% 6.7% 3.0% 5.0% 30.2% 7.4% 0.6% 4.0% 0.0% 12.0% 35.4%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO 8.8% 3.0% 4.7% 5.2% 4.6% 3.7% 30.0% 7.3% 0.7% 4.0% 0.0% 12.0% 24.2%
- ------------------------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO 9.8% 3.0% 6.1% 5.2% 5.3% 2.7% 32.1% 7.7% 0.6% 4.0% 0.0% 12.3% 16.7%
- ------------------------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO 8.2% 3.0% 4.9% 5.2% 5.1% 4.2% 30.6% 5.8% 0.6% 4.0% 0.0% 10.4% 25.3%
- ------------------------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX 8.8% 3.0% 4.9% 5.2% 5.7% 3.9% 31.5% 6.6% 0.7% 4.0% 0.0% 11.3% 21.5%
- ------------------------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD 8.0% 3.0% 4.3% 5.1% 3.8% 3.6% 27.8% 3.1% 0.5% 4.0% 0.0% 7.6% 36.5%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT 12.7% 3.0% 8.0% 3.7% 7.0% 4.2% 38.6% 2.8% 0.8% 4.0% 0.0% 7.6% 27.5%
- ------------------------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA 11.4% 3.0% 4.3% 5.2% 6.1% 4.2% 34.2% 1.9% 0.6% 5.0% 0.0% 7.5% 29.2%
- ------------------------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI 8.2% 3.0% 4.7% 4.1% 5.5% 3.7% 29.2% 5.2% 0.5% 4.0% 0.0% 9.7% 31.2%
- ------------------------------------------------------------------------------------------------------------------------------------
771 Quality Inn
& Sts Hampton VA 11.5% 3.0% 8.4% 4.1% 4.8% 5.4% 37.2% 2.1% 0.5% 4.0% 0.0% 6.6% 20.5%
- ------------------------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA 8.2% 3.0% 4.0% 3.6% 4.8% 3.1% 26.7% 2.9% 0.3% 4.0% 0.0% 7.2% 37.9%
- ------------------------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA 9.8% 3.0% 4.1% 3.0% 7.8% 4.7% 32.4% 2.1% 0.5% 5.0% 0.0% 7.6% 21.9%
- ------------------------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD 8.6% 3.0% 4.0% 4.2% 4.0% 4.5% 28.3% 3.4% 0.3% 4.0% 0.0% 7.7% 31.3%
- ------------------------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL 9.9% 3.0% 3.6% 4.7% 8.0% 4.4% 33.6% 5.7% 0.6% 4.0% 0.0% 10.3% 23.4%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM 7.7% 3.0% 3.0% 6.2% 4.7% 4.0% 28.6% 2.4% 0.7% 4.0% 0.0% 7.1% 33.8%
- ------------------------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA 7.2% 3.0% 3.5% 6.1% 3.6% 4.4% 27.8% 3.4% 0.4% 4.0% 0.0% 7.8% 38.8%
- ------------------------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL 9.4% 3.0% 4.5% 6.4% 5.6% 3.8% 32.7% 5.6% 0.4% 4.0% 0.0% 10.0% 31.8%
- ------------------------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL 8.5% 3.0% 2.5% 5.8% 5.3% 4.6% 29.7% 6.0% 0.7% 4.0% 0.0% 10.7% 27.4%
- ------------------------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA 8.3% 3.0% 3.9% 6.0% 4.3% 5.5% 31.0% 2.1% 0.4% 4.0% 0.0% 6.5% 36.4%
- ------------------------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME 8.1% 3.0% 3.2% 6.2% 3.6% 4.3% 28.4% 3.2% 0.4% 4.0% 4.9% 12.5% 30.0%
- ------------------------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO 12.2% 3.0% 6.0% 4.6% 7.8% 5.6% 39.2% 5.1% 0.6% 4.0% 0.0% 9.7% 11.5%
- ------------------------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY 7.3% 3.0% 1.6% 6.1% 3.3% 3.5% 24.8% 4.5% 0.2% 5.0% -2.5% 7.2% 45.4%
- ------------------------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH 8.8% 3.0% 5.1% 5.0% 6.7% 3.4% 32.0% 2.9% 0.5% 4.0% 0.0% 7.4% 30.0%
- ------------------------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH 8.9% 3.0% 5.0% 5.0% 4.9% 4.7% 31.5% 4.7% 0.6% 4.0% 0.0% 9.3% 27.2%
- ------------------------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA 7.5% 3.0% 2.9% 5.0% 3.8% 2.0% 24.2% 2.5% 0.3% 4.0% 0.0% 6.8% 44.7%
- ------------------------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA 9.7% 3.0% 3.4% 5.5% 4.7% 3.7% 30.0% 3.0% 0.4% 4.0% 0.0% 7.4% 36.7%
- ------------------------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL 9.2% 3.0% 3.7% 6.0% 7.4% 5.7% 35.0% 5.8% 0.5% 4.0% 0.0% 10.3% 21.4%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO 11.9% 3.0% 6.8% 2.3% 5.3% 4.2% 33.5% 1.7% 0.5% 4.0% 0.0% 6.2% 12.8%
- ------------------------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA 10.0% 3.0% 7.4% 2.4% 5.1% 4.5% 32.4% 2.5% 0.5% 4.0% 0.0% 7.0% 14.9%
- ------------------------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL 8.2% 3.0% 3.1% 5.6% 7.5% 8.4% 35.8% 1.4% 0.7% 4.0% 0.0% 6.1% 17.1%
- ------------------------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA 10.4% 3.0% 6.8% 3.2% 6.8% 4.6% 34.8% 2.7% 0.7% 4.0% 0.0% 7.4% 24.8%
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
INCOME CAPITALIZATION APPROACH
- -------------------------------------------------------------------------------------------------------------------
Growth Rates Holding Discount Term. Indicated
- -------------------------------------------------------------------------------------------------------------------
# Name City State ADR Exp. Period Rate Cap Rate Mkt. Value
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO 3.0% 3.0% 10 13.61% 11.50% $ 4,700,000
- -------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY 3.0% 3.0% 10 13.50% 11.50% $ 5,100,000
- -------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO 3.0% 3.0% 10 13.82% 11.50% $ 2,300,000
- -------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX 3.0% 3.0% 10 13.60% 11.50% $ 4,900,000
- -------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI 3.0% 3.0% 10 13.57% 11.50% $ 8,000,000
- -------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA 3.0% 3.0% 10 13.38% 11.50% $ 7,300,000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO 3.0% 3.0% 10 14.80% 12.00% $ 2,400,000
- -------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO 3.0% 3.0% 10 13.97% 11.50% $ 2,400,000
- -------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO 3.0% 3.0% 10 13.85% 12.00% $ 2,900,000
- -------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX 3.0% 3.0% 10 14.60% 12.00% $ 1,900,000
- -------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD 3.0% 3.0% 10 13.47% 11.50% $ 6,800,000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT 3.0% 3.0% 10 14.51% 12.50% $ 3,300,000
- -------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA 3.0% 3.0% 10 14.09% 11.50% $ 6,900,000
- -------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI 3.0% 3.0% 10 13.83% 12.00% $ 6,700,000
- -------------------------------------------------------------------------------------------------------------------
771 Quality Inn & Sts.Hampton VA 3.0% 3.0% 10 13.47% 11.50% $ 7,400,000
- -------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA 3.0% 3.0% 10 13.48% 11.50% $ 38,000,000
- -------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA 3.0% 3.0% 10 14.60% 12.00% $ 10,800,000
- -------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD 3.0% 3.0% 10 13.49% 11.50% $ 10,100,000
- -------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL 3.0% 3.0% 10 13.62% 11.50% $ 4,700,000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM 3.0% 3.0% 10 13.44% 12.00% $ 5,000,000
- -------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA 3.0% 3.0% 10 13.79% 12.00% $ 10,200,000
- -------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL 3.0% 3.0% 10 13.51% 11.50% $ 10,400,000
- -------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL 3.0% 3.0% 10 13.48% 11.50% $ 3,300,000
- -------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA 3.0% 3.0% 10 13.47% 11.50% $ 11,000,000
- -------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME 3.0% 3.0% 10 13.42% 12.00% $ 6,600,000
- -------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO 3.0% 3.0% 10 13.57% 11.50% $ 2,700,000
- -------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY 3.0% 3.0% 10 14.16% 12.50% $ 14,700,000 $
- -------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH 3.0% 3.0% 10 13.48% 11.50% $ 5,800,000
- -------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH 3.0% 3.0% 10 13.50% 11.50% $ 5,800,000
- -------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA 3.0% 3.0% 10 13.50% 11.50% $ 26,400,000
- -------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA 3.0% 3.0% 10 13.40% 11.50% $ 9,300,000
- -------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL 3.0% 3.0% 10 13.70% 11.50% $ 3,100,000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO 3.0% 3.0% 10 13.49% 11.50% $ 4,700,000
- -------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA 3.0% 3.0% 10 13.15% 11.00% $ 4,900,000
- -------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL 3.0% 3.0% 10 13.93% 12.00% $ 6,000,000
- -------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA 3.0% 3.0% 10 13.5% 11.5% $ 9,600,000
- -------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
SALES COMPARISON APPROACH
- -----------------------------------------------------------------------------------------------------------------------
Price/Rm (Unadj) Indicated Value
- -----------------------------------------------------------------------------------------------------------------------
# Name City State Low High Mkt. Value per Room
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO $ 41,333 $ 63,380 $4.1MM - $6.3MM $41,000-$63,000
- -----------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY $ 26,000 $ 71,000 $2.6 MM - $7.1 MM 26000 - 71000
- -----------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO $ 21,000 $ 47,000 $2.0 MM - $4.0 MM 21000 - 47000
- -----------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX $ 46,000 $ 58,000 $4.4MM - $5.6MM 46000 - 58000
- -----------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI $ 63,000 $ 99,000 $5.9 MM - $9.3 MM 63000 - 99000
- -----------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA $ 57,000 $102,000 $5.4 MM - $9.6 MM 57000 - 102000
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO $ 17,000 $ 26,000 $2.0 MM - $3.1 MM 17000 - 26000
- -----------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO $ 17,000 $ 26,000 $2.0 MM - $3.1 MM 17000 - 26000
- -----------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO $ 21,000 $ 47,000 $2.2 MM - $5.0 MM 21000 - 47000
- -----------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX $ 15,000 $ 25,000 $1.6MM - $2.6MM 15000 - 25000
- -----------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD $ 61,000 $ 66,000 $6.6 MM - $7.0 MM 61000 - 66000
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT $ 23,000 $ 28,000 $3.0 MM - $3.7 MM 23000 - 28000
- -----------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA $ 30,000 $ 47,000 $5.8 MM - $9.1 MM 30000 - 47000
- -----------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI $ 45,000 $ 91,000 $5.5 MM - $11.2 MM 45000 - 91000
- -----------------------------------------------------------------------------------------------------------------------
771 Quality Inn & Sts.Hampton VA $ 33,000 $ 54,000 $6.3 MM - $10.2 MM 33000 - 54000
- -----------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA $ 94,000 $121,000 $36.8 MM - $47.5 MM 94000 - 121000
- -----------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA $ 32,000 $111,000 $8.9 MM - $30.8 MM 32000 - 111000
- -----------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD $ 61,000 $ 94,000 $7.6 MM - $11.7 MM 61000 - 94000
- -----------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL $ 42,000 $ 57,000 $4.5 MM - $6.1 MM 42000 - 57000
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM $ 26,000 $ 50,000 $3.1 MM - $5.9 MM 26000 - 50000
- -----------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA $ 57,000 $ 99,000 $7.1 MM - $12.4 MM 57000 - 99000
- -----------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL $ 55,000 $ 80,000 $8.4 MM - $12.2 MM 55000 - 80000
- -----------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL $ 42,000 $ 68,000 $2.9 MM - $4.7 MM 42000 - 68000
- -----------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA $ 57,000 $102,000 $8.0 MM - $14.3 MM 57000 - 102000
- -----------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME $ 49,000 $ 80,000 $6.2 MM - $10.3 MM 49000 - 80000
- -----------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO $ 11,000 $ 25,000 $1.9 MM - $4.2 MM 11000 - 25000
- -----------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY $151,000 $228,000 $10.6 MM - $16.0 MM 151000 - 228000
- -----------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH $ 40,000 $ 49,000 $5.0 MM - $6.1 MM 40000 - 49000
- -----------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH $ 40,000 $ 49,000 $5.4 MM - $6.7 MM 40000 - 49000
- -----------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA $ 94,000 $121,000 $23.5 MM - $30.3 MM 94000 - 121000
- -----------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA $ 57,000 $102,000 $7.5 MM - $13.4 MM 57000 - 102000
- -----------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL $ 25,000 $ 38,000 $2.5 MM - $3.8 MM 25000 - 38000
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO $ 16,000 $ 30,000 $3.1 MM - $5.9 MM 16000 - 30000
- -----------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA $ 24,000 $ 54,000 $3.7 MM - $8.3 MM 24000 - 54000
- -----------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL $ 19,000 $ 46,000 $4.8MM - $11.5MM 19000 - 46000
- -----------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA $ 57,000 $ 72,000 $8.5 MM - $10.7 MM 57000 - 72000
- -----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CONCLUSIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Market Value Date of Overall Stab Go- FFE Stabilized
- ------------------------------------------------------------------------------------------------------------------------------------
# Name City State Value per room Value Rate in Rate Allocation Value
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO $4,700,000 $47,000 10/1/2000 5.3% 11.2% $900,000 $5,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY $5,100,000 $51,000 10/1/2000 11.4% 11.0% $900,000 $5,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO $2,300,000 $26,136 10/1/2000 5.3% 11.2% $801,000 $2,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
850 MainStay Suites Plano TX $4,900,000 $51,042 10/1/2000 10.1% 11.2% $672,000 $5,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI $8,000,000 $85,106 10/1/2000 14.1% 11.2% $376,000 $8,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA $7,300,000 $77,660 10/1/2000 14.4% 10.8% $760,000 $7,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO $2,400,000 $20,168 10/1/2000 6.6% 12.7% $857,000 $2,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO $2,400,000 $20,168 10/1/2000 6.1% 11.1% $666,000 $2,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO $2,900,000 $27,103 10/1/2000 7.3% 11.4% $600,000 $3,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
782 Sleep Inn Plano TX $1,900,000 $18,269 10/1/2000 NA 12.2% $332,880 $2,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD $6,800,000 $63,551 10/1/2000 NA 11.0% $618,000 $6,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT $3,300,000 $25,191 10/1/2000 NA 11.1% $314,000 $3,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
718 Quality Inn Richmond VA $6,900,000 $35,751 10/1/2000 10.5% 11.4% $1,080,800 $7,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI $6,700,000 $54,472 10/1/2000 11.3% 11.4% $554,000 $6,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
771 Quality Inn & Sts Hampton VA $7,400,000 $39,153 10/1/2000 12.5% 11.0% $800,000 $7,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA $38,000,000 $96,939 10/1/2000 10.6% 11.0% $3,000,000 $39,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA $10,800,000 $38,849 10/1/2000 11.4% 11.4% $580,000 $11,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
776 Quality Suites Rockville MD $10,100,000 $81,452 10/1/2000 NA 10.1% $1,388,800 $10,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL $4,700,000 $43,925 10/1/2000 9.9% 11.1% $770,000 $5,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM $5,000,000 $42,373 10/1/2000 11.7% 11.1% $472,000 $5,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA $10,200,000 $81,600 10/1/2000 11.3% 13.3% $200,000 $10,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL $10,400,000 $67,974 10/1/2000 9.1% 11.0% $1,135,000 $10,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL $3,000,000 $47,826 10/1/2000 8.2% 11.0% $512,000 $3,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA $11,000,000 $78,571 10/1/2000 9.9% 11.0% $560,000 $12,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
729 Comfort Inn Portland ME $6,600,000 $51,969 10/1/2000 12.4% 11.7% $406,000 $7,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO $2,700,000 $15,976 10/1/2000 4.2% 11.2% $541,000 $2,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY $14,000,000 $200,000 10/1/2000 12.3% 12.2% $336,000 $14,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
784 Comfort Inn Canton OH $5,800,000 $46,774 10/1/2000 12.1% 10.9% $397,000 $6,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH $5,800,000 $42,647 10/1/2000 11.2% 10.9% $435,000 $6,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA $26,400,000 $105,600 10/1/2000 9.9% 11.0% $1,125,000 $27,200,000
- ------------------------------------------------------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA $9,300,000 $70,992 10/1/2000 10.6% 10.8% $590,000 $9,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL $3,100,000 $30,693 10/1/2000 10.9% 11.3% $485,000 $3,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO $4,700,000 $24,103 10/1/2000 9.9% 10.9% $1,000,000 $4,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA $4,900,000 $31,818 10/1/2000 10.9% 10.6% $1,000,000 $5,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL $6,000,000 $23,904 10/1/2000 10.3% 11.6% $652,600 $6,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA $9,600,000 $64,430 10/1/2000 10.9% 10.9% $774,800 $9,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
CONCLUSIONS
- -----------------------------------------------------------------------------------------
Date of Insurable Appraisal
- -----------------------------------------------------------------------------------------
# Name City State Value Value Firm
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
851 MainStay Suites Greenwood Village CO 10/1/2002 $5,500,000 HVS
- -----------------------------------------------------------------------------------------
856 MainStay Suites Louisville KY 10/1/2002 $5,500,000 HVS
- -----------------------------------------------------------------------------------------
853 MainStay Suites Kansas City MO 10/1/2002 $4,900,000 HVS
- -----------------------------------------------------------------------------------------
850 MainStay Suites Plano TX 10/1/2002 $5,300,000 HVS
- -----------------------------------------------------------------------------------------
854 MainStay Suites Warwick RI 10/1/2002 $5,200,000 HVS
- -----------------------------------------------------------------------------------------
867 MainStay Suites Peabody MA 10/1/2003 $4,800,000 HVS
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
702 Sleep Inn Greenwood Village CO 10/1/2002 $5,200,000 HVS
- -----------------------------------------------------------------------------------------
778 Sleep Inn Aurora CO 10/1/2001 $5,200,000 HVS
- -----------------------------------------------------------------------------------------
710 Sleep Inn Kansas City MO 10/1/2001 $4,700,000 HVS
- -----------------------------------------------------------------------------------------
782 Sleep Inn Plano TX 10/1/2002 $4,600,000 HVS
- -----------------------------------------------------------------------------------------
749 Sleep Inn Rockville MD 10/1/2000 $4,500,000 HVS
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
756 Quality Inn Salt Lake City UT 10/1/2003 $5,800,000 HVS
- -----------------------------------------------------------------------------------------
718 Quality Inn Richmond VA 10/1/2001 $8,500,000 HVS
- -----------------------------------------------------------------------------------------
775 Quality Inn Plymouth MI 10/1/2001 $5,400,000 HVS
- -----------------------------------------------------------------------------------------
771 Quality Inn & Sts Hampton VA 10/1/2000 $13,100,000 HVS
- -----------------------------------------------------------------------------------------
707 Quality Hotel Arlington VA 10/1/2001 $24,800,000 HVS
- -----------------------------------------------------------------------------------------
728 Quality Hotel Los Angeles CA 10/1/2001 $15,200,000 HVS
- -----------------------------------------------------------------------------------------
776 Quality Suites Rockville MD 10/1/2001 $8,700,000 HVS
- -----------------------------------------------------------------------------------------
763 Quality Suites Deerfield Beach FL 10/1/2002 $6,100,000 HVS
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
758 Comfort Inn Albuquerque NM 10/1/2002 $5,200,000 HVS
- -----------------------------------------------------------------------------------------
715 Comfort Inn Hummelstown PA 10/1/2001 $6,200,000 HVS
- -----------------------------------------------------------------------------------------
736 Comfort Inn Miami Beach FL 10/1/2001 $8,500,000 HVS
- -----------------------------------------------------------------------------------------
721 Comfort Inn Deerfield Beach FL 10/1/2000 $3,200,000 HVS
- -----------------------------------------------------------------------------------------
757 Comfort Inn Danvers MA 10/1/2003 $6,200,000 HVS
- -----------------------------------------------------------------------------------------
729 Comfort Inn Portland ME 10/1/2002 $5,600,000 HVS
- -----------------------------------------------------------------------------------------
787 Comfort Inn St. Louis MO 10/1/2001 $7,400,000 HVS
- -----------------------------------------------------------------------------------------
755 Comfort Inn Brooklyn NY 10/1/2001 $4,900,000 HVS
- -----------------------------------------------------------------------------------------
784 Comfort Inn Canton OH 10/1/2001 $5,500,000 HVS
- -----------------------------------------------------------------------------------------
783 Comfort Inn Middleburg Hts. OH 10/1/2002 $6,000,000 HVS
- -----------------------------------------------------------------------------------------
766 Comfort Inn Vienna VA 10/1/2001 $11,000,000 HVS
- -----------------------------------------------------------------------------------------
772 Comfort Suites Haverhill MA 10/1/2002 $6,200,000 HVS
- -----------------------------------------------------------------------------------------
763 Comfort Suites Deerfield Beach FL 10/1/2002 $4,300,000 HVS
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
753 Clarion Hotel Springfield MO 10/1/2000 $13,200,000 HVS
- -----------------------------------------------------------------------------------------
751 Clarion Hotel Roanoke VA 10/1/2001 $10,500,000 HVS
- -----------------------------------------------------------------------------------------
785 Clarion Hotel Mobile AL 10/1/2002 $17,000,000 HVS
- -----------------------------------------------------------------------------------------
773 Clarion Hotel Virginia Beach VA 10/1/2000 $10,100,000 HVS
- -----------------------------------------------------------------------------------------
ASSUMPTIONS AND LIMITING CONDITIONS
-----------------------------------
1. This report is to be used in whole and not in part.
2. No responsibility is assumed for matters of a legal nature, nor do we
render any opinion as to title, which is assumed to be marketable and free
of any deed restrictions and easements. The property is valued as though
free and clear unless otherwise stated.
3. We assume that there are no hidden or unapparent conditions of the sub-
soil or structures, such as underground storage tanks, that would render
the property more or less valuable. No responsibility is assumed for these
conditions or for any engineering that may be required to discover them.
4. We have not considered the presence of potentially hazardous materials
such as asbestos, urea formaldehyde foam insulation, PCBs, any form of
toxic waste, polychlorinated biphenyls, pesticides, or lead-based paints.
The appraisers are not qualified to detect hazardous substances, and we
urge the client to retain an expert in this field if desired.
5. The Americans with Disabilities Act (ADA) became effective on January 26,
1992. We have conducted no specific compliance survey to determine whether
the subject property is operating in accordance with the various detailed
requirements of the ADA. It is possible that the property does not conform
to the requirements of the act, and this could have an unfavorable effect
on value. Because we have no direct evidence regarding this issue, our
estimate of value does not consider possible non-compliance with the ADA.
6. We have made no survey of the property, and we assume no responsibility
in connection with such matters. Sketches, photographs, maps, and other
exhibits are included to assist the reader in visualizing the property. It
is assumed that the use of the land and improvements is within the
boundaries of the property described, and that there is no encroachment or
trespass unless noted.
7. All information, financial operating statements, estimates, and opinions
obtained from parties not employed by Hospitality Valuation Services are
assumed to be true and correct. We can assume no liability resulting from
misinformation.
8. Unless noted, we assume that there are no encroachments, zoning
violations, or building violations encumbering the subject property.
9. The property is assumed to be in full compliance with all applicable
federal, state, local, and private codes, laws, consents, licenses, and
regulations (including a liquor license where appropriate), and that all
licenses, permits, certificates, franchises, and so forth can be freely
renewed or transferred to a purchaser.
10. All mortgages, liens, encumbrances, leases, and servitudes have been
disregarded unless specified otherwise.
11. None of this material may be reproduced in any form without our written
permission, and the report cannot be disseminated to the public through
advertising, public relations, news, sales, or other media.
12. We are not required to give testimony or attendance in court by reason of
this analysis without previous arrangements, and only when our standard per
diem fees and travel costs are paid prior to the appearance.
13. If the reader is making a fiduciary or individual investment decision and
has any questions concerning the material presented in this report, it is
recommended that the reader contact us.
14. We take no responsibility for any events or circumstances that take place
subsequent to either the date of value or the date of our field inspection,
whichever occurs first.
15. The quality of a lodging facility's on-site management has a direct
effect on a property's economic viability and value. The financial
forecasts presented in this analysis assume responsible ownership and
competent management. Any departure from this assumption may have a
significant impact on the projected operating results and the value
estimate.
16. The estimated operating results presented in this report are based on an
evaluation of the overall economy, and neither take into account nor make
provision for the effect of any sharp rise or decline in local or national
economic conditions. To the extent that wages and other operating expenses
may advance during the economic life of the property, we expect that the
prices of rooms, food, beverages, and services will be adjusted to at least
offset those advances. We do not warrant that the estimates will be
attained, but they have been prepared on the basis of information obtained
during the course of this study and are intended to reflect the
expectations of a typical hotel buyer.
17. This analysis assumes continuation of all Internal Revenue Service tax
code provisions as stated or interpreted on either the date of value or the
date of our field inspection, whichever occurs first.
18. Many of the figures presented in this report were generated using
sophisticated computer models that make calculations based on numbers
carried out to three or more decimal places. In the interest of simplicity,
most numbers have been rounded to the nearest tenth of a percent. Thus,
these figures may be subject to small rounding errors.
19. Appraising hotels is both a science and an art. Although this analysis
employs various mathematical calculations to provide value indications, the
final estimate is subjective and may be influenced by our experience and
other factors not specifically set forth in this report.
20. Any distribution of the total value between the land and improvements or
between partial ownership interests applies only under the stated use.
Moreover, separate
allocations between components are not valid if this report is used in
conjunction with any other analysis.
21. This study was prepared by Hospitality Valuation Services, a division of
H&R Valuation Services, Inc. All opinions, recommendations, and conclusions
expressed during the course of this assignment are rendered by the staff of
H&R Valuation Services, Inc. as employees, rather than as individuals.