Growth Strategy:

We believe that occupancy and average daily rate (ADR) and consequently revenue per available room (RevPAR) in our continuing operations will increase as a result of the continued improvement in lodging industry supply and demand fundamentals, our hotel renovation and repositioning program, and our strong management team. We believe our planned capital expenditures and operational improvements will continue to generate increased revenues and enhance our financial performance. We will continue to monitor every aspect of our operations to identify opportunities to improve operating results.

Based on the recent trends in lodging industry fundamentals, we believe it is an opportune time in the lodging industry cycle to own and manage hotels. We believe our revenue growth and resulting improvements in our results of operations will be derived from the upgrades we have made in our product quality and continual focus on our service levels.