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<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b>
</b></div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Organization and Description of Business</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Ashford Hospitality Trust, Inc., together with its subsidiaries (“Ashford”), is a self-advised
real estate investment trust (“REIT”) focused on investing in the hospitality industry across all
segments and in all methods including direct real estate, securities, equity, and debt. We
commenced operations in August 2003 with the acquisition of six hotels in connection with our
initial public offering. We own our lodging investments and conduct our business through Ashford
Hospitality Limited Partnership, our operating partnership. Ashford OP General Partner LLC, a
wholly-owned subsidiary of Ashford, serves as the sole general partner of our operating
partnership. In this report, the terms “the Company,” “we,” “us” or “our” mean Ashford Hospitality
Trust, Inc. and all entities included in its consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2011, we owned 92 hotel properties directly, and five hotel properties through
majority-owned investments in joint ventures, which represents 20,774 total rooms, or 20,458 net
rooms excluding those attributable to our joint venture partners. All of these hotel properties are
located in the United States. In March 2011, we acquired 96 units of hotel condominiums at
WorldQuest Resort in Orlando, Florida for $12.0 million. Also in March 2011, with an investment of
$150.0 million, we converted our interest in a joint venture that held a mezzanine loan into a
71.74% common equity interest and a $25.0 million preferred equity interest in a new joint venture
(the “PIM Highland JV”) that holds 28 high quality full and select service hotel properties with
8,084 total rooms, or 5,800 net rooms excluding those attributable to our joint venture partner.
See Notes 3 and 6. At June 30, 2011, we also wholly owned a mezzanine loan receivable with a
carrying value of $3.0 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For federal income tax purposes, we elected to be treated as a REIT, which imposes limitations
related to operating hotels. As of June 30, 2011, 96 of our 97 hotel properties were leased or
owned by our wholly-owned subsidiaries that are treated as taxable REIT subsidiaries for federal
income tax purposes (collectively, these subsidiaries are referred to as “Ashford TRS”). Ashford
TRS then engages third-party or affiliated hotel management companies to operate the hotels under
management contracts. Hotel operating results related to these properties are included in the
consolidated statements of operations. As of June 30, 2011, one hotel property was leased on a
triple-net lease basis to a third-party tenant who operates the hotel. Rental income from this
operating lease is included in the consolidated results of operations. With respect to our
unconsolidated joint venture, PIM Highland JV, the 28 hotels are leased to its wholly-owned
subsidiary that is treated as a taxable REIT subsidiary for federal income tax purposes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Remington Lodging & Hospitality, LLC (“Remington Lodging”), our primary property manager, is
beneficially wholly owned by Mr. Archie Bennett, Jr., our Chairman, and Mr. Monty J. Bennett, our
Chief Executive Officer. As of June 30, 2011, Remington Lodging managed 46 of our 97 legacy hotel
properties, while third-party management companies managed the remaining 51 hotel properties. In
addition, Remington Lodging also managed 16 of the 28 PIM Highland JV hotel properties and Remington Parsippany Employers LLC managed one of the 28 PIM Highland JV.
</div>
</div>
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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Significant Accounting Policies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Basis of Presentation </i></b></u>— The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim
financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. These consolidated financial statements include the accounts of Ashford, its
majority-owned subsidiaries and its majority-owned joint ventures in which it has a controlling
interest. All significant inter-company accounts and transactions between consolidated entities
have been eliminated in these consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     These financial statements and related notes should be read in conjunction with the
consolidated financial statements and notes thereto included in our 2010 Annual Report to
Shareholders on Form 10-K.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following items affect our reporting comparability related to our consolidated financial
statements:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Some of our properties’ operations have historically been seasonal. This seasonality
pattern causes fluctuations in the operating results. Consequently, operating results for
the three and six months ended June 30, 2011 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2011.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Marriott International, Inc. (“Marriott”) manages 40 of our properties. For these
Marriott-managed hotels, the fiscal year reflects twelve weeks of operations in each of the
first three quarters of the year and sixteen weeks for the fourth quarter of the year.
Therefore, in any given quarterly period, period-over-period results will have different
ending dates. For Marriott-managed hotels, the second quarters of 2011 and 2010 ended June
17 and June 18, respectively.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Use of Estimates</i></b></u> — The preparation of these consolidated financial statements in
accordance with accounting principles generally accepted in the United States requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. Actual results could differ
from those estimates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Investments in Hotel Properties</i></b></u> — Hotel properties are generally stated at cost.
However, the remaining four hotel properties contributed upon Ashford’s formation in 2003 that are
still owned by Ashford (the “Initial Properties”) are stated at the predecessor’s historical cost,
net of impairment charges, if any, plus a noncontrolling interest partial step-up related to the
acquisition of noncontrolling interests from third parties associated with four of the Initial
Properties. For hotel properties owned through our majority-owned joint ventures, the carrying
basis attributable to the joint venture partners’ minority ownership is recorded at the
predecessor’s historical cost, net of any impairment charges, while the carrying basis attributable
to our majority ownership is recorded based on the allocated purchase price of our ownership
interests in the joint ventures. All improvements and additions which extend the useful life of the
hotel properties are capitalized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Impairment of Investment in Hotel Properties</i></b></u> — Hotel properties are reviewed for
impairment whenever events or changes in circumstances indicate that their carrying amounts may not
be recoverable. We test impairment by using current or projected cash flows over the estimated
useful life of the asset. In evaluating the impairment of hotel properties, we make many
assumptions and estimates, including projected cash flows, expected holding period and expected
useful life. We may also use fair values of comparable assets. If an asset is deemed to be
impaired, we record an impairment charge for the amount that the property’s net book value exceeds
its estimated fair value. No impairment charges were recorded for investment in hotel properties
included in our continuing operations for the three and six months ended June 30, 2011 and 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Notes Receivable</i></b></u> — We provide mezzanine and first-mortgage financing in the form of
notes receivable. These loans are held for investment and are intended to be held to maturity and
accordingly, are recorded at cost, net of unamortized loan origination costs and fees, loan
purchase discounts and net of the allowance for losses when a loan is deemed to be impaired.
Premiums, discounts, and net origination fees are amortized or accreted as an adjustment to
interest income using the effective interest method over the life of the loan. We discontinue
recording interest and amortizing discounts/premiums when the contractual payment of interest
and/or principal is not received. Payments received on impaired nonaccrual loans are recorded as
adjustments to impairment charges. No interest income was recorded for the three and six months
ended June 30, 2011, and $346,000 and $683,000 interest income was recognized for the three and six
months ended June 30, 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Variable interest entities, as defined by authoritative accounting guidance, must be
consolidated by their controlling interest beneficiaries if the variable interest entities do not
effectively disperse risks among the parties involved. Our mezzanine and first-mortgage notes
receivable are each secured by various hotel properties or partnership interests in hotel
properties and are subordinate to the controlling interest in the secured hotel properties. All
such notes receivable are considered to be variable interests in the entities that own the related
hotels. However, we are not considered to be the primary beneficiary of these hotel properties as a result of holding these loans. Therefore, we
do not consolidate the hotels for which we have provided financing. We will evaluate the interests
in entities acquired or created in the future
to determine whether such entities should be consolidated. In evaluating variable interest
entities, our analysis involves considerable management judgment and assumptions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Impairment of Notes Receivable</i></b></u> — We review notes receivables for impairment in each
reporting period pursuant to the applicable authoritative accounting guidance. A loan is impaired
when, based on current information and events, it is probable that we will be unable to collect all
amounts recorded as assets on the balance sheet. We apply normal loan review and underwriting
procedures (as may be implemented or modified from time to time) in making that judgment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     When a loan is impaired, we measure impairment based on the present value of expected cash
flows discounted at the loan’s effective interest rate against the value of the asset recorded on
the balance sheet. We may also measure impairment based on a loan’s observable market price or the
fair value of collateral if the loan is collateral dependent. If a loan is deemed to be impaired,
we record a valuation allowance through a charge to earnings for any shortfall. Our assessment of
impairment is based on considerable judgment and estimates. No impairment charges were recorded
during the three and six months ended June 30, 2011 or 2010. Valuation adjustments of $4.3 million
and $4.7 million on previously impaired notes were credited to impairment charges during the three
and six months ended June 30, 2011, respectively. Valuation adjustments credited to impairment
charges for the three and six months ended June 30, 2010 were $1.2 million and $2.0 million,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Investments in Unconsolidated Joint Ventures</i></b></u> — Investments in joint ventures in which
we have ownership interests ranging from 14.4% to 71.74% are accounted for under the equity method
of accounting by recording the initial investment and our percentage of interest in the joint
venture’s net income (loss). We review the investment in our unconsolidated joint ventures for
impairment in each reporting period pursuant to the applicable authoritative accounting guidance.
The investment is impaired when its estimated fair value is less than the carrying amount of our
investment. Any impairment is recorded in equity earnings (loss) in unconsolidated joint venture.
No such impairment was recorded in the three and six months ended June 30, 2011 and 2010. We
adopted the equity accounting method for our investment in the PIM Highland JV due to the fact that
we do not control the joint venture. Although we have the majority ownership of 71.74% in the joint
venture, all the major decisions related to the joint venture, including establishment of policies
and operating procedures with respect to business affairs, incurring obligations and expenditures,
are subject to the approval of an executive committee, which is comprised of four persons with us
and our joint venture partner each designating two of those persons. Our investment in PIM Highland
JV had a carrying value of $190.8 million at June 30, 2011, which was based on our share of PIM
Highland JV’s equity. As discussed further in Note 6, the PIM Highland JV is in the process of
finalizing their purchase price allocation. Our share of the PIM Highland JV’s equity has been
based on the preliminary purchase price allocation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Assets Held for Sale and Discontinued Operations</i></b></u> — We classify assets as held for
sale when management has obtained a firm commitment from a buyer, and consummation of the sale is
considered probable and expected within one year. In addition, we deconsolidate a property when it
becomes subject to the control of a government, court, administrator or regulator and we
effectively lose control of the property/subsidiary. When deconsolidating a property/subsidiary, we
recognize a gain or loss in net income measured as the difference between the fair value of any
consideration received, the fair value of any retained noncontrolling investment in the former
subsidiary at the date the subsidiary is deconsolidated, and the carrying amount of the former
property/subsidiary. The related operations of assets held for sale are reported as discontinued if
a) such operations and cash flows can be clearly distinguished, both operationally and financially,
from our ongoing operations, b) such operations and cash flows will be eliminated from ongoing
operations once the disposal occurs, and c) we will not have any significant continuing involvement
subsequent to the disposal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the six months ended June 30, 2011, we completed the sale of three hotel properties
that were reclassified as assets held for sale at December 31, 2010, and recorded a net gain of
$3.0 million. In June 2011, we recorded an impairment charge of $6.2 million for a hotel property that was under contract to sell at June 30,
2011. The hotel property has been classified as assets held for sale.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Revenue Recognition</i></b></u> — Hotel revenues, including room, food, beverage, and ancillary
revenues such as long-distance telephone service, laundry, and space rentals, are recognized when
services have been rendered. Rental income represents income from leasing hotel properties to
third-party tenants on triple-net operating leases. Base rent on the
triple-net lease is recognized on a straight-line basis over the lease terms and variable rent is
recognized when earned. Interest income, representing interest on the mezzanine and first mortgage
loan portfolio (including accretion of discounts on certain loans using the effective interest
method), is recognized when earned. We discontinue recording interest and amortizing
discounts/premiums when the contractual payment of interest and/or principal is not received. Asset
management fees are recognized when services are rendered. Taxes collected from customers and
submitted to taxing authorities are not recorded in revenue. For the hotel leased to a third party,
we report deposits into our escrow accounts for capital expenditure reserves as income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Derivative Financial Instruments and Hedges</i></b></u> — We primarily use interest rate
derivatives to hedge our risks and to capitalize on the historical correlation between changes in LIBOR (London
Interbank Offered Rate) and RevPAR (Revenue per Available Room). The interest rate derivatives
include swaps, caps, floors, flooridors and corridors. All derivatives are recorded on the
consolidated balance sheets at fair value in accordance with the applicable authoritative
accounting guidance and reported as “Interest rate derivatives.” Accrued interest on the non-hedge
designated derivatives is included in “Accounts receivable, net” on the consolidated balance
sheets. For derivatives designated as cash flow hedges, the effective portion of changes in the
fair value is reported as a component of “Accumulated Other Comprehensive Income (Loss)” (“OCI”) in
the equity section of the consolidated balance sheets. The amount recorded in OCI is reclassified
to interest expense in the same period or periods during which the hedged transaction affects
earnings, while the ineffective portion of changes in the fair value of the derivative is
recognized directly in earnings as “Unrealized gain (loss) on derivatives” in the consolidated
statements of operations. For derivatives that are not designated as cash flow hedges, the changes
in the fair value are recognized in earnings as “Unrealized gain (loss) on derivatives” in the
consolidated statements of operations. We assess the effectiveness of each hedging relationship by
comparing the changes in fair value or cash flows of the derivative hedging instrument with the
changes in fair value or cash flows of the designated hedged item or transaction. Derivatives
subject to master netting arrangements are reported net in the consolidated balance sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Recently Adopted Accounting Standards</i></b></u> — In December 2010, the Financial Accounting
Standards Board (“FASB”) issued an accounting standard update to require a public entity to
disclose pro forma information for business combinations that occurred in the current reporting
period. The disclosures include pro forma revenue and earnings of the combined entity for the
current reporting period as though the acquisition date for all business combinations that occurred
during the year had been as of the beginning of the annual reporting period. If comparative
financial statements are presented, the pro forma revenue and earnings of the combined entity for
the comparable prior reporting period should be reported as though the acquisition date for all
business combinations that occurred during the current year had been as of the beginning of the
comparable prior annual reporting period. The new disclosures are effective prospectively for
business combinations for which the acquisition date is on or after the beginning of the first
annual reporting period beginning on or after December 15, 2010. The pro forma disclosures related
to our acquisition of the 28-hotel portfolio through the PIM Highland JV in Note 16 are made in
accordance with the new requirements. The adoption did not have an impact on our financial position
and results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Recently Issued Accounting Standards</i></b></u> — In May 2011, FASB issued an accounting
guidance for common fair value measurement and disclosure requirements. The guidance requires
disclosures of (i) quantitative information about the significant unobservable inputs used for
level 3 measurements; (ii) description of the valuation processes surrounding level 3 measurements;
(iii) narrative description of the sensitivity of recurring level 3 measurements to unobservable
inputs; (iv) hierarchy classification for items whose fair value is only disclosed in the
footnotes; and (v) any transfers between level 1 and 2 of fair value hierarchy. The new accounting
guidance is effective during interim and annual periods beginning after December 15, 2011. We do
not expect a material impact on our financial position and results of operations from the adoption of this accounting guidance, but will make required
additional disclosures upon adoption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2011, FASB issued an accounting guidance for presentation of comprehensive income. The
accounting update requires an entity to present each component of net income along with total net
income, each component of other comprehensive income along with a total for other comprehensive
income, and a total amount for comprehensive income. The entity has the option to present the total
of comprehensive income, the components of net income, and the components of other comprehensive
income either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. The new accounting guidance is effective for fiscal years, and interim
periods within those years, beginning after December 15, 2011. We do not expect a material impact
on our financial position
and results of operations from the adoption of this accounting guidance,
but will make required presentation of net income and comprehensive income upon adoption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Reclassifications</i></b></u> — Certain amounts in the consolidated financial statements for the
three and six months ended June 30, 2010 have been reclassified for discontinued operations. These
reclassifications have no effect on the results of operations or financial position previously
reported.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. Summary of Significant Transactions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Pending Sale of Hotel Property</i></b></u> — In June 2011, we entered into an agreement for the
sale of the Hampton Inn hotel property in Jacksonville, Florida. Based on the selling price, we
recorded an impairment charge of $6.2 million. The sale was completed in July 2011. The hotel
property has been reclassified as assets held for sale in the consolidated balance sheet at June
30, 2011, and its operating results, including the impairment charge, for all periods presented
have been reported as discontinued operations in the consolidated statements of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Investments in Securities</i></b></u> — We continually seek new and alternative strategies to
leverage our industry and capital markets knowledge in ways that we believe will be accretive to
our company. We believe that we can utilize the same real-time information we use to manage our
portfolio and capital structure to invest capital in the public markets within the hospitality
industry. To implement this investment strategy, in the three months ended June 2011, our Board of
Directors authorized the formation of an investment subsidiary to invest in public securities of
lodging entities. This investment will be carried at fair market value. The maximum aggregate
investment amount that can be made by this subsidiary is currently $20.0 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Preferred Stock Offering and Redemption of Series B-1 Convertible Preferred Stock</i></b></u> —
In April 2011, we completed the offering of 3.35 million shares (including 350,000 shares pursuant
to the underwriters’ exercise of an over-allotment option) of our 9.00% Series E Cumulative
Preferred Stock at a net price of $24.2125 per share, and we received net proceeds of $80.8 million
after underwriting fees. Of the net proceeds from the offering, $73.0 million was used to redeem
5.9 million shares of the total 7.3 million shares of our Series B-1 convertible preferred stock
outstanding on May 3, 2011. The remaining proceeds were used for other general corporate purposes.
The remaining 1.4 million outstanding Series B-1 convertible preferred shares were converted into
1.4 million shares of our common stock, which was treated as a dividend of $17.4 million paid to
the Series B-1 preferred shareholder in accordance with the applicable accounting guidance.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Repayment of a Mezzanine Loan</i></b></u> — In April 2011, we entered into a settlement agreement
with the borrower of the mezzanine loan which was secured by a 105-hotel property portfolio and
scheduled to mature in April 2011. The borrower paid off the loan for $22.1 million. The difference
between the settlement amount and the carrying value of $17.9 million was recorded as a credit to
impairment charges in accordance with applicable accounting guidance. We used $20.0 million of the
settlement proceeds to pay down our senior credit facility.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Acquisition of Hotel Properties Securing Mezzanine Loans Held in Unconsolidated Joint
Ventures</i></b></u> — In July 2010, as a strategic complement to our existing joint venture with
Prudential Real Estate Investors (“PREI”) formed in 2008, we contributed $15.0 million for an
ownership interest in a new joint venture with PREI. The new joint venture
acquired a portion of the tranche 4 mezzanine loan associated with JER Partners’ 2007 privatization
of the JER/Highland Hospitality portfolio (the “Highland Portfolio”). The mezzanine loan was
secured by the same 28 hotel properties as our then existing joint venture investment in the
tranche 6 mezzanine loan. Both of these mezzanine loans were in default since August 2010. After
negotiating with the borrowers, senior secured lenders and senior mezzanine lenders for a
restructuring, we, through another new joint venture, the PIM Highland JV, with PRISA III
Investments, LLC (“PRISA III”) (an affiliate of PREI), invested $150.0 million and PRISA III
invested $50.0 million of new capital to acquire the 28 high quality full and select service hotel
properties comprising the Highland Portfolio on March 10, 2011. We and PRISA III have ownership
interests of 71.74% and 28.26%, respectively, in the new joint venture. In addition to the common
equity splits, we and PRISA III each have a $25.0 million preferred equity interest earning an
accrued but unpaid 15% annual return with priority over common equity distributions. Our investment
in the PIM Highland JV is accounted for using the equity method and the carrying value was $190.8
million at June 30, 2011. The PIM Highland JV recognized a gain of $75.4 million at acquisition, of
which our share was $43.2 million, based on the preliminary assessment of the fair value of the
assets acquired and the liabilities assumed. The purchase price has been
allocated to the assets acquired and liabilities assumed on a preliminary basis using estimated
fair value information currently available. The allocation of the purchase price to the assets and
liabilities will be finalized as soon as practicable upon completion of the analysis of the fair
values of the assets acquired and liabilities assumed, which could result in adjustments to the
gain recognized based on the preliminary assessment. See Note 6.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Litigation Settlement</i></b></u> — In March 2011, we entered into a Consent and Settlement
Agreement (the “Settlement Agreement”) with Wells Fargo Bank, N.A. (“Wells”) to resolve potential
disputes and claims between us and Wells relating to our purchase of a participation interest in
certain mezzanine loans. Wells denied the allegations in our complaint and further denies any
liability for the claims asserted by us; however, the Settlement Agreement was entered into to
resolve our claims against Wells and to secure Wells’ consent to our participation in the Highland
Hospitality Portfolio restructuring. Pursuant to the Settlement Agreement, Wells agreed to pay us
$30.0 million over the next five years, or earlier, if certain conditions are satisfied. As part of
the Settlement Agreement, we and Wells have agreed to a mutual release of claims. We received the
settlement payment of $30.0 million and paid legal costs of $6.9 million in June 2011 ($5.5 million
of the legal costs were accrued at March 31, 2011). The settlement amount was recorded as “Other
income” and the legal costs of $6.9 million were recorded as “Corporate general and administrative
expenses” in the consolidated statements of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Acquisition of Condominium Properties</i></b></u> — In March 2011, we acquired real estate and
certain other rights in connection with the acquisition of the WorldQuest Resort, a condominium
hotel project. More specifically, we acquired 96 condominium units, hotel amenities, land and
improvements, developable raw land, developer rights and Rental Management Agreements (“RMA’s”)
with third party owners of condominium units in the project. Units owned by third parties with
RMA’s and 62 of the 96 units we acquired participate in a rental pool program whereby the units are
rented to guests similar to a hotel operation. Under the terms of the RMA’s, we share in a
percentage of the guest room revenues and are reimbursed for certain costs. The remaining 34 units
that we own are currently being finished out and will be added to the rental pool when completed.
All of these units are included in “Investment in hotel properties, net” in the consolidated
balance sheet.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Resumption of Common Dividends</i></b></u> — In February 2011, the Board of Directors accepted
management’s recommendation to resume paying cash dividends on our outstanding shares of common
stock with an annualized target of $0.40 per share for 2011. For the six months ended June 30,
2011, we have declared dividends of $0.20 per share, subsequent payments will be reviewed on a
quarterly basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Completion of Sales of Hotel Properties</i></b></u> — In the six months ended June 30, 2011, we
completed the sale of the three hotel properties which were classified as assets held for sale at
December 31, 2010, the JW Marriott hotel in San Francisco, California, the Hilton hotel in Rye
Town, New York and the Hampton Inn hotel in Houston, Texas. We received net proceeds of $93.9
million (net of repayments of related mortgage debt of $50.2 million). We used the net proceeds to
reduce $70.0 million of the borrowings on our senior credit facility.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Sale of Additional Shares of Our Common Stock</i></b></u> — In January 2011, an underwriter
purchased 300,000 shares of our common stock through the partial exercise of the underwriter’s
1.125 million share over-allotment option in connection with the issuance of 7.5 million shares of
common stock completed in December 2010, and we received net proceeds of $2.8 million.
</div>
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<b>
</b>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>4. Investments in Hotel Properties</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Investments in hotel properties consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">487,200</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">488,901</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings and improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">2,770,209</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,774,822</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture, fixtures and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">402,685</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">383,860</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">2,090</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,473</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Condominium properties
</div></td>
<td> </td>
<td> </td>
<td align="right">12,736</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total cost
</div></td>
<td> </td>
<td> </td>
<td align="right">3,674,920</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,652,056</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated depreciation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(691,338</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(628,320</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Investment in hotel properties, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,983,582</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,023,736</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2011, we acquired real estate and certain other rights in connection with the
acquisition of the WorldQuest Resort, a condominium hotel project. More specifically, we acquired
96 condominium units, hotel amenities, land and improvements, developable raw land, developer
rights and Rental Management Agreements (“RMA’s”) with third party owners of condominium units in
the project. Units owned by third parties with RMA’s and 62 of the 96 units we acquired participate
in a rental pool program whereby the units are rented to guests similar to a hotel operation. Under
the terms of the RMA’s, we share in a percentage of the guest room revenues and are reimbursed for
certain costs. The remaining 34 units that we own are currently being finished out and will be
added to the rental pool when completed. All of these units are included in “Investment in hotel
properties, net” in the consolidated balance sheets.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table presents certain information related to our hotel properties as of June
30, 2011:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Service</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>%</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Owned</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Hotel Property</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rooms</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Owned</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rooms</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
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<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b><i>Fee Simple Properties</i></b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Austin, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Dallas, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Herndon, VA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Las Vegas, NV</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">220</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">220</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Syracuse, NY</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">215</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">215</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Flagstaff, AZ</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">119</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">119</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Houston, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">West Palm Beach, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">160</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">160</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Philadelphia, PA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">263</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">263</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Walnut Creek, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">249</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">249</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Arlington, VA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">267</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">267</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Portland, OR</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">276</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">276</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Santa Clara, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">257</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">257</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Embassy Suites
</div></td>
<td> </td>
<td align="left" valign="top">Orlando, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">174</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">174</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton Garden Inn
</div></td>
<td> </td>
<td align="left" valign="top">Jacksonville, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">119</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">119</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Houston, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">243</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">243</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">St. Petersburg, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">333</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">333</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Santa Fe, NM</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">157</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">157</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Bloomington, MN</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">300</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">300</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Washington DC</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">544</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">75</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">408</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Costa Mesa, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">486</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">486</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Tucson, AZ</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">428</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">428</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Homewood Suites
</div></td>
<td> </td>
<td align="left" valign="top">Mobile, AL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">86</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">86</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hampton Inn
</div></td>
<td> </td>
<td align="left" valign="top">Lawrenceville, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">86</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">86</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hampton Inn
</div></td>
<td> </td>
<td align="left" valign="top">Evansville, IN</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">141</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">141</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hampton Inn
</div></td>
<td> </td>
<td align="left" valign="top">Terre Haute, IN</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">112</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">112</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hampton Inn
</div></td>
<td> </td>
<td align="left" valign="top">Buford, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">92</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">92</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hampton Inn
</div></td>
<td> </td>
<td align="left" valign="top">Jacksonville, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">118</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">118</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Durham, NC</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">225</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">225</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Arlington, VA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">697</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">697</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Seattle, WA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">358</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">358</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Bridgewater, NJ</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">347</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">347</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Plano, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">404</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">404</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Dallas, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">266</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">266</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Jacksonville, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">102</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">102</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Baltimore, MD</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">133</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">133</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Kennesaw, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Buford, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">96</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">96</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Gaithersburg, MD</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">162</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">162</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Centreville, VA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Charlotte, NC</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Durham, NC</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">120</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">120</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Orlando, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">400</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">400</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Manhattan Beach, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">164</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">164</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Plymouth Meeting, PA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">199</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">199</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">SpringHill Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Glen Allen, VA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">136</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fairfield Inn by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Kennesaw, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">87</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">87</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fairfield Inn by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Orlando, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">388</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">388</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Bloomington, IN</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">117</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">117</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Columbus, IN</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Louisville, KY</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Crystal City, VA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">272</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">272</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Ft. Lauderdale, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">174</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">174</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Overland Park, KS</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">168</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">168</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Palm Desert, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">151</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">151</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Foothill Ranch, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">156</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">156</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Alpharetta, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">154</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">154</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Philadelphia, PA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">498</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">89</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">443</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Seattle, WA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">250</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">250</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">San Francisco, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">405</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">405</td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="35%"> </td>
<td width="5%"> </td>
<td width="12%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Service</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>%</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Owned</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Hotel Property</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rooms</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Owned</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rooms</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Orlando, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">312</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">312</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Oakland, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">156</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">156</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Scottsdale, AZ</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">180</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">180</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Plano, TX</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">153</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">153</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Edison, NJ</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">146</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">146</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top">Newark, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">181</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">181</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Manchester, CT</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">90</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">85</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">77</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Courtyard by Marriott
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Basking Ridge, NJ</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">235</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">235</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Lake Buena Vista, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">210</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">210</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Evansville, IN</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">78</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">78</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Orlando, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">350</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">350</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Falls Church, VA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">159</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">159</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">San Diego, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Salt Lake City, UT</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">144</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">144</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Palm Desert, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">130</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">130</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Las Vegas, NV</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">256</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">256</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Phoenix, AZ</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">200</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">200</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Plano, TX</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">126</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">126</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Newark, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">168</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">168</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Manchester CT</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">96</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">85</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">82</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn Buckhead
</div></td>
<td> </td>
<td align="left" valign="top">Atlanta, GA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">150</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marriott Residence Inn
</div></td>
<td> </td>
<td align="left" valign="top">Jacksonville, FL</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">120</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">120</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">TownePlace Suites by Marriott
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Manhattan Beach, CA</td>
<td> </td>
<td align="center" valign="top">Limited</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">144</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">144</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">One Ocean
</div></td>
<td> </td>
<td align="left" valign="top">Atlantic Beach, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">193</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">193</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sheraton Hotel
</div></td>
<td> </td>
<td align="left" valign="top">Langhorne, PA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">187</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">187</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Sheraton Hotel
</div></td>
<td> </td>
<td align="left" valign="top">Minneapolis, MN</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">222</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">222</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sheraton Hotel
</div></td>
<td> </td>
<td align="left" valign="top">Indianapolis, IN</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">371</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">371</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Sheraton Hotel
</div></td>
<td> </td>
<td align="left" valign="top">Anchorage, AK</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">370</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">370</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sheraton Hotel
</div></td>
<td> </td>
<td align="left" valign="top">San Diego, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">260</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">260</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hyatt Regency
</div></td>
<td> </td>
<td align="left" valign="top">Coral Gables, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">242</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">242</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Crowne Plaza
</div></td>
<td> </td>
<td align="left" valign="top">Beverly Hills, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">260</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">260</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Annapolis Historic Inn
</div></td>
<td> </td>
<td align="left" valign="top">Annapolis, MD</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">124</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">124</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b><i>Air Rights/Ground Lease Properties</i></b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Doubletree Guest Suites
</div></td>
<td> </td>
<td align="left" valign="top">Columbus, OH</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">194</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">194</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">Ft. Worth, TX</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">294</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">294</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hilton
</div></td>
<td> </td>
<td align="left" valign="top">La Jolla, CA</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">394</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">75</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">296</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Crowne Plaza
</div></td>
<td> </td>
<td align="left" valign="top">Key West, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">160</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">160</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Renaissance
</div></td>
<td> </td>
<td align="left" valign="top">Tampa, FL</td>
<td> </td>
<td align="center" valign="top">Full</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">293</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">100</td>
<td nowrap="nowrap" valign="top">%</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">293</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">20,774</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">20,458</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Notes Receivable</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We had one mezzanine loan at June 30, 2011 and two mezzanine loans at December 31, 2010. In
April 2011, we entered into a settlement agreement with the borrower of the mezzanine loan which
was secured by a 105-hotel property portfolio and scheduled to mature in April 2011. The borrower
paid off the loan for $22.1 million. The mezzanine loan had a carrying value of $17.9 million at
March 31, 2011 and December 31, 2010, after an impairment charge of $7.8 million was recorded at
December 31, 2010. The difference between the settlement amount and the carrying value of $4.2
million was recorded as a credit to impairment charges in accordance with applicable accounting
guidance.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our remaining mezzanine loan, which is secured by one hotel property, had an original
principal balance of $38.0 million. This loan was restructured in 2010 with a cash payment of $20.2
million and a $4.0 million note receivable which matures in June 2017, with an interest rate of
6.09%. At June 30, 2011 and December 31, 2010, this mezzanine loan had a net carrying value of $3.0
million. Payments on this loan have been treated as a reduction of carrying values, and the
valuation allowance adjustments have been recorded as credits to impairment charges in accordance
with applicable accounting guidance.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:EquityMethodInvestmentsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. Investment in Unconsolidated Joint Ventures</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As discussed in Note 3, we acquired a 71.74% ownership interest in the PIM Highland JV and a
$25.0 million preferred equity interest earning an accrued but unpaid 15% annual return with
priority over common equity distributions. Although we have the majority ownership interest and can
exercise significant influence over the joint venture, we do not have control of the joint
venture’s operations. All the major decisions related to the joint venture, including establishment
of policies and operating procedures with respect to business affairs, incurring obligations and
expenditures, are subject to the approval of an executive committee, which is comprised of four
persons with us and our joint venture partner each designating two of those persons. As a result,
our investment in the joint venture is accounted for using the equity method, which had a carrying
value of $190.8 million at June 30, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The 28-hotel property portfolio acquired and the indebtedness assumed by the joint venture had
preliminary fair values of approximately $1.3 billion and $1.1 billion, respectively, at the date
of acquisition based on third-party appraisals (after a paydown of $170.0 million of related debt).
Cash, receivables, other assets acquired and other liabilities assumed had a net value of
approximately $291.1 million at the date of acquisition. The joint venture repaid $170.0 million of
the debt assumed at acquisition. The purchase price was the result of arms-length negotiations. The
PIM Highland JV recognized a gain of $75.4 million at acquisition, of which our share was $43.2
million, based on the preliminary assessment of the fair value of the assets acquired and the
liabilities assumed. The purchase price has been allocated to the assets acquired and liabilities
assumed on a preliminary basis using estimated fair value information currently available. The
joint venture is in the process of evaluating the values assigned to investments in hotel
properties, ground leases for above/below market rents, management contracts with non-affiliated
managers, other intangibles and property level balances that have been transferred on to the joint
venture’s balance sheet. Thus, the balances reflected below are subject to change and could result
in adjustments to the gain recorded on a preliminary basis. Any change in valuation of the PIM
Highland JV’s preliminary investments in hotel properties will also impact the depreciation and
amortization expense and the resulting gain included in equity in earnings of unconsolidated joint
ventures on the Consolidated Statement of Operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize the preliminary balance sheet as of June 30, 2011 and the
statement of operations for the three months ended June 30, 2011 and the period from March 10, 2011
through June 30, 2011 of the PIM Highland JV (in thousands):
</div>
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>PIM Highland JV</b><br />
<b>Consolidated Balance Sheet</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investments in hotel properties, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,261,760</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">27,414</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td> </td>
<td align="right">67,552</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">20,992</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">1,595</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred costs, net
</div></td>
<td> </td>
<td> </td>
<td align="right">13,046</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid expenses and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">9,530</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Due from third-party hotel managers
</div></td>
<td> </td>
<td> </td>
<td align="right">18,247</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,420,136</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities and partners’ capital</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Indebtedness and capital leases
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,096,110</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable and accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">39,273</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Due to affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">2,991</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Due to third-party hotel managers
</div></td>
<td> </td>
<td> </td>
<td align="right">616</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,138,990</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Partners’ capital
</div></td>
<td> </td>
<td> </td>
<td align="right">281,146</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities and partners’ capital
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,420,136</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Our ownership interest in PIM Highland JV
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">190,824</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>PIM Highland JV</b><br />
<b>Consolidated Statement of Operations</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Period</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>From</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>March 10</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>to June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Revenue</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Rooms
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">75,963</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">92,402</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Food and beverage
</div></td>
<td> </td>
<td> </td>
<td align="right">27,653</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,775</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">4,379</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,297</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">107,995</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">131,474</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Expenses</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Rooms
</div></td>
<td> </td>
<td> </td>
<td align="right">16,094</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,688</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Food and beverage
</div></td>
<td> </td>
<td> </td>
<td align="right">17,964</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,924</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">31,167</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,707</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Management fees
</div></td>
<td> </td>
<td> </td>
<td align="right">3,418</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,182</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">5,819</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,124</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">17,672</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,522</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Transaction acquisition costs
</div></td>
<td> </td>
<td> </td>
<td align="right">647</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,263</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">General and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">798</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">970</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">93,579</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">133,380</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">14,416</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,906</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of loan costs
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,006</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,874</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain recognized at acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75,372</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,049</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,639</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,568</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,807</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Net income (loss)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,207</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">51,146</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Our equity in earnings (loss) of the joint venture recorded
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,301</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">25,824</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Additionally, as of June 30, 2011, we had a 14.4% subordinated beneficial interest in a
trust that holds the Four Seasons hotel property in Nevis, which had a zero carrying value. The
Sheraton hotel property in Dallas, Texas, held by a joint venture, in which we had an 18%
subordinated ownership interest, was carried at zero value. This hotel was sold in May 2011, but
due to our subordinated status we did not receive any proceeds from the sale, and no gain or loss
was recognized.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>7. Assets Held for Sale and Discontinued Operations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the six months ended June 30, 2011, we completed the sales of the JW Marriott San Francisco
in California, the Hilton Rye Town in New York and the Hampton Inn Houston in Texas. As of June 30,
2011, the Hampton Inn hotel property in Jacksonville, Florida was under contract for sale. The
operating results of these hotel properties are reported as discontinued operations for all periods
presented. For the three and six months ended June 30, 2010, operating results of discontinued
operations also include those of the Hilton Suites Auburn Hills in Michigan that was sold in June
2010, and the Westin O’Hare in Illinois that was transferred to the lender through a deed-in-lieu
of foreclosure in September 2010.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the operating results of the discontinued hotel properties (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hotel revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">747</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">22,980</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,248</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41,463</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hotel operating expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(415</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,221</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,910</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(32,683</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td> </td>
<td align="right">332</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,759</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,338</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,780</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(86</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,919</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(769</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,915</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(196</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,364</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(392</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,729</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,237</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,068</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,237</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,068</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain on disposal of properties
</div></td>
<td> </td>
<td> </td>
<td align="right">158</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,961</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of loan costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,576</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(687</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,075</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Write-off of premiums, loan costs and exit fees
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(948</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Loss from discontinued operations before
income tax expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,029</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,168</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,734</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(19,007</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax (expense) benefit
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(85</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">37</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from discontinued operations
attributable to noncontrolling interests in
consolidated joint venture
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(72</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations attributable
to redeemable noncontrolling interests in
operating partnership
</div></td>
<td> </td>
<td> </td>
<td align="right">749</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,364</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">604</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,106</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations attributable
to Company
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,859</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,246</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,936</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:LongTermDebtTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Indebtedness</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Indebtedness of our continuing operations consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="25%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="15%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Indebtedness</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Collateral</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Interest Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">5 hotels</td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">December 2011</td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">LIBOR<sup style="font-size: 85%; vertical-align: text-top">(1)</sup> + 1.72%</td>
<td> </td>
<td align="left">$</td>
<td align="right">203,400</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">203,400</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior credit
facility<sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">Notes receivable</td>
<td> </td>
<td colspan="3" align="center">April 2012</td>
<td> </td>
<td colspan="3" align="center">LIBOR<sup style="font-size: 85%; vertical-align: text-top">(1)</sup> + 2.75% to 3.5%</td>
<td> </td>
<td> </td>
<td align="right">50,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">115,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">10 hotels</td>
<td> </td>
<td colspan="3" align="center">May 2012</td>
<td> </td>
<td colspan="3" align="center">LIBOR<sup style="font-size: 85%; vertical-align: text-top">(1)</sup> + 1.65%</td>
<td> </td>
<td> </td>
<td align="right">167,202</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">167,202</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">2 hotels</td>
<td> </td>
<td colspan="3" align="center">August 2013</td>
<td> </td>
<td colspan="3" align="center">LIBOR<sup style="font-size: 85%; vertical-align: text-top">(1)</sup> + 2.75%</td>
<td> </td>
<td> </td>
<td align="right">147,533</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">150,383</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center">May 2014</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">8.32%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">5,580</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,775</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center">December 2014</td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">Greater of 5.5% or LIBOR<sup style="font-size: 85%; vertical-align: text-top">(1)</sup> + 3.5%</td>
<td> </td>
<td> </td>
<td align="right">19,740</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,740</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">8 hotels</td>
<td> </td>
<td colspan="3" align="center">December 2014</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.75%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td align="right">107,908</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108,940</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">10 hotels</td>
<td> </td>
<td colspan="3" align="center">July 2015</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.22%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">157,676</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">159,001</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">8 hotels</td>
<td> </td>
<td colspan="3" align="center">December 2015</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.70%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">99,686</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100,576</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">December 2015</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">12.60%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">149,528</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148,013</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">February 2016</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.53%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">113,718</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,629</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">February 2016</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.53%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">94,307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">95,062</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">February 2016</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.53%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">81,690</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">82,345</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.91%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">35,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">2 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">128,251</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">128,251</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">3 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">260,980</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">260,980</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">115,600</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">115,600</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">103,906</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,906</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">5 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">158,105</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">158,105</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">7 hotels</td>
<td> </td>
<td colspan="3" align="center">April 2017</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">5.95%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">126,466</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">126,466</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">TIF loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center">June 2018</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">12.85%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">8,098</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,098</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center" nowrap="nowrap">November 2020</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="center">6.26%</td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right">104,330</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104,901</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage loan
</div></td>
<td> </td>
<td colspan="3" align="center">1 hotel</td>
<td> </td>
<td colspan="3" align="center">April 2034</td>
<td> </td>
<td colspan="3" align="center">Greater of 6% or Prime + 1%</td>
<td> </td>
<td> </td>
<td align="right">6,720</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,791</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total indebtedness
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center"> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,445,424</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,518,164</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>LIBOR rates were 0.19% and 0.26% at June 30, 2011 and December 31, 2010, respectively.
<sup style="font-size: 85%; vertical-align: text-top">(2)</sup> The outstanding balance of the senior credit facility was repaid in full in July 2011.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2010, we elected to stop making payments on the $5.8 million mortgage note
payable maturing January 2011, secured by a hotel property in Manchester, Connecticut. After
negotiating with the special servicer, in May 2011, we obtained a three-year extension on this loan
to May 2014. We paid $1.0 million at closing including a 1.25%
extension fee, the principal and
interest through May 1, 2011 to bring the loan current and certain deposits pursuant to the
modification agreement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are required to maintain certain financial ratios under various debt and derivative
agreements. If we violate covenants in any debt or derivative agreement, we could be required to
repay all or a portion of our indebtedness before maturity at a time when we might be unable to
arrange financing for such repayment on attractive terms, if at all. Violations of certain debt
covenants may result in us being unable to borrow unused amounts under a line of credit, even if
repayment of some or all borrowings is not required. The assets of certain of our subsidiaries are
pledged under non-recourse indebtedness and are not available to satisfy the debts and other
obligations of Ashford Hospitality Trust, Inc. or our operating partnership, Ashford Hospitality
Limited Partnership and the liabilities of such subsidiaries do not constitute the obligations of
Ashford Hospitality Trust, Inc. or Ashford Hospitality Limited Partnership. Presently, our existing
financial debt covenants primarily relate to maintaining minimum debt coverage ratios, maintaining
an overall minimum net worth, maintaining a maximum loan to value ratio, and maintaining an overall
minimum total assets. As of June 30, 2011, we were in compliance with all covenants or other
requirements set forth in our debt and derivative agreements as amended.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2011, we swapped $1.18 billion of our existing floating-rate debt (including our 71.74%
of the floating rate debt of the PIM Highland JV) to a fixed one-month LIBOR rate of 0.2675%. The
swap was effective from June 13, 2011 and terminates on January 13, 2012. There was no upfront cost
to us for entering into this swap other than customary transaction costs.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Income (Loss) Per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Basic income (loss) per common share is calculated using the two-class method, or the treasury
stock method, if more dilutive, by dividing net income (loss) attributable to common shareholders
by the weighted average number of common shares outstanding during the period. Diluted income/loss
per common share reflects the potential dilution that could occur if securities or other contracts
to issue common shares were exercised or converted into common shares, whereby such exercise or
conversion would result in lower income per share. The following table reconciles the amounts used
in calculating basic and diluted income per share (in thousands, except per share amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Income (loss) attributable to common shareholders — Basic:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations attributable to the Company
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">969</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,659</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,768</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27,871</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Dividends on preferred stocks
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24,771</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,831</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31,326</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,661</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Dividends on common stock
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,009</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,840</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Dividends on unvested restricted shares
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(94</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(204</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Income from continuing operations allocated to unvested shares
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(357</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(408</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Undistributed income (loss) from continuing operations allocated
to common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(29,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">13,471</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,602</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">17,802</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations attributable to the Company
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,859</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,246</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,936</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Loss from discontinued operations allocated to unvested shares
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">357</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Undistributed loss from discontinued operations allocated to
common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,553</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,246</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,579</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Income (loss) attributable to common shareholders — Diluted:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations distributed to common shareholders
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,009</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11,840</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Undistributed income (loss) from continuing operations allocated to
common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">13,471</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,602</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,802</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total distributed and undistributed income (loss) from continuing
operations — basic
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,896</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">13,471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,238</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,802</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Add back: Income allocated to Series B-1 convertible preferred stock
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,042</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,084</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Add back: Income allocated to operating partnership units
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,493</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (loss) from continuing operations allocated to common
shareholders — diluted
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(23,896</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">18,006</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,238</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,886</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Undistributed loss from discontinued operations allocated to
common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,553</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,246</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,579</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Add back: Loss from discontinued operations allocated to operating
partnership units
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,364</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total distributed and undistributed net loss from discontinued
operations allocated to common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(13,917</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,246</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,579</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">59,482</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,716</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,953</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of assumed conversion of Series B-1 convertible preferred stock
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,448</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,448</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of assumed conversion of operating partnership units
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,817</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average diluted shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">59,482</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,981</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,401</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income (loss) per share:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations allocated to common
shareholders per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.40</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.27</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.34</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations allocated to common shareholders
per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.23</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.07</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.30</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) allocated to common shareholders per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.49</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.04</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.04</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.04</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income (loss) per share:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations allocated to common
shareholders per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.40</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations allocated to common shareholders
per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.19</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.07</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.26</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) allocated to common shareholders per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.49</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.06</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.04</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Due to the anti-dilutive effect, the computation of diluted income (loss) per diluted share
does not reflect the adjustments for the following items (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations allocated to
common shareholders is not adjusted for:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Dividends to Series B-1 Preferred stock
</div></td>
<td> </td>
<td> </td>
<td align="right">17,713</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,737</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (loss) allocated to unvested restricted shares
</div></td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">357</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">204</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">409</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (loss) attributable to redeemable noncontrolling
interests in operating partnership units
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,640</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,332</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,027</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:75px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,167</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">357</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,273</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,436</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average diluted shares are not adjusted for:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Effect of unvested restricted shares
</div></td>
<td> </td>
<td> </td>
<td align="right">616
</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">657</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">702</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">778</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Effect of assumed conversion of Preferred B-1 preferred stock
</div></td>
<td> </td>
<td> </td>
<td align="right">2,788</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,018</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Effect of assumed conversion of operating partnership units
</div></td>
<td> </td>
<td> </td>
<td align="right">15,550</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,851</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,594</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td align="right">18,954</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">657</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,571</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,372</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. Derivatives and Hedging Activities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are exposed to risks arising from our business operations, economic conditions and
financial markets. To manage the risks, we primarily use interest rate derivatives to hedge our
debt as a way to potentially improve cash flows. We also use non-hedge derivatives to capitalize on
the historical correlation between changes in LIBOR and RevPAR. To mitigate the nonperformance
risk, we routinely rely on a third party’s analysis of the creditworthiness of the counterparties,
which supports our belief that the counterparties’ nonperformance risk is limited. All derivatives
are recorded at fair value. The fair values of interest rate swaps are determined using the market
standard methodology of netting the discounted future fixed cash receipts/payments and the
discounted expected variable cash payments/receipts. The fair values of interest rate caps, floors,
flooridors and corridors are determined using the market standard methodology of discounting the
future expected cash receipts that would occur if variable interest rates fell below the strike
rates of the floors or rise above the strike rates of the caps. The variable interest rates used in
the calculation of projected receipts and payments on the swaps, caps, and floors are based on an
expectation of future interest rates derived from observable market interest rate curves (LIBOR
forward curves) and volatilities (the “Level 2” inputs that are observable at commonly quoted
intervals, other than quoted prices). We also incorporate credit valuation adjustments (the “Level
3” inputs that are unobservable and typically based on our own assumptions, as there is little, if
any, related market activity) to appropriately reflect both our own non-performance risk and the
respective counterparty’s non-performance risk in the fair value measurements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have determined that when a majority of the inputs used to value our derivatives fall
within Level 2 of the fair value hierarchy, the derivative valuations in their entirety are
classified in Level 2 of the fair value hierarchy. However, when the valuation adjustments
associated with our derivatives utilize Level 3 inputs, such as estimates of current credit
spreads, to evaluate the likelihood of default by us and our counter-parties, which we consider
significant (10% or more) to the overall valuation of our derivatives, the derivative valuations in
their entirety are classified in Level 3 of the fair value hierarchy. Transfers of inputs between
levels are determined at the end of each reporting period. In determining the fair values of our
derivatives at June 30, 2011, the LIBOR interest rate forward curve (the Level 2 inputs) assumed an
uptrend from 0.19% to 1.12% for the remaining term of our derivatives. The credit spreads (the
Level 3 inputs) used in determining the fair values of the non-hedge designated derivatives assumed
an uptrend in nonperformance risk for us and most of our counterparties. The credit spreads used in
determining the fair values of the hedge designated derivatives assumed a downtrend in
nonperformance risk for all but one of our counterparties.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table presents our assets and liabilities measured at fair value on a recurring
basis aggregated by the level within which measurements fall in the fair value hierarchy (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-hedge derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">58,604</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">58,604</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">74,283</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">74,283</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate flooridor
</div></td>
<td> </td>
<td> </td>
<td align="right">18,418</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,418</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,532</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,532</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hedge derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right">77,022</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,022</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,818</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,818</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-hedge derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate floor
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,602</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,602</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,951</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,951</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,695</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,695</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,951</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,951</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">72,327</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,327</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">106,867</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">106,867</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The reconciliation of the beginning and ending balances of the derivatives that were measured
using Level 3 inputs is as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(17,972</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total unrealized loss included in earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,042</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total unrealized loss included in other
comprehensive income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total loss reclassified to interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchases
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Assets transferred into Level 3 still held
at the reporting date<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Assets transferred out of Level 3 still
held at the reporting
date<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,014</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Transferred in/out of Level 3 because the unobservable inputs used to determine the fair
value at end of period were more/less than 10% of the total valuation of these derivatives.
</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of our non-hedge designated interest rate derivatives as of June 30, 2011 and
the effects of these derivatives on the consolidated statements of operations for the three and six
months ended June 30, 2011 were as follows ($ in thousands):
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="7%"> </td>
<td width="3%"> </td>
<td width="7%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Interest Savings</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain or (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>or (Cost)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognition in Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognized in Income</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Assets/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Strike Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Liability)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,800,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top" nowrap="nowrap">Pays LIBOR<br /> plus 2.638%, <br /> receives 5.84%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td align="left">$</td>
<td align="right">83,151</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">765</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,930</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">13,601</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,835</td>
<td> </td>
</tr>
<tr valign="middle">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,475,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">Pays 4.084%,<br />receives LIBOR<br /> Plus 2.638%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,750</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,975</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,828</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,599</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,968</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">325,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">Pays 4.114%,<br />receives LIBOR<br /> plus 2.638%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(797</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(976</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(921</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(185</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(368</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="middle">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,180,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">Pays 0.2675%,<br />receives LIBOR</td>
<td> </td>
<td align="center">2012</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(46</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(46</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate floor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">325,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">1.25%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,602</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(535</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(852</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,656</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="middle">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
flooridor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,800,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">2.75% — 0.50%</td>
<td> </td>
<td align="center">2011</td>
<td> </td>
<td> </td>
<td align="right">18,418</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,917</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(19,114</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">10,238</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,363</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,327</td>
<td align="right"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(17,731</td>
<td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td align="right"></td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(34,537</td>
<td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,157</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36,160</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Reported as “Interest rate derivatives” in the consolidated balance sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Reported as “Unrealized gain (loss) on derivatives” in the consolidated statements of operations.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>Reported as “Other income” in the consolidated statements of operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of our non-hedge designated interest rate derivatives as of December 31,
2010 and the effects of these derivatives on the consolidated statement of operations for the three
and six months ended June 30, 2010 were as follows ($ in thousands):
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="7%"> </td>
<td width="3%"> </td>
<td width="7%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Interest Savings</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain or (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>or (Cost)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognition in Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognized in Income</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Assets/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Strike Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Liability)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,000,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">3.75%</td>
<td> </td>
<td align="center">2011</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(247</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="middle">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,800,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top" nowrap="nowrap">Pays LIBOR <br />plus 2.638%, <br />receives 5.84%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td> </td>
<td align="right">95,081</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,495</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,355</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,215</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,579</td>
<td> </td>
</tr>
<tr valign="middle" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,475,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top" nowrap="nowrap">Pays 4.084%,<br />receives<br />LIBOR plus<br />2.638%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20,922</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="middle">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">325,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top" nowrap="nowrap">Pays 4.114%,<br />receives<br />LIBOR plus<br />2.638%</td>
<td> </td>
<td align="center">2013</td>
<td> </td>
<td> </td>
<td align="right">124</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate floor<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,475,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">1.25%</td>
<td> </td>
<td align="center" valign="top">2013</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,071</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,744</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,551</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,304</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate floor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">325,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">1.25%</td>
<td> </td>
<td align="center" valign="top">2013</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,951</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(897</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,266</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(782</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,609</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate flooridor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,600,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">1.25% — 0.75%</td>
<td> </td>
<td align="center" valign="top">2010</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,367</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,787</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,550</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,050</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate flooridor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,800,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">1.75% — 1.25%</td>
<td> </td>
<td align="center" valign="top">2010</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,245</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,275</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,525</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate flooridor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,800,000</td>
<td> </td>
<td> </td>
<td align="center" valign="top">2.75% — 0.50%</td>
<td> </td>
<td align="center" valign="top">2011</td>
<td> </td>
<td> </td>
<td align="right">37,532</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,623</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,042</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 0em">
<td>
<div style="margin-left:30px; text-indent:-15px">Total 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">106,864</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(2)</sup> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,535</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </td>
<td> </td>
<td align="left">$</td>
<td align="right">30,470</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,707</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31,241</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td align="center" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>This interest rate floor was terminated and replaced by the 4.084%, $1,475,000 notional amount interest rate swap.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Reported as “Interest rate derivatives” in the consolidated balance sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Reported as “Unrealized gain (loss) on derivatives” in the consolidated statements of operations.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>Reported as “Other income” in the consolidated statements of operations.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of our hedge-designated interest rate derivatives as of June 30, 2011 and the
effects of these derivatives on the consolidated statement of operations for the three and six
months ended June 30, 2011 were as follows ($ in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Reclassified from</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain (Loss) Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Income (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Accumulated OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>in Income for</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognized in OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>into Interest Expense</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Ineffective Portion</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Strike</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rates</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">160,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">165</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">306</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">165</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">306</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td>$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td>$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">60,800</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.81</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">167,212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.75</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">167,212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">6.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">203,400</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">6.25</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,740</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td align="left">$</td>
<td align="right">182</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">376</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">206</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">392</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">(1</td>
<td align="left" nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>$</td>
<td align="right">(12</td>
<td align="right" nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Included in “Interest rate derivatives” in the consolidated balance sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Included in “Unrealized gain (loss) on derivatives” in the consolidated statements of operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of our hedge-designated interest rate derivatives as of December 31, 2010
and the effects of these derivatives on the consolidated statement of operations for the three and
six months ended June 30, 2010 were as follows ($ in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Reclassified from</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain (Loss) Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Income (Loss)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Accumulated OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>in Income for</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Recognized in OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>into Interest Expense</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Ineffective Portion</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Months</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Strike</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Rates</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">160,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2010</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">110</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">190</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">110</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">186</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">160,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(59</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">5.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">60,800</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.81</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(93</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">203,400</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.50</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">167,212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">6.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">167,212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.75</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate corridor
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">130,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td nowrap="nowrap" align="right">4.6%-6.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate cap
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,740</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.00</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(37</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3</td>
<td><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td align="left">$</td>
<td align="right">80</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">164</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">275</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">—</td>
<td align="left" nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>$</td>
<td align="right">(28</td>
<td align="right" nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Included in “Interest rate derivatives” in the consolidated balance sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Included in “Unrealized gain (loss) on derivatives” in the consolidated statements of operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the next twelve months, we expect $224,000 of the accumulated comprehensive loss
will be reclassified to interest expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have derivative agreements that incorporate the loan covenant provisions of our senior
credit facility requiring us to maintain certain minimum financial covenant ratios on our
indebtedness. Failure to comply with the covenant provisions would result in us being in default on
any derivative instrument obligations covered by the agreement. At June 30, 2011, we were in
compliance with all the covenants under the senior credit facility and the fair value of
derivatives related to this agreement was an asset of $54.0 million.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Redeemable Noncontrolling Interests</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Redeemable noncontrolling interests in the operating partnership represents the limited
partners’ proportionate share of equity in earnings/losses of the operating partnership, which is
an allocation of net income/loss attributable to the common unit holders based on the weighted
average ownership percentage of these limited partners’ common units and the units issued under our
Long-Term Incentive Plan (the “LTIP units”) that are vested throughout the period plus
distributions paid to these limited partners with regard to the Class B units. Class B common units
have a fixed dividend
rate of 7.2%, and have priority in payment of cash dividends over common units but otherwise
have no preference over common units. Aside from the Class B units, all other outstanding units
represent common units. Beginning one year after issuance, each common unit of limited partnership
interest (including each Class B common unit) may be redeemed for either cash or, at Ashford’s sole
discretion, one share of Ashford’s common stock. The Class B common units are convertible at the
option of Ashford or the holder, into an equivalent number of common units at any time after July
13, 2016.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning in 2008, we started issuing LTIP units to certain executives and employees as
compensation. These units have vesting periods ranging from three to five years. Upon vesting, each
LTIP unit can be converted by the holder into one common partnership unit of the operating
partnership which then can be redeemed for cash or, at Ashford’s election, settled in Ashford’s
common stock. Since 2008, we have issued 4.4 million LTIP units. As of June 30, 2011, all but 1.2
million of the LTIP units issued in May 2011 had reached full economic parity with the common units
and are convertible into common partnership units. All the LTIP units issued on or before June 30,
2011 had an aggregate value of $41.4 million at the date of grant which is being amortized over
their vesting periods. Compensation expense of $2.6 million and $3.4 million was recognized for the
three and six months ended June 30, 2011, respectively, and $864,000 and $1.2 million was
recognized for the three and six months ended June 30, 2010. The unamortized value of the LTIP
units was $33.1 million at June 30, 2011, which will be amortized over periods from 0.2 year to 4.7
years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the six months ended June 30, 2011, 100,000 operating partnership units with a fair
value of $1.0 million presented for redemption were converted to common shares at our election.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Redeemable noncontrolling interests, including the LTIP units, in our operating partnership as
of June 30, 2011 and December 31, 2010 were $163.0 million and $126.7 million. The carrying value
of redeemable noncontrolling interests as of June 30, 2011 and December 31, 2010 included
adjustments of $107.1 million and $72.3 million, respectively, to reflect the excess of redemption
value over the accumulated historical costs. These redeemable noncontrolling interests were
allocated net loss of $3.4 million and net income of $1.7 million for the three and six months
ended June 30, 2011, respectively. For the three and six months ended June 30, 2010, these
redeemable noncontrolling interests were allocated net income of $1.1 million and $1.9 million,
respectively. During the three and six months ended June 30, 2011, we declared distributions to the
operating partnership units totaling $2.0 million and $3.8 million. This distribution was recorded
as a reduction of redeemable noncontrolling interests in operating partnership. No distributions
were declared for the three and six months ended June 30, 2010.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>12. Equity and Equity-Based Compensation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Preferred Stock Offering and Redemption of Series B-1 Convertible Preferred Stock</i></b></u> —
In April 2011, we completed the offering of 3.35 million shares (including 350,000 shares pursuant
to the underwriters’ exercise of an over-allotment option) of our 9.00% Series E Cumulative
Preferred Stock at a net price of $24.2125 per share, and we received net proceeds of $80.8 million
after underwriting fees. Of the net proceeds from the offering, $73.0 million was used to redeem
5.9 million shares of the total 7.3 million shares of our Series B-1 convertible preferred stock
outstanding on May 3, 2011. The remaining proceeds were used for other general corporate purposes.
The remaining 1.4 million outstanding Series B-1 convertible preferred shares were converted into
1.4 million shares of our common stock, which was treated as a dividend of $17.4 million paid to
the Series B-1 preferred shareholder in accordance with the applicable accounting guidance.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Sale of Additional Shares of Our Common Stock</i></b></u> — In January 2011, an underwriter
purchased 300,000 shares of our common stock through the partial exercise of the underwriter’s
1.125 million share over-allotment option in connection with the issuance of 7.5 million shares of
common stock completed in December 2010, and we received net proceeds of $2.8 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Resumption of Common Dividends</i></b></u> — In February 2011, the Board of Directors accepted
management’s recommendation to resume paying cash dividends on our outstanding shares of common
stock with an annualized target of $0.40 per share for 2011. The dividends of $0.10 for each of the
first and second quarter of 2011 were paid in April and July, 2011, and subsequent payments will be
reviewed on a quarterly basis.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Equity-Based Compensation</i></b></u> — During the three and six months ended June 30, 2011, we
recognized compensation expense of $960,000 and $1.9 million, respectively, related to our
equity-based compensation plan. Compensation expense of $1.2 million and $2.1 million was
recognized for the three and six months ended June 30, 2010, respectively. As of June 30, 2011, the unamortized amount of the unvested shares of restricted equity was $4.9
million and is being amortized over periods from 0.13 year to 3.8 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Preferred Dividends</i></b></u> — The Board of Directors declared dividends of $0.5344 per share
per quarter for our 8.55% Series A preferred stock, or $795,000 per quarter, and $0.5281 per share
per quarter for our 8.45% Series D preferred stock, or $4.7 million per quarter, for the first two
quarters of 2011 and 2010. During the quarter ended June 30, 2011, the Board of Directors also
declared dividends of $0.45625 per share, or $1.5 million, for our 9% Series E preferred stock.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Noncontrolling Interests in Consolidated Joint Ventures</i></b></u> — Noncontrolling joint
venture partners have ownership interests ranging from 11% to 25% in five hotel properties with a
total carrying value of $15.2 million and $16.7 million at June 30, 2011 and December 31, 2010,
respectively, and are reported in equity in the consolidated balance sheets. Noncontrolling
interests in consolidated joint ventures were allocated income of $438,000 and $1.4 million for the
three and six months ended June 30, 2011, respectively, and loss of $427,000 and $1.1 million for
the three and six months ended June 30, 2010, respectively.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Restricted Cash</i></b></u> — Under certain management and debt agreements for our hotel
properties existing at June 30, 2011, escrow payments are required for insurance, real estate
taxes, and debt service. In addition, for certain properties based on the terms of the underlying
debt and management agreements, we escrow 4% to 6% of gross revenues for capital improvements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Franchise Fees</i></b></u> — Under franchise agreements for our hotel properties existing at June
30, 2011, we pay franchisor royalty fees between 2.5% and 7.3% of gross room revenue and, in some
cases, food and beverage revenues. Additionally, we pay fees for marketing, reservations, and other
related activities aggregating between 1% and 3.75% of gross room revenue and, in some cases, food
and beverage revenues. These franchise agreements expire on varying
dates between 2013 and 2034.
When a franchise term expires, the franchisor has no obligation to renew the franchise. A franchise
termination could have a material adverse effect on the operations or the underlying value of the
affected hotel due to loss of associated name recognition, marketing support, and centralized
reservation systems provided by the franchisor. A franchise termination could also have a material
adverse effect on cash available for distribution to shareholders. In addition, if we breach the
franchise agreement and the franchisor terminates a franchise prior to its expiration date, we may
be liable for up to three times the average annual fees incurred for that property.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our continuing operations incurred franchise fees of $7.4 million and $14.1 million for the
three and six months ended June 30, 2011, respectively, and $6.4 million and $12.1 million for the
three and six months ended June 30, 2010, respectively, which are included in other expenses in the
accompanying consolidated statements of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Management Fees</i></b></u> — Under management agreements for our hotel properties existing at
June 30, 2011, we pay a) monthly property management fees equal to the greater of $10,000 (CPI
adjusted since 2003) or 3% of gross revenues, or in some cases 2% to 7% of gross revenues, as well
as annual incentive management fees, if applicable, b) market service fees on approved capital
improvements, including project management fees of up to 4% of project costs, for certain hotels,
and c) other general fees at current market rates as approved by our independent directors, if
required. These management agreements expire from 2012 through 2044, with renewal options. If we
terminate a management agreement prior to its expiration, we may be liable for estimated management
fees through the remaining term, liquidated damages or, in certain circumstances, we may substitute
a new management agreement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Taxes</i></b></u><b><i> — </i></b>We and our subsidiaries file income tax returns in the federal jurisdiction
and various states. Tax years 2007 through 2010 remain subject to potential examination by certain
federal and state taxing authorities. In 2009 and 2010, the Internal Revenue Service (IRS) audited
one of our taxable REIT subsidiaries that leases two of our hotel properties for the tax year ended
December 31, 2007. In September 2010, the IRS issued a notice of proposed adjustment that reduced
the amount of rent we charged to the taxable REIT subsidiary. We own a 75% interest in the
hotel properties and the taxable REIT subsidiary at issue. We strongly disagreed with the IRS’
position and in October 2010, we filed a written protest with the IRS and requested an IRS Appeals
Office conference. In determining amounts payable by our TRS subsidiaries under our leases, we
engaged a third party to prepare a transfer pricing study which concluded that the lease terms were
consistent with arm’s length terms as required by applicable Treasury regulations. If the IRS had
prevailed in its proposed adjustment, our taxable REIT subsidiary would have owed approximately
$1.1 million additional U.S. federal income taxes plus possible additional state income taxes of
$68,000, net of federal benefit. In June 2011, the IRS granted the Appeals conference and scheduled
it for late September 2011. However, in July 2011, the IRS notified us that in lieu of the September 2010 proposed adjustment, they intend
to impose a 100% federal excise tax on our share of the amount by which the rent was held to be
greater than the arm’s-length rate. If the IRS proceeds with the excise tax and prevails, our REIT
would owe approximately $5.7 million of U.S. federal excise
taxes. As a result of this recent change in the IRS’ approach,
the Appeals Office conference has been postponed but no date has been
selected as of yet. We intend to vigorously protest
this potential assessment. We believe the IRS transfer pricing methodologies applied in the audit
contain flaws and that the IRS adjustment to the rent charges is inconsistent with the U.S. federal
tax laws related to REITs and true leases. We believe we will prevail in the eventual settlement of
the audit and that the settlement will not have a material adverse effect on our financial
condition and results of operations. In May 2011, the IRS commenced an audit of this same TRS for
the tax year ended December 31, 2008. In addition, in June 2011, the IRS notified us of their
intent to examine the federal income tax return of this TRS for the tax year ended December 31,
2009. During 2010, the Canadian taxing authorities selected our TRS subsidiary that leased our one
Canadian hotel for audit for the tax years ended December 31, 2007, 2008 and 2009. The Canadian
hotel was sold in June 2008 and the TRS ceased activity in Canada at that time. We believe that the
results of the completion of this examination will not have a material adverse effect on our
financial condition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     If we dispose of the four remaining properties contributed in connection with our initial
public offering in 2003 in exchange for units of operating partnership, we may be obligated to
indemnify the contributors, including our Chairman and Chief Executive Officer, each of whom have
substantial ownership interests, against the tax consequences of the sale. In addition, we agreed
to use commercially reasonable efforts to maintain non-recourse mortgage indebtedness of at least
$16.0 million, which allows contributors of the Las Vegas hotel property to defer gain recognition
in connection with their contribution.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Additionally, for certain periods of time, we are prohibited from selling or transferring the
Marriott Crystal Gateway in Arlington, Virginia, if as a result of
such transactions, the entity from which we acquired
the property would recognize gain for federal tax purposes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Further, in connection with our acquisition of certain properties on March 16, 2005 that were
contributed in exchange for units of our operating partnership, we agreed to certain tax
indemnities with respect to ten of these properties. If we dispose of these properties or reduce
debt on these properties in a transaction that results in a taxable gain to the contributors, we
may be obligated to indemnify the contributors or their specified assignees against the tax
consequences of the transaction.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In general, tax indemnities equal the federal, state, and local income tax liabilities the
contributor or their specified assignee incurs with respect to the gain allocated to the
contributor. The contribution agreements’ terms generally require us to gross up tax indemnity
payments for the amount of income taxes due as a result of such tax indemnities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Potential Pension Liabilities</i></b></u> — Certain employees at one of our hotel properties are
unionized and covered by a multiemployer defined benefit pension plan. At acquisition of the hotel
property in 2006, there were no unfunded pension liabilities. Although those workers are not our
employees, the hotel manager of that hotel property may in the future de-unionize given their work
rules. It is reasonably possible that we may incur additional cost for the unfunded pension
liabilities should a de-unionizing occur. As of June 30, 2011, we have accrued $111,000 for the
potential unfunded liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u><b><i>Litigation</i></b></u> — We are currently subject to litigation arising in the normal course of
our business. In the opinion of management, none of these lawsuits or claims against us, either
individually or in the aggregate, is likely to have a material adverse effect on our business,
results of operations, or financial condition. In addition, management believes we have adequate
insurance in place to cover any such significant litigation.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>14. Fair Value of Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The authoritative accounting guidance requires disclosures about the fair value of all
financial instruments. Determining estimated fair values of our financial instruments requires
considerable judgment to interpret market data. The use of different market assumptions and/or
estimation methodologies may have a material effect on the estimated fair value amounts.
Accordingly, the estimates presented are not necessarily indicative of the amounts at which these
instruments could be purchased, sold or settled. The carrying amounts and estimated fair values of
financial instruments, for periods indicated, were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="30%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="17%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">154,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">154,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">217,690</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">217,690</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">74,257</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">74,257</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">67,666</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">67,666</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">39,758</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39,758</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27,493</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27,493</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Notes receivable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,039</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">1,805 to $1,996</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20,870</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">6,756 to $7,467</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">72,327</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,327</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">106,867</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">106,867</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Due from third-party hotel managers
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55,248</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55,248</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,135</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,135</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Indebtedness of continuing operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,445,424</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">2,171,052 to $2,399,584</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">2,518,164</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,082,207 to $2,301,387</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Indebtedness of assets held for sale
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,619</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">44,587 to $49,281</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable and accrued expenses
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">86,663</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">86,663</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">79,248</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">79,248</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Dividends payable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,165</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,165</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,281</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,281</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Due to related party
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,656</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,656</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,400</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,400</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Due to third-party hotel managers
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,270</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,270</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,870</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,870</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Cash, cash equivalents and restricted cash. </i>These financial assets bear interest at
market rates and have maturities of less than 90 days. The carrying value approximates fair value
due to the short-term nature.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Accounts receivable, due to/from related party or third-party hotel managers, accounts
payable, accrued expenses, and dividends payable</i>. The carrying values of these financial
instruments approximate their fair values due to the short-term nature of these financial
instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Notes receivable. </i>Fair value of the notes receivable may be determined by using similar loans
with similar collateral. Since there is very little to no trading activity we had to rely on our
internal analysis of what we believe a willing buyer would pay for these notes. We estimated the
fair value of the notes receivable to be approximately 34% to 41% lower than the carrying value of
$3.0 million at June 30, 2011, and approximately 64% to 68% lower than the carrying value of $20.9
million at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Indebtedness. </i>Fair value of the indebtedness is determined using future cash flows discounted
at current replacement rates for these instruments. For variable rate instruments, cash flows are
determined using a forward interest rate yield curve. The current replacement rates are determined
by using the U.S. Treasury yield curve or the index to which these financial instruments are tied,
and adjusted for the credit spreads. Credit spreads take into consideration general market
conditions, maturity and collateral. For the indebtedness valuation, we used estimated future cash
flows discounted at applicable index forward curves adjusted for credit spreads. We estimated the
fair value of the total indebtedness to be approximately 2% to 11% lower than the carrying value of
$2.4 billion at June 30, 2011, and approximately 8% to 17% lower than the carrying value of $2.6
billion at December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Interest rate derivatives. </i>Fair value of the interest rate derivatives are determined using
the net present value of the expected cash flows of each derivative based on the market-based
interest rate curve and adjusted for credit spreads of Ashford and the counterparties. See Note 10
for a complete description of the methodology and assumptions utilized in determining the fair
values.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>15. Segment Reporting</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We operate in two business segments within the hotel lodging industry: direct hotel
investments and hotel financing. Direct hotel investments refer to owning hotels through either
acquisition or new development. We report
operating results of direct hotel investments on an aggregate basis as substantially all of our
hotel investments have similar economic characteristics and exhibit similar long-term financial
performance. Hotel financing refers to owning subordinate hotel-related mortgages through
acquisition or origination. We do not allocate corporate-level accounts to our operating segments,
including corporate general and administrative expenses, non-operating interest income, interest
expense and amortization of loan costs, and income tax expense/benefit. Financial information
related to our reportable segments was as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Direct Hotel</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Hotel</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Investments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Financing</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three Months Ended June 30, 2011:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">230,099</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">230,099</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total hotel operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">144,438</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">144,438</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">11,769</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,769</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">33,027</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,027</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,316</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,316</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain on insurance settlement
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Transaction acquisition costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate general and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,005</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,005</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">187,329</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,316</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">11,411</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">194,424</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">42,770</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,316</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,411</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35,675</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in loss of unconsolidated joint
ventures
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,301</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,301</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,157</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of
loan costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,808</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,808</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,694</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,694</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing
operations before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">40,469</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,316</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(45,733</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(948</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(285</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(285</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">40,469</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,316</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(46,018</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,233</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>As of June 30, 2011:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,379,843</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,569</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">241,422</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,624,834</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three Months Ended June 30, 2010:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">217,293</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">346</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">217,639</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total hotel operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">140,760</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">140,760</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">12,313</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,313</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">32,906</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,906</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,188</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,188</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate general and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,323</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,323</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">185,979</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,188</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">8,323</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">193,114</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">31,314</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,534</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,323</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24,525</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of unconsolidated
joint ventures
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">664</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">664</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,652</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,652</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of
loan costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35,321</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35,321</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized gain on derivatives
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,534</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,534</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing
operations before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">31,314</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,198</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,407</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">22,105</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(414</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(414</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31,314</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,198</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,821</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">21,691</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>As of June 30, 2010:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,496,914</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">58,320</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">331,897</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,887,131</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Direct Hotel</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Hotel</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Investments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Financing</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Six Months Ended June 30, 2011:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">441,889</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">441,889</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total hotel operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">282,298</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">282,298</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">22,656</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,656</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">65,804</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,804</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,656</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,656</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain on insurance settlement
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Transaction acquisition costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(818</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(818</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate general and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,888</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,888</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">368,853</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,656</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24,070</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">388,267</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">73,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,656</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24,070</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">53,622</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of unconsolidated
joint ventures
</div></td>
<td> </td>
<td> </td>
<td align="right">25,824</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,824</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,160</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,160</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of
loan costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(69,386</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(69,386</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,511</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,511</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing
operations before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">98,860</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,656</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(91,748</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41,768</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,329</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,329</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">98,860</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34,656</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(93,077</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">40,439</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Six Months Ended June 30, 2010:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">415,484</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">683</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">416,167</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total hotel operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">271,511</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">271,511</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">25,390</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,390</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">66,749</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate general and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,981</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,981</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">363,650</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14,981</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">376,674</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">51,834</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,640</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,981</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39,493</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of unconsolidated
joint ventures
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,322</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,322</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,171</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,171</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense and amortization of
loan costs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70,385</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70,385</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized gain on derivatives
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,442</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,442</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing
operations before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">51,834</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,962</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,641</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">32,155</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(458</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(458</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">51,834</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,962</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(24,099</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">31,697</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>16. Pro Forma Financial Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As discussed in Notes 3 and 6, on March 10, 2011, we and PREI formed the PIM Highland JV to
take ownership of the Highland Hospitality Portfolio through a debt restructuring and consensual
foreclosure. At closing, we invested $150.0 million and PREI invested $50.0 million to fund capital
expenditures and to reduce debt. We own 71.74% of the joint venture and PREI owns the remaining
28.26%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following unaudited pro forma statements of operations for the six months ended June
30, 2011 and 2010 are based on our historical consolidated financial statements adjusted to give
effect to the completion of the acquisition of
the Highland Hospitality Portfolio as if the transaction had occurred at January 1, 2010 and
January 1, 2011. The pro forma financial information is prepared for informational purposes only
and does not purport to be indicative of what would have resulted had the acquisition transaction
occurred on the date indicated or what may result in the future (in            thousands, except per
share amounts).
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Six Months Ended</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Six Months Ended</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>As</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Pro Forma</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Pro Forma</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>As</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Pro Forma</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Pro Forma</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Reported</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjusted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Reported</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjusted</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Hotel revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">441,741</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">441,741</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">415,272</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">415,272</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">895</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">895</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">441,889</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">441,889</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">416,167</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">416,167</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Hotel expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">282,298</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">282,298</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">271,511</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">271,511</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property taxes, insurance and other
</div></td>
<td> </td>
<td> </td>
<td align="right">22,656</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,656</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,390</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,390</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">65,804</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,804</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,749</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,656</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,656</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain on insurance settlement
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,905</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Transaction acquisition costs
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(818</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1,089</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td> </td>
<td align="right">271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate general and administrative and other
</div></td>
<td> </td>
<td> </td>
<td align="right">24,888</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,888</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,981</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,981</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">388,267</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,089</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">389,356</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">376,674</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">376,674</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">53,622</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,089</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">52,533</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,493</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,493</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity in
earnings (loss) of unconsolidated joint ventures
</div></td>
<td> </td>
<td> </td>
<td align="right">25,824</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">(39,049</td>
<td align="right" nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)(3)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,225</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,322</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,196</td>
<td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,874</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest and other income
</div></td>
<td> </td>
<td> </td>
<td align="right">66,219</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,219</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,283</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,283</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest expense and amortization of loan costs
and write-off of loan costs and exit fees
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(69,386</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(69,386</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70,385</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70,385</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized gain (loss) on derivatives
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,511</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34,511</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">30,442</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,442</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income tax expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,329</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,329</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(458</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(458</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td> </td>
<td align="right">40,439</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(40,138</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">301</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,697</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,196</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">19,501</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">(Income) loss from continuing operating attributable
to noncontrolling interests
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,670</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4,933</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td> </td>
<td align="right">2,263</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,826</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1,910</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,916</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
attributable to the Company
</div></td>
<td> </td>
<td> </td>
<td align="right">37,769</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35,205</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,564</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,871</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,286</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,585</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Preferred dividends
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31,326</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31,326</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,661</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,661</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations available
to common shareholders
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,443</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(35,205</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(28,762</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">18,210</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,286</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">7,924</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations per share — basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.50</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.34</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.15</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations per share — diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.50</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.15</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average number of shares outstanding — basic
</div></td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,953</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,953</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average number of shares outstanding — diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,401</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,953</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>To eliminate transaction costs credit recorded in our financial statements.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>To reflect our 71.74% loss in PIM Highland JV that owns the Highland Hospitality
Portfolio, which is calculated as follows:</td>
</tr>
</table>
<div align="left">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="32%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="24%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="13%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Historical net income of Highland Hospitality Portfolio
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">51,146</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,305</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Pro forma adjustments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional hotel operating results for the period from
January 1, 2011 through March 10, 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">11,981</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional interest related to assumed debt at higher rates
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,372</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,531</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of loan costs incurred from assuming debt
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(813</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,298</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional depreciation expense based on the fair value of
the hotel properties at acquisition and the useful lives
under our accounting policies
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,702</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,476</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional corporate general and administrative expense
for the period from January 1, 2011 through March 10, 2011
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(565</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Removal of gain recognized at acquisition
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(75,372</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Removal of transaction acquisition costs
</div></td>
<td> </td>
<td> </td>
<td align="right">18,263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Pro forma adjusted net loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,434</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,000</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Our percentage ownership
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">x 71.74</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">x 71.74</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Our portion of PIM Highland JV net loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,225</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,196</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Reversal of equity earnings recorded
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25,824</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(39,049</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(12,196</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>The equity loss in unconsolidated joint ventures does not include $18.3 million of
closing costs incurred by PIM Highland JV.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td>To reflect our 71.74% loss in PIM Highland JV that is attributable to noncontrolling
interests.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:SubsequentEventsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>17. Subsequent Events</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2011, we reissued 7.0 million shares of our treasury stock at a gross price of $12.50
per share and received net proceeds of approximately $83.3 million. The net proceeds were used to
repay our outstanding borrowings under our existing senior credit facility of $50.0 million and the
remaining proceeds for general corporate purposes, including without limitation, financing future
hotel related investments, capital expenditures and working capital or repayment of debt and other
obligations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2011, we completed the sale of the Hampton Inn hotel property in Jacksonville, Florida
and received net proceeds of $9.6 million.
</div>
</div>
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--12-31
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