CONTINUING OPERATIONS HOTEL PORTFOLIO (35 HOTELS)
EFFECTIVE 2008 FIRST QUARTER
PRO FORMA INCOME STATEMENT

	2007												2006
	Fourth			Third			Second			First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
										(Unaudited in thousands)
Revenues:
Rooms	$	39,468		$	45,549		$	47,809		$	41,540		$	38,202		$	42,219		$	45,441		$	39,060
Food and beverage		13,319			12,033			14,231			11,650			12,726			10,792			13,007			9,787
Other		1,694			1,994			2,038			1,600			1,700			1,736			1,807			1,518
		54,481			59,576			64,078			54,790			52,628			54,747			60,255			50,365
Direct operating expenses:
Rooms		10,129			11,605			11,363			10,263			10,117			10,907			11,025			9,843
Food and beverage		8,380			8,878			9,245			8,259			8,537			8,116			8,655			7,327
Other		1,210			1,436			1,406			1,212			1,234			1,320			1,451			1,236
		19,719			21,919			22,014			19,734			19,888			20,343			21,131			18,406
		34,762			37,657			42,064			35,056			32,740			34,404			39,124			31,959
Other operating expenses:
Other hotel operating costs		15,624			17,171			16,906			16,131			14,809			15,564			15,452			15,044
Property and other taxes, insurance and leases		4,210			3,967			4,291			4,698			4,950			4,902			3,961			3,666
Corporate and other		4,250			5,577			5,905			5,664			4,942			5,587			5,259			4,911
Casualty (gain) losses, net		—			—			—			(1,867	)		—			(3,085	)		34			166
Restructuring		(26	)		1,258			—			—			—			—			—			—
Depreciation and amortization		7,329			7,077			6,955			6,831			6,780			6,939			6,762			6,316
Impairment of long-lived assets		470			395			141			153			147			281			13			191
Other operating expenses		31,857			35,445			34,198			31,610			31,628			30,188			31,481			30,294
		2,905			2,212			7,866			3,446			1,112			4,216			7,643			1,665
Other income (expenses):
Business interruption insurance proceeds		—			299			272			—			530			2,706			695			—
Interest income and other		913			1,312			807			912			652			770			835			301
Other interest expense		(5,567	)		(5,730	)		(5,816	)		(5,154	)		(5,225	)		(5,403	)		(5,153	)		(4,907	)
Loss on debt extinguishment		—			—			(3,329	)		—			—			—			—			—
(Loss) income before income taxes and minority interests		(1,749	)		(1,907	)		(200	)		(796	)		(2,931	)		2,289			4,020			(2,941	)
Minority interests (net of taxes, nil)		—			—			(56	)		(365	)		335			100			(136	)		(4	)
(Loss) income before income taxes — continuing operations		(1,749	)		(1,907	)		(256	)		(1,161	)		(2,596	)		2,389			3,884			(2,945	)
(Provision) benefit for income taxes — continuing operations		(2,114	)		907			392			677			(2,121	)		(1,315	)		(2,004	)		764
(Loss) income from continuing operations	$	(3,863	)	$	(1,000	)	$	136		$	(484	)	$	(4,717	)	$	1,074		$	1,880		$	(2,181	)