Hotel & Leisure Announces New Asset and Distressed Property Services

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. February 17, 2009

CLEVELAND, OH, February 6, 2009 - Hotel & Leisure Advisors (H&LA) announced today that it is adding asset management and distressed property services to its list of hospitality consulting services. With these services, H&LA will help owners, lenders, attorneys, and managers of hotels, resorts, and indoor waterpark resorts respond effectively to the economic challenges now facing the lodging industry. David J. Sangree, MAI, CPA, ISHC, and the experienced staff of H&LA will conduct operational analysis and ongoing asset management on behalf of owners, management, lenders, and franchisors. They will provide litigation support and valuation services, act as a receiver, and provide physical condition assessments.

Asset Management Services

For properties that are reevaluating their business model in response to difficult economic times, H&LA offers various services including:

• Operational Analysis Services: H&LA offers comprehensive market research and analysis of operations, marketing, accounting, and existing contracts. We analyze areas where the hotel is performing well and areas that are in need of improvements. Our report considers both objective and subjective performance characteristics through our inspection of the property and the completion of various interviews. We perform a financial review comparing the subject's financial performance with industry standards and our database of over 1,000 financial statements of hotels. The study can be combined with a Physical Condition Assessment to analyze the physical condition and maintenance status of the buildings and property, and make recommendations for renovations and repairs.

• Ongoing Asset Management: H&LA works with the hotel management company, franchisor, and the owner to optimize the value of the hotel, resort, or indoor waterpark resort through the development of a customized asset management plan. In developing the plan, H&LA will complete the following:

o Periodic site visits: As part of an ongoing asset management contract, H&LA makes periodic inspections and meets with management, owners and other concerned parties to discuss current performance and recommendations for the future.

o Monthly Reports: Consultants continually examine and benchmark existing performance and strategic marketing efforts. They identify opportunities for continued improvement in performance and communicate their findings through monthly reports and engaged web-based communications.

o Compliance Reviews: H&LA reviews contracts with franchisors, suppliers, and other outside servicers to ensure compliance. H&LA also provides compliance analysis of loan documents, management agreements, equipment leases, franchise brand product improvement plans (PIP), and franchise agreements.

Distressed Property Services

For lenders, attorneys, owners, brokers, and others analyzing distressed properties, H&LA offers the following suite of services:

• Litigation Support Services: Consultants provide expert witness testimony and deposition consulting regarding valuation, financial performance, operations, strategic marketing, and accounting methodologies.

• Receivership Services: As a court appointed trustee, H&LA acts as a receiver, controls cash flow and protects the operational integrity of the asset. The physical integrity of the property is protected through capital expenditure analysis and various asset management strategies. H&LA assists in determining the appropriate course of action for the property, including liquidation and disposition activities if required.

• Valuation Services: H&LA conducts distressed property valuations through MAI appraisals. These appraisals provide thorough market analysis and value conclusions on an "as-is value," "liquidation value," and "as-stabilized value" basis. H&LA's valuation services are used for loan defaults, bankruptcies, refinancing, and other valuation issues.

• Physical Condition Assessment (PCA): Led by Eric B. Hansen, AIA, ISHC, a 15-year hospitality industry architect and consultant, H&LA assesses and reports on the general physical condition and maintenance status of the buildings and property -including furniture, fixtures and equipment - compared to the competitive set of properties and franchise standards. H&LA reviews capital budgets and compares them to industry standards. H&LA makes recommendations on the type and cost of renovations necessary to stabilize or bring the property up to industry standards.

H&LA president, David J. Sangree, MAI, CPA, ISHC commented on the new services, "H&LA's asset management services are a natural extension of the core feasibility, appraisal and consulting business that Hotel & Leisure Advisors already brings to the industry. These services will allow our clients to stabilize and correctly position their lodging and waterpark resort properties within their competitive markets during these difficult economic times."