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05/01/2019
FINANCIAL FEASIBILITY STUDY
La Quinta Inn & Suites

8888 East Overhill Lane
Townsville, Texas 77777
P.O. Box 120055 ♦ 134 Laurel Heights ♦ San Antonio, Texas 78212 ♦ (210) 734.3434 ♦ SourceStrategies.org
1
May 01, 2019

FINANCIAL FEASIBILITY STUDY:
La Quinta Inn & Suites
8888 East Overhill Lane
Townsville, Texas 79603
This study has been prepared to determine the financial feasibility of building and operating an
85 unit La Quinta Inn & Suites Hotel on a 2.2 acre tract on the north side of the Interstate 44
frontage road (E. Overhill Lane) at the Highway 500 intersection, in Townsville, Texas. The
site is in an area of new development expanding east from an existing Walmart Supercenter and
other businesses and prominent hotels. It is a very easy commute from the hotel to many
popular restaurants and retail businesses. As a multi-story building with proper signage, the
property will have excellent visibility, and easy access to local travelers.
Project quality is set to meet the physical and operating standards of the La Quinta brand’s new
‘Del Sol’ prototype. The La Quinta brand was recently purchased by Wyndham Hotels, whose
brands also include Wyndham, Wyndham Garden, Wingate, Hawthorne Suites, Microtel,
Baymont, Days Inn, Tryp. Ramada, Super 8, Travelodge and Howard Johnson. All projections
herein are based on operating this hotel as a La Quinta Inn & Suites hotel, and retaining the
brand in good standing at the time of an assumed sale after 10 years. Estimated market
acceptance for a new La Quinta Del Sol has been measured and quantified versus market
averages, and is assumed in developing this study. Operating costs are set at an average level
for Limited Service hotels in the region.
KEY FINDING: Developing and opening a La Quinta Inn and Suites at this site should
generate an unleveraged, pre-tax return on total invested capital exceeding 14%, with a return
on equity exceeding 49% (DCF). This return on invested capital is after payment of a third
party management company fee, and assumes that improvements are completed at the
estimated cost of $96,471 per unit, plus $90,000 for land. At this level of capital investment,
this is a good hotel investment. Project details follow:
2
Total Investment
Land Value $ 90,000 (for 2.2 acres)

Improvements Budget $ 8,200,000 @ $96,471 per key 1
Total Net Investment $ 8,290,000
Pre-Tax Project Return 14.25% 2

Pre-Tax Return on Equity 49.25% 3
This study incorporates the recent fluctuations in the Texas hotel market, the rebound from
the 2008 national recession, and the continued impact of the Permian Basin and the Eagle
Ford Shale Oil and Gas developments. In our Market section, we highlight the historical hotel
performance in Texas, noting the effect of past recessions. Consequently, our market
projections consider how the lodging industry reacts in times of economic downturn and in
normal times. See the Market section for further details.
With an October 2020 opening, cash flow market projections for the subject La Quinta Inn &
Suites hotel before taxes and after renovation reserves, should be available for debt service,
income tax and dividends as follows:
Project Summary
Occupancy Average $ Total
Percent Rate* $ REVPAR Revenue Cash Flow**
Year I 64.1% $97.63 $62.58 $1,990,052 $180,696
Year II 72.9% $102.51 $74.70 $2,375,513 $998,222
Year III 74.5% $107.64 $80.15 $2,548,681 $1,082,560
Year IV 73.7% $111.40 $82.15 $2,612,398 $1,113,276
Year V 73.7% $114.63 $84.50 $2,687,204 $1,146,317
Year VI 72.8% $117.50 $85.58 $2,721,598 $1,155,511
Year VII 72.0% $120.43 $86.68 $2,756,432 $1,164,691
Year VIII 71.1% $123.44 $87.79 $2,791,711 $1,173,852
Year IX 70.3% $126.53 $88.91 $2,827,442 $1,182,991
Year X 69.7% $129.06 $90.00 $2,862,067 $13,861,179 ***
*Year I ADR equates to approximately $95 in current market dollars. **Before Income Tax & Financing expense, but reflecting
$1,439,520 in reserves for capital expenditures/property renovation ($16,936 per unit). ***Assumes valuing property at Year 10 cash
flow at a 9% return-to-buyer, less 4% expense of sale, plus year 10 cash flow.
1. Developer estimate of land and development costs.

2. After reserve for on-going renovations and a reasonable management fee.
3. Assuming 20% equity and 80% debt at a 5.5% pre-tax debt cost; calculated weighted average.
3
The above cash flow, assuming a Year 10 sale, has been discounted at the rate of 14.25% to a
present value of $8,288,003, essentially equaling the total budgeted investment of $8,290,000. This
14.25% is the project's unleveraged return, provided capital costs are kept at the estimated level.
An estimated capital budget for construction and FF&E of $96,471 per unit 'turn-key' costs is in
the reasonable range for a hotel of this size and quality, in our experience (though the land cost
is notably low). If capital outlays vary from the current budget for this project, returns will vary
accordingly. The following table and graph illustrates the linear nature of financial returns as capital
requirements escalate or decline and revenue streams remain stable.
Effect on Returns if Capital Investment Changes

Improvements Budget Discounted Cash Flow
Total Total
Variance Per Unit Total Land Cost Investment Project On Equity
(85%) $82,000 $6,970,000 $90,000 $7,060,000 16.90% 62.50%
(90%) $86,824 $7,380,000 $90,000 $7,470,000 15.95% 57.75%
(95%) $91,647 $7,790,000 $90,000 $7,880,000 15.07% 53.35%
BUDGET $96,471 $8,200,000 $90,000 $8,290,000 14.25% 49.25%
(105%) $101,294 $8,610,000 $90,000 $8,700,000 13.47% 45.35%
(110%) $106,118 $9,020,000 $90,000 $9,110,000 12.75% 41.75%
(115%) $110,941 $9,430,000 $90,000 $9,520,000 12.07% 38.35%
4
The first stabilized year (Year III) shows the following results:
Year III (2022-2023)
Room Revenues $2,486,518
Total Revenues $2,548,681
Income Before Fixed Costs $1,369,808 53.7%
Net Income Before Tax & Fin. $1,012,481 39.7%
Cash Flow Before Financing $1,082,560 42.5% *
Occupancy % 74.5%
Average Daily Rate $107.64
$ REVPAR $80.15
Per Occupied Room Cost $47.26
*Before deductions of loan principal and interest, before income tax deductions, and before any equity payout.
The critical statistic used in this study is REVPAR. REVPAR means revenue per
available room per day, and reflects the average daily room revenue yield of every room
in a property or market (not just occupied rooms). REVPAR is generated by multiplying
occupancy times rate (i.e. REVPAR = % occupancy times average daily rate), and is the
most effective and important tool in the evaluation of the success of any lodging concern.
SUMMARY OF CRITICAL ASSUMPTIONS: Assumptions are summarized as follows (see

page 12 for full Market History and Projection study, and page 8 for Methodology):
1. Projections of the local City of Townsville Market 4 reflect a mixture of old and newer hotels.
Typically, a new hotel will have an inordinate advantage over older products. The average hotel room
in the local market is over 23 years old, well past the peak performing first ten years of the life cycle
of the typical hotel building, which becomes stylistically and structurally obsolete after 30+ years.
This 30 year life cycle is significantly longer for high-rise/concrete structures. Out of 3,126 total
rooms in the local market, 893, or 29% have been built since 2009, while 1,608, or 51% were opened
before 1999 (at least 20 years old). There is typically a wide and dramatic gap between the
performance of new and older properties, with newer hotel inventory easily outperforming older
hotels that are well past their peak performing years.
4. City of Townsville lodging market, (Hotels only).

5
We are comfortable with market projections, and expect market demand growth levels in the
area to solidify over the next nine years. Coupled with the expected amount of new supply,
partially offset by some older, outdated hotel properties being pushed out of the market, we
project that occupancy will return to an equilibrium level of 58% by the later years of our
projection. REVPAR is projected to grow at a reasonable 2.3% annual rate in the next five years
(versus a 2.9% average gain in the past nine years). Detailed local market history and projections
commence on page 22.
City of Townsville
Local Market
Occupancy $
Year % REVPAR
2010 46.4% $34.58
2012 52.7% $40.71
2014 58.1% $47.72
2016 54.3% $44.13
2018 59.4% $48.80
Projected
2019 59.1% $49.28
2021 58.7% $52.00
2024 58.0% $56.13
2027 58.0% $61.34
Historical Annual Compound Growth Rates
Past 9 Year Average 2.2% 2.9%
Future Annual Compound Growth Rates
Next 9 Years -0.3% 2.6%
Next 5 Years -0.4% 2.3%
*Calendar Year basis.

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2. Versus the local market's REVPAR dollar projections, the REVPAR index of the proposed
La Quinta Inn & Suites ramps upwards, peaking at 149% of the market average REVPAR in
Years III-V. Thereafter, the REVPAR Index declines due to the normal aging cycle. Detailed
REVPAR derivation and subsequent projections commence on page 31.
La Quinta Inn & Suites Derivation

Data in 2018 $'s Year I Year II Year III
Base: Name & Quality 1.09 1.09 1.09
x Brand Age Adjustment 1.17 1.17 1.17
x Site Value Adjustment 0.95 0.95 0.95
x Size Adjustment 1.00 1.00 1.00
x Other Adjustments 1.10 1.10 1.10
x Newness Adjustment 0.92 1.07 1.12
= Performance Factor 123% 143% 149%
x Market REVPAR $48.81 $48.81 $48.81

= Projected Performance $59.94 $69.71 $72.97
7
The projected REVPAR performance of the subject hotel, versus the local area market average
REVPAR reflects the fact that this hotel is expected to perform at a level well above the market
average in its peak years. The hotel's REVPAR index starts in Year I at 123% of the market, rises to
a peak of 149% of the market in Years III-V, then slowly loses ground versus the local area's typical
inflationary growth:
3. Expenses are set at the level of similar limited service hotel products from Host Almanac by
STR operating statistics, inflated at 3% per annum. See page 43 for details.
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METHODOLOGY
To develop Pro Forma financial results for the proposed project, two major sets of assumptions
have been developed. First, the future market's average REVPAR is forecast on a reasonable
and economically-sound basis; the performance of the project is dependent on this market forecast
and varies from it only due to specific variables of the project. Second, the specific variables of the
project are combined and expressed as an index for each quarter of the forecast, an index that
is used to adjust the overall market performance to the specific project.
MARKET REVPAR FORECAST

The wider 12 County Market around Townsville 5 is examined historically and projected. The key in
the market projections is to stabilize the wider area market in the future at a sustainable, average
equilibrium for occupancy, a level which we have determined to be approximately 56% for markets
of this type. This occupancy level is highly relevant as a long-term, equilibrium occupancy, a level
where investors are more neutral about adding new hotel rooms to the market and an average that will
reoccur over long periods of time (e.g. 20 years).
After the wider market area is forecast, the performance of the local City of Townsville Market 6 is
examined historically and projected. The key in the market projection is to stabilize this large market
in the future at a sustainable, average equilibrium for occupancy, a level which we have determined
to be approximately 58% in this market. Over the 20 years from 1987 through 2007, according to the
Source Strategies, Inc. database, hotel occupancy in Texas has averaged 60%, and 62% in larger
Texas metros. The REVPAR projection of the local market is then the pro forma market environment
of the project. This project will vary from the norm for only project-specific differences, and then
only relatively.
5
One, Two, Three, Four, Five, Six, Seven, Eight, Nine, Ten, Eleven and Twelve counties.
6 City of Townsville
9
PROJECT VARIABLES:
DEVELOPMENT OF PROJECT REVPAR INDICES
The first variable from the averages to be developed has to do with the fact that each product
type and brand have a typical and identifiable influence on REVPAR performance. This
variable is based on its consumer acceptance, its product definition, its level of quality, the price it
can command from the consumer, its marketing efforts, and other factors. The value of the brand and
product type is termed the Base Value.
The second adjustment used on the dollar value of the local area's REVPAR is the Brand Age
Adjustment. This is made to reflect the average age of similarly branded hotels on the subject
property's performance versus the market average. Typically, the opening dates of the same branded
hotels as the subject are examined in order to quantify this factor.
The third step to developing a project REVPAR index is to determine an adjustment based on
any deviation from a normal project. If the number of proposed rooms in the project is
significantly above or below the average for that brand, its performance will also vary from the norm.
A lower than average number of rooms should increase per room performance and vice versa. This is
due to the fact that consumer demand for a single brand is demand at the project's site, regardless of
the number of rooms offered by the hotel.
An empirical proof of this evaluation of Size is the major increase in volume enjoyed by numerous
hotels throughout Texas that have split into two branded operations, using two different names. For
example, the Hilton Hotel Towers Austin added $550,000 annually to revenues by splitting off its
adjacent, ground-based rooms as a Super 8 Motel. By creating another brand, the Super 8 began to
fill demand for budget properties in the immediate area, while the Hilton Towers kept its current
upscale customer base. Hence, smaller room counts than average generate higher occupancy than
average. Further proof is the correlation between project size and occupancy: the smaller the
property, the higher the occupancy. 7
An 'Other' segment adjustment may be made if the proposed product type is under- or over-
supplied in the local market, or for other factors. For example, a product type commanding 10% of
7. Study detailed in size factor derivation in analysis section.

10
the Texas market - but zero locally - would command a higher daily rate or occupancy locally
because it is a relatively scarce commodity. Further, a subject product far exceeds the product quality
of the brand average, then a positive adjustment should be made. While there is usually a reasonably
consistent pattern of site factors for the brand properties selected, these factors often vary because of
unique situations: 1) visibility and access differences between nearby sites; 2) any large variation
from the norm in the usual number of rooms for a chain; 3) a nearby property's quality, the quality of
management, last renovation; 4) any major new commercial development nearby. Adjustments will
be made for these differences based on industry experience.
Then the REVPAR potential of the subject Site is developed in two ways. First, all other
property factors except site are calculated for the competitors, the site factor then being used to bring
the calculated REVPAR into a match with actual REVPAR performance. In other words, combining
all factors including a 'plugged' site factor results in the theoretical REVPAR projection equaling
actual REVPAR for each property studied, revealing the mathematical value of individual hotel sites.
With the development of the adjustments for Brand/product type, overall Brand Age, Segment,
project Size, and Site, a revenue projection for the proposed operation begins to take form by
combining these factors into a combined index that is applied to the overall market-wide
REVPAR projection, resulting in the forecast of the project's dollar REVPAR. However, this
combined index changes as the project ages.
Consequently, the physical Age of the individual project impacts this REVPAR index. A +12%
increase factor is applied to the combined REVPAR index in the peak performing Year III
through Year V. A first-year start-up adjustment of -8% and a second year adjustment of +7%, is
followed by this +12% adjustment for years III-V. This factor reflects the major revenue-generating
power of new versus old properties.
In the sixth year and thereafter, the REVPAR index is then diminished at a rate of 1.67% per annum
in order to reflect aging and the normal life-cycle of a hotel. For a completely renovated property,
this factor is slightly different.
This pattern of declining performance with property aging is based on major studies of economic life-
cycle patterns. The first study was conducted on a census of all 25,000 Texas rooms built between
11
1980 and 1982 (study published in September 1994 issues of MarketShare 8 and the October 1994
issue of Hotel & Motel Management); the second investigation was conducted on all 17,231 rooms
built in Texas from 1990 through 1995. These Source Strategies, Inc. studies confirm a similar,
major study conducted in 1982 at the Holiday corporation on 160 company-owned Holiday Inn
hotels.
Combining all of these factors - Product Type, Brand Age, Site, Size, Segment (other), and
Newness (Age) - results in the REVPAR stream for the project. A REVPAR stream from
which room revenues, estimated rate, occupancy and room-nights sold are derived. At this
point, the investment and operational costs can be laid against the revenue line to generate pro
forma financial performance and discounted cash flow analysis.
The calculation of the statistic of Operating Costs Per Occupied Room (before fixed/capital costs are
deducted) is typically the important cost to examine carefully because it is highly stable and
predictable, regardless of occupancy and rate. The Host Almanac 2018: For the year 2017 by STR
with dollar costs inflated, and Source Strategies, Inc. financial models are the source of operating cost
statistics.
From national average occupancies, costs are categorized as fixed, semi-variable or variable,
resulting in the highly-leveraged profit performance characteristic of lodging products, depending on
occupancy and REVPAR performance (i.e. variable costs increase proportionately with higher
occupancy levels while fixed costs do not). Furthermore, with a capital expenditures profile provided
by the International Society of Hospitality Consultants' CapEx, A Study of Capital Expenditures in
the U.S. Hotel Industry, a method has been applied to determine an appropriate amount of renovation
reserves to ensure that the property is maintained at the franchisor's required level.
All study-area individual hotel/motel five year histories are included in the study, using the Source
Strategies, Inc. database of all Texas hotels and motels (includes each hotel’s brand, room count,
room revenue, occupancy, rate and REVPAR). The methodology of this database is attached as an
exhibit.
8
Now Hotel Brand Report.
12
MARKET REVPAR HISTORY: STATE OF TEXAS
1. Since 1980, the State of Texas has experienced generally strong growth, with occasional
periods of economic downturn, one of the worst being the recession that began in 2009. In 1982-
1983 the Texas market suffered through six consecutive quarters of major demand declines, with a
sharp plummet of 24% in the first quarter of 1983. Two years later, every quarter in 1986 posted
significant demand decreases of 19% or more.
Before the recession

starting in 2009, the most
recent period of decline
was in 2001, during which
the onset of a recession
was coupled, and
accelerated by, the terrorist
attacks of 9/11. Beginning
in the Third quarter of
2001, seven of the next
eight quarters showed
declining room demand,
and it was not until the
first quarter of 2004 that healthy levels of growth resumed.
We have considered these historical market patterns in formulating our projections for all
markets. Though there are differences in each economic downturn, and areas across the state are
impacted differently depending on factors driving demand – particularly Oil & Gas development and
production - there is much that can be discerned from historical positive and negative trending
performances.
Historical quarterly periods of economic decline and recession are highlighted in the
Texas market data that follows overleaf, while more recent history shows the positive results of an
improving economy in Texas and the impacts of shale oil extraction:
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Hotel Market: State of Texas 1990 - 1999

Total Room % Growth Vs. Prior Yr
# Htls & Room-Nights Revenues
Year & Qtr Mtls # Rooms Sold 000's (1) $ 000's % Occ. (2) $ Rate (3) $ RPAR (4) Supply Real ADR $ Rev.
901 2,128 214,051 11,805 $553,320 61.3 $46.87 $28.72 0 6.8 2.7 9.7
902 2,309 218,422 12,929 $621,759 65.0 $48.09 $31.28 1.1 5.6 4 9.8
903 2,486 222,992 12,865 $633,123 62.7 $49.21 $30.86 1.8 -2.3 7.4 4.9
904 2,194 215,429 10,640 $516,473 53.7 $48.54 $26.06 0.3 -2.9 6.1 3
911 2,284 216,154 11,566 $565,085 59.5 $48.86 $29.05 1.0 -2.0 4.2 2.1
912 2,448 219,862 12,773 $649,194 63.8 $50.82 $32.45 0.7 -1.2 5.7 4.4
913 2,488 220,995 13,246 $664,304 65.1 $50.15 $32.67 -0.9 3.0 1.9 4.9
914 2,286 217,641 11,080 $548,844 55.3 $49.53 $27.41 1.0 4.1 2.0 6.3
921 2,307 218,028 11,594 $590,250 59.1 $50.91 $30.08 0.9 0.2 4.2 4.5
922 2,484 221,953 12,745 $669,602 63.1 $52.54 $33.15 1.0 -0.2 3.4 3.1
923 2,544 223,066 13,701 $715,176 66.8 $52.20 $34.85 0.9 3.4 4.1 7.7
924 2,355 219,610 11,523 $591,250 57.0 $51.31 $29.26 0.9 4.0 3.6 7.7
931 2,358 219,849 11,895 $625,741 60.1 $52.60 $31.62 0.8 2.6 3.3 6.0
932 2,520 223,200 12,949 $706,243 63.8 $54.54 $34.77 0.6 1.6 3.8 5.5
933 2,582 225,251 14,012 $753,292 67.6 $53.76 $36.35 1.0 2.3 3.0 5.3
934 2,378 221,198 11,677 $616,985 57.4 $52.84 $30.32 0.7 1.3 3.0 4.4
941 2,410 222,093 12,409 $673,515 62.1 $54.27 $33.70 1.0 4.3 3.2 7.6
942 2,589 227,029 13,608 $767,336 65.9 $56.39 $37.14 1.7 5.1 3.4 8.7
943 2,660 229,750 13,943 $787,263 66.0 $56.46 $37.25 2.0 -0.5 5.0 4.5
944 2,470 225,865 12,265 $674,587 59.0 $55.00 $32.46 2.1 5.0 4.1 9.3
951 2,452 224,390 12,637 $740,927 62.6 $58.63 $36.69 1.0 1.8 8.0 10.0
952 2,599 228,476 13,653 $813,137 65.7 $59.56 $39.11 0.6 0.3 5.6 6.0
953 2,694 233,983 13,977 $828,759 64.9 $59.30 $38.50 1.8 0.2 5.0 5.3
954 2,597 231,786 12,357 $719,922 57.9 $58.26 $33.76 2.6 0.7 5.9 6.7
961 2,589 232,887 13,336 $827,453 63.6 $62.04 $39.48 3.8 5.5 5.8 11.7
962 2,730 238,395 14,015 $872,560 64.6 $62.26 $40.22 4.3 2.7 4.5 7.3
963 2,727 242,137 14,060 $874,796 63.1 $62.22 $39.27 3.5 0.6 4.9 5.6
964 2,660 241,218 12,583 $774,445 56.7 $61.55 $34.90 4.1 1.8 5.6 7.6
971 2,687 244,628 13,271 $854,727 60.3 $64.41 $38.82 5.0 -0.5 3.8 3.3
972 2,767 249,653 14,598 $956,235 64.3 $65.51 $42.09 4.7 4.2 5.2 9.6
973 2,831 253,789 14,778 $960,539 63.3 $65.00 $41.14 4.8 5.1 4.5 9.8
974 2,794 256,641 13,525 $874,113 57.3 $64.63 $37.02 6.4 7.5 5.0 12.9
981 2,839 257,550 14,425 $967,289 62.2 $67.06 $41.73 5.3 8.7 4.1 13.2
982 2,922 262,741 15,514 $1,059,745 64.9 $68.31 $44.32 5.2 6.3 4.3 10.8
983 3,011 270,046 16,048 $1,058,541 64.6 $65.96 $42.61 6.4 8.6 1.5 10.2
984 2,970 270,745 14,463 $944,329 58.1 $65.29 $37.91 5.5 6.9 1.0 8.0
991 3,037 276,858 15,264 $1,034,222 61.3 $67.76 $41.51 7.5 5.8 1.0 6.9
992 3,118 282,091 16,226 $1,134,795 63.2 $69.94 $44.21 7.4 4.6 2.4 7.1
993 3,209 289,244 16,682 $1,114,859 62.7 $66.83 $41.90 7.1 4.0 1.3 5.3
994 3,196 288,416 14,650 $974,591 55.2 $66.53 $36.73 6.5 1.3 1.9 3.2
CGR % Past 9 yrs 3.0% 3.0% 7.0% 0.0% 3.9% 3.9%
Past 4 yrs 5.5% 4.5% 8.2% -0.9% 3.6% 2.6%
Past 2 yrs 6.4% 5.8% 8.1% -0.6% 2.2% 1.6%
Past 1 yr 7.1% 3.9% 5.7% -3.0% 1.7% -1.3%
1. Room-nights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale.
3. Avg. price for room-nights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per day (room sales per day)
14

001 3,211 288,840 15,995 $1,121,091 61.5 $70.09 $43.13 4.3 4.8 3.4 8.4
002 3,337 294,411 17,078 $1,236,477 63.7 $72.40 $46.15 4.4 5.3 3.5 9
003 3,369 299,065 17,169 $1,217,493 62.4 $70.91 $44.25 3.4 2.9 6.1 9.2
004 3,342 297,980 15,285 $1,068,043 55.8 $69.87 $38.96 3.3 4.3 5 9.6
011 3,384 300,781 16,560 $1,190,233 61.2 $71.87 $43.97 4.1 3.5 2.5 6.2
012 3,507 304,382 17,296 $1,241,862 62.4 $71.80 $44.83 3.4 1.3 -0.8 0.4
013 3,559 309,066 16,812 $1,164,068 59.1 $69.24 $40.94 3.3 -2.1 -2.4 -4.4
014 3,502 306,150 14,493 $960,198 51.5 $66.25 $34.09 2.7 -5.2 -5.2 -10.1
021 3,544 307,947 15,879 $1,110,468 57.3 $69.94 $40.07 2.4 -4.1 -2.7 -6.7
022 3,652 312,349 17,053 $1,226,509 60.0 $71.92 $43.15 2.6 -1.4 0.2 -1.2
023 3,674 316,462 16,544 $1,158,085 56.8 $70.00 $39.78 2.4 -1.6 1.1 -0.5
024 3,609 312,346 14,679 $985,295 51.1 $67.13 $34.29 2.0 1.3 1.3 2.6
031 3,636 314,854 15,307 $1,055,883 54.0 $68.98 $37.26 2.2 -3.6 -1.4 -4.9
032 3,744 316,970 16,706 $1,169,279 57.9 $69.99 $40.54 1.5 -2.0 -2.7 -4.7
033 3,768 321,781 16,723 $1,160,730 56.5 $69.41 $39.21 1.7 1.1 -0.8 0.2
034 3,694 318,369 14,869 $986,916 50.8 $66.37 $33.69 1.9 1.3 -1.1 0.2
041 3,706 321,083 16,178 $1,145,227 56.0 $70.79 $39.63 2.0 5.7 2.6 8.5
042 3,837 325,898 17,461 $1,235,685 58.9 $70.77 $41.67 2.8 4.5 1.1 5.7
043 3,871 330,490 17,646 $1,263,169 58.0 $71.58 $41.54 2.7 5.5 3.1 8.8
044 3,783 327,182 15,881 $1,079,679 52.8 $67.98 $35.87 2.8 6.8 2.4 9.4
051 3,804 327,276 16,978 $1,213,285 57.6 $71.46 $41.19 1.9 4.9 0.9 5.9
052 3,934 330,064 18,582 $1,391,341 61.9 $74.87 $46.32 1.3 6.4 5.8 12.6
053 4,001 336,006 19,064 $1,444,489 61.7 $75.77 $46.73 1.7 8.0 5.9 14.4
054 3,914 332,055 18,523 $1,382,624 60.6 $74.64 $45.26 1.5 16.6 9.8 28.1
061 3,927 332,581 18,894 $1,479,407 63.1 $78.30 $49.43 1.6 11.3 9.6 21.9
062 4,070 335,437 19,319 $1,610,518 63.3 $83.36 $52.76 1.6 4.0 11.3 15.8
063 4,130 341,794 19,727 $1,606,990 62.7 $81.46 $51.10 1.7 3.5 7.5 11.2
064 4,036 339,252 18,000 $1,440,662 57.7 $80.04 $46.16 2.2 -2.8 7.2 4.2
071 4,047 340,683 19,329 $1,614,425 63.0 $83.52 $52.65 2.4 2.3 6.7 9.1
072 4,209 344,229 19,881 $1,756,158 63.5 $88.33 $56.06 2.6 2.9 6.0 9.0
073 4,257 350,625 20,256 $1,738,845 62.8 $85.84 $53.91 2.6 2.7 5.4 8.2
074 4,160 347,986 18,580 $1,565,299 58.0 $84.25 $48.89 2.6 3.2 5.3 8.7
081 4,176 350,247 19,600 $1,735,629 62.2 $88.55 $55.06 2.8 1.4 6.0 7.5
082 4,358 355,814 20,550 $1,915,910 63.5 $93.23 $59.17 3.4 3.4 5.5 9.1
083 4,416 362,801 21,116 $1,903,181 63.3 $90.13 $57.02 3.5 4.2 5.0 9.5
084 4,213 355,845 19,176 $1,691,786 58.6 $88.23 $51.68 2.3 3.2 4.7 8.1
091 4,187 359,311 18,555 $1,587,078 57.4 $85.54 $49.08 2.6 -5.3 -3.4 -8.6
092 4,396 366,615 18,490 $1,606,301 55.4 $86.87 $48.15 3.0 -10.0 -6.8 -16.2
093 4,465 376,420 18,951 $1,585,946 54.7 $83.69 $45.80 3.8 -10.2 -7.1 -16.7
094 4,315 374,410 17,116 $1,366,465 49.7 $79.83 $39.67 5.2 -10.7 -9.5 -19.2
CGR % Past 9 yrs 2.5% 1.2% 3.2% -1.3% 1.9% 0.6%
Past 4 yrs 2.7% 0.0% 3.1% -2.6% 3.1% 0.4%
Past 2 yrs 3.3% -3.2% -4.0% -6.3% -0.9% -7.1%
Past 1 yr 3.7% -9.1% -15.2% -12.3% -6.7% -18.0%
15

101 4,347 378,818 18,986 $1,541,596 55.7 $81.20 $45.22 5.4 2.3 -5.1 -2.9
102 4,588 386,695 20,125 $1,725,238 57.2 $85.72 $49.03 5.5 8.8 -1.3 7.4
103 4,614 392,397 20,768 $1,734,977 57.5 $83.54 $48.06 4.2 9.6 -0.2 9.4
104 4,386 386,086 18,586 $1,534,439 52.3 $82.56 $43.20 3.1 8.6 3.4 12.3
111 4,373 387,566 20,892 $1,775,855 59.9 $85.00 $50.91 2.3 10.0 4.7 15.2
112 4,625 393,399 21,864 $1,940,404 61.1 $88.75 $54.20 1.7 8.6 3.5 12.5
113 4,606 398,406 22,536 $1,941,707 61.5 $86.16 $52.97 1.5 8.5 3.1 11.9
114 4,383 389,041 19,957 $1,702,649 55.8 $85.32 $47.57 0.8 7.4 3.3 11.0
121 4,386 390,487 22,184 $1,930,172 63.1 $87.01 $54.92 0.8 6.2 2.4 8.7
122 4,628 397,172 23,482 $2,162,378 65.0 $92.09 $59.83 1.0 7.4 3.8 11.4
123 4,637 402,068 23,386 $2,109,568 63.2 $90.20 $57.03 0.9 3.8 4.7 8.6
124 4,424 392,827 21,256 $1,902,427 58.8 $89.50 $52.64 1.0 6.5 4.9 11.7
131 4,472 395,935 23,080 $2,121,117 64.8 $91.90 $59.52 1.4 4.0 5.6 9.9
132 4,681 401,983 24,182 $2,347,253 66.1 $97.07 $64.17 1.2 3.0 5.4 8.5
133 4,712 405,252 23,798 $2,251,680 63.8 $94.62 $60.39 0.8 1.8 4.9 6.7
134 4,474 397,610 22,160 $2,080,850 60.6 $93.90 $56.88 1.2 4.2 4.9 9.4
141 4,542 402,095 23,913 $2,298,836 66.1 $96.13 $63.52 1.6 3.6 4.6 8.4
142 4,720 407,370 25,221 $2,558,737 68.0 $101.45 $69.02 1.3 4.3 4.5 9.0
143 4,796 410,685 25,090 $2,494,612 66.4 $99.43 $66.02 1.3 5.4 5.1 10.8
144 4,563 404,076 23,464 $2,294,653 63.1 $97.79 $61.73 1.6 5.9 4.1 10.3
151 4,618 408,802 24,730 $2,485,815 67.2 $100.52 $67.56 1.7 3.4 4.6 8.1
152 4,827 415,494 25,071 $2,615,111 66.3 $104.31 $69.16 2.0 -0.6 2.8 2.2
153 4,848 418,358 25,085 $2,557,970 65.2 $101.97 $66.46 1.9 0.0 2.6 2.5
154 4,586 412,332 23,192 $2,290,046 61.1 $98.74 $60.37 2.0 -1.2 1.0 -0.2
161 4,645 417,760 24,607 $2,468,662 65.4 $100.33 $65.66 2.2 -0.5 -0.2 -0.7
162 4,858 425,002 25,653 $2,718,156 66.3 $105.96 $70.28 2.3 2.3 1.6 3.9
163 4,929 429,484 24,907 $2,528,728 63.0 $101.53 $64.00 2.7 -0.7 -0.4 -1.1
164 4,673 424,368 23,226 $2,288,843 59.5 $98.55 $58.63 2.9 0.1 -0.2 -0.1
171 4,798 432,000 25,149 $2,619,326 64.7 $104.15 $67.36 3.4 2.2 3.8 6.1
172 5,062 440,100 26,027 $2,741,001 65.0 $105.31 $68.44 3.6 1.5 -0.6 0.8
173 5,251 450,700 27,150 $2,793,238 65.5 $102.88 $67.37 4.9 9.0 1.3 10.5
174 5,017 445,100 26,118 $2,702,107 63.8 $103.46 $65.99 4.9 12.5 5.0 18.1
181 5,077 455,300 27,729 $2,948,031 67.7 $106.32 $71.94 5.4 10.3 2.1 12.5
182 5,398 465,400 28,425 $3,159,647 67.1 $111.16 $74.60 5.7 9.2 5.6 15.3
183 5,500 469,300 27,437 $2,924,125 63.5 $106.58 $67.72 4.1 1.1 3.6 4.7
184 5,186 465,300 26,694 $2,778,499 62.4 $104.09 $64.91 4.5 2.2 0.6 2.8
CGR % Past 9 yrs 2.6% 4.7% 7.5% 2.0% 2.7% 4.8%
Past 4 yrs 3.4% 3.1% 5.2% -0.3% 2.0% 1.8%
Past 2 yrs 4.6% 5.9% 8.7% 1.3% 2.6% 3.9%
Past 1 yr 4.9% 5.6% 8.8% 0.7% 3.0% 3.7%
16
The Texas lodging revenues increased 8.8% over the past year, while REVPAR rose 3.7% based on a
0.7% gain in occupancy and a 3% rate increase. Demand was up 5.6%, outpacing supply gains of
4.9%. From 1989 through “9/11,” revenue growth typically was above 8% annually.
PROJECTIONS & EXPECTATIONS
In making projections for the future, we

have considered the historical market
patterns for the state of Texas and for the
relevant sub-markets within Texas. We
have noted the recovery that started in
2010, but since has lost its strong growth
trends due to the decline in the price of
oil. With the recent rebound of oil prices,
the Oil & Gas areas demand increases
over the last three quarters has been the
strongest in a decade.
Ongoing projections reflect the

likelihood of revenue growth through
2019 maintaining reasonable and
normal revenue increases of at least
6% to 7% revenue growth year-over-
year. This assumes national GDP
growth of about 2.5% annually and
crude oil prices remain above $50
per barrel.
17
Market REVPAR History & Forecast:
2. Over the past nine years, the wider 12 county market had an average annual real demand
increase of 3.8% (room-nights sold), annual increase of 5.6% in total room revenues, and a
3.8% annual rise in REVPAR; note that the severe recession of 2009 and the subsequent
downturn in oil prices depressed performance numbers in many markets. Occupancy rose
2% per year over the nine years. Supply rose by 1.7% per year, with room rates rising 1.7%
annually.
Over the past four years, a gain of 3.2% per year in demand was coupled with a supply
increase of 3.3% annually. Revenues over this period rose an average of 2.9% per year,
while REVPAR fell 0.5% annually. Room rates were down 0.3% per year on average.
Occupancy decreased over the last four years, by 0.1% per year.
Over the last two years, demand rose 8.8% annually, tracked by a 3.5% annual increase in
supply. These results caused occupancy to increase by 5% annually, and REVPAR to rise
4.6% per year. Rates fell 0.4% per year, and yearly revenues gained 12.4%.
Most recent history, the 12 months ending December 31, 2018, shows strong results. Real
demand rose 15.1%, rates fell 2.5%, and revenues were up 12.4%; occupancy rose 8.6% as
supply grew by 6%. REVPAR gained 5.9% for the average hotel room.
18
Lodging Market History: Wider 12 County Market

Room-Nights Total Room % Growth Vs. Prior Yr
# Htls & Sold 000's Revenues
Year & Qtr Mtls # Rooms (1) $ 000's % Occ. (2) $ Rate (3) $ RPAR (4) Supply Real ADR $ Rev.
91 60 4,038 186 $12,011 51.1 $64.63 $33.05
92 63 4,073 187 $12,862 50.6 $68.64 $34.70
93 64 4,077 191 $12,460 50.9 $65.22 $33.22
94 60 4,026 156 $9,967 42.1 $63.85 $26.91
101 60 4,104 165 $10,165 44.7 $61.57 $27.52 1.6 -11.1 -4.7 -15.4
102 69 4,388 188 $12,536 47.1 $66.63 $31.40 7.7 0.4 -2.9 -2.5
103 71 4,540 205 $13,211 49.2 $64.34 $31.63 11.4 7.5 -1.3 6.0
104 65 4,408 181 $11,740 44.5 $65.02 $28.95 9.5 15.7 1.8 17.8
111 62 4,353 206 $13,265 52.6 $64.38 $33.86 6.1 24.8 4.6 30.5
112 68 4,459 242 $17,502 59.6 $72.35 $43.13 1.6 28.6 8.6 39.6
113 67 4,461 247 $17,494 60.2 $70.79 $42.62 -1.7 20.4 10.0 32.4
114 62 4,296 200 $14,050 50.7 $70.17 $35.55 -2.5 10.9 7.9 19.7
121 59 4,204 207 $14,320 54.7 $69.15 $37.85 -3.4 0.5 7.4 8.0
122 61 4,264 222 $15,959 57.3 $71.77 $41.13 -4.4 -8.1 -0.8 -8.8
123 61 4,191 208 $14,893 54.1 $71.45 $38.62 -6.1 -15.7 0.9 -14.9
124 60 4,216 197 $13,819 50.7 $70.33 $35.63 -1.9 -1.8 0.2 -1.6
131 59 4,130 209 $14,533 56.2 $69.54 $39.10 -1.8 0.9 0.6 1.5
132 61 4,139 223 $16,639 59.1 $74.71 $44.18 -2.9 0.1 4.1 4.3
133 60 4,120 206 $15,417 54.4 $74.82 $40.67 -1.7 -1.2 4.7 3.5
134 58 4,095 196 $13,872 52.0 $70.86 $36.82 -2.9 -0.4 0.8 0.4
141 59 4,117 214 $15,568 57.6 $72.93 $42.02 -0.3 2.2 4.9 7.1
142 61 4,161 226 $17,810 59.6 $78.88 $47.04 0.5 1.4 5.6 7.0
143 62 4,168 228 $18,777 59.6 $82.20 $48.97 1.2 10.9 9.9 21.8
144 59 4,092 218 $16,546 57.8 $76.03 $43.95 -0.1 11.1 7.3 19.3
151 57 4,026 224 $17,042 61.8 $76.06 $47.03 -2.2 5.0 4.3 9.5
152 60 4,154 225 $18,522 59.5 $82.30 $49.00 -0.2 -0.4 4.3 4.0
153 63 4,236 221 $18,692 56.7 $84.57 $47.96 1.6 -3.2 2.9 -0.5
154 61 4,327 212 $15,418 53.2 $72.81 $38.73 5.7 -2.7 -4.2 -6.8
161 61 4,361 207 $15,124 52.6 $73.23 $38.53 8.3 -7.9 -3.7 -11.3
162 62 4,404 228 $18,118 57.0 $79.34 $45.21 6.0 1.5 -3.6 -2.2
163 65 4,470 211 $17,526 51.3 $83.15 $42.62 5.5 -4.6 -1.7 -6.2
164 58 4,351 203 $14,716 50.7 $72.48 $36.76 0.6 -4.2 -0.5 -4.6
171 61 4,452 210 $15,710 52.4 $74.82 $39.21 2.1 1.7 2.2 3.9
172 62 4,445 232 $18,760 57.5 $80.73 $46.38 0.9 1.8 1.8 3.5
173 66 4,483 215 $18,139 52.2 $84.25 $43.98 0.3 2.1 1.3 3.5
174 62 4,415 215 $15,858 52.8 $73.91 $39.04 1.5 5.7 2.0 7.8
181 64 4,520 234 $16,765 57.5 $71.63 $41.21 1.5 11.5 -4.3 6.7
182 70 4,843 264 $21,244 60.0 $80.40 $48.20 9.0 13.7 -0.4 13.2
183 72 4,772 257 $20,626 58.5 $80.30 $46.98 6.4 19.3 -4.7 13.7
184 69 4,721 249 $18,295 57.3 $73.54 $42.12 6.9 15.9 -0.5 15.4
CGR % Past 9 yrs 1.7% 3.8% 5.6% 2.0% 1.7% 3.8%
Past 4 yrs 3.3% 3.2% 2.9% -0.1% -0.3% -0.5%
Past 2 yrs 3.5% 8.8% 8.4% 5.0% -0.4% 4.6%
Past 1 yr 6.0% 15.1% 12.4% 8.6% -2.5% 5.9%
1. Roomnights sold (derived from est. rate and actual revenues). 2. Occupancy nights sold divided by nights available for sale.
3. Avg. price for roomnights sold; Directories, Surveys, & experience. 4. $ Revenue per available room per day (room sales per day)
19
3. In the future, the surrounding 12 county market occupancy is projected to return to the estimated
long-term equilibrium occupancy level of 56% by 2022. For the next nine years, real demand (room
nights sold) is projected at an average 2.4% growth rate, trailing the projected net supply growth of
2.8%. With 2.8% average daily rate inflation, market gross revenues should gain 5.2%, and REVPAR
should increase 2.3% annually during the nine year forecast.
These assumptions relative to demand, supply, and occupancy reflect the fact that over the past 20
years overall occupancy in Texas has averaged about 60%, a level considered to be 'Equilibrium
Occupancy' state-wide. This fact considers that larger and more successful metro area markets
generate higher overall occupancy and REVPAR numbers than state averages, while rural areas lag
these averages (Source Strategies, Inc. database). 'Equilibrium Occupancy' is further explained by the
fact that new investment money will eventually be attracted to an under-supplied market until market
occupancy falls and lower returns on capital are the result. The equilibrium occupancy point is where
net, new supply is being added at about the same rate as growth in demand, and where return on
investment is in balance with the cost of capital.
Fueled by moderate, steady demand growth, the wider market has room for appropriately-positioned
new development, added at similar rates to demand. Higher quality new lodging products at or above
mid-priced levels are performing very well in the market despite overall performance numbers being
moderated by the large number of older, obsolete, budget and independent hotels. These older,
existing competitors are highly vulnerable to the superior attractiveness of newly-built lodging. This
pattern can be seen in the success of chain operations at or above the mid-priced levels.
Note that REVPAR growth for every individual hotel unit is well below the total revenue growth of
the market, with average REVPAR in our projection growing a low 1.8% per annum over the next
five years (compared to a 0.5% average REVPAR loss in each of the past four years). Revenues are
forecast to grow by 4.9% per year on the strength of 2.3% growth in real demand and 2.6% growth in
price (room-rates). Occupancy over the next five years is expected to fall by 0.8% per year, as supply
rises 3.1% per year.
20
Lodging Market Projection: Wider 12 County Market

Room- Total Room % Growth Vs. Prior Yr
Year & # Htls & Nights Sold Revenues % Occ.
Qtr Mtls # Rooms 000's (1) $ 000's (2) $ Rate (3) $ RPAR (4) Supply Real ADR $ Rev.
191 68 4,723 234 $16,769 55.1 $71.63 $39.45 4.5 0.0 0.0 0.0
192 71 4,843 264 $21,242 59.9 $80.40 $48.20 0.0 0.0 0.0 0.0
193 75 4,939 262 $21,454 57.6 $81.91 $47.22 3.5 2.0 2.0 4.0
194 72 4,886 254 $19,036 56.5 $75.01 $42.35 3.5 2.0 2.0 4.0
201 71 4,889 240 $17,703 54.5 $73.78 $40.24 3.5 2.5 3.0 5.6
202 74 5,013 271 $22,426 59.4 $82.81 $49.16 3.5 2.5 3.0 5.6
203 79 5,112 268 $22,650 57.1 $84.36 $48.16 3.5 2.5 3.0 5.6
204 75 5,057 260 $20,097 55.9 $77.26 $43.19 3.5 2.5 3.0 5.6
211 74 5,060 247 $18,782 54.3 $75.99 $41.24 3.5 3.0 3.0 6.1
212 77 5,188 279 $23,792 59.1 $85.30 $50.40 3.5 3.0 3.0 6.1
213 82 5,291 277 $24,030 56.8 $86.89 $49.37 3.5 3.0 3.0 6.1
214 79 5,234 267 $21,218 55.4 $79.58 $44.06 3.5 2.5 3.0 5.6
221 77 5,237 253 $19,829 53.7 $78.27 $42.07 3.5 2.5 3.0 5.6
222 80 5,344 286 $25,118 58.8 $87.86 $51.65 3.0 2.5 3.0 5.6
223 86 5,450 283 $25,369 56.5 $89.50 $50.60 3.0 2.5 3.0 5.6
224 82 5,391 273 $22,400 55.1 $81.97 $45.16 3.0 2.5 3.0 5.6
231 80 5,394 260 $20,934 53.5 $80.62 $43.12 3.0 2.5 3.0 5.6
232 83 5,477 293 $26,518 58.8 $90.49 $53.20 2.5 2.5 3.0 5.6
233 89 5,586 291 $26,784 56.5 $92.19 $52.12 2.5 2.5 3.0 5.6
234 85 5,526 280 $23,649 55.1 $84.43 $46.52 2.5 2.5 3.0 5.6
241 83 5,529 266 $22,101 53.5 $83.04 $44.42 2.5 2.5 3.0 5.6
242 86 5,614 300 $27,997 58.8 $93.21 $54.80 2.5 2.5 3.0 5.6
243 92 5,725 298 $28,277 56.5 $94.95 $53.68 2.5 2.5 3.0 5.6
244 88 5,664 287 $24,968 55.1 $86.96 $47.91 2.5 2.5 3.0 5.6
251 86 5,667 273 $23,333 53.5 $85.53 $45.75 2.5 2.5 3.0 5.6
252 89 5,754 308 $29,558 58.8 $96.00 $56.44 2.5 2.5 3.0 5.6
253 95 5,869 305 $29,853 56.5 $97.80 $55.29 2.5 2.5 3.0 5.6
254 91 5,806 294 $26,360 55.1 $89.57 $49.35 2.5 2.5 3.0 5.6
261 89 5,809 280 $24,634 53.5 $88.10 $47.12 2.5 2.5 3.0 5.6
262 92 5,898 316 $31,205 58.8 $98.88 $58.14 2.5 2.5 3.0 5.6
263 98 6,015 313 $31,518 56.5 $100.73 $56.95 2.5 2.5 3.0 5.6
264 94 5,951 302 $27,829 55.1 $92.25 $50.83 2.5 2.5 3.0 5.6
271 92 5,954 287 $26,007 53.5 $90.74 $48.53 2.5 2.5 3.0 5.6
272 96 6,046 323 $32,945 58.8 $101.85 $59.88 2.5 2.5 3.0 5.6
273 102 6,166 321 $33,275 56.5 $103.76 $58.66 2.5 2.5 3.0 5.6
274 98 6,100 309 $29,381 55.1 $95.02 $52.36 2.5 2.5 3.0 5.6
281 96 6,103 294 $27,457 53.5 $93.46 $49.99 2.5 2.5 3.0 5.6
282 99 6,197 332 $34,782 58.8 $104.90 $61.68 2.5 2.5 3.0 5.6
283 105 6,320 329 $35,130 56.5 $106.87 $60.42 2.5 2.5 3.0 5.6
284 101 6,252 317 $31,019 55.1 $97.87 $53.93 2.5 2.5 3.0 5.6
291 99 6,255 301 $28,988 53.5 $96.26 $51.49 2.5 2.5 3.0 5.6
292 103 6,352 340 $36,721 58.8 $108.05 $63.53 2.5 2.5 3.0 5.6
293 109 6,478 337 $37,088 56.5 $110.07 $62.23 2.5 2.5 3.0 5.6
294 105 6,409 325 $32,748 55.1 $100.81 $55.54 2.5 2.5 3.0 5.6
CGR % Next 9 yrs 2.8% 2.4% 5.2% -0.5% 2.8% 2.3%
Next 5 yrs 3.1% 2.3% 4.9% -0.8% 2.6% 1.8%
HISTORY
CGR % Past 9 yrs 1.7% 3.8% 5.6% 2.0% 1.7% 3.8%
Past 4 yrs 3.3% 3.2% 2.9% -0.1% -0.3% -0.5%
Past 2 yrs 3.5% 8.8% 8.4% 5.0% -0.4% 4.6%
1. Roomnights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale.
21
LOCAL MARKET PERFORMANCE
4. The subject hotel’s market currently generates a REVPAR of $49, below the Texas average
of $70. This performance considers that the market has no luxury, product, coupled with about
half of the city’s hotels being budget level product.
PERIOD: TWELVE MONTHS ENDING DECEMBER 31, 2018

LODGING MARKET: City of Townsville
# * EST. $ EST.
#* RMS % RNS % AMT. % EST. $ $
BRAND HTL 000S RMS 000S RNS 000S AMT %OCC RATE RPAR
CHAINS
RESIDENCE 1 .1 3.7 28 4.1 3,388 6.1 64.6 122.71 79.33
TOT SUITES 1 .1 3.7 28 4.1 3,388 6.1 64.6 122.71 79.33
COURTYARD 2 .2 5.6 42 6.2 4,761 8.5 66.1 112.72 74.53

HILT GARD 1 .1 3.9 30 4.4 4,194 7.5 66.5 140.57 93.42
HOLID INN 1 .1 3.6 28 4.2 3,051 5.5 68.9 108.32 74.63
TOT MID/UPS 4 .4 13.1 100 14.8 12,005 21.6 67.0 119.78 80.22
CANDLWOOD 1 .1 2.3 18 2.6 1,453 2.6 67.4 82.09 55.29

COMFO STE 2 .1 4.5 33 4.9 2,813 5.1 64.1 84.62 54.27
TOWNPLACE 1 .1 2.4 19 2.9 2,279 4.1 69.9 117.57 82.14
TOT MIN STE 4 .3 9.3 70 10.4 6,545 11.8 66.4 93.07 61.83
BEST WEST 1 .1 1.9 14 2.0 1,328 2.4 62.3 97.35 60.65

COMFO INN 1 .1 2.3 16 2.3 1,054 1.9 59.6 66.39 39.54
FAIRFIELD 1 .1 2.3 16 2.4 1,638 2.9 62.2 101.56 63.19
HAMPTON 2 .1 4.3 33 4.8 4,213 7.6 66.2 129.20 85.50
HOLID EXP 2 .1 4.2 32 4.7 3,493 6.3 65.5 110.60 72.49
LA QUINTA 2 .2 5.7 41 6.1 3,504 6.3 63.6 84.86 53.94
SLEEP INN 1 .1 1.8 12 1.7 962 1.7 58.7 81.64 47.92
WINGATE 1 .1 2.1 12 1.7 751 1.3 48.9 63.69 31.17
TOT LTD SVE 11 .8 24.6 175 25.8 16,942 30.4 62.2 96.98 60.28
WOODSPRNG 1 .1 3.7 25 3.7 1,360 2.4 59.6 53.88 32.12

TOT EXT STA 1 .1 3.7 25 3.7 1,360 2.4 59.6 53.88 32.12
DAYS INN 1 .1 2.0 14 2.1 990 1.8 63.5 70.08 44.48

MOTEL 6 2 .2 6.1 39 5.8 1,720 3.1 56.9 43.60 24.80
QUALITY 1 .0 1.6 11 1.6 936 1.7 62.2 84.16 52.35
SUPER 8 2 .1 4.7 23 3.3 1,031 1.9 41.7 45.73 19.09
OTHER BUD 1 .1 4.5 32 4.7 1,391 2.5 62.2 43.74 27.21
TOT BUDGET 7 .6 18.8 119 17.6 6,068 10.9 55.5 50.98 28.27
TOT CHAINS 28 2.3 73.3 517 76.3 46,308 83.2 61.8 89.55 55.38
INDEPENDENTS
$60-99ADR 1 .2 5.6 40 5.9 4,255 7.6 63.1 105.66 66.62
LT $60ADR 8 .7 21.1 120 17.8 5,126 9.2 50.0 42.56 21.28
TOT IND HTL 9 .8 26.7 161 23.7 9,382 16.8 52.7 58.37 30.78
TOT MARKET 37 3.1 100.0 678 100.0 55,689 100 59.4 82.16 48.81
* All figures annualized. Includes taxed and est non-tax room revenues.
Independents are categorized by price: $100+, $60-99.99, and under $60)
22
Local Market REVPAR History & Forecast:
5. Over the past nine years, the City of Townsville Market has shown annual real demand
growth (room-nights sold) of 4.8%, annual growth of 5.6% in total room revenues, and a
2.9% annual increase in REVPAR. Occupancy rose 2.2% over each of the nine years. Supply
increased 2.6% per year, with room rates rising 0.7% annually.
Over the past four years, demand rose 3.2% annually as supply increased 2.6% per year.
Revenues over this period fell 3.2% per year, while REVPAR decreased 0.6%, occupancy
rose 0.6% annually, and room rates were unchanged.
Over the last two years, real demand rose 6.8% annually, compared to a net annual increase in
supply of 2.1%. Rates decreased 0.5%, and yearly revenues rose by 7.4% per year. These
results caused occupancy to rise 4.6% annually, and REVPAR to gain 5.2% per year.
In the latest year, demand growth was strong while supply growth was stagnant. Real demand
increased 9% as supply was unchanged. Rates fell 1.1% and revenues were up 7.9%.
Occupancy increased 9% for the year and REVPAR gained a substantial 7.9%. Market
occupancy averaged 59.4%, below the average for the overall state of Texas, but exceeding
the long term average for this area. Over time, we project the market will normalize, bringing
the current occupancy down slightly to 58% as the market comes back to equilibrium, which
would be a healthy level for a market such as this one.
23
Lodging Market History: City of Townsville

Year & # Htls & Nights Sold Revenues
Qtr Mtls # Rooms 000's (1) $ 000's % Occ. (2) $ Rate (3) $ RPAR (4) Supply Real ADR $ Rev.
91 28 2,426 114 8,646 52.3 75.70 39.60
92 29 2,499 115 9,350 50.7 81.02 41.11
93 29 2,499 117 8,861 50.9 75.67 38.54
94 29 2,499 97 7,222 42.1 74.69 31.41
101 30 2,554 107 7,559 46.5 70.69 32.89 5.3 -6.4 -6.6 -12.6
102 32 2,696 117 9,133 47.8 77.95 37.23 7.9 1.6 -3.8 -2.3
103 33 2,806 126 9,387 48.8 74.57 36.36 12.3 7.5 -1.5 5.9
104 33 2,812 110 8,233 42.6 74.78 31.83 12.5 13.9 0.1 14.0
111 33 2,814 127 9,224 50.1 72.69 36.42 10.2 18.7 2.8 22.0
112 33 2,814 156 12,798 60.9 82.05 49.98 4.4 33.1 5.3 40.1
113 33 2,817 155 12,477 59.8 80.53 48.14 0.4 23.0 8.0 32.9
114 32 2,737 122 9,769 48.5 80.01 38.79 -2.7 10.9 7.0 18.7
121 32 2,747 129 9,999 52.2 77.46 40.44 -2.4 1.7 6.6 8.4
122 32 2,776 143 11,347 56.7 79.24 44.92 -1.4 -8.2 -3.4 -11.3
123 33 2,846 141 10,617 53.7 75.45 40.55 1.0 -9.2 -6.3 -14.9
124 33 2,856 126 9,702 48.0 76.99 36.93 4.3 3.2 -3.8 -0.7
131 33 2,856 140 10,410 54.3 74.55 40.50 4.0 8.1 -3.8 4.1
132 33 2,856 151 12,219 58.2 80.82 47.02 2.9 5.6 2.0 7.7
133 33 2,856 143 11,402 54.6 79.49 43.39 0.4 1.9 5.4 7.4
134 33 2,836 131 9,975 50.0 76.41 38.23 -0.7 3.6 -0.8 2.8
141 33 2,836 143 10,991 56.1 76.70 43.06 -0.7 2.7 2.9 5.6
142 33 2,836 155 13,034 59.9 84.29 50.51 -0.7 2.2 4.3 6.7
143 33 2,836 154 13,395 58.8 87.27 51.34 -0.7 7.0 9.8 17.5
144 32 2,781 147 11,759 57.5 79.90 45.96 -1.9 12.8 4.6 17.9
151 32 2,771 153 12,232 61.4 79.83 49.05 -2.3 6.9 4.1 11.3
152 33 2,819 154 13,303 60.0 86.47 51.86 -0.6 -0.5 2.6 2.1
153 33 2,819 147 13,136 56.5 89.60 50.65 -0.6 -4.5 2.7 -1.9
154 35 2,971 146 10,788 53.2 74.12 39.47 6.8 -1.2 -7.2 -8.3
161 35 2,971 141 10,749 52.6 76.42 40.20 7.2 -8.2 -4.3 -12.1
162 35 2,971 160 13,335 59.1 83.45 49.32 5.4 3.9 -3.5 0.2
163 35 2,971 145 12,957 53.1 89.31 47.40 5.4 -1.0 -0.3 -1.4
164 36 3,084 149 11,236 52.5 75.40 39.60 3.8 2.4 1.7 4.2
171 37 3,126 152 12,052 53.8 79.56 42.84 5.2 7.7 4.1 12.1
172 37 3,126 168 14,423 59.0 85.95 50.70 5.2 5.0 3.0 8.2
173 37 3,126 151 13,346 52.6 88.30 46.41 5.2 4.2 -1.1 3.0
174 37 3,126 151 11,787 52.6 77.94 40.98 1.4 1.5 3.4 4.9
181 37 3,126 163 12,270 58.1 75.09 43.61 0.0 7.9 -5.6 1.8
182 37 3,126 176 15,583 61.9 88.53 54.78 0.0 4.9 3.0 8.0
183 37 3,126 171 14,716 59.3 86.30 51.17 0.0 12.8 -2.3 10.3
184 37 3,126 168 13,121 58.4 78.12 45.62 0.0 11.1 0.2 11.3
CGR % Past 9 yrs 2.6% 4.8% 5.6% 2.2% 0.7% 2.9%
Past 4 yrs 2.6% 3.2% 3.2% 0.6% 0.0% 0.6%
Past 2 yrs 2.1% 6.8% 7.4% 4.6% 0.5% 5.2%
Past 1 yr 0.0% 9.0% 7.9% 9.0% -1.1% 7.9%
Wider Market History
CGR % Past 9 yrs 1.7% 3.8% 5.6% 2.0% 1.7% 3.8%
Past 4 yrs 3.3% 3.2% 2.9% -0.1% -0.3% -0.5%
1.Roomnights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale.
24
6. Overall market occupancy is projected to rise moderately, with 2.2% demand gains and net supply
rising at a faster 2.5% annually for the next nine years. This translates to occupancy losing 0.3%
annually to a 58% long-term equilibrium level. REVPAR should rise 2.6% annually in the period,
based on rates rising 2.9% per year. This compares to an average level of REVPAR growth of 2.9%
for the past nine years.
These assumptions relative to demand, supply, and occupancy reflect the fact that over the past 20
years overall occupancy in Texas has averaged about 60%, a level considered to be 'Equilibrium
Occupancy' state-wide. This fact considers that larger and more successful metro area markets
generate higher overall occupancy and REVPAR numbers than state averages, while rural and
Interstate highways areas lag these averages (per the Source Strategies, Inc. database). 'Equilibrium
Occupancy' is further explained by the fact that new investment money will eventually be attracted to
an under-supplied market until market occupancy falls and lower returns on capital are the result.
The equilibrium occupancy point is where net, new supply is being added at about the same rate as
growth in demand, and where return on investment is in balance with the cost of capital. The local
area market is currently operating at a healthy level and has room for new development. Higher
quality new lodging products at or above mid-priced levels are performing reasonably well,
considering market conditions. Any older, existing competitors are vulnerable to the superior
attractiveness of newly-built, major-branded lodging. This pattern can be seen in the success of chain
operations at or above the mid-priced levels. Given our growth assumptions, room supply
consequently grows from 3,126 rooms currently to 3,922 in 2027, 25% higher and representing 796
net new rooms (gross new openings, less anticipated closings).
REVPAR growth for every individual hotel unit is below the total revenue growth of the
market, with average REVPAR in our projection rising 2.3% per annum over the next five
years. Revenues during this upcoming period are forecast to rise by 4.9% per year on demand gains
of 2% per year and a 2.7% annual increase in prices (room-rates). Occupancy over the next five years
is expected to fall 0.4% per year as supply rises by an expected 2.5% per year. If supply should grow
390 rooms over forecast (+10%), without demand also growing faster than forecast, average
individual hotel REVPAR would decline by 9% versus the projection, dropping from the estimated
REVPAR of $61 to $56 by the end of 2027.
25
Lodging Market Projection: City of Townsville

Year & # Htls & Nights Sold Revenues
Qtr Mtls # Rooms 000's (1) $ 000's % Occ. (2) $ Rate (3) $ RPAR (4) Supply Real ADR $ Rev.
191 38 3,157 163 12,392 57.5 75.84 43.61 1.0 0.0 1.0 1.0
192 38 3,157 176 15,737 61.3 89.42 54.77 1.0 0.0 1.0 1.0
193 38 3,157 172 15,159 59.3 88.03 52.19 1.0 1.0 2.0 3.0
194 38 3,157 170 13,521 58.4 79.68 46.55 1.0 1.0 2.0 3.0
201 39 3,189 167 12,956 58.1 77.74 45.14 1.0 2.0 2.5 4.5
202 39 3,252 180 16,453 60.7 91.65 55.60 3.0 2.0 2.5 4.5
203 39 3,252 177 16,081 59.0 91.11 53.75 3.0 2.5 3.5 6.1
204 39 3,252 174 14,344 58.1 82.47 47.94 3.0 2.5 3.5 6.1
211 40 3,284 171 13,745 57.8 80.46 46.50 3.0 2.5 3.5 6.1
212 41 3,350 184 17,455 60.4 94.86 57.26 3.0 2.5 3.5 6.1
213 41 3,350 181 16,978 58.7 93.84 55.09 3.0 2.5 3.0 5.6
214 41 3,350 178 15,143 57.9 84.95 49.14 3.0 2.5 3.0 5.6
221 42 3,383 175 14,511 57.5 82.87 47.66 3.0 2.5 3.0 5.6
222 43 3,450 189 18,428 60.1 97.70 58.70 3.0 2.5 3.0 5.6
223 43 3,450 185 17,924 58.4 96.66 56.47 3.0 2.5 3.0 5.6
224 43 3,450 183 15,987 57.6 87.49 50.37 3.0 2.5 3.0 5.6
231 43 3,485 179 15,320 57.2 85.36 48.85 3.0 2.5 3.0 5.6
232 44 3,554 193 19,455 59.8 100.64 60.16 3.0 2.5 3.0 5.6
233 44 3,554 190 18,924 58.1 99.55 57.88 3.0 2.5 3.0 5.6
234 44 3,554 187 16,879 57.3 90.12 51.63 3.0 2.5 3.0 5.6
241 45 3,589 184 16,174 57.0 87.92 50.07 3.0 2.5 3.0 5.6
242 46 3,660 198 20,540 59.5 103.65 61.67 3.0 2.5 3.0 5.6
243 46 3,642 195 19,979 58.1 102.54 59.62 2.5 2.5 3.0 5.6
244 46 3,642 192 17,820 57.3 92.82 53.18 2.5 2.5 3.0 5.6
251 47 3,679 189 17,076 57.0 90.56 51.58 2.5 2.5 3.0 5.6
252 48 3,752 203 21,685 59.5 106.76 63.52 2.5 2.5 3.0 5.6
253 47 3,733 200 21,092 58.1 105.62 61.41 2.5 2.5 3.0 5.6
254 47 3,733 197 18,813 57.3 95.61 54.77 2.5 2.5 3.0 5.6
261 48 3,771 193 18,028 57.0 93.27 53.12 2.5 2.5 3.0 5.6
262 49 3,845 208 22,894 59.5 109.97 65.42 2.5 2.5 3.0 5.6
263 49 3,827 205 22,268 58.1 108.79 63.25 2.5 2.5 3.0 5.6
264 49 3,827 202 19,862 57.3 98.48 56.42 2.5 2.5 3.0 5.6
271 50 3,865 198 19,033 57.0 96.07 54.72 2.5 2.5 3.0 5.6
272 51 3,942 213 24,170 59.5 113.27 67.39 2.5 2.5 3.0 5.6
273 51 3,922 210 23,510 58.1 112.05 65.15 2.5 2.5 3.0 5.6
274 51 3,922 207 20,969 57.3 101.43 58.11 2.5 2.5 3.0 5.6
281 52 3,962 203 20,094 57.0 98.95 56.36 2.5 2.5 3.0 5.6
282 53 4,040 219 25,518 59.5 116.66 69.41 2.5 2.5 3.0 5.6
283 53 4,020 215 24,820 58.1 115.41 67.10 2.5 2.5 3.0 5.6
284 53 4,020 212 22,138 57.3 104.47 59.85 2.5 2.5 3.0 5.6
291 54 4,061 208 21,214 57.0 101.92 58.05 2.5 2.5 3.0 5.6
292 55 4,141 224 26,940 59.5 120.16 71.49 2.5 2.5 3.0 5.6
293 54 4,121 220 26,204 58.1 118.87 69.12 2.5 2.5 3.0 5.6
294 54 4,121 217 23,373 57.3 107.61 61.65 2.5 2.5 3.0 5.6
CGR % Next 9 yrs 2.5% 2.2% 5.2% -0.3% 2.9% 2.6%
Next 5 yrs 2.5% 2.0% 4.9% -0.4% 2.7% 2.3%
HISTORY
CGR % Past 9 yrs 2.6% 4.8% 5.6% 2.2% 0.7% 2.9%
Past 4 yrs 2.6% 3.2% 3.2% 0.6% 0.0% 0.6%
Past 2 yrs 2.1% 6.8% 7.4% 4.6% 0.5% 5.2%
1.Roomnights sold (derived from est. rate and actual revenues) 2. Occupancy nights sold divided by nights available for sale.
26
7. A graph of the REVPAR history and projection for both the local and surrounding markets
shows fluctuating historical performance, which we forecast to stabilize at a reasonable level of
growth over the course of our projection:
27
8. The occupancy projection for the local market is for a return to normal levels after the
volatility of recent years. We expect local occupancy to decrease slightly to the 58% average
range in the later years of our forecast:
28
9. The Room Nights Sold history and projection graph shows the reasonable nature of the ‘trend’
expectations for the local market. With recent healthy growth, assuming typical population,
economic, and infrastructure growth, we expect normal demand growth to continue its recent level of
expansion into the future:
29
10. Overall, the local market REVPAR index has fluctuated, ranging from its 2009 high of 118% to
its 2015 low point of 104% of the wider market. It has recently rebounded to the current 109%.
Market Revenue Per Available (RevPAR) Room History

Wider
Market Local Wider/
Yr & Qtr Area Area Local Index Year
91 $33.05 $39.60 120
92 $34.70 $41.11 118
93 $33.22 $38.54 116
94 $26.91 $31.41 117 118
101 $27.52 $32.89 120
102 $31.40 $37.23 119
103 $31.63 $36.36 115
104 $28.95 $31.83 110 116
111 $33.86 $36.42 108
112 $43.13 $49.98 116
113 $42.62 $48.14 113
114 $35.55 $38.79 109 111
121 $37.85 $40.44 107
122 $41.13 $44.92 109
123 $38.62 $40.55 105
124 $35.63 $36.93 104 106
131 $39.10 $40.50 104
132 $44.18 $47.02 106
133 $40.67 $43.39 107
134 $36.82 $38.23 104 105
141 $42.02 $43.06 102
142 $47.04 $50.51 107
143 $48.97 $51.34 105
144 $43.95 $45.96 105 105
151 $47.03 $49.05 104
152 $49.00 $51.86 106
153 $47.96 $50.65 106
154 $38.73 $39.47 102 104
161 $38.53 $40.20 104
162 $45.21 $49.32 109
163 $42.62 $47.40 111
164 $36.76 $39.60 108 108
171 $39.21 $42.84 109
172 $46.38 $50.70 109
173 $43.98 $46.41 106
174 $39.04 $40.98 105 107
181 $41.21 $43.61 106
182 $48.20 $54.78 114
183 $46.98 $51.17 109
184 $42.12 $45.62 108 109
CGR %
Past 9 yrs 3.8% 2.9%
Past 4 yrs -0.5% 0.6%
Past 2 yrs 4.6% 5.2%
Past 1 yr 5.9% 7.9%
30
11. The REVPAR forecast calls for the local market REVPAR index to edge up a few points to a
112% index in the later years of our projection:
Market Revenue Per Available Room (RevPAR) Projection
Wider Market Wider/ Local

Yr & Qtr Area Local Area Index Year
191 $39.45 $43.61 111
192 $48.20 $54.77 114
193 $47.22 $52.19 111
194 $42.35 $46.55 110 111
201 $40.24 $45.14 112
202 $49.16 $55.60 113
203 $48.16 $53.75 112
204 $43.19 $47.94 111 112
211 $41.24 $46.50 113
212 $50.40 $57.26 114
213 $49.37 $55.09 112
214 $44.06 $49.14 112 112
221 $42.07 $47.66 113
222 $51.65 $58.70 114
223 $50.60 $56.47 112
224 $45.16 $50.37 112 113
231 $43.12 $48.85 113
232 $53.20 $60.16 113
233 $52.12 $57.88 111
234 $46.52 $51.63 111 112
241 $44.42 $50.07 113
242 $54.80 $61.67 113
243 $53.68 $59.62 111
244 $47.91 $53.18 111 112
251 $45.75 $51.58 113
252 $56.44 $63.52 113
253 $55.29 $61.41 111
254 $49.35 $54.77 111 112
261 $47.12 $53.12 113
262 $58.14 $65.42 113
263 $56.95 $63.25 111
264 $50.83 $56.42 111 112
271 $48.53 $54.72 113
272 $59.88 $67.39 113
273 $58.66 $65.15 111
274 $52.36 $58.11 111 112
281 $49.99 $56.36 113
282 $61.68 $69.41 113
CGR %
Next 9 yrs 2.3% 2.6%
Next 5 yrs 1.8% 2.3%
31
PROJECT REVPAR - DEVELOPMENT OF INDICES
Within the above market REVPAR forecast, the expected performance of the proposed hotel is based
on six factors. All six factors are independent and modify the market's projected REVPAR average to
reflect the subject property's particular characteristics. First, what is the Base Value? It is the effect
of the Brand, including specified product quality levels. Second, what is the effect of the brand's
overall Age on its average performance? Third, what is the effect of the project's Size, or room-
count, on results? Fourth, are there any ‘Other’ adjustments needed to account for various factors,
including under- or over-supply in the product's Segment in which the project will compete? Fifth,
what is the effect of the normal Life Cycle patterns on the project (e.g. the effect of the project's
Newness compared to older competition on its unstoppable way to obsolescence)? And sixth, what is
the likely influence of the selected Site on results?
1. The Base Value factor sets property type/brand/product quality for a La Quinta Inn Hotel
in this type of market at 1.09 (or 109%) of the market average REVPAR. This valuation is
based on the actual REVPAR performance of the 104 La Quinta Inn hotels currently operating in
Texas markets (Exhibit IV). 9 These hotels produced an average REVPAR of $55.03 in the latest
year, compared to the Exhibit IV market average REVPAR of $50.47, as follows:
La Quinta REVPAR Average $55.03 / Exhibit IV REVPAR Average $50.47 = 1.09 or 109%
This large sample of La Quinta Inn properties in similar Texas markets provides a solid and realistic
basis for assigning the basic REVPAR performance that can be expected when operating such a hotel
in the local market.
2. The second adjustment factor, Brand Aging, is set at 1.17 (117%), a positive valuation
reflecting the fact that the sample of Exhibit IV La Quinta hotels averaged 20 years old. Of
note, Texas La Quinta hotels that were opened in 2010 or later generated a much higher $68.94.
clearly supporting this adjustment. This factor adjusts for the effect of the average age of the
existing hotels on the brand's current performance. Please see Exhibit VI: Start-Up Performance of
New Hotels and Motels for a full description of our study of the impact of the overall newness or age
of a group of same branded hotels on REVPAR performance. The brand age adjustment, or life-cycle
adjustment, for other brands includes:
9
. Includes Texas excluding 5 major metros and Midland/Odessa. Also excludes higher priced segments (which are not represented in the local market).
32
BRAND AGING: TEXAS MARKETS
Brand Average Opening Brand Aging Adjustment
Towneplace Suites 2012 0.92
Holiday Express 2008 0.99
Residence Inn 2007 1.00
Hampton Inn 2007 1.00
Comfort Suites 2007 1.00
Courtyard 2006 1.02
Best Western 2000 1.13
3. The property Size factor - reflecting room count - is set at 1.00 (1.00%). At 85 units this
property will virtually match the Exhibit IV brand average of 86 rooms warranting no premium or
penalty for size. The size factor assigns a premium if the property is smaller than average and a
penalty to the property if it is larger than average. The size adjustment is necessary because demand
is not affected by the number of rental rooms offered, as the individual consumer only needs one
room: customers do not care whether a hotel offers 100, 125 or 150 rooms and their purchasing
behavior will be the same regardless of how many rooms the property offers. Keeping a project
conservatively sized assures a higher per-unit revenue yield, particularly in very competitive markets
like the local area. The highly-positive effect on revenues and return on capital due to building small,
and not 'over-sizing' projects is best explained in Exhibit V: A Study of the Effect of Hotel Size on
Performance in the Texas Hotel Industry - The Case for Downsizing New Hotels. This study that
can be replicated with any brand, in almost any situation. The net effect of building small is to run
higher occupancy and rate, thereby increasing brand REVPAR by building a below-average number
of rental units.
4. Fourth, the Segment or Other adjustment factor is set at 110% (1.10), with a premium warranted
for being a new ‘Del Sol’ prototype, and for offering a substantial number of partitioned suites in this
project.
5. Fifth, the Aging Adjustment factor reflects the standard hotel life cycle: 92% (-8%) in Year I;
107% for Year II; 112% for Years III through V; followed by a 1.67% annual decline in the
REVPAR index starting in Year VI. The aging factor also mirrors extensive studies of hotel life-
cycles conducted by Source Strategies, Inc.'s chairman, Bruce Walker, when heading the Holiday
Corporation's strategic planning department (1979-83). It also reflects recent research on the life
cycles of 25,000 Texas hotel rooms, developed from 1980 through 1982, and then again in 1990
33
through 1992, with each group's performance versus the market tracked to the present (MarketShare
newsletter, "The Hotel Life Cycle - It's Very Real" published September 1994).
6. The last factor, Site, is set at 0.95 (95%), or just below average for the local market, and very
reasonable when the sites of currently operating nearby competition are measured. The site is at
a major highway intersection. It is close to area retail, restaurants and business interests, with quick
access to points in all directions. As we have selected a broad area market around the property for our
analysis, it is our determination that the value of the subject’s location is in line with many other
existing hotel sites in the area, though it is likely that area site values could moderate slightly as new
supply enters the market.
With the evaluation of the current sites around this location, we have an easy analysis of the site
potential. The site values for this property, as well as for nearby existing competitors have been
developed by quantifying the influence site has had on their performance. Applying known
adjustment factors to existing properties, except for a site factor, lets us solve for the site value itself.
Source Strategies' site methodology 'backs into' the value of the site by matching actual performance
against known factors, using the site factor as the 'plugged number.' The differences between the
closest key competitors appear to be both explainable and reasonable. The site value is 'plugged' so
that projected REVPAR versus market approaches the actual REVPAR over the past 12 months.
Overall, current performance of nearby existing competition would indicate that a 95% site
value for the subject hotel would be a reasonable estimate of the site:
34
DERIVATION OF LOCAL COMPETITION
Residence Comfort Best Holiday Hampton

Courtyard Towneplace Inn Suites Western Express Inn
Data in 2018 $'s 77449 77449 77449 77449 77084 77084 77084
Base: Name & Quality 1.50 1.58 1.65 1.15 1.21 1.41 1.50
x Brand Age Adjustment 1.02 0.92 1.00 1.00 1.13 0.99 1.00
x Site Value Adjustment 0.96 0.96 1.00 0.97 1.02 1.08 1.04
x Size Adjustment 1.12 1.07 0.95 1.00 0.99 1.06 1.03
x Other Adjustments 0.90 1.00 1.00 1.00 1.00 1.10 1.20
x Newness Adjustment 1.12 1.12 1.03 1.01 0.90 0.90 1.00
= Performance Factor 166% 168% 162% 114% 124% 157% 192%
x Market REVPAR $48.81 $48.81 $48.81 $48.81 $48.81 $48.81 $48.81

= Projected Performance $80.95 $81.76 $79.16 $55.58 $60.66 $76.83 $93.64
REVPAR latest 12 months $80.83 $82.15 $79.21 $55.34 $60.65 $77.18 $93.27
Index (Proj. Vs Actual) 100 100 100 100 100 100 100
Units in Above Subject 76 76 117 68 60 66 72

Average Units 104 91 100 69 59 77 78
Size Adjustment (33%) 12 7 -5 0 -1 6 3
Year Built 2015 2015 2009 2008 2001 2001 2007
Combining all six factors affecting a hotel's REVPAR performance, we calculate that the proposed
hotel's REVPAR will achieve 149% of the market average REVPAR in Years III-V, declining slowly
thereafter:
La Quinta Inn & Suites Derivation

Data in 2018 $'s Year I Year II Year III
Base: Name & Quality 1.09 1.09 1.09
x Brand Age Adjustment 1.17 1.17 1.17
x Site Value Adjustment 0.95 0.95 0.95
x Size Adjustment 1.00 1.00 1.00
x Other Adjustments 1.10 1.10 1.10
x Newness Adjustment 0.92 1.07 1.12
= Performance Factor 123% 143% 149%
x Market REVPAR $48.81 $48.81 $48.81

= Projected Performance $59.94 $69.71 $72.97
35
COMBINING THE ABOVE MARKET REVPAR PROJECTION AND THE HOTEL'S
REVPAR INDEX TO DEVELOP REVENUES, OCCUPANCY, AND RATE
Using the projected Year III REVPAR index of 149%, the above process generates a theoretical
REVPAR of $72.97 in 2018 market dollars. This is the result of the Year III performance index of
149% (1.49) multiplied by the current market average REVPAR of $48.81.
Therefore, if the property were open today and were in its third year of operation, it should
theoretically be operating at the following level against 2018 market results: a $72.97 REVPAR
computes to gross room revenues of approximately $2,263,909 ($72.97.times 85 units times 365
days). Please note that the actual effect on the market due to the introduction of this project and other
new hotels is fully reflected in subsequent pro forma market projections and financials.
In latest year's dollars (2018), this projection for the project's theoretical Year III revenue breaks
down seasonally as follows:
Quarter Second Third Fourth First Year III

Room Revenues $617,983 $601,098 $536,145 $508,683 $2,263,909
% of Year 27.3% 26.6% 23.7% 22.5% 100
Seasonal Index 109 105 94 91 100
REVPAR$ $79.89 $76.87 $68.56 $66.49 $72.97
Source Strategies, Inc.'s projections of a reasonable rate and occupancy mix, a split of the subject
hotel's REVPAR for occupancy and rate, in latest year dollars, would be as follows:
Quarter Second Third Fourth First Year III

ADR - $ $100.38 $100.38 $95.36 $95.36 $98.00
Occupancy % 79.6% 76.6% 71.9% 69.7% 74.5%
REVPAR$ $79.89 $76.87 $68.56 $66.49 $72.97
36
TESTS FOR REASONABILITY
Comparisons made here support the reasonable nature of market and subject projections:
1. Individual property projections depend importantly on the projection of local market REVPAR -
forecast to rise at a healthy rate through 2027, starting at the current level. Over the next nine years
market REVPAR is projected to rise 2.6% per year, compared to a 2.9% increase on average over the
past nine years. REVPAR encompasses the net effects of room supply, room-night demand and
prices.
Over the next nine years, we are comfortable with the 2.2% real compound demand gain projected
for the market, the projected higher net supply growth of 2.5% annually, and prices going up 2.9%.
The resulting level of overall occupancy is 58% (equilibrium).
2. The derived Base Value of 1.09 (109%) for a basic La Quinta Inn is reasonable when compared to
the Base Values of other hotels in these same markets. 10 The hierarchy of REVPAR indices for
various brands is shown below:
REVPAR INDEX COMPARISON 11
Brand REVPAR Index
Residence Inn 165
Courtyard 150
Hampton Inn 150
Holiday Express 141
Best Western 121
Comfort Suites 115
Comfort Inn 111
La Quinta 109
Wingate Inn 92
Super 8 64
Motel 6 59
10
Note: We assigned a 10% ‘other’ adjustment to account for this hotel’s new prototype compared to many older La Quintas in the marketplace.
11
Unadjusted for physical aging of each brand.
37
3. Developing actual adjustment factors for the existing properties - so that their projected REVPAR
equals actual REVPAR - indicates why the REVPAR index projection has a high probability of being
achieved. The REVPAR differences between the closest key competitors appear to be both
explainable and reasonable, using the standard, Source Strategies' adjustment factor quantification.
For each property, revenues are driven first by chain name affiliation and product type, and are
further adjusted for size, segment, hotel age and site location. The REVPAR Index is then multiplied
by the actual local area market average to generate dollar REVPAR. We also include the theoretical
Year III performance of the subject hotel, as if it were open today and in its third year of operation,
as follows:
REVPAR DERIVATION
SUBJECT:
La Quinta
Inn & Suites Residence Comfort Best Holiday
Derivation Courtyard Towneplace Inn Suites Western Express
Data in 2018 $'s Year III 77449 77449 77449 77449 77084 77084
Base: Name & Quality 1.09 1.50 1.58 1.65 1.15 1.21 1.41
x Brand Age Adjustment 1.17 1.02 0.92 1.00 1.00 1.13 .99
x Site Value Adjustment 0.95 0.96 0.96 1.00 0.97 1.02 1.08
x Size Adjustment 1.00 1.12 1.07 0.95 1.00 0.99 1.06
x Other Adjustments 1.10 0.90 1.00 1.00 1.00 1.00 1.10
x Newness Adjustment 1.12 1.12 1.12 1.03 1.01 0.90 0.90
= Performance Factor 149% 166% 168% 162% 114% 124% 157%
x Market REVPAR $48.81 $48.81 $48.81 $48.81 $48.81 $48.81 $48.81

= Projected Performance $72.97 $80.95 $81.76 $79.16 $55.58 $60.66 $77.20
Actual Past Year n/a 80.83 82.15 79.21 55.34 60.65 77.18
Index (Proj./Actual) n/a 100 100 100 100 100 100
Year Opened n/a 2015 2015 2009 2008 2001 2001
# Rooms 85 76 76 117 68 60 66
38
4. The projected REVPAR performance of the La Quinta Inn & Suites versus the local market
average reflects the fact that this hotel will be new, well sized, and will offer a strong brand in a good
location. It should perform above the market average REVPAR over the course of our projection,
which is a solid performance for this product type:
39
5. The graphically projected occupancy performance of the La Quinta versus the local market
average reflects the fact that this hotel will be above the overall market average because of its
branding, size and newness:
6. Typically, a new hotel will have an inordinate advantage over older products. The average hotel
room in the local market is over 23 years old, well past the peak performing first ten years of the life
cycle of the typical hotel building, which becomes stylistically and structurally obsolete after 30+
years. This 30 year life cycle is significantly longer for high-rise/concrete structures. Out of 3,126
total rooms in the local market, 893, or 29% have been built since 2009, while 1,608, or 51% were
opened before 1999 (at least 20 years old). There is typically a wide and dramatic gap between the
performance of new and older properties, with newer hotel inventory easily outperforming older
hotels that are well past their peak performing years. Well established consumer research strongly
indicates that to consumers 'new' means 'clean,' and 'old' means 'dirty', with cleanliness the number
one consumer selection factor in lodging.
40
Local City of Townsville Properties
Year #
Open Rooms Hotel
2016 112 HOLIDAY INN TOWNSVILLE
2015 76 COURTYARD BY MARRIOTT
2015 76 TOWNEPLACE SUITES
2014 50 TRAVEL INN
2011 72 CANDLEWOOD SUITES
2010 55 SLEEP INN & SUITES
2010 74 COMFORT SUITES (FMR SLEEP I&S)
2010 116 WOODSPRING SUITES
2010 72 LA QUINTA INN & SUITES
2009 117 RESIDENCE INN
2009 73 COMFORT INN
2008 68 COMFORT SUITES UNIVERSITY
2008 54 SUPER 8
2008 66 WINGATE BY WYNDHAM
2008 123 HILTON GARDEN INN - TOWNSVILLE
2007 72 TOWNSVILLE HAMPTON INN & SUITES
2006 66 HOLIDAY INN EXPRESS HOTEL
2001 66 HOLIDAY INN EXPRESS
2001 60 BEST WESTERN INN & SUITES
2000 50 TOWNSVILLE LUXURY SUITES
1996 99 COURTYARD BY MARRIOTT
1995 49 QUALITY INN (FMR COMFORT)
1995 71 FAIRFIELD INN & SUITES
1995 63 HAMPTON INN
1986 52 ANTILLEY INN
1985 90 MOTEL 6 (FMR KNIGHTS INN/DAYS)
1985 175 MCM ELEGANTE' SUITES
1984 61 DAYS INN TOWNSVILLE (FMR B WESTERN)
1983 140 COUNTRY HEARTH INN & SUITES
1982 94 SUPER 8
1979 106 LA QUINTA INN
1976 103 EMERALD INN EXPO
1976 140 ROYAL INN OF TOWNSVILLE
1973 161 WHITE INN UNIVERSITY
1972 100 MOTEL 6
1966 54 BEST BUDGET INN
1960 50 LOGOS HOTEL
41
PRO FORMA: Applying the project derivation factor (149% Years III-V) to the quarterly local
market REVPAR forecast results in the following progression:
PROJECT REVPAR PROJECTION
Local Subject Subj/Local
Year & Qtr Market Hotel Index Annualized
202 55.60 68.28 123
203 53.75 66.01 123
204 47.94 58.87 123
211 46.50 57.10 123 123
212 57.26 81.79 143
213 55.09 78.69 143
214 49.14 70.19 143
221 47.66 68.07 143 143
222 58.70 87.75 149
223 56.47 84.43 149
224 50.37 75.30 149
231 48.85 73.03 149 149
232 60.16 89.94 149
233 57.88 86.54 149
234 51.63 77.18 149
241 50.07 74.86 149 149
242 61.67 92.19 149
243 59.62 89.13 149
244 53.18 79.50 149
251 51.58 77.10 149 149
252 63.52 93.37 147
253 61.41 90.27 147
254 54.77 80.52 147
261 53.12 78.09 147 147
262 65.42 94.57 145
263 63.25 91.43 145
264 56.42 81.55 145
271 54.72 79.09 145 145
272 67.39 95.78 142
273 65.15 92.60 142
274 58.11 82.59 142
281 56.36 80.10 142 142
282 69.41 97.00 140
283 67.10 93.78 140
284 59.85 83.65 140
291 58.05 81.13 140 140
292 71.49 98.25 137
293 69.12 94.98 137
294 61.65 84.72 137
301 59.64 81.97 137 137
9 Yrs 2.8% 4.1%
First 5 Yrs 2.7% 6.5%
*CGR% measured from open date
42
This REVPAR forecast is then extended to room revenues - multiplying REVPAR by the
number of days in each quarter and by the number of rooms in the project - and to occupancy,
estimated rate and to room-nights sold:
RESULTING PROJECTION: La Quinta Inn & Suites
Resulting Room Annual Basis

Year & Room Estimated Nights
Qtr Revenues Annual Basis % Occ ADR Sold RNS % Occ ADR
202 $528,114 68.3 $100.00 5281
203 $516,179 66.0 $100.00 5162
204 $460,402 62.0 $95.00 4846
211 $436,819 $1,941,514 60.1 $95.00 4598 19887 64.1% $97.63
212 $632,632 77.9 $105.00 6025
213 $615,347 74.9 $105.00 5860
214 $548,854 70.4 $99.75 5502
221 $520,741 $2,317,573 68.2 $99.75 5220 22608 72.9% $102.51
222 $678,749 79.6 $110.25 6156
223 $660,204 76.6 $110.25 5988
224 $588,864 71.9 $104.74 5622
231 $558,701 $2,486,518 69.7 $104.74 5334 23101 74.5% $107.64
232 $695,717 78.8 $114.11 6097
233 $676,709 75.8 $114.11 5930
234 $603,585 71.2 $108.40 5568
241 $572,669 $2,548,681 69.1 $108.40 5283 22878 73.7% $111.40
242 $713,110 78.5 $117.42 6073
243 $697,011 75.9 $117.42 5936
244 $621,693 71.3 $111.55 5573
251 $589,849 $2,621,663 69.1 $111.55 5288 22871 73.7% $114.63
252 $722,238 77.6 $120.35 6001
253 $705,932 75.0 $120.35 5865
254 $629,650 70.4 $114.34 5507
261 $597,399 $2,655,218 68.3 $114.34 5225 22598 72.8% $117.50
262 $731,481 76.7 $123.36 5930
263 $714,967 74.1 $123.36 5796
264 $637,709 69.6 $117.19 5441
271 $605,045 $2,689,202 67.5 $117.19 5163 22329 72.0% $120.43
272 $740,844 75.7 $126.45 5859
273 $724,118 73.2 $126.45 5727
274 $645,871 68.8 $120.12 5377
281 $612,789 $2,723,621 66.7 $120.12 5101 22064 71.1% $123.44
282 $750,326 74.8 $129.61 5789
283 $733,386 72.4 $129.61 5659
284 $654,137 67.9 $123.13 5313
291 $620,632 $2,758,480 65.9 $123.13 5041 21801 70.3% $126.53
292 $759,929 74.3 $132.20 5748
293 $742,772 71.8 $132.20 5619
294 $662,509 67.5 $125.59 5275
301 $627,049 $2,792,260 65.3 $125.59 4993 21635 69.7% $129.06
CGR %
9 Yrs 4.1% 0.9% 3.2% 0.9%
First 5 Yrs 6.5% 2.6% 3.8% 2.6%
-CGR% measured from open date-
43
OPERATING COSTS 12
Profitability and returns reflect the above revenue projections and the following other critical
assumptions: operating costs per occupied room approximate Limited Service hotels of similar size,
rate, and occupancy and include appropriate fixed, semi-fixed and variable costs (Host Almanac
2018: For the year 2017 by STR, and Source Strategies, Inc. data).
Estimates of operating costs take into account the lower costs of the West South Central region of the
United States, which had an average Per Occupied Room Cost of $55.23 (including royalties) in 2017
in Limited Service hotels - versus a national average of $65.08 - or 84.9% of the U.S. average. The
following cost comparisons have all been adjusted to reflect this 15.1% lower-cost environment that
may be expected in operating a hotel in the West South Central (WSC) region.
Rooms only Operating Costs per Occupied Room (before Fixed Charges) are estimated as:
Operating Costs per Occupied Room
Cost per Room Annual

Year Occupied Room Nights Sold Operating Cost
Year I $44.30 19,887 $881,070
Year II $45.22 22,608 $1,022,388
Year III $47.26 23,101 $1,091,845
a) $46.61 in the Host Almanac for Suburban hotels in 2017, adjusted to Southwest the WSC region
of the USA. This POR cost translates to $50.93 when inflated 3% annually to Year 2020 dollars.
b) $60.65 in the Host Almanac for Upper-Midscale hotels in 2017, adjusted to WSC USA. This
POR cost translates to $66.28 when inflated to Year 2020 dollars.
c) $46.99 in the Host Almanac for Interstate hotels in 2017, adjusted to WSC USA. This POR cost
translates to $51.34 when inflated to Year 2020 dollars.
d) $67.77 in the Host Almanac for Upscale hotels in 2017, adjusted to WSC USA. This translates to
$74.06, when inflated to Year 2019 dollars.
e) $31.58 in the Host Report for Midscale/Economy hotels, 2017 data, adjusted to WSC USA. This
POR cost translates to $34.51 when inflated to Year 2020 dollars.
12. The calculation of the statistic of Operating Costs Per Occupied Room (before fixed/capital costs are deducted) is typically the important cost to
examine carefully because it is highly stable and predictable, regardless of occupancy and rate. Looking at costs on a percentage basis can be highly
misleading because of the high variability in average room revenues.
44
- Versus room revenues: a necessary marketing expense of 7% in Year I and thereafter. Marketing
includes reservation and advertising fees, sales expense, local advertising and the always important
outdoor billboards. A 4.5% annual franchise fee was charged for years I and II for this project,
escalating to 5% in subsequent years. A reasonable 3.5% management fee was assessed for this
project.
A reserve for renovations is taken and subtracted from projected cash flows annually; such
renovation reserves amount to $1,439,520 in the first ten years ($16,936 per unit). Reserves insure
that future revenue streams continue by maintaining product quality at high levels as required by the
franchisor. Reserves are based on an extensive 2001 study, CapEx, by the International Society of
Hospitality Consultants. The study shows that required reserves average 5.5% over a 20 year period.
We have applied this reasonable 5.5% annual reserve annually for the first ten years.
- Total developer’s capital of $8,290,000 is allocated for the development of the project. The
estimated total turn-key cost (excluding land) of $96,471 per unit is reasonable, in our experience, for
a project of this type. Land has been valued at $90,000. Should capital needs vary, then returns
would change proportionately. The estimates of necessary capital include:
Total Investment
Land Value $ 90,000 for 2.2 acre

Improvements Budget $ 8,200,000 @ $96,471 per key 13
Total Net Investment $ 8,290,000
<PROFIT & LOSS STATEMENTS FOLLOW OVERLEAF>
13. Developer estimate of land and development costs.

45
La Quinta Inn & Suites, Year I

Land Value: $90,000 Opening Date: 04/01/2020 # Rooms: 85 Cost Per Key: $96,471
QUARTER: Second Third Fourth First Year
Roomnights Sold 5,281 5,162 4,846 4,598 19,887
Roomnights Available 7,735 7,820 7,820 7,650 31,025
Occupancy % 68.3% 66.0% 62.0% 60.1% 64.1%
Average Rate $100.00 $100.00 $95.00 $95.00 $97.63
REVPAR $68.28 $66.01 $58.87 $57.10 $62.58
% Revenues
Room Revenues $528,114 $516,179 $460,402 $436,819 $1,941,514 97.6%
Other Revenue $13,203 $12,904 $11,510 $10,920 $48,538 2.4%
Total Sales $541,317 $529,084 $471,912 $447,740 $1,990,052 100.0%
Operating Expense - Payroll

Administration $24,359 $23,809 $21,236 $20,148 $89,552 4.5%
Housekeeping $21,125 $20,647 $19,385 $18,392 $79,549 4.0%
Laundry $10,562 $10,324 $9,693 $9,196 $39,775 2.0%
Front Desk $22,181 $21,680 $20,355 $19,312 $83,527 4.2%
Miscellaneous $10,826 $10,582 $9,438 $8,955 $39,801 2.0%
Taxes/Benefits $14,249 $13,927 $12,817 $12,161 $53,153 2.7%
Total Payroll $103,302 $100,967 $92,924 $88,164 $385,357 19.4%
Room Expense
Linen & Laundry $6,865 $6,710 $6,300 $5,978 $25,854 1.3%
Comp. F & B $10,562 $10,324 $9,693 $9,196 $39,775 2.0%
Total Room $17,428 $17,034 $15,993 $15,174 $65,628 3.3%
Other Expense
Phone Lines $9,242 $9,033 $8,481 $8,047 $34,803 1.7%
Electric/Utility $23,765 $23,228 $21,808 $20,691 $89,493 4.5%
Maintenance & Repair $10,826 $10,582 $9,438 $8,955 $39,801 2.0%
Total Other $43,833 $42,843 $39,728 $37,693 $164,097 8.2%
General & Administration
Marketing & Advertising $36,968 $36,133 $32,228 $30,577 $135,906 6.8%
Franchise Fee $23,765 $23,228 $20,718 $19,657 $87,368 4.4%
Credit Card $11,619 $11,356 $10,129 $9,610 $42,713 2.1%
Tot Admin & Gen $72,352 $70,717 $63,075 $59,844 $265,987 13.4%
Total Op Expense $236,915 $231,561 $211,720 $200,875 $881,070 44.3%
Gross Operating Profit $304,402 $297,523 $260,192 $246,865 $1,108,982 55.7%

Management Fee $184,840 $180,663 $161,141 $152,887 $679,530 34.1%
Income Before Fixed $119,562 $116,860 $99,051 $93,978 $429,452 21.6%
Fixed Charges
Insurance $10,826 $10,582 $9,438 $8,955 $39,801 2.0%
Property Tax $27,066 $26,454 $23,596 $22,387 $99,503 5.0%
Deprec SL 39 Yrs. $52,564 $52,564 $52,564 $52,564 $210,256 10.6%
Tot Capital Expense $90,456 $89,600 $85,598 $83,906 $349,560 17.6%
Income Before Tax & Fin $29,106 $27,260 $13,453 $10,072 $79,892 4.0%
Depreciation AddBack $52,564 $52,564 $52,564 $52,564 $210,256 10.6%

Renovation Reserve -$29,772 -$29,100 -$25,955 -$24,626 -$109,453 -5.5%
Cash Flow Before Tax & Fin $51,898 $50,725 $40,062 $38,010 $180,696 9.1%
46
La Quinta Inn & Suites, Year II - X

Year 2 3 4 5 6 7 8 9 10 CGR Yr 2-10
Roomnights Sold 22,608 23,101 22,878 22,871 22,598 22,329 22,064 21,801 21,635 1.0%
Roomnights Available 31,025 31,025 31,025 31,025 31,025 31,025 31,025 31,025 31,025 0.0%
Occupancy % 72.9% 74.5% 73.7% 73.7% 72.8% 72.0% 71.1% 70.3% 69.7% 0.9%
Average Rate* $102.51 $107.64 $111.40 $114.63 $117.50 $120.43 $123.44 $126.53 $129.06 3.2%
REVPAR $74.70 $80.15 $82.15 $84.50 $85.58 $86.68 $87.79 $88.91 $90.00 4.1%
Room Revenues $2,317,573 $2,486,518 $2,548,681 $2,621,663 $2,655,218 $2,689,202 $2,723,621 $2,758,480 $2,792,260 4.0%
Other Revenues $57,939 $62,163 $63,717 $65,542 $66,380 $67,230 $68,091 $68,962 $69,807 4.1%
Total Revenues $2,375,513 $2,548,681 $2,612,398 $2,687,204 $2,721,598 $2,756,432 $2,791,711 $2,827,442 $2,862,067 4.1%
Operating Expense - Payroll

Administration $92,015 $94,545 $97,145 $99,817 $102,562 $105,382 $108,280 $111,258 $114,318 2.8%
Housekeeping $92,920 $97,557 $99,272 $101,969 $103,526 $105,106 $106,711 $108,341 $110,472 3.7%
Laundry $46,460 $48,779 $49,636 $50,984 $51,763 $52,553 $53,356 $54,170 $55,236 3.7%
Front Desk $97,566 $102,435 $104,235 $107,067 $108,702 $110,362 $112,047 $113,758 $115,996 3.7%
Miscellaneous $46,491 $48,811 $49,669 $51,018 $51,797 $52,588 $53,391 $54,206 $55,273 3.7%
Taxes/Benefits $60,072 $62,740 $63,993 $65,737 $66,936 $68,159 $69,406 $70,677 $72,207 3.5%
Total Payroll $435,524 $454,868 $463,950 $476,592 $485,285 $494,150 $503,191 $512,410 $523,501 3.5%
Room Expense
Linen & Laundry $30,199 $31,706 $32,263 $33,140 $33,646 $34,160 $34,681 $35,211 $35,903 3.7%
Comp. F & B $46,460 $48,779 $49,636 $50,984 $51,763 $52,553 $53,356 $54,170 $55,236 3.7%
Total Room $76,659 $80,485 $81,899 $84,124 $85,409 $86,713 $88,037 $89,381 $91,139 3.7%
Other Expense
Phone Lines $40,652 $42,681 $43,431 $44,611 $45,292 $45,984 $46,686 $47,399 $48,332 3.7%
Electric $104,535 $109,752 $111,681 $114,715 $116,466 $118,245 $120,050 $121,883 $124,281 3.7%
Repairs & Maint. $47,510 $50,974 $52,248 $53,744 $54,432 $55,129 $55,834 $56,549 $57,241 4.1%
Total Other $192,698 $203,407 $207,360 $213,070 $216,191 $219,357 $222,571 $225,831 $229,854 3.8%
General & Administration
Marketing & Advert $162,230 $174,056 $178,408 $183,516 $185,865 $188,244 $190,653 $193,094 $195,458 4.1%
Franchise Fee $104,291 $124,326 $127,434 $131,083 $132,761 $134,460 $136,181 $137,924 $139,613 5.3%
Credit Card $50,987 $54,703 $56,071 $57,677 $58,415 $59,162 $59,920 $60,687 $61,430 4.1%
Total Admin & Gen $317,508 $353,086 $361,913 $372,276 $377,041 $381,867 $386,754 $391,704 $396,501 4.5%
Total Oper Expense $1,022,388 $1,091,845 $1,115,121 $1,146,062 $1,163,925 $1,182,087 $1,200,552 $1,219,327 $1,240,996 3.9%
Gross Op Profit $1,353,125 $1,456,836 $1,497,277 $1,541,142 $1,557,673 $1,574,345 $1,591,159 $1,608,116 $1,621,071 4.3%
47
La Quinta Inn & Suites, Year II - X

Year 2 3 4 5 6 7 8 9 10 CGR Yr 2-10
Roomnights Sold 22,608 23,101 22,878 22,871 22,598 22,329 22,064 21,801 21,635 1.0%
Roomnights Available 31,025 31,025 31,025 31,025 31,025 31,025 31,025 31,025 31,025 0.0%
Occupancy % 72.9% 74.5% 73.7% 73.7% 72.8% 72.0% 71.1% 70.3% 69.7% 0.9%
Average Rate* $102.51 $107.64 $111.40 $114.63 $117.50 $120.43 $123.44 $126.53 $129.06 3.2%
REVPAR $74.70 $80.15 $82.15 $84.50 $85.58 $86.68 $87.79 $88.91 $90.00 4.1%
Room Revenues $2,317,573 $2,486,518 $2,548,681 $2,621,663 $2,655,218 $2,689,202 $2,723,621 $2,758,480 $2,792,260 4.0%
Other Revenues $57,939 $62,163 $63,717 $65,542 $66,380 $67,230 $68,091 $68,962 $69,807 4.1%
Total Revenues $2,375,513 $2,548,681 $2,612,398 $2,687,204 $2,721,598 $2,756,432 $2,791,711 $2,827,442 $2,862,067 4.1%
Gross Op Profit $1,353,125 $1,456,836 $1,497,277 $1,541,142 $1,557,673 $1,574,345 $1,591,159 $1,608,116 $1,621,071 4.3%
Mngmt Fee $81,115 $87,028 $89,204 $91,758 $92,933 $94,122 $95,327 $96,547 $97,729 -19.4%
Income Before Fixed Charges $1,272,010 $1,369,808 $1,408,073 $1,449,384 $1,464,740 $1,480,223 $1,495,832 $1,511,569 $1,523,342 15.1%
Fixed Charges
Insurance $40,896 $42,020 $43,176 $44,363 $45,583 $46,837 $48,125 $49,448 $50,808 2.8%
Property Tax $102,239 $105,051 $107,939 $110,908 $113,958 $117,092 $120,312 $123,620 $127,020 2.8%
Depr. SL 39 Yrs. $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 0.0%
Total Fixed Charges $353,391 $357,327 $361,372 $365,527 $369,797 $374,185 $378,693 $383,325 $388,084 1.2%
Income Before Tax & Financing $918,619 $1,012,481 $1,046,701 $1,083,857 $1,094,943 $1,106,038 $1,117,140 $1,128,244 $1,135,258 34.3%
Depr. AddBack $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 $210,256 0.0%
Renovation Reserve -$130,653 -$140,177 -$143,682 -$147,796 -$149,688 -$151,604 -$153,544 -$155,509 -$157,414 4.1%
Cash Flow Bef Tax & Fin $998,222 $1,082,560 $1,113,276 $1,146,317 $1,155,511 $1,164,691 $1,173,852 $1,182,991 $1,188,101 23.3%
48
May 01, 2019
OPINION
This report is based on independent opinion, surveys and research from sources
considered reliable. No representation is made as to accuracy or completeness and no
contingent liability of any kind can be accepted.
The study projections are dependent on the developer building and operating a La Quinta
Inn & Suites Hotel, the described upgraded amenities, and spending the appropriate
operating funds necessary to generate projected revenues, most especially budgeted
funds for aforementioned amenities and for marketing, including a listing in the
American Automobile Association Texas Tourbook and a prominent internet presence..
It is our opinion that this report fairly and conservatively represents the room revenues,
profitability and return on investment performance that can be achieved by developing
and operating an 85-unit La Quinta Inn & Suites Hotel at the aforementioned site in
Townsville, Texas.
Please contact us with any questions at (210) 734-3434.
Respectfully submitted,
Douglas W. Sutton, Todd Walker,

Executive Vice President President
PO Box 120055 ♦ 134 Laurel Heights, San Antonio, TX 78212 ♦ 210-734-3434 ♦ Fax 210-735-7970 ♦ www.SourceStrategies.Org
49
EXHIBITS:
I Wider 12 County Market & City of Townsville Market, Aggregated Basis
II Local Market History: By Segment and Brand, Past Five Years, Annual Basis
III Individual Hotel/Motel Histories Local Market
IV Texas Hotel Product Excluding Luxury, HP Independents, and AUS, DAL, FWA,
HOU SAY, MID, and ODE Metros.
V The Case For Downsizing Hotels
VI Start-up Performance of New Hotels
VII CAPEX Study of Capital Expenditures
VIII Preparer Qualifications and Client List
IX Source Strategies Database Methodology
X Hotel Brand Report Newsletter (separate file)

EXHIBIT I
50
HOTEL MARKET: WIDER 12 COUNTY TOWNSVILLE AREA
# Rnights $ Rooms
Hotels # sold 1 Revenues % $ $
YRQ Motels Rooms (000s) (000 s) OCC2 Rate3 RPAR4
--- ------ ------ ------- ---------- ---- ----- -----
091 60 4,038 185.8 12,011 51.1 64.63 33.05
092 63 4,073 187.4 12,862 50.6 68.64 34.70
093 64 4,077 191.0 12,460 50.9 65.22 33.22
094 60 4,026 156.1 9,967 42.1 63.85 26.91
*TOTAL 2009 720.3 47,299 48.7 65.66 31.97
101 60 4,104 165.1 10,165 44.7 61.57 27.52

102 69 4,388 188.1 12,536 47.1 66.63 31.40
103 71 4,540 205.3 13,211 49.2 64.34 31.63
104 65 4,408 180.6 11,740 44.5 65.02 28.95
*TOTAL 2010 739.1 47,652 46.4 64.47 29.93
111 62 4,353 206.0 13,265 52.6 64.38 33.86

112 68 4,459 241.9 17,502 59.6 72.35 43.13
113 67 4,461 247.1 17,494 60.2 70.79 42.62
114 62 4,296 200.2 14,050 50.7 70.17 35.55
*TOTAL 2011 895.3 62,312 55.8 69.60 38.87
121 59 4,204 207.1 14,320 54.7 69.15 37.85

122 61 4,264 222.4 15,959 57.3 71.77 41.13
123 61 4,191 208.4 14,893 54.1 71.45 38.62
124 60 4,216 196.5 13,819 50.7 70.33 35.63
*TOTAL 2012 834.4 58,991 54.2 70.70 38.31
131 59 4,130 209.0 14,533 56.2 69.54 39.10

132 61 4,139 222.7 16,639 59.1 74.71 44.18
133 60 4,120 206.0 15,417 54.4 74.82 40.67
134 58 4,095 195.8 13,872 52.0 70.86 36.82
*TOTAL 2013 833.5 60,462 55.4 72.54 40.20
141 59 4,117 213.5 15,568 57.6 72.93 42.02

142 61 4,161 225.8 17,810 59.6 78.88 47.04
143 62 4,168 228.4 18,777 59.6 82.20 48.97
144 59 4,092 217.6 16,546 57.8 76.03 43.95
*TOTAL 2014 885.3 68,702 58.7 77.60 45.52
151 57 4,026 224.1 17,042 61.8 76.06 47.03

152 60 4,154 225.0 18,522 59.5 82.30 49.00
153 63 4,236 221.0 18,692 56.7 84.57 47.96
154 61 4,327 211.8 15,418 53.2 72.81 38.73
*TOTAL 2015 881.9 69,674 57.7 79.01 45.59
161 61 4,361 206.5 15,124 52.6 73.23 38.53

162 62 4,404 228.3 18,118 57.0 79.34 45.21
163 65 4,470 210.8 17,526 51.3 83.15 42.62
164 58 4,351 203.0 14,716 50.7 72.48 36.76
*TOTAL 2016 848.7 65,484 52.9 77.16 40.81
© Copyright SOURCE STRATEGIES, INC. | All Rights Reserved | SourceStrategies.org

EXHIBIT I
51
HOTEL MARKET: WIDER 12 COUNTY TOWNSVILLE AREA
# Rnights $ Rooms
Hotels # sold 1 Revenues % $ $
YRQ Motels Rooms (000s) (000 s) OCC2 Rate3 RPAR4
--- ------ ------ ------- ---------- ---- ----- -----
171 61 4,452 210.0 15,710 52.4 74.82 39.21
172 62 4,445 232.4 18,760 57.5 80.73 46.38
173 66 4,483 215.3 18,139 52.2 84.25 43.98
174 62 4,415 214.6 15,858 52.8 73.91 39.04
*TOTAL 2017 872.2 68,467 53.7 78.50 42.17
181 64 4,520 234.1 16,765 57.5 71.63 41.21

182 70 4,843 264.2 21,244 60.0 80.40 48.20
183 72 4,772 256.8 20,626 58.5 80.30 46.98
184 69 4,721 248.8 18,295 57.3 73.54 42.12
*TOTAL 2018 1,003.9 76,930 58.3 76.63 44.70
*TOTAL 8,514.7 625,972 54.2 73.52 39.86
1. Room-nights sold (derived from est. rate and actual room revenues)
2. Occupancy: nights sold divided by nights available for sale (x 100)
3. Average price for each Room-night sold; from Directories and surveys
4. $ Revenue per available room per day (room sales per day)

EXHIBIT I
52
LODGING MARKET: CITY OF TOWNSVILLE
# RNIGHTS $ ROOMS
Hotels # SOLD 1 REVENUES % $ $
YRQ Motels ROOMS (000S) (000 S) OCC2 Rate3 RPAR4
--- ------ ------ ------- ---------- ---- ----- -----
091 28 2,426 114.2 8,646 52.3 75.70 39.60
092 29 2,499 115.4 9,350 50.7 81.02 41.11
093 29 2,499 117.1 8,861 50.9 75.67 38.54
094 29 2,499 96.7 7,222 42.1 74.69 31.41
*TOTAL 2009 443.4 34,078 49.0 76.86 37.63
101 30 2,554 106.9 7,559 46.5 70.69 32.89

102 32 2,696 117.2 9,133 47.8 77.95 37.23
103 33 2,806 125.9 9,387 48.8 74.57 36.36
104 33 2,812 110.1 8,233 42.6 74.78 31.83
*TOTAL 2010 460.1 34,313 46.4 74.58 34.59
111 33 2,814 126.9 9,224 50.1 72.69 36.42

112 33 2,814 156.0 12,798 60.9 82.05 49.98
113 33 2,817 154.9 12,477 59.8 80.53 48.14
114 32 2,737 122.1 9,769 48.5 80.01 38.79
*TOTAL 2011 559.9 44,268 54.9 79.06 43.39
121 32 2,747 129.1 9,999 52.2 77.46 40.44

122 32 2,776 143.2 11,347 56.7 79.24 44.92
123 33 2,846 140.7 10,617 53.7 75.45 40.55
124 33 2,856 126.0 9,702 48.0 76.99 36.93
*TOTAL 2012 539.0 41,665 52.6 77.30 40.67
131 33 2,856 139.6 10,410 54.3 74.55 40.50

132 33 2,856 151.2 12,219 58.2 80.82 47.02
133 33 2,856 143.4 11,402 54.6 79.49 43.39
134 33 2,836 130.5 9,975 50.0 76.41 38.23
*TOTAL 2013 564.8 44,006 54.3 77.91 42.29
141 33 2,836 143.3 10,991 56.1 76.70 43.06

142 33 2,836 154.6 13,034 59.9 84.29 50.51
143 33 2,836 153.5 13,395 58.8 87.27 51.34
144 32 2,781 147.2 11,759 57.5 79.90 45.96
*TOTAL 2014 598.6 49,179 58.1 82.16 47.74
151 32 2,771 153.2 12,232 61.4 79.83 49.05

152 33 2,819 153.8 13,303 60.0 86.47 51.86
153 33 2,819 146.6 13,136 56.5 89.60 50.65
154 35 2,971 145.5 10,788 53.2 74.12 39.47
*TOTAL 2015 599.2 49,460 57.7 82.54 47.62
161 35 2,971 140.7 10,749 52.6 76.42 40.20

162 35 2,971 159.8 13,335 59.1 83.45 49.32
163 35 2,971 145.1 12,957 53.1 89.31 47.40
164 36 3,084 149.0 11,236 52.5 75.40 39.60
*TOTAL 2016 594.6 48,277 54.3 81.20 44.10

EXHIBIT I
53
# RNIGHTS $ ROOMS
Hotels # SOLD 1 REVENUES % $ $
YRQ Motels ROOMS (000S) (000 S) OCC2 Rate3 RPAR4
--- ------ ------ ------- ---------- ---- ----- -----
171 37 3,126 151.5 12,052 53.8 79.56 42.84
172 37 3,126 167.8 14,423 59.0 85.95 50.70
173 37 3,126 151.2 13,346 52.6 88.30 46.41
174 37 3,126 151.2 11,787 52.6 77.94 40.98
*TOTAL 2017 621.7 51,609 54.5 83.02 45.23
181 37 3,126 163.4 12,270 58.1 75.09 43.61

182 37 3,126 176.0 15,583 61.9 88.53 54.78
183 37 3,126 170.5 14,716 59.3 86.30 51.17
184 37 3,126 168.0 13,121 58.4 78.12 45.62
*TOTAL 2018 677.9 55,689 59.4 82.15 48.81
*TOTAL 5,659.2 452,544 54.3 79.97 43.40
1. Room-nights sold (derived from est. rate and actual room revenues)
2. Occupancy: nights sold divided by nights available for sale (x 100)
3. Average price for each Room-night sold; from Directories and surveys
4. $ Revenue per available room per day (room sales per day)

EXHIBIT II
54
# * EST. $ EST.
# RMS % RNS % AMT. % EST. $ $
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
RESIDENCE 1 .1 3.7 28 4.1 3,388 6.1 64.6 122.71 79.33
TOT SUITES 1 .1 3.7 28 4.1 3,388 6.1 64.6 122.71 79.33
COURTYARD 2 .2 5.6 42 6.2 4,761 8.5 66.1 112.72 74.53

HILT GARD 1 .1 3.9 30 4.4 4,194 7.5 66.5 140.57 93.42
HOLID INN 1 .1 3.6 28 4.2 3,051 5.5 68.9 108.32 74.63
TOT MID/UPS 4 .4 13.1 100 14.8 12,005 21.6 67.0 119.78 80.22
CANDLWOOD 1 .1 2.3 18 2.6 1,453 2.6 67.4 82.09 55.29

COMFO STE 2 .1 4.5 33 4.9 2,813 5.1 64.1 84.62 54.27
TOWNPLACE 1 .1 2.4 19 2.9 2,279 4.1 69.9 117.57 82.14
TOT MIN STE 4 .3 9.3 70 10.4 6,545 11.8 66.4 93.07 61.83
BEST WEST 1 .1 1.9 14 2.0 1,328 2.4 62.3 97.35 60.65

COMFO INN 1 .1 2.3 16 2.3 1,054 1.9 59.6 66.39 39.54
FAIRFIELD 1 .1 2.3 16 2.4 1,638 2.9 62.2 101.56 63.19
HAMPTON 2 .1 4.3 33 4.8 4,213 7.6 66.2 129.20 85.50
HOLID EXP 2 .1 4.2 32 4.7 3,493 6.3 65.5 110.60 72.49
LA QUINTA 2 .2 5.7 41 6.1 3,504 6.3 63.6 84.86 53.94
SLEEP INN 1 .1 1.8 12 1.7 962 1.7 58.7 81.64 47.92
WINGATE 1 .1 2.1 12 1.7 751 1.3 48.9 63.69 31.17
TOT LTD SVE 11 .8 24.6 175 25.8 16,942 30.4 62.2 96.98 60.28
WOODSPRNG 1 .1 3.7 25 3.7 1,360 2.4 59.6 53.88 32.12

TOT EXT STA 1 .1 3.7 25 3.7 1,360 2.4 59.6 53.88 32.12
DAYS INN 1 .1 2.0 14 2.1 990 1.8 63.5 70.08 44.48

MOTEL 6 2 .2 6.1 39 5.8 1,720 3.1 56.9 43.60 24.80
QUALITY 1 .0 1.6 11 1.6 936 1.7 62.2 84.16 52.35
SUPER 8 2 .1 4.7 23 3.3 1,031 1.9 41.7 45.73 19.09
OTHER BUD 1 .1 4.5 32 4.7 1,391 2.5 62.2 43.74 27.21
TOT BUDGET 7 .6 18.8 119 17.6 6,068 10.9 55.5 50.98 28.27
TOT CHAINS 28 2.3 73.3 517 76.3 46,308 83.2 61.8 89.55 55.38
INDEPENDENTS
$60-99ADR 1 .2 5.6 40 5.9 4,255 7.6 63.1 105.66 66.62
LT $60ADR 8 .7 21.1 120 17.8 5,126 9.2 50.0 42.56 21.28
TOT IND HTL 9 .8 26.7 161 23.7 9,382 16.8 52.7 58.37 30.78
TOT MARKET 37 3.1 100.0 678 100.0 55,689 100 59.4 82.16 48.81
* All figures annualized. Includes taxed and estimated non-tax room revenues.

EXHIBIT II
55
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
RESIDENCE 1 .1 3.7 26 4.2 3,263 6.3 61.6 124.12 76.40
TOT SUITES 1 .1 3.7 26 4.2 3,263 6.3 61.6 124.12 76.40
COURTYARD 2 .2 5.6 39 6.2 4,260 8.3 60.7 109.82 66.69

HILT GARD 1 .1 3.9 27 4.4 4,038 7.8 60.9 147.74 89.94
HOLID INN 1 .1 3.6 26 4.2 2,448 4.7 63.5 94.31 59.89
TOT MID/UPS 4 .4 13.1 92 14.8 10,746 20.8 61.5 116.70 71.81
CANDLWOOD 1 .1 2.3 15 2.4 1,215 2.4 57.0 81.14 46.24

COMFO STE 2 .1 4.5 31 5.0 2,576 5.0 59.9 82.96 49.71
TOWNPLACE 1 .1 2.4 17 2.8 2,060 4.0 62.7 118.39 74.27
TOT MIN STE 4 .3 9.3 63 10.2 5,852 11.3 59.9 92.25 55.28
BEST WEST 1 .1 1.9 13 2.0 1,225 2.4 57.2 97.87 55.94

COMFO INN 1 .1 2.3 14 2.3 974 1.9 54.3 67.38 36.55
FAIRFIELD 1 .1 2.3 15 2.5 1,586 3.1 58.8 104.02 61.21
HAMPTON 2 .1 4.3 30 4.8 4,144 8.0 61.0 137.94 84.10
HOLID EXP 2 .1 4.2 29 4.6 3,286 6.4 59.3 114.98 68.21
LA QUINTA 2 .2 5.7 38 6.1 3,143 6.1 58.3 82.91 48.37
SLEEP INN 1 .1 1.8 11 1.7 957 1.9 52.9 90.07 47.66
WINGATE 1 .1 2.1 13 2.1 945 1.8 52.9 74.12 39.23
TOT LTD SVE 11 .8 24.6 162 26.1 16,260 31.5 57.7 100.30 57.85
WOODSPRNG 1 .1 3.7 24 3.8 1,190 2.3 55.5 50.63 28.11

TOT EXT STA 1 .1 3.7 24 3.8 1,190 2.3 55.5 50.63 28.11
DAYS INN 1 .1 2.0 12 1.9 1,016 2.0 51.7 88.32 45.64

MOTEL 6 2 .2 6.1 33 5.3 1,445 2.8 47.7 43.68 20.84
QUALITY 1 .0 1.6 10 1.6 819 1.6 54.6 83.95 45.80
SUPER 8 2 .1 4.7 24 3.9 1,128 2.2 45.2 46.22 20.88
OTHER BUD 1 .1 4.5 30 4.9 1,293 2.5 59.4 42.60 25.31
TOT BUDGET 7 .6 18.8 109 17.6 5,702 11.0 50.8 52.26 26.57
TOT CHAINS 28 2.3 73.3 477 76.7 43,013 83.3 57.0 90.26 51.44
INDEPENDENTS
$100+ ADR 1 .2 5.6 38 6.0 4,148 8.0 58.7 110.56 64.94
LT $60ADR 8 .7 21.1 108 17.3 4,448 8.6 44.6 41.36 18.46
TOT IND HTL 9 .8 26.7 145 23.3 8,596 16.7 47.6 59.26 28.20
TOT MARKET 37 3.1 100.0 622 100.0 51,609 100 54.5 83.02 45.23

EXHIBIT II
56
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
RESIDENCE 1 .1 3.9 27 4.6 3,255 6.7 63.8 119.46 76.23
OTH SUITE 1 .2 5.8 36 6.0 4,174 8.6 55.8 117.08 65.35
TOT SUITES 2 .3 9.7 63 10.6 7,430 15.4 59.0 118.11 69.71
COURTYARD 2 .2 5.8 37 6.2 3,868 8.0 57.3 105.74 60.55

HILT GARD 1 .1 4.1 27 4.5 3,596 7.4 59.2 135.33 80.09
HOLID INN 1 .0 .9 2 .4 181 .4 22.6 77.94 17.59
TOT MID/UPS 4 .3 10.9 65 11.0 7,644 15.8 55.0 116.76 64.20
CANDLWOOD 1 .1 2.4 16 2.7 1,358 2.8 61.5 83.98 51.66

COMFO STE 2 .1 4.7 30 5.1 2,528 5.2 58.0 84.04 48.78
TOWNPLACE 1 .1 2.5 17 2.8 1,821 3.8 60.7 108.21 65.64
TOT MIN STE 4 .3 9.7 63 10.6 5,707 11.8 59.6 90.47 53.91
BEST WEST 2 .1 4.0 25 4.2 2,299 4.8 57.2 91.07 52.05

COMFO INN 1 .1 2.4 15 2.5 1,002 2.1 55.3 67.97 37.62
FAIRFIELD 1 .1 2.4 16 2.6 1,378 2.9 59.8 88.89 53.16
HAMPTON 2 .1 4.5 31 5.2 4,123 8.5 62.5 133.79 83.66
HOLID EXP 2 .1 4.4 29 4.9 3,419 7.1 60.5 117.38 70.97
LA QUINTA 2 .2 5.9 36 6.1 2,893 6.0 56.0 79.55 44.53
SLEEP INN 1 .1 1.8 12 2.1 1,049 2.2 60.8 85.96 52.26
WINGATE 1 .1 2.2 13 2.1 956 2.0 52.5 75.57 39.68
TOT LTD SVE 12 .8 27.7 177 29.7 17,119 35.5 58.2 96.90 56.44
WOODSPRNG 1 .1 3.9 24 4.1 1,272 2.6 57.8 51.94 30.04

TOT EXT STA 1 .1 3.9 24 4.1 1,272 2.6 57.8 51.94 30.04
MOTEL 6 1 .1 3.3 20 3.4 946 2.0 55.9 46.33 25.91

QUALITY 1 .0 1.6 10 1.7 826 1.7 57.6 80.24 46.21
SUPER 8 2 .1 4.9 27 4.6 1,272 2.6 50.5 46.62 23.54
OTHER BUD 2 .2 7.9 38 6.5 1,441 3.0 44.3 37.47 16.58
TOT BUDGET 6 .5 17.8 96 16.2 4,484 9.3 49.4 46.50 22.96
TOT CHAINS 29 2.4 79.7 489 82.3 43,656 90.4 56.1 89.27 50.04
INDEPENDENTS
$60-99ADR 1 .2 5.4 31 5.2 2,086 4.3 52.2 68.03 35.50
LT $60ADR 6 .4 14.9 75 12.6 2,535 5.3 45.7 33.90 15.49
TOT IND HTL 7 .6 20.3 105 17.7 4,621 9.6 47.4 43.82 20.78
TOT MARKET 36 3.0 100.0 594 100.0 48,277 100 54.3 81.21 44.10

EXHIBIT II
57
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
RESIDENCE 1 .1 4.1 29 4.8 3,488 7.1 67.0 121.97 81.67
OTH SUITE 1 .2 6.2 37 6.2 4,508 9.1 58.0 121.65 70.58
TOT SUITES 2 .3 10.3 66 11.0 7,996 16.2 61.6 121.79 75.03
COURTYARD 2 .1 4.2 26 4.3 3,045 6.2 59.8 118.18 70.61

HILT GARD 1 .1 4.3 29 4.8 3,752 7.6 63.8 131.02 83.57
TOT MID/UPS 3 .2 8.5 54 9.1 6,797 13.7 61.8 124.94 77.22
CANDLWOOD 1 .1 2.5 16 2.7 1,346 2.7 60.8 84.19 51.20

COMFO STE 1 .1 2.4 15 2.5 1,637 3.3 59.3 111.24 65.96
TOWNPLACE 1 .0 .7 4 .6 274 .6 52.9 73.92 39.12
TOT MIN STE 3 .2 5.6 34 5.7 3,256 6.6 59.2 94.66 56.05
BEST WEST 2 .1 4.3 28 4.7 2,509 5.1 63.5 89.43 56.80

COMFO INN 1 .1 2.6 16 2.7 1,269 2.6 61.7 77.22 47.63
FAIRFIELD 1 .1 2.5 17 2.8 1,561 3.2 65.8 91.51 60.24
HAMPTON 2 .1 4.7 33 5.5 4,338 8.8 66.9 131.55 88.04
HOLID EXP 2 .1 4.6 31 5.2 3,863 7.8 64.4 124.55 80.19
LA QUINTA 2 .2 6.3 37 6.2 3,123 6.3 57.2 84.05 48.07
SLEEP INN 2 .1 4.5 31 5.2 2,109 4.3 66.1 67.71 44.78
WINGATE 1 .1 2.3 13 2.2 1,067 2.2 55.5 79.81 44.29
TOT LTD SVE 13 .9 31.8 207 34.6 19,839 40.1 62.7 95.74 60.06
WOODSPRNG 1 .1 4.1 27 4.6 1,302 2.6 64.9 47.35 30.75

TOT EXT STA 1 .1 4.1 27 4.6 1,302 2.6 64.9 47.35 30.75
DAYS INN 1 .1 3.5 10 1.7 335 .7 28.4 32.92 9.35

MOTEL 6 1 .1 3.5 21 3.6 1,087 2.2 58.6 50.81 29.79
QUALITY 1 .0 1.7 11 1.8 890 1.8 61.2 81.23 49.75
SUPER 8 2 .1 5.2 28 4.6 1,383 2.8 51.1 50.13 25.60
OTHER BUD 1 .1 4.9 30 5.1 1,537 3.1 59.6 50.43 30.08
TOT BUDGET 6 .5 18.8 101 16.8 5,232 10.6 51.5 52.01 26.78
TOT CHAINS 28 2.2 79.0 490 81.7 44,423 89.8 59.7 90.70 54.13
INDEPENDENTS
$60-99ADR 1 .2 5.7 32 5.3 2,338 4.7 54.4 73.15 39.79
LT $60ADR 7 .4 15.3 77 12.9 2,699 5.5 48.7 34.85 16.96
TOT IND HTL 8 .6 21.0 109 18.3 5,037 10.2 50.2 46.04 23.12
TOT MARKET 36 2.8 100.0 599 100.0 49,460 100 57.7 82.55 47.62

EXHIBIT II
58
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
RESIDENCE 1 .1 4.1 29 4.8 3,567 7.3 67.3 124.18 83.52
OTH SUITE 1 .2 6.2 38 6.3 4,742 9.6 59.5 124.79 74.23
TOT SUITES 2 .3 10.3 67 11.1 8,308 16.9 62.6 124.53 77.95
COURTYARD 1 .1 3.5 24 4.0 2,861 5.8 65.5 120.85 79.17

HILT GARD 1 .1 4.4 28 4.7 3,648 7.4 63.3 128.39 81.26
TOT MID/UPS 2 .2 7.9 52 8.7 6,509 13.2 64.3 124.97 80.33
CANDLWOOD 1 .1 2.6 20 3.3 1,486 3.0 74.4 76.03 56.54

COMFO STE 1 .1 2.4 16 2.6 1,658 3.4 62.7 106.56 66.82
TOT MIN STE 2 .1 5.0 35 5.9 3,144 6.4 68.7 89.57 61.53
BEST WEST 2 .1 4.3 27 4.6 2,413 4.9 62.2 87.89 54.63

COMFO INN 1 .1 2.6 16 2.7 1,232 2.5 60.6 76.35 46.25
FAIRFIELD 1 .1 2.5 17 2.9 1,511 3.1 67.0 87.05 58.30
HAMPTON 2 .1 4.8 34 5.6 4,240 8.6 68.5 125.52 86.04
HOLID EXP 2 .1 4.7 31 5.2 3,856 7.8 64.7 123.71 80.04
LA QUINTA 2 .2 6.3 37 6.2 3,211 6.5 57.1 86.55 49.43
SLEEP INN 2 .1 4.6 30 5.0 1,969 4.0 63.1 66.26 41.82
WINGATE 1 .1 2.3 14 2.4 1,221 2.5 59.9 84.57 50.68
TOT LTD SVE 13 .9 32.1 207 34.6 19,654 40.0 62.7 94.87 59.50
WOODSPRNG 1 .1 4.1 28 4.7 1,249 2.5 66.9 44.11 29.51

TOT EXT STA 1 .1 4.1 28 4.7 1,249 2.5 66.9 44.11 29.51
DAYS INN 1 .1 3.5 15 2.5 610 1.2 42.1 40.09 16.87

MOTEL 6 1 .1 3.5 22 3.7 1,134 2.3 61.2 50.74 31.06
QUALITY 1 .0 1.7 11 1.8 844 1.7 60.7 77.75 47.19
SUPER 8 2 .1 5.2 26 4.3 1,309 2.7 47.8 50.68 24.24
TOT BUDGET 5 .4 14.0 74 12.4 3,896 7.9 51.4 52.49 26.96
TOT CHAINS 25 2.1 73.4 464 77.5 42,761 87.0 61.3 92.23 56.57
INDEPENDENTS
$60-99ADR 1 .2 5.7 31 5.1 2,205 4.5 52.0 72.16 37.52
LT $60ADR 7 .6 20.9 104 17.4 4,213 8.6 48.4 40.38 19.56
TOT IND HTL 8 .8 26.6 135 22.5 6,418 13.0 49.2 47.58 23.41
TOT MARKET 33 2.8 100.0 598 100.0 49,179 100 58.1 82.17 47.74

EXHIBIT III
59
E 3 YR AVG P
CITY ADDR ZIP S EST 4 OP ADJ 1 T
---- ---- --- T AVG. % -- ----- -
# TAXABLE GROSS ADJ 1 DAILY OCC $ 5
YRQ RMS BRAND REVENUE REVENUE FACTOR 2 RATE EST REVPAR
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3526 W LAKE RD 79601 TOWNSVILLE HAMPTON INN & 07 1.08 H

141 72 HAMPT 543,930 573,293 1.05 124.25 71 88.47
142 72 HAMPT 574,789 608,583 1.06 136.32 68 92.89
143 72 HAMPT 612,752 653,822 1.07 145.28 68 98.71
144 72 HAMPT 580,328 598,016 1.03 132.58 68 90.28
151 72 HAMPT 574,976 607,139 1.06 132.17 71 93.69
152 72 HAMPT 611,867 643,708 1.05 141.42 69 98.25
153 72 HAMPT 617,898 638,638 1.03 154.14 63 96.41
154 72 HAMPT 518,538 537,808 1.04 129.73 63 81.19
161 72 HAMPT 530,988 564,389 1.06 143.03 61 87.10
162 72 HAMPT 591,142 633,343 1.07 149.94 64 96.66
163 72 HAMPT 629,206 648,773 1.03 160.00 61 97.94
164 72 HAMPT 500,620 535,090 1.07 123.76 65 80.78
171 72 HAMPT 493,478 544,413 1.10 139.38 60 84.01
172 72 HAMPT 598,506 632,954 1.06 153.61 63 96.60
173 72 HAMPT 591,400 623,102 1.05 162.85 58 94.07
174 72 HAMPT 518,974 557,457 1.07 132.30 64 84.16
181 72 HAMPT 508,276 553,169 1.09 127.45 67 85.37
182 72 HAMPT 592,351 682,432 1.15 152.21 68 104.16
183 72 HAMPT 597,292 631,301 1.06 151.08 63 95.31
184 72 HAMPT 541,656 584,402 1.08 132.08 67 88.22
350 W INTERSTAT 79601 BEST WESTERN INN & SUITES 01 1.03 H

141 60 BWEST 290,555 302,031 1.04 88.42 63 55.93
142 60 BWEST 354,489 370,013 1.04 105.34 64 67.77
143 60 BWEST 374,002 385,070 1.03 109.45 64 69.76
144 60 BWEST 332,282 334,226 1.01 90.25 67 60.55
151 60 BWEST 326,207 336,788 1.03 91.44 68 62.37
152 60 BWEST 332,230 351,173 1.06 97.84 66 64.32
153 60 BWEST 355,488 358,917 1.01 106.63 61 65.02
154 60 BWEST 255,382 263,119 1.03 87.00 55 47.67
161 60 BWEST 246,936 255,164 1.03 90.40 52 47.25
162 60 BWEST 305,312 323,057 1.06 98.36 60 59.17
163 60 BWEST 289,061 300,455 1.04 102.76 53 54.43
164 60 BWEST 260,857 262,293 1.01 86.69 55 47.52
171 60 BWEST 250,239 261,348 1.04 93.48 52 48.40
172 60 BWEST 324,454 338,350 1.04 97.31 64 61.97
173 60 BWEST 312,852 317,120 1.01 103.35 56 57.45
174 60 BWEST 305,118 308,352 1.01 97.02 58 55.86
181 60 BWEST 295,719 304,511 1.03 91.04 62 56.39
182 60 BWEST 372,514 380,949 1.02 102.76 68 69.77
183 60 BWEST 357,431 363,269 1.02 107.38 61 65.81
184 60 BWEST 276,053 279,415 1.01 87.05 58 50.62
1902 E OVERLAND 79601 COMFORT SUITES UNIVERSITY 08 1.05 H

141 68 COMFS 339,862 367,797 1.08 96.49 62 60.10

EXHIBIT III
60
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 1902 E OVERLAND 79601 COMFORT SUITES UNIVERSITY 08 1.05 H
142 68 COMFS 395,272 435,086 1.10 111.72 63 70.31
143 68 COMFS 401,390 446,065 1.11 114.18 62 71.30
144 68 COMFS 391,227 409,535 1.05 103.58 63 65.46
151 68 COMFS 394,062 426,104 1.08 100.55 69 69.62
152 68 COMFS 429,847 462,456 1.08 123.05 61 74.73
153 68 COMFS 402,735 421,048 1.05 122.67 55 67.30
154 68 COMFS 306,190 327,610 1.07 99.52 53 52.37
161 68 COMFS 297,803 311,088 1.05 96.47 53 50.83
162 68 COMFS 378,498 417,667 1.10 104.64 64 67.50
163 68 COMFS 373,786 388,931 1.04 114.08 54 62.17
164 68 COMFS 290,134 311,877 1.08 93.59 53 49.85
171 68 COMFS 283,277 315,864 1.12 92.79 56 51.61
172 68 COMFS 339,467 376,037 1.11 99.69 61 60.77
173 68 COMFS 303,844 331,412 1.09 95.74 55 52.98
174 68 COMFS 270,572 283,210 .00 79.98 57 45.27
181 68 COMFS 301,128 304,038 1.01 82.57 60 49.68
182 68 COMFS 413,695 423,788 1.02 105.27 65 68.49
183 68 COMFS 351,366 355,986 1.01 94.25 60 56.90
184 68 COMFS 284,605 289,670 1.02 79.85 58 46.30
2141 SCOTTISH R 79601 COURTYARD BY MARRIOTT 15 1.08 H

154 76 COURT 216,925 224,800 1.04 72.20 45 32.15
161 76 COURT 241,703 268,074 1.11 79.94 49 39.19
162 76 COURT 451,075 473,976 1.05 106.78 64 68.53
163 76 COURT 484,350 508,511 1.05 119.85 61 72.73
164 76 COURT 389,960 414,780 1.06 94.23 63 59.32
171 76 COURT 405,340 466,271 1.15 104.62 65 68.17
172 76 COURT 543,709 584,487 .00 G 121.86 69 84.51
173 76 COURT 497,430 521,752 1.05 127.99 58 74.62
174 76 COURT 422,390 440,716 1.04 97.60 65 63.03
181 76 COURT 453,932 500,135 1.10 105.95 69 73.12
182 76 COURT 588,644 651,234 1.11 132.68 71 94.16
183 76 COURT 544,463 591,976 1.09 130.42 65 84.66
184 76 COURT 463,809 499,096 1.08 110.17 65 71.38
840 E. HWY 80 79601 EMERALD INN EXPO (FMR WHIT 76 1.44 H

141 103 196,784 251,334 1.28 52.09 52 27.11
142 103 221,411 259,269 1.17 53.56 52 27.66
143 103 214,197 251,550 1.17 56.76 47 26.55
144 103 156,502 190,119 1.22 45.56 44 20.06
151 103 137,011 182,218 1.33 43.41 45 19.66
152 103 163,003 194,245 1.19 46.45 45 20.72
153 103 143,053 186,993 1.31 46.37 43 19.73
154 103 77,688 129,963 1.67 35.04 39 13.71
161 103 92,020 125,343 1.36 36.98 37 13.52
162 103 116,968 145,540 1.24 36.38 43 15.53
163 103 120,601 157,295 1.30 38.60 43 16.60

EXHIBIT III
61
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 840 E. HWY 80 79601 EMERALD INN EXPO (FMR WHIT 76 1.44 H
164 103 64,978 101,839 1.57 28.41 38 10.75
171 103 64,809 90,118 1.39 27.21 36 9.72
172 103 85,549 106,618 1.25 28.45 40 11.38
173 103 72,828 114,373 1.57 28.88 42 12.07
174 103 54,533 89,294 1.64 26.53 36 9.42
181 103 51,852 80,191 1.55 24.84 35 8.65
182 103 77,069 93,241 1.21 28.26 35 9.95
183 103 98,995 135,894 1.37 30.57 47 14.34
184 103 101,983 163,728 1.61 33.34 52 17.28
1802 E OVERLAND 79601 HOLIDAY EXPRESS 01 1.08 H

141 66 HIEXP 428,259 462,204 1.08 121.50 64 77.81
142 66 HIEXP 467,141 521,994 1.12 129.91 67 86.91
143 66 HIEXP 458,806 501,020 1.09 134.90 61 82.51
144 66 HIEXP 463,287 498,034 .00 G 125.90 65 82.02
151 66 HIEXP 472,523 495,193 1.05 124.95 67 83.37
152 66 HIEXP 499,889 535,391 1.07 133.70 67 89.14
153 66 HIEXP 501,734 523,475 1.04 143.33 60 86.21
154 66 HIEXP 428,023 453,477 1.06 120.32 62 74.68
161 66 HIEXP 371,497 411,960 1.11 124.06 56 69.35
162 66 HIEXP 359,984 403,266 1.12 118.41 57 67.14
163 66 HIEXP 310,854 329,639 1.06 108.34 50 54.29
164 66 HIEXP 357,248 373,189 1.05 99.32 62 61.46
171 66 HIEXP 356,491 385,638 1.08 110.26 59 64.92
172 66 HIEXP 457,824 490,303 1.07 124.93 65 81.64
173 66 HIEXP 409,110 435,506 1.06 127.12 56 71.72
174 66 HIEXP 358,650 378,253 1.05 108.95 57 62.29
181 66 HIEXP 410,314 446,739 1.09 108.53 69 75.21
182 66 HIEXP 463,935 529,051 1.14 130.93 67 88.09
183 66 HIEXP 440,709 467,499 1.06 119.35 65 76.99
184 66 HIEXP 387,835 415,553 1.07 105.83 65 68.44
3525 W LAKE RD 79601 HOLIDAY INN TOWNSVILLE 16 1.08 H

164 112 HOLID 175,556 181,286 1.03 77.92 23 17.59
171 112 HOLID 497,785 543,872 1.09 90.89 59 53.96
172 112 HOLID 625,983 685,875 1.10 97.40 69 67.30
173 112 HOLID 591,331 634,191 1.07 102.93 60 61.55
174 112 HOLID 539,666 584,224 1.08 86.22 66 56.70
181 112 HOLID 635,585 674,983 1.06 91.43 73 66.96
182 112 HOLID 816,720 903,239 1.11 122.85 72 88.62
183 112 HOLID 720,306 772,923 1.07 119.12 63 75.01
184 112 HOLID 643,938 699,864 1.09 100.77 67 67.92
3501 W LAKE RD 79601 LA QUINTA INN #544 79 1.03 H

141 106 LAQUN 328,164 341,970 1.04 68.60 52 35.85
142 106 LAQUN 381,554 398,423 1.04 70.03 59 41.30
143 106 LAQUN 364,230 398,524 1.09 72.93 56 40.87

EXHIBIT III
62
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3501 W LAKE RD 79601 LA QUINTA INN #544 79 1.03 H
144 106 LAQUN 320,853 331,748 1.03 66.53 51 34.02
151 106 LAQUN 320,434 338,040 1.05 64.80 55 35.43
152 106 LAQUN 392,128 401,063 1.02 69.01 60 41.58
153 106 LAQUN 388,076 397,358 1.02 71.40 57 40.75
154 106 LAQUN 276,429 285,246 1.03 60.00 49 29.25
161 106 LAQUN 280,445 292,801 1.04 61.13 50 30.69
162 106 LAQUN 351,359 368,035 1.05 65.78 58 38.15
163 106 LAQUN 391,395 396,577 1.01 73.84 55 40.67
164 106 LAQUN 302,843 311,887 1.03 59.15 54 31.98
171 106 LAQUN 296,186 312,307 1.05 59.56 55 32.74
172 106 LAQUN 385,608 400,854 1.04 68.87 60 41.56
173 106 LAQUN 366,992 382,054 1.04 71.98 54 39.18
174 106 LAQUN 355,914 365,554 1.03 65.39 57 37.49
181 106 LAQUN 343,285 354,021 1.03 58.63 63 37.11
182 106 LAQUN 507,387 517,665 1.02 74.73 72 53.67
183 106 LAQUN 383,248 413,090 1.08 71.13 60 42.36
184 106 LAQUN 339,864 349,405 1.03 65.28 55 35.83
1702 E OVERLAND 79601 MOTEL 6 (FMR KNIGHTS INN/D 85 1.03 H

141 99 DAYS 128,979 135,879 1.05 37.63 41 15.25
142 99 DAYS 159,282 165,890 1.04 40.23 46 18.41
143 99 DAYS 171,625 175,542 1.02 43.45 44 19.27
144 99 DAYS 127,471 132,321 1.04 38.55 38 14.53
151 99 DAYS 78,673 81,033 .00 G 38.34 24 9.09
152 98 X.BUD 78,753 81,643 1.04 33.16 28 9.15
153 98 X.BUD 96,330 99,220 .00 G 32.22 34 11.00
154 98 X.BUD 67,994 73,498 1.08 29.01 28 8.15
161 98 X.BUD 67,105 73,760 1.10 24.27 34 8.36
162 98 X.BUD 86,732 91,724 1.06 27.95 37 10.29
163 98 X.BUD 102,423 110,353 1.08 31.37 39 12.24
164 98 X.BUD 46,700 49,710 1.06 23.44 24 5.51
171 90 MTL 6 85,678 88,718 1.04 37.25 29 10.95
172 90 MTL 6 114,536 121,421 1.06 37.26 40 14.83
173 90 MTL 6 206,265 212,453 .00 G 49.01 52 25.66
174 90 MTL 6 183,668 186,219 1.01 43.49 52 22.49
181 90 MTL 6 187,562 192,812 1.03 38.61 62 23.80
182 90 MTL 6 213,481 214,638 1.00 40.85 64 26.21
183 90 MTL 6 228,719 233,277 1.02 46.81 60 28.17
184 90 MTL 6 206,337 220,061 1.07 43.42 61 26.58
1758 E INTERSTA 79601 QUALITY INN (FMR COMFORT) 95 1.05 H

141 49 QUALY 173,859 179,563 1.03 68.11 60 40.72
142 49 QUALY 203,077 212,873 1.05 81.38 59 47.74
143 49 QUALY 218,527 231,879 1.06 85.73 60 51.44
144 49 QUALY 214,443 219,700 1.03 75.73 64 48.74
151 49 QUALY 226,794 233,572 1.03 76.02 70 52.96
152 49 QUALY 229,929 237,240 1.03 83.48 64 53.20

EXHIBIT III
63
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 1758 E INTERSTA 79601 QUALITY INN (FMR COMFORT) 95 1.05 H
153 49 QUALY 240,206 247,138 1.03 90.98 60 54.82
154 49 QUALY 166,883 171,796 1.03 73.90 52 38.11
161 49 QUALY 154,360 173,416 1.12 73.31 54 39.32
162 49 QUALY 208,551 219,133 1.05 81.33 60 49.14
163 49 QUALY 230,031 235,370 1.02 91.28 57 52.21
164 49 QUALY 193,305 198,516 1.03 74.52 59 44.04
171 49 QUALY 171,392 181,064 1.06 77.09 53 41.06
172 49 QUALY 204,755 213,274 1.04 82.38 58 47.83
173 49 QUALY 203,137 215,483 1.06 89.38 53 47.80
174 49 QUALY 202,662 209,400 1.03 86.80 54 46.45
181 49 QUALY 212,858 234,254 1.10 80.76 66 53.12
182 49 QUALY 263,070 277,604 1.05 90.99 68 62.26
183 49 QUALY 228,123 238,778 1.05 86.50 61 52.97
184 49 QUALY 180,057 185,703 1.03 76.86 54 41.19
1641 E MUSGRAVE 79601 RESIDENCE INN 09 1.49 H

141 117 RESID 689,751 857,858 1.24 112.96 72 81.47
142 117 RESID 741,148 912,915 1.23 131.25 65 85.74
143 117 RESID 743,403 1,002,456 1.35 141.75 66 93.13
144 117 RESID 602,766 793,351 1.32 111.75 66 73.70
151 117 RESID 718,879 893,610 1.24 119.08 71 84.86
152 117 RESID 720,022 961,200 1.34 127.42 71 90.28
153 117 RESID 666,947 887,010 1.33 134.62 61 82.41
154 117 RESID 564,202 745,903 1.32 107.16 65 69.30
161 117 RESID 542,125 698,185 1.29 108.66 61 66.30
162 117 RESID 629,054 869,915 1.38 121.67 67 81.71
163 117 RESID 583,163 881,467 1.51 132.08 62 81.89
164 117 RESID 530,511 805,772 1.52 115.04 65 74.86
171 117 RESID 525,222 761,723 1.45 116.60 62 72.34
172 117 RESID 594,860 898,716 1.51 127.26 66 84.41
173 117 RESID 596,914 894,548 1.50 135.16 61 83.11
174 117 RESID 505,130 707,799 1.40 116.50 56 65.76
181 117 RESID 397,706 575,251 1.45 95.29 57 54.63
182 117 RESID 581,161 906,970 1.56 128.39 66 85.19
183 117 RESID 519,171 984,357 1.90 140.04 65 91.45
184 117 RESID 509,009 921,191 1.81 123.16 69 85.58
250 KILLOUGH CV 79601 SLEEP INN & SUITES 10 1.06 H

141 55 SLEEP 166,547 167,774 1.01 62.71 54 33.89
142 55 SLEEP 241,992 245,381 1.01 72.33 68 49.03
143 55 SLEEP 218,558 240,029 1.10 75.09 63 47.44
144 55 SLEEP 213,481 221,693 1.04 65.09 67 43.81
151 55 SLEEP 226,319 242,728 1.07 68.22 72 49.04
152 55 SLEEP 268,011 274,658 1.03 80.62 68 54.88
153 55 SLEEP 309,689 315,549 1.02 87.87 71 62.36
154 55 SLEEP 228,727 235,550 1.03 73.24 64 46.55
161 55 SLEEP 235,562 238,928 1.01 80.75 60 48.27

EXHIBIT III
64
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 250 KILLOUGH CV 79601 SLEEP INN & SUITES 10 1.06 H
162 55 SLEEP 279,413 294,063 1.05 87.84 67 58.75
163 55 SLEEP 272,112 274,863 1.01 94.89 57 54.32
164 55 SLEEP 236,708 241,282 1.02 80.30 59 47.68
171 55 SLEEP 212,757 222,373 1.05 87.09 52 44.92
172 55 SLEEP 275,692 285,703 1.04 94.62 60 57.08
173 55 SLEEP 248,767 259,372 1.04 96.00 53 51.26
174 55 SLEEP 179,975 189,408 1.05 80.58 46 37.43
181 55 SLEEP 184,486 199,661 1.08 79.88 50 40.34
182 55 SLEEP 282,201 299,357 1.06 89.92 67 59.81
183 55 SLEEP 249,837 259,333 1.04 84.38 61 51.25
184 55 SLEEP 187,150 203,569 1.09 70.65 57 40.23
1525 E STAMFORD 79601 SUPER 8 82 1.04 H

141 94 SUPR8 158,572 159,640 1.01 44.86 42 18.87
142 94 SUPR8 195,679 196,689 1.00 47.97 48 22.99
143 94 SUPR8 182,770 190,081 .00 G 45.57 48 21.98
144 94 SUPR8 170,323 177,136 .00 G 45.57 45 20.48
151 94 SUPR8 197,859 205,773 .00 G 45.91 53 24.32
152 94 SUPR8 194,178 203,562 1.05 44.95 53 23.80
153 94 SUPR8 194,178 200,562 1.03 48.99 47 23.19
154 94 SUPR8 119,851 124,586 1.04 39.93 36 14.41
161 94 SUPR8 211,354 219,808 .00 G 41.38 63 25.98
162 94 SUPR8 149,986 152,836 1.02 41.50 43 17.87
163 94 SUPR8 165,862 166,906 1.01 46.58 41 19.30
164 94 SUPR8 110,784 113,775 1.03 35.55 37 13.16
171 94 SUPR8 95,618 96,973 1.01 37.25 31 11.46
172 94 SUPR8 170,936 171,560 .00 38.68 52 20.06
173 94 SUPR8 149,340 150,497 1.01 38.67 45 17.40
174 94 SUPR8 97,279 113,728 1.17 35.69 37 13.15
181 94 SUPR8 99,625 103,824 1.04 36.66 33 12.27
182 94 SUPR8 131,356 136,099 1.04 39.85 40 15.91
183 94 SUPR8 123,777 126,486 1.02 35.86 41 14.63
184 94 SUPR8 94,935 95,527 1.01 34.65 32 11.05
2141XSCOTTISH R 79601 TOWNEPLACE SUITES 15 1.18 H

154 76 TOWNP 239,605 273,511 1.14 73.92 53 39.12
161 76 TOWNP 258,162 318,269 1.23 83.79 56 46.53
162 76 TOWNP 408,659 503,860 1.23 113.09 64 72.85
163 76 TOWNP 457,237 551,161 1.21 126.94 62 78.83
164 76 TOWNP 361,462 447,620 1.24 105.70 61 64.02
171 76 TOWNP 439,552 509,270 1.16 112.90 66 74.45
172 76 TOWNP 468,233 550,174 .00 G 123.93 64 79.55
173 76 TOWNP 469,563 508,281 1.08 132.67 55 72.69
174 76 TOWNP 419,104 492,447 .00 G 106.56 66 70.43
181 76 TOWNP 445,469 527,843 1.19 111.14 69 77.17
182 76 TOWNP 553,338 646,081 1.17 131.87 71 93.42
183 76 TOWNP 496,270 604,552 1.22 120.15 72 86.46
184 76 TOWNP 401,955 500,155 1.24 106.37 67 71.53

EXHIBIT III
65
E3 YR AVG P
CITY ADDR ZIP S
EST 4 OP ADJ 1 T
---- ---- --- T
AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 1625 STATE HIGH 79601 WHITTEN INN UNIVERSITY (FM 73 1.25 H
141 161 290,569 515,953 1.78 67.89 52 35.61
142 161 363,271 527,246 1.45 71.20 51 35.99
143 161 442,466 602,402 1.36 75.82 54 40.67
144 161 353,424 559,171 1.58 73.52 51 37.75
151 161 330,354 619,060 1.87 70.91 60 42.72
152 161 441,898 594,560 1.35 74.38 55 40.58
153 161 482,037 621,141 1.29 78.02 54 41.93
154 161 350,337 503,377 1.44 69.14 49 33.98
161 161 374,059 511,705 1.37 76.23 46 35.31
162 161 436,320 597,297 1.37 68.62 59 40.77
163 161 423,220 525,695 1.24 71.40 50 35.49
164 161 342,052 451,493 1.32 57.25 53 30.48
171 161 298,499 391,477 1.31 55.74 48 27.02
172 161 426,245 524,934 1.23 61.33 58 35.83
173 161 360,491 452,949 1.26 59.43 51 30.58
174 161 294,907 403,400 1.37 55.48 49 27.23
181 161 385,973 496,877 1.29 56.82 60 34.29
182 161 497,138 595,563 1.20 64.76 63 40.65
183 161 474,104 576,371 1.22 62.92 62 38.91
184 161 344,069 449,747 1.31 55.38 55 30.36
6550 US HIGHWAY 79602 ANTILLEY INN 86 1.20 H

141 52 49,944 83,785 1.68 46.20 39 17.90
142 52 89,220 104,166 1.17 48.65 45 22.01
143 52 72,382 100,072 1.38 46.71 45 20.92
144 52 66,092 71,466 1.08 40.45 37 14.94
151 52 80,267 85,922 1.07 43.30 42 18.36
152 52 89,367 96,732 1.08 47.62 43 20.44
153 52 73,806 76,657 1.04 43.08 37 16.02
154 52 64,128 74,749 1.17 36.08 43 15.62
161 52 79,480 84,548 1.06 38.67 47 18.07
162 52 101,633 134,057 1.32 48.99 58 28.33
163 52 95,376 105,887 1.11 48.30 46 22.13
164 52 82,615 88,015 1.06 33.28 55 18.40
171 52 61,407 70,053 1.14 35.06 43 14.97
172 52 80,413 98,429 1.22 36.82 56 20.80
173 52 76,302 93,452 1.23 38.82 50 19.53
174 52 88,820 105,517 1.19 41.40 53 22.06
181 52 82,249 110,200 1.34 37.44 63 23.55
182 52 93,196 109,262 1.17 37.88 61 23.09
183 52 90,954 114,193 1.26 40.08 60 23.87
184 52 60,689 77,065 1.27 38.39 42 16.11
4951 W STAMFORD 79603 MOTEL 6 #79 72 1.05 H

141 100 MTL 6 253,031 265,462 1.05 49.00 60 29.50

EXHIBIT III
66
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 4951 W STAMFORD 79603 MOTEL 6 #79 72 1.05 H
142 100 MTL 6 297,952 303,892 1.02 53.08 63 33.39
143 100 MTL 6 304,978 309,207 1.01 53.01 63 33.61
144 100 MTL 6 243,986 254,980 1.05 47.51 58 27.72
151 100 MTL 6 262,578 275,425 1.05 47.44 65 30.60
152 100 MTL 6 266,988 275,362 1.03 53.97 56 30.26
153 100 MTL 6 283,765 289,825 1.02 57.29 55 31.50
154 100 MTL 6 234,284 246,560 1.05 45.40 59 26.80
161 100 MTL 6 226,455 234,531 1.04 45.64 57 26.06
162 100 MTL 6 253,886 260,360 1.03 48.96 58 28.61
163 100 MTL 6 227,973 238,927 1.05 48.89 53 25.97
164 100 MTL 6 200,617 211,882 1.06 41.79 55 23.03
171 100 MTL 6 203,455 214,022 1.05 43.79 54 23.78
172 100 MTL 6 207,320 219,094 1.06 45.68 53 24.08
173 100 MTL 6 197,151 212,554 1.08 46.16 50 23.10
174 100 MTL 6 175,178 190,598 1.09 41.96 49 20.72
181 100 MTL 6 181,758 189,836 1.04 41.16 51 21.09
182 100 MTL 6 210,464 227,634 1.08 47.24 53 25.01
183 100 MTL 6 219,715 242,495 1.10 48.86 54 26.36
184 100 MTL 6 180,370 198,804 1.10 41.89 52 21.61
2202 W OVERLAND 79603 TRAVEL INN 14 1.40 H

152 50 109,292 120,748 1.11 35.31 75 26.54
153 50 84,063 112,281 1.34 38.48 63 24.41
154 50 48,676 117,136 2.41 36.94 69 25.46
161 50 40,322 125,608 3.12 42.49 66 27.91
162 50 53,452 117,500 2.20 41.66 62 25.82
163 50 28,069 82,787 2.95 46.77 38 18.00
164 50 51,755 85,252 1.65 42.87 43 18.53
171 50 35,167 112,393 3.19 47.59 52 24.98
172 50 100,108 105,869 1.06 47.37 49 23.27
173 50 82,726 111,579 1.35 48.23 50 24.26
174 50 61,478 97,846 1.59 43.04 49 21.27
181 50 72,300 103,637 1.43 42.96 54 23.03
182 50 82,161 106,923 1.30 44.02 53 23.50
183 50 104,720 141,523 1.35 51.05 60 30.77
184 50 63,010 108,457 1.72 42.97 55 23.58
3165 S DANVILLE 79605 TOWNSVILLE LUXURY SUITES 00 1.25 H

141 50 61,680 77,100 .00 2 49.55 35 17.13
142 50 54,627 68,284 .00 G 39.83 38 15.01
143 50 47,367 59,209 .00 G 43.02 30 12.87
152 49 54,745 57,886 1.06 37.47 35 12.98
153 49 84,750 89,607 1.06 1 42.75 46 19.88
154 49 51,063 67,466 1.32 37.04 40 14.97
161 49 74,985 77,615 1.04 38.63 46 17.60
162 49 80,292 86,992 1.08 36.33 54 19.51
163 49 85,000 106,250 .00 1 41.90 56 23.57

EXHIBIT III
67
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3165 S DANVILLE 79605 TOWNSVILLE LUXURY SUITES 00 1.25 H
164 50 46,338 49,558 1.07 39.44 27 10.77
171 50 60,675 71,339 1.18 42.79 37 15.85
172 50 79,175 114,576 1.45 43.62 58 25.18
173 50 82,320 103,025 1.25 47.03 48 22.40
174 50 65,046 99,542 1.53 40.60 53 21.64
181 50 75,896 95,145 1.25 37.25 57 21.14
182 50 76,799 101,774 1.33 40.06 56 22.37
183 50 77,217 139,464 1.81 49.79 61 30.32
184 50 73,640 101,733 1.38 40.53 55 22.12
3153 S 1ST ST 79605 BEST BUDGET INN 66 1.11 H

141 54 52,009 63,358 1.22 32.27 40 13.04
142 54 59,024 69,993 1.19 34.21 42 14.24
143 54 58,497 78,459 1.34 34.25 46 15.79
144 54 47,180 57,962 1.23 31.55 37 11.67
151 54 44,662 49,794 1.12 28.50 36 10.25
152 54 41,249 66,069 1.60 28.42 47 13.45
153 54 42,254 55,114 1.30 30.98 36 11.09
154 54 30,414 39,149 1.29 23.60 33 7.88
161 54 37,100 47,641 1.28 24.28 40 9.80
162 54 46,831 59,158 1.26 24.49 49 12.04
163 54 51,117 61,811 1.21 26.55 47 12.44
164 54 51,180 56,204 1.10 23.70 48 11.31
171 54 37,206 39,306 1.06 23.86 34 8.09
172 54 46,996 48,578 1.03 25.43 39 9.89
173 54 48,159 53,096 1.10 29.81 36 10.69
174 54 40,877 45,312 1.11 24.43 37 9.12
181 54 48,575 50,009 1.03 23.49 44 10.29
182 54 59,564 63,806 1.07 26.85 48 12.98
183 54 50,726 64,140 1.26 26.48 49 12.91
184 54 37,032 49,573 1.34 25.36 39 9.98
3225 S DANVILLE 79605 COMFORT SUITES (FMR SLEEP 10 1.09 H

141 74 SLEEP 182,259 193,713 1.06 53.29 55 29.09
142 74 SLEEP 279,815 315,012 1.13 66.92 70 46.78
143 74 SLEEP 267,393 312,841 1.17 72.27 64 45.95
144 74 SLEEP 258,131 272,681 1.06 62.27 64 40.05
151 74 SLEEP 202,128 228,141 1.13 57.69 59 34.26
152 74 SLEEP 210,717 231,319 1.10 60.55 57 34.35
153 74 SLEEP 240,029 315,549 1.32 61.64 75 46.35
154 74 SLEEP 257,757 265,011 1.03 59.17 66 38.93
161 74 COMFS 238,027 251,303 1.06 63.47 59 37.73
162 74 COMFS 276,461 295,094 1.07 68.87 64 43.82
163 74 COMFS 280,813 291,774 1.04 76.18 56 42.86
164 74 COMFS 242,972 260,463 1.07 64.25 60 38.26
171 74 COMFS 218,242 248,272 1.14 66.89 56 37.28
172 74 COMFS 305,603 331,804 1.09 73.56 67 49.27

EXHIBIT III
68
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3225 S DANVILLE 79605 COMFORT SUITES (FMR SLEEP 10 1.09 H
173 74 COMFS 337,772 373,269 1.11 83.61 66 54.83
174 74 COMFS 274,686 316,507 1.15 75.49 62 46.49
181 74 COMFS 282,404 306,708 1.09 71.70 64 46.05
182 74 COMFS 363,872 383,810 1.05 79.68 72 57.00
183 74 COMFS 323,232 389,602 1.21 86.49 66 57.23
184 74 COMFS 336,156 359,394 1.07 79.27 67 52.79
5403 S 1ST ST 79605 LOGOS HOTEL 60 1.13 H

141 60 59,614 86,061 1.44 34.38 46 15.94
142 60 60,882 90,153 1.48 33.23 50 16.51
143 60 60,149 88,811 1.48 35.89 45 16.09
144 60 47,657 68,369 1.44 33.00 38 12.39
151 50 41,539 68,067 1.64 33.66 45 15.13
171 50 67,499 76,317 1.13 37.36 45 16.96
172 50 80,470 89,462 1.11 38.36 51 19.66
173 50 51,317 54,773 1.07 35.47 34 11.91
174 50 51,858 58,340 .00 G 35.15 36 12.68
181 50 58,294 62,697 1.08 35.79 39 13.93
182 50 97,603 109,803 .00 G 41.51 58 24.13
183 50 73,656 82,720 1.12 38.46 47 17.98
184 50 61,843 74,061 1.20 35.10 46 16.10
5695 S 1ST ST 79605 ROYAL INN OF TOWNSVILLE 76 2.15 H

141 140 88,552 173,685 1.96 25.83 53 13.78
142 140 110,394 174,416 1.58 26.76 51 13.69
143 140 134,291 227,753 1.70 29.76 59 17.68
144 140 94,804 184,193 1.94 27.76 52 14.30
151 140 138,640 234,644 1.69 28.32 66 18.62
152 140 117,571 204,051 1.74 28.52 56 16.02
153 140 115,093 224,680 1.95 31.08 56 17.44
154 140 57,928 164,563 2.84 26.19 49 12.78
161 140 69,928 149,588 2.14 27.88 43 11.87
162 140 66,274 159,191 2.40 26.91 46 12.50
163 140 68,226 164,582 2.41 28.75 44 12.78
164 140 69,956 162,314 2.32 26.35 48 12.60
171 140 76,540 162,405 2.12 29.26 44 12.89
172 140 77,742 157,224 2.02 30.45 41 12.34
173 140 84,369 155,417 1.84 34.45 35 12.07
174 140 66,426 150,537 2.27 30.45 38 11.69
181 140 59,242 145,497 2.46 28.81 40 11.55
182 140 82,924 158,066 1.91 32.16 39 12.41
183 140 89,544 187,930 2.10 36.47 40 14.59
184 140 65,165 176,773 2.71 32.36 42 13.72
4397 SAYLES BLV 79605 SUPER 8 08 1.01 H

141 54 SUPR8 101,157 108,539 1.07 53.14 42 22.33
142 54 SUPR8 151,069 166,500 1.10 58.95 57 33.88

EXHIBIT III
69
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 4397 SAYLES BLV 79605 SUPER 8 08 1.01 H
143 54 SUPR8 157,748 167,757 1.06 61.07 55 33.77
144 54 SUPR8 140,759 142,870 .00 G 57.07 50 28.76
151 54 SUPR8 132,810 136,695 1.03 51.07 55 28.13
152 54 SUPR8 184,552 190,287 1.03 60.53 64 38.72
153 54 SUPR8 195,343 201,463 1.03 65.97 61 40.55
154 54 SUPR8 119,291 120,199 1.01 48.15 50 24.19
161 54 SUPR8 135,615 137,984 1.02 53.09 53 28.39
162 54 SUPR8 161,981 167,381 1.03 56.21 61 34.06
163 54 SUPR8 166,441 168,461 1.01 63.10 54 33.91
164 54 SUPR8 142,329 144,464 .00 G 44.34 66 29.08
171 54 SUPR8 138,015 139,943 .00 50.90 57 28.79
172 54 SUPR8 187,267 190,076 .00 G 61.80 63 38.68
173 54 SUPR8 175,515 177,782 1.01 63.44 56 35.79
174 54 SUPR8 86,891 87,618 1.01 52.50 34 17.64
181 54 SUPR8 85,000 86,275 .00 1 51.17 35 17.75
182 54 SUPR8 177,971 178,406 1.00 60.26 60 36.31
183 54 SUPR8 175,670 178,313 1.02 61.07 59 35.89
184 54 SUPR8 122,095 126,055 1.03 51.43 49 25.37
4266 OIL BELT L 79605 WOODSPRING SUITES 10 2.00 H

141 116 VALUP 83,739 276,746 3.31 40.79 65 26.51
142 116 VALUP 106,064 295,032 2.78 42.77 65 27.95
143 116 VALUP 121,831 345,295 2.83 47.27 68 32.36
144 116 VALUP 99,170 332,219 3.35 45.27 69 31.13
151 116 VALUP 126,140 342,421 2.72 46.18 71 32.80
152 116 VALUP 148,553 321,565 2.17 47.70 64 30.46
153 116 VALUP 164,611 363,584 2.21 52.53 65 34.07
154 116 VALUP 118,712 274,435 2.31 42.75 60 25.72
161 116 VALUP 171,927 331,424 1.93 48.55 65 31.75
162 116 VALUP 184,419 356,407 1.93 54.97 61 33.76
163 116 VALUP 192,189 326,014 1.70 57.80 53 30.55
164 116 VALUP 104,530 258,008 2.47 46.58 52 24.18
171 116 VALUP 167,453 300,473 1.79 47.10 61 28.78
172 116 WOODS 149,496 336,244 2.25 50.89 63 31.85
173 116 WOODS 158,258 307,207 1.94 56.15 51 28.79
174 116 WOODS 102,681 246,435 2.40 48.76 47 23.09
181 116 WOODS 131,679 284,115 2.16 46.37 59 27.21
182 116 WOODS 178,555 324,493 1.82 52.74 58 30.74
183 116 WOODS 160,584 379,441 2.36 59.44 60 35.55
184 116 WOODS 130,512 372,038 2.85 56.52 62 34.86
3050 CATCLAW DR 79606 CANDLEWOOD SUITES 11 1.40 H

141 72 CANDL 224,534 301,821 1.34 69.65 67 46.58
142 72 CANDL 294,161 358,876 1.22 80.88 68 54.77
143 72 CANDL 356,146 498,604 .00 G 80.87 93 75.27
144 72 CANDL 324,893 326,615 1.00 70.87 70 49.31
151 72 CANDL 221,381 355,843 1.61 76.06 72 54.91

EXHIBIT III
70
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3050 CATCLAW DR 79606 CANDLEWOOD SUITES 11 1.40 H
152 72 CANDL 242,714 397,185 1.64 92.62 65 60.62
153 72 CANDL 171,644 369,224 2.15 94.85 59 55.74
154 72 CANDL 40,146 223,307 5.56 71.46 47 33.71
161 72 CANDL 208,355 314,281 1.51 78.78 62 48.50
162 72 CANDL 278,571 401,951 1.44 88.21 70 61.35
163 72 CANDL 259,034 351,373 1.36 91.50 58 53.05
164 72 CANDL 212,220 290,050 1.37 76.71 57 43.79
171 72 CANDL 212,387 290,810 1.37 75.17 60 44.88
172 72 CANDL 255,601 348,617 1.36 83.84 63 53.21
173 72 CANDL 227,992 321,355 1.41 88.08 55 48.51
174 72 CANDL 192,352 254,406 1.32 77.02 50 38.41
181 72 CANDL 203,841 332,850 1.63 74.97 69 51.37
182 72 CANDL 260,844 367,613 1.41 82.54 68 56.11
183 72 CANDL 250,091 386,510 1.55 89.19 65 58.35
184 72 CANDL 232,853 366,093 1.57 81.79 68 55.27
6350 DIRECTORS 79606 COMFORT INN 09 1.07 H

141 73 COMFO 209,418 237,783 1.14 69.65 52 36.19
142 73 COMFO 296,158 325,644 1.10 75.11 65 49.02
143 73 COMFO 321,067 358,264 1.12 83.71 64 53.34
144 73 COMFO 290,973 310,772 1.07 75.51 61 46.27
151 73 COMFO 317,713 337,703 1.06 77.02 67 51.40
152 73 COMFO 334,783 354,747 1.06 81.98 65 53.40
153 73 COMFO 302,551 339,983 1.12 85.65 59 50.62
154 73 COMFO 224,495 236,708 1.05 63.02 56 35.25
161 73 COMFO 176,423 182,301 1.03 60.11 46 27.75
162 73 COMFO 265,426 277,331 1.05 67.86 62 41.75
163 73 COMFO 275,011 305,708 1.11 78.08 58 45.52
164 73 COMFO 220,112 236,951 1.08 63.79 55 35.28
171 73 COMFO 231,229 246,248 1.06 70.82 53 37.48
172 73 COMFO 265,705 276,892 1.04 70.45 59 41.68
173 73 COMFO 226,410 232,659 1.03 65.87 53 34.64
174 73 COMFO 203,300 218,174 1.07 62.05 52 32.49
181 73 COMFO 199,244 211,211 1.06 58.99 54 32.15
182 73 COMFO 281,673 314,097 1.12 73.40 64 47.28
183 73 COMFO 226,411 286,573 1.27 69.73 61 42.67
184 73 COMFO 209,752 241,681 1.15 61.94 58 35.99
3450 S CLACK ST 79606 COUNTRY HEARTH INN & SUITE 83 1.35 H

141 145 195,960 255,090 1.30 44.08 44 19.55
142 145 284,829 375,024 1.32 47.67 60 28.42
143 145 297,828 381,292 1.28 50.51 57 28.58
144 140 240,339 321,956 1.34 46.51 54 25.00
151 140 CTRYH 266,398 357,740 1.34 46.42 61 28.39
152 140 CTRYH 296,880 400,866 1.35 52.99 59 31.47
153 140 CTRYH 318,502 427,791 1.34 57.22 58 33.21
154 140 CTRYH 239,196 350,626 1.47 45.33 60 27.22

EXHIBIT III
71
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3450 S CLACK ST 79606 COUNTRY HEARTH INN & SUITE 83 1.35 H
161 140 CTRYH 187,628 295,872 1.58 46.34 51 23.48
162 140 CTRYH 236,769 297,558 1.26 42.20 55 23.36
163 140 CTRYH 227,228 306,061 1.35 45.12 53 23.76
164 140 CTRYH 147,756 215,499 1.46 34.37 49 16.73
171 140 CTRYH 188,533 328,509 1.74 40.26 65 26.07
172 140 CTRYH 226,938 362,294 1.60 43.82 65 28.44
173 140 CTRYH 225,097 355,680 1.58 47.26 58 27.61
174 140 CTRYH 172,052 246,955 1.44 38.51 50 19.17
181 140 CTRYH 217,779 282,717 1.30 39.63 57 22.44
182 140 CTRYH 300,146 374,828 1.25 46.27 64 29.42
183 140 CTRYH 252,698 416,963 1.65 50.03 65 32.37
184 140 CTRYH 161,550 316,150 1.96 38.44 64 24.55
4350 RIDGEMONT 79606 COURTYARD BY MARRIOTT 96 1.13 H

141 99 COURT 571,758 652,310 1.14 110.91 66 73.21
142 99 COURT 701,278 760,572 1.09 125.64 67 84.42
143 99 COURT 682,105 777,376 1.14 133.42 64 85.35
144 99 COURT 616,616 670,707 1.09 113.42 65 73.64
151 99 COURT 629,073 712,677 1.13 117.73 68 79.99
152 99 COURT 719,234 799,915 1.11 133.78 66 88.79
153 99 COURT 675,070 734,205 1.09 136.88 59 80.61
154 99 COURT 495,317 573,677 1.16 109.04 58 62.99
161 99 COURT 436,096 510,314 1.17 104.78 55 57.27
162 99 COURT 549,190 640,444 1.17 114.23 62 71.09
163 99 COURT 544,288 601,543 1.11 121.82 54 66.05
164 99 COURT 385,845 449,865 1.17 95.16 52 49.39
171 99 COURT 484,209 546,021 1.13 100.75 61 61.28
172 99 COURT 511,981 603,342 1.18 107.50 62 66.97
173 99 COURT 543,322 600,323 1.11 118.47 56 65.91
174 99 COURT 450,155 496,728 1.10 102.52 53 54.54
181 99 COURT 496,554 539,541 1.09 99.18 61 60.55
182 99 COURT 612,078 697,052 1.14 114.52 68 77.37
183 99 COURT 552,421 637,865 1.15 108.16 65 70.03
184 99 COURT 550,428 643,699 1.17 105.29 67 70.67
3950 RIDGEMONT 79606 DAYS INN TOWNSVILLE (FMR B 84 1.11 H

141 61 BWEST 195,176 249,893 1.28 74.78 61 45.52
142 61 BWEST 221,905 266,012 1.20 79.66 60 47.92
143 61 BWEST 203,663 231,590 1.14 76.31 54 41.27
144 61 BWEST 200,299 274,065 1.37 76.31 64 48.84
151 61 BWEST 177,097 260,346 1.47 73.96 64 47.42
152 61 BWEST 285,860 317,305 .00 G 80.96 71 57.16
153 61 BWEST 334,672 356,911 1.07 96.53 66 63.60
154 61 BWEST 230,264 264,140 1.15 81.15 58 47.07
161 61 BWEST 212,604 217,198 1.02 80.65 49 39.56
162 61 BWEST 252,554 325,058 1.29 86.95 67 58.56
163 61 BWEST 253,355 334,267 1.32 99.62 60 59.56

EXHIBIT III
72
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3950 RIDGEMONT 79606 DAYS INN TOWNSVILLE (FMR B 84 1.11 H
164 61 DAYS 182,635 281,410 1.54 82.68 61 50.14
171 61 DAYS 182,267 247,557 1.36 90.21 50 45.09
172 61 DAYS 218,724 298,664 1.37 92.55 58 53.80
173 61 DAYS 215,534 246,036 1.14 93.60 47 43.84
174 61 DAYS 201,678 223,924 1.11 77.01 52 39.90
181 61 DAYS 192,582 215,445 1.12 67.36 58 39.24
182 61 DAYS 247,053 269,656 1.09 72.73 67 48.58
183 61 DAYS 254,465 269,262 1.06 74.72 64 47.98
184 61 DAYS 216,681 236,027 1.09 65.12 65 42.06
3902 TURNER PLZ 79606 FAIRFIELD INN & SUITES 95 1.10 H

141 71 FAIRF 258,986 303,774 1.17 75.82 63 47.54
142 71 FAIRF 347,361 396,726 1.14 90.37 68 61.40
143 71 FAIRF 356,507 417,630 1.17 95.55 67 63.94
144 71 FAIRF 357,849 392,820 1.10 85.55 70 60.14
151 71 FAIRF 366,164 449,566 1.23 91.69 77 70.35
152 71 FAIRF 406,974 447,405 1.10 98.11 71 69.25
153 71 FAIRF 347,912 387,059 1.11 99.74 59 59.26
154 71 FAIRF 226,091 277,172 1.23 74.53 57 42.43
161 71 FAIRF 239,048 279,318 1.17 79.97 55 43.71
162 71 FAIRF 339,899 381,730 1.12 88.97 66 59.08
163 71 FAIRF 361,351 401,006 1.11 102.77 60 61.39
164 71 FAIRF 285,640 315,678 1.11 82.69 58 48.33
171 71 FAIRF 335,888 372,411 1.11 91.80 63 58.28
172 71 FAIRF 401,451 466,256 1.16 108.19 67 72.16
173 71 FAIRF 375,765 420,356 1.12 115.34 56 64.35
174 71 FAIRF 294,830 327,254 1.11 100.99 50 50.10
181 71 FAIRF 323,949 334,746 1.03 90.36 58 52.39
182 71 FAIRF 444,869 477,321 1.07 114.25 65 73.88
183 71 FAIRF 388,559 408,188 1.05 104.85 60 62.49
184 71 FAIRF 340,327 417,312 1.23 95.92 67 63.89
3917 RIDGEMONT 79606 HAMPTON INN 95 1.09 H

141 63 HAMPT 373,263 397,911 1.07 101.56 69 70.18
142 63 HAMPT 445,421 486,392 1.09 123.55 69 84.84
143 63 HAMPT 441,800 473,404 1.07 129.06 63 81.68
144 63 HAMPT 427,790 448,247 1.05 107.56 72 77.34
151 63 HAMPT 440,397 480,204 1.09 114.81 74 84.69
152 63 HAMPT 496,255 528,966 1.07 128.55 72 92.27
153 63 HAMPT 478,702 506,259 1.06 137.93 63 87.35
154 63 HAMPT 365,644 395,514 1.08 110.43 62 68.24
161 63 HAMPT 341,403 377,486 1.11 114.15 58 66.58
162 63 HAMPT 448,677 488,824 1.09 126.40 67 85.26
163 63 HAMPT 416,097 447,433 1.08 134.14 58 77.20
164 63 HAMPT 387,469 427,250 1.10 113.54 65 73.71
171 63 HAMPT 389,143 436,129 1.12 122.72 63 76.92
172 63 HAMPT 439,053 479,156 1.09 135.20 62 83.58

EXHIBIT III
73
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3917 RIDGEMONT 79606 HAMPTON INN 95 1.09 H
173 63 HAMPT 423,070 442,750 1.05 138.70 55 76.39
174 63 HAMPT 392,881 427,931 1.09 115.99 64 73.83
181 63 HAMPT 359,356 406,038 1.13 107.16 67 71.61
182 63 HAMPT 395,005 436,169 1.10 114.77 66 76.08
183 63 HAMPT 432,384 472,050 1.09 126.53 64 81.44
184 63 HAMPT 402,565 447,416 1.11 115.79 67 77.19
4449 RIDGEMONT 79606 HILTON GARDEN INN - ABILEN 08 1.07 H

141 123 HILTG 779,695 827,946 1.06 123.72 60 74.79
142 123 HILTG 947,263 998,977 1.05 132.28 67 89.25
143 123 HILTG 872,432 946,117 1.08 134.55 62 83.61
144 123 HILTG 817,167 875,352 1.07 122.55 63 77.36
151 123 HILTG 893,537 947,393 1.06 122.96 70 85.58
152 123 HILTG 1,024,407 1,069,900 1.04 139.70 68 95.59
153 123 HILTG 920,798 971,094 1.05 145.50 59 85.82
154 123 HILTG 719,213 763,376 1.06 115.68 58 67.46
161 123 HILTG 778,957 848,662 1.09 127.53 60 76.66
162 123 HILTG 940,273 1,014,346 1.08 135.21 67 90.62
163 123 HILTG 841,908 881,534 1.05 151.77 51 77.90
164 123 HILTG 780,886 851,101 1.09 128.82 58 75.21
171 123 HILTG 921,817 999,485 1.08 141.90 64 90.29
172 123 HILTG 1,042,043 1,143,760 1.10 160.41 64 102.19
173 123 HILTG 933,129 986,747 1.06 160.74 54 87.20
174 123 HILTG 855,912 908,041 1.06 129.33 62 80.24
181 123 HILTG 888,100 976,130 1.10 130.92 67 88.18
182 123 HILTG 1,120,727 1,190,112 1.06 157.39 68 106.33
183 123 HILTG 970,540 1,034,884 1.07 141.74 65 91.45
184 123 HILTG 951,206 992,747 1.04 132.06 66 87.73
3112D S CLACK S 79606 HOLIDAY EXPRESS HOTEL 06 1.06 H

141 66 HIEXP 389,859 425,453 1.09 108.78 66 71.63
142 66 HIEXP 470,135 517,393 1.10 127.86 67 86.15
143 66 HIEXP 439,301 480,793 1.09 129.23 61 79.18
144 66 HIEXP 412,302 449,459 1.09 112.23 66 74.02
151 66 HIEXP 419,094 470,222 1.12 114.78 69 79.16
152 66 HIEXP 461,293 500,908 1.09 122.81 68 83.40
153 66 HIEXP 468,414 501,332 1.07 133.85 62 82.56
154 66 HIEXP 356,554 383,406 1.08 103.25 61 63.14
161 66 HIEXP 328,270 361,145 1.10 108.65 56 60.80
162 66 HIEXP 445,247 480,480 1.08 118.19 68 80.00
163 66 HIEXP 470,203 498,961 1.06 137.15 60 82.17
164 66 HIEXP 555,377 560,658 1.01 122.43 75 92.33
171 66 HIEXP 372,887 386,212 1.04 113.47 57 65.02
172 66 HIEXP 441,494 477,955 1.08 122.71 65 79.58
173 66 HIEXP 401,301 415,987 1.04 120.57 57 68.51
174 66 HIEXP 307,055 316,293 .00 89.96 58 52.09
181 66 HIEXP 327,353 368,801 1.13 93.17 67 62.09

EXHIBIT III
74
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3112D S CLACK S 79606 HOLIDAY EXPRESS HOTEL 06 1.06 H
182 66 HIEXP 408,786 437,238 1.07 109.58 66 72.80
183 66 HIEXP 432,496 461,938 1.07 122.56 62 76.08
184 66 HIEXP 321,141 365,717 1.14 94.71 64 60.23
3018 CATCLAW DR 79606 LA QUINTA INN & SUITES 10 1.07 H

141 72 LAQUN 337,451 361,502 1.07 95.41 58 55.79
142 72 LAQUN 420,762 476,694 1.13 112.70 65 72.76
143 72 LAQUN 467,067 499,762 .00 G 123.66 61 75.45
144 72 LAQUN 376,408 402,757 .00 G 102.66 59 60.80
151 72 LAQUN 356,089 386,087 1.08 99.61 60 59.58
152 72 LAQUN 456,024 492,879 1.08 116.21 65 75.23
153 72 LAQUN 377,606 464,131 1.23 121.21 58 70.07
154 72 LAQUN 324,507 358,054 1.10 92.65 58 54.05
161 72 LAQUN 296,577 333,049 1.12 93.32 55 51.40
162 72 LAQUN 388,800 428,159 1.10 101.54 64 65.35
163 72 LAQUN 411,154 440,030 1.07 110.61 60 66.43
164 72 LAQUN 306,982 322,722 1.05 90.04 54 48.72
171 72 LAQUN 356,413 397,341 1.12 99.95 61 61.32
172 72 LAQUN 427,145 456,935 1.07 107.48 65 69.74
173 72 LAQUN 393,788 408,144 1.04 109.18 56 61.62
174 72 LAQUN 387,494 419,503 1.08 105.37 60 63.33
181 72 LAQUN 414,913 436,872 1.05 104.24 65 67.42
182 72 LAQUN 461,293 497,743 1.08 113.50 67 75.97
183 72 LAQUN 444,988 479,007 1.08 112.53 64 72.31
184 72 LAQUN 422,956 456,501 1.08 105.19 66 68.92
4250 RIDGEMONT 79606 MCM ELEGANTE' SUITES (FMR 85 1.20 H

141 175 X.STE 830,459 1,065,185 1.28 116.63 58 67.63
142 175 X.STE 1,055,044 1,297,349 1.23 125.66 65 81.47
143 175 X.STE 1,042,590 1,233,075 1.18 131.28 58 76.59
144 175 X.STE 981,382 1,145,933 1.17 125.28 57 71.18
151 175 X.STE 931,145 1,113,450 1.20 119.63 59 70.70
152 175 X.STE 983,517 1,196,974 1.22 124.15 61 75.16
153 175 X.STE 999,054 1,158,319 1.16 131.94 55 71.95
154 175 X.STE 894,901 1,039,735 1.16 111.40 58 64.58
161 175 X.STE 743,756 918,997 1.24 111.90 52 58.35
162 175 X.STE 991,032 1,203,841 1.22 123.61 61 75.59
163 175 X.STE 960,205 1,094,488 1.14 126.40 54 67.98
164 175 820,427 957,029 1.17 105.79 56 59.44
171 175 762,012 974,650 1.28 107.12 58 61.88
172 175 965,358 1,184,007 1.23 117.46 63 74.35
173 175 822,822 966,367 1.17 110.94 54 60.02
174 175 871,969 1,023,318 1.17 106.21 60 63.56
181 175 788,834 984,631 1.25 96.68 65 62.52
182 175 989,422 1,242,041 1.25 117.04 67 77.99
183 175 840,827 1,024,632 1.22 107.30 59 63.64
184 175 823,729 1,004,172 1.22 101.13 62 62.37

EXHIBIT III
75
E 3 YR AVG P
---- ---- --- T AVG. % -- ----- -
--- ---- ----- ------- -------- ------ - ----- --- ------
TOWNSVILLE 3010 CATCLAW DR 79606 WINGATE BY WYNDHAM 08 1.10 H

141 66 WINGT 252,143 268,170 1.06 76.36 59 45.15
142 66 WINGT 306,679 332,906 1.09 87.20 64 55.43
143 66 WINGT 299,089 328,934 1.10 91.80 59 54.17
144 66 WINGT 278,627 290,854 1.04 82.50 58 47.90
151 66 WINGT 260,929 278,312 1.07 78.03 60 46.85
152 66 WINGT 275,194 291,421 1.06 82.96 58 48.52
153 66 WINGT 285,914 293,945 1.03 84.86 57 48.41
154 66 WINGT 185,941 203,164 1.09 71.87 47 33.46
161 66 WINGT 187,110 207,394 1.11 77.69 45 34.91
162 66 WINGT 250,709 265,159 1.06 76.47 58 44.15
163 66 WINGT 262,258 271,850 1.04 83.11 54 44.77
164 66 WINGT 189,627 211,475 1.12 65.19 53 34.83
171 66 WINGT 202,865 220,633 1.09 70.44 53 37.14
172 66 WINGT 215,738 252,987 1.17 74.24 57 42.12
173 66 WINGT 234,661 254,633 1.09 82.39 51 41.94
174 66 WINGT 192,160 216,701 1.13 69.44 51 35.69
181 66 WINGT 181,367 198,348 1.09 62.52 53 33.39
182 66 WINGT 224,015 257,287 1.15 76.40 56 42.84
183 66 WINGT 141,196 163,207 1.16 59.81 45 26.88
184 66 WINGT 120,000 132,000 .00 1 52.32 42 21.74
ENDNOTES:
---------
1. Factor used to adjust taxable to gross revenues. Area factor used if property data not available. Taxable equals 89% of gross
Statewide. 2. A number or a 'Y' indicates quarter's revenues were estimated. A ‘G’ indicates the Taxable Revenues were reported but
the Gross Revenues were estimated. 3. Estimated Average Daily Rate (e.g. 60-85% of 'rack single'); 4. Occupancy derived from
calculated Room-nights sold (gross room revenues divided by Average Daily Rate), divided by Room-nights available. 5. Total
REVenues Per Available Room per day, or 'REVPAR'; Prepared from State Comptroller, chain directories and private records. Includes
all quarterly reports exceeding $35,000 (otherwise omitted).

EXHIBIT IV
76
LODGING MARKET: TEXAS HOTELS EXCLUDING LUXURY SEG AND HIGH PRICE INDEPENDENTS
ALSO EX AUSTIN/DALLAS/FORT WORTH/HOUSTON/SAN ANTONIO/MIDLAND/ODESSA METROS
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
EMBASSY 7 1.2 .9 316 1.1 46,460 1.9 73.0 147.12 107.42
HOMEWOOD 14 1.3 1.0 332 1.1 41,367 1.7 70.5 124.45 87.79
RESIDENCE 16 1.6 1.2 406 1.4 48,656 2.0 69.3 119.87 83.11
STAYBRIDG 13 1.2 .9 302 1.0 32,083 1.3 70.1 106.34 74.50
OTH SUITE 1 .3 .2 61 .2 6,942 .3 63.4 114.56 72.59
TOT SUITES 51 5.5 4.1 1,416 4.7 175,508 7.1 70.3 123.91 87.08
4 POINTS 1 .1 .1 29 .1 2,737 .1 63.4 93.84 59.51

ALOFT 3 .3 .2 65 .2 7,307 .3 66.3 112.12 74.39
COURTYARD 25 2.5 1.9 616 2.1 69,517 2.8 67.0 112.93 75.71
DOUBLTREE 1 .2 .1 55 .2 6,994 .3 75.2 127.49 95.81
HILT GARD 19 2.2 1.7 562 1.9 72,410 2.9 68.4 128.93 88.25
HOLID INN 13 2.1 1.6 498 1.7 50,175 2.0 65.3 100.71 65.73
HYATT PLC 4 .5 .3 115 .4 13,763 .6 69.1 119.90 82.87
INDIGO 2 .2 .2 67 .2 11,263 .5 79.9 168.01 134.17
RADIS HTL 2 .4 .3 100 .3 11,529 .5 72.8 114.76 83.56
WYNDHAM 2 .4 .3 90 .3 8,536 .3 65.2 95.14 62.03
OTHER MUP 1 .1 .1 12 .0 506 .0 29.8 42.58 12.69
TOT MID/UPS 73 9.0 6.7 2,209 7.4 254,738 10.4 67.2 115.34 77.55
CANDLWOOD 26 2.1 1.5 518 1.7 51,267 2.1 69.0 99.03 68.30
COMFO STE 40 2.7 2.0 632 2.1 57,482 2.3 63.9 90.95 58.11
HAWTHORN 9 .9 .7 217 .7 18,095 .7 66.7 83.39 55.64
HOME2STES 9 .9 .7 223 .7 26,968 1.1 69.8 120.95 84.38
QUAL STES 3 .1 .1 32 .1 1,540 .1 60.9 48.77 29.72
SPRNGHILL 7 .7 .5 186 .6 20,087 .8 71.7 107.81 77.29
TOWNPLACE 16 1.4 1.0 362 1.2 40,622 1.7 71.2 112.16 79.87
OTHER MIN 3 .4 .3 78 .3 5,836 .2 59.9 74.52 44.67
TOT MIN STE 113 9.1 6.8 2,248 7.5 221,897 9.0 67.4 98.71 66.52
BEST WEST 128 7.4 5.6 1,756 5.9 165,274 6.7 64.7 94.11 60.94
CNTRY INN 10 .8 .6 185 .6 14,969 .6 64.9 80.96 52.51
COMFO INN 31 2.0 1.5 469 1.6 40,491 1.6 64.9 86.39 56.06
DRURY INN 1 .2 .1 42 .1 5,164 .2 70.7 122.71 86.79
FAIRFIELD 34 2.7 2.0 655 2.2 68,542 2.8 66.8 104.66 69.92
HAMPTON 84 6.5 4.9 1,572 5.3 179,115 7.3 66.3 113.92 75.49
HOLID EXP 126 9.5 7.1 2,286 7.6 247,696 10.1 65.8 108.36 71.28
LA QUINTA 105 8.8 6.6 2,041 6.8 177,246 7.2 63.3 86.86 55.03
SLEEP INN 18 1.1 .8 260 .9 21,170 .9 64.6 81.41 52.58
TRU 2 .1 .1 12 .0 768 .0 31.5 64.80 20.42
WINGATE 7 .6 .4 122 .4 9,883 .4 57.6 80.98 46.63
TOT LTD SVE 546 39.7 29.7 9,399 31.4 930,318 37.8 64.9 98.98 64.25
EXT AMERI 7 .6 .5 171 .6 9,772 .4 72.6 57.03 41.38

INTOWN ST 2 .3 .2 68 .2 2,779 .1 68.1 40.94 27.89
MAINSTAY 3 .2 .1 43 .1 3,229 .1 68.0 74.77 50.84
MY PLACE 2 .1 .1 31 .1 2,164 .1 66.4 70.83 47.06
STUDIO 6 18 1.2 .9 272 .9 13,488 .5 63.1 49.54 31.26
WOODSPRNG 17 2.0 1.5 467 1.6 20,173 .8 64.2 43.20 27.75

EXHIBIT IV
77
LODGING MARKET: TEXAS HOTELS EXCLUDING LUXURY SEG AND HIGH PRICE INDEPENDENTS
ALSO EX AUSTIN/DALLAS/FORT WORTH/HOUSTON/SAN ANTONIO/MIDLAND/ODESSA METROS
# * EST. $ EST.
----- --- ---- ---- ------ ---- -------- ---- ---- ----- ----
CHAINS
OTHER EXT 3 .2 .1 45 .2 2,450 .1 71.1 54.23 38.57
TOT EXT STA 52 4.6 3.4 1,097 3.7 54,055 2.2 65.8 49.26 32.42
BAYMONT 23 1.6 1.2 340 1.1 22,590 .9 58.2 66.34 38.61

BST VALUE 54 3.3 2.5 665 2.2 28,181 1.1 55.2 42.40 23.42
CLARION 2 .2 .2 43 .1 2,578 .1 47.3 60.01 28.37
DAYS INN 75 4.4 3.3 940 3.1 55,073 2.2 58.0 58.57 33.96
ECONOLODG 27 1.4 1.1 278 .9 13,871 .6 52.8 49.93 26.34
HO JO 4 .3 .2 66 .2 3,443 .1 56.6 52.21 29.57
MICROTEL 13 .9 .7 221 .7 19,780 .8 68.2 89.62 61.17
MOTEL 6 74 5.7 4.3 1,287 4.3 62,842 2.6 61.3 48.84 29.96
QUALITY 50 3.4 2.5 763 2.5 55,531 2.3 62.2 72.81 45.28
RAMADA 9 1.0 .7 222 .7 16,056 .7 63.4 72.47 45.92
RED ROOF 18 1.6 1.2 343 1.1 19,164 .8 59.9 55.86 33.44
RODEWAY 15 1.0 .7 167 .6 7,627 .3 48.1 45.67 21.95
SUPER 8 71 4.2 3.1 896 3.0 49,531 2.0 58.5 55.29 32.37
SURE STAY 3 .2 .1 32 .1 1,544 .1 57.9 48.39 28.02
TRAVELODG 8 .4 .3 71 .2 3,133 .1 50.3 44.18 22.20
TRYP 1 .2 .1 19 .1 1,217 .0 31.2 64.40 20.09
OTHER BUD 45 2.4 1.8 473 1.6 22,143 .9 54.8 46.84 25.65
TOT BUDGET 492 32.1 24.0 6,824 22.8 384,305 15.6 58.3 56.32 32.81
TOT CHAINS 1,327 100.0 74.8 23,194 77.5 2,020,820 82.1 63.6 87.13 55.37
INDEPENDENTS
$100+ ADR 87 3.8 2.8 843 2.8 126,193 5.1 61.2 149.69 91.65
$60-99ADR 142 7.5 5.6 1,591 5.3 134,941 5.5 58.0 84.81 49.21
LT $60ADR 458 22.3 16.7 4,310 14.4 178,720 7.3 52.9 41.47 21.94
TOT IND HTL 687 33.6 25.2 6,744 22.5 439,853 17.9 55.0 65.22 35.87
TOT INDEP 687 33.6 25.2 6,744 22.5 439,853 17.9 55.0 65.22 35.87
TOT MARKET 2,014 133.6 100.0 29,938 100.0 2,460,673 100 61.4 82.19 50.47

EXHIBIT V
A Study of the Effect of Hotel Size

on Performance in the Texas Hotel Industry
The Case for Downsizing New Hotels
By Douglas W. Sutton and Bruce H. Walker
Source Strategies has long contended that the number of rooms a developer offers in a new property is one of the key
factors in determining a venture's relative success or failure. It is every bit as important to size a hotel project properly as
it is to select the appropriate brand, and to develop in a suitable market and location. We have previously conducted
extensive studies of the lodging market that support our hotel sizing contention, and we have taken this opportunity to re-
examine the issue using our extensive database of hotel and motel performance for the State of Texas.
Before delving into the numbers that define the role of room count in a hotel's performance, we should first highlight the
basic industry theory of 'right-sizing' a property. The premise offered by many inexperienced developers is "If I can make
a profit constructing a 50 room hotel in a given market, it would be twice as profitable to develop 100 rooms." In
virtually all cases nothing could be farther from the truth. At some point adding rooms to a project reaches a point of
diminishing returns, and the investment in the additional rooms cannot be economically justified.
To illustrate this point, mentally divide our hypothetical 100 room project into two 50 room hotels. The initial 50 rooms
may perform very well, with occupancies over 70% and a very strong rate structure. However, the second 50 rooms are
only utilized when there is overflow from the first hotel because its rooms are 100% occupied. Effectively, the second 50
rooms may only attain an occupancy of 30% or less. This low level of occupancy may prompt the general manager to
lower rates to bolster occupancy, but this is a losing battle. Ultimately, overbuilding causes REVPAR erosion in the
property, and in the market as a whole.
Today's developers and lenders would not seriously consider involvement in a 50 room project operating at this low level,
but often times they accomplish the same end by pushing for more rooms in a project than the market can effectively
support. If we now mentally put these two 50 room properties back together (one operating at 70%, the other at 30%
occupancy), what we end up with is an oversized 100 room hotel that is running a mediocre 50% occupancy.
Over-sizing a hotel makes it difficult, if not impossible, to be competitive in a marketplace. There are a finite number of
room-nights sold to be divided among existing hotels in the market, and developing a more conservatively sized property
helps insure that a profitable level of those room-nights can be captured. Building a hotel is not the 'Field of Dreams'.... If
you build it - they won't come.... With the exception of destination resorts and some unique convention hotels, people do
not go someplace because there is a hotel. Rather, they stay in a hotel because they want to be near someplace.
Builders who construct too many rooms usually put themselves in unenviable financial situations. Many hotels which we
see put up for sale were developed with far too many rooms. The owners, having had difficulty getting a return on their

EXHIBIT V
investment, are often trying to get out from under a bad investment. There are even drastic cases of properties bulldozing
entire wings to provide additional parking, because those extra rooms are a financial burden, remaining unsold the vast
majority of the time.
Now that we've outlined the basic economic benefits of 'building small', let's look into hotel performance numbers and
see if they support this development principle. We analyzed two separate hotel samplings: First we will look at Comfort
Inns across Texas as a selected brand sampling. Then we will look at all branded hotels built during a given period of
time for a more diverse sampling.
COMFORT INN - ANALYSIS OF SIZING AND ITS IMPACT ON PERFORMANCE
In our initial analysis, we selected a sampling of Texas Comfort Inn branded properties ranging in size from 36 to 75
rooms; they are all 'Limited Service' hotels. We excluded those properties located in exclusive, higher priced markets,
since they would naturally support larger room counts while maintaining strong performance levels and would distort the
findings. The resulting sample included 55 Comfort Inn hotels located across Texas.
The following chart of performance statistics from the latest year on file (12 months ending September 30, 1999) clearly
illustrates the consistent curve, showing marked declines in performance as room count increases. This decline was
exhibited in all three measures shown, Occupancy, Average Daily Rate, and REVPAR:
SIZING ANALYSIS
12 Months Ending September 30, 1999
Rooms Occupancy Rate REVPAR
36-40 66.9% $55.25 $36.95
41-45 65.3% $57.34 $37.45
46-50 66.5% $57.38 $38.17
51-55 62.8% $56.02 $35.20
56-60 61.8% $54.26 $33.55
61-65 56.6% $55.33 $31.33
66-70 44.6% $45.71 $20.41
71-75 43.8% $44.20 $19.38
Combined: 52 63.2% $55.46 $35.03
Looking only at occupancy, the following graph gives a clear depiction of the notable negative impact of larger room
counts on a hotel's ability to maintain an acceptable level of room-nights sold. Properties with lower room counts were
clearly able to sustain a higher level of occupancy. Average occupancy ranged from 66.9% for properties of 36-40 rooms,
downward to a much lower 43.8% average occupancy for properties in the 71-75 room size bracket.

EXHIBIT V
Comfort Inn Sizing Study

Occupany vs Roomcount (1999 Data)
70%
65%
60%
Occupancy %
55%
50%
45%
40%
36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75
Roomcount
When looking at REVPAR, the following graph follows a very similar performance curve, ranging from an average
REVPAR of $36.95 for properties of 36-80 units, downward to a mediocre $19.38 average REVPAR for properties in the
71-35 unit size bracket. Note that the downward slide in both graphs did not begin until room counts exceeded 35 units.
Prior to that, a mild upward trend is experienced. This appears to indicate that, on average, 50 rooms is the 'optimum' size
for a Comfort Inn in Texas markets (excluding high priced areas). Of course, this is an average number for this type of
market. Each project must be examined on an individual basis to determine the proper size to develop within its given
market.
Comfort Inn Sizing Study

REVPAR vs Roomcount (1999 Data)
$40
$35
REVPAR $
$30
$25
$20
$15
36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75
Roomcount
The above chart and graphs clearly illustrates that Developers often missed the mark, building more rooms than
'optimum.' 'Optimum' is defined as generating the highest return on invested capital, and is closely tied to occupancy and
REVPAR generation.
Analyzing the above data provides a measure of the effect of over building. For the typical range of rooms for Comfort
Inn projects (40-75 rooms) outside of higher priced areas, the occupancy dropped 23.1 points (a full 35%) from 66.9% to
43.8% as room counts escalated. With a 35 room increase in rooms from the 36-40 room size bracket to the 71-75 room
size bracket, a resulting 35% drop in occupancy is experienced.

EXHIBIT V
The key question, is how to apply this principle to a given hotel project. Naturally, each project would have to be judged
on its individual merits, but looking at an 'average' project for a single brand and product is very revealing. All are
Comfort Inns. All are very similar products in similar market environments, leaving size as the major variable in
performance.
In our sampling, the average project is 65 rooms in size. At this size, the average occupancy is 62.8%. If we built 36%
fewer rooms (42 rooms) our average occupancy would rise a moderate 6.5% to 66.9%. Conversely, if we built 36% more
than average, (71 rooms) our average occupancy plummets by 42.5% to 43.8%.
Clearly there are some basic economic principles at work. Comfort Inns are conservatively-sized. Building smaller than
the average of 65 rooms yields slightly higher occupancies, but the ability to charge ever higher rates as size decreases is
marginal. As rates rise, some consumers perceive lost value and will stay at another property. On the other side of the
coin, properties built larger than the average 65 rooms suffer serious occupancy declines. At some point the need for
additional rooms that was envisioned by the optimistic developer is simply not there, and the extra rooms only serve to
depress the overall performance of the property.
BRANDED HOTELS - ANALYSIS OF SIZING AND ITS IMPACT ON PERFORMANCE

In our second analysis, we selected a sampling of all Texas branded hotels constructed from 1970-1975; 91 properties
across Texas, predominantly 'Full Service'. Our sampling was limited to hotels of less than 135 rooms. We once again
excluded those properties located in exclusive, higher priced markets. For our analysis we examined performance results
from the year 1985 when all subject hotels were 10 to 15 years old, well into their aging life cycles.
The following chart of performance statistics from 1985 for branded properties throughout Texas clearly illustrates the
downward curve, with definite erosion in performance measures as room count increases:
SIZING ANALYSIS
1985 Performance Results
# of Hotels Rooms Occupancy Rate REVPAR
2 00-44 70.0% $37.88 $26.50
3 45-59 73.9% $36.13 $26.71
7 60-74 66.8% $31.10 $20.77
14 75-89 62.7% $31.65 $19.86
29 90-104 60.9% $32.42 $19.75
16 105-119 57.8% $26.25 $15.18
20 120-134 55.5% $29.35 $16.28
Combined: 91 98 59.8% $30.34 $18.14
With occupancy declines being the strongest indicator of the negative impact of building too large, the following graph
provides a clear picture of the descending performance slide as room counts increase. Once again, properties with lower

EXHIBIT V
room counts were more insulated from market competition and were therefore able to be more competitive in both
favorable and depressed market environments. Average occupancy ranged from 70% for properties of 58 rooms or less,
downward to a much lower 55.5% average occupancy for properties in the 120-134 room size bracket, after peaking at
73.9% in the 45-59 size range.
Sizing Impact on Performance

Occupany vs Roomcount (1985 Data)
80%
75%
70%
65%
Occupancy %
60%
55%
50%
45%
40%
00-44 45-59 60-74 75-89 90-104 105-119 120-134
Roomcount
As with the Comfort Inn analysis, the above data provides a measure of the effect of over building. However, since a
number of varying brands are considered in this sample, the typical size of these projects ranges from about 40 to 135.
This is a wider range than the Comfort sampling, since many of the brands in this sample typically have larger room
counts than a Comfort Inn. This is partially due to some brands' ability to support higher room counts, and partially due to
the tendency to overbuild in the early 1970s, when all hotels in this sample were constructed.
While the 65 room average for our Comfort Inn sample is reasonably close to optimum sizing for that brand, the 98 room
average for this analysis appears to be oversized. In our assessment, the optimum average number of rooms for this
sampling would have been 60 to 41 rooms, depending upon brand. In 1985, this roomcount supported occupancies near
70%, with an average REVPAR of almost $27. Compare this to the average capacity of 98 rooms attaining a much lower
average occupancy of 60.9% and REVPAR below $20. Clearly this lower level of performance can be attributed to over-
sizing projects in the early 1970s.
Looking at our average (oversized) roomcount of 98 rooms, increasing the size by 30% (135 rooms) would cause
occupancy to slide 10% from 60.9% to 55.5%. On the other hand, making the average project smaller (58 rooms, or 75%
smaller) would improve occupancy to 73.9%, or a healthy 21% increase.
For the sake of comparison, let us assume that the average property was more appropriately sized at about 58 rooms. If
the project size were increased to 135 rooms, the largest range in our sample, occupancy would suffer a significant 33%
decline from optimum levels.

EXHIBIT V
Of course this assumes that locational differences are not significant. We believe this is true; the large sample and clear
correlation between size and performance support this conclusion.
SUMMARY
The data is clear. In most cases, small hotels outperform large hotels, with the exception of higher-priced markets where
competitive barriers to entry exist (e.g. lack of land, excessive land cost, building restrictions, etc.).
Common sense explains this occurrence: a successful 100 room hotel will inevitably prompt the development of one or
more new, small hotels of similar quality in the immediate area. In a competitive market environment, the smaller hotel
has a distinct advantage and wins - almost every time.

EXHIBIT VI
START-UP PERFORMANCE OF NEW HOTELS AND MOTELS
A new study by Source Strategies, Inc., utilizing all new chain hotels opened in Texas between 1990 and 1994, shows
that new hotels and motels provide their peak performance in Years III through V, when they typically reach 112% of
their 20-year average REVPAR performance level.
In other words, the newness of a property is an advantage on the order of a 12% premium in Years III through V - versus
the average REVPAR that would otherwise be expected for that property over a twenty-year period. That's because the
consumer almost always picks new over old because, to them, 'new' means 'clean' and 'new' means 'value.' Perhaps this is
not news to many, but it is highly important to those who forecast the performance of new properties.
Here's what the graph looks like for the first twelve years for new properties opened in the moderately-good and
improving markets of the 1990's. The years after peak are projected based on two major previous studies: one by Limited
Service in the early 1980's and the second last year by Source Strategies, Inc.

EXHIBIT VI
Year I at 92% of the 20 Year Average, Year II at 107%
The study found that a property could expect a REVPAR at Year I of 92% of the twenty-year average for a project. In
Year II, this would move to 107% and to 112% in Years' III through V.
For example, if over the twenty-year span of the project, we expect a hypothetical new hotel to generate 105% of the
market average REVPAR, this means that in Year I it would generate 97% of market (105% times 92%), and in Year II
112% (105% times Year II's 107%), and then peak at 118% for Years III-V.
Study Method
The underlying design for this study was to determine what effect a property's age had on its REVPAR during the first
five years of operation.
From two other studies, we know that properties will decline at 1.67% per year, versus the market average, over long
periods of time. The second study sample consisted of all new Texas development in the early 1980's, a time of major
under-supply. Consequently, the first few years performance of this group of hotels and motels was probably be
overstated - versus the current, more-normal times. The current study confirmed that belief.
The current study's design was to develop the REVPAR index for every new chain property (each new property's
REVPAR, divided by the REVPAR of all nearby hotels and motels). Then all the resulting indices were averaged.
This process was done for each year of development, 1990, 1991, 1992, 1993 and 1994, in order to obtain data for "Year
I," "Year II" and so on. These were averaged as well to obtain an over-all, average Year I result.
This process produced the graph curve shown above, and is reflective of the particular mix of chain properties, a mix
which produced REVPAR slightly above the market average. To eliminate the effect of a specific mix of chains, the scale
was moved down slightly, so that the application of the year-by-year REVPAR indices to any project would result in
averaging 100 of the first twenty years of the project.

EXHIBIT VI
REVPAR of all New Chain Hotels Opened 1990-1994

With Local Market Averages (Same Zip-Codes)
Opened 1990 Year I Year II Year III Year IV Year V Year VI

9 Chain Hotels $41.97 $49.45 $54.76 $54.17 $59.45 $66.16
Local Market Average $35.38 $37.40 $39.72 $39.71 $43.31 $48.87
Index New Chain/Market 119 132 138 136 137 135
(Peak)

8 Chain Hotels $32.06 $37.95 $41.49 $44.18 $46.26
Local Market Average $29.96 $31.26 $32.36 $33.04 $33.70 est
(Peak)
Above assumes Year VI index decline of 1.67%

7 Chain Hotels $25.07 $36.53 $39.76 $41.74
Local Market Average $30.60 $33.62 $34.36 $37.49 est est
(Peak)
Above assumes Year V is "flat" and Year VI index declines by 1.67%

16 Chain Hotels $24.51 $29.15 $33.19
Local Market Average $30.70 $31.88 $35.27 est est est
(Peak) (Peak)
Above assumes Year III and IV are Peak, and Year V and Year VI index declines by 1.67% annually

29 Chain Hotels $30.40 $35.97
Local Market Average $38.68 $41.29 est est est est
Above assumes Year III and Year IV Peak equals Year II plus 4%, as above, and Year V and Year VI index declines by
1.67% annually
COMBINED INDICES Year I Year II Year III Year IV Year V Year VI

Average of Raw Data 93 108 113 113 113 111
Adjusted 100 over 20 years 92 107 112 112 112 110
(Peak)

EXHIBIT VI
After Year V, Declines Average 1.67% Per Annum

In the sixth year and thereafter, the twenty-year average REVPAR index is diminished at a rate of 1.67% per annum in
order to reflect aging and the normal life-cycle of a hotel.
This pattern of declining performance with property aging is based on major studies of economic life-cycle patterns,
studies which were conducted on a census of all 25,000 Texas rooms built between 1980 and 1982 (study published in
September 1994 issues of MarketShare and the October 1994 issue of Hotel & Motel Management). These Source
Strategies studies confirm a similar, major study conducted in 1982 at the Holiday corporation on 160 company-owned
and company-operated hotels.

EXHIBIT VII
CapEx: A STUDY OF CAPITAL EXPENDITURES IN THE US HOTEL INDUSTRY

The following is a summary of the International Society of Hospitality Consultants' 2000 "CapEx Study, A Study of
Capital Expenditures in the US Hotel Industry" as it applies to limited service properties:
The objective of our historical analysis in CapEx 2000 was to determine what has been spent in the past to maintain a
hotel in good, competitive condition. Hotel owners and management companies were contacted to provide data for the
study.
Definition of CapEx
"Capital Expenditure" is defined as: investments of cash or the creation of liability to acquire or improve an asset, e.g.,
land, buildings, building additions, site improvements, machinery, equipment; Comparatively, the "reserve for
replacement" for a hotel asset has been narrowly defined as the funds set aside for the periodic replacement of furniture,
fixtures and equipment (FF&E). The reserve was not contemplated to fund the replacement of major building
components, such as roofs, elevators, and chillers.
For this study the term has been defined as: the cost of replacing worn out FF&E, as well as the cost of;
- updating design and decor
- curing functional and economic obsolescence...
- complying with franchisors' brand requirements
- technology improvements
- product change to meet market demands
- adhering to government regulatory requirements
- replacing all short- and long-lived building components due to wear and tear
Although many equity investors frequently argue against the necessity of a reserve, particularly if the investor does not
plan to hold the property for greater than five years, the requirement for and amount of reserves are typically contractual
issues between ownership, lender, manager, and/or franchisor/franchisee.
Significant Findings of CapEx 2000

The average amount spent per year by limited-service hotels in the survey was determined to be 5.5% of total revenue for
the time period covered by CapEx 2000 (1988-1998). As these limited-service hotels have matured, CapEx has increased,
underscoring one of our principal findings that CapEx requirements increase as a hotel ages. CapEx Spending is highly
dependent upon a hotel's point in its life cycle. The following chart shows the range of CapEx spending (as a percentage
of total revenues) over a 25-year time period; the table following the chart identifies the specific ranges of CapEx
spending as a percentage of total revenues by year.

EXHIBIT VII
Average CapEx Range by Year

as a Ratio to Total Sales
18%
16%
14%
Maximum
12%
% of Revenues
10%
8%
6%
4%
Minimum
2%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Years
Percentage Range of CapEx Spending by Year

Year Minimum Maximum
1 1.7% 4.5%
2 1.7% 3.3%
3 1.5% 3.2%
4 1.3% 3.6%
5 3.2% 6.2%
6 4.8% 6.8%
7 4.2% 5.9%
8 3.6% 5.2%
9 4.8% 7.0%
10 8.4% 11.9%
11 4.7% 6.6%
12 5.4% 9.4%
13 4.7% 9.9%
14 4.7% 7.8%
15 3.4% 5.7%
16 5.1% 12.4%
17 5.1% 10.5%
18 2.5% 9.7%
19 2.9% 8.1%
20 2.4% 8.7%
21 2.4% 7.0%
22 3.2% 6.8%
23 5.1% 17.0%
24 3.5% 12.9%
25 5.1% 10.2%

EXHIBIT VII
As the data indicates, CapEx spending increases over time for all (U.S.) hotels, with large differences in both the level of
CapEx spending and timing across different hotels. The data illustrates that, over time, the minimum and maximum
levels of CapEx spending generally widens as a hotel increases in age.
CapEx to Total Revenue

Limited Service Hotels
12%
10%
8%
% of Revenues
6%
4%
4% Reserve
2%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
For limited-service hotels, the first major increase in spending occurs in the sixth year, which likely represents the
replacement of soft goods. The first major spike occurs in year 10, which is likely to be the result of a rooms and
corridors renovation. Smaller spikes in CapEx spending occur in the following years, with the next major spending spike
occurring in year 17, which is likely building and some mechanical renovation and replacement.
The following series of tables illustrates limited-service CapEx spending levels in various demographic categories:
CapEx 2000- Limited Service Hotels by Location
Average CapEx/ CapEx per

Age in Total Room per
Location Years Revenue Year
All Properties 12 5.5% $1,111
Airport 9.8 5.4% $1,268
Urban 15.2 4.3% $820
Small City/Hwy 9.2 5.1% $773
Suburban 10.5 5.7% $1,172

EXHIBIT VII
CapEx 2000- Limited Service Hotels by Average Daily Rate

< $60 12.7 5.0% $687
$60-$80 12.5 6.3% $1,134
> $80 12 5.3% $1,570
CapEx 2000- Limited Service Hotels by Property Size

< 100 rooms 8.7 3.3% $475
100-150 rooms 10.3 5.4% $1,107
> 150 rooms 20 6.9% $1,360
CapEx 2000- Limited Service Hotels by Age of Property
CapEx/ CapEx per

Total Room per
Property Age Revenue Year
All Properties 5.5% $1,111
> 15 yrs old 6.5% $1,372
5-15 yrs old 4.8% $897
< 5 yrs old 3.0% $547
Overall, the study details the varying levels of capital required to keep a hotel competitive in its life cycle. Historically,
many operators have held no more than 3-4% of gross revenues in reserve, a level which may be sufficient for FF&E
replacement, but is woefully inadequate for other required expenditures. 14
14
Data compiled and organized from the CapEx report of the International Society of Hospitality Consultants, copyright 2000.

REFERENCES
ABOUT SOURCE STRATEGIES

Source Strategies, Inc. is the leading hotel consultant in Texas, providing Financial Feasibility
Studies, Appraisal Market Packages, Litigation Support and Data Analysis. Source publishes
extensive market and individual hotel statistics: the Hotel Performance Factbook, the Hotel
Brand Report and the Hotel Markets Report.
Source Strategies maintains the most accurate and comprehensive Texas hotel database, covering
98% of all hotels. Source is the only provider of individual, hotel-by-hotel data, trends and financial
projections in Texas.
Bruce Walker, Todd Walker, Douglas Sutton, Paul Vaughn and Amanda Sykes are the team behind
the Source Strategies hotel consultancy, with over 100 years of hospitality industry experience.
Source data is based on the Texas State Comptroller audited tax files for the period of 1980 to the
present, making it more accurate than voluntary samples. Source researches and writes over 100
Hotel Financial Feasibility Studies annually – a key part in the underwriting of $1 billion in new
hotel investment. Beyond lenders and developers, Source’s client list includes TxDOT and the Texas
Governor’s Tourism Office (1988 – 2016). Services detailed below and at SourceStrategies.org.
• The Texas Hotel Performance Factbook: Contains every hotel and motel’s Revenue,
REVPAR, Occupancy Numbers, etc. compared to last year and summarized by zip,
city and metro. Factbooks contain 3-month data or 12-month data.
• Financial Feasibility Studies: Over 100 Hotel Feasibility Studies annually. Texas’
lenders insist on a Source study because of the speed, accuracy and high value.
• The Hotel Brand Report: Newsletter that is the only industry source tracking each
brand’s performance, as well as product and price segments. Includes top 500 hotels
every quarter.
• Hotel Markets Report: Geographic Breakdowns of Texas Markets – metro, county
and city by quarter and by past 12 months.
• Appraisal Market Packages: Five- and ten-year market and individual property
histories that show market and individual property trends.
• Litigation Support and Data Analysis: Almost any question can be analyzed and
proved with the powerful Source database. Extensive testimonial experience.
Contacts us at (210) 734-3434 or visit SourceStrategies.org!

Bruce H. Walker, Chairman & Founder bruce@SourceStrategies.org
Todd A. Walker, President & COO todd@SourceStrategies.org
Douglas W. Sutton, Executive Vice President doug@SourceStrategies.org
Paul J. Vaughn, Senior Vice President paul@SourceStrategies.org
Amanda B. Sykes, Administration Manager amanda@SourceStrategies.org
Endorsed by the Texas Hotel & Lodging Association
P.O. Box 120055 ♦ 134 Laurel Heights ♦ San Antonio, Texas 78212 ♦ (210) 734.3434 ♦ www.SourceStrategies.org
REFERENCES
BRUCE H. WALKER
Bruce Walker is the founder and chairman of Source Strategies, Texas’ leading hotel consultancy.
His experience includes working with some of the world’s most recognizable consumer companies
(Holiday Inn, Hampton Inns, Howard Johnson, Procter & Gamble, Crest, Secret, Scope, La Quinta).
Bruce Walker leveraged his innovative marketing and branding work to develop Source Strategies
into a key resource for the Texas lodging industry.
CAREER HIGHLIGHTS
• 1987-Present: Source Strategies, Inc. Founder and Chairman. Practice includes 100+ hotel
feasibility studies annually for individual developers. Maintain Database Texas hotels and
motels. Litigation support and expert testimony. Publisher and writer of The Hotel Brand
Report, the Texas Hotel Performance Factbook and the Texas Hotel Markets Report.
• 1986-1987: La Quinta Motor Inns, Inc. Senior Vice President, Marketing. Repositioned
brand with the ad campaign “Just Right Overnight,” new corporate logo, extensive couponing
and premium-quality king rooms.
• 1984-1985: Portel Videotex Network. President. Home-banking, home-shopping start-up.
• 1976-1983: Holiday Corporation. Vice President, Marketing (1975-79), President of
Subsidiaries (1979-82), Senior Vice President, Central/Strategic Planning (1980-83). Initiated
the first hotel frequent traveler’s program, and the classic ad campaign, “The Best Surprise is
No Surprise.” Developed and launched the Hi-Net satellite reception network to Holiday Inn
hotels (HBO, CNN and ESPN). Created prototypes and strategic plans for new chains
Hampton Inns and Embassy Suites, and recommended sale of Holiday Inn chain (sold 1989
to Bass PLC).
• 1969-1975: Howard Johnson Company. Assistant to the President, Director Disney
World Development, Director Restaurant Marketing.
• 1964-1968: Procter & Gamble Company. International Brand Manager. Introduced Scope,
Secret and Crisco Oil into Canada; Crest and Tempo into the United Kingdom.
EDUCATION
• Amherst College, BA, 1961, Economics. Harvard Business School, MBA, 1963.
• Boston Consulting Group seminars.
• Hotel/Motel Valuation and Investment Seminar, April 1992. Appraisal Institute
PUBLICATIONS AND SEMINARS
• The Appraisal Journal: New Option in Hotel Appraisals: Quantifying the Revenue Enhancement
Value of Hotel Brands. 2012. Co-written with Doug Sutton.
• The Cornell Quarterly, “What’s Ahead: A Strategic Look at Lodging Trends.” 1993
• Hotel & Motel Management, “Hoteliers Should Examine Hotels’ Life Cycles.” 1994
• Hotel Brand Report, written and published quarterly since 1987.
• Speeches to Urban Land Institute, Appraisal Institute, Real Estate Counseling Group of America,
Texas Hotel & Lodging Association, O’Connor & Associates, and metro hotel associations.
REFERENCES
TODD ANDERSON WALKER
Todd Walker is the president of Source Strategies, Inc. and has served over 20 years as the main
communicator to Source clients. He has authored over 800 hotel studies for Texas developers and
lenders equating to approximately $750 million in capital projects annually since 2005.
CAREER HIGHLIGHTS
• 1994 – Present: Source Strategies, Inc. President (2016-present), Senior Vice President,
(1997-2016). Major contributor to Source Strategies in its achieving market status as the
largest supplier of Hotel Financial Feasibility Studies to Texas’ developers and lending
institutions. Completed over 800 Financial Feasibility Studies successfully, encompassing
over thirty different brands now operating successfully in Texas, New Mexico, Louisiana,
Kansas, Colorado, Oklahoma and other states. Studies include major and local market
assessments and projections, proposed hotel’s revenue generation, ten-year cash flow
forecasts and the projection of return on capital investment.
Responsible for sales and operation of Source Strategies’ publications, including the Texas
Hotel Performance Factbook and the Hotel Brand Report newsletter. Contributes as analyst,
writer and editor to Hotel Brand Report newsletter and the Texas Hotel Performance
Factbook, including ‘Results from 1995, 2004, & 2005: Limited Service Dominates’ (2005),
‘First Quarter 2004, The Best Increase Since the Year 2000’ (2004), ‘Age Matters, Size
Matters’ (2005).
Provides litigation support, analysis and strategy for hotel litigation and testimony.
• 1997: Toronto Globe & Mail Newspaper. Assistant Editor of Business Publications.
The Globe & Mail is Canada’s national newspaper. Wrote business articles and edited
publications. Edited InfoGlobe.
EDUCATION
• University of Toronto. Bachelor of Arts with Honors in English and History, 1994.
REFERENCES
DOUGLAS W. SUTTON
Doug Sutton is Executive Vice President of Source Strategies, Inc. and the lead analyst in the
practice.
CAREER HIGHLIGHTS
• 1996-Present: Source Strategies, Inc. Executive Vice President developing hotel feasibility
studies, proprietary Source Strategies database software development and maintenance,
undertaking complicated analytical studies and writing for Source publications.
Completed over 800 Financial Feasibility Studies successfully, encompassing over thirty-two
different brands in Texas, New Mexico, Louisiana, Kansas, Nebraska, Iowa and
Oklahoma. Studies include market assessments and projections, proposed hotel’s revenue
generation and ten-year cash flow forecasts and the projection of return on capital investment.
Responsible for programming and maintaining Source database of Texas hotels and motels.
Contributing analyst and writer to Hotel Brand Report newsletter and the Texas Hotel
Performance Factbook, including ‘Hot Brands & Dying Brands’, ‘Development Since 9/11:
Winners & Losers’, ‘Higher Priced Brands in Turmoil, Mid-Priced Brands Prosper’.
Provides in-depth and extreme analysis and strategy for hotel litigation and testimony.
• 1994-1996: University Health System, San Antonio. Decision Support Analyst. Provided
data analysis to all levels of hospital management. Prepared numerous medical studies, grant
support documents, cost-analysis studies, staffing studies, and other decision support
analysis. Developed vertical software applications to allow departments to track and study
their individual patient populations.
• 1987-1994: Systems IV Professionals, Inc. President. Consulting firm specializing in data
analysis and customized software development utilizing FOCUS database software. Created
major applications, including a long distance network analysis system for a major
carrier; system allowed the carrier to determine the effect of various network changes before
implementation to facilitate selection of the most cost efficient network possible.
• 1983-1987: United States Air Force. Captain and Information Services Officer,
Directorate of Special Weapons, Kelly AFB, Texas. Duties included writing and
maintaining software to manage the Air Force Nuclear weapons arsenal, tracking nuclear
component parts and supplies, and acquisition and installation of major secure computer
network.
EDUCATION
• Troy State University. Bachelor of Science in Computer and Information Science, 1983.
PUBLICATIONS AND SEMINARS
• The Appraisal Journal: New Option in Hotel Appraisals: Quantifying the Revenue Enhancement
Value of Hotel Brands. 2012. Primary analyst and co-author.
• Numerous articles for the Hotel Brand Report newsletter.
REFERENCES
PAUL J. VAUGHN
Paul Vaughn is a business technology consultant and writer and has consulted for businesses from
manufacturers to retailers, non-profits to law firms, for more than 25 years. He has extensive
experience working with data of all types and developing database-driven web sites.
CAREER HIGHLIGHTS
• 2016 – Present: Source Strategies, Inc. Senior Vice President with extensive knowledge of
database management, industry analysis and methodology. Developed and managed Source
Strategies website.
• 2009 – 2016: Sanford-Brown College. Department Chair for the Technology programs
including Visual Communications, Web Design & Development, Internet Marketing and
Information Technology. Responsible for hiring and managing instructors, retaining and
mentoring students, marketing programs, and teaching courses.
• 2001 – 2016: Dingus Design. Principal. Major projects with a variety of clients including
Source Strategies, LumiQuest (international marketing campaign in print and on the web),
Digital Pro Lab (managed transition from Photo Express to Digital Pro Lab branding),
Wilshire Homes, Fotoseptiembre USA international photography festival (created database-
driven website), City of San Antonio Office of Cultural Affairs (launched city’s Fall Arts
Festivals web site), Zeitgraph (launch of Steelhouse Lofts website) and many more. Provided
business technology consulting and training.
• 2008 – 2011: Southwest School of Art. Adjunct Technology Instructor.
• 2001 – 2009: San Antonio Express-News / MySanAntonio.com. Wrote weekly technology
column for the Sunday Business section of the newspaper.
• 1993 – 2001: River City Silver – Photo & Digital Imaging. Director of Digital Services –
Managed transition from traditional photographic workflow to digital workflow. Worked
with clients including the San Antonio Convention & Visitors Bureau, The Adkins Agency,
Anderson Advertising, Goodman Sign Art and the UT Health Science Center.
• 1988 – 1993: Quest Productions. Production Manager – Designed and produced corporate
presentations for clients including Valero, USAA, Kinetic Concepts and Procermex.
EDUCATION
• Texas State University, Bachelor of Fine Art in Graphic Communications, 1988.

• Center for Excellence in Education (CEE), Various courses on management, technology
and training, 2010-2015.
• Adobe Certified Expert, Dreamweaver and Contribute
REFERENCES
AMANDA B. SYKES
Amanda Sykes is the Administration Manager of Source Strategies. She brings a business and
accounting background to ensure that all account issues and contacts are handled efficiently and
professionally.
CAREER HIGHLIGHTS
• 2006-Present: Source Strategies, Inc. Responsible for sales and operations of Source
Strategies’ publications, duties include Texas Hotel Performance Factbook and Hotel Brand
Report newsletter. Manage Accounts Receivables, billing and collections.
Contributes as analyst, writer and editor to Hotel Brand Report newsletter and the Texas
Hotel Performance Factbook.
Maintains AP, AR, publication delivery and verification of the Source database.
• 2003-2005: Valero Energy Corporation. Associate Accountant.
EDUCATION
• Southern Methodist University, Bachelor of Business Administration, 2001.

• Southern Methodist University, Masters of Science in Accounting, 2002.
REFERENCES
FINANCIAL FEASIBILITY STUDIES

SAMPLE PROJECTS
AmeriSuites Candlewood Suites Embassy Suites

• Austin NW • Beaumont • Laredo
• College Station • Irving DFW • Lubbock
• Denton • Friendswood • McAllen
• Fort Worth Stockyards • Houston Westheimer
• San Antonio • San Antonio Toyota Fairfield Inn by Marriott
• Waco • San Marcos • Livingston
• Temple • Laredo
Baymont Inn • Wichita Falls • San Marcos
• Katy Area
• New Braunfels Clarion Hotel Hampton Inn & Suites
• O’Brien San Antonio • Austin Pecan Park
Best Value • Austin Ben White
• Houston Comfort Inn & Suites • Cedar Park
• Houston SW • Fredericksburg • Corpus Christi
• San Antonio • Navasota • Del Rio
• Waller • Pampa • Galveston
• Pharr • Gainesville
Best Western Inn & Suites • Bay City • Greenville
• Addison • College Station • Hillsboro
• Andrews • Copperas Cove • Katy Area
• Big Spring • Deer Park • Houston Beltway 8
• Bridgeport • Elmendorf • Greenville
• Cameron • Georgetown • Nipomo, CA
• Cleveland • Katy Area • Rosenberg
• Copperas Cove • Hobbs, NM • Seguin
• Dickinson • Longview • Schertz
• Franklin • Pasadena • South Austin
• Halletsville • Quanah • Texarkana
• La Grange • San Antonio • Waxahachie
• Lake Dallas • San Antonio North
• Laredo • Sugarland Hawthorn Suites Ltd
• Levelland • Longview • Marble Falls
• Lumberton • Webster
• Pearsall Hilton Hotel
• Pilot Point Country Inn & Suites • Fort Worth CC
• Rosenberg • Arlington
• Schulenberg Hilton Garden Inn
• Temple Econo Lodge • Amarillo
• Tomball • Dallas • Corpus Christi
• Wakeeney, KS • Lake Charles • Granbury
• Port Arthur • Houston Beltway 8
• Texas City • Killeen
• Odessa
• New Braunfels
• Temple
REFERENCES
Sample Projects Continued Independent Hotels Red Roof Inn

• St. George, Marfa • Katy Area
Holiday Express • Crescent Hotel, New Orleans • Pharr
• Odessa • Dacoma Inn Houston • Stafford
• Alvarado • Executive Inn Tyler • Temple
• Amarillo • Fairmont Hotel San Antonio
• Atlanta • First Choice Inn Grand Prairie Staybridge Suites
• Austin • Garden Inn San Antonio • San Antonio
• Buda • Killeen Inn • South Padre Island
• Cameron • Laredo Inn
• Center • Luxury Suites Canton Studio 6
• Cleburne • Palms Hotel South Padre • Bay City
• Corsicana • Palace Inn Houston • Tyler
• Desoto • Passport Houston • Winnie
• Galveston • San Antonio Inn & Suites
• Gatesville Super 8
• La Grange Hotel Indigo • Austin East
• La Porte • Alamo Plaza San Antonio • Beaumont
• Lampasas • Conroe
• Manvel La Quinta Inn & Suites • Copperas Cove
• Pearland • Boerne • Fort Stockton
• Orange • Cedar Hill • Humble
• San Antonio I-10 West • Gun Barrel City • Killeen
• San Antonio Toyota • Keene • Livingston
• San Marcos • Palestine • Pharr
• Sherman • Pasadena • Plainview
• Texarkana • Pearland • Rosenberg
• Wichita Falls • Rockwall • San Antonio South
• San Antonio
Holiday Inn • San Antonio I-10W Towneplace Suites
• Austin (Select) • San Antonio Toyota • Killeen
• Dallas North • Seguin • Universal City
• Frisco • Tomball
• San Antonio Travelodge
Marriott Hotel • Killeen
Homewood Suites • Dallas Convention Center • San Antonio
• Houston Katy Freeway • Colorado Springs CC
• Norman, OK • JW Marriott, Houston Westin
• Marble Falls • San Antonio Riverwalk
• McAllen Quality Inn & Suites
• Odessa • Katy Wingate Inn & Suites
• New Braunfels • San Antonio East • Odessa
• Waco • Waco • San Antonio
• Wichita Falls
REFERENCES
SAMPLE STUDIES, DATA AND LITIGATION SUPPORT

1. Contracted by the Texas’ Governors Office of Economic Development, Tourism Division (1988 – 2016) to assess
Texas tourism promotion efforts and to aid in marketing Texas.
2. Provided over 1,000 ten-year custom local hotel market histories to MAI appraiser clients (Appraisal Market
Packages).
3. Developed numerous competitive REVPAR performance studies versus local area market averages. This unique
analysis technique highlights trends and deviations in performance, regardless of market movement; a REVPAR index
versus market average shows how well a property has performed. By limiting study to a single variable, truly scientific
conclusions can be made as to cause and effect.
Deviations from trend can be related to specific, causal events such as management problems or outside influence (e.g.
new highway construction, brand change, new competition); if there is no effect from an event, studies confirm the
absence of any impact). If there is an effect, the degree is measurable and apparent. This study approach is among
Source's most important work, frequently the basis for expert witness testimony by Source's principal Bruce Walker.
Examples of major studies include: a) the (lack of) induced demand from opening large North hotels in Texas, 1980
through 2003; b) the impact of adding a second luxury hotel of the same brand in a local market, or removing a hotel of
the same name, on the performance of the pre-existing property; 3) Studies to separate and quantify hotel Business Value
- and the separate Real Estate Value - for tax assessment disputes. The most important study here was to determine the
average revenue effect of adding or removing the "Marriott Hotel" name to numerous hotel properties from 1980 through
1995. Source Strategies has produced values for the Marriott Austin hotel and the Marriott Rivercenter hotel San
Antonio, both with- and without- the Marriott name for real property tax disputes. Clients included USAA, the Bexar
County Appraisal District, and Texas Department of Transportation (TxDOT).
Frequent litigation clients have included the TxDOT through Texas Attorney General's Office for condemnation
valuation and damage cases (Days Inn Houston I-45N, Motel 6 Ft. Worth, Holiday Inn Houston I-45N, La Quinta
Houston I-45N, Holiday Inn Lubbock, Austin Hawthorn Suites South, Chariot Inn, Malibu Grand Prix, Dallas Sheraton,
San Antonio Holiday Select Airport, Coit Towers Hotel Dallas, Erie County PA Hotel Owners vs. Convention Authority,
Bandera Motel San Antonio), USAA, Bexar County Appraisal District, Capital Income Properties (Hilton Nassau Bay,
Austin Marriott North), American Liberty, Dosani Brenham Inn, Wes-Tex Management El Campo. Hospitality
(Homeplace Inn), Ramada Bannister Austin (lock manufacturer), Rodeway Inn I-10 West (bank's non-funding of a
committed loan), Homer J. Rader, and Siu Ft Worth and San Antonio Inn (bankruptcies), Holiday/Clarion (loss due to
change of brand), United Fire (Wingate McAllen performance due to construction issues), Hyatt Regency San Antonio
(arbitration re: introduction of second Hyatt in CVB), Drury Inn Riverwalk.
4. Numerous studies to determine the effect on revenues and cash flow of brand name alternatives, whether in new builds
or in changing to or from a brand name. This technique is used extensively in feasibility work to predict revenue
performance of new hotel projects under various brand name alternatives.
5. Represented Host Marriott before Real Estate Tax Appeal Board, Virginia.
6. Drafted national lending guidelines for Heller Small Business Finance for lodging projects under $5 million.
7. Presentations to bank lending committees to explain the economics of the lodging industry, particularly the effect of
market demand and supply, equilibrium occupancy, cost structures, and the effect of brand name on REVPAR and ROIC.
8. Analysis of alternative markets to determine their potential for new lodging: alternative metro areas, alternative sites,
and strategically, for an expanding chain.
9. Consumer intercept and secondary data studies, including the effect of a new hotel or a potential name change.
METHODOLOGY
(210) 734-3434
SourceStrategies.org
Methodology of Texas Hotel/Motel Reports

Texas Hotel/Motel Quarterly Reports are prepared on a custom basis for private and public clients. Reports are
prepared by Source Strategies of San Antonio, Texas, based on the SSI proprietary database.
Data sources include the following:
Room Revenues: State of Texas Comptroller records are the source of taxable and gross room revenues for all
properties. All properties exceeding $36,000 in the current quarter are included; allowing the Source Strategies database
to cover. As a 98% of Texas lodging industry market.
Gross room revenues (including Non-taxable) were reported to the Comptroller starting in the third quarter of 1990. To
account for the missing non-taxable revenues prior to the third quarter of 1990, Source Strategies increases each
individual property's taxable-only, reported revenues by variable factors averaging 12% to reflect this untaxed volume
(e.g. government business, over 30-day stays, charitable and educational purchases).
Starting in the third quarter of 1990, hotels and motels were required by the Texas Comptroller to report both taxable and
gross room revenues. Approximately 80% of properties usually comply, allowing the development of adjustment factors
for all hotels and motels, even if only taxable revenues are reported. For example, taxable room revenues are adjusted
accordingly higher if a hotel reports only taxable revenues (i.e. where taxable equals gross room revenues).
Properties that make no report or only partial reports are estimated based on the taxable and gross revenues of the past
five quarter trends and performance of similar hotels. If and when they subsequently report accurately, their actual
revenues 'overwrite' our estimates.
Room Counts: these are checked annually in chain directories, the Texas American Automobile Association Tour Book,
brand websites and telephoning to hotels; properties checked account for approximately 80% of revenues. For
independent properties too small to be listed, the room counts reported to the state are used (unless they appear
unreasonable; if so, a telephone contact is made).
As a result, the 'CHAIN' occupancies and room counts appear to be very close to 'actual', while independent room counts
could be slightly overstated. Reports are split into CHAIN and INDEPENDENT categories.
Average Daily Rates are estimated with the aid of financial reports, appraisers, private S.S.I. surveys, chain and AAA
directories and another reliable industry database.
Room-nights sold are derived from the above revenues, divided by Average Daily Rates. Room-nights available are
calculated from Room Counts (times days in the period).
Occupancy is calculated from room-nights sold and room-nights available. All occupancy figures reported represent
fully weighted averages, as calculations are always made after sub-totaling or totaling room-nights sold and room-nights
available.
"CHAINS" are defined as one of the "Top 70+" brands, and include the following names: Four Seasons, Gaylord, Westin,
ZaZa, W, Hilton, Hyatt, Inter-Continental, Marriott, Omni, Renaissance, Wyndham, Embassy, Homewood, Residence,
Staybridge, Clarion, Courtyard, Crowne Plaza, Indigo, Doubletree, Hilton Garden Inn, Holiday Inn, Radisson, Sheraton,
Candlewood, Comfort Suites, Hawthorn, Quality Suites, SpringHill, TownePlace, Baymont, Best Western, Comfort Inn,
Country Inn, Drury, Fairfield, Hampton, Holiday Express, La Quinta, Wingate, Budget Suites, Extended Stay America,
Intown, Value Place, Studio Plus, Studio 6, Best Value, Days, Econo Lodge, Howard Johnson, Microtel, Motel 6, Quality
Inn, Ramada, Red Roof, Super 8, Home2 Suites and Tru.
Accuracy: Room counts and Room Revenues are within 2%. On an overall basis, the change in average daily rates
reported by Source Strategies Inc. have typically been within a few tenths of one-percent of other private research firms
operating in the Texas market.

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05/01/2019

FINANCIAL FEASIBILITY STUDY

La Quinta Inn & Suites

May 01, 2019

Land Value $ 90,000 (for 2.2 acres)

Pre-Tax Project Return 14.25% 2

1. Developer estimate of land and development costs.

Effect on Returns if Capital Investment Changes

SUMMARY OF CRITICAL ASSUMPTIONS: Assumptions are summarized as follows (see

4. City of Townsville lodging market, (Hotels only).

*Calendar Year basis.

La Quinta Inn & Suites Derivation

x Market REVPAR $48.81 $48.81 $48.81

MARKET REVPAR FORECAST

7. Study detailed in size factor derivation in analysis section.

Before the recession

Hotel Market: State of Texas 1990 - 1999

Hotel Market: State of Texas 2000 - 2009

Hotel Market: State of Texas 2010 - 2018

In making projections for the future, we

Ongoing projections reflect the

Lodging Market History: Wider 12 County Market

Lodging Market Projection: Wider 12 County Market

PERIOD: TWELVE MONTHS ENDING DECEMBER 31, 2018

COURTYARD 2 .2 5.6 42 6.2 4,761 8.5 66.1 112.72 74.53

CANDLWOOD 1 .1 2.3 18 2.6 1,453 2.6 67.4 82.09 55.29

BEST WEST 1 .1 1.9 14 2.0 1,328 2.4 62.3 97.35 60.65

WOODSPRNG 1 .1 3.7 25 3.7 1,360 2.4 59.6 53.88 32.12

DAYS INN 1 .1 2.0 14 2.1 990 1.8 63.5 70.08 44.48

Local Market REVPAR History & Forecast:

Lodging Market History: City of Townsville

Lodging Market Projection: City of Townsville

Market Revenue Per Available (RevPAR) Room History

Wider Market Wider/ Local

PROJECT REVPAR - DEVELOPMENT OF INDICES

Residence Comfort Best Holiday Hampton

x Market REVPAR $48.81 $48.81 $48.81 $48.81 $48.81 $48.81 $48.81

Units in Above Subject 76 76 117 68 60 66 72

La Quinta Inn & Suites Derivation

x Market REVPAR $48.81 $48.81 $48.81

Quarter Second Third Fourth First Year III

Quarter Second Third Fourth First Year III

x Market REVPAR $48.81 $48.81 $48.81 $48.81 $48.81 $48.81 $48.81

Local City of Townsville Properties

Resulting Room Annual Basis

Operating Costs per Occupied Room

Cost per Room Annual

Land Value $ 90,000 for 2.2 acre

<PROFIT & LOSS STATEMENTS FOLLOW OVERLEAF>

13. Developer estimate of land and development costs.

La Quinta Inn & Suites, Year I

Operating Expense - Payroll

Gross Operating Profit $304,402 $297,523 $260,192 $246,865 $1,108,982 55.7%

Depreciation AddBack $52,564 $52,564 $52,564 $52,564 $210,256 10.6%

La Quinta Inn & Suites, Year II - X

Operating Expense - Payroll

La Quinta Inn & Suites, Year II - X

May 01, 2019

Please contact us with any questions at (210) 734-3434.

Douglas W. Sutton, Todd Walker,

I Wider 12 County Market & City of Townsville Market, Aggregated Basis

III Individual Hotel/Motel Histories Local Market

V The Case For Downsizing Hotels