The XYZ Hotel, 123 Main Street Summary of Development Assumptions - 7/24/2012

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1 Summary of Development Assumptions - 7/24/2012 LAND AND BUILDING CHARACTERISTICS Property Hotel Type Full Service Hotel Space Use Parking Struture Hotel Structure & Lot Room Support 0 SF Structured Parking 100 Spaces Lot Square Footage 25,000 SF Retail 7,381 SF GSF per Space 350 SF Lot FAR 8.0 FAR Office/Retail 0 SF Structured Parking GSF 35,000 SF Gross Square Footage 245,830 SF Food & Beverage 0 SF Surface Parking 0 Spaces Gross Room Square Footage 238,449 SF Function 0 SF Surface Parking GSF 0 SF Efficiency Factor 85% Spa 0 SF Residual Room GSF 202,682 SF Admin/Mechanical 0 SF Area Without Parking 245,830 SF Total Rooms/Keys 278 Keys Public Area 0 SF Above-Grade GSF excl. Pkg. 245,830 SF Rentable Hotel Room SF 729 SF Total Non-Room GSF 7,381 SF Total Building Gross SF 280,830 SF PROJECT TIMING VARIABLES Analysis Start Date Month 1 4/1/2012 Number of Months of Construction 22 Months Date of Land Contract Execution 3/1/2013 Construction Start Date Month 22 1/1/2014 Land Closing Date 3/1/2013 First Retail C of O Received Month 40 8/1/2015 Months of Pre-Construction after Land Closing 21 Months Construction End Date/ Final C of O Month 44 11/1/2015 Year 4 Total Development Period Duration 44 Months DEVELOPMENT USES OF FUNDS Per Key Per GSF % Total Total Land Purchase Cost 0.00% Deposit $53,957 $ % $15,000,000 Parking Space Acquisition Costs $30,000/Space $3,000,000 Hard Costs $58,210,715 Vertical Construction $200,000/Key $55,600,000 Retail Tenant Improvements $110,715 $110,715 Structured Parking Cost $25,000/Space $2,500,000 Surface Parking Cost $25,000/Space $0 Other Construction (Non-GC) $0 Hard Costs with Contingency $219,861 $ % $61,121,251 Hard Costs Contingency 5.00% $2,910,536 Soft Costs 10% $22,107 $ % $6,145,750 Soft Costs Contingency 3.00% $184,373 Developer Fee 2.00% $1,164,214 Marketing and Project Contingency 1.00% $61,458 Retail Tenant Broker Fees & Leasing Commisions $51,667 FF&E $5,000/Key $6 1.52% $1,390,000 Financing Costs Incl. Cash and Capitalized Int./Fees 3.51% $3,201,622 Total Development Cost (Uses of Funds) $328,490 $ % $91,320,334 Operating Deficit $19,732 Total Development Cost Including Operating Deficit $91,340,066 DEVELOPMENT SOURCES OF FUNDS Per Key % of Total Equity Initial Amount Share of Any % of Cost w/deficits Deficits Developer/Sponsor Equity $7, % $2,000,000 $73, % $2,073,230 Third Party Investor Equity $71, % $20,000,000 $732, % $20,732,302 Equity Total % $22,000,000 $805, % $22,805,532 Land Loan Closing Date 3/1/2013 Loan Fees 0.75% Total Loan Proceeds $0 Annual Interest Rate 6.00% Broker Fee 0.00% Loan-to-Cost Ratio 0% Repayment Source: Senior Loan Mortgage Recording Tax 0.00% Senior Construction Loan Closing Date 6/1/2014 Loan Fees - Front End 0.50% Total Loan Proceeds $68,534,534 Annual Interest Rate 6.00% Broker Fee 0.00% Loan-to-Cost Ratio 75.03% Loan Fees at Draw 1.00% Mortgage Recording Tax 0.50% Repayment Source: Debt Total (excludes any Land Loan) $68,534,534 Property Cash Flow $0 Total Sources of Funds (excludes any Land Loan) $91,340,066

2 Summary of Operating and Sale Assumptions - 7/24/2012 INCOME AND OCCUPANCY VARIABLES INTERIM LOAN TO REPLACE SENIOR LOAN Income Average Daily Rate (ADR) $ Parking Per Car $20.00 Funding Date 10/1/2015 Annual NOI at Point of Refinancing $16,156,205 ADR Nominal Growth 2.00% Parking Revenue Net Margin 80% Amortization Period 20 Years Maximum Loan Amount $141,366,797 Expense Inflation Rate 1.00% Telecommunications POR $50.00 Duration 15 months Amount to Refinance: Remaining Balance on Loan(s) Other Income Inflation Rate 3.00% Rentals & Other Income POR $20.00 Duration 1.25 Years Loan Principal Borrowed $68,534,534 Interest Rate 5.00% Food And Beverage Variables Monthly Payment ($452,298) Remaining Bal. on Loan(s) $68,534,534 Breakfast 5.00% $ x LTV 32% Grab-n-Go 5.00% $ Loan Fees - Front End 1.00% Coffee Bar Sales 5.00% $3.00 $ Broker Fee 1.00% Cocktail Sales $3.00 $ Mortgage Recording Tax 1.00% Snack/Lite Fare Sales $3.00 $ I/O Period (# of Years) 0 Occupancy PERMANENT LOAN 11/2/ /2/ /2/ /2/ /2/2019 Year 1 Year 2 Year 3 Year 4 Year 5 Refinancing to occur? No Annual NOI at Point of Refinancing $17,063,570 60% 62% 69% 70% 70% Year of Refinancing Year 6 Maximum Loan Amount * $144,341,580 11/2/ /2/ /2/ /2/ /2/2024 Date of Refinancing 09/01/2017 Amount to Refinance: Remaining Interim Loan Balance Year 6 Year 7 Year 8 Year 9 Year 10 Amortization Period 20 Years Loan Principal Borrowed $64,518,579 73% 73% 73% 73% 73% Interest Rate 7.75% Monthly Payment ($1,184,970) Remaining Interim Loan Principal $64,518,579 New LTV 68% Fixed Expenses Cost of Sales & Labor Excess Proceeds to Equity $0 Insurance PAR $10.00 Rooms $15.00 Loan/Broker Fees/Closing Costs 1.00% Property Taxes % Total Rev 3.00% Food & Beverage % Cost 2.00% Interest Only Period (# of Years) 0 Capital Reserve % Total Rev Year % Telecommunications % Cost 2.00% * The Lesser of the Two Loan Proceeds Amounts Year % Parking % Cost 1.00% Year % Rentals & Other % Cost 1.00% DISPOSITION AND RETURNS Variable Expenses - SG&A Administrative & General PAR $20.00 Royalty Fees % Rms Rev 1.00% Post-Delivery Hold: 30 Months Sell in Project Year #7 6/1/2018 $19,919,238 Per Key Marketing PAR $5.00 Property Maintenance PAR $20.00 Sale Date 5/1/2018 Month 74 Management Fee % Total Rev 2.50% Energy PAR $10.00 Terminal Cap Rate 10.00% Sale Price $199,192,376 $716,519 Selling Costs 2.00% ($3,983,848) Net Sale Proceeds $195,208,528 RETAIL COMPONENT INCOME, TI AND LC ASSUMPTIONS Less Outstanding Mortgage ($63,475,074) NNN Rent TI Allowance TI Start Month TI Schedule Net Sales Proceeds After Debt Repayment $131,733,454 $473,861 per Key $25.00 $15.00 Month 42 2 Months Escalation 3.00% IRR (calculated off of monthly values) 53.93% Net Present Value at 10% $72,234,105 Rent Escalates Prior to Delivery? No Net Cash Flow $138,528,628 Multiple on Equity ** 2.66x OpEx RE Taxes Total Equity Invested * $83,660,024 ** Ignores the time value of money. Leasing Commissions Term /SF/Yr /SF/Yr * Includes funding of any equity operating, financing and funding shortfalls. 4.00% 7 Years $5.00 $3.00

3 Capital Structure % Equity % TDC Equity % TDC Debt % TDC Amount * Total Equity * Total Debt * Deficits Funded by Equity Equity Investment including Deficit Liabilities % TDC - Actual %s Developer Sponsor Equity % 2.27% $2,000,000 $2,073,230 Developer Sponsor Equity % Third Party Investor Equity % 22.70% 24.97% $20,000,000 $22,000,000 $805,532 $20,732,302 Third Party Investor Equity % $22,805,532 Senior Loan ** 75.03% 75.03% $68,534,534 $68,534,534 Senior Loan ** 75.03% Total Sources of Funds (TDC) % % $91,340,066 Property Cash Flow as Source of Funds 0.00% % Sources of Funds From Above $91,340,066 Property Cash Flow As Source of Funds $0 Total Sources of Funds $91,340,066 + While the equity slices are shown stacked vertically, note that this is simply the graphic representation and does not imply that there is any Preferred equity in the transaction. * The Senior Loan Amount on a residual basis after designating the dollar amounts of the other sources of funds. ** Principal Amount includes Funded Interest Reserve and Funded Loan Fees. ^ Equity amounts in this column do not include the pro-rata portion of the Operating and Financing Deficits to be funded by the Equity investors. See Column S for adjusted totals.

4 Annual Summary - Sources and Uses of Funds Data Series USES OF FUNDS Total Profile Land and Acquisition Costs $18,000, ,000,000 1,290,000 1,710, Total Hard Costs incl. Retail TIs $61,121, ,232,150 34,889, Total Soft Costs incl. Contingency $7,607,461 70,588 94,118 4,031,503 3,411, FF&E $1,390, , , Subtotal Development Costs $88,118,712 $70,588 $15,094,118 $32,311,834 $40,642,171 $0 $0 Land Loan Interest $ Senior Loan Interest $2,804, ,519 2,507, Total Financing Costs $3,201, ,422 2,541, Total Development Costs before Operating Deficit $91,320,334 $70,588 $15,094,118 $32,972,256 $43,183,371 $0 $0 Operating Deficit ($19,732) (19,732) 0 0 Total Development Costs and Operating Deficit $91,340,066 $70,588 $15,094,118 $32,972,256 $43,203,103 $0 $0 SOURCES OF FUNDS Developer Sponsor Equity Invests First Direct Project Costs Draw $2,000,000 70,588 1,929, Operating Deficit and Financing-related Deficits Draw $73, , Total Funding $2,073,230 70,588 1,929, , Third Party Investor Equity Invests after Partner invests fully Direct Project Costs Draw $20,000, ,164,706 6,835, Operating Deficit and Financing-related Deficits Draw $732, , Total Funding $20,732, ,164,706 6,835, , Land Loan Draw $ Cash Interest Payments $ Loan Repayment $ Senior Loan Direct Project Costs Draw $65,666, ,476,541 40,189, Loan Fees - Front End $342, , Loan Fees - At Loan Draws $54, ,230 33, Funded Interest Reserve $2,470, ,519 2,174, Cash Interest Payments $333, , Repayment from Interim Loan ($68,534,534) (68,534,534) 0 0 Repayment from Permanent Loan $

5 Annual Summary - Cash Flow Data Series Sales Total Profile Rooms $51,876, ,153,616 13,188,741 14,085,162 15,730,284 6,719, Food & Beverage $125, ,218 31,640 34,115 38,399 16, Retail NOI $406, , , , Total Sales and Retail NOI $73,741,287 $0 $0 $0 $3,073,587 $18,768,242 $20,075,621 $22,276,464 $9,547,373 $0 $0 $0 Rooms $3,678, , , ,680 1,122, , Food & Beverage $2, Telecommunications $245, ,147 61,535 66,379 74,834 32, Parking $39, ,624 9,846 10,621 11,973 5, Rentals & Other Income $49, ,029 12,307 13,276 14,967 6, Total Cost of Sales $4,014,556 $0 $0 $0 $166,109 $1,007,342 $1,086,637 $1,225,058 $529,410 $0 $0 $0 Adminstative & General $20, ,588 5,755 5,928 2, Sales & Marketing $5, ,397 1,439 1, Management Fee (Market Rate) $1,843, , , , , , Royalty Fees $518, , , , ,303 67, Property Repairs & Maintenance $20, ,588 5,755 5,928 2, Energy $10, ,794 2,878 2,964 1, Total SG&A Expenses $2,431,640 $0 $0 $0 $113,257 $616,460 $658,570 $730,517 $312,838 $0 $0 $0 Total Fixed Expenses $3,704, , ,206 1,006,659 1,116, , NET OPERATING INCOME $44,090,815 $0 $0 $0 $2,632,679 $16,203,234 $17,323,756 $7,931,146 $0 $0 $0 $0 Revenue after Financing Costs $28,587, ,283 10,775,663 11,586,718 5,282, Disposition Property Sale Capitalized Value, Gross $199,192, ,192, Less Selling Costs ($3,983,848) (3,983,848) Net Sales Proceeds $195,208, ,208, Retail Sales Proceeds $207, , Financing Cash Flows Developer Sponsor Equity Draw ($2,000,000) (70,588) (1,929,412) Third Party Investor Equity Draw ($20,000,000) 0 (13,164,706) (6,835,294) Developer Sponsor Equity Draw ($73,230) (73,230) Third Party Investor Equity Draw ($732,302) (732,302) Senior Loan Repayment ($68,534,534) (68,534,534) Loan Proceeds - Interim Loan $68,534, ,534, Repayment of Interim Loan ($64,518,579) (64,518,579) Loan Proceeds - Permanent Loan $64,518, ,518, Repayment of Permanent Loan ($63,475,074) (63,475,074) LEVERED CASH FLOW $138,528,628 ($70,588) ($15,094,118) ($6,835,294) $942,283 $10,775,663 $11,794,402 $137,016,279 $0 $0 $0 $0

6 Equity Joint Venture Partnership Structure Total Required Equity (Purchase + Operation) $22,805,532 (Includes any Deficit Funding) Sponsor 9.09% $2,073, % Third Party Investor 90.91% $20,732, % $22,805,532 Profit Sharing Preferred Return Residual Split 8.00% Partnership Structure % Equity Sponsor Equity 9.09% Profit >> Sponsor Equity 9.09% 50.00% Third Party Investor 90.91% Sharing >> Sponsor Promote 0.00% Total % Splits >> Investor Equity 90.91% 50.00% % % Note: By its nature, the Preferred Return includes the Return of Capital.

7 Joint Venture Return Detail Sponsor Third Party Total Project Investor Equity Investment $2,073,230 $20,732,302 $22,805,532 Share of Equity Investment 9.09% 90.91% % Gross Return $68,415,304 $92,918,856 $161,334,160 Net Profit (Return on Equity) $66,342,074 $72,186,554 $138,528,628 Multiple on Equity 33.00x 4.48x 7.07x Internal Rate of Return 99.54% 41.09% 53.93% Time from Equity Investment to Final Return (months) Profit Sharing Summary - Sponsor and Third Party Investor Profit Sharing Structure - Developer and Third Party Investor Tier Sponsor Cashflow Developer Share Third Party Investor Cashflow Third Party Investor Share Total Cashflow Developer Promote Developer Equity Pro- Rata Share Investor Total (must Profit Share be 100%) ROC and Pref Return $2,722,617 9% $27,226,168 91% $29,948,785 Preferred Return From 0% through 8% 0% 9% 91% 100% Tier 1 $65,692,687 50% $65,692,687 50% $131,385,375 Residual Split Above 8% 41% 9% 50% 100% Total $68,415,304 42% $92,918,856 58% $161,334,160 Less Equity Investment ($2,073,230) 9% ($20,732,302) 91% ($22,805,532) Net Profit (Return on Equity) $66,342,074 48% $72,186,554 52% $138,528,628 IRR Hurdle Ranges Share of Total Equity Investment Sponsor Third Party Investor 9% Share of Total Profit Sponsor Third Party Investor 52% $74,000,000 $72,000,000 $70,000,000 Net Profits Sponsor Third Party Investor $68,000,000 91% 48% $66,000,000 $64,000,000 $62,000,000