HREC Investment Advisors - 2002 to present - President & Senior Principal - President of a brokerage and investment banking company providing services exclusively to the hospitality industry. Our experience in resolving complex issues related to hotel sales, debt and equity placements and ownership issues have allowed us to develop a reputation as skilled advisors and closers.

Hospitality Investment Counselors, Inc. - June 1988 to July 2002 - President - Serving as President of an investment banking company specializing in the hospitality industry. Investment advisor to commercial real estate companies, hotel companies, major corporations, banks, private investors, financial service institutions, insurance companies and government agencies. Licensed Real Estate Broker in the State of Colorado.

Founder of company, establishing offices in Denver, CO, Stamford, CT and Chicago, IL;
Responsible for company's activities in hotel investment banking, including over 200 completed hotel transactions representing over $3.0 billion in hotel investments;
Responsible for preparation of investment memorandums, including in-depth market analysis, financial and valuation analysis and marketing strategy for the disposition of each hotel property listed by HIC;
Represented numerous investors in acquisition and disposition of hotel properties, including analysis of market, review of market position, recommended capital improvement plans, as well as assisting clients in determining long-range strategic plans and assisting in capital formation;
Responsible for company's mortgage brokerage activities, including equity and debt placements;
Represented a pension fund as an originator for hotel debt financing, including review of loan packages and recommendations on loan applications;
Expanded company's presence into hotel asset management through a strategic alliance representing over 24 hotel asset management contracts;
Personal responsibility for individual asset management assignments, including reporting to ownership, making recommendations as to capital improvements, negotiating franchise issues, overseeing cost controls, reviewing marketing plan, strategic planning and disposition implementation;
Performed consulting services for clients, including market and financial feasibility, valuation analysis, franchise selection, capital improvement planning, portfolio planning and financial structuring. ·

Gemstone Hospitality, LLC. - July 1999 to July 2002 - Principal - Co-founded hotel and resort asset management, investment and property management company with an emphasis on full-service hotels and resorts specializing in value enhancement through a combination of strategies, including: development, renovation, repositioning, management and marketing improvements.

Portfolio of 15 hotel properties valued at over $300 million;
Structured management and acquisitions for initial hotel and resort properties;
Formulated strategic alliances with several investment funds and pension fund advisors, resulting in access to capital for hotel acquisitions and development in excess of $2 billion;
Formulated strategic alliances with companies outside of the hospitality industry in sports, entertainment and media to provide value-added content to resort properties;
Formulated debt vehicles with multiple lenders for bridge loans/mini-perms for under-performing assets and acquisition targets.

Hospitality Worldwide Services, Inc. - January 1998 to May 1999 - Senior Vice President - Serving as a Senior Vice President in charge of hotel acquisitions and development. Overseeing joint ventures in hotel acquisitions and with institutional investors, as well as development joint ventures with major hotel companies. Active in individual hotel asset management and involved in equity and debt placements for the company’s hotel investment activities.

Established $200 million development joint venture with Prime Hospitality Corp. to develop 20 AmeriSuites, including market analysis, site identification, site acquisition negotiation, development due diligence and entitlements. Also involved in originating and structuring the joint venture and placing debt for the joint venture;
Established development joint venture with Patriot American Hospitality to develop full-service Wyndham Hotels, including debt/equity structure and placement, as well as site/project origination and development team management;
Involved in acquisition joint ventures with Apollo Real Estate Advisors and ING Realty Partners, acquiring three major hotel assets with an asset value in excess of $100 million. Responsibilities include acquisition origination, debt placement, renovation oversight and asset management;
Assisted in structuring and placing the HWS Hotel Opportunity Fund, a $200 million limited partnership with an emphasis on acquiring full-service hotels in North America.

James Felt Realty Services, Hospitality Properties Division - April 1988 to May 1991 - Vice President - Established a hotel brokerage and investment advisory division within a major national real estate company.

Licensed Real Estate Broker in the State of New York; Assisted in coordinating over 20 hotel division professionals located throughout the United States in assignment management and proposal preparation;
Coordinated marketing efforts for northeast division, including presentations to major financial institutions and investors;
Responsible for completion of several hotel transactions, including notable transactions such as the Barbizon Plaza and Viscount Hotel in New York City and the Sands Hotel and Casino in San Juan, Puerto Rico.

Pannell Kerr Forster - March 1982 to April 1988 - Senior Manager - Oversaw hotel consulting division of national accounting firm. The Denver office of PKF was recognized as the leader in the firm in consulting on hotel workouts, distressed real estate, resorts and conference centers.

Oversaw a staff of 12 professionals and support staff with annual consulting revenues in excess of $1 million;
Provided professional staff training on a national basis in the areas of financial workouts for distressed hotels, practice development and negotiation skills;
Conducted consulting assignments throughout the United States, Canada and Mexico including such diverse assignments as conference center and resort feasibility studies, expert witness testimony, acquisition analysis and financial structuring, golf course feasibility analysis, convention center analysis and workouts on distressed hotels and resorts.

Education

Bachelor of Science' Business Administration – University of Denver; Denver, Colorado Graduate Studies in Real Estate Finance – New York University; New York, New York

Professional Memberships

International Society of Hospitality Consultants
American Hotel & Motel Association
Denver University HRM Alumni Association

Published Articles

Real Estate Forum
"Buyers, Sellers Differ on Values of Many Hotels"

Colorado Real Estate Journal
“Purse Strings Loosen as Lenders Jump Back Into Hotel Lending"

Colorado Real Estate Journal
"Sellers Watch Hotel Values in Colorado Climb Higher and Higher"

Seminars and Speeches

Hotel Investment Trends - Seminars conducted in 1993, 1994 and 1995 in New York, Washington D.C., Chicago, Denver and Dallas.

Accomplishments Case Study: Holiday Inn – Chicago, Illinois

Situation Analysis: 238-room hotel located in a suburb of Chicago. The property was part of a portfolio acquisition that was not performing. The property was an older Holiday Inn with a declining value, decreasing cash flow and ineffective management. The hotel was now owned by a consortium of 30 lenders who had made the original loans on the portfolio. Based on an agreement between the lenders, the hotel had to be sold on an all-cash basis.

Action Plan: The property was improved as per the Holiday Inn Product Improvement Plan (PIP). The property was scheduled for rapid disposition before the value of the hotel deteriorated further, and we were retained to sell the property.

Key Issues: The sale price of the property was tied to an unrealistic appraisal. Due to the rapid decline in value, an updated valuation may not have proved any more accurate than the first appraisal. Whether the property could retain the Holiday Inn franchise, which was contributing in excess of 30 percent of the hotel's revenues, was in doubt.

Outcome: Several offers were presented to help establish the market value of the hotel. A revised appraisal supported the range of values indicated and the hotel was sold to an all-cash buyer. Financing was arranged through a local Savings and Loan. Holiday Corporation agreed to let the new owners meet the remaining PIP renovation requirements over a two-year period. Several other Holiday Inns in the market have lost their Holiday Inn franchises, thus strengthening the market position of the subject property. Operating performance has improved dramatically under new ownership and management.

Accomplishments Case Study: Sheraton Hotel Denver Airport - Denver, Colorado

Situation Analysis: 200-room hotel located at Stapleton International Airport, the predecessor to Denver International Airport. The property was on a long-term lease to Sheraton Corporation and was owned by a family Trust administered by a local bank. The new airport was under construction and Stapleton was scheduled to close. Sheraton's lease was set to expire prior to the new airport opening and they had indicated that they would not renew the lease nor allow the hotel to continue to carry the Sheraton name. Sheraton also owned the hotel's furniture, fixtures and equipment.

Action Plan: We were retained to devise a strategy to secure the position of the Trust, find a new operator and negotiate with Sheraton. We devised a request for proposals based on the goal of retaining the Sheraton flag and finding a new operator.

Key Issues: Due to the element of risk associated with the relocation of the airport, the outright sale of the hotel was not a practical solution. A traditional management agreement was not attractive to the Trust as they wished to limit their element of risk. Sheraton indicated a willingness to allow the hotel to retain the Sheraton franchise, which was contributing in excess of 40 percent of the hotel's business, in exchange for negotiated concessions.

Outcome: A lease was structured with a new operator for seven years that protected the Trust from any downside risk, while allowing it to participate in the hotel's profits. The lease was fully secured and rewarded the operator for their level of risk while protecting the value of the asset until an alternative use for the existing airport was devised. Sheraton was allowed an early release from their lease in exchange for the hotel's furniture, fixtures and equipment, as well as the right to retain the Sheraton flag based on an agreed upon renovation program and conversion from a Sheraton Hotel to a Four Points. In the first two years of the agreement, the hotel's profits tripled and the hotel's market orientation was shifted further away from sole dependence on airport related business. We remained with the hotel as Asset Manager and successfully arranged the sale of the asset at an opportune time after the property had been stabilized.

Accomplishments Case Study: The Village at Breckenridge, Colorado

Situation Analysis: Mixed-use resort comprised of condominiums, three hotels, extensive retail and development components located at the base of a major ski area. Owner had acquired property after default by original developer at a significant discount but was still carrying more debt than property's cash flow could support. The property happened to be situated in one of the fastest growing resort destinations in the U.S. and real estate sales in the area had been brisk. During the disposition process the adjacent ski area was acquired by Ralston-Purina.

Action Plan: In order to reduce principal and overhead, certain assets were targeted for disposition. Logical buyers for various components were approached and negotiations were entered into with the timeshare division of a major hotel company for one of the hotel properties and adjacent land.

Key Issues: The potential buyer presented numerous hurdles in terms of their approval process and need for restrictive covenants against further development of timeshare within the overall resort complex. As part of the acquisition included development parcels, planning and approval issues needed to be overcome before the transaction could be concluded.

Outcome: The buyer eventually closed on the purchase of a major hotel/condominium property, adjacent land and entered into a long-term lease of retail space for their sales center after all issues were successfully resolved. The proceeds of the transaction were utilized to reduce debt principal and the resort showed a positive cash flow for the first time in its history. Consequently, a second transaction was arranged for the balance of the resort to an investor. The existing owner retained a carried interest in the asset; when the property was consequently sold to Vail Associates, the new owner of the ski mountain, a considerable gain on the investment was realized.

Geoff Davis, ISHC gdavis@hrec.com 212-551-1775

President & Senior Principal (HREC Investment Advisors)New York, NY