Microtel Sale Proves Lodging Transaction Market Still Active

. May 27, 2009

FOR IMMEDIATE RELEASE

May 21, 2009. (Denver, CO, Chicago, IL; Onalaska, WI): The recent closing of the 63-unit Microtel Inn in Onalaska, Wisconsin was handled by Larry Kaplan, Senior Vice President in HREC Investment Advisors' Denver office and Jeff Preston, Vice President in the Chicago office.

"The Microtel Inn sold five weeks after the initial execution of the purchase agreement, which is an extremely short period of time in the current economic environment.

We have found that a large pool of potential buyers exist for hotel transactions under $10 million. Local and regional banks continue to provide loans for smaller hotel real estate transactions," said Larry Kaplan.

"We currently have two additional hotels under contract in the upper Midwest, with a third hotel expected to go under contract shortly. All three of these hotels are priced under $10 million and each has received significant interest from the investor community. While valuations are off their peak level achieved in 2007, savvy buyers understand that 2009 represents an amazing buying opportunity for properties that are priced appropriately by sellers," continued Larry Kaplan.

"We have seen the value of larger, full-service hotels in primary markets decline by up to 40% in the last year. However, smaller limited-service hotels in secondary markets have in most instances not experienced a loss in value anywhere near that level. Revenue declines in 2009 are in the low single digits in many cases for these smaller hotels, versus the 20% to 25% decline experienced for larger urban hotels," said Jeff Preston.

Larry Kaplan concluded, "We have an active database of aggressive hotel buyers who have the track record in the industry to secure acquisition financing in this challenging environment.

Selecting the right buyer group is the key to a successful transaction. The experienced, wellcapitalized groups can still get deals done, while the inexperienced fringe players are not able to secure financing at this point in the investment cycle."

The Microtel is located along Interstate 90, in a suburb of La Crosse near the University of Wisconsin - La Crosse and Gundersen-Lutheran Hospital. The property is also within driving distance of Fort McCoy military base.

The hotel was sold by Larson Investments, LLC to a local multi-unit hotel owner. This is the fourth hotel transaction completed by Larry Kaplan for the Larson Companies.

About HREC

HREC is the nation's leading lodging and gaming real estate advisory firm specializing in property sales, mortgage brokerage, equity/JV structuring, consulting (market studies and appraisals), asset management and litigation support. With ten offices throughout North America, HREC is distinguished by unwavering commitment to client service through its team approach, intellectual capital and hotel/casino specialization.

For additional information, visit HREC's website at http://www.hrec.com

Contacts:

Larry Kaplan

Senior Vice President

HREC Investment Advisors

6400 S Fiddler's Green Circle

Suite 1730

Greenwood Village, CO 80111

(303) 267-0105 ext 113

[email protected]

Jeff Preston

Vice President