Hotel Equities Appointed Receiver of Best Western in Canton, GA

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. July 26, 2010

Atlanta, GA - July 13, 2010 - Atlanta-based Hotel Equities (www.hotelequities.com) was appointed receiver of the Best Western hotel in Canton, Georgia recently. A Cherokee County Superior Court Judge approved and ordered the appointment of Hotel Equities as receiver as a result of a complaint filed by a local lender.

Located off I-575 less than an hour northwest of Atlanta, the Best Western Mountain Villa Inn & Suites (www.bestwesterncanton.org) features 57 rooms. The hotel is minutes from many historic sites in Canton and only one hour from the Blue Ridge Mountains.

“Due to the severe recession and future economic uncertainties, many hotel owners and lenders are enduring financial distress and related declines in occupancies, rates and earnings,” said Andrew Pace, Director of New Development for Hotel Equities. “Many lenders are taking quicker and more effective action in order to protect their interests and reduce the chance of further decline of asset values due to poor operations or lack of continued interest by owners. “Hotel Equities is a strong operator of hotels with a solid reputation of integrity and is particularly qualified to stabilize and improve operations in these distressed situations.”

Mr. Pace went on to explain that in addition to the more traditional foreclosure remedy, lenders are now frequently seeking the appointment of a receiver to protect the hotel property and related business securing the loan. The lender may not only benefit from the appointment of a receiver but may, in fact, be compelled to take such action in order to protect its future rights. The protective remedy of a receivership action is not new, but it was not often used until recently. Because many attorneys and judges are inexperienced in making such appointments, lenders should familiarize themselves with the process and related issues with help from their attorneys.

The typical hotel loan is secured by a mortgage or trust deed on the property itself. In addition, the lender usually has the right to exercise some control over the income of the hotel in the event that payments are in default. This right is typically part of the "rents and profits" clause of the promissory note. In order for the bank to exercise its rights to such income before a filing while avoiding claims of lender interference, the bank may ask the court to appoint an impartial third party to "receive" the property and its income. The receiver is not an agent for the lender, rather the receiver is an independent third party hired to protect the property for all the stakeholders.

Hotel Equities (HE) is an Atlanta-based full-scale hotel management, development and consulting firm. Frederick W. Cerrone, CHA, serves as President and CEO. Hotel Equities presently has 47 properties in its portfolio including several bank owned (REO) properties under management. For more information, visit http://www.hotelequities.com/index.php/lender-services.

Contacts:

Margaret M. Jones, Margaret M. Jones Public Relations, 770.934.2170

Andrew Pace, Director of New Development, Hotel Equities, 678.578.4444, x 23

Mary Beth Cutshall, Director of Development, Hotel Equities, 678.578.4444, x 16