

		Initial Costs		Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carrried at Close of Period			Accumulated Depreciation	Net Book Value

Description	Encumbrances	Land	Buildings & Improvements	Land	Buildings & Improvements	Land	Buildings & Improvements	Total	Buildings & Improvements*	Land, Buildings & Improvements	Date of Acquisition

Residence Inn, Framingham, MA	-	1,325	12,737	-	1,924	1,325	14,661	15,986	($3,923)	12,063	03/26/04
Hampton Inn, New York, NY	(23,650)	5,472	23,280	-	1,440	5,472	24,720	30,192	(5,927)	24,265	04/01/05
Residence Inn, Greenbelt, MD	(10,491)	2,615	14,815	-	2,233	2,615	17,048	19,663	(4,351)	15,312	07/16/04
Courtyard, Brookline, MA	(37,065)	-	47,414	-	1,435	-	48,849	48,849	(11,045)	37,804	06/16/05
Residence Inn, Tyson's Corner, VA	-	4,283	14,475	-	1,860	4,283	16,335	20,618	(3,498)	17,120	02/02/06
Hilton Garden Inn, JFK Airport, NY	(20,016)	-	25,018	-	2,466	-	27,484	27,484	(5,801)	21,683	02/16/06
Hawthorne Suites, Franklin, MA	(7,697)	1,872	8,968	-	364	1,872	9,332	11,204	(1,922)	9,282	04/25/06
Holiday Inn Exp, Cambridge, MA	-	1,956	9,793	-	2,338	1,956	12,131	14,087	(2,926)	11,161	05/03/06
Residence Inn, Norwood, MA	-	1,970	11,761	-	1,470	1,970	13,231	15,201	(2,418)	12,783	07/27/06
Hampton Inn, Chelsea, NY	(34,204)	8,905	33,500	-	1,856	8,905	35,356	44,261	(7,131)	37,130	09/29/06
Hyatt House, Gaithersburg, MD	(13,720)	2,912	16,001	-	3,372	2,912	19,373	22,285	(3,742)	18,543	12/28/06
Hyatt House, Pleasant Hills, CA	(20,160)	6,216	17,229	-	2,953	6,216	20,182	26,398	(3,356)	23,042	12/28/06
Hyatt House, Pleasanton, CA	(14,490)	3,941	12,560	-	3,441	3,941	16,001	19,942	(3,024)	16,918	12/28/06
Hyatt House, Scottsdale, AZ	(16,778)	3,060	19,968	-	3,350	3,060	23,318	26,378	(4,610)	21,768	12/28/06
Hyatt House, White Plains, NY	(33,030)	8,823	30,273	-	2,537	8,823	32,810	41,633	(6,383)	35,250	12/28/06
Holiday Inn Exp & Suites, Chester, NY	(6,366)	1,500	6,671	-	219	1,500	6,890	8,390	(1,208)	7,182	01/25/07
Hampton Inn, Seaport, NY	(18,047)	7,816	19,040	-	692	7,816	19,732	27,548	(3,472)	24,076	02/01/07
Hotel 373-5th Ave, New York, NY	(18,477)	14,239	16,778	-	129	14,239	16,907	31,146	(2,816)	28,330	06/01/07
Sheraton Hotel, JFK Airport, NY	-	-	27,315	-	969	-	28,284	28,284	(4,048)	24,236	06/13/08
Hampton Inn, Philadelphia, PA	-	3,490	24,382	-	5,901	3,490	30,283	33,773	(9,468)	24,305	02/15/06
Duane Street, Tribeca, NY	(14,597)	8,213	12,869	-	1,238	8,213	14,107	22,320	(2,411)	19,909	01/04/08
NU Hotel, Brooklyn, NY	-	-	22,042	-	638	-	22,680	22,680	(3,212)	19,468	01/14/08


			Initial Costs			Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carrried at Close of Period				Accumulated Depreciation	Net Book Value

Description		Encumbrances	Land	Buildings & Improvements		Land	Buildings & Improvements	Land	Buildings & Improvements	Total		Buildings & Improvements*	Land, Buildings & Improvements	Date of Acquisition

Hilton Garden Inn, Tribeca, NY		(31,317)	21,077	42,955		-	278	21,077	43,233	64,310		(5,091)	59,219	05/01/09
Hampton Inn, Times Square, NY		-	10,691	41,637		-	275	10,691	41,912	52,603		(4,079)	48,524	02/09/10
Holiday Inn Express, Times Square, NY		-	11,075	43,113		-	46	11,075	43,159	54,234		(4,204)	50,030	02/09/10
Candlewood Suites, Times Square, NY		-	10,281	36,687		-	41	10,281	36,728	47,009		(3,569)	43,440	02/09/10
Hyatt Place, KOP, PA		-	1,133	7,267		-	3,908	1,133	11,175	12,308		(3,791)	8,517	08/17/10
Holiday Inn Express, Wall Street, NY		-	12,152	21,100		-	186	12,152	21,286	33,438		(1,959)	31,479	05/07/10
Hampton Inn, Washington, DC		-	9,335	58,048		-	1,102	9,335	59,150	68,485		(5,031)	63,454	09/01/10
Courtyard, Alexandria, VA		(23,755)	6,376	26,089		-	2,465	6,376	28,554	34,930		(5,700)	29,230	09/29/06
Sheraton, Wilmington South, DE		-	1,765	16,929		-	1,068	1,765	17,997	19,762		(1,932)	17,830	12/21/10
Holiday Inn, Water Street, NY		-	7,341	28,591		-	217	7,341	28,808	36,149		(1,814)	34,335	03/25/11
Capital Hill Suites Washington, DC		(27,119)	8,095	35,141		-	2,801	8,095	37,942	46,037		(2,955)	43,082	04/15/11
Courtyard, LA Westside, CA		(30,000)	13,489	27,025		-	1,795	13,489	28,820	42,309		(1,884)	40,425	05/19/11
Courtyard, Miami, FL		(60,000)	35,699	55,805		1	51	35,700	55,856	91,556		(2,971)	88,585	11/16/11
The Rittenhouse Hotel, PA		-	7,108	29,556		-	7,486	7,108	37,042	44,150		(2,513)	41,637	03/01/12
The Boxer, Boston, MA		-	1,456	14,954		-	1,419	1,456	16,373	17,829		(759)	17,070	05/07/12
Holiday Inn Express, Manhattan, NY		-	30,329	57,016		-	713	30,329	57,729	88,058		(2,276)	85,782	06/18/12
Hyatt, Union Square, NY		(55,000)	32,940	79,300		-	177	32,940	79,477	112,417		(1,445)	110,972	04/09/13
Courtyard, San Diego, CA		-	15,656	51,674		-	40	15,656	51,715	67,371		(754)	66,617	05/30/13
Residence Inn, Coconut Grove, FL		-	4,146	17,456		-	9	4,146	17,466	21,612		(245)	21,367	06/12/13
Winter Haven Hotel, Miami Beach, FL		-	5,400	18,147		-	-	5,400	18,148	23,548		15	23,563	12/20/13
Blue Moon Hotel, Miami Beach, FL		-	4,874	20,354		-	-	4,874	20,355	25,229		17	25,246	12/20/13
Total Investment in Real Estate	$	($515,979)	339,026	1,155,733	$	1	66,902	339,027	1,222,639	1,561,666	$	(149,632)	1,412,034


			Initial Costs			Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carrried at Close of Period				Accumulated Depreciation	Net Book Value
Assets Held For Sale
		Encumbrances	Land	Buildings & Improvements		Land	Buildings & Improvements	Land	Buildings & Improvements	Total		Buildings & Improvements*	Land, Buildings & Improvements	Date of Acquisition
Holiday Inn Exp, Langhorne, PA		(5,881)	1,088	6,573		(111)	(353)	977	6,220	7,197		(1,519)	5,678	05/26/05
Holiday Inn Exp, King of Prussia, PA		(11,628)	2,557	13,339		-	1,738	2,557	15,077	17,634		(3,441)	14,193	05/23/05
Courtyard, Langhorne, PA		(13,834)	3,064	16,068		-	986	3,064	17,054	20,118		(3,632)	16,486	01/03/06
Hyatt House, Bridgewater, NJ		(14,492)	3,373	19,685		(454)	92	2,919	19,778	22,697		(3,965)	18,732	12/28/06

Total Assets Held For Sale	$	(45,835)	10,082	55,665	$	(565)	2,463	9,517	58,129	67,646	$	(12,557)	55,089

Total Real Estate	$	(561,814)	349,108	1,211,398	$	(564)	69,365	348,544	1,280,768	1,629,312	$	(162,189)	1,467,123

*Assets are depreciated over a 7 to 40 year life, upon which the latest income statement is computed

The aggregate cost of land, buildings and improvements for Federal income tax purposes for the years ended December 31, 2013, 2012 and 2011 is approximately $1,575,555, $1,278,318, and $1,362,064 respectively.

Depreciation is computed for buildings and improvements using a useful life for these assets of 7 to 40 years.

See Accompanying Report of Independent Registered Public Accounting Firm


	2013		2012		2011
Reconciliation of Real Estate
Balance at beginning of year	$	1,520,151	$	1,481,433	$	1,291,213
Additions during the year		275,032		167,916		248,358
Dispositions/Deconsolidation of consolidated joint venture during the year		(156,504)		(127,992)		(29,216)
Changes/Impairments in Assets Held for Sale		(9,367)		(1,206)		(141,633)
Investment in Real Estate		1,629,312		1,520,151		1,368,722
Assets Held for Sale, net of impairment		-		-		112,711
Total Real Estate	$	1,629,312	$	1,520,151	$	1,481,433

Reconciliation of Accumulated Depreciation
Balance at beginning of year	$	150,353	$	139,057	$	112,161
Depreciation for year		39,771		35,597		28,229
Changes/Impairments in Assets Held for Sale		51		-		-
Accumulated depreciation on assets sold		(27,986)		(24,301)		(1,333)
Balance at the end of year	$	162,189	$	150,353	$	139,057