

		Initial Costs		Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carried 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

Courtyard, Brookline, MA		-	47,414	-	4,754	-	52,168	52,168	(15,567)	36,601	06/16/05
Residence Inn, Tyson's Corner, VA		4,283	14,475	-	1,962	4,283	16,437	20,720	(5,315)	15,405	02/02/06
Hilton Garden Inn, JFK Airport, NY	(19,034)	-	25,018	-	2,892	-	27,910	27,910	(8,659)	19,251	02/16/06
Holiday Inn Exp, Cambridge, MA		1,956	9,793	-	2,461	1,956	12,254	14,210	(4,467)	9,743	05/03/06
Hyatt House, Gaithersburg, MD		2,912	16,001	-	4,165	2,912	20,166	23,078	(6,475)	16,603	12/28/06
Hyatt House, White Plains, NY		8,823	30,273	-	2,807	8,823	33,080	41,903	(9,761)	32,142	12/28/06
Holiday Inn Exp & Suites, Chester, NY		1,500	6,671	-	322	1,500	6,993	8,493	(1,807)	6,686	01/25/07
Hampton Inn, Seaport, NY		7,816	19,040	-	1,355	7,816	20,395	28,211	(5,271)	22,940	02/01/07
Sheraton Hotel, JFK Airport, NY		-	27,315	-	2,313	-	29,628	29,628	(6,807)	22,821	06/13/08
Hampton Inn, Philadelphia, PA		3,490	24,382	-	5,972	3,490	30,354	33,844	(12,839)	21,005	02/15/06
Duane Street, Tribeca, NY	(8,973)	8,213	12,869	-	1,940	8,213	14,809	23,022	(3,887)	19,135	01/04/08
NU Hotel, Brooklyn, NY		-	22,042	-	1,650	-	23,692	23,692	(5,496)	18,196	01/14/08
Hilton Garden Inn, Tribeca, NY	(46,500)	21,077	42,955	-	935	21,077	43,890	64,967	(8,614)	56,353	05/01/09


		Initial Costs		Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carried 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
Hampton Inn, Washington, DC		9,335	58,048	-	1,256	9,335	59,304	68,639	(9,906)	58,733	09/01/10
Sheraton, Wilmington South, DE		1,765	16,929	-	1,400	1,765	18,329	20,094	(4,880)	15,214	12/21/10
Capitol Hill Suites Washington, DC	(25,000)	8,095	35,141	-	4,261	8,095	39,402	47,497	(7,218)	40,279	04/15/11
Courtyard, LA Westside, CA	(35,000)	13,489	27,025	-	4,834	13,489	31,859	45,348	(5,830)	39,518	05/19/11
Hampton Inn, Pearl Street, NY		11,384	23,432	-	580	11,384	24,012	35,396	(1,637)	33,759	07/22/11
Courtyard, Miami, FL		35,699	55,805	-	23,119	35,699	78,924	114,623	(9,483)	105,140	11/16/11
The Rittenhouse Hotel, PA		7,108	29,556	-	16,428	7,108	45,984	53,092	(10,501)	42,591	03/01/12
Bulfinch, Boston, MA		1,456	14,954	-	1,511	1,456	16,465	17,921	(2,510)	15,411	05/07/12
Holiday Inn Express, Manhattan, NY		30,329	57,016	-	905	30,329	57,921	88,250	(6,887)	81,363	06/18/12
Hyatt, Union Square, NY	(55,750)	32,940	79,300	-	2,253	32,940	81,553	114,493	(7,769)	106,724	04/09/13
Courtyard, San Diego, CA		15,656	51,674	-	1,786	15,656	53,460	69,116	(5,048)	64,068	05/30/13
Residence Inn, Coconut Grove, FL		4,146	17,456	-	7,140	4,146	24,596	28,742	(3,761)	24,981	06/12/13
Hotel Milo, Santa Barbara, CA	(23,701)	-	55,080	-	2,795	-	57,875	57,875	(4,408)	53,467	02/28/14


			Initial Costs			Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carried 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, Midtown East, NY		(44,325)	45,480	60,762		-	180	45,480	60,942	106,422		(3,982)	102,440	05/27/14
Parrot Key Hotel, Key West, FL			57,889	33,959		-	560	57,889	34,519	92,408		(2,369)	90,039	05/07/14
Winter Haven Hotel, Miami Beach, FL			5,400	18,147		-	611	5,400	18,758	24,158		(1,512)	22,646	12/20/13
Blue Moon Hotel, Miami Beach, FL			4,874	20,354		-	806	4,874	21,160	26,034		(1,694)	24,340	12/20/13
St. Gregory Hotel, Washington D.C.		(24,946)	23,764	33,005		-	2,889	23,764	35,894	59,658		(1,421)	58,237	06/16/15
TownePlace Suites, Sunnyvale, CA			-	18,999		-	327	-	19,326	19,326		(647)	18,679	08/25/15
Ritz Carlton Georgetown, Washington D.C.			17,825	29,584		-	260	17,825	29,844	47,669		(746)	46,923	12/29/15
Sanctuary Beach Resort, Marina, CA		(14,700)	20,278	17,319		-	430	20,278	17,749	38,027		(409)	37,618	01/28/16
Hilton Garden Inn M Street, Washington D.C.			30,793	67,420		-	16	30,793	67,436	98,229		(1,341)	96,888	03/09/16
Envoy Hotel, Boston, MA			25,264	75,979		-	-	25,264	75,979	101,243		(849)	100,394	07/21/16
Courtyard, Sunnyvale, CA		(40,600)	17,694	53,272		-	-	17,694	53,272	70,966		(266)	70,700	10/20/16
The Ambrose, Santa Monica, CA			18,750	26,839		-	89	18,750	26,928	45,678		(56)	45,622	12/01/16
Total Investment in Real Estate	$	($338,529)	$499,483	$1,275,303	$	$0	$107,964	$499,483	$1,383,267	$1,882,750	$	($190,095)	$1,692,655


			Initial Costs			Costs Capitalized Subsequent to Acquisition		Gross Amounts at which Carried 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, Greenbelt, MD			2,615	14,815		-	2,290	2,615	17,105	19,720		(6,131)	13,589	07/16/04
Hyatt House, Pleasant Hill, CA		(20,160)	6,216	17,229		-	3,025	6,216	20,254	26,470		(5,611)	20,859	12/28/06
Hyatt House, Pleasanton, CA		(14,490)	3,941	12,560		-	3,530	3,941	16,090	20,031		(5,138)	14,893	12/28/06
Hyatt House, Scottsdale, AZ		(16,778)	3,060	19,968		-	3,535	3,060	23,503	26,563		(7,200)	19,363	12/28/06
Courtyard, Alexandria, VA			6,376	26,089		-	2,622	6,376	28,711	35,087		(8,337)	26,750	09/29/06

Total Assets Held For Sale	$	(51,428)	22,208	90,661	$	-	15,002	22,208	105,663	127,871	$	(32,417)	95,454

Total Real Estate	$	(389,957)	521,691	1,365,964	$	-	122,966	521,691	1,488,930	2,010,621	$	(222,512)	1,788,109

*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, 2016, 2015 and 2014 is approximately $1,926,585, $1,848,773 and $1,836,861, 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


		2016		2015		2014
Reconciliation of Real Estate
Balance at beginning of year	$	1,999,438	$	1,864,382	$	1,629,312
Additions during the year		372,011		135,056		333,889
Dispositions/Deconsolidation of consolidated joint venture during the year		(360,828)		-		(98,819)
Total Real Estate	$	2,010,621	$	1,999,438	$	1,864,382

Reconciliation of Accumulated Depreciation
Balance at beginning of year	$	237,129	$	189,889	$	162,189
Depreciation for year		46,078		47,240		43,218
Accumulated depreciation on assets sold		(60,695)		-		(15,518)
Balance at the end of year	$	222,512	$	237,129	$	189,889