DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2012

DISCONTINUED OPERATIONS

NOTE 5 -                      DISCONTINUED OPERATIONS

The Company has reclassified its consolidated financial statements of operations for the three months ended March 31, 2012 and 2011 to reflect discontinued operations of three consolidated hotel properties classified as held for sale during this period pursuant to the plan for hotel dispositions.  This reclassification has no impact on the Company’s net income or the net income per share.

Condensed results of operations for these hotel properties included in discontinued operations are as follows:

	2012			2/14/11 to 3/31/11			1/1/11 to 2/13/11
REVENUE	$	976,482		$	516,293		$	516,293
EXPENSES
Rooms		334,644			178,862			178,862
Other direct		113,705			66,916			66,916
Other indirect		293,771			145,799			145,798
Corporate general and administrative		18,165			10,214			-
Loss on impairment of assets		932,000			-			-
Depreciation and amortization		256,605			129,901			129,902
		1,948,890			531,692			521,478
INCOME FROM OPERATIONS		(972,408	)		(15,399	)		(5,185	)
OTHER INCOME (EXPENSE)
Interest expense		(69,138	)		-			(176,610	)
INCOME (LOSS) BEFORE TAXES		(1,041,546	)		(15,399	)		(181,795	)
INCOME TAX (EXPENSE) BENEFIT		15,236			-			(13,795	)
INCOME (LOSS) FROM
DISCONTINUED OPERATIONS	$	(1,026,310	)	$	(15,399	)	$	(195,590	)
NET INCOME (LOSS) FROM DISCONTINUED
OPERATIONS ATTRIBUTABLE TO
NONCONTROLLING INTEREST	$	(277,322	)	$	(4,161	)	$	(52,851	)
NET INCOME (LOSS) FROM DISCONTINUED
OPERATIONS ATTRIBUTABLE TO
COMMON STOCKHOLDERS/MEMBERS	$	(748,988	)	$	(11,238	)	$	(142,739	)