We've already experienced marked changes at these properties. The renovation process is already underway at each property, staff re- training has been implemented and our new marketing plans have been engaged. We expect these and other alterations to quickly push these hotels to market leadership positions in their respective markets.

Morris Lasky

Already Changes Experienced Marked Process Properties Property Renovation Staff Training Underway

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The benefits of our renovation program are accelerating. By the end of 2005, nearly every property in our portfolio had significant renovation work completed within the past two years. We believe that our portfolio of hotels now is well positioned for continued future growth.

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But as to its impact on our operational effectiveness and what's already underway here, it's negligible.

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