BAYWOOD HOTELS IS ONE OF THE NATION’S FASTEST

BAYWOOD HOTELS IS ONE OF THENATION’S FASTEST GROWING,PRIVATELY OWNED HOTEL COMPANIES,HOME2 SUITES BY HILTONCHARLOTTESVILLE DOWNTOWNCharlottesville, VirginiaWITH OVER 1 BILLION IN ASSETS.THE KEY TO BAYWOOD’S SUCCESSAS MANAGERS, EMPLOYERS ANDDEVELOPERS IS THEIR ABILITY TOAC LOUNGE LOCATED INSIDEAC HOTEL MIAMI AIRPORTWEST DORALMiami, FloridaMARRIOTT’S 1,000THOPENED FAIRFIELDCONTINUALLY OFFER SOME OF THEMOST INNOVATIVE SOLUTIONSIN THE HOTEL INDUSTRY.HILTON GARDEN INN MIAMI BRICKELL SOUTHMiami, FloridaFAIRFIELD INN & SUITES DENVER TECH CENTER NORTHDenver, Colorado

CorporateOffice Locations Columbia, MD (Headquarters) Rochester, NY Denver, CO San Antonio, TX Miami, FL Herndon, VABaywood Hotels’ FootprintDiagram reflects operating hotels and hotels in the development pipeline.

Baywood HotelsBaywood is defined by focused vision,strong corporate values, disciplinedlong-term investment strategy,development expertise and hands-onasset management.Baywood Hotels and its affiliatesemploy over 3,000 associates in thehospitality industry.

DevelopmentAt Baywood Hotels, our hotel development efforts arefirmly rooted in proven performance. We pride ourselvesin producing exceptional results for the existing propertiesin our portfolio and our years of experience deliveringsuccessful hotel projects.Our business plan relies on our finely tuned abilityto identify and develop properties based on ourfundamental investment criteria: Strategic Site Selection Strong, Established Markets High Barriers To Entry Optimal Concept & Brand Innovative DesignRESIDENCE INN NEW ORLEANS ELMWOODElmwood, Louisiana Premium Product & Value Intense Development Supervision Development Risk AnalysisWith a vision for identifying profitable redevelopmentprojects in key markets, Baywood’s in-house technicalexpertise includes pre-construction and constructionservices, interior design, purchasing, and projectmanagement.Pre-Development Securing entitlements and building permits Feasibility analysis Managing consultants Product design ProcurementHAMPTON INN MARATHON FLORIDA KEYSMarathon, Florida

New ConstructionAt Baywood Hotels, every new development project isdesigned, capitalized and built for long-term success.Unlike many ‘fee-for-service’ developers, we value designand quality of our projects and do not base our timelinestrictly off of construction deadlines and meeting budget.Being hoteliers first and foremost, we look at everyproject from that perspective. Our projects must alsoHILTON GARDEN INN SAN ANTONIO DOWNTOWNSan Antonio, Texasachieve our high standards of guest satisfaction, meetfinancial projections, and maintain a high level of qualityover the investment period. With Baywood, you can besure that all development decisions are based upon theirlong-term impact on ownership.HILTON GARDEN INN SAN ANTONIO DOWNTOWNSan Antonio, Texas“ Baywood is one of those truly unique lodging companies.Their leadership team is 2nd to none, they know where andhow to build great hotels on time and on budget and theoperations team takes care of the guest while producingsuperior returns. On top of all this, we love working with them.The Baywood team is filled with genuinely nice and honestpeople. They are not just business partners, they are friends.”— BILL FORTIER, Senior VP of Development,The Americas, Hilton WorldwideHILTON GARDEN INN SAN ANTONIO DOWNTOWNSan Antonio, Texas

RedevelopmentBaywood acquired its first distressed asset in Richmond,Virginia in 1991 and since then has completed over 500million in additional projects. These include but are notlimited to troubled, underperforming properties and historicredevelopments. In each case, Baywood’s meticulousplanning, innovative design and flawless execution givesBaywood the ability to turn an underperforming propertyinto a truly profitable asset.Some of our recent redevelopment projects include: Fairfield Inn & Suites Alexandria West Landmark,Alexandria, VirginiaHOLIDAY INN EXPRESS & SUITESCOLLEGE PARK - UNIVERSITY AREACollege Park, Maryland Hilton Garden Inn Miami South Beach Miami, Florida Hilton Garden Inn San Antonio Airport SouthSan Antonio, Texas Holiday Inn Express & Suites College ParkUniversity Area, College Park, MarylandHILTON GARDEN INNMIAMI SOUTH BEACHMiami Beach, Florida Home2 Suites by Hilton Atlanta Midtown, Georgia“ Baywood Hotels and IHG have an outstanding relationshipthat has continued to grow and expand over the years. Weappreciate Baywood’s commitment to building and operatinggreat hotels and taking excellent care of both their guests andcolleagues. Just as important, Baywood continues to shareits knowledge and experience with their fellow franchiseesby participating and making terrific contributions to IHG’sadvisory boards on such important initiatives as Holiday InnExpress Formula Blue and the launch of IHG’s newest brand,avid hotels. All of us at IHG look forward to working with andsupporting Baywood as they continue to grow with IHG.”— JOEL EISEMANN, Chief Development Officer,InterContinental Hotels Group (IHG)

HOMEWOOD SUITES & HAMPTONWASHINGTON DC NOMA UNION STATIONWashington DCInvestmentsThe cyclical nature of business is always challenging. Thisis especially true in real estate and hotel development,which involve long-term investments based on what areoften short-term facts.At Baywood Hotels, we believe that successfuldevelopers are uncompromising in their investmentstandards during growth periods, so they will have theability to act on the opportunities that arise in periods ofdecline.That’s why we continuously strive to make sound longterm decisions, while maintaining the flexibility to diversifyand quickly adapt to those inevitable changes that oftendisrupt even the most well managed project.RESIDENCE INN LUBBOCK SOUTHWESTLubbock, Texas

Management ServicesAt Baywood Hotels, we’re known for our ‘hands-onapproach’ to managing our properties. By empoweringeach of our associates on the property level and backingthem up with the tireless support of our corporate office,we have developed a decidedly proactive approach tocustomer service. It’s one that recognizes that providingTOWNEPLACE SUITES COLLEGE PARKCollege Park, Marylandsuperior guest service is the key to profitability and lastingsuccess.This fundamental philosophy guides our daily operationsand helps both our corporate and local propertyassociates to develop a deeper understanding ofeach hotel, the local community it serves and, mostimportantly, the expectations of both the clientele and theassociates who serve them.Our In-house services include, but are not limited to:CANOPY BY HILTON ITHACA DOWNTOWNIthaca, New York Accounting Revenue Management Human Resources Investor ReportingSales and Marketing ComplianceIt’s a fact that a hotel operation is only as successful as its Employee Training and Wellness Programssales and marketing strategy. Marketing E-CommerceWe believe that an effective strategy needs to beinsightful, flexible and, above all, comprehensive if itis to successfully guide a hotel’s marketing efforts for the“Marriott’s business model is built on long term relationshipsand we value our partnership with Baywood Hotels.Baywood’s commitment to developing high quality hotels,while balancing the needs of their associates and guestsmakes them an exemplary partner for Marriott.”— ERIC JACOBS, Chief Development Officer, North America Marriott Select Brandscoming year.Our strategies are based on realistic goals, up-to-dateinformation and an in-depth knowledge of the localmarket. They are designed to help every hotel propertyproduce incremental increases in both operating revenueand bottom line profitability.

Delivering on theBrand PromiseAt Baywood Hotels, we’re proud of the high-quality,multi-branded, and select-service properties werepresent.You can rest assured that every Baywood associate ateach of these new or recently renovated properties takesprofessional pride in ensuring that our guests receive thefriendliest experience possible.HOLIDAY INN EXPRESS & SUITESSAN ANTONIO NORTH WINDCRESTWindcrest, TexasWe strive for endless involvement and communicationwith all brands; participating on over ten franchiseadvisory boards. We are especially proud of thesuccessful, professional partnerships we have built withmany of the finest names in the hospitality industry,including: Marriott Hilton InterContinental Hotels Group (IHG)We consider the strength of these brand alliances as atestament to Baywood’s unwavering belief in the valuesHAMPTON INN & SUITES DENVER TECH CENTER SOUTHCentennial, Coloradoof commitment, teamwork and mutual respect.B AY W O O D H OT E L S9130 Guilford Road, Columbia, MD 21046tel 301.345.8700 fax 301.345.8701invest@baywoodhotels.com BaywoodHotels.comRESIDENCE INN DENVER AIRPORT CONVENTION CENTERDenver, Colorado

Community OutreachBaywood is fully committed to being good corporate citizens, giving back tothe community and constantly challenging ourselves to exceed our effortseach year.The BEAR initiative seeks to contribute our part to local communitiesmaking them a better place. Since its inception, BEAR has contributed over 500,000 to communities through various partnerships and much more involunteered time.National Miracle in a Bottle FundraiserBaywood has branded our very own premium drinking water to be sold ineach of our hotels nationwide with 100% of its profits donatedto the selected organization. On average, our water bottlesales have raised 70,000 in donations per year.

OPTIMIZING HOTEL OFFERINGSTO MAXIMIZE VALUE IN EACH MARKETBAYWOOD HOTELS9130 Guilford Road, Columbia, MD 21046tel 301.345.8700 fax 301.345.8701invest@baywoodhotels.com baywoodhotels.com

Diagram reflects operating hotels and hotels in the development pipeline. Baywood Hotels Baywood is defined by focused vision, strong corporate values, disciplined . sales and marketing strategy. We believe that an effective strategy needs to be insightful, flexible and, above all, comprehensive if it .