Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? January 26, 2009

Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? Moderator Bidjaan Kassam – CBRE Hotels Dallas, VP Bidjaan Kassam – CBRE Hotels Dallas, VPPanelists Perry Molubhai – Atlantic Hotel Group, Managing Director Perry Molubhai – Atlantic Hotel Group, Managing Director David Copeland – CBRE Retail Services Dallas, VP David Copeland – CBRE Retail Services Dallas, VP Steve Holt – One World Bank, CEO Steve Holt – One World Bank, CEO Karam Ali – Alliance Originator Karam Ali – Alliance Originator

Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? Hotel Market 2009 Forecast Hotel Market 2009 Forecast Hotel Owner Perspective Hotel Owner Perspective Retail Market Overview Retail Market Overview Lending in 2009 Lending in 2009 Investing in Alliances Investing in Alliances Question and Answer Question and Answer

Bidjaan Kassam Vice President CB Richard Ellis Hotels Dallas, Texas HOTEL MARKET 2009 FORECAST

Perry Molubhai Managing Director Atlantic Hotel Group HOTEL OWNER PERSPECTIVE

David Copeland Vice President CB Richard Ellis Retail Services Dallas, Texas RETAIL MARKET OVERVIEW

Retail Bankruptcies

New Grocers

13 ISMAILI BUSINESS CONFERENCE REGIONAL Steve Holt, President and C.E.O.

14 The views expressed are those of Steve Holt and should not be attributed to One World Bank.

15 The views expressed are those of Steve Holt and should not be attributed to One World Bank. What can Uncle Sam do for you... TARP, CPP, Tax Relief and the alphabet soup

The views expressed are those of Steve Holt and should not be attributed to One World Bank. “Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” – Groucho Marx

The views expressed are those of Steve Holt and should not be attributed to One World Bank. What’s the Good News?

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Panera Is One Restaurant Looking For Positive Things In 2009 January 22, 2009 “Panera Bread Co., the chain of 1,250 bakery-cafes, plans to take advantage of its debt-free balance sheet and the U.S. real estate slump to open as many as two locations a week in 2009, said Chief Executive Ronald Shaich.” teconomy/story/ A661C F0016CFBC?OpenDocu ment

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Consumer Prices Fall Again In December January 16, 2009 Consumer Prices Fall For Third Month In December - For the third month in a row consumer prices declined for the slowest increase of prices in 50 years. The CPI (consumer price index) fell.7% in December. Excluding energy and food, which have the greatest impact on the number, the CPI was nearly flat. So I’m assuming that the continued drop in gas contributed to the decline. While this does not mean we’re out of the woods, it does bode well for those with money to spend. Greater purchasing power can often spur additional consumption, particularly if the expected stimulus plan goes into effect in the first quarter.

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Fox Reports Credit Markets Beginning to Thaw January 15, 2009

The views expressed are those of Steve Holt and should not be attributed to One World Bank.  30-year conventional mortgage rate hits 5.10% during week of January 2, 2009, the lowest since 1972  Refinancing activity is up 137% from a year ago.  Mortgage applications are up 62% from a year ago  Home sales in California are up 83% from last year  Housing affordability, due to mortgage rates, income growth, and lower housing prices, has move up sharply and is not far from its early ‘70s high.

The views expressed are those of Steve Holt and should not be attributed to One World Bank. What does it take to get a loan in the current environment?

The views expressed are those of Steve Holt and should not be attributed to One World Bank. It's Best To... Be Prepared

Commercial Underwriting Guidelines

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Ratios, Ratios And Even More Ratios Commercial Underwriting Guidelines

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Debt Service Coverage Ratio Commercial Underwriting Guidelines Minimum 1.25 Preferred

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Debt Service Coverage STRESS TEST INTEREST RATE +6% RENTAL INCOME – 25% OCCUPANCY  25%

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Loan to Value Commercial Underwriting Guidelines

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Loan to Value (LTV) MINIMUM 75% PREFERRED 70% OWNER FINANCED SECOND

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Credit Worthiness Commercial Underwriting Guidelines

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Personal credit of principals will be evaluated Credit Worthiness

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Property Analysis Commercial Underwriting Guidelines

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Key components of the analysis: Quality, condition and age of the property Location and accessibility of the property Terms and length of the leases Quality of tenants Operating history – income and expenses Occupancy/vacancy ratios Fair Market Value and Fair Market Rent, as determined by the appraisal, will be analyzed and compared to the property operating history.

The views expressed are those of Steve Holt and should not be attributed to One World Bank.

MAKE IT HAPPEN

The views expressed are those of Steve Holt and should not be attributed to One World Bank. “The next few months are among the most important in U.S. history. Because of the financial crisis, Barack Obama has the bi-partisan support to spend $1 trillion in stimulus. But we must make certain that every bailout dollar, which we’re borrowing from our kids’ future, is spent wisely..... If we allow this money to be spent on pork, it will be the end of us.” - Thomas L. Friedman, New York Times, December 24, 2008

The views expressed are those of Steve Holt and should not be attributed to One World Bank. Questions

The views expressed are those of Steve Holt and should not be attributed to One World Bank. We’re here to help. Your Bank – Your Partner One World Bank

Karam Ali President Compass Investment Group MicroVenture ISA Houston Jubilee Investor’s Group Houston, Texas INVESTING IN ALLIANCES