1. NAIOP Presentation Pinnacle Advisory GroupPinnacle Realty Investments Rachel J. Roginsky, ISHC Pinnacle Advisory Group 76 Canal Street Boston, MA 02114 Telephone: 617-722-9916 Fax: 617-722-9917 rroginsky@pinnacle-advisory.com

2. Lodging Statistics National Boston / Cambridge Suburban Boston

3. Total United States Room Supply/Demand Percent Change Twelve Month Moving Average To Dec 2002 Source: Smith Travel Research

4. Total United States Room Demand Percent Change Jan 2000 – Dec 2002 Source: Smith Travel Research

5. Total United States Occupancy and ADR Twelve Month Moving Average To Dec 2002 Source: Smith Travel Research

6. Top 25 Markets Occupancy Percent December 2002 YTD Source: Smith Travel Research INDUSTRY AVERAGE 59.2 %

7. Top 25 Markets ADR Percent Change December 2002 YTD Year over Year Source: Smith Travel Research INDUSTRY AVERAGE -1.5 %

8. Top 25 Markets Room Supply Percent Change December 2002 YTD Year over Year Source: Smith Travel Research INDUSTRY AVERAGE 1.8 %

9. Boston / Cambridge Occupancy 1989 – 2002 Source: Pinnacle Advisory Group

10. Boston / Cambridge Average Room Rate 1989-2002 Source: Pinnacle Advisory Group

11. Boston / Cambridge Lodging Supply 1989 - 2002 Source: Pinnacle Advisory Group

12. Suburban Boston Occupancy 1995-2002 Source: Pinnacle Advisory Group

13. Suburban Boston Average Room Rate 1995 - 2002 Source: Pinnacle Advisory Group

14. Suburban Boston Lodging Supply 1995 - 2002 Source: Pinnacle Advisory Group

15. Key Boston Lodging Market Issues New Supply Pipeline Boston Convention and Exhibition Center Changes in Demand

16. Boston / Cambridge New Supply Pipeline Compound Annual Growth of 1.9% Between 1989 and 2002 Inventory Growth of 4.9% Projected in 2003 Projected Compound Annual Growth of 5.3% between 2002 and 2007

17. The Pipeline - Boston/Cambridge Commonwealth Hotel–150 Rooms - April 2003 Embassy Suites–273 Rooms - February 2003 Hotel Marlowe -236 Rooms - March 2003 Residence Inn – 168 Rooms – May 2003 Jurys Doyle – 220 Rooms – April 2004 Hotel Onyx– 112 Rooms – July 2004 Charles Street Jail-300 Rooms – July 2004 Hampton Inn Crosstown – 175 Rooms – July 2004 Robin Brown Hotel –168 Rooms - Spring 2006

18. The Pipeline – Seaport District Renaissance – 438-Rooms April 2005 Sheraton HQ – 800-Rooms September 2005 Intercontinental – 420-Rooms - July 2005 Grand Hyatt – 500-Rooms – January 2006 Anthony’s Pier 4 – 250-Rooms – April 2007

19. Boston Convention and Exhibition Center - BCEC Projected Opening - June 2004 HQ Hotel Projected Opening September 2005 24 Definite Events 600,000 Room Nights Upon Stabilization Currently 128,000 definite room nights on books for 2006

20. Convention Center Related Demand In 2000 the Hynes Generated 400,000 Room Nights (7 occupancy points for the entire Boston Cambridge market) Upon Stabilization the BCEC is expected to generate approximately 600,000 room nights in addition to 300,000 at the Hynes, which results in a total of 900,000 room nights (11 occupancy points)

21. Boston / Cambridge Demand 2002 (Estimated) Source: Pinnacle Advisory Group

22. The Future…..

23. Factors Affecting Future Demand New Convention Center New Office Supply and Vacancies Logan Modernization Completion of the Big Dig Economy Budget Cuts

24. Boston / Cambridge 2003 Projections 2002 2003Change Occupancy 72% 70%-2 Pts. Rate $165.04 $161.74 -2.0% RevPAR$118.82 $113.21-4.7%

25. Suburban Boston 2003 Projections 2002 2003Change Occupancy 58% 57%-1 Pts. Rate $97.37 $94.42 -2.0% RevPAR$56.47 $54.39-3.7%

26. NAIOP Presentation Pinnacle Advisory Group Pinnacle Realty Investments Rachel J. Roginsky, ISHC Pinnacle Advisory Group 76 Canal Street Boston, MA 02114 Telephone: 617-722-9916 Fax: 617-722-9917 rroginsky@pinnacle-advisory.com