| 1E - DSCR <1.20 (lodging); 4B-EGI<80% of UW & DSCR <1.20(lodging). The loan is secured by a 100 room hotel located in Huntersville, NC that was built in 2000. The property was last inspected on 5/22/09 with a Good rating. The 2Q09 NCF DSCR is 0.54 with occupancy of 47%. The 1Q09 NCF DSCR was 0.25 with occupancy of 40%. The YE 2008 NCF DSCR was 1.18 with occupancy of 59.44% (ADR of $62.57 and REVPAR of $37.19). Although expenses have decreased since YE07 and UW, they have not decreased enough to make up for the decrease in revenue. The Primary Servicer was contacted regarding the borrower\''s plan to increase occupancy and responded that the DSCR decline is due to lower revenue generated by the property. Occupany decreased 32.77% over the first 3 months of 2009 in comparison with occupancy as of year-end 2008. The decreased performance at the property is due to a decline in travel in the area because of the economic recession. Marketing of the property includes: 1) A National Choice Hotel marketing campaign via mapquest, hotels.com, expedia, and other; 2) Interstate guides; 3) AAA guides; and 4) Direct marketing with companies and businesses that travel through the area. Borrower revised the 2009 budget to reflect a 10% decrease in revenue for the year. Bank of America will continue to monitor this loan.
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