| 1E - DSCR <1.20. The loan is secured by a 657 rooom hotel located in Washington, DC that was built in 1925 and renovated in 2007. The property was last inspected on 10/17/08 with an Excellent rating. The 1Q09 NCF DSCR is 0.77x. The YE 2008 NCF DSCR is 0.66 with occupancy of 71%. Per the Primary Servicer, the YE 2008 NOI remained largely unchanged from YE 2007 results, despite completion of renovations. While occupancy is faltering by about 5% from the comp set, the property is beating its competitors in ADR and RevPar on a trailing 12-month basis. Per the Borrower, their plan to increase occupancy and cash flow is through a combination of revenue generating and cost containment initiatives. On the cost containment side, enhanced labor management, targeted adjustments in service offerings, and an overall focus on expense control throughout the operation, targeting restructuring of the hotel\'s staffing, particularly in the Food & Beverage department, which will have significant benefits to the efficiency, with no detrimental impact to guest service. On revenues, they are focused on appropriately marketing, selling, and pricing the unique Mayflower experience. They are pursuing some contract business, providing a stable base of business and give them the opportunities to better yield rates, particularly during compression periods. They have been reviewing their pricing & strategy on the weekends. Their forward booking pace for groups in future years has been strong and is showing positive trends. They are focused on improving their business mix, to shift out of government and other discounted segments into rack/corporate and higher rated segments, that are currently impacted by a competitive environment & the continued effects of the economic downturn. Bank of America will continue to monitor this loan.
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