| 1E - DSCR < 1.20. The loan is secured by a 213 room limited service hotel in Sherman Oaks, CA built in 1966; renovated in 2005. TTM ending 06/30/2009 is .89 with an occ of 65.75%, ADR of $163.00, & RevPar of $107.17. The decline in NCF is a result of a rev/GP decline. According to the Bwr, the decline in GP is due to a decline in the hotel local mkt. Per Bwr, the property\''s RevPar ranks 2nd out of 8 properties in its comp set for the year to date through 06/09 (per currrent STAR report). Bwr noted that this ranking is a notable achievement given that most of the comp set are full service hotels while the subject property is a limited service hotel. Per Bwr, all hotels RevPar in the subject property market are down more than 25% versus last year, but the subject property continues to outperform its competitors, as it has done for several years. Bwr attributes the outperformance to mgt team monitoring of mkt trends, guest service attention, & aggressive sales efforts. Bwr continues to come out of pocket to cover monthly pymts since the property isn''t generating enough cash flow to fully service the debt. Bwr further stated that it appears that they will continue to be able service the debt as long as the economy remains stable. The June 2009 STAR report shows the property Occ, ADR, & RevPar for a running 12 months were 65.6%, $162.34, & $106.48 respectively. Comp set was 65.7%, $145.18, & $95.35, respectively. In response to the downturn in business, Mgt has used room rate optimization, workforce reduction, sharing of duties, & renegotiated all vendor contracts in order to produce a better bottom line for the hotel during the current difficult economic situation. Per Bwr, operating expenses have been cut as much as possible without adversely affecting the service to the guests. Mgt further noted that the owners have invested over $1.625MM in the hotel between loan inception of 11/07 - 02/09. Bank of America will continue to monitor the loan.
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