| 1F- DSCR < 1.40 and <= 75% U/W DSCR. The loan is secured by a 115 room Hilton Garden hotel in Sarasota, FL built in 2001. The property was inspected on ; rated in Good condition. The TTM 03/31/2009 NCF DSCR is 1.28 with an occupancy of 61.62%, ADR of $144.19, and RevPar of $88.85. The DSCR drop from U/W is a result of decreased revenues. TTM 03/31/2009 revenues have dropped 26% from U/W. YTD 02/28/09 occupancy shows a 26% drop from YTD 02/28/08. The 06/09 STAR report indicates that the property occ, ADR, & RevPar were 66.8%, $114.39 & 76.47, respectively. Comp Set Occ, ADR, & RevPar were 62.3%, $112.07 & $69.77, respectively. Per Bwr, NCF decline is a result of of the current economy. The borrower indicated that the market is very slow; and bookings/Reservations have continued to decrease during Q2- 2009. Per Bwr, the market is driven by sporting events and vacationers; and, Sarasota mkt is feeling the weight of a recessed economy, as fewer people are vacationing. Per Bwr, because of the drop in demand for vacation spaces, there is an abundance of supply in the market. Bwr further indicated that beachfront condominium spaces that have been difficult to reserve in the past are more readily available and offer a superior location to the subject property. The property is marketed through brand promotion, a $15,000 online marketing campaign through Thayer Interactive Global, & a campaign through Hilton Revenue Management. Per Bwr, the American and Hilton have focused on enhancing their product by upgrading furnishing, rather than trying to reduce rates. Bank of America will continue to monitor the loan.
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