| 1E - DSCR < 1.20 and 1F- DSCR < 1.40 and <= 75% U/W DSCR. The loan is secured by a 59 room hotel property in Anaheim, CA built in 1963 and renovated in 2007. The property was inspected on 09/10/08; rated in Good condition. The TTM 03/09 NCF DSCR is 1.05 with an occupancy of 76.01%, ADR of $76.37, and RevPar of $58.05. The decline in NCF is a result of a revenue decline. Ann 2009 revenues have declined 10% from YE 2008. YTD 03/09 revenues show a 19% decline from YTD 03/08. Per Bwr, revenues are down due to current economic climate which led to less coventions booked at hotel, and a room rate reduction (4th Night Free and percentage off best available rate) to compete with the other hotels. Sales Efforts include strong relationship with long term business in the hotel such as Getaway Today FIT wholesaler, third party internet channels and past groups. Per Bwr, the maintenance and introduction of new markets to increase revenue has been established from the start of the year and include: Utilized past contacts, re-visited old accounts and database listings on file, Open new market sources for the hotels which includes the sports market, music bands, senior market and the Asian groups market, source targets on feeder markets with participation on sales mission and mailers with the hotel co-op program, opened new channels for third party internet business (TPI), and value added promotions for both leisure and convention traveler for the Anaheim Convention Center. Mkt/adv include AAA tourbook, Travel discount guide, hotel coupon guide as well as the 50% off clubs such as The Entertainment Card, ITC-50 and Quest International. The 06/20/09 STAR report shows that the property is above the comp set in occ. Property Occ, ADR, and RevPar were 84.5%, $76.73, & $64.84, respectively. Comp set was 78.5%, $87.13 & $68.41 respectively. Bank of America will continue to monitor the loan.
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