R&R Global Hospitality

PERFECT STORM WARNING!
Forecast Calls For Largest Wave of Hotel Foreclosures in History

Most agreed during Janaury 2010's ALIS Conference that looming somewhere out there is a Perfect Storm that will bring down upon the hotel indsurty the largest wave of foreclosures in modern history.

The following are few condtions that make a Perfect Storm possible:

1. No end in site of downturn economy = continued depression of occupancy and especially ADR
   Over $100 million a day in hotels going into default
2. Lenders reluctant to foreclose on assets because of concern of placing bad debt on their balance sheets
3. Only active buyers in market are vultures
4. Those who do wish to buy one off deals face high cost of money
5. Traditional debt hard to find, high debt/equity ratio
6. Difficulty valuing assets on trailing 12 or 24

HERE ARE THREE QUESTIONS TO DECIDE IF YOU WILL BE READY FOR THE BIG ONE:

1. Has your asset or management team ever sailed safely through a gale force 6 storm?
2. Are you certain the Captain of your ship has every hatch battened down and rope secured for rough seas ahead?
3. Is the Coast Guard Ship "Hotel Receiver" on its way to save you and your cargo?

If you answered NO to any of the above questions I suggest you pop a flare so I can arrange to have R&R Global deploy our Rescue Task Force Signature Partners and save your asset. For a "Free Life Vest" fitting contact: Russ Dazzio Chairman R&R Global Hosptiality (626) 792.0749 Direct (626) 695.7736 Cell rdazzio@rr-global.com