Acquisition – Investment Criteria

Phoenix American Hospitality (PAH) is an opportunistic hotel fund manager that believes that the current economic and real estate environment has created acquisition opportunities in select markets. We purchase hotels in areas where anticipated new construction is difficult due to high construction costs, availability of top-tier franchises have already been identified and future hotel zoning sites do not present competition. The ability to profit in an opportunistic cycle is based upon our value enhancement strategy.

A sound acquisition policy followed closely by Phoenix American's ability and experience to execute that policy.

Acquisition

PAH is focused on investing in both select and full-service hotel properties with the following basic criteria:

Stick With Strong Brands

LIMITED NEW COMPETITION

Major franchises already in the area, which eliminates any unforeseen future competition

POSITIVE HISTORY

Already making money – Positive cash flow

POSITIVE MARKET OUTLOOK

Already a leader among their competitors

LOCATION, LOCATION, LOCATION

Urban Markets with Business Travel Focus

PRICE

Purchase below what a new hotel would cost