PURCHASE AND SALE AGREEMENT
                         AND JOINT ESCROW INSTRUCTIONS
                         
                         
                         
                         
                          Dated as of November 4, 1996
                                    between
                          UNION SQUARE HOTEL PARTNERS,
                      L.P. a Delaware limited partnership
                                   as Seller
                                   
                                      and
                            HT-HOTEL EQUITIES, INC.
                             a Delaware corporation
                                    as Buyer
                                    
                                    
                                    
           PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS
                         
                         
  This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this
"Agreement") is made as of November 4, 1996, between UNION SQUARE HOTEL
PARTNERS, L.P., a Delaware limited partnership ("Seller"), and HT-HOTEL
EQUITIES, INC., a Delaware corporation ("Buyer"), for the purpose of setting
forth the agreement of the parties and of instructing FIRST AMERICAN TITLE
INSURANCE COMPANY ("Escrow Holder") with respect to the transactions
contemplated by this Agreement.

                             R E C I T A L S
                                    
     A.        Seller is the owner of certain real property located at 345
Stockton Street, San Francisco, California, as more particularly described in
Exhibit A attached hereto and incorporated herein by reference, upon which is
located certain improvements commonly known as the "Grand Hyatt San
Francisco," consisting of a 687 key hotel building  (695 keys including the
six (6) general manager rooms and two (2) business plan center rooms), and
which also contains meeting rooms and banquet facilities, a three-story
commercial building, and service areas (the "Hotel").

     B.        Seller is the owner of certain items of personal property
located in and used in the operation of the Hotel, including, but not limited
to furniture and furnishings, hotel equipment, uniforms and kitchenware.

     C.        The Hotel is leased to and operated by California Hyatt
Corporation ("Operator") pursuant to that certain Agreement and Lease, dated
January 4, 1973, as amended by First Amendment to Lease dated as of August
29, 1986, Second Amendment to Lease dated as of May 1, 1989, Third Amendment
to Lease dated as of June 30, 1992, and Fourth Amendment to Lease dated as of
August 29, 1996, the landlord's interest in such lease having been assigned
by mesne assignments to Seller (as so amended and assigned, and as such lease
may hereafter be further amended, the "Operating Lease").

     D.        Buyer desires to purchase the Property (as hereinafter
defined) and assume the landlord's interest in the Operating Lease from
Seller, and Seller desires to sell the Property and assign the landlord's
interest in the Operating Lease to Buyer, on the terms and conditions set
forth herein.
                            A G R E E M E N T
     NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements set forth herein, and other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Seller and Buyer agree as
follows:


II.                            EFFECTIVE DATE
     This Agreement shall be effective (the "Effective Date") when a fully
executed copy of this Agreement (or a fully executed copy in counterparts) is
deposited with Escrow Holder.  Escrow Holder is hereby instructed to
immediately notify in writing each party to this Agreement of the Effective
Date.

III.                             DEFINITIONS
  The following terms and references shall have the meanings indicated
below:

(a)  "Adjustments" shall have the meaning ascribed thereto in section 9.6(b)
     of this Agreement.
     
(b)  "Agreement" shall have the meaning ascribed thereto in the introductory
     paragraph of this Agreement.
     
(c)  "Assignment and Assumption of Contracts" shall have the meaning ascribed
     thereto in Article III of this Agreement.
     
(d)  "Assignment and Assumption of Operating Lease" shall have the meaning
     ascribed thereto in Article III of this Agreement.
     
(e)  "Balance" shall have the meaning ascribed thereto in Section 4.2(b) of
     this Agreement.
     
(f)  "Bill of Sale" shall have the meaning ascribed thereto in Article III of
     this Agreement.
     
(g)  "Broker" shall have the meaning ascribed thereto in Section 14.2(a) of
     this Agreement.
     
(h)  "Buyer" shall have the meaning ascribed thereto in the introductory
     paragraph of this Agreement.
     
(i)  "Closing" means the consummation of the transactions contemplated by
     this Agreement.
     
(j)  "Closing Date" means the date the Grant Deed is recorded.

(k)  "Closing Statements" shall have the meaning ascribed thereto in Section
     9.8(a) of this Agreement.
     
(l)  "Condemnation Notice" shall have the meaning ascribed thereto in Section
     13.2 of this Agreement.
     
(m)  "Contracts" shall have the meaning ascribed thereto in Article III of
     this Agreement.
     
(n)  "Deposit" shall have the meaning ascribed thereto in Section 4.2(a) of
     this Agreement.

(o)  "Documents" shall have the meaning ascribed thereto in Section 6.4(b)
     of this Agreement.
     
(p)  "Effective Date" shall have the meaning ascribed thereto in Article I
     of this Agreement.
     
(q)  "Equipment Lease" means a personal property lease entered into by
     Seller and covering any items that, if not leased, would constitute
     Personal Property.
     
(r)  "Escrow" shall have the meaning ascribed thereto in Section 9.1 of this
     Agreement.
     
(s)  "Escrow Holder" shall have the meaning ascribed thereto in the
     introductory paragraph of this Agreement.
     
(t)  "Estoppel Agreement" shall have the meaning ascribed thereto in Section
     8.3 of this Agreement.
     
(u)  "Excluded Reports" shall have the meaning ascribed thereto in Section
     5.2(c) of this Agreement.
     
(v)  "FF&E" means furniture, trade fixtures, equipment, machinery,
     appliances, fittings, and other removable articles of personal property
     of every kind and nature that are owned by Seller and used exclusively
     in the operation of the Hotel.  FF&E shall exclude any personal
     property owned or leased by the Operator.
     
(w)  "FF&E Reserves" means all of Seller's funds, reserves, escrows, and
     accounts for the replacement and repair of FF&E which are held in trust
     for Seller by Operator, including, without limitation, the "Fund for
     Replacement of and Additions to Furnishings and Equipment" and the
     "Reserve for Replacement of Operating Equipment," as such terms are
     defined in the Operating Lease.
     
(x)  "Fifth Amendment" shall have the meaning ascribed thereto in Section
     9.3(f) of this Agreement.
     
(y)  "Grant Deed" shall have the meaning ascribed thereto in Article III of
     this Agreement.
     
(z)  "Holiday" shall have the meaning ascribed thereto in Section 14.17 of
     this Agreement.
     
(aa) "Hotel" shall have the meaning ascribed thereto in Recital A of this
     Agreement.
     
(bb) "Hyatt Loan" means the non-recourse loan from Hyatt Corporation to
     Seller governed by that certain Loan Agreement dated May 1, 1989 (as
     amended) and evidenced by that certain Amended and Restated Promissory
     Note dated June 30, 1992 executed by Seller and payable to Hyatt
     Corporation in the original principal amount of $3,217,733, which
     promissory note is secured by that certain Third Deed of Trust, Assignment
     of Rents, Security Agreement and Fixture Filing, dated as of May 1, 1989
     to First American Title Insurance Company, a California corporation, as
     trustee, for the benefit of Hyatt Corporation and encumbering the Property
     (as such deed of trust has heretofore been amended and supplemented) and
     by that certain Third Assignment of Lessor's Interest in Leases, dated as
     of May 1, 1989 (as such assignment has heretofore been amended and
     supplemented) by Seller to Hyatt Corporation.  In connection with the
     transactions contemplated hereby, Buyer shall assume the obligations of
     the borrower under the Hyatt Loan and shall cause Hyatt Corporation to
     release Seller from any and all obligations in connection with the Hyatt
     Loan.
     
(cc) "Improvements" shall have the meaning ascribed thereto in Article III of
     this Agreement.
     
(dd) "Information" shall have the meaning ascribed thereto in Section 5.1(d)
     of this Agreement.
     
(ee) "Land" shall have the meaning ascribed thereto in Article III of this
     Agreement.
     
(ff) "Limited Partner Approval" shall have the meaning set forth in Section
     8.1(a) hereof.
     
(gg) "Limited Partners" means, collectively, the limited partners and unit
     holders of Seller.
     
(hh) "Limited Partner Vote" shall have the meaning set forth in Section
     8.1(a) hereof.
     
(ii) "Limited Partner Vote Notice" shall have the meaning set forth in
     Section 8.1(b) hereof.
     
(jj) "Liquor Licenses" means any government licenses, permits, or other
     authorizations for the sale and/or service of liquor, wine, beer, or
     other alcoholic beverage at the Hotel.
     
(kk) "Meeting" shall have the meaning set forth in Section 8.1(a) hereof.

(ll) "Meeting Notice" shall have the meaning set forth in Section 8.1(b)
     hereof.
     
(mm) "Miscellaneous Property Assets" shall have the meaning ascribed thereto
     in Article III of this Agreement.
     
(nn) "Operating Lease" shall have the meaning ascribed thereto in Recital C
     of this Agreement.
     
(oo) "Operator" shall have the meaning ascribed thereto in Recital C of this
     Agreement.
     
(pp) "Owner's Title Policy" shall have the meaning ascribed thereto in
     Section 6.1 of this Agreement.
     
(qq) "Permits" shall have the meaning ascribed thereto in Article III of this
     Agreement.
     
(rr) "Permitted Exceptions" shall have the meaning ascribed thereto in
     Section 6.1 of this Agreement.
     
(ss) "Personal Property" shall have the meaning ascribed thereto in Article
     III of this Agreement.
     
(tt) "Postponement Notice" shall have the meaning set forth in Section 8.1(b)
     hereof.
     
(uu) "Pritzker Affiliate" shall mean  and include (i) any one or more of the
     direct lineal descendants, natural or adoptive, of Nicholas J. Pritzker,
     deceased, or their respective current or former spouses, (ii) any one or
     more trusts, the principal beneficiaries of which are one or more of the
     persons described in clause (i) above, and (iii) any general or limited
     partnership, corporation or limited liability company, one hundred
     percent (100%) of the voting securities or ownership interests in which
     are owned, directly or indirectly, by one or more of the persons or
     entities described in clauses (i) or (ii) above.
     
(vv) "Pritzker Transferee" shall mean and include any general or limited
     partnership, corporation or limited liability company, at least fifty- one
     percent (51%) of the voting securities or ownership interests in which are
     owned, directly or indirectly, by a Pritzker Affiliate.

(ww) "Property" shall have the meaning ascribed thereto in Article III of this
     Agreement.

(xx) "Proration Escrow" shall have the meaning ascribed thereto in Section
     9.6(d) of this Agreement.

(yy) "Protected Marks" shall mean all trademarks, service marks, trade names,
     logos, designs, and all goodwill appurtenant thereto, owned by Hyatt
     Corporation, a Delaware corporation, or any direct or indirect parent or
     subsidiary of Hyatt (including Operator), or other corporation under
     common control with Hyatt Corporation, or which may be owned by lessees
     under Subleases.

(zz) "Protected Name" shall mean the name "Hyatt", and any variations thereof
     or derivations thereof, whether used alone or in combination with one or
     more other words or names.

     (aaa)  "Proxy Materials" shall have the meaning
             set forth in Section 8.1(c) hereof.

     (bbb)  "PTR" shall have the meaning ascribed thereto in Section 6.2(a)
            of this Agreement.

     (ccc)  "Purchase Price" shall have the meaning ascribed thereto in
            Section 4.1 of this Agreement.

     (ddd)  "Real Property" shall have the meaning ascribed thereto
            in Article III of this Agreement.

     (eee)  "Seller" shall have the meaning ascribed thereto in the
            introductory paragraph of this Agreement.

     (fff)  "Seller's Non-Foreign Affidavit" shall have the meaning ascribed
            thereto in Section 7.1 of this Agreement.

     (ggg)  "Seller's Partnership Agreement" shall mean that certain Second
            Amended and Restated Agreement of Limited Partnership of Shearson
            Union Square Associates Limited Partnership, dated as of
            September 1, 1986.

    (hhh)  "Sublease" means any space lease, license, concession, or other
           such arrangement for the use of space within the Hotel, other than
           the transient use of guest rooms, banquet rooms, dining rooms,
           conference rooms, or other facilities in the Hotel by Hotel guests
           in the ordinary course of Hotel business, including, without
           limitation, those subleases set forth on Exhibit A-1 attached
           hereto.

    (iii)  "Survey" shall have the meaning ascribed thereto in Section 6.2 of
           this Agreement.

    (jjj)  "Title Company" shall have the meaning ascribed thereto in Section
           6.1 of this Agreement.

    (kkk)  "Transfer" shall have the meaning ascribed thereto in Section
           14.3(a) of this Agreement.
       
       
IV.                       PROPERTY SUBJECT TO AGREEMENT

     Seller hereby agrees to sell to Buyer, and Buyer hereby agrees to
purchase from Seller, subject to the terms and conditions set forth herein,
all of Seller's right, title and interest in and to the following
(collectively, the "Property"):

1.   Land - that certain land described in Exhibit A attached hereto, and all
appurtenant rights, privileges, and easements thereto (collectively, the
"Land").  The Land and the Improvements (collectively, the "Real Property")
shall be conveyed from Seller to Buyer pursuant to a Grant Deed (the "Grant
Deed") substantially in the form of Exhibit B attached hereto and
incorporated herein by reference.

2.   Improvements -  those certain buildings, structures, fixtures, and other
improvements, including, without limitation, the Hotel, located on the Land
(collectively, the "Improvements").

3.   Personal Property -  that certain personal property located at and used
exclusively for the operation, maintenance, and management of the Hotel as of
the Closing Date, including, without limitation, the FF&E (collectively, the
"Personal Property").  Notwithstanding anything to the contrary contained in
this Agreement, the Personal Property does not include:  the property leased
by Seller under the contracts described in Schedule II to the Bill of Sale;
all personal property owned by the Operator; all personal property owned by
guests of the Hotel; property owned by any subtenant under any Sublease; and
property owned by any suppliers, vendors or contractors serving the Hotel or
any sublessee. The Personal Property shall be conveyed from Seller to Buyer
pursuant to a Bill of Sale (the "Bill of Sale") substantially in the form of
Exhibit C attached hereto and incorporated herein by reference.

4.   Contracts -  those certain contracts and agreements relating to the
improvement, maintenance, repair, or operation of the Hotel in effect on the
Closing Date, if any, entered into by Seller, including, without limitation,
the Equipment Leases (collectively, the "Contracts").  Seller's interest in
the Contracts shall be conveyed to Buyer pursuant to an Assignment and
Assumption of Contracts, Permits and Miscellaneous Property Assets (the
"Assignment and Assumption of Contracts") substantially in the form of
Exhibit D attached hereto and incorporated herein by reference.  "Contracts"
does not include contracts or agreements entered into by Operator.

5.   Operating Lease -  the Operating Lease as in effect on the Closing Date.
Seller's interest in the Operating Lease shall be conveyed to Buyer pursuant
to an Assignment, Assumption and Indemnity Agreement (the "Assignment and
Assumption of Operating Lease") substantially in the form of Exhibit E
attached hereto and incorporated herein by reference.

6.   Permits - all licenses, franchises and permits obtained by Seller, if any,
used in or relating to the ownership, occupancy or operation of the Property
or any part thereof (the "Permits"), other than those which, under applicable
law or under provisions applicable to any particular Permit in question, are
nontransferable.  Seller's interest in the Permits shall be conveyed to Buyer
pursuant to the Assignment and Assumption of Contracts.

7.   Miscellaneous Property Assets - all contract rights, leases, concessions,
trademarks, service marks, trade names (including the names of restaurants,
lounges and meeting rooms), logos, copyrights, and rights under guaranties or
warranties relating to goods, merchandise or services at or relating to the
Hotel (collectively, the "Miscellaneous Property Assets"), but the
Miscellaneous Property Assets shall not include (and there shall be expressly
excluded) the Contracts, the Operating Lease, the Permits, and the Protected
Name and all Protected Marks. Seller's interest in the Miscellaneous Property
Assets shall be conveyed to Buyer pursuant to the Assignment and Assumption
of Contracts.


V.      PURCHASE PRICE, PAYMENT OF PURCHASE PRICE AND LIQUIDATED DAMAGES

A.   Purchase Price.  Subject to the terms, conditions, and provisions
     contained in this Agreement, Buyer agrees to pay, and Seller agrees to
     accept, as consideration for conveyance of the Property to Buyer, the
     sum of One Hundred Twenty-Six Million Nine Hundred Thousand Dollars
     ($126,900,000) (the "Purchase Price").

B.   Payment of Purchase Price; Deposit.  The Purchase Price shall be paid
by Buyer as follows:

1.   Ten Million Dollars ($10,000,000) (the "Deposit") shall be placed into
Escrow by wire transfer of immediately available funds to Escrow Holder
within one (1) business day following the Effective Date.  Escrow Holder
shall immediately notify Seller by facsimile in accordance with Section 14.1
hereof of Escrow Holder's receipt of the Deposit.  The Deposit shall become
nonrefundable upon deposit into Escrow, except as otherwise provided herein.

2.   The balance of the Purchase Price, subject to adjustments as provided
in Sections 9.6 and 9.7 hereof and taking into account all interest earned on
the Deposit (the "Balance"), shall be placed into Escrow by wire transfer of
immediately available funds to Escrow Holder at least one (1) business day
before the scheduled Closing.  If the purchase of the Property by Buyer
hereunder is consummated, then the Deposit shall constitute a part of and be
applied against the Purchase Price.  If the purchase of the Property by
Buyer hereunder is not consummated, then the Deposit shall either be
returned to Buyer or be paid to Seller in accordance with the provisions
hereinafter set forth.

C.   Allocation of Purchase Price.  Subject to the prorations and adjustments
     hereinafter provided, the Purchase Price shall be allocated as follows:
     $118,556,000 for the Real Property and $8,344,000 for the Personal
     Property.  Notwithstanding the allocation of the Purchase Price, the
     sale of the Property shall be on an all or nothing basis, the sale of
     each item of Property to be conditioned upon the simultaneous sale of
     all other items of Property on a concurrent basis.  Buyer shall have no
     right to purchase, and Seller shall have no right to cause Buyer to
     purchase, less than all of the Property as an entirety in accordance
     with the provisions of this Agreement.  Nevertheless, both Buyer and
     Seller agree that in all public filings and reports, including, without
     limitation, any transfer tax declarations and any federal or state income
     tax returns, the various items of Property shall be valued as herein
     provided or, if not specifically provided for herein, then Buyer and
     Seller shall negotiate in good faith any additional allocations for the
     Property using, to the extent required, the method set forth in section
     1060 of the Internal Revenue Code of 1986 (as amended) and the Treasury
     Regulations promulgated thereunder for purposes of filing Forms 8594 with
     the Internal Revenue Service.

D.   Investment of Deposit.  Escrow Holder shall place the Deposit in money
     market accounts, certificates of deposit, United States government
     obligations, or in a collateralized interest-bearing account or
     accounts, as shall be directed in writing by Buyer and Seller.  All
     interest on the Deposit shall accrue for the benefit of Buyer until the
     Closing. Notwithstanding the foregoing, however, in the event of any
     default by Buyer hereunder, all interest earned on such account shall
     accrue to the benefit of Seller.  Seller shall not be responsible for
     nor bear the risk of loss of the Deposit, and shall not be responsible
     for the rate of return thereon.
     
E.   Liquidated Damages.  IF THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER
IS NOT CONSUMMATED BECAUSE THIS AGREEMENT IS TERMINATED BY SELLER UNDER
SECTION 14.22(d) HEREOF, AND SELLER HAS OTHERWISE SATISFIED ALL MATERIAL
CONDITIONS REQUIRED TO BE SATISFIED BY SELLER ON OR BEFORE THE DATE OF SUCH
TERMINATION, ESCROW HOLDER, WITHOUT ANY FURTHER INSTRUCTION FROM EITHER
SELLER OR BUYER, AND DESPITE ANY INSTRUCTIONS FROM BUYER TO THE CONTRARY,
SHALL PAY TO SELLER THE DEPOSIT (INCLUDING ALL INTEREST EARNED FROM THE
INVESTMENT THEREOF) AND SELLER SHALL RETAIN SUCH AMOUNT AS LIQUIDATED
DAMAGES.  THE PARTIES ACKNOWLEDGE THAT SELLER'S ACTUAL DAMAGES IN THE EVENT
OF A DEFAULT BY BUYER WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO
DETERMINE.  THEREFORE, BY PLACING THEIR SIGNATURES BELOW, THE PARTIES
EXPRESSLY AGREE AND ACKNOWLEDGE THAT THE DEPOSIT (PLUS INTEREST) HAS BEEN
AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES' REASONABLE ESTIMATE OF
SELLER'S DAMAGES IF THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER
IS NOT CONSUMMATED BECAUSE OF A DEFAULT UNDER THIS AGREEMENT ON THE
PART OF BUYER.  THE PARTIES FURTHER ACKNOWLEDGE THAT SUCH LIQUIDATED
DAMAGES HAVE BEEN AGREED UPON AS SELLER'S EXCLUSIVE REMEDY AGAINST
BUYER IN THE EVENT THAT THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS
NOT CONSUMMATED BECAUSE OF A DEFAULT HEREUNDER ON THE PART OF BUYER, PROVIDED
THAT (A) THE FOREGOING SHALL NOT LIMIT SELLER'S RIGHTS OR REMEDIES WITH
RESPECT TO (1) THE OBLIGATIONS OF BUYER UNDER SECTIONS 5.2(c), 14.2(b) AND
14.11 HEREOF, (2) THOSE RIGHTS AND OBLIGATIONS THAT, BY THEIR TERMS, SURVIVE
THE TERMINATION OF THIS AGREEMENT AND (3) DAMAGES OF SELLER RESULTING FROM A
BREACH OF THIS AGREEMENT ON THE PART OF BUYER BUT FOR WHICH SELLER IS NOT
ENTITLED TO THE LIQUIDATED DAMAGES DESCRIBED IN THIS SECTION 4.5; AND (B)
BUYER SHALL ALSO BE RESPONSIBLE FOR THE PAYMENT OF ALL TITLE COMPANY AND
ESCROW CANCELLATION CHARGES.
     NOTHING CONTAINED IN THIS SECTION 4.5 SHALL BE DEEMED TO LIMIT ANY OF
THE INDEMNITIES OF BUYER OR SELLER CONTAINED ELSEWHERE IN THIS AGREEMENT.  IN
THE EVENT THAT THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS
CONSUMMATED, THIS SECTION 4.5 SHALL BE OF NO FURTHER FORCE OR EFFECT.

                              "Seller"
                              UNION SQUARE HOTEL PARTNERS, L.P.,
                              a Delaware limited partnership


                         By:  Union Square/GP Corp.,
                              a Delaware corporation
                        Its:  General Partner


                         By:  s/Jeffrey C. Carter/
                              --------------------
                 Print Name:  Jeffrey C. Carter
                Print Title:  President


                              "Buyer"

                              HT-Hotel Equities, Inc.
                              a Delaware corporation


                         By:
                              ------------------------
                 Print Name:
                              ------------------------
                Print Title:
                              ------------------------


VI.                  "AS IS, WHERE IS" SALE

A.   "AS IS, WHERE IS" Sale.  Buyer acknowledges (i) that Seller owns the
Property but is a passive owner of the Property and has not and does not
directly operate or manage the Property and (ii) Operator, an affiliate of
Buyer, is the operator and manager of the Property.  As an essential
inducement to Seller to sell the Property to Buyer on the favorable terms and
conditions set forth in this Agreement, Buyer acknowledges, understands, and
agrees as follows:

1.   (i) Buyer is (or is controlled by) a sophisticated purchaser who is
familiar with this type of property and Operator, an affiliate of Buyer, has
leased and operated the Hotel under the Operating Lease since 1973; (ii)
except as set forth herein, neither Seller nor any of its agents, brokers,
officers, directors, shareholders, or employees has made or will make any
representations or warranties of any kind whatsoever, whether oral or
written, express or implied, with respect to the Property; and
(iii) Buyer will be purchasing the Property in its "AS IS, WHERE IS"
condition and "WITH ALL FAULTS". Buyer has been afforded the
opportunity to make any and all inspections of the Property
and such related matters as Buyer desired.

2.   In particular, but without limiting the generality of subsection (a)
above, except as set forth herein, neither Seller nor any of its agents,
brokers, officers, directors, shareholders, or employees has made or will
make any representations or warranties, whether oral or written, express or
implied, with respect to the economic value of the Property, adequacy of
utilities serving the Property, the fitness or suitability of the Property
for Buyer's intended uses or the present use of the Property, or the physical
condition, occupation, or management of the Property, its compliance with
applicable statutes, laws, codes, ordinances, regulations, or requirements
relating to occupancy, leasing, zoning, subdivision, removal of architectural
or communications barriers, planning, building, fire, safety, health or
environmental matters (including, without limitation, the presence or absence
of asbestos or toxic or hazardous substances or materials), compliance with
covenants, conditions, and restrictions (whether or not of record), other
local, municipal, regional, state, or federal requirements, or other
statutes, laws, codes, ordinances, regulations, or requirements.

3.   Further, but again without limiting the generality of subsection (a)
above, Seller expressly disclaims and negates, as to the Personal Property
and all of the other Property: (i) any implied or express warranty of
merchantability; (ii) any implied or express warranty of fitness for a
particular purpose; and (iii) any implied warranty with respect to the
condition of the Property, the past or projected financial condition of the
Property (including, without limitation, the income or expenses thereof) or
the uses permitted on, the development requirements for, or any other matter
or thing relating to all or any portion of the Property.

4.   In addition, but again without limiting the generality of subsection (a)
above: (i) all documents, reports, studies and other information or materials
delivered or disclosed to Buyer by Seller (the "Information"), including,
without limitation, that certain Phase I Environmental Site Assessment, dated
as of July 17, 1996 (the "Environmental Assessment"), are being provided to
Buyer for informational purposes only and only as an accommodation to Buyer;
(ii) unless expressly stated otherwise, all of the Information relates to the
period from and after Seller's acquisition of title to the Property, and
Seller is not providing and will not provide any documents, reports, studies,
or other information or materials regarding any aspect of Seller's
relationship with Seller's predecessor(s)-in-title; (iii) Seller has not
made, is not making, and will not make any representation, warranty, or
promise of any kind, express or implied, concerning the accuracy or
completeness of all or any part of the Information; and (iv) any inaccuracy,
incompleteness, or deficiency in any part of the Information shall be solely
the risk and responsibility of Buyer, shall not be chargeable in any respect
to Seller, and shall not form the basis of any claims by Buyer against any
person or entity that prepared, authored, compiled, or created any part of
the Information, such claims being expressly waived and relinquished by
Buyer.  Seller shall provide reasonable assistance (provided that such
assistance shall be at no cost to Seller) to Buyer in obtaining a reliance
letter from the firm which prepared the Environmental Assessment, entitling
Buyer (and Buyer's lender, if any) to rely thereon as if the same had been
addressed to Buyer (and Buyer's lender, if any).

5.   Buyer hereby absolutely and unconditionally waives and releases Seller,
to the fullest extent permitted under law, from and of any and all demands,
claims, actions or causes of action, assessments, losses, damages,
liabilities, costs and expenses with respect to all obligations for or
pertaining to the existence of asbestos, hazardous materials, environmental
contami nation or conditions at, in, on, under or from the Property arising
under or based upon any federal, state, local or foreign laws or regulations,
or based upon common law or otherwise, whether now or hereafter in effect,
including, without limitation, all those provisions of law that exclude or
may exclude unknown or unsuspected claims from general release.  THIS WAIVER
AND RELEASE BY BUYER SPECIFICALLY, BUT WITHOUT LIMITATION, INCLUDES
BUYER'S WAIVER AND RELEASE OF ANY CLAIMS UNDER SECTION 1542
OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES, "A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST
IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR", THE PROVISIONS
OF WHICH BUYER HEREBY SPECIFICALLY ACKNOWLEDGES, AFTER CONSULTATION WITH
LEGAL COUNSEL AND WITH FULL KNOWLEDGE OF THE CONSEQUENCES OF ITS ACTIONS.


          __________ Buyer's initials


6.   To the extent required to be operative, the disclaimers or warranties
contained herein are "conspicuous" disclaimers for purposes of any applicable
law, rule, regulation, or order.

B.   Inspection.

1.   Prior to the date hereof, Seller has permitted Buyer and its
representatives to enter upon and inspect the Property and to conduct soils,
engineering, and any other tests or studies as Buyer desired.  In connection
with such inspections, Seller has provided to Buyer (subject to the
limitations set forth in Section 5.1(d) hereof), copies of any documents,
reports, studies and other information in Seller's possession relating to the
physical condition of the Property and requested by Buyer.  Buyer has and
shall keep the Property free and clear of any mechanic's or materialmen's
liens arising out of any entry, inspection, test, or study conducted by Buyer
or its representatives. If Buyer has not already done so, Buyer shall
promptly restore the Property to its previous condition before any such
inspections, studies, or tests were performed.

2.   If, during such inspections, Buyer or its representatives undertook any
borings or other disturbances of the soil, the soil shall be re-compacted to
its condition immediately before any such borings or other disturbances were
undertaken, and Buyer shall obtain, at Buyer's own expense, a certificate
from a licensed soils engineer that certifies that the soil has been re-
compacted to such condition.

3.   Notwithstanding any general liability or other insurance that may be
maintained by Buyer, Buyer shall indemnify and defend Seller and Operator and
hold Seller and Operator harmless (using counsel reasonably satisfactory to
Seller) from any and all liability, loss, cost, damage, or expense
(including, without limitation, reasonable attorneys' fees and costs) that
Seller or Operator may sustain or incur by reason of or in connection with
any such entry, inspections, studies, or tests.  The indemnity obligations of
Buyer under this Agreement shall survive any termination of this Agreement or
the delivery of the Grant Deed and the transfer of title to the Property.  If
this Agreement is terminated for any reason other than pursuant to Section
14.22(c) hereof, Buyer shall deliver to Seller, without charge therefor, all
originals and copies of any and all inspections, studies, tests, surveys, or
other reports made by or for or provided to Buyer with respect to the
Property other than any economic studies, financial analyses or capital
improvement and rehabilitation studies or programs relating to the Property
(the "Excluded Reports").


VII.              TITLE TO PROPERTY; APPROVALS

A.   Title.  At the Closing, Seller shall convey to Buyer fee title to the
Real Property by execution and delivery of the Grant Deed and by execution
and delivery of the Assignment and Assumption of Operating Lease.  The
issuance by First American Title Insurance Company (the "Title Company") of
an American Land Title Association Owner's Policy of Title Insurance in the
amount of the Purchase Price (the "Owner's Title Policy") shall be conclusive
evidence of Seller's delivery of fee title acceptable to Buyer.  At Closing,
the Title Company shall deliver the Owner's Title Policy to Buyer and shall
have obtained reinsurance for a portion of the title insurance coverage
reasonably satisfactory to Buyer from reinsurers reasonably satisfactory to
Buyer under direct access agreements reasonably satisfactory to Buyer;
provided that any additional cost for such reinsurance
(above the premium for the Owner's Title Policy) shall be borne by Buyer.
Buyer's sole recourse for any defect in the title actually acquired by
Buyer shall be to enforce Buyer's rights under the Owner's Title Policy,
and Seller shall have no liability to Buyer based upon
any defect in the title actually acquired by Buyer.  The Owner's Title Policy
shall be issued by the Title Company in the amount of the Purchase Price, and
shall insure fee title to the Real Property in Buyer, subject only to the
Operating Lease, property taxes and assessments not yet delinquent, and such
other exceptions to title as may be accepted and/or approved by Buyer
pursuant to Section 6.2 hereof (collectively, the "Permitted Exceptions"),
and with full- extended coverage over the general exceptions and the
following endorsements: Access, ALTA 9, Restrictions, Survey and Tax
Information.

B.   Approval of Title.

1.   Seller has delivered to Buyer, and Buyer has reviewed: (i) that certain
preliminary title report dated July 16, 199[6], concerning the Real Property,
issued by the Title Company under order no. T-260418-MW (the "PTR"),
including copies of all documents referred to in the PTR as encumbering the
Real Property as well as (ii) a copy of that certain ALTA/ACSM Land Title
Survey of the Real Property prepared by Tronoff Associates and dated
September 12, 1996 (the "Survey"), which Seller shall, at Seller's expense,
cause to be certified to Buyer (and Buyer's lender, if any) prior to the
Closing (provided that any additional survey work required by Buyer or
Buyer's lender shall be at the sole cost and expense of Buyer).  Buyer has
approved the condition of title to the Real Property subject to (i) all
matters disclosed on the Survey, and (ii) all matters disclosed in the PTR
and in all documents referred to in the PTR as encumbering the Real Property;
provided, however, that Buyer has not approved matters shown on the PTR or
disclosed on the survey to the extent required to be discharged by Seller on
or before the Closing as hereinafter specifically set forth in subparagraph
(b) of this Section 6.2.

2.   Seller shall cause the matters of title reflected on the PTR as exceptions
no.  9 - 12 (inclusive), 16 and 17 to be removed from title or otherwise
insured against under the Owner's Title Policy at Closing. Buyer shall accept
the following matters of title (each of which shall be deemed a "Permitted
Exception" hereunder): matters reflected on the PTR as exceptions no. 1 - 8
(inclusive), 13, 14 and 15;  the applicable zoning and use regulations of any
applicable governmental authority; possessory interests in the Property of
less than thirty (30) days' duration arising in the ordinary course of the
operation of the Hotel; rights of tenants and sub-tenants, under Subleases
entered into by Operator, as tenants only, without any option to purchase or
right of first refusal for all or any portion of the Real Property; and any
mechanic's or other liens arising out of Buyer's entry upon the Property.
Buyer has reviewed and approved all matters shown on the Survey (and shall
accept the Property and the Owner's Title Policy subject to any items shown
on the Survey which may be excepted by the Title Company).

3.   Prior to the Closing, Seller shall not take any action or commit or suffer
any acts which would give rise to a material variance from the current legal
description of the Real Property, or cause the creation of any detrimental
exception or encumbrance against or respecting the Real Property other than
Permitted Exceptions, without in each case the prior written consent of
Buyer, which consent may be withheld in Buyer's discretion.

4.   Notwithstanding the foregoing provisions of this Section 6.2, Buyer
acknowledges and agrees that any matters resulting from the act of Operator
or the failure of Operator to perform any action required to be performed by
it under the terms of the Operating Lease, made without the express written
direction of Seller, which could otherwise result in an unpermitted exception
to title (including, without limitation, Operator's execution and delivery of
any additional Subleases at the Property or creation of liens upon the
Property) shall be deemed to be "Permitted Exceptions" hereunder.

C.   Personal Property and Contracts, Permits and Miscellaneous Property
Assets.  At Closing, Seller shall transfer to Buyer title to Seller's
interest in the Personal Property and the Contracts, Permits and
Miscellaneous Property Assets by execution and delivery of the Bill of Sale
and the Assignment and Assumption of Contracts respectively.  Buyer shall
assume all Contracts, including those Contracts, if any, that are terminable
only upon the payment of a penalty, and Buyer shall be responsible for any
such penalty.  Seller and Buyer specifically waive compliance with California
Uniform Commercial Code, Sections 6101, et seq., commonly referred to as the
Uniform Commercial Code Bulk Transfers, and any similar provisions under the
laws of the State of California.

D.   Approval of Other Matters.

1.   Buyer has conducted and completed its inspections of the Property as
described in Section 5.2 hereof and Buyer shall have no right to terminate
this Agreement based upon the physical condition of the Property or any
matter which was (or might have been) disclosed by Buyer's inspections
thereof or otherwise, except as expressly set forth herein.

2.   Buyer hereby acknowledges that the transfer documents attached hereto as
exhibits (the "Documents"), as revised to conform to the specific terms of
this Agreement, will be used at Closing.  Buyer hereby unconditionally
approves the form of all the Documents, subject to completion of any
uncompleted information to be set forth therein in accordance with the terms
of this Agreement.

VIII.       BUYER'S CONDITIONS PRECEDENT TO CLOSING

     The following conditions are conditions precedent to Buyer's obligation
to purchase the Property:

A.   Owner's Title Policy. The Title Company shall be irrevocably committed to
issue to Buyer the Owner's Title Policy (with such reinsurance and
endorsements thereto as are set forth in Section 6.1 hereof), subject only to
the Permitted Exceptions.

B.   Seller's Non-Foreign Affidavit.  Buyer shall have received a Non-Foreign
Affidavit ("Seller's Non-Foreign Affidavit") executed by Seller and
satisfying the requirements of Section 1445 of the United States Internal
Revenue Code of 1986, as amended, and the requirements of Section 18805 of
the California Revenue and Taxation Code, as amended, substantially in the
form attached hereto as Exhibit F and incorporated herein by reference.

C.   Seller's Organizational Documents.  Within fifteen (15) business days
after the Effective Date, Seller shall deliver the following to Buyer at the
address set forth in Section 14.1 hereof: certified copies of Seller's
Partnership Agreement and Certificate of Limited Partnership, and all
amendments or modifications thereto, and, if available, a certificate of good
standing.

D.   Compliance by Seller.  Seller shall have complied in all material respects
with each and every covenant and condition of this Agreement to be kept or
complied with by Seller.

E.   Representations and Warranties.  The representations and warranties of
Seller contained in Section 10.2 and elsewhere in this Agreement shall be
true and correct in all material respects when made, and shall be true and
correct in all material respects on the Closing Date, and Buyer shall have
received a certificate to that effect by a duly authorized officer of the
general partner of Seller (the liability thereunder being solely that of
Seller and not the personal liability of the officer executing the same).

F.   Limited Partner Approval.  Seller shall have obtained the Limited Partner
Approval and delivered the Limited Partner Vote Notice evidencing the same to
Buyer and Escrow Holder.

G.   Covenant to Satisfy Conditions.  Seller hereby agrees to use commercially
reasonable efforts to cause each of the conditions precedent to the
obligations of Buyer to be fully satisfied, performed and discharged on and
as of the Closing Date, except that Seller shall not  have any obligation to
expend any funds, or incur any liabilities or obligations, which it would not
otherwise be required to spend or incur under the provisions of this
Agreement.

IX.         SELLER'S CONDITIONS PRECEDENT TO CLOSING

     The following conditions are conditions precedent to Seller's obligation
to sell the Property:

A.   Limited Partner Vote.  Although Seller believes that the approval of the
Limited Partners is not required for the sale of the Property to Buyer,
Seller has nonetheless agreed, at Seller's sole cost and expense, to present
the sale to the Limited Partners for their approval.

1.   Solicitation. Seller shall solicit the authorization, approval or
ratification (the "Limited Partner Vote") by the Limited Partners of the sale
of the Property as contemplated hereby.  Seller shall solicit the Limited
Partner Vote by duly noticing and holding a meeting of the Limited Partners
(the "Meeting") at which the Limited Partners may vote, in person or by
proxy, on the matters described above, or by soliciting the Limited Partners
written consent, whichever method Seller believes in its sole and absolute
discretion will more expeditiously result in the receipt of the approval of
the sale of the Property as contemplated hereby by the affirmative action of
Limited Partners holding a majority of the outstanding "Interests" (as
defined in Seller's Partnership Agreement) (the "Limited Partner Approval").

2.   Limited Partner Vote Notice. Within three (3) business days of obtaining
knowledge thereof,  Seller shall provide written notice (the "Meeting
Notice") to Buyer and Escrow Holder of the date set for the Meeting.  In
addition, within three (3) business days of obtaining knowledge thereof,
Seller shall provide written notice (each, a "Postponement Notice") of any
postponement of the date set for the Meeting, and the new date therefor.
Finally, within three (3) business days after conducting the Limited Partner
Vote, Seller shall deliver written notice of the result thereof (the "Limited
Partner Vote Notice") to Buyer and Escrow Holder, in substantially the form
of Exhibit J attached hereto.

3.   Proxy Materials.  Buyer and Seller each acknowledges and agrees that Buyer
shall have no responsibility for, or involvement or participation in, the
preparation, execution, issuance or dissemination of the materials (the
"Proxy Materials") to be prepared and filed with the Securities and Exchange
Commission and thereafter distributed to the Limited Partners in connection
with soliciting the Limited Partner Approval. Notwithstanding the foregoing,
Buyer shall reasonably cooperate with Seller, to the extent requested by
Seller and/or the Securities and Exchange Commission, with respect to the
preparation of the Proxy Materials and in no event shall Buyer delay comments
or such cooperation for more than three business days, provided that Seller
shall pay any reasonable and actual out-of-pocket costs (excluding the fees,
charges and disbursements of attorneys and accountants) incurred by Buyer in
connection with such requested cooperation.  Seller shall provide Buyer with
a draft of the Proxy Materials at least one business day prior to submission
of the Proxy Materials to the Securities and Exchange Commission and shall
deliver to Buyer final and definitive versions of the Proxy Materials
together with delivery thereof to the Limited Partners.  If, at any time
prior to the Meeting, any event or circumstance relating to Buyer or Seller
should be discovered by such party which should be set forth in an amendment
or a supplement to the Proxy Materials, such party shall promptly inform the
other thereof and take appropriate action in respect thereof.

4.   Indemnification.  Each party hereto shall (i) indemnify (in such role, an
"Indemnifying Party") and hold harmless each other party and their respective
partners, affiliates, directors, officers and controlling persons (an
"Indemnified Party") against any and all loss, liability, claim, damage and
expense whatsoever to which an Indemnified Party may become subject, under the
Securities Exchange Act of 1934, as amended or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of any untrue statement or alleged untrue statement of a material fact
contained in the Proxy Materials, including any amendment or supplement
thereto, or any preliminary Proxy Materials, or the omission or alleged
omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading; and (ii) reimburse
the Indemnified Party for any legal or other expenses reasonably incurred by
the Indemnified Party in connection with investigating or defending any such
loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that (x) Buyer shall be liable under this Section 8.1(d)
only for information relating to Buyer included or incorporated by reference
in the Proxy Materials, and (y) Seller shall not be liable in any such case
under this Section 8.1(d) to the extent that any such loss, claim, damage,
liability or action arises out of any untrue statement or alleged untrue
statement or omission or alleged omission made in any of such documents in
reliance upon and in conformity with written information furnished to Seller
by or on behalf of Buyer specifically for use therein.
          Promptly after receipt by an Indemnified Party under this Section
8.1(d)  of notice of any claim or the commencement of any action, the
Indemnified Party shall, if a claim in respect thereof is to be made against
the Indemnifying Party under this Section 8.1(d), promptly notify the
Indemnifying Party in writing of the claim or the commencement of that
action; provided, however, that the failure to notify or a delay in notifying
the Indemnifying Party shall not relieve it from any liability which it may
have to an Indemnified Party under this Section 8.1(d) except to the extent
that such Indemnifying Party is materially prejudiced thereby.  If any such
claim or action shall be brought against an Indemnified Party, and it shall
notify the Indemnifying Party thereof, the Indemnifying Party shall be
entitled to participate therein, and, to the extent that it wish es, jointly
with any other similarly notified Indemnifying Party, to assume the defense
thereof with counsel reasonably satis factory to the Indemnified Party.
After notice from the Indemni fying Party to the Indemnified Party of its
election to assume the defense of such  claim or action, the Indemnifying
Party shall not be liable to the Indemnified Party under this Section 8.1(d)
for any legal or other expenses subsequently incurred by the Indemnified
Party in connection with the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Party unless (i) the
employment thereof has been specifically authorized by the Indemnifying Party
in writing, (ii) such Indemnified Party shall have been advised in writing (a
copy of which shall be provided to the Indemnifying Party) by such counsel
that there may be one or more legal defenses available to it which are
different from or additional to those avail able to the Indemnifying Party
and in the reasonable judgment of such counsel it is advisable for such
Indemnified Party to employ separate counsel or (iii) the Indemnifying Party
has failed to assume the defense to such claim or action and employ counsel
rea sonably satisfactory to the Indemnified Party, and, in the case of
clauses (i), (ii) and (iii), if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have
the right to assume the defense of such claim or action on behalf of such
Indemnified Party; it being understood, however, that the Indemnifying Party
shall not, in connection with any one such claim or action or separate but
substantially similar or related claims or actions in the same jurisdiction
arising out of the same general allega tions or circumstances, be liable for
the reasonable fees and expenses of more than one separate firm of attorneys
at any time for all such Indemnified Parties, which firm shall be designated
in writing by such Indemnified Parties.  Each Indemnified Party, as a
condition of the indemnity agreements contained herein shall use its
commercially reasonable efforts to cooperate with the Indemnifying Party in
the defense of any such claim or action. The Indemnifying Party shall not be
liable for any settlement of any such claim or action effected without its
written consent (which consent shall not be unreasonably withheld), but if
settled with its written consent or if there is a final judgment in favor of
the plaintiff in any such claim or action, the Indem nifying Party agrees to
indemnify and hold harmless any Indemnified Party from and against any loss
or liability by reason of such settlement or judgment.

5.   Termination Right. In the event that a Limited Partner Vote Notice
evidencing disapproval by the Limited Partners of the sale of the Property as
contemplated hereby is delivered by Seller to Escrow Holder and Buyer  then
this Agreement shall automatically terminate.  In the event that no Limited
Partner Vote Notice (whether evidencing the approval or disapproval of the
Limited Partners) has been delivered to Escrow Holder on or before March 24,
1997, then either party may terminate this Agreement and cancel the Escrow by
written notice to the other party and the Escrow Holder.

B.   Buyer's Organizational Documents.  Within fifteen (15) business days after
the Effective Date, Buyer shall deliver the following to Seller at the
address set forth in Section 14.1 hereof:

(1)  if Buyer or any partner or permitted assignee of Buyer is a corporation,
certified copies of each such corporation's Articles of Incorporation,
Bylaws, and all amendments or modifications thereto, appropriate corporate
resolutions and incumbency certificates, and a current certificate of good
standing;

(2)  if Buyer or any partner or permitted assignee of Buyer is a general
partnership, certified copies of each such general partnership's Partnership
Agreement and Statement of Partnership, and all amendments and modifications
thereto;

(3)  if Buyer or any partner or permitted assignee of Buyer is a limited
partnership, certified copies of each such limited partnership's Partnership
Agreement and Certificate of Limited Partnership, and all amendments or
modifications thereto, and, if available, a certificate of good standing; and

(4)  if Buyer or any partner or permitted assignee of Buyer is a trust,
certified copies of each such trust's trust agreement, and all amendments and
modification thereto, and, if available, a certificate of good standing.

C.   Estoppel by Operator.  Buyer shall have caused Operator to deliver to
Buyer and Seller an Estoppel Agreement (the "Estoppel Agreement"), in the
form attached hereto as Exhibit G.

D.   Compliance By Buyer.  Buyer shall have complied in all material respects
with each and every covenant and condition of this Agreement to be kept or
complied with by Buyer.

E.   Representations and Warranties.  The representations and warranties of
Buyer contained in Section 10.1 and elsewhere in this Agreement shall be true
and correct in all material respects when made, and shall be true and correct
in all material respects on the Closing Date, and Seller shall have received
a certificate to that effect by a duly authorized officer of Buyer (the
liability thereunder being solely that of Buyer and not the personal
liability of the officer executing the same).

F.   Covenant to Satisfy Conditions.  Buyer  hereby agrees to use commercially
reasonable efforts to cause each of the conditions precedent to the
obligations of Seller to be fully satisfied, performed and discharged on and
as of the Closing Date, except that Buyer shall not have any obligation to
expend any funds, or incur any liabilities or obligations, which it would not
otherwise be required to spend or incur under the provisions of this
Agreement.

X.                     ESCROW AND CLOSING

A.   Deposit With Escrow Holder and Escrow Instructions.  Escrow hereunder (the
"Escrow") shall be established with Escrow Holder at 345 California Street,
24th Floor, San Francisco, California. Upon execution of this Agreement, the
parties shall deposit an executed copy of this Agreement with Escrow Holder.
This Agreement shall serve as the instructions to Escrow Holder to consummate
the purchase and sale contemplated hereby.  Seller and Buyer agree to execute
such additional and supplementary escrow instructions as are consistent with
this Agreement and as may be appropriate to enable Escrow Holder to comply
with the terms of this Agreement.  If there is any conflict between the
provisions of this Agreement and any additional or supplementary escrow
instructions, however, the terms of this Agreement shall control.

B.   Closing.

1.   Except as may be provided otherwise herein, the Closing Date shall occur
prior to 5:00 p.m., Pacific time, on the seventh (7th) calendar day following
delivery of the Limited Partner Vote Notice evidencing the Limited Partner
Approval into Escrow, but in no event earlier than December 27, 1996 or later
than March 31, 1997, unless the parties hereto agree, each in its sole and
absolute discretion, to change the scheduled Closing Date. Notwithstanding
the foregoing, in the event that Seller delivers the Limited Partner Vote
Notice evidencing the Limited Partner Approval into Escrow on or before 3:00
p.m. Pacific time on December 24, 1996, then the Closing Date shall occur on
December 31, 1996 (unless the parties hereto agree, each in its sole and
absolute discretion, to change the scheduled Closing Date).

2.   If either party has complied with the terms and conditions of this
Agreement on or before the scheduled Closing Date but the Closing does not
occur because of a breach or default hereunder by the other party, the
defaulting party shall be deemed to be in material breach of this Agreement
and the non-defaulting party may terminate this Agreement.

C.   Deliveries by Seller.

 (1)  Within fifteen (15) business days after the Effective Date, Seller
shall deposit with Escrow Holder the following:

1.   One (1) original Grant Deed, duly executed and acknowledged by Seller
and in recordable form;

2.   Four (4) originals of the Bill of Sale, duly executed by Seller;

3.   Four (4) original counterparts of the Assignment and Assumption of
Contracts, duly executed by Seller;

4.   Four (4) original counterparts of the Assignment and Assumption of
Operating Lease, duly executed and acknowledged by Seller and in recordable
form;

5.   Four (4) original counterparts of the Landlord's Certification attached
to the Estoppel Agreement, duly executed by Seller;

6.   Four (4) original counterparts of a Fifth Amendment to the Operating Lease
(the "Fifth Amendment"), whereby the "Early Termination Fee" (as defined in
the Operating Lease) shall be increased (i) to $16,032,500 as of January 1,
1997 and (ii) to $17,635,750 as of January 1, 1998, duly executed by Seller;

7.   Two (2) original Seller's Non-Foreign Affidavits, duly executed by
Seller;

8.   Original copies, executed by or on behalf of Seller, of any required real
estate transfer tax declarations, or any similar documentation required to
evidence the payment of any tax imposed by the state, county and municipality
on the transaction contemplated hereby; and

9.   Such articles of incorporation, agreements or certificates of partnership,
resolutions, authorizations, bylaws, certifications or other corporate,
partnership or trust documents or agreements relating to Seller and Seller's
partners as Buyer or Escrow Holder shall reasonably require in connection
with this transaction.

     (2)   Within one (1) business day following Seller's delivery of the
Limited Partner Vote Notice evidencing the Limited Partner Approval, Seller
shall deposit with Escrow Holder the following:

          (a)  Any other cash, documents, or instruments called for hereunder
or reasonably requested by Buyer and consistent herewith to be paid,
executed, or delivered by Seller that have not previously been delivered by
Seller to Escrow Holder.

D.   Deliveries by Buyer.
 (1)   Within fifteen (15) business days after the Effective Date, Buyer
shall deposit with Escrow Holder the following:

1.   Four (4) original counterparts of the Assignment and Assumption of
Contracts, duly executed by Buyer;

2.   Four (4) original counterparts of the Assignment and Assumption of
Operating Lease, duly executed by Buyer;

3.   Four (4) original Estoppel Agreements and four (4) original counterparts
of the Fifth Amendment, each duly executed by Operator;

4.   Such articles of incorporation, agreements or certificates of partnership,
resolutions, authorizations, bylaws, certifications or other corporate,
partnership, or trust documents or agreements relating to Buyer (or Buyer's
permitted assignee, if any) as Seller or Escrow Holder shall reasonably
require in connection with this transaction;

5.   Original copies, executed by or on behalf of Buyer, of any required real
estate transfer tax declarations, or any similar documentation required to
evidence the payment of any tax imposed by the state, county and municipality
on the transaction contemplated hereby; and

6.   Any documents, or instruments reasonably requested by Seller or Title
Company to evidence Buyer's assumption of the Hyatt Loan and the release of
Seller from its obligations thereunder, each executed and delivered (in
recordable form where necessary) by Hyatt Corporation and/or Buyer, as
applicable.

  (2)   Within one (1) business day following Seller's delivery of the
Limited Partner Vote Notice evidencing the Limited Partner Approval, Buyer
shall deposit with Escrow Holder the following:

          (a)  Good and immediately available funds sufficient to pay the
Balance, Buyer's portion of the closing costs, and any other amounts payable
by Buyer in order to permit Escrow Holder to close the Escrow which, if
deposited by Buyer prior to the Closing Date, shall be invested for Buyer's
benefit at Buyer's sole discretion; and

          (b)  Any other cash, documents, or instruments called for hereunder
or reasonably requested by Seller and consistent herewith to be paid,
executed, or delivered by Buyer or that are required for Closing hereunder
that have not been previously delivered by Buyer to Escrow Holder.

E.   Other Instruments; Revised Deliveries.  Seller and Buyer shall each
deposit any other documents or instruments that may be reasonably required by
Escrow Holder, or that are otherwise required to close Escrow and consummate
the purchase and sale of the Property in accordance with the terms hereof
including, without limitation, the Closing Statements.   In the event that
the interest hereunder of Buyer or Seller is assigned (as permitted hereby)
subsequent to the date that instruments have been delivered into Escrow but
prior to the Closing Date, the parties shall re-execute documents by and for
the benefit of the permitted assignee and shall deliver such revised
instruments to Escrow Holder and shall authorize Escrow Holder, upon its
receipt of the revised documentation, to destroy the instruments previously
deposited into Escrow, to the extent replaced by such revised documentation.

F.   Prorations and Apportionments.

1.   Payments required to be made by the Operator under the Operating Lease
shall be prorated, credited or applied in accordance with Section 9.6(b)
hereof.  All other income and expenses in connection with the ownership,
operation and maintenance of the Property and not accounted for in the
calculation of amounts due under the Operating Lease, shall be prorated as of
the Closing Date.  In addition, Seller shall retain that portion of the FF&E
Reserves (and at the Closing Operator shall deliver such portion to Seller
from the account in which the FF&E Reserves are held in trust for Seller)
equal to (i) $896,454, plus (ii) all amounts contributed to the FF&E Reserves
and attributable to the period from October 1, 1996 through October 31, 1996,
plus (iii) fifty percent (50%) of all amounts to be deposited into the FF&E
Reserves pursuant to the terms of the Operating Lease and attributable to the
period between November 1, 1996, and the Closing Date.  The remaining fifty
percent (50%) of the FF&E Reserves attributable to the period between
November 1, 1996 and the Closing Date may be expended by the Operator in
accordance with the terms of the Operating Lease and any budgets approved
pursuant thereto, and any portion thereof which is not so expended by the
Operator shall be transferred to Buyer without any adjustment to the Purchase
Price.  At close of Escrow, Buyer shall deposit in Escrow any additional
amount required to cover prorations and other charges to Buyer which have
been determined prior to close of Escrow in accordance with this Agreement.
Seller and Buyer shall settle any prorations not known at close of Escrow
within thirty (30) calendar days after the Closing Date (including
adjustments in accordance with the provisions of the Operating Lease which
would otherwise be made at the end of the Lease Year in which the Closing
occurs under the Operating Lease).  In the event that either party hereto
receives amounts that are due to the other under the terms of this Section
9.6(a), such amounts shall be paid to the party entitled thereto within
thirty (30) calendar days of receipt by the other of such amount, which
payment shall be accompanied by a calculation thereof together with such
documentation as may be reasonably necessary to support such calculation.

          (b)  Rent required to be paid by Operator under the Operating Lease
for the month in which Closing occurs shall be prorated between Buyer and
Seller effective as of the Closing Date based on the actual number of days
elapsed.  Buyer shall cause Operator to provide calculations (together with
reasonable documentation supporting such calculations) setting forth any
adjustments ("Adjustments") to rental payments required to be made by
Operator under the Operating Lease which are made on a Lease Year (as defined
in the Operating Lease) basis to both Buyer and Seller within sixty (60)
calendar days after the Closing Date.  Buyer and Seller shall negotiate in
good faith to agree upon the amount of the Adjustments within ten (10)
calendar days after submission of the calculations therefor by Operator. No
Adjustments or prorations under the Operating Lease or otherwise shall be
made for periods subsequent to the Lease Year in which Closing occurs.  Upon
close of Escrow, Buyer and Seller shall jointly notify Operator in writing of
the Closing Date and instruct Operator to make all payments thereafter to
Buyer.
          2.)     For a period of one (1) year following the Closing Date,
Buyer agrees to permit Seller, its independent auditors and other
representatives reasonable access to inspect the books, records and accounts
of Buyer and Operator pertaining to the Property, to the extent the same are
applicable to the period prior to the Closing Date.

      3.)    If Seller and Buyer are unable, after using reasonable
efforts in good faith, to agree upon any particular item, or the amount
thereof, for inclusion in the Closing Statements, the Closing shall
nevertheless occur, and proration adjustments shall be made, on a tentative
basis, on the basis of the individual items as proposed by Buyer, with any
differences between the amounts as proposed by Buyer and the amounts proposed
by Seller deposited by Buyer in an escrow with the Title Company under the
Title Company's form of strict joint order escrow (the "Proration Escrow").
Promptly after Operator's delivery of the Adjustment calculations, Buyer and
Seller shall meet and attempt in good faith to resolve any differences
between them with regard to any item of proration or Adjustment in dispute.  If
however, the parties are unable, within ten (10) days following Operator's
delivery of the Adjustment calculations, to resolve all items in dispute,
each party will, within three business days and at its sole cost and expense,
engage an independent and disinterested certified public accountant with no
less than ten (10) years experience in calculating prorations of the type in
question (other than the accounting firm of Arthur Andersen & Co.) to
calculate (within ten (10) calendar days) the item or items of proration or
Adjustment  in dispute, and, so long as the calculation of the higher
accountant of any particular item is no more than 110% of the value of the
lower accountant, the parties will agree to accept the average of the two
calculations.  In the event that the higher calculation is more than 110% of
the lower calculation, then the two accountants shall within five (5)
calendar days jointly designate a third disinterested certified public
accountant.  In the event that the two accountants after good faith attempts
shall have failed to agree on the third accountant within such five day
period, then either Buyer or Seller may request that the accounting firm of
Arthur Andersen & Co. designate the third accountant, and such designation(s)
shall be binding on the parties.  If, within, ten (10) days after ap
pointment of the third accountant, a majority of the accountants concur on
the valuation, that valuation shall be binding and con clusive on Buyer and
Seller.  If a majority of the accountants do not concur within that period,
the calculation farthest from the median of the three calculations shall be
disregarded and the average of the remaining two calculations shall be deemed
the calculation and shall be binding and conclusive.  The cost of the third
accountant shall be borne solely by the parties who engaged the accountant
who delivered the original calculation that was farthest in value from the
third calculation.  Buyer (on its own behalf and on behalf of Operator) and
Seller agree to furnish the accountant(s) with all appropriate information
utilized in the parties' own calculations.

          4.)    The provisions of this Section 9.6 shall survive the
Closing.
     X.G.      Costs and Expenses.  Seller shall pay (a)  the premium for the
Owner's Title Policy, (b) the cost of the Survey and a reasonable survey
certification to Buyer (and Buyer's lender if any)(provided that any
additional survey work required by Buyer or Buyer's lender shall be at the
sole cost and expense of Buyer), and (c) one-half (1/2) of all documentary
transfer taxes and sales taxes applicable to the transfer of the Property to
Buyer, (d) one-half (1/2) of Escrow Holder's fees and costs and (e) all charges
to remove any title exceptions which are not Permitted Exceptions and which
Seller has elected or is obligated to remove, including recording fees for
the same.   Buyer shall pay (i) the cost of any endorsements to the Owner's
Title Policy and the costs of any additional survey work desired by Buyer,
(ii) one-half (1/2) of all documentary transfer taxes and sales taxes
applicable to the transfer of the Property to Buyer, (iii) one-half (1/2) of
Escrow Holder's fees and costs, and (iv) all filing and recording charges for
the Documents. All other taxes, costs, and charges of the Escrow shall be
paid equally by Seller and Buyer. Except as otherwise expressly herein
provided, each party hereto agrees to bear and pay for its own account the
fees and disbursements of its own counsel, accountants, appraisers, engineers
and other advisors in connection with the negotiation and preparation of this
Agreement and the close of Escrow.

     X.H.      Close of Escrow.  Provided that (i) Escrow Holder has received
the documents and funds described in Sections 9.3, 9.4, and 9.5 hereof; (ii)
Escrow Holder has not received prior written notice from either party to the
effect that an agreement of either party made hereunder has not been
performed or to the effect that any condition set forth herein has not been
satisfied or waived; (iii) Buyer has not terminated this Agreement as
permitted herein; (iv) Seller has not terminated this Agreement as permitted
herein; and (v) the Title Company has issued or is unconditionally prepared
and committed to issue to Buyer the Owner's Title Policy (with such
reinsurance and endorsements thereto as are set forth in Section 6.1 hereof)
, Escrow Holder is authorized and instructed at 8:00 a.m., Pacific time, on
the scheduled Closing Date to:
          1.)    retain for Escrow Holder's own account all escrow fees and
costs, disburse to Title Company the fees and expenses incurred in connection
with the issuance of the Owner's Title Policy, and disburse to any other
persons or entities entitled thereto the amount of any other closing costs,
all in accordance with Buyer's and Seller's closing statements prepared by
Escrow Holder and pre-approved by the parties hereto (the "Closing
Statements").
          2.)    record in the appropriate office any documents or
instruments necessary to remove any exceptions to title which are not
Permitted Exceptions.

          3.)    request that the amount of the documentary transfer tax due
be shown on a separate paper and be affixed to the Grant Deed by the County
Recorder only after the permanent record is made;

          4.)    cause the Grant Deed and the Assignment and Assumption of
Operating Lease to be recorded in the County Recorder's Office of San
Francisco County, California and deliver conformed copies of such recorded
documents to each of Buyer and Seller;

          5.)    deliver by wire transfer the Deposit and the Balance to
Seller, as adjusted by Seller's share of prorations and costs of escrow, in
the manner specified by Seller in separate written instructions to Escrow
Holder;

          6.)    deliver to Buyer two (2) fully executed original
counterparts of each of the Bill of Sale, the Assignment and Assumption of
Contracts, and the Estoppel Agreement, and two (2) conformed copies of each
of the "as-recorded" Grant Deed and the Assignment and Assumption of
Operating Lease, and deliver to Seller two (2) fully executed original
counterparts of each of the Bill of Sale, the Assignment and Assumption of
Contracts, and the Estoppel Agreement, and two (2) conformed copies of each
of the "as-recorded" Grant Deed and the Assignment and Assumption of
Operating Lease;

          7.)    deliver two (2) original Seller's Non-Foreign Affidavits to
Buyer;

          8.)    return any remaining funds to Buyer after all payments
pursuant to clauses (a) and (e) immediately above;

          9.)    cause the Title Company to issue the Owner's Title Policy
(together with the endorsements and evidence of reinsurance described in
Section 6.2 hereof) to Buyer; and

         10.)    destroy all copies and counterparts
of  the Fifth Amendment.

  X.I.      Notification; Closing Statements.  If Escrow Holder cannot
comply with the instructions herein (or as may be provided later), Escrow
Holder is not authorized to cause the recording or delivery of any of the
foregoing documents.  If Escrow Holder is unable to cause the recording,
Escrow Holder shall notify the parties of such fact without delay.  If such
inability continues for a period of seven (7) calendar days (unless either
Seller or Buyer is then in default hereunder (in which event the provisions
of Section 9.2(b) shall apply), either Seller or Buyer may, upon written
notice to the other party and to Escrow Holder, demand the return of its
deposits, in which event Escrow Holder shall return all deposits to the
respective depositor (including the Deposit to Buyer) and this Agreement
shall terminate. Immediately after the Closing, Escrow Holder shall deliver
to Buyer and Seller, respectively, at their addresses listed in Section 14.1
hereof, a true, correct, and complete copy of the Seller's and Buyer's
Closing Statements, in forms customarily prepared by Escrow Holder, as well
as all other instruments and documents to be delivered to Buyer and Seller.

XI.              REPRESENTATIONS, WARRANTIES, AND COVENANTS
     XI.A.          Buyer's Representations and Warranties.  Buyer represents
and warrants to Seller as follows:

          1.)    Buyer is a corporation, duly created, validly existing, and
in good standing under the laws of the State of Delaware with full right,
power, and authority to take title to the Property, and to enter into and
otherwise perform and comply with all the terms and conditions of this
Agreement and no less than fifty-one percent (51%) of the voting securities
or ownership interests in Buyer are held (directly or indirectly) by a
Pritzker Affiliate as of the Effective Date;
          2.)    This Agreement and all documents executed by Buyer that are
to be delivered to Seller or Escrow Holder at the Closing are, and at the
time of Closing will be, duly authorized, executed, and delivered by Buyer;
this Agreement and all documents executed by Buyer that are to be delivered
to Seller at the Closing are, and at the Closing will be, legal, valid, and
binding obligations of Buyer, enforceable in accordance with their terms
(except as enforcement may be limited by bankruptcy, insolvency or similar
laws) and do not, and at the time of Closing will not, violate any provisions
of any agreement or judicial order to which Buyer is a party or to which
Buyer is subject; and

          3.)    Except as may be expressly provided otherwise in this
Agreement or in the documents or instruments being executed and delivered in
connection with this Agreement, no representations of any kind (whether oral
or written, express or implied) have been made by the Seller to Buyer, and
Buyer hereby represents and warrants to Seller that Buyer is investing in the
Property solely in reliance on Buyer's own investigations and evaluation
thereof, the representations and warranties of Seller set forth herein, and
not in reliance on anything else.

     XI.B.       Seller's Representations and Warranties.  Seller represents
and warrants to Buyer as follows:

          1.)    Seller is a Delaware limited partnership duly created,
validly existing, and in good standing under the laws of the State of
Delaware and Seller has the full right, power, and authority to own and
convey the Property and to enter into and otherwise perform and comply with
all the terms and conditions of this Agreement.

          2.)    This Agreement and all documents executed by Seller that
are to be delivered to Buyer or Escrow Holder at the Closing are, and at the
time of Closing will be, duly authorized, executed, and delivered by Seller;
and this Agreement and all documents executed by Seller that are to be
delivered to Buyer at Closing are, and at the time of Closing will be, legal,
valid, and binding obligations of Seller, enforceable in accordance with
their terms (except as enforcement may be limited by bankruptcy, insolvency
or similar laws) and do not, and at the time of Closing will not, violate any
provisions of any agreement or judicial order to which Seller is a party or
to which Seller or the Property is subject.

          3.)    Seller is the owner of the landlord's interest under the
Operating Lease (subject only to those matters set forth in the PTR) and
Seller has not heretofore assigned any of its interest in the Operating
Lease, the Personal Property, the Permits or the Miscellaneous Property
Assets.

          4.)    Seller has not directly entered into any Subleases, and has
not entered into any leases with respect to the Hotel or the Land or any
portion thereof, other than the Operating Lease.

          5.)    Exhibit H hereto contains a complete list of all Contracts
currently in effect with respect to the Property.

               To Seller's knowledge, all information contained on Exhibit H
is true, accurate and complete in all respects as of the date hereof and
copies of all Contracts which have heretofore been delivered to Buyer are
true, accurate and complete, and include all amendments or modifications
thereof (whether written or verbal).  Except as disclosed on Exhibit H, (i)
to Seller's knowledge, no party to any Contract is in default thereunder;
(ii) to Seller's knowledge, no event or circumstance has occurred which,
either by itself, or with the giving of notice or passage of time,
or both, would constitute a breach or default or event of default under any
Contract; and (iii) to Seller's knowledge, no party to any Contract has
delivered any notice, either written or verbal, alleging the
occurrence of any breach thereof or default or event of default thereunder.

          6.)    To Seller's knowledge, except for notices or copies thereof
received by the Operator (including, without limitation, notices relating to
the Americans With Disabilities Act), as of the date of this Agreement,
Seller has not received any notices of violations of any laws, ordinances,
orders or requirements of any governmental authority, agency or officer
having jurisdiction against or affecting the Property or with respect to the
operation thereof for its currently intended purpose, which have not
previously been complied with, nor, to Seller's knowledge, do any facts or
circumstances exist which are not known to Operator and which, if known to
any applicable governmental agency or authority, would constitute a material
violation of any such laws, ordinances, orders or requirements and have a
material adverse impact on the operations of the Hotel.

          7.)    To Seller's knowledge, there are no actions,
investigations, suits or proceedings (including arbitrations, grievances,
judicial proceedings, administrative proceedings and tax contests) pending,
or threatened, with respect to the Property, or the ownership or operation
thereof, or any part thereof (other than those being administered by the
Operator), nor any judgments, orders, awards or decrees currently in effect
against Seller with respect to the ownership or operation of any part of the
Property which have not been fully discharged prior to the date hereof.

          8.)    To Seller's knowledge, there are no pending or threatened
requests, applications or proceedings to alter or restrict the zoning or
other use restrictions applicable to the Property, or to condemn all or any
portion of the Property by eminent domain proceedings or otherwise.

      9.)    Attached hereto as Exhibit I is a list of all Permits
obtained by Seller (and excluding permits obtained by the Operator) with
respect to the construction, operation, ownership or maintenance of the
Property, or the Improvements, which are currently in effect.  To Seller's
knowledge, Seller has received no notice from any governmental authority of
intended non- renewal, suspension or revocation of any Permit, and  Seller
has no knowledge of any threatened non-renewal, suspension or revocation
proceeding.

          10.)    To Seller's knowledge, except as may have been contracted
for by the Operator, there has been no construction or other work performed,
nor is any in process, at the Property, nor have any construction materials
been furnished to the Property or any portion thereof, which might hereafter
give rise to mechanic's, materialmen's or other liens against the Property
or any portion thereof.

          11.)    As used herein, the term "Seller's knowledge" shall mean
the actual knowledge of Jeffrey C. Carter, president of the general partner
of Seller.

     XI.C.          Continuation and Survival of Representations and
Warranties; Limitations on Liability Therefor.  All representations and
warranties made by the respective parties and contained in this Agreement
are intended to and shall remain true and correct as of the time of Closing,
shall be deemed to be material, and shall survive the execution and delivery
of this Agreement, the delivery of the Grant Deed, and transfer of title to
the Property, for a period of one (1) year, and shall not be deemed to have
been waived at the Closing, or merged into any of the documents of
conveyance or transfer to be delivered by Seller at the Closing; provided,
however, no person, firm or entity shall have any liability or obligation
with respect to any representation or warranty herein contained unless on or
prior to a date which is not later than one (1) year following the Closing
Date the party seeking to assert liability under any such representation or
warranty shall have notified the other party hereto in writing setting forth
specifically the representation or warranty allegedly breached, and a
description of the alleged breach in reasonable detail.  All liability or
obligation of either party hereto under any representation or warranty shall
lapse and be of no further force or effect with respect to any matters not
contained in a written notice delivered as contemplated above on or prior to
one (1) year following the Closing.  Notwithstanding the foregoing, Buyer
acknowledges and agrees that: (a) Seller shall have no liability whatsoever
with respect to any representation or warranty as to which Buyer and/or
Operator has any knowledge prior to Closing that such representation or
warranty made by Seller pursuant to this Agreement or the other Documents was
incorrect, false or misleading in any way, and (b) neither party shall have
any right to pursue remedies against the other for an untrue representation or
the breach of a warranty unless and until the actual damages of the claiming
party as a result of such incorrectness, falsity or breach are in excess of
$100,000 (the aforesaid amount being a threshold for enforcement and not a
deductible from liability).


XII.                            POSSESSION

   Possession of the Property shall be delivered to Buyer immediately
following the Closing, subject only to the Permitted Exceptions.


XIII.                   OPERATION OF THE PROPERTY

 Regarding the operation, maintenance and repair of the Property between
the Effective Date and the Closing Date (or earlier termination of this
Agreement),  (a) Seller shall not be required to make any capital
improvements to the Property, except improvements or repairs that Seller
determines to be of an emergency nature; (b) Seller agrees that it will not,
without the prior written consent of Buyer, enter into any lease with respect
to any portion of the Property; (c) Seller shall not take any action, or
suffer any action to be taken in its name or on its behalf, the effect of
which would cause any of the representations or warranties of Seller herein
contained to be untrue or incorrect in any material respect on and as of the
Closing Date, or which would have the effect of causing Seller to be unable
to satisfy or perform any of the conditions precedent to the obligations of
Buyer hereunder; (d) Seller shall at all times (i) promptly deliver to Buyer
copies of any notices received by Seller (but not received by or from
Operator) from any person, firm, corporation or governmental agency alleging
any default on the part of Seller under any contract or agreement relating to
the Property, or any part thereof, or any violation of any applicable law or
ordinance with respect thereto which, if the facts alleged therein were true,
would constitute a breach of any representation or warranty of Seller herein
contained or adversely affect the ability of Seller to satisfy any condition
precedent to the obligations of Buyer hereunder, and (ii) promptly advise
Buyer in writing of any pending or threatened litigation, administrative
proceeding or condemnation proceeding brought with respect to the Property,
or which relates to the Property or any part thereof; (e) Seller will not
consent to, authorize or approve any change in zoning or similar land use
classification for the Land or any part thereof or any adjoining or nearby
parcels, or any special assessments not heretofore confirmed with respect to
the Land; and (f) Seller will not knowingly or deliberately create any lien
or encumbrance to attach to the Property, or any part thereof.


XIV.                  LOSS BY CASUALTY; CONDEMNATION

     XIV.A.    Damage or Destruction.  Prior to the Closing Date, the
entire risk of loss or damage by earthquake, flood, landslide, fire,
hurricane, tornado or other casualty shall be assumed and borne by Seller.
If, prior to the Closing any part of the Property is damaged by earthquake,
flood, landslide, fire, hurricane, tornado or other casualty, Seller shall
promptly notify Buyer of such fact.  In the event that the estimated cost to
repair any such damage exceeds, in the aggregate, $2,500,000, Buyer shall
have the right to terminate this Agreement upon written notice to Seller, in
which event this Agreement shall terminate.  In the event that Buyer elects
not to terminate this Agreement as a result of any such damage, or the
estimated cost of repair (as reasonably determined by Buyer and Seller) does
not exceed, in the aggregate, $2,500,000, Seller shall, at the Closing, assign
and turn over, and Buyer shall be entitled to receive and keep, all insurance
proceeds payable to Seller with respect to such damage or destruction, Buyer
shall receive a credit against the Purchase Price in the amount of any
applicable insurance deductible, and the parties shall proceed to Closing
pursuant to the terms hereof without modification of the terms of this
Agreement.


     XIV.B.    Condemnation.  If, prior to the Closing Date all or any
portion of the Property is taken by a condemnation or eminent domain (or is
the subject of a pending or contemplated taking which has not been
consummated), Seller shall promptly notify Buyer of such fact (the
"Condemnation Notice"). If in the reasonable opinion of Buyer the taking
materially interferes or would materially interfere with the economic
operation or use of the Property, then Buyer may elect to terminate this
Agreement by written notice to such effect given to Seller within ten (10)
days after receipt by Buyer of the Condemnation Notice, in which event this
Agreement shall terminate.  If, under such circumstances, Buyer does not so
elect to terminate this Agreement, then the Closing shall take place as
herein provided without any abatement of the Purchase Price, and at the
Closing Seller shall assign to the Buyer, by written instrument, all of
Seller's right, title and interest in and to any condemnation award which may
be payable to Seller on account of such condemnation.  If, prior to the
Closing Date, one or more portions of the Real Property shall be taken (or
are threatened to be taken) by exercise of right of eminent domain in a
manner which does not, in the reasonable opinion of Buyer, materially
interfere with the economic operation or use of the Property, then neither
party shall have any right to terminate its obligations hereunder by reason
thereof, but at the Closing Seller shall assign to the Buyer, by written
instrument, all of Seller's right, title and interest in and to any
condemnation awards which may be payable to Seller on account of such
condemnation.  For purposes hereof, the term "taking" shall include any
temporary as well as permanent takings.

XV.                      MISCELLANEOUS
     XV.A.     Notices.  Any communication, notice, or demand of any kind
whatsoever that either party may be required or may desire to give to or
serve upon the other shall be in writing, addressed to the parties at the
addresses set forth below, and delivered by personal service, by Federal
Express or other overnight delivery service, by facsimile transmission, or by
registered or certified mail, postage prepaid, return receipt requested:

           If to Seller:      Union Square Hotel Partners, L.P.
                              c/o Union Square/GP Corp.
                              3 World Financial Center, 29th Floor
                              New York, New York  10285-2900
                              Attention:  Jeffrey C. Carter,
                              President Facsimile No.: (212) 528-9696
                              
         With a copy to:      Skadden, Arps, Slate, Meagher & Flom
                              300 South Grand Avenue, Suite 3400
                              Los Angeles, California 90071
                              Attention:  Rand S. April, Esq.
                              Facsimile No.:  (213) 687-5600
                              
            If to Buyer:      HT-Hotel Equities, Inc.
                              200 West Madison
                              Chicago, Illinois 60606
                              Attention:  General Counsel
                              Facsimile No.: (312) 750-8084
                              
         With a copy to:      Neal, Gerber & Eisenberg
                              Two North LaSalle, Suite 2100
                              Chicago, Illinois  60602
                              Attention:  Philip M. Kayman
                              Facsimile No.:  (312) 269-1747

Any such notice shall be deemed delivered as follows: (a) if personally
delivered, on the date of delivery to the address of the person to receive
such notice as evidenced by a signed receipt; (b) if sent by Federal Express
or other overnight courier service, on the date of delivery to the address
of the person to receive such notice as evidenced by a signed receipt; (c)
if sent by facsimile transmission, on the date transmitted to the person to
receive such notice if sent by 5:00 p.m., Eastern time, and on the next
business day if sent after 5:00 p.m., Eastern time; or (d) if mailed, on the
date of delivery to the address of the person to receive such notice as
evidenced by a signed receipt.  Any notice sent by facsimile transmission must
be confirmed by personally delivering, sending by courier, or mailing a copy
of the notice sent by facsimile transmission.  Any party may change its
address for notice by written notice given to the other at least ten (10)
calendar days before the effective date of such change in the manner provided
in this Section 14.1.

XV.B.                       Brokers and Finders.
           1.)     If and only if the sale contemplated herein actually
closes (as evidenced by the recordation of the Grant Deed), Seller has agreed
to pay a brokerage commission to Eastdil Broker Services, Inc., or its
designee ("Broker") pursuant to a separate agreement with Broker. Seller
shall not pay any brokerage commission or finder's fee to any broker or
finder retained by Buyer, and Buyer shall be solely responsible for any such
commission or fee.
       2.)     In the event of any claim (other than Broker's) for
broker's fees, finder's fees, commissions, or other similar compensation in
connection herewith: (i) Buyer, if such claim is based upon any agreement
alleged to have been made by Buyer, shall indemnify Seller against and hold
Seller harmless (using counsel reasonably satisfactory to Seller) from any
and all damages, liabilities, costs, expenses, and losses (including, without
limitation, attorneys' fees and costs) that Seller sustains or incurs by
reason of such claim; and (ii) Seller, if such claim is based upon any
agreement alleged to have been made by Seller, shall indemnify Buyer against
and hold Buyer harmless (using counsel reasonably satisfactory to Buyer) from
any and all damages, liabilities, costs, expenses, and losses (including,
without limitation, attorneys' fees and costs) that Buyer sustains or incurs
by reason of such claim.  The provisions of this subsection shall survive the
termination of this Agreement or the Closing.

XV.C.                          Assignment.
           1.)     Assignment by Buyer.  Neither all nor any portion of
Buyer's interest under this Agreement may be sold, assigned, encumbered,
conveyed, or otherwise transferred, whether directly or indirectly,
voluntarily or involuntarily, or by operation of law or otherwise (including,
without limitation, by a transfer of interests in Buyer) (collectively, a
"Transfer"), without the prior written consent of Seller, which consent may
be granted or denied in Seller's sole and absolute discretion.  Any attempted
Transfer without Seller's consent shall be null and void.
           Buyer's request for consent to any Transfer shall set forth in
writing the details of the proposed Transfer, including, without limitation,
the name, ownership and financial condition of the prospective transferee and
financial details of the proposed Transfer. In addition, Buyer shall provide
Seller with copies of all transaction documentation, certified by Buyer to be
true, correct and complete. Seller shall not withhold consent to any Transfer
by Buyer, provided that each of the following conditions have been met, as
reasonably determined by Seller following its review of the transaction
documentation submitted by Buyer:
               (1)    in the event of a transfer of all or any portion of
Buyer's interest in this Agreement, the prospective transferee shall assume
in writing the obligations of Buyer under this Agreement and the Documents;
               (2)     as a result of any Transfer, no less than twenty-five
percent (25%) of the ownership interests in Buyer or the prospective
transferee, as the case may be, shall be owned and held (directly or
indirectly) by a Pritzker Affiliate;
               (3)     if, as a result of such Transfer, less than fifty-one
percent (51%) of the ownership interests in Buyer or the prospective
transferee, as the case may be, will be owned and held (directly or
indirectly) by a Pritzker Affiliate, the obligations of the Buyer hereunder
and with respect to the transactions contemplated hereby (including, without
limitation, the obligation of Buyer to pay the Purchase Price), shall be
guaranteed pursuant to a guaranty agreement, in form and substance reasonably
satisfactory to Seller (including the waiver of such guarantor's right to
enforce the liquidated damages provision set forth in Section 4.5 hereof), by
a Pritzker Affiliate satisfactory to Seller in its sole and absolute
discretion, such determination to be made by Seller based upon audited
financial statements (with footnotes) of such Pritzker Affiliate; and
               (4)     in the event that the total "Consideration" (as
hereinafter defined) given, pledged or committed by any prospective
transferee in connection with any Transfer exceeds such prospective
transferee's "Proportionate Share" (as hereinafter defined), then the
Purchase Price hereunder shall be increased by the amount of such excess, up
to a maximum amount of $132,000,000 (the "Maximum Amount").  As used herein,
(A) the term "Consideration" shall mean any and all consideration, regardless
of the form of such consideration and whether in direct payment of the
Purchase Price hereunder, as contribution (debt or equity) to the capital of
the prospective transferee, or otherwise, but specifically excluding the
value derived by Buyer as a result of the retention of any entity controlled
(directly or indirectly) by a Pritzker Affiliate as the manager or operator
of the Hotel, and (B) the term  "Proportionate Share" shall mean the amount
obtained by multiplying $126,900,000 (the "Cash Consideration") by such
prospective transferee's percentage ownership interest in the Buyer or any
assignee of Buyer's interest hereunder (as applicable).  Notwithstanding the
foregoing to the contrary, in the event that,  in connection with any
Transfer, it is contemplated that the Operating Lease will be terminated,
then the Cash Consideration and the Maximum Amount set forth above in this
clause (iv) shall each be increased by the amount of the Early Termination
Fee (as defined in the Operating Lease) applicable as of the Effective Date,
exclusive of any increase to the Early Termination Fee which would be
effected by the Fifth Amendment.
               (v)  such Transfer shall be consummated on or before the fifth
(5th) calendar day prior to the scheduled Closing Date.

No Transfer, whether with or without Seller's consent, shall operate to
release Buyer or alter Buyer's primary liability to perform the obligations
of Buyer under this Agreement. Each of the parties acknowledges and agrees
that the restrictions on Transfer contained in this Section 14.3(a) shall not
survive the Closing (except and to the extent that such provisions were
breached prior to the Closing and Seller proceeded to close without knowledge
of such breach.)

           2.)     Assignment by Seller.  Seller shall have the right to
assign all or any portion of the Property and/or its interest hereunder to
any entity (including, without limitation by delivery of a deed in lieu of
foreclosure to any secured lender of Seller (or a designee of such secured
lender)); provided, however, that no such assignment shall relieve Seller of
its obligations hereunder and any such assignee shall take subject to such
obligations and the rights of Buyer hereunder.

     XV.D.      Successors and Assigns.  This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective heirs,
administrators and permitted successors and assigns.

     XV.E.      Amendments.  This Agreement may be amended or modified only
by a written instrument executed by both parties.

     XV.F.      Interpretation.  Words used in the singular shall include the
plural, and vice-versa, and any gender shall be deemed to include the other.
The captions and headings of the Articles and Sections of this Agreement are
for convenience of reference only, and shall not be deemed to define or limit
the provisions hereof.  Further, each party hereby acknowledges that such
party and its counsel, after negotiation and consultation, have reviewed and
revised this Agreement.  As such, the terms of this Agreement shall be fairly
construed and the rule of construction, to the effect that any ambiguities
herein should be resolved against the drafting party, shall not be employed
in the interpretation of this Agreement or any amendments, modifications, or
exhibits hereto or thereto.

     XV.G.      Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of
California, without regard to its principles of conflicts of law.

     XV.H.      Entire Agreement.  This Agreement, including the exhibits
attached hereto, constitutes the entire agreement between Buyer and Seller
pertaining to the subject matter hereof and supersedes all prior agreements,
understandings, letters of intent, negotiations, and discussions of the
parties, whether oral or written, and there are no warranties,
representations, or other agreements, express or implied, made to either
party by the other party in connection with the subject matter hereof except
as specifically set forth herein or in the documents delivered pursuant
hereto or in connection herewith.

     XV.I.      Attorneys' Fees and Costs.  If either Buyer or Seller brings
any suit or other proceeding with respect to the subject matter or the
enforcement of this Agreement, the prevailing party (as determined by the
court, agency, or other authority before which such suit or proceeding is
commenced), in addition to such other relief as may be awarded, shall be
entitled to recover reasonable attorneys' fees, expenses, and costs of
investigation actually incurred.  The foregoing includes, without limitation,
attorneys' fees, expenses, and costs of investigation incurred in appellate
proceedings, costs incurred in establishing the right to indemnification, or
in any action or participation in, or in connection with, any case or
proceeding under Chapter 7, 11, or 13 of the Bankruptcy Code, 11 United
States Code Section 101 et seq., or any successor statutes.

     XV.J.      Time of the Essence.  Time is of the essence with respect to
all matters contemplated by this Agreement.

     XV.K.      Confidentiality.  All information, surveys, reports, tests, and
studies relating to the Property obtained by Buyer before or after the
Effective Date, either by the observations and examinations of its agents and
representatives or by Seller's disclosure, shall remain confidential.  If the
transaction contemplated herein fails to close for any reason other than
solely as a result of Seller's default hereunder, Buyer shall deliver to
Seller, at no cost to Seller, all originals and copies of all such
information, surveys, reports, tests, and studies, together with all copies
of the Records or other documents, work papers, or materials of Seller
obtained by or provided to Buyer, and Buyer shall make no further
distributions or disclosures of any such information, surveys, reports,
tests, studies, documents, work papers, and materials other than Excluded
Reports.  Buyer and Seller agree that, to the extent reasonably practical,
they shall keep the contents of this Agreement confidential and that no
publicity or press release to the general public or otherwise with respect to
this transaction shall be made by either party without the prior written
consent of the other party, which consent may be denied in the sole and
absolute discretion of either party; provided, however, that Seller shall be
entitled to make any disclosures that Seller determines, in its sole and
absolute discretion, are necessary or desirable (i) to effect
the Limited Partner Approval (including, without limitation, the preparation,
filing and distribution (to the Securities and Exchanges Commission, the
Limited Partners and otherwise) of the Proxy Materials), (ii) to comply with
requirements of law or the Securities and Exchange Commission, or (iii)
otherwise to be disclosed or made available to the limited partners of Seller
or Seller's lenders.  Notwithstanding the foregoing, nothing herein contained
shall be deemed to limit or impair in any way Seller's or Buyer's right or
ability to disclose the details of the herein contemplated transaction to (a)
their respective counsel, consultants, advisors or accountants, provided that
each such person is informed of the confidentiality requirements hereof and
agrees to abide by the same or (b) such persons as they deem necessary in
order to enable either of them to comply with any requirements of law or any
court order.  Notwithstanding the foregoing, nothing herein contained shall
limit or impair in any way Buyer's right or ability to disclose the details
of the herein contemplated transaction to persons or entities who in good
faith are considering providing debt or equity financing to Buyer for
purposes of this transaction, or to governmental agencies in connection with
the application by Buyer for any required license or permit, or for transfer
of any Permit from Seller and Buyer. The confidentiality provisions of this
Section 14.11 shall survive the Closing.

     XV.L.      No Waiver.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a
continuing waiver. No waiver shall be binding unless executed in writing by
the party making the waiver.

     XV.M.      Further Acts.  Each party, at the request of the other, shall
execute, acknowledge (if appropriate), and deliver such additional documents,
and do such other additional acts, as may be reasonably required in order to
accomplish the intent and purposes of this Agreement.

     XV.N.      Exhibits.  Exhibits A through J inclusive, are attached
hereto and incorporated herein by reference.

     XV.O.      Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to constitute an original, but
all of which when taken together shall constitute one and the same
instrument, with the same effect as if all of the parties to this Agreement
had executed the same counterpart.

     XV.P.      No Intent to Benefit Third Parties.  Seller and Buyer do not
intend by any provision of this Agreement to confer any right, remedy, or
benefit upon any third party, and no third party shall be entitled to
enforce, or otherwise shall acquire any right, remedy, or benefit by reason
of, any provision of this Agreement.

     XV.Q.      Performance Due on Day Other Than Business Day.  If the time
period for the performance of any act called for under this Agreement expires
on a Saturday, Sunday, or any other day on which banking institutions in the
State of California are authorized or obligated by law or executive order to
close (a "Holiday"), the act in question may be performed on the next
succeeding day that is not a Saturday, Sunday, or Holiday.

     XV.R.      Expenses of Purchase and Sale.  Except as otherwise provided
in this Agreement, Seller and Buyer shall each bear its own direct and indirect
expenses incurred in connection with the negotiation and preparation of this
Agreement and the consummation and performance of the transactions
contemplated hereby.

     XV.S.      Severability.  Any provision or part of this Agreement which is
invalid or unenforceable in any situation in any jurisdiction shall, as to
such situation and such jurisdiction, be ineffective only to the extent of
such invalidity and shall not affect the enforceability of the remaining
provisions hereof or the validity or enforceability of any such provision in
any other situation or in any other jurisdiction, unless such invalidity
materially changes the transaction set forth herein, in which event the Deposit
shall be returned to Buyer and this Agreement shall terminate.

     XV.T.      No Recording.  Except in connection with a proceeding brought
to enforce the provisions of this Agreement, Buyer shall not record this
Agreement or any notice thereof.  If such recording other than in connection
with such an enforcement proceeding shall occur, Seller shall have, in
addition to all other remedies for breach provided by law, the right to
terminate this Agreement by written notice to Buyer.

     XV.U.      Quitclaim.  In the event of the termination of this Agreement
for any reason, Buyer shall deliver to Seller a quitclaim deed and such other
written instruments as Seller may reasonably require, executed and
acknowledged in recordable form, transferring to Seller any and all rights of
Buyer in the Property or any part thereof or interest therein; provided,
however, that Seller shall prepare any such instruments and shall pay all
charges, taxes and fees associated with recording the same.

     XV.V.      Termination of Agreement.

           1.)     If this Agreement is terminated pursuant to Section 9.9,
Article XIII or Section 14.19 hereof, or by reason of the failure of any
material condition precedent to Seller's or Buyer's obligations to occur
(other than as set forth in Section 8.1(e) and other than the failure of any
material condition precedent resulting from the material uncured breach by
Seller or Buyer of any of the provisions hereof), the Deposit (together with
all interest earned on such Deposit) shall be returned to Buyer and the Fifth
Amendment shall be null and void and of no further force or effect (and all
copies thereof shall be destroyed by Escrow Holder) and Escrow Holder shall
return all other cash, documents, instruments and other items theretofore
deposited into Escrow to the depositor party, without any further instruction
to Escrow Holder from either Seller or Buyer. Thereafter, this Agreement
shall be null and void and of no further force or effect and, except as
provided in Sections 5.2(c), 14.2(b) and 14.11 hereof, neither party shall
have any further rights or obligations hereunder, other than those rights and
obligations that, by their terms, survive the termination of this Agreement.
In the event of such termination, the costs of the Title Company and Escrow
Holder shall be borne equally by Buyer and Seller, and each party shall bear
its own costs (including attorneys' and accountants' fees) incurred
hereunder.

           2.)     If this Agreement is terminated pursuant to Section
8.1(e),  two fully executed copies of the Fifth Amendment shall be delivered
to each of Buyer and Seller by Escrow Holder, the Deposit (together with all
interest earned on such Deposit) shall be delivered to Buyer by Escrow Holder
and Escrow Holder shall return all other cash, documents, instruments and
other items theretofore deposited into Escrow to the depositor party, without
any further instruction to Escrow Holder from either Seller or Buyer.
Thereafter, this Agreement shall be null and void and of no further force or
effect and, except as provided in Sections 5.2(c), 14.2(b) and 14.11 hereof,
neither party shall have any further rights or obligations hereunder, other
than those rights and obligations that, by their terms, survive the
termination of this Agreement.  In the event of a termination pursuant to
Section 8.1(e), the costs of the Title Company and Escrow Holder shall be
borne equally by Buyer and Seller, and each party shall bear its own costs
(including attorneys' and accountants' fees) incurred hereunder.

           3.)     If this Agreement is terminated by Buyer as a result of
the material uncured breach by Seller (after notice and reasonable
opportunity to cure such breach) of any of the provisions hereof, two fully
executed copies of the Fifth Amendment shall be delivered to each of Buyer
and Seller by Escrow Holder, the Deposit (together with all interest earned
on such Deposit) shall be delivered to Buyer by Escrow Holder and Escrow
Holder shall return all other cash, documents, instruments and other items
theretofore deposited into Escrow to the depositor party, without any further
instruction to Escrow Holder from either Seller or Buyer.  Thereafter, this
Agreement shall be null and void and of no further force or effect and,
except as provided in Sections 5.2(c), 14.2(b) and 14.11 hereof, neither party
shall have any further rights or obligations hereunder, other than those rights
and obligations that, by their terms, survive the termination of this
Agreement; provided, however, that Buyer may exercise all remedies available
to it, at law or in equity and the costs of the Title Company and Escrow Holder
shall be borne by Seller.
           4.)     If this Agreement is terminated by Seller as a result of
the material uncured breach by Buyer (after notice and reasonable opportunity
to cure such breach) of any of the provisions hereof, the Fifth Amendment
shall be null and void and of no further force or effect (and all copies
thereof shall be destroyed by Escrow Holder) and the Deposit (together with
all interest earned on such Deposit) shall be delivered to Seller by Escrow
Holder, without any further instruction to Escrow Holder from either Seller
or Buyer. Thereafter, this Agreement shall be null and void and of no further
force or effect and, except as provided in Sections 5.2(c), 14.2(b) and 14.11
hereof, neither party shall have any further rights or obligations hereunder,
other than those rights and obligations that, by their terms, survive the
termination of this Agreement; provided, however, that (subject to the
provisions for liquidated damages set forth in Section 4.5 hereof), Seller
may exercise all remedies available to it, at law or in equity and the costs
of the Title Company and Escrow Holder shall be borne by Buyer.
     XV.W.      Waiver of Known Defaults.  Notwithstanding anything to the
contrary contained in this Agreement, in the event that either party hereto
has actual knowledge of the default of the other party (a "Known Default"),
but nonetheless elects to consummate the transactions contemplated hereby and
proceeds to Closing,  then the rights and remedies of the non-defaulting
party shall be waived with respect to any such Known Default upon the Closing
and the defaulting party shall have no liability with respect thereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date above.
                    "Seller"
                    UNION SQUARE HOTEL PARTNERS, L.P.,
                    a Delaware limited partnership


                    By:  Union Square/GP Corp.,
                         a Delaware corporation
                   Its:  General Partner
                               
                               
                    By:  s/Jeffrey C. Carter
                         __________________________________
            Print Name:  Jeffrey C. Carter
           Print Title:  President


                    "Buyer"

                    HT-HOTEL EQUITIES, INC.
                    a Delaware corporation
                               
                               
                         By:
                             __________________________________
                 Print Name:
                             ___________________________
                 Print Title: ___________________________
                         
                         By:
                              _________________________________

                 Print Name:
                               ___________________________
                 Print Title: ___________________________
                         
                         
ACCEPTED AND AGREED:

"Escrow Holder"
FIRST AMERICAN TITLE INSURANCE COMPANY
By:  _____________________________
Print Name: ______________________
Print Title:________________________

                                EXHIBIT A
                            LEGAL DESCRIPTION
                                    
                                    
All that certain real property situated in the City and County of San
Francisco, State of California, described as follows:

BEGINNING at the point of intersection of the northerly line of Post Street
with the westerly line of Stockton Street; running thence northerly along
said line of Stockton Street 275.00 feet and 10-3/4 inches to the southerly
line of Sutter Street; thence at a right angle westerly along said line of
Sutter Street 117.00 feet and 6 inches; thence at a right angle southerly 100
feet; thence at a right angle westerly 20 feet; thence at a right angle
southerly 175 feet and 10- 3/4 inches to the northerly line of Post Street;
thence at a right angle easterly along said line of Post Street 137.00 feet
and 6 inches to the point of beginning.

BEING a portion of 50 Vara Block No. 142, which said Block is delineated and
shown on the record of Survey Map thereof recorded January 8, 1970 in Book
"S" of Maps, Page 47, in the Office of the Recorder of the City and County of
San Francisco, State of California.


                               EXHIBIT A-1
                                SUBLEASES
                                    
1.    Sublease to D. Fine, Inc., 300 Post Street
2.    Sublease to Marta's Flowers, 345 Stockton Street


                                EXHIBIT B
                               FORM OF GRANT DEED

                          [See Following Pages]

                                    

                                    

                                    

                                    

                              ______________, 199_




                         San Francisco County Recorder
                       _________________________________
                       _________________________________
                      San Francisco, California  _________



                         Dear County Recorder:

           In  accordance with Section 11932 of the California Revenue and
Taxation Code, the undersigned hereby requests that this statement of
documentary  transfer tax not be recorded with the attached  Grant Deed
(the "Deed") but be affixed to the Deed after recordation and  be returned
as directed on the Deed.

          The Deed names ____________, as grantee.  The property that is the
subject of the Deed is located in the County of San Francisco, State of
California.
           The  amount of documentary transfer tax due on the attached Deed
is $_______________, computed on the full value of the property less any
encumbrances remaining on the property.


                    Grantor"
                    UNION SQUARE HOTEL PARTNERS, L.P.,
                    a Delaware limited partnership


                    By:  Union Square/GP Corp.,
                         a Delaware corporation
                    Its: General Partner


                         By:  s/Jeffrey C. Carter
                              __________________________________
                 Print Name:  Jeffrey C. Carter
                Print Title:  President
                                    
                                    
                                    
                                    
RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:





 . . . . . . . . . . . . . . . . (Space Above Line For Recorder's Use Only)

                               GRANT DEED
                                    
                                    
                                    
                                    
The undersigned Grantor declares that documentary transfer tax is not shown
pursuant to Section 11932 of the California Revenue and Taxation Code, as
amended.

     FOR VALUE RECEIVED, UNION SQUARE HOTEL PARTNERS, L.P., a Delaware
limited partnership (formerly known as Shearson Union Square Associates
Limited Partnership, a Delaware limited partnership), grants to
, a ("Grantee"), all that certain real property (the "Property") situated in
the County of San Francisco, State of California, more particularly described
in Exhibit A attached hereto and incorporated herein by reference.
     THE PROPERTY IS CONVEYED TO GRANTEE SUBJECT TO: (a) all liens,
encumbrances, easements, covenants, conditions, and restrictions of record;
(b) all matters that would be revealed or disclosed in an accurate survey of
the Property; (c) all matters that would be revealed or disclosed by a
physical inspection of the Property; (d) interests of tenants and other
parties in possession; (e) a lien not yet delinquent for taxes for real
property and personal property, and any general or special assessments
against the Property; and (f) zoning ordinances and regulations and any other
laws, ordinances, or governmental regulations or orders restricting or
regulating the use, occupancy, or enjoyment of the Property.
IN WITNESS WHEREOF, the undersigned has executed this Grant Deed as of
___________, 199_.
                    "Seller"
                    UNION SQUARE HOTEL PARTNERS,
                    L.P., a Delaware limited
                    partnership
                    
                    
                    By:  Union Square/GP Corp.,
                         a Delaware corporation
                    Its: General Partner


                         By:  s/Jeffrey C. Carter
                              __________________________________
                 Print Name:  Jeffrey C. Carter
                Print Title:  President
                                    
                                    
STATE OF __________ )
                    :ss.
COUNTY OF _________ )


   On the ____ day of __________, 199_, before me, ___________________
____________________________________________________________, personally
appeared _________________________________________________________________
__ personally known to me or __ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.


_________________________________
(SEAL)

                            Exhibit A to Grant Deed
                            Legal Description
                                    
All that certain real property situated in the City and County of San
Francisco, State of California, described as follows:

BEGINNING at the point of intersection of the northerly line of Post Street
with the westerly line of Stockton Street; running thence northerly along
said line of Stockton Street 275.00 feet and 10-3/4 inches to the southerly
line of Sutter Street; thence at a right angle westerly along said line of
Sutter Street 117.00 feet and 6 inches; thence at a right angle southerly 100
feet; thence at a right angle westerly 20 feet; thence at a right angle
southerly 175 feet and 10- 3/4 inches to the northerly line of Post Street;
thence at a right angle easterly along said line of Post Street 137.00 feet
and 6 inches to the point of beginning.

BEING a portion of 50 Vara Block No. 142, which said Block is delineated and
shown on the record of Survey Map thereof recorded January 8, 1970 in Book
"S" of Maps, Page 47, in the Office of the Recorder of the City and County of
San Francisco, State of California.


                                EXHIBIT C
                          FORM OF BILL OF SALE
                                    
                          [See Following Pages]
                                    

                              BILL OF SALE
                                    
  FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are
hereby acknowledged, UNION SQUARE HOTEL PARTNERS, L.P., a Delaware limited
partnership ("Seller"), does hereby sell and convey to ("Buyer"), all of
Seller's right, title, and interest in and to the personal property,
furniture, fixtures and equipment (collectively, the "Personal Property")
owned by Seller, located at and used exclusively for the operation,
maintenance, or management of the "Hotel" (as hereafter defined), including,
without limitation, the personal property described on Schedule I attached
hereto, but expressly excluding, without limitation, any and all personal
property leased by Seller under the contracts set listed on Schedule II
attached hereto, and any and all personal property owned or leased by the
California Hyatt Corporation, guests of the Hotel, tenants under leases at
the Hotel, and suppliers, contractors and vendors serving the Hotel.  The
"Hotel" shall mean and refer to that certain hotel commonly known as the
"Grand Hyatt San Francisco" located at 345 Stockton Street, San Francisco,
California.

     Seller represents and warrants to Buyer that Seller has good and
marketable title to the Personal Property.  Seller has not made and does not
make any representations or warranties of any kind whatsoever, oral or
written, express or implied, with respect to the condition any of the
Personal Property or any such related matters (including, without limitation,
any representation or warranty of merchantability or fitness for a particular
purpose) and that the Personal Property is sold to Buyer in its present "AS
IS, WHERE IS" condition.
     By its acceptance of this Bill and Sale and the Personal Property, Buyer
hereby acknowledges receipt of the Personal Property and further acknowledges
that Buyer is receiving such Personal Property in its present "AS IS, WHERE
IS" condition without recourse or representation or warranty of any kind
whatsoever as to the condition thereof.
     This Bill of Sale shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, legal representatives, successors,
and assigns.
     This Bill of Sale shall be governed by and construed and enforced in
accordance with the laws of the State of California, without regard to its
principles of conflicts of law.
     IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of
     ___________, 199_.

                    "Seller"
                     UNION SQUARE HOTEL PARTNERS, L.P.,
                     a Delaware limited partnership

                By:  Union Square/GP Corp.,
                     a Delaware corporation
               Its:  General Partner

                By:   s/Jeffrey C. Carter
                      _____________________________________
        Print Name:   Jeffrey C. Carter
       Print Title:   President
                                    
                                    
                                    
                           Schedule I to Bill of Sale
                    Description of Certain Personal Property

          The following personal property to the extent located in and
about the land and improvements known as the Grand Hyatt-San Francisco,
San Francisco, California, consisting of:

                    (i)  furniture and furnishings (including furniture,
               carpeting, draperies, lamps and other items for all guest
               rooms, offices, and public areas);
                    (ii)      hotel equipment (including office equipment,
               dining room wagons, material handling equipment, cleaning and
               engineering equipment, vehicles and all equipment required for
               the operation of kitchens, bars, laundries and dry cleaning
               facilities);
               
                    (iii)     uniforms, tools and utensils (including staff
               uniforms and dining room, engineering and housekeeping tools
               and utensils); and
               
                    (iv) china, glassware, linens, silverware and the like.



                          Schedule II to Bill of Sale
                Description of Excluded Personal Property
                                    
All personal property leased by Seller under the following contracts:

                         (i)       Lease Agreement, dated as of September 15,
                    1989, by and between Seller and Telerent Leasing
                    Corporation, as amended by Lease Addendum #II executed by
                    Seller on September 24, 1994.
                    
                         (ii)      Lease Renewal Agreement, dated as of
                    November 21, 1995, by and between Seller and M&SD
                    Financial Services, a division of Electronic Data Systems
                    Corporation.
                    
                    
                    
                                EXHIBIT D
                 FORM OF ASSIGNMENT AND ASSUMPTION OF CONTRACTS
                             [See Following Pages]




                    ASSIGNMENT AND ASSUMPTION OF
                   CONTRACTS, PERMITS AND MISCELLANEOUS
                   PROPERTY ASSETS
                   
                   
     This ASSIGNMENT AND ASSUMPTION OF CONTRACTS, PERMITS AND MISCELLANEOUS
PROPERTY ASSETS (this "Assignment") is made as of , 199_ by UNION SQUARE
HOTEL PARTNERS, L.P., a Delaware limited partnership ("Assignor"), in favor
of ("Assignee"), with reference to the following facts:

 A.   Assignor is the owner of that certain real property located at 345
Stockton Street in the County of San Francisco, State of California, commonly
known as the "Grand Hyatt San Francisco" and more particularly described in
Exhibit A attached hereto and incorporated herein by reference, together with
all buildings and other improve ments thereon (collectively, the "Real
Property").  The Real Property is being conveyed to Assignee pursuant to a
certain Grant Deed exe cuted by Assignor in favor of Assignee.

     B.   Assignor, as the owner of the Real Property, has an interest in the
following items: (i) those certain agreements, warranties, and contracts
listed on Exhibit B attached hereto and incorporated herein by reference
(collectively, the "Contracts"), (ii) those certain licenses, franchises and
permits listed on Exhibit B attached hereto, obtained by Seller, if any, used
in or relating to the ownership, occupancy or operation of the Property or any
part thereof (collectively, the "Permits"),  and (iii) Assignor's interest,
if any, in and to any contract rights, leases, concessions, trademarks,
service marks, trade names (including the names of restaurants, lounges and
meeting rooms), logos, copyrights, and rights under guaranties or warranties
relating to goods, merchandise or services at or relating to the Hotel
(collectively, the "Miscellaneous Property Assets" and, collectively with the
Permits and the Contracts, the "Assigned Assets").

     NOW, THEREFORE, in consideration of the foregoing facts:

          1.   Assignor hereby assigns, transfers, and conveys to Assignee
all of Assignor's right, title, and interest in and to the Assigned Assets.
This Assignment is made without recourse or representation or warranty
whatsoever. By executing this Assignment and assuming the obligations under
the Assigned Assets, Assignee acknowledges and agrees that Assignee and
Assignee's representatives have been afforded the opportunity to make and
have made such inspections of the Assigned Assets assigned hereby and matters
related thereto as they have deemed necessary and desirable.  Assignee
acknowledges that Assignor has not made and does not make any representations
or warranties of any kind whatsoever, oral or written, express or implied,
with respect to any of the Assigned Assets or any such related matters,
except as and to the extent set forth in that certain Purchase and Sale
Agreement and Joint Escrow Instructions, dated as of November 4, 1996, by and
between Assignee and Assignor.

          2.   Assignee hereby agrees to and accepts such assignment and, in
addition, expressly assumes and agrees to keep, perform, and fulfill all of
the terms, covenants, obligations, and conditions required to be kept,
performed, and fulfilled by Assignor under, or with respect to, the Assigned
Assets from and after the "Closing Date" (as hereafter defined).  Assignee
further agrees to indemnify, defend, and hold Assignor harmless from and
against any and all liability, loss, cost, damage, and expense (including,
without limitation, reasonable attorneys' fees and costs) directly or
indirectly related to any breach or default by Assignee under the Contracts
or the Permits or in Assignee's obligations hereunder, accruing from and
after the Closing Date. Assignor agrees to indemnify, defend, and hold
Assignee harmless from and against any and all liability, loss, cost, damage,
and expense (including, without limitation, reasonable attorneys' fees and
costs) directly or indirectly related to any breach or default by Assignor
under the Contracts or the Permits prior to the Closing Date."Closing Date"
shall mean and refer to the date this Assignment is delivered to Assignee.

          3.   The provisions of this Assignment shall be binding upon and
inure to the benefit of Assignor and Assignee and their respective successors
and permitted assigns.

          4.   This Assignment may be executed in as many counterparts as may
be deemed necessary and convenient, and by the different parties hereto on
separate counterparts, each of which, when so executed, shall be deemed an
original, but all of which such counterparts shall constitute one and the
same instrument.

          5.   This Assignment and the legal relations of the parties hereto
shall be governed by and construed and enforced in accordance with the laws
of the State of California, without regard to its principles of conflicts of
law.

          6.   In the event of any litigation between Assignor and Assignee
arising out of the obligations of Assignor or Assignee under this Assignment
or concerning the meaning or interpretation of any provision contained
herein, the losing party shall pay the prevailing party's costs and expenses
of such litigation, including, without limitation, reasonable attorneys' fees
and costs.  The prevailing party shall be determined by the court based upon
an assessment of which party's major arguments or positions taken in the
proceedings could fairly be said to have prevailed over the other party's
major arguments or positions on major disputed issues in the court's
decision.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this
Assignment and Assumption of Contracts, Permits and Miscellaneous Property
Assets as of the date first set forth above.

                    "Assignor"

                    UNION SQUARE HOTEL PARTNERS, L.P.,
                    a Delaware limited partnership
                    
                    
               By:  Union Square/GP Corp.,
                    a Delaware corporation
              Its:  General Partner


               By:  s/Jeffrey C. Carter
                    __________________________________
       Print Name:  Jeffrey C. Carter
      Print Title:  President
                                    
                                    
                    "Assignee"


                    By:  ____________________________________
                         a___________________________________
                         
                         
                         By:__________________________________
                         Print Name: _____________________
                         Print Title: _____________________



              Exhibit A to Assignment and Assumption of Contracts
                               Legal Description
                               
                               
All that certain real property situated in the City and County of
San Francisco, State of California, described as follows:

BEGINNING at the point of intersection of the northerly line of Post Street
with the westerly line of Stockton Street; running thence northerly along
said line of Stockton Street 275.00 feet and 10-3/4 inches to the southerly
line of Sutter Street; thence at a right angle westerly along said line of
Sutter Street 117.00 feet and 6 inches; thence at a right angle southerly 100
feet; thence at a right angle westerly 20 feet; thence at a right angle
southerly 175 feet and 10- 3/4 inches to the northerly line of Post Street;
thence at a right angle easterly along said line of Post Street 137.00 feet
and 6 inches to the point of beginning.

BEING a portion of 50 Vara Block No. 142, which said Block is delineated and
shown on the record of Survey Map thereof recorded January 8, 1970 in Book
"S" of Maps, Page 47, in the Office of the Recorder of the City and County of
San Francisco, State of California.



                   Exhibit B to Assignment and Assumption of
          Contracts, Permits and Miscellaneous Property Assets
                                    
                                    
                                    
1.   Contracts:

                        Lease Agreement, dated as of September 15, 1989, by
               and between Seller and Telerent Leasing Corporation, as
amended by Lease Addendum #II executed by Seller on September 24, 1994.

                        Lease Renewal Agreement, dated as of November 21,
               1995, by and between Seller and M&SD Financial Services, a
               division of Electronic Data Systems Corporation.
               
2.   Permits:

                        Permit to Operate Underground Storage Tank, effective
               February 1, 1996 and expiring February 1, 1997, issued to
               Seller by the Department of Public Health of the City and
               County of San Francisco for Tank No. 017020001001 (diesel
               fuel).
               
               
               
                                EXHIBIT E
              FORM OF ASSIGNMENT AND ASSUMPTION OF OPERATING LEASE
                             [See Following
Pages]
Recording Requested by:
____________________
____________________
____________________


When recorded mail to:
____________________
____________________
____________________


    ----------------------------------------------------------------
                Space Above This Line For Recorder's Use
                                    
                                    
                                    
             ASSIGNMENT, ASSUMPTION AND INDEMNITY AGREEMENT
                                    
     This ASSIGNMENT, ASSUMPTION AND  INDEMNITY AGREEMENT (this "Assignment")
is entered as of                           , 199_, by and between Union
Square Hotel Partners, L.P., a Delaware limited partnership ("Assignor") and
___________________, a ______________________ ("Assignee").

                                RECITALS
                                    
     A.        California Hyatt Corporation, a California corporation
("Tenant") and Massachusetts Life Insurance Company ("Mass. Mutual") are
parties to that certain Lease and Agreement dated January 4, 1973 (the
"Lease") covering that certain real property located in the City and County
of San Francisco and improvements thereon known as the Hyatt on Union Square,
as more particularly described on Exhibit A attached hereto (the "Property").
A short form of the Lease was recorded on January 4, 1973 in the Official
Records of the City and County of San Francisco at Book B176, Page 76, Series
V-43591.

     B.             Assignor is the successor in interest to Mass. Mutual's
interest in the Lease pursuant to that certain Assumption, Consent and
Indemnity Agreement recorded on July 31, 1980 in the Official Records of the
City and County of San Francisco at Book D34, Page 481, Series C-124183.

     C.             Assignor and Assignee are parties to that certain
Purchase and Sale Agreement and Joint Escrow Instructions pursuant to which
Assignor has agreed to sell and Assignee has agreed to purchase the Property
and Assignor has agreed to assign and Assignee has agreed to assume the Lease.

               NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Assignor and
Assignee agree
as follows:
               (a)    Assignor assigns and transfers to Assignee all of the
right, title and interest of Assignor in, to and under the Lease.

               (b)    Assignor warrants to Assignee that Assignor has the
right and authority to assign and transfer to Assignee the Lease.

               (c)    Assignee assumes as of and from the date hereof all of
Assignor's obligations under the Lease.

               (d)    Assignee agrees to indemnify and hold Assignor
harmless from and against any and all losses, costs, liabilities, damages and
expenses (including  reasonable attorneys' fees and expenses), accruing on or
after the date hereof and arising out of the Lease.

               (e)    Assignee further agrees to indemnify and hold Assignor
harmless from and against any and all losses, costs, liabilities, damages and
expenses (including  reasonable attorneys' fees and expenses), whenever
arising or accruing, with respect to any and all claims and liabilities
relating to current or former employees of Tenant, whether with respect to
the Worker Adjustment and Retraining Notification Act, codified at 29 U.S.C.
2101 et.seq., or otherwise.

               (f)    In the event of any litigation between Assignor and
Assignee arising out of the obligations of Assignor or Assignee under this
Agreement or concerning the meaning or interpretation of any provision
contained herein, the losing party shall pay the prevailing party's costs and
expenses of such litigation, including, without limitation, reasonable
attorneys' fees and costs.  The prevailing party shall be determined by the
court based upon an assessment of which party's major arguments or positions
taken in the proceedings could fairly be said to have prevailed over the
other party's major arguments or positions on major disputed issues in the
court's decision.

               (g)    This Assignment shall be binding on, and inure to the
benefit of, the parties hereto, their successors in interest and assigns.

               (h)    This Assignment may be executed in as many
counterparts as may be deemed necessary and convenient, and by the different
parties hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all of which such counterparts shall
constitute one and the same instrument.

               (i)    This Assignment and the legal relations of the parties
hereto shall be governed by and construed and enforced in accordance with the
laws of the State of California, without regard to its principles of
conflicts of law.

      IN WITNESS WHEREOF, Assignor and Assignee have executed this
Assignment as of the day and year first hereinabove written.



     HT-HOTEL EQUITIES, INC.             UNION SQUARE HOTEL a Delaware
     PARTNERS, L.P. , a corporation      Delaware limited partnership
     
     
     By________________________          By:   UNION SQUARE/ GP Corp.,
    Title _____________________               its general partner
                                  
                                  
     By________________________          By:
     ________________________ Title_____________________
     Jeffrey Carter, President
     
     

STATE OF __________ )
                    :ss.
COUNTY OF _________ )


          On the ____ day of __________, 199_, before me,
___________________
____________________________________________________________, personally
appeared

_________________________________________________________________
__ personally known to me or __ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.


------------------------
(SEAL)



STATE OF __________ )
                    :ss.
COUNTY OF _________ )


          On the ____ day of __________, 199_, before me,
___________________
____________________________________________________________, personally
appeared  ___________________________________________________________________
personally known to me or __ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.


------------------------
(SEAL)

                        Exhibit A To Assignment of Lease
                            Legal Description
                                    
All that certain real property situated in the City and County of San
Francisco, State of California, described as follows:

BEGINNING at the point of intersection of the northerly line of Post S treet
with the westerly line of Stockton Street; running thence northerly along
said line of Stockton Street 275.00 feet and 10-3/4 inches to the southerly
line of Sutter Street; thence at a right angle westerly along said line of
Sutter Street 117.00 feet and 6 inches; thence at a right angle
southerly 100 feet; thence at a right angle westerly 20 feet; thence at a
right angle southerly 175 feet and 10- 3/4 inches to the northerly line of
Post Street; thence at a right angle easterly along said line of Post Street
137.00 feet and 6 inches to the point of beginning.

BEING a portion of 50 Vara Block No. 142, which said Block is delineat ed and
shown on the record of Survey Map thereof recorded January 8, 1970 in Book
"S" of Maps, Page 47, in the Office of the Recorder of the City and County
of San Francisco, State of California.

                                EXHIBIT F
                      FORM OF NON-FOREIGN AFFIDAVIT
                                    
                          [See Following Page]
                                    
                                    
                                    
                            NON-FOREIGN AFFIDAVIT OF
                    UNION SQUARE HOTEL PARTNERS, L.P.
                     A DELAWARE LIMITED PARTNERSHIP
                                    
                                    
          Section 1445 of the Internal Revenue Code of 1986, as amended (the
"IRC"), provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person.  In addition, Section
18805 of the California Revenue and Taxation Code, as amended (the "R&T
Code"), provides that a transferee of a California real property interest
must withhold tax if the transferor's last known street address is outside
the boundaries of the State of California.  To inform the transferee that
withholding of tax is not required upon the disposition of a U.S. and
California real property interest by UNION SQUARE HOTEL PARTNERS, L.P., a
Delaware limited partnership ("Transferor"), the undersigned Transferor
hereby certifies as follows:

         1.   Transferor is not a foreign person, foreign corporation,
foreign partnership, foreign trust, or foreign estate (as those terms are
defined in the IRC and the regulations promulgated thereunder);

         2.   Transferor's U.S. taxpayer I.D. number is ________; and

         3.   Transferor's office address is _________________.
                                    
          Transferor understands that this certification may be disclosed to
the Internal Revenue Service and/or the California Franchise Tax Board and
that any false statement contained herein could be punished by fine,
imprisonment, or both.

          Under penalties of perjury, Transferor declares that it has
examined the foregoing certification and it is true, correct, and complete.

                        "Transferor"

                        UNION SQUARE HOTEL PARTNERS, L.P.,
                        a Delaware limited partnership


                        By:  Union Square/GP Corp.
                             a Delaware corporation
                        Its: General Partner


                          By: s/Jeffrey C. Carter
                              ________________________________
                  Print Name: Jeffrey C. Carter
                 Print Title: President
                             
                             
                             
                             
                                   EXHIBIT G
                           FORM OF ESTOPPEL AGREEMENT

                              [See Following Page]
               ESTOPPEL AGREEMENT OF CALIFORNIA HYATT
                             CORPORATION ________________, 199_
                             
HT-Hotel Equities, Inc.
200 West Madison
Chicago, Illinois 60606
Attention:  General Counsel

Union Square Hotel Partners, L.P.
c/o Union Square/GP Corp.
3 World Financial Center, 29th Floor
New York, New York  10285-2900

        RE:  Grand Hyatt San Francisco

Ladies and Gentlemen:

        California Hyatt Corporation, a Delaware corporation ("Tenant"), as
lessee and operator, and Union Square Hotel Partners, L.P., a Delaware
limited partnership ("Landlord"), as successor-in-interest to the lessor and
as owner, are parties to that certain Agreement and Lease, dated January 4,
1973, as amended by First Amendment to Lease dated as of August 29, 1986,
Second Amendment to Lease dated as of May 1, 1989, Third Amendment to Lease
dated as of June 30, 1992, and Fourth Amendment to Lease dated as of August
29, 1996 (collectively, the "Lease"), pursuant to which Landlord has leased
to Tenant for Tenant's operation in accordance therewith, certain real
property and improve ments thereon (collectively, the "Property") located in
San Francisco County, California, which Property is more particularly
described in Exhibit "A" attached hereto.  Tenant understands that HT-Hotel
Equities, Inc., a Delaware corporation ("Purchaser"), has entered into an
agreement with Landlord to purchase the Property, subject to the Lease.
Landlord has requested that Tenant deliver this Estoppel Certificate to
Purchaser and Landlord, and by delivering this Estoppel Certificate to
Purchaser, Tenant acknowledges that Landlord has ad vised Tenant of the
prospective transaction described in this paragraph.

        Tenant hereby certifies to Landlord and to Purchaser, as of the date
hereof, as follows:

1.    Lease.  The Lease attached hereto as Exhibit "B" is a true, correct,
and complete copy of the Lease, is in full force and effect, and Landlord and
Tenant have not entered into any other agreement that has modified,
supplemented, or amended in any way the terms or provisions of the Lease, and
the Lease represents the entire agreement between Landlord and Tenant as to
the Property and the premises demised thereunder.

2.   Landlord's Obligations.  Landlord has done all things required of
Landlord under the Lease to be done as of the date hereof, and Tenant, as of
the date hereof, has no offset, defense, deduction, or claim against
Landlord, and Landlord is not in default under the Lease, and no event has
occurred which, with the passage of time or with the giving of notice, or
both, would result in a default by Landlord under the Lease.

3.   Rent.  Tenant is not entitled to, and has made no agreement with
Landlord or its agents or employees concerning, free rent, partial rent,
rebate of rent payments, credit or offset or reduction in rent, or any other
type of rental concession.

4.   Purchase Rights.  Except as expressly provided in the Lease, Tenant has
no right to renew or extend the term of the Lease, nor any option or
preferential right to purchase all or any part of the premises demised
thereunder or all or any part of the Property, nor any right, title, or
interest with respect to the Property other than as a tenant and operator of
the Property under the Lease.

5.   Security Deposit.  Landlord holds no security or other depos it of
Tenant, and all security or other deposits of Tenant previously held by
Landlord have been refunded in full to Tenant.

6.   Assignment and Subletting.  Tenant has not assigned any of its rights
under the Lease, and except as described on Exhibit "C" attached hereto, has
not sublet the demised premises to any sublessee. Except as described on
Exhibit "C", no one except Tenant and its employees occupies the premises
demised under the Lease.

7.   Insurance.  All insurance, if any, required to be maintained by Tenant
under the Lease is presently in full force and effect.

8.   Pending Actions.  No actions, voluntary or otherwise, are pending
against Tenant under the bankruptcy, insolvency, or similar laws of the
United States or any state thereof.

9.   Consent to Sale.  Tenant acknowledges and consents to Landlord's sale of
the Property and assignment of the Lease to Purchaser.

10.  Notices.  The address for notices to be sent to Tenant is .

                                   Very truly yours,
                                   CALIFORNIA HYATT CORPORATION,
                                   a Delaware corporation

                                   By:
                                   ________________________
                                   Print Name:
                                   ________________ Print
                                   Title:________________
                                   
                                   
                                   
                                   
                           LANDLORD'S CERTIFICATION:


               By its execution hereof, Landlord hereby certifies to Tenant
and to Purchaser that Tenant  has done all things required of Tenant under
the Lease to be done as of the date hereof, and Landlord, as of the date
hereof, has no offset, defense, deduction, or claim against Tenant (other
than for the payment of rent under the Lease not yet due and payable), and
Tenant is not in default under the Lease, and no event has occurred which,
with the passage of time or with the giving of notice, or both, would result
in a default by Tenant under the Lease.


                         UNION SQUARE HOTEL PARTNERS, L.P.,
                         a Delaware limited partnership


                         By:  Union Square/GP Corp.
                              a Delaware corporation
                         Its: General Partner


                              By:
                              ________________________________
                              Print Name:   Jeffrey C. Carter
                              Print Title:   President
                              
                              
                              
                       Exhibit "A" to Estoppel Agreement

                      LEGAL DESCRIPTION OF PROPERTY
  All that certain real property situated in the City and County of San
Francisco, State of California, described as follows:

BEGINNING at the point of intersection of the northerly li ne of Post Street
with the westerly line of Stockton Street; running thence northerly along
said line of Stockton Street 275.00 feet and 10-3/4 inches to the southerly
line of Sutter Street; thence at a right angle westerly along said line of
Sutter Street 117.00 feet and 6 inches; thence at a right angle southerly 100
feet; thence at a right angle westerly 20 feet; thence at a right angle
southerly 175 feet and 10-3/4 inches to the northerly line of Post Street;
thence at a right angle easterly along said line of Post Street 137.00 feet
and 6 inches to the point of beginning.

BEING a portion of 50 Vara Block No. 142, which said Block is delineated and
shown on the record of Survey Map thereof recorded January 8, 1970 in Book
"S" of Maps, Page 47, in the Office of the Recorder of the City and County of
San Francisco, State of California.




                    Exhibit "B" to Estoppel Agreement
                                    
                                  LEASE
                                    
                            [To Be Attached]

                                    

                                    

                              Exhibit "C" to Estoppel Agreement

                                SUBLEASES

                            [To Be Attached]
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                EXHIBIT H
                            LIST OF CONTRACTS
                                    
     1.      Lease Agreement, dated as of September 15, 1989, by and between
     Seller and Telerent Leasing Corporation, as amended by Lease Addendum
     #II executed by Seller on September 24, 1994
     
     2.   Lease Renewal Agreement, dated as of November 21, 1995, by and
     between Seller and M&SD Financial Services, a division of Electronic
     Data Systems Corporation
     
     
     
                                EXHIBIT I
                             LIST OF PERMITS
                                    
     1.        Permit to Operate Underground Storage Tank, effective February
     1, 1996 and expiring February 1, 1997, issued to Seller by the
     Department of Public Health of the City and County of San Francisco for
     Tank No. 017020001001 (diesel fuel).
     

                                EXHIBIT J
                   FORM OF LIMITED PARTNER VOTE NOTICE
                                    
                          [See Following Page]
                                    
                                    
                                    
                                    
                       LIMITED PARTNER VOTE NOTICE
                                    
                                 [Date]
                                    
                                    
To:       HT-Hotel Equities, Inc.
          First American Title Insurance Company

From:     Union Square Hotel Partners, L.P.

          Re:  Grand Hyatt San Francisco

          Capitalized terms used but not defined herein shall have the
meanings ascribed thereto in that certain Purchase and Sale Agreement and
Joint Escrow Instructions, dated as of November 4, 1996 (the "Purchase
Agreement") by and among HT-Hotel Equities, Inc., Union Square Hotel
Partners, L.P., and First American Title Insurance Company.

          This notice shall serve to inform you that a meeting (the
"Meeting") of the limited partners and unit holders (collectively, the
"Limited Partners") of Union Square Hotel Partners, L.P. was held on , 199
at which time the Limited Partners voted to [approve/disapprove] the sale of
the Property in accordance with the terms and conditions of the Purchase
Agreement.

          The undersigned hereby certifies that the Meeting was duly noticed
and held in accordance with the terms of the Seller's Partnership Agreement
and that a vote of the Limited Partners was solicited at such Meeting in
accordance with the Proxy Materials.

                         Very truly yours,
                         UNION SQUARE HOTEL PARTNERS, L.P.,
                         a Delaware limited partnership

                         By:  Union Square/GP Corp.,
                              a Delaware corporation,
                         Its: General Partner
                              By:  ______________________
                                     Jeffrey C. Carter
                                     President
                                        
                                        
                                        
                                        
                               TABLE OF CONTENTS
        ARTICLE I
EFFECTIVE DATE
2
        ARTICLE II
DEFINITIONS
2


        ARTICLE III
PROPERTY SUBJECT TO AGREEMENT
7
        ARTICLE IV
PURCHASE PRICE, PAYMENT OF
PURCHASE PRICE AND LIQUIDATED DAMAGES
8

        4.1  Purchase Price.
8
        4.2  Payment of Purchase Price; Deposit.
8
        4.3  Allocation of Purchase Price.
9
        4.4  Investment of Deposit.
9
        4.5  Liquidated Damages.
9


        ARTICLE V
"AS IS, WHERE IS" SALE
11

        5.1  "AS IS, WHERE IS" Sale.
11
        5.2  Inspection.
13


        ARTICLE VI
TITLE TO PROPERTY; APPROVALS
14

        6.1  Title.
14
        6.2  Approval of Title.
15
      6.3  Personal Property and Contracts, Permits
             and Miscellaneous Property Assets.
16
        6.4  Approval of Other Matters.
16


        ARTICLE VII
BUYER'S CONDITIONS PRECEDENT TO CLOSING
16


        7.1  Owner's Title Policy.
16
        7.2  Seller's Non-Foreign Affidavit.
16
        7.3  Seller's Organizational Documents.
17
        7.4  Compliance by Seller.
17
        7.5  Representations and Warranties.
17
        7.6  Limited Partner Approval.
17
        7.7  Covenant to Satisfy Conditions.
17


        ARTICLE VIII
SELLER'S CONDITIONS PRECEDENT TO CLOSING
17

        8.1  Limited Partner Vote.
17
        8.2  Buyer's Organizational Documents.
20
        8.3  Estoppel by Operator.
21
        8.4  Compliance By Buyer.
21
        8.5  Representations and Warranties.
21
        8.6  Covenant to Satisfy Conditions.
21


        ARTICLE IX
ESCROW AND CLOSING
21

        9.1  Deposit With Escrow Holder and Escrow
             Instructions.
             21
        9.2  Closing.
21
        9.3  Deliveries by Seller.
22
        9.4  Deliveries by Buyer.
23
        9.5  Other Instruments; Revised Deliveries.
24
        9.6  Prorations and Apportionments.
24
        9.7  Costs and Expenses.
26
        9.8  Close of Escrow.
26
        9.9  Notification; Closing Statements.
27


        ARTICLE X
REPRESENTATIONS, WARRANTIES, AND COVENANTS
28

        10.1 Buyer's Representations and Warranties.
28
        10.2 Seller's Representations and Warranties.
28
        10.3 Continuation and Survival of
             Representations and Warranties;
             Limitations on Liability Therefor.
30
        ARTICLE XII
OPERATION OF THE PROPERTY
31


        ARTICLE XIII
LOSS BY CASUALTY; CONDEMNATION
32

        13.1 Damage or Destruction.
32
        13.2 Condemnation.
32


        ARTICLE XIV
MISCELLANEOUS
33
        14.1  Notices.
33
        14.2  Brokers and Finders.
34
        14.3  Assignment.
34
        14.4  Successors and Assigns.
36
        14.5  Amendments.
36
        14.6  Interpretation.
36
        14.7  Governing Law.
36
        14.8  Entire Agreement.
36
        14.9  Attorneys' Fees and Costs.
36
        14.10 Time of the Essence.
37
        14.11 Confidentiality.
37
        14.12 No Waiver.
37
        14.13 Further Acts.
38
        14.14 Exhibits.
38
        14.15 Counterparts.
38
        14.16 No Intent to Benefit Third Parties.
38
         14.17 Performance Due on Day Other Than
              Business Day.
38
        14.18 Expenses of Purchase and Sale.
38
        14.19 Severability.
38
        14.20 No Recording.
38
        14.21 Quitclaim.
38
        14.22 Termination of Agreement.
39
        14.23 Waiver of Known Defaults
40