Document:

<PAGE>
                                                            EXHIBIT 10.17.03.01

                            EARLY RATE LOCK AGREEMENT

         This Early Rate Lock Agreement is made as of April 26, 2005 by and
between Ashford Hospitality Limited Partnerhip ("Borrower"), and Merrill Lynch
Mortgage Lending, Inc., individually and as agent for its affiliates ("ML").

1.       Borrower and Ashford Hospitality Trust, Inc., have executed and
         delivered to ML a Commitment Letter dated April 26, 2005 (the
         "Commitment Letter") for a mortgage loan in the approximate principal
         amount of $370,000,000 (the "Loan") with regard to financing certain
         properties identified on Exhibit A to the Commitment Letter (the
         "Property");

2.       Borrower has requested that, as an accommodation to Borrower, and at
         Borrower's sole risk, cost and expense, ML lock in advance the interest
         rate for the Loan (the "Rate Lock"), in connection with ML's issuance
         of the Commitment Letter, notwithstanding that all of the conditions
         necessary to fund the Loan as set forth therein have not yet been
         fulfilled and satisfied by Borrower. Borrower acknowledges that ML has
         not completed its due diligence review, except as otherwise set forth
         in the Commitment Letter.

3.       Neither this Agreement nor any Confirmation (as hereinafter defined)
         shall constitute a commitment to lend, either express or implied. ML's
         commitment to make the Loan is documented in the Commitment Letter.

4.       Borrower shall be permitted to enter into the Rate Lock transaction
         (the "Transaction") with regard to the requested Loan subject to the
         terms of this Agreement. Such Transaction shall be evidenced by a
         confirmation in the form attached hereto and made a part hereof as
         EXHIBIT A (the "Confirmation") setting forth, among other things, the
         "Fixed Rate", the "Specified Principal Amount", the "Initial Rate Lock
         Deposit", the "Breakage Multiplier", the "Base Swap Rate Index", the
         "Base Swap Rate", the "Margin Threshold", the "Initial CMBS Spread
         Index", the "CMBS Spread Index", and the "Fixed Rate Period" of the
         Transaction.

5.       In order to effect the Transaction, ML may or may not enter into
         certain hedging arrangements and/or a series of combined or offsetting
         transactions in its sole and absolute discretion through the purchase
         or sale of United States Treasury notes, swap contracts, or any other
         instruments deemed necessary or appropriate, any of which may be with
         an affiliate of ML (collectively, "Hedging Arrangements").
         Notwithstanding the terms hereof, ML will not be required to Rate Lock
         on any day or at any time at which, in ML's sole and absolute judgment,
         there is not an orderly market.

6.       Borrower understands and agrees that ML is under no obligation to give,
         and will not give, Borrower the benefit of any decline in interest
         rates subsequent to ML's locking of the interest rate hereunder.

7.       In consideration for ML agreeing to the early interest rate lock,
         Borrower has agreed to deposit with ML an Initial Rate Lock Deposit
         which shall be held by ML in accordance with the terms of this
         Agreement. The interest rate on the Loan will be the Fixed Rate as

<PAGE>

         set forth on the Confirmation, which will be calculated pursuant to the
         Commitment Letter. If at any time during the Fixed Rate Period, (i) the
         number of basis points by which the Base Swap Rate Index decreases from
         the Base Swap Rate exceeds (ii) the Margin Threshold, the Borrower
         shall be required, no later than 10:00 am (New York City time) on the
         business day following notice thereof (the "Losses Payment Date") to
         deposit additional funds with ML by wire transfer an amount sufficient
         to bring the cumulative Rate Lock Deposits to an amount equal to the
         Initial Rate Lock Deposit plus the current value of the sum of the
         Principal Losses (as hereinafter defined) plus Per Diem Carrying Costs
         (as hereinafter defined). In addition, if at any time during the Fixed
         Rate Period, the accrued Per Diem Carrying Costs (as hereinafter
         defined) are greater than one-half of one (1) percent of the Specified
         Principal Amount then the Borrower shall be required, no later than
         10:00 am (New York City time) on the business day following notice
         thereof (the "Losses Payment Date") to deposit additional funds with ML
         by wire transfer an amount sufficient to bring the cumulative Rate Lock
         Deposits to an amount equal to the Initial Rate Lock Deposit plus the
         current value of the sum of the Principal Losses (as hereinafter
         defined) plus Per Diem Carrying Costs (as hereinafter defined).
         Borrower acknowledges and agrees that ML may require one or more
         additional Rate Lock Deposits at any time during the Fixed Rate Period
         as provided above. If Borrower fails to post required additional Rate
         Lock Deposits with ML by any Losses Payment Date, ML may, in its sole
         discretion, declare a default hereunder, in which event (i) the
         interest rate for the Loan will no longer be fixed at the Fixed Rate,
         (ii) ML may unwind the Hedging Arrangements, and (iii) ML's only
         obligation hereunder to Borrower shall be to return all Rate Lock
         Deposits less any Breakage Costs (as hereinafter defined). Borrower
         shall promptly upon demand remit to ML the amount of any Breakage Costs
         (as hereinafter defined) in excess of the Rate Lock Deposits. Borrower
         hereby pledges all Rate Lock Deposits to ML as security for the
         obligations of Borrower hereunder. Borrower agrees to act and negotiate
         in good faith to consummate the closing of the Loan during the Fixed
         Rate Period, including, without limitation, (a) providing to ML,
         promptly upon request therefor, all due diligence materials reasonably
         requested by ML and (b) executing final loan documents and other
         agreements satisfactory to ML.

8.       Upon the closing of the Loan, Borrower shall pay Lender Per Diem
         Carrying Costs, except that Borrower shall not be required to pay Per
         Diem Carrying Costs for the first ten (10) days of the Fixed Rate
         Period. In the event that the Loan amount is less than the Specified
         Principal Amount or the Loan fails to close for any reason, other than
         by Borrower default, and in any case, the Transaction is terminated by
         ML in its sole discretion, ML shall return the balance, if any, of all
         Rate Lock Deposits less Breakage Costs (as hereinafter defined).
         "Breakage Costs" shall be equal to the sum of all Principal Losses (as
         defined herein), Per Diem Carrying Costs (as defined herein), damages,
         losses, liabilities, legal fees, costs, and other fees and expenses.
         Per Diem Carrying Costs will be calculated as the amount equal to the
         product of (i) the Per Diem Charge (as set forth on the Confirmation)
         multiplied by (ii) the number of days, commencing on and including the
         date hereof through and including the date of closing or the date the
         Transaction is otherwise terminated. Borrower acknowledges and agrees
         that it shall be liable for, and fully responsible to pay Lender, all
         Breakage Costs. If, upon the termination of the Transaction, the Rate
         Lock Deposit is not sufficient to cover the

<PAGE>

         Breakage Costs, Borrower agrees to pay to ML such deficiency
         immediately upon demand. Borrower further agrees that any loan expense
         deposit, application fee and/or commitment fee or any loan commitment
         which may be issued may, at ML's option, be applied to the payment of
         Breakage Costs. Notwithstanding anything to the contrary contained in
         the Commitment Letter, in no event shall the Initial Deposit (as
         defined in the Commitment Letter), application fee or commitment fee be
         returned to Borrower until all Breakage Costs have been paid in full.
         Principal Losses will be calculated as the amount equal to the sum of
         (A) the product of (i) the Breakage Multiplier multiplied by the (ii)
         the number of basis points by which the Base Swap Rate Index decreases
         from the Base Swap Rate, plus (B) the product of (i) Breakage
         Multiplier multiplied by (ii) the number of basis points by which the
         CMBS Spread Index decreases from the Initial CMBS Spread Index. In the
         event the Loan closes, but the principal amount of the Loan at closing
         is less than the Specified Principal Amount, Borrower will be required
         to pay the Pro-Rata amount of the Breakage Costs represented by the
         amount by which the Specified Principal Amount exceeds the principal
         amount of the Loan at closing.

9.       Borrower agrees that if the Loan does not close during the Fixed Rate
         Period, Lender has the option to extend the terms of this Agreement and
         require Borrower to execute an acknowledgement of such extension and
         pay the applicable extension fees (the "Extension Acknowledgement"). In
         addition, provided that Borrower is not in default hereunder or under
         the Commitment Letter, Borrower shall have the option to extend the
         terms of this Agreement for up to 30 days and in such case Borrower
         shall execute an Extension Acknowledgement. This Agreement shall govern
         until any such Extension Acknowledgement is executed. In the event of
         any extension beyond the Fixed Rate Period, in addition to all other
         sums due in connection herewith, Borrower agrees to pay to ML Per Diem
         Carrying Costs through the date of closing.

10.      Borrower agrees that in the event Borrower willfully fails or refuses
         to close the Loan in connection with its acquisition of the Property,
         fails to act and negotiate in good faith to consummate the closing of
         the Loan during the Fixed Rate Period as set forth in Paragraph 7
         hereof, or otherwise defaults under this Agreement or the Commitment
         Letter, the entire Rate Lock Deposit shall become non-refundable, be
         deemed immediately earned and be retained by ML. In such event,
         Borrower shall be and remain liable for all Breakage Costs, and if the
         Rate Lock Deposit is not sufficient to cover the Breakage Costs,
         Borrower agrees to pay to ML such deficiency immediately upon demand.

11.      Borrower agrees to indemnify, defend and hold ML harmless from and
         against all costs, fees and expenses (including attorneys' fees and
         disbursements) incurred by ML pursuant to this Agreement and/or the
         rate lock Transaction.

12.      In the event that a default of Borrower or any affiliate thereof shall
         occur under the Commitment Letter or this Agreement (including, without
         limitation, the commencement of a case under the U.S. Bankruptcy Code
         or other creditor protection action or proceeding by or with respect to
         Borrower), ML may, at its option, terminate the Transaction upon
         written notice to Borrower. In such event, Borrower shall be and remain
         liable for all Breakage Costs as otherwise provided in this Agreement.

<PAGE>

13.      This Agreement represents the entire agreement and understanding of the
         parties with respect to its subject matter and supersedes all oral
         communications and prior writings. No amendment, modification or waiver
         under this Agreement shall be effective unless in writing signed by the
         parties hereto. This Agreement shall be governed by and construed in
         accordance with the laws of the State of New York.

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first above written.

                                         BORROWER

                                         Ashford Hospitality Limited Partnerhip

                                         By:  Ashford OP General Partner LLC

                                              By:  /s/ DAVID A. BROOKS
                                                     Name: David A. Brooks
                                                      Title: Chief Legal Officer

                                         MERRILL LYNCH

                                         Merrill Lynch Mortgage Lending, Inc.

                                         By:    /s/ ROBERT SPINNA
                                                Name: Robert Spinna
                                                Title:

<PAGE>

                                   SCHEDULE A

CONFIRMATION dated April 27, 2005 between Merrill Lynch Mortgage Lending, Inc.
("Merrill Lynch"), and Ashford Hospitality Limited Partnerhip (the "Borrower").

         This Confirmation is entered into between Merrill Lynch and Borrower
pursuant to that certain Early Rate Lock Agreement dated as of the date hereof
(the "Early Rate Lock Agreement") and is the "Confirmation" referred to in the
Early Rate Lock Agreement and is intended to confirm the terms of a Rate Lock.
Capitalized terms used herein shall have the meanings set forth in the Early
Rate Lock Agreement.
The terms of the Transaction are hereby confirmed as follows:

<TABLE>
<S> <C>                                  <C>
1.  Transaction Type:                    Early Interest Rate Lock.

2.  Initial Rate Lock Deposit:           $7,400,000 payable by Borrower to
                                         Merrill Lynch (as such amount may be
                                         increased from time to time per
                                         paragraph 7 of the Early Rate Lock
                                         Agreement, the "Rate Lock Deposit").

3.  Lock Date:                           April 27, 2005.

4.  Fixed Rate:                          5.3175 % per annum.

5.  Specified Principal Amount:          $370,000,000

6.  Fixed Rate Period:                   From the date hereof to and
                                         including June 17, 2005 (52 days).

7.  Breakage Multiplier:                 $283,790

8.  Per Diem Charge:                     $24,576

9.  Base Swap Rate Index:                Mid-Market 10-Year Swap Rate as
                                         referenced on Bloomberg, Page SSRC7
                                         (or its successor).

10. Base Swap Rate:                      4.7375 %

11. Margin Threshold:                    13 basis points

12. CMBS Spread Index:                   Lehman LEH InvG 8.5+ Index, as
                                         referenced on Bloomberg,  Page "LEHM."

13. Initial CMBS Spread Index:           37.3 basis points
</TABLE>

                                      A-1<PAGE>
                                                                   EXHIBIT 10.23

                         AGREEMENT OF PURCHASE AND SALE

                               THE SELLER PARTIES
                                Identified herein

                                    "SELLER"

                    ASHFORD HOSPITALITY LIMITED PARTNERSHIP,
                         a Delaware limited partnership

                                     "BUYER"

<PAGE>

                         AGREEMENT OF PURCHASE AND SALE

                                      INDEX

<TABLE>
<S>                        <C>                                                                                   <C>
ARTICLE I. ASSETS PURCHASED AND SOLD.............................................................................11

     SECTION 1.01          PURCHASE AND SALE.....................................................................11

     SECTION 1.02          PERSONAL PROPERTY.....................................................................11

     SECTION 1.03          OPERATING AGREEMENTS..................................................................11

     SECTION 1.04          INTANGIBLE PROPERTY...................................................................12

     SECTION 1.05          MANAGEMENT AGREEMENTS.................................................................12

     SECTION 1.06          LAND AND HOTELS.......................................................................13

     SECTION 1.07          OPERATING LEASES......................................................................13

ARTICLE II. PURCHASE PRICE.......................................................................................13

     SECTION 2.01          PRICE.................................................................................13

     SECTION 2.02          DEPOSIT...............................................................................13

     SECTION 2.03          BALANCE OF PURCHASE PRICE.............................................................14

     SECTION 2.04          ESCROW AGENT..........................................................................14

     SECTION 2.05          RESERVE ACCOUNTS......................................................................15

     SECTION 2.06          PROPERTY IMPROVEMENT PLAN EXPENDITURES................................................15

ARTICLE III. OPERATION OF THE PROPERTY...........................................................................15

     SECTION 3.01          OPERATION IN THE ORDINARY COURSE OF BUSINESS..........................................15

ARTICLE IV. PRORATIONS AND ADJUSTMENTS...........................................................................15

     SECTION 4.01          CLOSING STATEMENT/OPERATIONS SETTLEMENT...............................................15

     SECTION 4.02          TAXES AND RENTS.......................................................................16

     SECTION 4.03          UTILITIES.............................................................................16

     SECTION 4.04          ASSIGNED OPERATING AGREEMENTS.........................................................17

     SECTION 4.05          ROOM REVENUES; RESERVATIONS; TRAY LEDGER; ACCOUNTS RECEIVABLE AND HOUSE FUNDS.........17
</TABLE>

                                       1
<PAGE>

<TABLE>
<S>                        <C>                                                                                   <C>
     SECTION 4.06          ACCOUNTS PAYABLE AND EXPENSES.........................................................18

     SECTION 4.07          2005 CAPITAL EXPENDITURE AND PROPERTY IMPROVEMENT PLAN EXPENSES.......................19

ARTICLE V. EMPLOYEES.............................................................................................19

     SECTION 5.01          SALARIES, ETC.........................................................................19

ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF SELLER.............................................................19

     SECTION 6.01          EXISTENCE AND GOOD STANDING...........................................................19

     SECTION 6.02          AUTHORITY.............................................................................19

     SECTION 6.03          NO CONFLICT...........................................................................19

     SECTION 6.04          SELLER IS NOT A "FOREIGN PERSON"......................................................19

     SECTION 6.05          NO COMMITMENTS........................................................................19

     SECTION 6.06          INSURANCE.............................................................................20

     SECTION 6.07          NO SPECIAL TAXES......................................................................20

     SECTION 6.08          LITIGATION............................................................................20

     SECTION 6.09          CONDEMNATION..........................................................................20

     SECTION 6.10          TITLE TO PERSONAL PROPERTY............................................................20

     SECTION 6.11          COMPLIANCE WITH APPLICABLE LAW........................................................20

     SECTION 6.12          TAXES.................................................................................20

     SECTION 6.13          FINANCIAL STATEMENTS..................................................................20

     SECTION 6.14          OPERATING AGREEMENTS..................................................................20

     SECTION 6.15          MANAGEMENT AGREEMENTS.................................................................20

ARTICLE VII. REPRESENTATIONS AND WARRANTIES OF BUYER.............................................................21

     SECTION 7.01          EXISTENCE AND GOOD STANDING...........................................................21

     SECTION 7.02          AUTHORITY.............................................................................21

     SECTION 7.03          NO CONFLICT...........................................................................21

     SECTION 7.04          AS IS.................................................................................21
</TABLE>

                                       2
<PAGE>

<TABLE>
<S>                        <C>                                                                                   <C>

ARTICLE VIII. REMEDIES...........................................................................................23

     SECTION 8.01          SELLER'S REMEDIES.....................................................................23

     SECTION 8.02          BUYER'S REMEDIES......................................................................23

     SECTION 8.03          POST-CLOSING MATTERS..................................................................23

ARTICLE IX. CONDITIONS...........................................................................................24

     SECTION 9.01          SELLERS' OBLIGATION...................................................................24

     SECTION 9.02          BUYER'S OBLIGATION....................................................................24

ARTICLE X. CONVEYANCE OF ASSETS..................................................................................24

     SECTION 10.01         INSTRUMENTS OF CONVEYANCE.............................................................24

     SECTION 10.02         PERSONAL PROPERTY.....................................................................25

ARTICLE XI. TITLE TO REAL PROPERTY...............................................................................25

     SECTION 11.01         TITLE INSURANCE COMMITMENTS...........................................................25

     SECTION 11.02         TITLE DEFECTS.........................................................................26

     SECTION 11.03         SURVEY................................................................................26

     SECTION 11.04         ACCESS TO PROPERTY; DUE DILIGENCE MATERIALS...........................................26

ARTICLE XII. THE CLOSING.........................................................................................26

     SECTION 12.01         TIME AND  PLACE.......................................................................26

     SECTION 12.02         PAYMENT OF PURCHASE PRICE.............................................................26

     SECTION 12.03         CLOSING COSTS.........................................................................27

     SECTION 12.04         REVENUE AND EXPENSE PRORATIONS........................................................28

     SECTION 12.05         CLOSING DOCUMENTS.....................................................................28

ARTICLE XIII. INSURANCE, CONDEMNATION AND CASUALTY...............................................................28

     SECTION 13.01         INSURANCE.............................................................................28

     SECTION 13.02         CONDEMNATION AND CASUALTY.............................................................29

ARTICLE XIV. MISCELLANEOUS COVENANTS AND PROVISIONS..............................................................29
</TABLE>

                                       3
<PAGE>

<TABLE>
<S>                        <C>                                                                                   <C>
     SECTION 14.01         ASSIGNMENT; SUCCESSORS AND ASSIGNS....................................................29

     SECTION 14.02         COUNTERPARTS..........................................................................30

     SECTION 14.03         WAIVER................................................................................30

     SECTION 14.04         AMENDMENTS............................................................................30

     SECTION 14.05         FURTHER AGREEMENTS....................................................................30

     SECTION 14.06         ATTORNEYS' FEES.......................................................................30

     SECTION 14.07         ENTIRE AGREEMENT......................................................................30

     SECTION 14.08         BROKERS AND FINDERS...................................................................30

     SECTION 14.09         NOTICES...............................................................................30

     SECTION 14.10         SECTION HEADINGS; INTERPRETATION......................................................31

     SECTION 14.11         GOVERNING LAW.........................................................................32

     SECTION 14.12         DISCLOSURE OF CONFIDENTIAL INFORMATION/ PUBLIC ANNOUNCEMENTS/ COMMUNICATION
                           WITH GOVERNMENTAL AUTHORITIES/ COMMUNICATION WITH EMPLOYEES...........................32

     SECTION 14.13         TIME OF ESSENCE.......................................................................34
</TABLE>

EXHIBIT "A" - Legal Description of Land
EXHIBIT "B" - Assignment and Assumption of Intangible Property
EXHIBIT "C" - Assignment and Assumption of Management Agreements
EXHIBIT "D" - Assignment and Assumption of Operating Agreements
EXHIBIT "E" - Intentionally Left Blank
EXHIBIT "F" - Bill of Sale (Personal Property)
EXHIBIT "G" - Schedule of Assumed Management Agreements
EXHIBIT "H" - Schedule of Operating Agreements
EXHIBIT "I" - Schedule of Operating Leases
EXHIBIT "J" - Schedule of Operating Tenants
EXHIBIT "K" - Purchase Price Allocation Schedule
EXHIBIT "L" - Schedule of Sellers
EXHIBIT "M" - Litigation Schedule
EXHIBIT "N" - Form of New Management Agreements
EXHIBIT "O" - Beverage Facilities Agreement
EXHIBIT "P" - Schedule of Title Objections
EXHIBIT "Q" - Schedule of Properties With Non-Assumed Management Agreements

                                       4
<PAGE>

                         AGREEMENT OF PURCHASE AND SALE

         AGREEMENT OF PURCHASE AND SALE made and entered into as of April 26,
2005, by and between Sellers and Buyer.

                                   DEFINITIONS

         For the purposes of this Agreement, the parties agree that the
following terms shall have the following meanings:

         1.       Accounts Receivable: All accounts receivable relating to the
                  Hotels, other than the Tray Ledgers, accruing prior to the
                  Transfer Time (including, without limitation, receivables and
                  revenues for food, beverage and telephone use).

         2.       Agreement: This Agreement of Purchase and Sale by and between
                  Buyer and Sellers providing for the sale and purchase of the
                  Property.

         3.       Assignment and Assumption of Ground Lease: An assignment and
                  assumption of the Ground Lease, pursuant to which with respect
                  the Ground Lease (i) the relevant Seller shall assign and
                  transfer to Buyer all of such Seller's right, title and
                  interest in and to, and Buyer shall assume all of such
                  Seller's obligations and liabilities under, the Ground Lease
                  first accruing from and after Closing, and (ii) such
                  assignment shall be free and clear of all encumbrances save
                  and except for the Permitted Exceptions relating to the
                  Property which is the subject of the Ground Lease. The
                  Assignment and Assumption of Ground Lease shall be a special
                  warranty assignment in the form as is customary for commercial
                  transaction in the jurisdiction in which the relevant Hotel is
                  located.

         4.       Assignment and Assumption of Intangible Property: An
                  assignment and assumption of the Intangible Property in the
                  form attached hereto as EXHIBIT "B" and by this reference
                  incorporated herein, pursuant to which each Seller and/or
                  Operating Tenant shall assign and transfer to Buyer all of
                  such Seller's and/or Operating Tenant's right, title and
                  interest in and to, and Buyer or its operating lessee shall
                  assume all of such Seller's and/or Operating Tenant's
                  obligations and liabilities under, the Intangible Property
                  first accruing from and after Closing, to the extent that such
                  assignments are legally and contractually permitted.

         5.       Assignment and Assumption of Management Agreements: An
                  assignment and assumption of the Assumed Management Agreements
                  and the Owner Agreements relating thereto in the form attached
                  hereto as EXHIBIT "C" and by this reference incorporated
                  herein, pursuant to which each Seller and Operating Tenant
                  shall assign and transfer to Buyer or its operating lessee all
                  of such Seller's and Operating Tenant's right, title and
                  interest in and to, and Buyer or its operating lessee shall
                  assume all of such Operating Tenant's obligations and
                  liabilities under, the Assumed Management Agreements and Owner
                  Agreements relating thereto first accruing from and after
                  Closing.

                                       5
<PAGE>

         6.       Assignment and Assumption of Operating Agreements: An
                  assignment and assumption of the Operating Agreements in the
                  form attached hereto as EXHIBIT "D" and by this reference
                  incorporated herein, pursuant to which each Seller and/or
                  Operating Tenant shall assign and transfer to Buyer or its
                  operating lessee all of such Seller's and/or Operating
                  Tenant's right, title and interest in and to, and Buyer or its
                  operating lessee shall assume all of such Seller's and/or
                  Operating Tenant's obligations and liabilities under, the
                  Operating Agreements first accruing from and after Closing.

         7.       Assumed Management Agreements: Those certain Management
                  Agreements between an Operating Tenant and a Manager which are
                  more particularly described on EXHIBIT "G" attached hereto and
                  by this reference incorporated herein, pursuant to which the
                  Manager manages and operates the applicable Hotel subject to
                  the applicable Assumed Management Agreement. Each of the
                  Assumed Management Agreements is at times herein referred to
                  as an Assumed Management Agreement.

         8.       Bill of Sale (Personal Property): A bill of sale in the form
                  attached hereto as EXHIBIT "F" and by this reference
                  incorporated herein, pursuant to which each Seller and/or
                  Operating Tenant shall transfer and convey to Buyer and/or its
                  operating lessee the Personal Property owned by such Seller
                  and/or Operating Tenant in an "AS IS, WHERE IS" condition and
                  without recourse or express or implied warranty other than
                  such Seller's and/or Operating Tenant's limited warranty of
                  title and freedom from encumbrance (other than (i) any liens
                  or mortgages assumed or entered into by Buyer; or (ii) any
                  personal property sales tax or other tax) first accruing from
                  and after the Transfer Time.

         9.       Broker: Banc of America Securities LLC.

         10.      Buyer: Ashford Hospitality Limited Partnership, a Delaware
                  limited partnership or its Permitted Assignee(s).

         11.      Closing: The consummation of the transactions contemplated by
                  this Agreement which shall occur on the Closing Date.

         12.      Closing Date: June 17, 2005 or such earlier date agreed to by
                  Sellers and Buyer.

         13.      Closing Statement: As defined in Section 4.01.

         14.      Data Room Web Site: A secure web site established by Sellers
                  in which various due diligence materials relating to the
                  Property have been or will be made available to Buyer.

         15.      Deeds: The deeds pursuant to which each Seller shall convey to
                  Buyer all of such Seller's right, title and interest in and to
                  the Land and Hotel which such Seller owns free and clear of
                  all encumbrances save and except for the Permitted Exceptions
                  relating to such Land and Hotels. Such Deeds shall be by
                  special

                                       6
<PAGE>

                  warranty deeds in the form as is customary for commercial
                  transactions in the jurisdiction in which each Hotel is
                  located.

         16.      Deposit: The sum of Fifteen Million and No/100 Dollars
                  ($15,000,000.00) and any interest accrued thereon.

         17.      Effective Date: The date on which this Agreement is executed
                  and accepted by the last of Buyer and all Sellers, such date
                  to be entered into the first paragraph of this Agreement.

         18.      Employees: Those individuals employed by Managers at the
                  Hotels.

         19.      Escrow Agent: The Talon Group, Orlando Commercial Services
                  Division, a division of First American Title Insurance
                  Company, whose address is 111 North Orange Avenue, Suite 1285,
                  Orlando, Florida 32801, Attention: Michael Moore.

         20.      Ground Lease: That certain lease agreement by and between
                  Commonwealth Trust Company, Trustee for Chopin Trust, as
                  landlord, and RFP Group, Inc., dated November 30, 1987, as
                  amended and assigned, pursuant to which the Seller of the
                  Wilmington, Delaware Residence Inn holds a leasehold interest
                  in and to the Hotel and that portion of the Land located in
                  Wilmington, Delaware.

         21.      Hotels: The hotel buildings and all accessory buildings and
                  structures, if any, and all fixtures placed on or attached
                  thereto, owned by Sellers and located on the parcels
                  comprising the Land. Each of the Hotels is at times herein
                  referred to individually as a Hotel.

         22.      House Funds: Cash on hand at or for the Hotels, including,
                  without limitation, petty cash funds and cashiers' banks but
                  exclusive of Reserve Funds.

         23.      Intangible Property: All of Sellers' and Operating Tenants'
                  respective right, title and interest in and to all intangible
                  property in the possession of Sellers and Operating Tenants
                  and used in connection with the Land, Hotels or Personal
                  Property, including without limitation, all licenses and
                  permits (but specifically excluding any and all licenses and
                  permits to sell alcohol), approvals, authorizations and other
                  entitlements, all guaranties and warranties related to the
                  Hotels and the Personal Property or the construction,
                  fabrication or maintenance thereof, all plans and
                  specifications relating to the Improvements and any
                  landscaping, all tradenames, logos, telephone numbers,
                  websites and domains (including access to FTP file content)
                  and signage rights used by Sellers and Operating Tenants in
                  connection with the operation of the Hotels, and all books,
                  records, reports, test results, environmental assessments,
                  surveys and other documents and materials related to Sellers'
                  and Operating Tenants' operation of the Hotels and Sellers'
                  and Operating Tenants' maintenance and repair of the Property.

         24.      Inventory: All inventory located at the Hotels, including
                  without limitation, all mattresses, pillows, bed linens,
                  towels and Operating Supplies.

                                       7
<PAGE>

         25.      Knowledge: The actual knowledge of (A) Marcel Verbaas and (B)
                  the current general managers of each of the Hotels (provided
                  that the actual knowledge of such current general manager
                  shall be limited to such general manager's actual knowledge of
                  matters relating to the Hotel for which such individual serves
                  as the general manager), without any duty of inquiry or
                  investigation, and expressly excluding the knowledge of any
                  other shareholder, partner, member, trustee, beneficiary,
                  director, officer, manager, employee, agent or representative
                  of the Sellers or any of their Affiliates. For the purposes of
                  this definition, the term "actual knowledge" means, with
                  respect to any person, the conscious awareness of such person
                  at the time in question, and expressly excludes any
                  constructive or implied knowledge of such person.

         26.      Land: Those certain parcels of land more particularly
                  described in EXHIBIT "A" annexed hereto and incorporated
                  herein by reference, and all rights and appurtenances thereto.

         27.      Management Agreements: The Assumed Management Agreements and
                  the Non-Assumed Management Agreements.

         28.      Managers: Each "Manager" of a Hotel under and pursuant to the
                  Management Agreements.

         29.      Material Operating Agreements: Those Operating Agreements that
                  (A)(i) require more than thirty (30) days notice to terminate,
                  or (ii) are terminable upon notice of thirty (30) days or less
                  and require payment of a termination fee, and (B) either (i)
                  require aggregate annual payments (including any termination
                  fee) in excess of Twenty Thousand and No/100 Dollars
                  ($20,000.00) per Operating Agreement for any year during the
                  term of such Operating Agreement after the Closing, or (ii)
                  have an unexpired term following the Closing (including any
                  mandatory renewal terms that are exercisable by the
                  counterparty thereto) of more than one (1) year.

         30.      Non-Assumed Management Agreements: Those certain Management
                  Agreements between an Operating Tenant and a Manager which
                  relate to the management and operation of the Hotels more
                  particularly described on EXHIBIT "Q" attached hereto and by
                  this reference incorporated herein pursuant to which the
                  applicable Manager manages and operates the applicable Hotel.

         31.      Operating Agreements: All contracts, agreements, leases
                  (including, but not limited to, commercial leases and
                  equipment leases), maintenance agreements and service
                  contracts, to which Sellers are a party, which are in effect
                  on the Closing Date and which relate to the ownership and/or
                  operation of the Hotels, including, without limitation, any
                  such agreements as are listed in EXHIBIT "H" annexed to this
                  Agreement and incorporated herein by this reference, but
                  specifically excluding the Ground Leases, Operating Leases and
                  the Management Agreements.

                                       8
<PAGE>

         32.      Operating Leases: Those certain lease agreements by and
                  between each Seller, as "Landlord", and each Operating Tenant,
                  as amended, and more particularly described on EXHIBIT "I"
                  attached hereto and by this reference incorporated herein,
                  pursuant to which each Operating Tenant leases its respective
                  Hotel.

         33.      Operations Settlement: A final accounting prepared by Sellers'
                  and Buyer's accountants in the period between eight o'clock
                  p.m. (local time) on the day prior to the Closing Date and
                  eight o'clock a.m. (local time) on the Closing Date, the
                  results of which shall be incorporated into the closing
                  statement.

         34.      Operating Supplies: Any and all operating supplies, whether
                  consumables or non-consumables, used or consumed in the
                  ordinary course of business at the Hotels and owned by Sellers
                  or Operating Tenants, including without limitation, paper
                  products, soap, cleaning supplies, food, and alcoholic and
                  non-alcoholic beverages.

         35.      Operating Tenants: Those entities identified as the Operating
                  Tenant of each Hotel on EXHIBIT "J" attached hereto which are
                  affiliates of Sellers. Each such entity is at times herein
                  referred to as an "Operating Tenant."

         36.      Other Revenues: All revenues earned by Sellers from the
                  operation of the Hotels other than Room Revenues, including,
                  without limitation, revenues from the sale of food, the sale
                  of alcoholic and nonalcoholic beverages, rental of meeting and
                  banquet rooms, telephone sales, pay television sales, valet
                  and parking services, and other similar revenues, together
                  with any sales tax or other taxes thereon.

         37.      Owner Agreements: Those certain Owner Agreements between a
                  Seller, Operating Tenant and a Manager which relate to Hotels
                  with Assumed Management Agreements. Each of the Owner
                  Agreements is at times herein referred to as an Owner
                  Agreement.

         38.      Permitted Assignee: An entity wholly owned by Buyer which
                  shall be formed by Buyer following the Effective Date and
                  prior to the Closing Date for purposes of acquiring all or any
                  portion of or interest in the Property.

         39.      Permitted Exceptions: Any and all (i) restrictions, easements,
                  reservations, covenants and other matters of record
                  (including, without limitation, all instruments, matters and
                  items set forth as exceptions to title in the Title
                  Commitments) and zoning and land use ordinances and laws of
                  any governmental authority (except for monetary liens,
                  mortgages and encumbrances which shall be paid by Sellers
                  prior to Closing and other matters to be cured by Seller
                  pursuant to this Agreement); (ii) general taxes and
                  assessments for the year of the Closing and thereafter, and
                  special taxes and assessments first becoming due and payable
                  after the Closing Date; (iii) encroachments, overlaps,
                  boundary line disputes, unrecorded easements or other matters
                  disclosed or indicated by or shown on the Surveys or their
                  updates or which would be disclosed or indicated by or shown
                  on a current, accurate survey or a personal inspection of the
                  Property; (iv) leases and

                                       9
<PAGE>

                  tenancies in writing for any areas of the Land or Hotels which
                  are to be assumed by Buyer; (v) disputed liens or encumbrances
                  for which Sellers shall have provided bond or security
                  satisfactory to the Title Company; and (vi) liens, mortgages
                  and encumbrances created by Buyer.

         40.      Personal Property: All furniture, furnishings, fixtures,
                  equipment, vehicles, machinery, appliances, dishes, utensils,
                  cookware, materials and Inventory, located at the Hotels,
                  owned by any Seller or any Operating Tenant, and used solely
                  in connection with the operation of the Hotels, but (subject
                  to the provisions of Section 1.02) specifically excluding any
                  Personal Property that is leased by any Seller from a
                  third-party.

         41.      PIPs: The property improvement or other similar plans for the
                  Hotels contemplated by the Management Agreements.

         42.      Property: A collective term which shall mean all of the Land,
                  Hotels, Intangible Property and Personal Property.

         43.      Purchase Price: The amount specified in Section 2.01 as the
                  purchase price for the Property.

         44.      Purchase Price Allocation Schedule: The schedule attached
                  hereto as EXHIBIT "K" pursuant to which the Purchase Price is
                  allocated among each Property for the purposes of calculating
                  title insurance premiums and other closing costs.

         45.      Reserve Funds: All funds held in reserve accounts for
                  furniture, fixtures and equipment, for capital expenditures,
                  or for other matters relating to the operation of the Hotels,
                  whether such accounts are held in the name of the Sellers,
                  Operating Tenants or Managers on behalf of Sellers or
                  Operating Tenants.

         46.      Room Revenues: All revenues from the rental of guest rooms of
                  the Hotels (but excluding any items included in the definition
                  of Other Revenues), together with any and all sales or other
                  taxes thereon.

         47.      Sellers: Shall mean those entities more particularly described
                  on EXHIBIT "L" attached hereto and by this reference
                  incorporated herein. Each such entity is at times herein
                  referred to as a "Seller."

         48.      Surveys: The surveys of each parcel comprising the Land and
                  the Hotel located on such parcel obtained by Buyer prior to
                  execution of this Agreement. Each of the Surveys is at times
                  herein referred to as a "Survey".

         49.      Title Company: First American Title Insurance Company through
                  the Talon Group, Orlando Commercial Services Division, a
                  division of First American Title Insurance Company, whose
                  address is 111 North Orange Avenue, Suite 1285, Orlando,
                  Florida 32801, Attention: Michael Moore.

                                       10
<PAGE>

         50.      Title Insurance Commitments: The commitments of title
                  insurance issued by Title Company and provided by Sellers to
                  Buyer with respect to each parcel comprising the Land prior to
                  the execution of this Agreement. Each of the Title Commitments
                  is at times herein referred to as a "Title Commitment".

         51.      Title Policies: The owner's policies of title insurance to be
                  issued to Buyer pursuant to the terms of the Title Insurance
                  Commitments and this Agreement. Each of the Title Policies is
                  at times herein referred to as a "Title Policy".

         52.      Transfer Time: 12:01 a.m. (local time) on the Closing Date.

         53.      Tray Ledgers: Any accounts receivable of registered guests who
                  have not checked out and who are occupying rooms on the
                  evening prior to, and the morning of, the Closing Date.

                                    AGREEMENT

                                   ARTICLE I.
                            ASSETS PURCHASED AND SOLD

         Section 1.01. Purchase and Sale. Subject to the terms and conditions of
this Agreement and in consideration of the performance of the covenants
contained herein, Buyer agrees to purchase from Sellers and Sellers agree to
sell to Buyer, all of Sellers' right, title and interest in and to the Property.

         Section 1.02. Personal Property. Subject to the terms and conditions of
this Agreement, at Closing Sellers agree to assign, transfer and convey to Buyer
all of Sellers' right, title and interest in and to the Personal Property
pursuant to the Bill of Sale (Personal Property). In the event that any Personal
Property is owned by any Operating Tenant, Sellers agree to cause such Operating
Tenant to assign, transfer and convey to Buyer any such Personal Property at
Closing, pursuant to a bill of sale in the same form as the Bill of Sale
(Personal Property).

         Section 1.03. Operating Agreements. At Closing, each Seller shall
assign and transfer to Buyer or its operating lessee all of such Seller's right,
title and interest in and to, and Buyer or its operating lessee shall assume all
of such Seller's obligations and liabilities first arising from and after
Closing under, the Operating Agreements pursuant to the Assignment and
Assumption of Operating Agreements. Sellers have, to Sellers' knowledge,
provided Buyers with complete copies of all Material Operating Agreements which
were in effect as of the Effective Date. Seller shall promptly provide Buyer
with complete copies of any Operating Agreements entered into subsequent to the
Effective Date and prior to the Closing Date. Notwithstanding the foregoing,
Sellers reserve the right to provide Buyer with access to all such Operating
Agreements via the Data Room Web Site in lieu of delivering hard copies of such
Operating Agreements to Buyer, provided, however, that Sellers shall give prior
notice to Buyer of any new Operating Agreements entered into subsequent to the
Effective Date that are provided in the Data Room Web Site. Buyer shall execute
any financial statements, applications, assumption agreements and/or other
documents which may be required to effect the assignment and assumption of such
Operating Agreements. Buyer shall pay all out of pocket fees and expenses of
third parties under the Operating Agreements in regard to such assignments or
transfers,

                                       11
<PAGE>

including any transfer charges reasonably necessary to obtain the consent of any
such third party. Buyer understands and agrees that it is solely Buyer's
responsibility to obtain any and all Operating Agreements necessary to conduct
business at the Hotels from and after the Closing Date. Buyer's failure to
obtain any Operating Agreements which are necessary or convenient to the
operation of the Hotels shall not affect or delay the performance of Buyer's
obligations under this Agreement. In the event that any Operating Tenant is a
party to and holder of rights under any Operating Agreement, Sellers agree to
cause such Operating Tenant to assign and transfer such rights to Buyer or its
operating lessee at Closing, pursuant to an assignment and assumption agreement
in the same form as the Assignment and Assumption of Operating Agreements. Buyer
shall indemnify, defend and hold Sellers and Operating Tenants harmless from any
claim, liability, cost or expense (including without limitation reasonable
attorneys' fees) arising out of any Operating Agreement from and after the
Transfer Time. Sellers and Operating Tenants shall indemnify, defend and hold
Buyer harmless from any claim, liability, cost or expense (including without
limitation reasonable attorneys' fees and costs) arising out of any Operating
Agreement for the period prior to the Transfer Time.

         Section 1.04. Intangible Property. At Closing, each Seller shall assign
and transfer to Buyer or its operating lessee all of such Seller's right, title
and interest in and to, and Buyer or its operating lessee shall assume all of
Seller's obligations and liabilities first arising from and after Closing under,
the Intangible Property, pursuant to the Assignment and Assumption of Intangible
Property. Sellers have, to Sellers' knowledge, provided Buyers with copies of
all documents comprising the Intangible Property which were in Sellers'
possession or control and in effect as of the Effective Date. Seller shall
promptly provide Buyer with copies of any documents comprising Intangible
Property issued to Sellers or entered into by Sellers subsequent to the
Effective Date and prior to the Closing Date. Notwithstanding the foregoing,
Sellers reserve the right to provide Buyer with access to all such documents
comprising Intangible Property via the Data Room Web Site in lieu of delivering
hard copies of such documents comprising Intangible Property to Buyer; provided,
Sellers shall give prior notice to Buyer of any new Intangible Property received
subsequent to the Effective Date that are provided in the Data Room Web Site.
Buyer understands and agrees that it is solely Buyer's responsibility to obtain
any and all Intangible Property necessary to conduct business at the Hotels from
and after the Closing Date. Buyer's failure to obtain any Intangible Property
which are necessary or convenient to the operation of the Hotels shall not
affect or delay the performance of Buyer's obligations under this Agreement. In
the event that any Operating Tenant is the holder of rights under any Intangible
Property, Sellers agree to cause such Operating Tenant to assign and transfer
such rights to Buyer or its operating lessee at Closing, pursuant to an
assignment and assumption agreement in the same form as the Assignment and
Assumption of Intangible Property.

         Section 1.05. Management Agreements. (a)Prior to the execution of this
Agreement, Sellers have furnished Buyer with copies of all Assumed Management
Agreements in Sellers' possession or control or made such Assumed Management
Agreements available to Buyer via the Data Room Web Site in lieu of delivering
hard copies of the Assumed Management Agreements to Buyer.

                  (b) At Closing, Sellers shall cause the Operating Tenants
under the Assumed Management Agreements to assign and transfer to Buyer or its
operating lessee all of such Operating Tenants' right, title and interest in and
to, and Buyer or its operating lessee shall

                                       12
<PAGE>

assume all of Operating Tenants' obligations and liabilities under first arising
from and after Closing, under the Assumed Management Agreements, pursuant to the
Assignment and Assumption of Management Agreements.

                  (c) Seller, at its sole cost and expense, shall cause the
Non-Assumed Management Agreements to be terminated as of the Closing Date. Buyer
shall enter into new management agreements with Managers with respect to those
Hotels which are managed pursuant to Non-Assumed Management Agreements. Such
management agreements will be in the form attached hereto as EXHIBIT "N".

                  (d) Seller shall use reasonable efforts to secure from
Managers written confirmation that as a result of the contemplated sale of the
Property, no additional change in ownership PIPs will be required other than the
scope of work outlined in the current PIPs and capital expenditure plans
previously provided to Buyer by Sellers. Subject to Section 2.06 of this
Agreement, the parties hereto agree that in no event, however, shall the
Purchase Price be subject to adjustment based on the level or extent of PIPs or
capital expenditures.

         Section 1.06. Land and Hotels. At Closing, Sellers shall convey title
to the Land and Hotels owned by Sellers to Buyer pursuant to the Deeds and shall
convey its leasehold interest in the Land and Hotel which the applicable Seller
occupies pursuant to the Ground Lease by the Assignment and Assumption of Ground
Lease.

         Section 1.07. Operating Leases. At or prior to Closing, Sellers, at
Sellers' sole cost and expense, shall terminate the Operating Leases.

                                  ARTICLE II.
                                 PURCHASE PRICE

         Section 2.01. Price. The Purchase Price for the Property shall be Four
Hundred Sixty-Five Million and No/100 Dollars ($465,000,000.00), all cash,
subject to closing adjustments as provided in this Agreement.

         Section 2.02. Deposit. Provided that the Deposit has not already been
lodged with Escrow Agent prior to execution of this Agreement, upon execution of
this Agreement by Buyer, the Deposit, in the form of a cashier's or certified
check or wire transfer, shall be immediately deposited with the Escrow Agent by
Buyer. Such amount to be deposited by the Escrow Agent into an interest-bearing,
fully-insured account. In the event that the Deposit has not been lodged with
Escrow Agent within one (1) business day following the Effective Date, this
agreement shall immediately terminate. The Deposit shall be applied to payment
of the Purchase Price at Closing or shall otherwise be paid as herein provided.
Buyer acknowledges and agrees the Deposit is "At Risk" and is not refundable to
Buyer except in the event of a default by Sellers under this Agreement or as
otherwise expressly provided in this Agreement. All interest earned in said
account of the Escrow Agent shall be reported by the Escrow Agent to the
Internal Revenue Service as income to Buyer (and Buyer agrees to execute a W-9
form and any other federal tax documents necessary in connection therewith).

                                       13
<PAGE>

         Section 2.03. Balance of Purchase Price. (a) The balance of the
Purchase Price for the Property (subject to the adjustments and/or prorations
provided in this Agreement) shall be paid by Buyer by wire transfer of good
funds to Escrow Agent at Closing as set forth in Section 12.02.

         Section 2.04. Escrow Agent.

                  (a) The Escrow Agent in its capacity as holder of the Deposit
in escrow joins in the execution of this Agreement for the limited purpose of
acknowledging and agreeing to the provisions of this Section 2.04.

                  (b) The duties of the Escrow Agent shall be as follows:

                        (1) The Escrow Agent shall hold and disburse the Deposit
in accordance with the terms and provisions of this Agreement.

                        (2) If this Agreement shall be terminated by the mutual
written agreement of Sellers and Buyer, or if the Escrow Agent shall be unable
to determine at any time to whom the Deposit should be paid, or if a dispute
shall develop between Sellers and Buyer concerning to whom the Deposit should be
paid and delivered, then and in any such event, the Escrow Agent shall pay and
deliver such in accordance with the joint written instructions of Sellers and
Buyer. In the event that such written instructions shall not be received by the
Escrow Agent within ten (10) days after the Escrow Agent has served a written
request for instructions upon Sellers and Buyer, then the Escrow Agent shall
have the right to pay and deliver the Deposit into an appropriate court of
proper jurisdiction in the state of Florida, and interplead Sellers and Buyer in
respect thereof, and thereupon the Escrow Agent shall be discharged of any
obligations in connection with this Agreement.

                  (c) If costs or expenses are incurred by the Escrow Agent in
its capacity as holder of the Deposit in escrow because of litigation or a
dispute between Sellers and Buyer arising out of the holding of the Deposit in
escrow, Sellers and Buyer shall each pay the Escrow Agent one-half of such
reasonable costs and expenses not to exceed a total of $10,000.00. Except for
such costs or expenses, no fee or charge shall be due and payable to the Escrow
Agent for its services as escrow holder only.

                  (d) By joining herein, the Escrow Agent undertakes only to
perform the duties and obligations imposed upon the Escrow Agent under the terms
of this Agreement and expressly does not undertake to perform any of the other
covenants, terms and provisions incumbent upon Sellers and Buyer hereunder.

                  (e) Buyer and Sellers hereby agree and acknowledge that the
Escrow Agent assumes no liability in connection herewith except for its
negligence or willful misconduct; that the Escrow Agent shall never be
responsible for the validity, correctness or genuineness of any document or
notice referred to under this Agreement; and that in the event of any dispute
under this Agreement, the Escrow Agent may seek advice from its own legal
counsel and shall be fully protected in any action taken by it in good faith in
accordance with the good faith opinion of its legal counsel.

                                       14
<PAGE>

         Section 2.05. Reserve Accounts. (a) Except as set forth in Section 4.07
hereof, Reserve Funds shall be retained by Sellers at Closing. In the event that
any Reserve Funds are held by a Manager, Buyer shall at Closing pay to such
Manager an amount equal to the amount of such Reserve Funds held by such Manager
and the parties hereto shall cause such Manager to return such Reserve Funds to
Seller at Closing.

         Section 2.06. Property Improvement Plan Expenditures. (a) Sellers have
heretofore in the calendar year 2005, and will continue to incur expenditures
with respect to the portion of the Property comprising the Residence Inn Ft.
Worth River Plaza Hotel, Residence Inn Salt Lake City Cottonwood Hotel,
Residence Inn Tyler Hotel and/or Residence Inn Palm Desert Hotel, pursuant to
PIPs and/or existing capital expenditure plans prior to Closing. Subject to the
final sentence of this Section 2.06, Buyer shall reimburse Sellers for such
expenditures at Closing. Prior to the Effective Date, the Sellers have delivered
the current budget for the expenditures contemplated by this Section 2.06, all
renovation or capital improvement contracts entered into by Sellers with respect
to such expenditures, and written evidence verifying all expenditures made by
Sellers prior to the Effective Date which are subject to reimbursement. Sellers
agree to not change the scope of the work contemplated by such budgets and to
obtain Buyer's written consent before undertaking any expenditures in excess of
those contemplated by the budgets for any of the aforementioned Hotels or that
portion of the Land associated therewith.

                                  ARTICLE III.
                            OPERATION OF THE PROPERTY

         Section 3.01. Operation in the Ordinary Course of Business. Sellers
shall not (and Seller shall cause Operating Tenants and Manager to not), without
the prior written consent of Buyer, except in the ordinary course of business,
(i) enter into any leases or tenancies with respect to the Property, (ii) enter
into any service or maintenance agreements which are not terminable upon thirty
(30) days notice, (iii) engage or retain new or additional employees, entities
or independent contractors whose compensation may be assumable by Buyer (or
reimbursable by Buyer to Manager), (iv) modify or release any warranties or
guaranties with respect to the Property, or (v) grant any encumbrances on the
Property or contract for any construction or service for the Property which may
impose any mechanics or materialmen's lien on the Property beyond Closing.
Sellers shall and shall cause Operating Tenants to, subject to the terms of the
Management Agreements, use reasonable efforts to cause the Managers to maintain
inventory levels consistent with Managers' prior practices and continue to
operate the Property in the ordinary course of business.

                                  ARTICLE IV.
                           PRORATIONS AND ADJUSTMENTS

             Section 4.01. Closing Statement/Operations Settlement.

                  (a) Closing Statement. Taxes, rents, revenues and expenses
pertaining to assigned Operating Agreements, prepaid utility charges, and
material deviations, if any, in the amount of the Personal Property at the
Hotels occurring in the period between the first and second inventories provided
for in Section 10.02 shall be allocated and prorated between Buyer and Sellers
pursuant to a written Closing Statement to be prepared by Sellers and executed
by

                                       15
<PAGE>

Buyer and Sellers at the Closing. Any additional amounts owed by Buyer or
credits due to Buyer shall be reflected in such statement and the Purchase Price
shall be adjusted accordingly.

                  (b) Operations Settlement. Room Revenues for the night prior
to the Closing Date (e.g., if the Closing Date is June 15, 2005, Room Revenues
for the period of time commencing on the evening of June 14, 2005 and ending on
the morning of June 15, 2005), prepaid deposits for confirmed reservations,
hotel facilities and services for periods after the Transfer Time; and the
purchase price for the Tray Ledgers, House Funds and Accounts Receivable shall
be determined by the Operations Settlement. As the Closing Date's financial
results are necessary for completion of the Operations Settlement, Buyer agrees
to the Hotel's employees' completion of posting of financial activity, all
schedules, credit card billings, and all other activities normally associated
with the daily activity of the Hotels. Any amounts determined to be due and
owing to Sellers by Buyer or to Buyer by Sellers pursuant to the Operations
Settlement shall be incorporated into the Closing Statements but to the extent
that any of the foregoing information is unavailable or is found to be
inaccurate, the same shall be handled as a post-closing adjustment, the
obligations of which shall survive the Closing.

         Section 4.02. Taxes and Rents. At Closing, all general real estate and
personal property taxes for the year of the Closing and special taxes and
assessments shall be prorated as of the Closing Date (with Buyer to pay taxes
attributed to the Closing Date and all periods thereafter) using the latest
available tax rates and assessments and taking advantage of any discounts or
rebates available for early payment and/or payment before delinquency. Except as
set forth herein, the parties shall have no obligation to readjust such
prorations after the Closing; provided, however, if the proration is based upon
the previous tax year's bills, the parties shall make an appropriate adjustment
upon receipt of the current tax year's bills. Sellers shall pay general real
estate and personal property taxes for all years prior to the year of the
Closing and all special taxes or assessments then due and payable as of the
Closing Date, except that, if any assessment against the Property, or any
portion thereof, is payable in installments, Buyer shall pay any and all of such
installments which may be paid after the Closing Date, and any installment
relating to the year of Closing shall be prorated as of the Closing Date (with
Buyer to pay all portions of such installment attributed to the Closing Date and
all periods thereafter). Buyer acknowledges that Sellers are currently pursuing
tax appeals with respect to certain of the Hotels. Buyer agrees to continue any
such appeals that relate to current tax years at Buyer's expense; provided,
however, that such expense shall be paid out of the proceeds of the tax refund
resulting from such appeal, if any, prior to the proration of such refund as
contemplated hereby. Seller shall be entitled to continue all such appeals that
relate to previous tax years. Any tax refunds or rebates occurring or accruing
with respect to any and all time periods before the Closing Date shall remain
the property of Seller, and, if Buyer collects or receives same, Buyer shall
promptly remit same to Seller. The provisions of the immediately preceding
sentence shall survive the Closing. All taxes or assessments which become due
and payable on or after the Closing Date shall be paid by Buyer.

         Section 4.03. Utilities. Prior to the Closing, Sellers shall notify all
utility companies servicing their respective portions of the Property of the
anticipated change in ownership of the Property and request that all billings
after the Transfer Time be made to Buyer at the addresses of the Hotel located
on their portion of the Property. Utility meters will be read, to the extent
that the utility company will do so, during the daylight hours on the Closing
Date, with charges

                                       16
<PAGE>

to that time paid by Seller and charges thereafter paid by Buyer. Prepaid
utility charges shall be adjusted on the Closing Statement and paid for at
Closing. Charges for utilities which are unmetered, or the meters for which have
not been read on the Closing Date, will be prorated between Buyer and Seller as
of the Transfer Time based upon utility billings received after Closing. Seller
or Buyer, as appropriate, shall, upon receipt, submit a copy of the utility
billings for any such charges to the other party and such party shall pay its
pro rata share of such charges to the party requesting payment within seven (7)
days from the date of any such request. This obligation shall survive Closing.

         Buyer shall be responsible for paying, before the Closing, all deposits
required by utility companies in order to continue service at the Hotels for
periods after the Transfer Time and shall take any other action and make any
other payments required to assure uninterrupted availability of utilities at the
Hotels and the Land for all periods after Closing. Following Closing, all
utility deposits made by any Seller shall be refunded directly to Seller by the
utility company holding same. This obligation shall survive Closing.

         Section 4.04. Assigned Operating Agreements.

         (a) All income and expenses with respect to the assigned Operating
Agreements will be prorated as of the Closing Date (with income and expenses for
the Closing Date and thereafter to be allocated to Buyer). There shall be added
to the amount due to Sellers at Closing, on the Closing Statement, the amount of
any amounts paid by Sellers under any Operating Agreements attributable to
periods including and after the Closing Date, and there shall be deducted from
the amount due Sellers at Closing, on the Closing Statement, any such amounts
paid to and collected by Sellers under any Operating Agreements attributable to
periods including and after the Closing Date.

         (b) Sellers shall be responsible for all management fees and other
amounts payable or reimbursable under the Assumed Management Agreements that
accrue for the period prior to the Closing Date, including, without limitation,
any accrued incentive fees under the Assumed Management Agreements. Buyer shall
be responsible for all management fees and other amounts payable or reimbursable
under the Assumed Management Agreements that accrue for the period from and
after the Closing Date, including, without limitation, any incentive fees that
accrue to the period from and after the Closing Date under the Assumed
Management Agreements.

         Section 4.05. Room Revenues; Reservations; Tray Ledger; Accounts
Receivable and House Funds.

                   (a) Room Revenues for the night prior to the Closing Date
(e.g., if the Closing Date is June 15, 2005, Room Revenues for the period of
time commencing on the evening of June 14, 2005 and ending on the morning of
June 15, 2005) shall be divided equally between Buyer and Sellers pursuant to
the Operations Settlement. Other Revenues for the night prior to the Closing
Date shall belong solely to Seller.

                   (b) Buyer will honor, for its account, the terms and rates of
all pre-closing reservations confirmed by Sellers or Managers for dates after
the Closing Date. Buyer

                                       17
<PAGE>

authorizes Sellers and Managers to continue to accept reservations for periods
after the Closing in the ordinary course of Sellers' or Managers' business.
Buyer recognizes that such reservations may include discounts or other benefits
provided in the ordinary course of business, including, without limitation,
benefits under any awards programs, sports team, corporate, government or group
discounts, weekend discounts or requirements that ancillary food, beverage or
other benefits be delivered by Buyer to the guest(s) holding such reservations.
Buyer agrees to honor all such reservations in accordance with their terms. Any
pre-closing deposits made to Sellers with respect to confirmed reservations for
dates after the Closing Date will be credited to Buyer at the Operations
Settlement. Any post-closing deposits received by Sellers with respect to
confirmed reservations for dates after the Closing Date will be forwarded to
Buyer upon receipt.

         Buyer will honor, for its account, all of Sellers room allocation
agreements and banquet facility and service agreements entered into in the
ordinary course of business which have been granted to groups, persons or other
customers for periods after the Closing Date at the rates and terms provided in
such agreements.

         Buyer agrees that Sellers cannot make and have made no representation
or warranty that any party holding a room reservation or agreement for Hotel
facilities or services will utilize such reservation or honor such agreement.
Buyer, by the execution hereof, assumes the risk of non-utilization of
reservations and nonperformance of such agreements.

         The provisions of this Section 4.05(b), including, without limitation,
the assumptions of risk and indemnities by Buyer set forth above, shall survive
the Closing.

                   (c) Buyer shall purchase the Tray Ledgers from Sellers
pursuant to the Operations Settlement, with deduction for the portion of the
Tray Ledger consisting of one-half of the Room Revenues for the night prior to
the Closing Date.

                   (d) Buyer shall purchase the House Funds, exclusive of any
non-cash items, from Sellers pursuant to the Operations Settlement.

                   (e) At Closing, Sellers shall receive a credit for all
Accounts Receivable in an amount equal to: (i) one hundred percent (100%) of all
such Accounts Receivable which are unpaid for not more than ninety (90) days;
plus (ii) ninety percent (90%) of all such Accounts Receivable which are unpaid
for more than ninety (90) days, but not more than one hundred twenty (120) days;
plus (iii) eighty-five percent (85%) of all such Accounts Receivable which are
unpaid for more than one hundred twenty (120) days, but not more than one
hundred fifty (150) days; plus (iv) eighty percent (80%) of all such Accounts
Receivable which are unpaid for more than one hundred fifty (150) days.

         Section 4.06. Accounts Payable and Expenses. All accounts payable and
expenses related to operations of the Property which have accrued before the
Transfer Time shall be paid by Sellers. Buyer understands and agrees that
Sellers may postpone and/or contest payment of any account payable or expense
which is the subject of a bona fide dispute, or for which a bill is not rendered
until after Closing. All accounts payable and expenses accruing after the
Transfer Time will be Buyer's responsibility.

                                       18
<PAGE>

         Section 4.07. 2005 Capital Expenditure and Property Improvement Plan
Expenses. Sellers agree that in the event Sellers do not expend Three Million
Five Hundred Thousand and No/100 Dollars ($3,500,000.00) on capital expenditures
(including PIPs) on Hotels (other than the PIPs contemplated in section 2.06
hereof) between January 1, 2005 and the Closing Date, the sum representing the
difference between Three Million Five Hundred Thousand and No/100 Dollars
($3,500,000.00) and the capital expenditures made by Sellers shall remain in
reserve accounts at Closing for the benefit of, and be the property of, Buyer.
Buyer shall not be obligated to reimburse Sellers for, or to pay for, such sums.

                                   ARTICLE V.
                                    EMPLOYEES

         Section 5.01. Salaries, etc. Sellers shall not be responsible for the
payment of the salaries, vacation pay, wages or benefits of any employees of the
Hotels accruing after the Transfer Time.

                                  ARTICLE VI.
                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Buyer as follows:

         Section 6.01. Existence and Good Standing. Sellers are duly organized,
validly existing and in good standing under the laws of the state of their
respective organization.

         Section 6.02. Authority. Sellers have, and on the Closing Date will
have, all requisite power and authority to execute and deliver this Agreement
and to consummate the transactions contemplated herein pursuant to the terms and
conditions of this Agreement.

         Section 6.03. No Conflict. The execution and delivery of this Agreement
and the consummation of the transactions contemplated herein will not conflict
with, breach, result in a default under, or violate any commitment, document or
instrument to which Seller is a party or by which it is bound.

         Section 6.04. Seller Is Not a "Foreign Person". None of the Sellers is
a "foreign person" within the meaning of Section 1445 of the Internal Revenue
Code, as amended (i.e., none of Sellers is a foreign corporation, foreign
partnership, foreign trust, foreign estate or foreign person as those terms are
defined in the Internal Revenue Code and regulations promulgated thereunder).

         Section 6.05. No Commitments. Except as reflected by the Permitted
Exceptions or due diligence materials delivered or otherwise made available by
Sellers to Buyer, no commitments have been made by Sellers to any governmental
authority, utility company, school board, church or other religious body, or any
homeowners' association or any other organization, group or individual, relating
to the Property which would impose an obligation upon Buyer to make any
contribution or dedication of money or land or to construct, install or maintain
any improvements of a public or private nature on or off the Property.

                                       19
<PAGE>

         Section 6.06. Insurance. To Sellers' Knowledge, all insurance policies
held with respect to the Property by Seller or Manager are valid and in full
force and effect and Sellers have and, to Sellers' Knowledge, Manager has
complied with all requirements or recommendations of the insurance carriers of
the insurance policies.

         Section 6.07. No Special Taxes. Except as disclosed by the Permitted
Exceptions or due diligence materials delivered or otherwise made available by
Seller, Seller has no Knowledge of, nor has it received any notice of, any
special taxes or assessments relating to the Property or any part thereof or any
planned public improvements that may result in a special tax or assessment
against the Property.

         Section 6.08. Litigation. Except as set forth on the schedule attached
as EXHIBIT "M" hereto, there is no pending and Sellers have no Knowledge of any
threatened litigation with respect to the Property in which any Seller is named
a party which has not been resolved, settled or dismissed.

         Section 6.09. Condemnation. Sellers have not received any written
notice of any pending condemnation proceeding or other proceeding in eminent
domain, and to the Sellers' Knowledge, no such condemnation proceeding or
eminent domain proceeding is threatened affecting the Property or any portion
thereof. Seller has no Knowledge of any change or proposed change in the route,
grade or width of, or otherwise affecting, any street, creek or road adjacent to
or serving the Land.

         Section 6.10. Title to Personal Property. Except as set forth in
writing by any Seller, the Sellers have good and valid title to all tangible
Personal Property, which shall be free and clear of all liens and encumbrances
as of the Closing.

         Section 6.11. Compliance with Applicable Law. Sellers have not received
any written notice of a violation of any applicable law with respect to the
Property which have not been cured or dismissed.

         Section 6.12. Taxes. All property, sales use and occupancy taxes which
accrue prior to the Closing Date will be paid in full or prorated at Closing.

         Section 6.13. Financial Statements. To Sellers' Knowledge, the
financial statements delivered by Sellers to Buyer are complete, accurate and
fairly represent the historical results of the operations and financial
condition of the Hotels.

         Section 6.14. Operating Agreements. Sellers is in compliance in all
material respects with the Operating Agreements. To Seller's Knowledge, the
schedule of Operating Agreements attached hereto as EXHIBIT "H" includes the
Material Operating Agreements.

         Section 6.15. Management Agreements. There are no Events of Default
under any Management Agreement (as defined therein), Sellers have received no
written notice of an Event of Default under any Management Agreement (as defined
therein), and, to Sellers' Knowledge, all sums due and payable thereunder as of
Closing have been paid. To Seller's Knowledge, the Assumed Management Agreements
delivered by sellers to Buyer are true and correct copies of the Assumed
Management Agreements.

                                       20
<PAGE>

         The representations and warranties in this Article 6 shall survive the
Closing for a period of one (1) year following the Closing Date; provided,
however, that the representation contained in Section 6.13 above shall survive
the Closing for a period of six (6) months following the Closing Date.

                                  ARTICLE VII.
                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Sellers as follows:

         Section 7.01. Existence and Good Standing. Buyer is a corporation, and
is duly organized, validly existing and in good standing under the laws of the
state of its organization.

         Section 7.02. Authority. Buyer has, and on the Closing Date will have,
all requisite power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated herein pursuant to the terms and
conditions of this Agreement. The Board of Directors of Buyer have approved this
Agreement and certified resolutions evidencing such approval will be delivered
to Sellers at Closing.

         Section 7.03. No Conflict. To Buyer's knowledge, the execution and
delivery of this Agreement and the consummation of the transactions contemplated
herein will not conflict with, breach, result in a default under, or violate any
commitment, document or instrument to which Buyer is a party or by which it is
bound.

         Section 7.04. AS IS. BUYER EXPRESSLY ACKNOWLEDGES AND AGREES THAT THE
PROPERTY IS BEING SOLD TO BUYER AND THAT BUYER AGREES TO PURCHASE AND ACCEPT THE
PROPERTY, AND EACH AND EVERY PART AND COMPONENT THEREOF, IN AN "AS IS, WHERE IS"
CONDITION AS OF THE CLOSING WITH NO REPRESENTATIONS OR WARRANTIES FROM SELLERS,
EITHER EXPRESS OR IMPLIED EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT. BUYER
AGREES THAT BUYER IS NOT RELYING UPON, AND HAS NOT RECEIVED OR BEEN GIVEN, ANY
REPRESENTATIONS (EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT), STATEMENTS OR
WARRANTIES (ORAL OR WRITTEN, IMPLIED OR EXPRESS) OF OR BY ANY OFFICER, EMPLOYEE,
AGENT OR REPRESENTATIVE OF SELLER, OR ANY SALESPERSON OR BROKER (IF ANY)
INVOLVED IN THIS TRANSACTION, AS TO THE PROPERTY OR ANY PART OR COMPONENT
THEREOF IN ANY RESPECT, INCLUDING, BUT NOT LIMITED TO, ANY REPRESENTATIONS,
STATEMENTS OR WARRANTIES AS TO THE PHYSICAL OR ENVIRONMENTAL CONDITION OF THE
PROPERTY, THE FITNESS OF THE PROPERTY FOR USE AS A HOTEL, THE FINANCIAL
PERFORMANCE OR POTENTIAL OF THE PROPERTY, THE COMPLIANCE OF THE PROPERTY WITH
APPLICABLE BUILDING, ZONING, SUBDIVISION, ENVIRONMENTAL, LIFE SAFETY OR LAND USE
LAWS, CODES, ORDINANCES, RULES, ORDERS, OR REGULATIONS, OR THE STATE OF REPAIR
OF THE PROPERTY, AND BUYER, FOR ITSELF AND ITS HEIRS, LEGAL REPRESENTATIVES,
SUCCESSORS AND ASSIGNS, WAIVES ANY RIGHT TO ASSERT ANY CLAIM OR DEMAND AGAINST
SELLERS AT LAW OR IN EQUITY RELATING TO ANY SUCH MATTER, WHETHER LATENT OR
PATENT, DISCLOSED OR

                                       21
<PAGE>

UNDISCLOSED, KNOWN OR UNKNOWN, NOW EXISTING OR HEREAFTER ARISING. EXCEPT FOR ANY
TITLE OR SURVEY MATTERS CREATED SOLELY BY SELLER IN VIOLATION OF THIS AGREEMENT,
BUYER AGREES THAT IT SHALL HAVE NO RECOURSE WHATSOEVER AGAINST SELLER, AT LAW OR
IN EQUITY, SHOULD THE SURVEY OR THE TITLE INSURANCE COMMITMENTS OR THE TITLE
POLICIES FAIL TO DISCLOSE ANY MATTER AFFECTING THE PROPERTY OR REVEAL ANY SUCH
MATTER IN AN INACCURATE, MISLEADING OR INCOMPLETE FASHION OR OTHERWISE BE IN
ERROR. BUYER ACKNOWLEDGES THAT IT SHALL REVIEW THE SURVEY AND THE TITLE
INSURANCE COMMITMENTS (AS SAME MAY BE MARKED AT CLOSING) AND TO DISCUSS THEIR
CONTENTS WITH THE INDEPENDENT CONTRACTORS WHO PREPARED OR ISSUED EACH OF THEM.
BUYER ACCORDINGLY AGREES TO LOOK SOLELY TO THE PREPARER OF THE SURVEY AND THE
ISSUER OF THE TITLE INSURANCE COMMITMENTS AND TITLE POLICIES FOR ANY CLAIM
ARISING OUT OF OR IN CONNECTION WITH SUCH INSTRUMENTS AND HEREBY RELEASES
SELLERS FROM ANY SUCH CLAIM (EXCEPT FOR ANY CLAIM THAT SELLERS AGREE TO CURE AS
SET FORTH IN THIS AGREEMENT).

         Buyer recognizes that the Hotels and Personal Property are not new and
that there exists a possibility that the Property is not in compliance with the
requirements which would be imposed on a newly constructed hotel by presently
effective federal, state and local building, plumbing, electrical, fire, health,
handicap, environmental and life safety laws, codes, ordinances, rules, orders
and/or regulations (collectively, the "building codes"). The Hotels and other
improvements on the Land may contain substances or materials no longer permitted
to be used in newly constructed buildings including, without limitation,
asbestos or other insulation materials, lead or other paints, wiring,
electrical, or plumbing materials and may not contain other materials or
equipment required to be installed in a newly constructed building. Buyer has
had the opportunity, as set forth in Section 11.04, to conduct such
investigations and inspections of the Property as Buyer deemed necessary with
respect to all such matters. Buyer agrees to accept and shall the Property in an
"AS-IS, WHERE IS" condition and at Closing to accept and assume the risk of
noncompliance of the Property with all such building codes. Except with respect
to those representations set forth in Section 6 hereof, Buyer waives any right
to excuse (except as set forth in Section 11.04 below) or delay performance of
its obligations under this Agreement or to assert any claim against Sellers
(before or after Closing) arising out of any failure of the Property to comply
with any such building codes.

         Except with respect to those representations set forth in Section 6
hereof, it is specifically understood and agreed by Sellers and Buyer that
Sellers do not make, and shall not be deemed to have made, any representation,
warranty or covenant with respect to (i) any Environmental Laws that may affect
any of the Property or (ii) the presence or absence of any Hazardous or Toxic
Substances in, on, above, under or about any of the Property. As used in this
Section 7.04, (A) the term "Environmental Laws" means all federal, State and
local laws, codes, ordinances, rules, orders and regulations now or hereafter in
effect relating to pollution or the protection of the environment, including
without limitation, all laws, codes, ordinances, rules, orders and regulations
governing the generation, use, collection, treatment, storage, transportation,
recovery, removal, discharge, spill or disposal of any or all Hazardous or Toxic
Substances, and (B) the term "Hazardous Substances" or "Toxic Substances" means
materials and substances defined as "hazardous substances", "hazardous wastes",
"toxic substances" or "toxic wastes" in (I) the

                                       22
<PAGE>

Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
U.S.C. Sections 9601-9675, as amended by the Superfund Amendments and
Reauthorization Act of 1988, and any further amendments thereto and rules,
orders and regulations thereunder; (II) the Resource Conservation and Recovery
Act of 1976, 42 U.S.C. Sections 6901-6992, as amended by the Hazardous and Solid
Waste Amendments of 1984, and any further amendments thereto and rules, orders
and regulations thereunder; or (III) any other Environmental Laws.

         It is understood and agreed by Sellers and Buyer that in the event of
any conflict between the terms and provisions of this Section 7.04 and any other
term or provision to this Agreement, the relevant term or provision of this
Section 7.04 shall control and govern. The provisions of this Section 7.04 shall
survive Closing.

                                 ARTICLE VIII.
                                    REMEDIES

         Section 8.01. Seller's Remedies. If Buyer defaults under any provision
of this Agreement before the Closing, Buyer and Sellers agree that the damages
that Sellers will sustain as a result thereof will be substantial, but the
actual damages will be difficult or impossible to ascertain. Accordingly, Buyer
and Sellers agree that, in the event of Buyer's default, Sellers may, as their
sole and exclusive remedies, terminate this Agreement by written notice to Buyer
in which event Sellers shall receive the Deposit as liquidated damages for such
default, the amount of which Deposit Buyer and Sellers agree is not punitive or
a penalty but is just, fair and reasonable, and the Escrow Agent shall
immediately pay the Deposit to Sellers.

         Section 8.02. Buyer's Remedies. In the event of a default hereunder on
the part of any Seller, Buyer's sole and exclusive remedies hereunder shall be
either: (1) the right to terminate this Agreement and receive a return of the
full amount of the Deposit, plus interest thereon; or (2) the right to seek
specific performance hereof, provided that Buyer must file a suit for specific
performance in the appropriate jurisdiction within ninety (90) days from the
date of such default by such Seller.

         The parties waive all damages and remedies for defaults prior to
Closing except as provided in this Agreement.

         Section 8.03. Post-Closing Matters. Notwithstanding the terms and
provisions of Sections 8.01 and 8.02 or any other term or provision of this
Agreement, Sellers and Buyer shall each retain the right to seek and obtain
relief for events occurring after the Closing Date provided that: (a) this
transaction in fact closes; (b) the obligations for which relief is sought are
obligations which by their express terms are to survive Closing or which by
their express terms are to performed following Closing (including any
indemnities hereunder, if any); and (c) such relief shall be limited to a suit
for monetary damages, unless expressly otherwise provided in this Agreement.
Except for obligations which by their express terms are to survive Closing or
which by their express terms are to be performed following Closing, the terms
and provisions of this Agreement shall not survive the Closing and shall merge
into the Deeds from Sellers to Buyer. The provisions of this Section 8.05 shall
survive Closing.

                                       23
<PAGE>

                                  ARTICLE IX.
                                   CONDITIONS

         Section 9.01. Sellers' Obligation. In addition to any other conditions
precedent for the benefit of Sellers expressly set forth in this Agreement, the
obligation of Sellers to perform this Agreement is subject to the following
conditions unless waived in writing by Sellers:

                  (a) The representations and warranties of Buyer in this
Agreement shall be true and correct in all material respects as of the Closing
Date as if made on and as of the Closing Date.

                  (b) Buyer shall have performed all obligations required to be
performed by it under this Agreement on or prior to the Closing Date.

         Section 9.02. Buyer's Obligation. In addition to any other conditions
precedent for the benefit of Buyer expressly set forth in this Agreement, the
obligation of Buyer to perform this Agreement is subject to the following
conditions unless waived in writing by Buyer:

                  (a) The representations and warranties of Sellers in this
Agreement shall be true and correct in all material respects as of the Closing
Date as if made on and as of the Closing Date.

                  (b) Sellers shall have performed all obligations required to
be performed by them under this Agreement on or prior to the Closing Date.

                  (c) There shall be no litigation instituted after the
execution of this Agreement with respect to the Property which, if adversely
determined, would have a material and adverse impact on the Property or the
operation of the Hotels.

                  (d) Seller shall have received and delivered to Buyer a
consent, in the form and substance specified in the Ground Lease (if any), from
the lessor under the Ground Lease to the Assignment and Assumption of Ground
Lease (to the extent required by the Ground Lease) together with an estoppel
certificate (to the extent the Seller has a right to request and the ground
lessor has an obligation to provide an estoppel certificate pursuant to the
terms of the Ground Lease) in form and substance required under the Ground
Lease, if any.

                  (e) Sellers shall have paid to Marriott International, Inc.,
or its affiliates, the sum of Ten Million Five Hundred Thousand and No/100
Dollars ($10,500,000.00) in satisfaction of accumulated loans.

                                   ARTICLE X.
                              CONVEYANCE OF ASSETS

         Section 10.01. Instruments of Conveyance. At Closing, Sellers (and/or
Operating Tenant) and Buyer (and/or its operating lessee) shall execute and
deliver to each other the following documents:

                                       24
<PAGE>

                  (a) Sellers, unless such Seller holds title to its portion of
the Land pursuant to a Ground Lease, shall execute and deliver to Buyer the
Deeds.

                  (b) Each Seller which holds title to its portion of the Land
pursuant to a Ground Lease and Buyer shall execute and deliver to each other
counterparts of the Assignment and Assumption of Ground Leases.

                  (c) Each Seller and/or Operating Tenant and Buyer and/or its
operating lessee shall execute and deliver to each other a Bill of Sale
(Personal Property).

                  (d) Each Seller and/or Operating Tenant and Buyer and/or its
operating lessee shall execute and deliver to each other counterparts of an
Assignment and Assumption of Intangible Property.

                  (e) Each Seller and/or Operating Tenant and Buyer or its
operating lessee shall execute and deliver to each other counterparts of an
Assignment and Assumption of Operating Agreements.

                  (f) Each Operating Tenant and Buyer or its operating lessee
shall execute and deliver to each other counterparts of an Assignment and
Assumption of Management Agreements.

                  (g) Sellers and Buyer shall execute a closing statement.

                  (h) Each Seller shall execute and deliver, at Closing, a
so-called "Non-Foreign Affidavit" (pursuant to Section 1445 of the Internal
Revenue Code).

                  (i) Buyer shall complete and deliver at Closing a Form 1099 as
required by the Internal Revenue Code.

                  (j) Buyer and Sellers shall execute such other affidavits,
authorizing resolutions, and documents as may be reasonably required by the
Title Company.

         Section 10.02. Personal Property. Seller shall maintain levels of
personal property at the Hotels, at all times prior to Closing, consistent with
the levels of personal property maintained as of the Effective Date hereof.

                                  ARTICLE XI.
                             TITLE TO REAL PROPERTY

         Section 11.01. Title Insurance Commitments. Prior to the execution of
this Agreement, Sellers shall have obtained the Title Insurance Commitments and
delivered the same to Buyer. Buyer hereby acknowledges that Buyer has approved
the Title Commitments and has accepted the Title Insurance Commitments as so
delivered to Buyer as evidence of the status of Sellers' title to the Hotels and
Land. If requested by Buyer, Seller will provide policies of coinsurance
provided that any incremental costs therefore shall be paid by the Buyer as
contemplated in Section 12.03(b)(3) hereof.

                                       25
<PAGE>

         Section 11.02. Title Defects. Prior to the execution of this Agreement,
Buyer has objected to, and Sellers have agreed to cure, those title matters, if
any, set forth on EXHIBIT "P" attached hereto and by this reference incorporated
herein (the "Title Defects"). Sellers shall have thirty (30) days from the
Effective Date to cure any such Title Defects except for monetary liens and
encumbrances which may be paid at Closing. If Sellers fail to cure any of the
Title Defects (other than monetary liens and encumbrances, which Seller shall be
obligated to cure at Closing), Buyer's sole and exclusive remedy shall be to
either (i) terminate this Agreement by written notice to Sellers given on or
before the Closing Date without recourse against Sellers and to obtain a refund
of the Deposit from the Escrow Agent, or (ii) to accept title to the Land and
Hotels in their then condition without reduction of the Purchase Price or
reservation of any claim against Seller.

         Section 11.03. Survey. Prior to the execution of this Agreement,
Sellers have provided Buyer with copies of any surveys of the Land which Sellers
have in their possession or control. Prior to the execution of this Agreement,
Buyer has obtained and provided Sellers and Title Company with a copy of,
Surveys of the Hotels and Land prepared by a licensed surveyor in the state in
which the Hotel which is the subject of the Survey is located and otherwise
meeting the ALTA requirements and standards. Prior to the execution of this
Agreement, Buyer has objected to, and Sellers have agreed to cure, those survey
matters, if any, set forth on EXHIBIT "P" attached hereto and by this reference
incorporated herein (the "Survey Defects"). Sellers shall have thirty (30) days
from the Effective Date to cure any such Survey Defects. If Seller fails to cure
any of the Survey Defects, Buyer's sole and exclusive remedy shall be to either
(i) terminate this Agreement by written notice to Sellers given on or before the
Closing Date without recourse against Sellers and to obtain a refund of the
Deposit from the Escrow Agent, or (ii) to accept the condition of the Land and
Hotels in their then condition without reduction of the Purchase Price or
reservation of any claim against Seller.

         Section 11.04. Access to Property; Due Diligence Materials. Buyer
acknowledges that prior to the execution of this Agreement, Buyer has had the
opportunity to inspect and conduct a full inspection and investigation of the
Property and accepts the condition of the Property in its "AS IS" "WHERE IS"
condition and acknowledges that Buyer has no right to terminate this Agreement
except in the event of a default by Sellers hereunder or except as otherwise
expressly provided in this Agreement.

                                  ARTICLE XII.
                                   THE CLOSING

         Section 12.01. Time and Place. Subject to the conditions in Article IX,
the casualty and condemnation provisions in Article XIII and an extension of the
Closing Date as a result of Sellers' attempt to cure Title Defects, the Closing
shall take place on the Closing Date at 10:00 a.m. (local time) at the office of
counsel for Buyer, or at such other date, place and time as Buyer and Sellers
may mutually agree upon in writing. At the request of either party, Buyer and
Sellers shall reasonably cooperate to accomplish this Closing "by mail." Buyer
shall take possession of the Property effective as of the Closing Date.

         Section 12.02. Payment of Purchase Price. At the Closing, Buyer shall
deliver by wire transfer of good funds the balance of the Purchase Price
(subject to adjustments and/or prorations

                                       26
<PAGE>

provided in this Agreement) to the Escrow Agent no later that 2:00 p.m. (Eastern
Time) on the Closing Date. The Deposit and the balance of the Purchase Price (as
adjusted) shall be paid to each of the Sellers, in such amounts as directed by
the Sellers, by the Escrow Agent by wire transfer of good funds to such bank
accounts specified by Sellers after delivery of the closing documents by Sellers
to the Title Company but before recordation of the Deeds or any other instrument
all as more particularly set forth in the escrow closing instructions of Sellers
and Buyer.

         Section 12.03. Closing Costs. (a) Sellers shall pay the following costs
and expenses at Closing:

                           (1) Sellers' prorated share of real estate and
                           tangible personal property taxes, rents or
                           assessments as set forth in this Agreement and any
                           general real estate and personal property taxes for
                           all years prior to the year of the Closing;

                           (2) The cost of issuing the Title Insurance
                           Commitments and the premium for issuance of the Title
                           Policies together with the cost of reasonable and
                           customary endorsements to the Title Policies not
                           relating to Buyer's financing, if any;

                           (3) Sellers' own legal expenses;

                           (4) One-half of the closing fee and/or settlement fee
                           charged by the Escrow Agent;

                           (5) All costs of satisfying in full any existing debt
                           secured by the Property and removing any encumbrances
                           in the form of monetary liens from the Title
                           Policies; and

                           (6) Any and all other costs and expenses expressly
                           allocated to Sellers under this Agreement.

                  (b)      Buyer shall pay the following costs and expenses at
                           Closing:

                           (1) Costs of transferring or canceling any Operating
                           Agreements;

                           (2) Costs of recording the Deeds and any other
                           transfer documents requiring recordation;

                           (3) All premiums and costs for issuing any
                           endorsements or additional coverage to the Title
                           Policy which are not to be paid by Sellers or
                           contemplated hereinabove, any title insurance premium
                           or cost (including endorsements and additional
                           coverage with respect thereto) related to Buyer's
                           financing, and any additional premiums and costs for
                           coinsurance requested by Buyer;

                           (4) Costs of supplying tax certificates to the Title
                           Company;

                                       27
<PAGE>

                           (5) Any sales taxes, transfer taxes or stamp taxes
                           pertaining to the transfer of the Property from
                           Sellers to Buyer;

                           (6) Any indebtedness or mortgage related taxes and
                           recording or other fees relating to any mortgage,
                           deed of trust or other security instrument executed
                           by Buyer;

                           (7) All fees, costs and expenses incurred with
                           respect to any purchase money financing incurred by
                           Buyer;

                           (8) Buyer's prorated share of all real estate and
                           tangible personal property taxes, rents, or
                           assessments as set forth in this Agreement;

                           (9) Buyer's own legal expenses;

                           (10) One-half of the cost of closing or settlement
                           fee charged by the Escrow Agent.

                           (11) The cost of preparing the Surveys; and

                           (12) Any termination charges related termination of
                           any Operating Agreements.

                           (13) Any UCC searches.

                           (14) Any costs or expenses incurred by Buyer in
                           connection with its inspections and due diligence
                           preformed on the Property.

                           (15) Any and all other costs and expenses expressly
                           allocated to Buyer under this Agreement.

         Section 12.04 Revenue and Expense Prorations. Pursuant to Article IV,
Sellers and Buyer will make appropriate apportionments and prorations of
expenses, rents, taxes and revenues and settle them by appropriate credits on
the Closing Statement or pursuant to the Operations Settlement, as the case may
be.

         Section 12.05 Closing Documents. At the Closing, Buyer and Sellers
shall also execute and deliver such documents as are specified or contemplated
by this Agreement, including, but not limited to, those required by Sections
4.01 and 10.01.

                                 ARTICLE XIII.
                      INSURANCE, CONDEMNATION AND CASUALTY

         Section 13.01 Insurance. All Sellers' insurance policies, including,
without limitation, fire and any additional hazard insurance, shall be cancelled
by Sellers as of the Transfer Time, and any refunded premiums shall be retained
by Sellers. Buyer will be responsible for acquiring and placing its own
insurance in force from and after the Transfer Time.

                                       28
<PAGE>

         Section 13.02 Condemnation and Casualty. (a) If, before the Closing,
any Seller receives notice that any Hotel or Hotels and any parcel or parcels
comprising the Land are to be wholly condemned, or to be condemned in such
substantial part that the value of the portion of the Hotels and Land so
condemned exceeds Fifty Million and No/100 Dollars ($50,000,000.00), or if one
or more of the Hotels is wholly or partially destroyed by fire or other
casualty, or if so much of the Hotels is damaged by fire or other casualty to
the extent that the cost of repairing such damage shall exceed Fifty Million and
No/100 Dollars ($50,000,000.00) as determined by the casualty insurer(s)
insuring the Hotels, then, in any such event, Buyer and each of the Sellers
shall each have the right to terminate this Agreement by delivering notice of
termination in writing to the other party within thirty (30) days after the
receipt of notice of such condemnation or casualty (but not later than the
Closing Date) (which notice will, to the extent then known, contain the amount
of compensation offered for such condemnation or the amount of insurance
proceeds offered to be paid on account of such casualty, as the case may be) and
upon giving such notice of termination the Deposit shall be returned by the
Escrow Agent to Buyer, and Sellers and Buyer shall each be released and
discharged from any further obligation to each other hereunder except for those
which expressly survive the termination of this Agreement; provided, however,
that if neither Buyer nor Sellers elects to terminate this Agreement, the
purchase contemplated herein shall be consummated without reduction of the
Purchase Price, within the later of (i) fifteen (15) days after the expiration
of such thirty (30) day period or (ii) the Closing Date, but Buyer shall be
entitled to all proceeds of fire or other casualty insurance or condemnation
(other than proceeds relating to business interruption or loss for periods prior
to the Transfer Time), Buyer shall receive a credit to the Purchase Price for
any deductibles with respect to any insurance proceeds and Sellers shall have no
responsibility for the restoration and repair of the Property.

         (b) If, before the Closing, any one or more Hotel is damaged by fire or
other casualty to the extent that the cost of repairing or restoring the same
shall be less than an amount equal to Fifty Million and No/100 Dollars
($50,000,000.00), or if any Seller receives notice that any Hotel and/or Land is
to be partially condemned but that the value of the Land and Hotels to be
condemned does not exceed Fifty Million and No/100 Dollars ($50,000,000.00),
then, and in any such event, the Closing shall proceed as scheduled and Sellers
shall assign to Buyer the proceeds (excluding proceeds for business interruption
or loss for periods prior to the Transfer Time) of any casualty insurance or any
condemnation award, as the case may be, Buyer shall receive a credit to the
Purchase Price for any deductibles with respect to any insurance proceeds and
Sellers shall have no responsibility for restoration or repair of the Property.

                                  ARTICLE XIV.
                     MISCELLANEOUS COVENANTS AND PROVISIONS

         Section 14.01 Assignment; Successors and Assigns. Except as otherwise
provided in this Section 14.01, neither this Agreement nor any right or interest
herein may be assigned by Buyer without the prior written approval of Sellers.
Notwithstanding anything to the contrary, Buyer shall have the right to assign
all or any portions of this Agreement to one or more Permitted Assignees without
obtaining Sellers' consent; provided that (1) such Permitted Assignee(s) assumes
in writing all of Buyer's applicable obligations and liabilities hereunder, (2)
a copy of the assignment and assumption of this Agreement is provided to Sellers
promptly following execution thereof and (3) Buyer shall not be released from
any of its obligations to

                                       29
<PAGE>

Sellers hereunder. Subject to the foregoing, this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs,
legal representatives, successors and assigns.

         Section 14.02 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

         Section 14.03 Waiver. No failure or delay in acting by any party to
this Agreement shall be deemed a waiver of such party's rights. Any waiver of
rights or remedies shall be required to be signed by the party charged with the
waiver in order for such waiver to be effective.

         Section 14.04 Amendments. This Agreement may be modified or amended
only by the written consent of Sellers and Buyer.

         Section 14.05 Further Agreements. Each party agrees that it will
execute and deliver to the other party any additional documents, agreements or
instruments necessary or reasonable to give effect to this Agreement or any
provision hereof.

         Section 14.06 Attorneys' Fees. In the event that any party is required
to retain the services of an attorney to enforce or otherwise litigate or defend
any matter or claim arising out of or in connection with this Agreement, then
the prevailing party shall be entitled to its reasonable attorneys' fees from
the non-prevailing party.

         Section 14.07 Entire Agreement. This Agreement sets forth all the
promises, representations, agreements, conditions and understandings relative to
the transactions set forth herein, and neither Sellers nor Buyer are relying
upon any promises, representations, agreements, conditions or understandings,
either oral or written, (which are hereby superseded in their entirety) other
than those expressed in this Agreement.

         Section 14.08 Brokers and Finders. Sellers and Buyer each represent and
warrant to the other that it has not employed, retained or consulted any broker,
agent or other finder with respect to the Property or in carrying on
negotiations relative to this Agreement, except as provided for in this Section
14.08, and Sellers and Buyer shall indemnify and hold the other harmless from
and against any and all claims, demands, causes of action, debts, liabilities,
judgments and damages (including costs and reasonable attorneys' fees incurred
in connection with the enforcement of this indemnity) which may be asserted or
recovered against the other on account of any brokerage fee, commission, or
other compensation arising in breach of this representation and warranty.
Sellers and Buyer hereby acknowledge that Broker, a licensed real estate broker
involved in the negotiation of the transactions contemplated herein, shall be
paid a sales commission by Sellers at Closing if, and only if, the transactions
contemplated by this Agreement are closed and consummated.

         Section 14.09 Notices. All notices, demands and requests required,
permitted or given pursuant to the provisions of this Agreement shall be in
writing, and either hand delivered in person or delivered by certified mail,
postage prepaid, return receipt requested, or by Federal Express or other
similar overnight courier service, addressed as follows:

                                       30
<PAGE>

If to Buyer:                           Ashford Hospitality Limited Partnership
                                       14185 Dallas Parkway, Suite 1100
                                       Dallas, Texas 75254
                                       Attention:  David A. Brooks

                                       with a copy to:

                                       Andrews Kurth LLP
                                       1717 Main Street, Suite 3700
                                       Dallas, Texas 75201
                                       Attention:  Brigitte Kimichik

If to Seller                           CNL Hotels & Resorts, Inc.
                                       CNL Center at City Commons
                                       450 South Orange Avenue
                                       Orlando, Florida 32801-3336
                                       Attention:  Marcel Verbaas

                                       with a copy to:

                                       Lowndes, Drosdick, Doster, Kantor
                                       & Reed, P.A.
                                       215 N. Eola Drive
                                       Orlando, Florida 32802-2809
                                       Attention:  Richard J. Fildes

         Any notice, demand or request which shall be served upon any of the
parties in the manner aforesaid shall be deemed sufficiently given (i) upon
being hand delivered in person, (ii) transmitted by facsimile transmission
provided a copy is sent pursuant to (iii) or the following business day, or
(iii) upon being deposited with Federal Express or other similar overnight
courier service; provided, however, the time period in which any response to
such notice, demand or request must be given shall commence on the date of
actual delivery of the notice, demand or request to the address to which it is
sent (rather than delivery to the specific addressee). Rejection or other
refusal to accept or the inability to deliver because of changed address of
which no notice was given as provided below shall be deemed delivery of the
notice, demand or request sent. The addresses given above may be changed by any
party by ten (10) days' prior notice to all other parties given in the manner
provided herein.

         Section 14.10 Section Headings; Interpretation. The section headings of
this Agreement are for reference only and shall not be used to construe or
interpret this Agreement. All terms and words used in this Agreement, regardless
of the number or gender in which they are used, shall be deemed to include any
other number and any other gender as the context may require. If any term or
condition of this Agreement or the application thereof to any person or
circumstance shall, to any extent, be held legally invalid or unenforceable, the
remainder of this Agreement, and the application of such terms or conditions to
persons or circumstances other than those as to

                                       31
<PAGE>

which it is held legally invalid or unenforceable, shall not be affected thereby
and each term and condition of this Agreement shall be valid to the fullest
extent permitted by law.

         Section 14.11 Governing Law. This Agreement shall be governed by the
laws of the state of Florida; provided, however, that with respect to matters
that relate to a specific portion of the Property, then this Agreement shall be
governed by the laws of the state where such Property is located.

         Section 14.12 Disclosure of Confidential Information/ Public
Announcements/ Communication with Governmental Authorities/ Communication with
Employees. (a) The parties hereto acknowledge and agree that the existence of
this Agreement, the terms of this Agreement and any other information disclosed
in the due diligence materials delivered to or produced by Buyer or any other
documents, materials, data or other information with respect to the Property
which is not generally known to the public (the "Confidential Information")
shall in all respects remain confidential and shall not be disclosed by the
Buyer except as provided herein. Buyer may disclose Confidential Information to
officers, directors, employees, attorneys, accountants, consultants, lenders,
financial advisors, partners and investors (collectively, "Representatives"),
who in the reasonable business judgment of such party, need to know the
Confidential Information for the purpose of evaluating the transactions
contemplated by this Agreement. Buyer will inform its Representatives of its
confidentiality obligations under this Agreement, and such Representatives shall
agree to be bound by the terms and conditions of this Agreement, before Buyer
may disclose any Confidential Information to its Representatives. The disclosure
of any Confidential Information by any Representative in breach of this
Agreement will constitute a breach of this Agreement by Buyer, for which Buyer
will be liable. If Buyer or any of its Representatives is required by any
subpoena, interrogatories, request for production, or other legal process or by
any applicable law or regulation to disclose any Confidential Information, Buyer
will give (to the extent not prohibited by law) Sellers prompt written notice of
the requirement and will cooperate with the Sellers so that Sellers, at their
expense, may seek an appropriate protective order. In the absence of a
protective order, Buyer and its Representatives may disclose only such
Confidential Information as may in Buyer's reasonable opinion, be necessary to
avoid any penalty, sanction, or other material adverse consequence, and Buyer
will use commercially reasonable efforts to secure confidential treatment of any
Confidential Information so disclosed.

         (b) Notwithstanding the foregoing, any party hereto shall have the
right to make a public announcement regarding the transaction described in this
Agreement, provided, however, that, prior to and as a condition precedent to
such public announcement, all other parties hereto shall approve the timing,
form and substance of any such public announcement, except if a party hereto is
required to make a public announcement under any securities law, the party
making such public announcement may do so only after having provided the other
party with a copy of such public announcement and only as long as such public
announcement is made in strict accordance with the applicable law requiring such
public announcement be made.

         (c) Without limiting the generality of the provisions in subsection (a)
above, Buyer shall not, through its officers, employees, managers, contractors,
consultants, agents, representatives or any other person (including, without
limitation, Buyer's third party consultants), directly or indirectly,
communicate with any governmental authority or any official,

                                       32
<PAGE>

employee or representative thereof, involving any matter with respect to the
Property without the Sellers' prior written consent, which consent shall not be
unreasonably withheld, unless such communication is arranged by the Sellers.
Notwithstanding the foregoing, Buyer and its representatives and consultants
shall have the right to review building department, health department and other
local governmental authority records with respect to the Property and the
operation of the Hotels and request written or verbal confirmation of zoning and
any other compliance by the Land or Hotels with any applicable laws, without any
requirement to obtain the consent of the Sellers. Notwithstanding the foregoing,
Buyer shall have the right to communicate with the applicable governmental
authority in connection with the issuance of any liquor licenses required for
the sale of liquor at the Hotels, and any and all other permits or licenses
required to be transferred or applied for in connection with the sale of the
Hotels, all without the prior consent of the Sellers; provided, however, that
(i) Buyer shall provide Sellers with regular updates regarding the progress of
any and all such communications; and (ii) no inspections of the Hotels by the
applicable governmental authorities shall occur unless a representative of the
Sellers is present during such inspections.

         (d) Liquor Licenses. To the extent transferable, Sellers shall transfer
to Buyer or its designee, or cause to be transferred to Buyer or its designee,
all liquor licenses and alcoholic beverage licenses which are necessary to
operate the restaurant, bars and lounges presently located within the Hotel
located in Crystal City, Virginia (the "Crystal City Hotel") and held in the
name of Sellers (and not the Manager). To that end, Sellers and Buyer shall
reasonably cooperate each with the other, and each shall execute such transfer
forms, license applications and other documents as may be necessary to effect
such transfer. The parties shall use good faith efforts to effect such transfer
prior to Closing. If permitted under the laws of the Commonwealth of Virginia,
the parties shall execute and file all necessary transfer forms, applications
and papers with the appropriate liquor and alcoholic beverage authorities prior
to Closing, to the end that the transfer shall take effect, if possible, on the
Closing Date, simultaneously with Closing. If not so permitted, then the parties
agree each with the other that they will promptly execute all transfer forms,
applications and other documents required by the appropriate liquor and
alcoholic beverage authorities in order to effect such transfer at the earliest
date in time possible consistent with the laws of the Commonwealth of Virginia,
in order that all liquor licenses may be transferred from Sellers to Buyer or
its designee at the earliest possible time. If under the laws of the
Commonwealth of Virginia, such licenses cannot be transferred or otherwise will
not be transferred until after Closing, then Sellers covenant and agree that
Sellers shall reasonably cooperate with Buyer in keeping open the bars and
lounges and liquor facilities of the Crystal City Hotel between the Closing Date
and the time when such liquor license transfers actually become effective, by
causing the current Manager of such facilities to continue exercising
supervision and management under Sellers' licenses pursuant to a written
agreement in the substantially the form attached hereto as EXHIBIT "O" until
such time as Buyer obtains licenses for such facilities, but in any event not
later than sixty (60) days after the Closing Date (at which time such written
agreement shall terminate); provided, however, that Buyer, at Buyer's cost and
expense, shall maintain in force and effect at all times insurance reasonably
acceptable to Sellers (with Sellers as additional named insureds) and shall
indemnify and hold Sellers harmless from any liability, damages or claims
encountered in connection with such operations during said period of time,
except for Sellers' gross negligence or willful misconduct and no employees of
said facilities shall be employees of any Seller. All cost and expense of such
operations during said period of time shall be the sole responsibility of and be
promptly paid by Buyer. Buyer

                                       33
<PAGE>

covenants and agrees that upon the filing of all necessary transfer forms,
applications and other documents with the appropriate liquor and alcoholic
beverage authorities, Buyer will diligently and in good faith prosecute the
transfer of the liquor licenses to completion.

         (e) Communication with Employees. Without limiting the generality of
the provisions in subsection (a) above, Buyer shall not, through its officers,
employees, managers, contractors, consultants, agents, representatives or any
other person (including, without limitation, Buyer's third party consultants),
directly or indirectly, communicate with any Employees or any person
representing any Employees involving any matter with respect to the Property,
the Employees or this Agreement, without the prior written consent of Sellers
and Managers, which consent may be withheld in the sole discretion of Sellers
and Managers, unless such communication is arranged by the Sellers and/or
Managers. Notwithstanding the foregoing, the Sellers shall reasonably cooperate
with Buyer in order to arrange communications, pursuant to a schedule to be
reasonably agreed upon by the parties in order to allow Buyer to interview the
Employees for possible continued employment, and Buyer shall apprise the Sellers
from time to time as to its plans for communicating with such Employees, and to
complete such communications in advance of the Closing.

         Section 14.13 Time of Essence. Time is of the essence of this Agreement
and each term and provision hereof; provided, however (unless specifically
provided to the contrary elsewhere in this Agreement), when the date by which
any action, event or condition is to occur or any notice or other communication
is to be given falls on a Saturday, Sunday or legal holiday, the date by which
such action, event or condition is to occur or such notice or other
communication is to be given shall be automatically extended to the business day
immediately succeeding such Saturday, Sunday or legal holiday.

         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
as of the date first above written.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       34
<PAGE>

                                     BUYER:

                                     ASHFORD HOSPITALITY LIMITED PARTNERSHIP,
                                     a Delaware limited partnership

                                     By:  Ashford OP General Partner LLC, its
                                          general partner

                                     By: /s/ DAVID BROOKS
                                         --------------------------------------
                                     Name: David Brooks
                                     Its: Vice President

                                     Date Executed: April 26, 2005

                                       35
<PAGE>

                                     CNL HOSPITALITY PARTNERS, LP,
                                     a Delaware limited partnership

                                     By:  CNL HOSPITALITY GP CORP.,
                                          a Delaware corporation,
                                          its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       36
<PAGE>

                                     CNL CRYSTAL CITY II HOTEL, LP,
                                     a Delaware limited partnership

                                     By:  CNL CRYSTAL CITY II HOTEL GP, LLC,
                                          a Delaware limited liability
                                          company, its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       37
<PAGE>
                                     RFS PARTNERSHIP, L.P.,
                                     a Tennessee limited partnership

                                     By:  CNL ROSE GP CORP.,
                                          a Delaware corporation
                                          its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       38
<PAGE>

                                     ROSE SPE 1, LP,
                                     a Delaware limited partnership

                                     By:   ROSE SPE 1 GP, LLC,
                                           a Delaware limited liability company,
                                           its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       39
<PAGE>

                                     CNL HOTEL CY-WESTON, LTD.,
                                     a Florida limited partnership

                                     By:  CNL CY-WESTON, LLC,
                                          a Florida limited liability company,
                                          its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       40
<PAGE>

                                     CNL FOOTHILL HOTEL PARTNERSHIP, LP,
                                     a Delaware limited partnership

                                     By:  CNL FOOTHILL GP CORP.,
                                          a Delaware corporation,
                                          its sole general partner

                                          By: /s/ MARCEL VERBASS
                                              ------------------
                                          Name: Marcel Verbass
                                                ----------------
                                          Title:
                                                ----------------

                                       41
<PAGE>

                                    ESCROW AGENT:

                                    THE TALON GROUP, a division of First
                                    American Title Insurance Company

                                    By:     /s/ MICHAEL J. MOORE
                                            -----------------------------------
                                    Name:   Michael J. Moore
                                            -----------------------------------
                                    Title:  Manager
                                            -----------------------------------

                                    Date Executed: April 27, 2005

                                    FOR PURPOSES OF ACKNOWLEDGING AND AGREEING
                                    ONLY TO THE PROVISIONS OF SECTION 2.04 OF
                                    THIS AGREEMENT

                                       42

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