Document:

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                                                                  Exhibit 10.31

11.7.00                                                            File No. 1088

                              TERM LOAN AGREEMENT

     THIS TERM LOAN AGREEMENT ("Agreement"), dated as of the____ day of October,
1999, by and between E&P Financing Limited Partnership, a Maryland limited
partnership ("Borrower") whose principal address is 12301 Old Columbia Pike,
Suite 300, Silver Spring, Maryland, 20904, and First National Bank of Omaha, a
national banking association with principal business offices at 1620 Dodge
Street  in Omaha, Nebraska ("Bank") has been executed in connection with the
following circumstances:

     1.   Supertel Hospitality, Inc., a Delaware corporation ("Supertel"),  has
caused the formation of both the Borrower, of which Supertel is the sole limited
partner,  and E&P REIT Trust, a Maryland real estate investment trust ("General
Partner"), which is the sole general partner of Borrower.

     2.   Supertel and Humphrey Hospitality Trust, Inc., a Virginia corporation
("HHT"), have entered an Agreement and Plan of Merger dated as of June 11, 1999,
pursuant to which Supertel will merge with and into HHT following the date
hereof (the "Merger"). Following the Merger, HHT will be the surviving
corporation, and will own one hundred percent (100%) of the stock of the General
Partner and will be the sole limited partner of the Borrower.

     3.   Borrower has requested a loan from the Bank in the amount of Fifteen
Million Dollars ($15,000,000.00), which loan shall be used by the Borrower to
fund (1) general corporate purposes, and (2) certain distributions to its
general and limited partners, which funds would be used to fund (1) general
corporate purposes, and (2) certain distributions to its general and limited
partners, which funds would be used to fund earnings and profits dividends by
Supertel prior to the Merger (the "E&P Distribution").

     4.   Bank has agreed to make the above-described loan to the Borrower on
the terms and conditions set forth herein and set forth in the other collateral
documents ("Collateral Documents") (as defined below).

     In consideration of the promises herein contained, and each intending to be
legally bound thereby, the parties agree as follows:

Section I. Definitions as used herein:

     1.   "Accounts," "Chattel Paper," "Contracts," "Documents," "Equipment,"
"Fixtures," "General Intangibles," "Goods," "Instruments" and "Inventory" shall
have the same meaning as is given  that term in the Uniform Commercial Code as
presently adopted and in effect in the State of Nebraska.

     2.   "Accounting." Accounting terms used and not otherwise defined in this
Agreement have the meanings determined by, and all calculations with
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respect to accounting or financial matters unless otherwise provided herein
shall be computed in accordance with, GAAP.

     3.   "Affiliate" means as to any Person, each other Person that directly,
or indirectly through one or more intermediaries, controls, or is controlled by,
or under common control with, such Person.

     4.   "Collateral" has the meaning given to such term in Section III.

     5.   "Collateral  Documents" means the Note, financing statements and other
documents required by Bank as set forth herein, together with any real estate
lien documents used in this transaction.

     6.   "Event of Default" has the meaning provided for in Section VI.

     7.   "Financial Statements" means (1) the pro forma balance sheet of the
Borrower reflecting the anticipated financial condition of Borrower immediately
following the Merger and (2) the Balance Sheets, Consolidated Statements of Cash
Flows, and Consolidated Statements of Operations of HHT as of June 30, 1999,
internally prepared, which statements shall present fairly the consolidated
financial position and results of operations of HHT at such dates and for such
periods in accordance with GAAP.

     8.   "GAAP" means generally accepted accounting principles applied
consistently as was done in the preparation of the Financial Statements with
such changes or modifications hereto as may be approved in writing by the Bank.

     9.   "Indebtedness" means all items of indebtedness, obligation or
liability, whether matured or unmatured, liquidated or unliquidated, direct or
contingent, joint or several.

     10.  "Loan Termination Date" means the earliest to occur of the following:
(i) November 1, 2009, (ii) the date the obligations are accelerated pursuant to
this Agreement, and (iii) the date Bank receives (a) notice in writing from
Borrower of Borrower's election to terminate this Agreement, and (b)indefeasible
payment in full of the Obligations, or such other date as may later be agreed to
by Bank and Borrower in a written amendment to this Agreement.

     11.  "Obligations" means the obligation of the Borrower:

          A.   To pay the principal of, and interest on, any promissory note in
     accordance with the terms thereof and to satisfy all of its other
     liabilities to the Bank, whether hereunder or otherwise, whether now
     existing or hereafter incurred, matured or unmatured, direct or contingent,
     joint or several, including any extensions, modifications, renewals
     thereof, and

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     substitutions therefor and including, but not limited to, any obligations
     under letter of credit agreements;

          B.   To repay to the Bank all amounts advanced by the Bank hereunder
     or otherwise on behalf of the Borrower, including, but without limitation,
     advances for principal or interest payments to prior secured parties,
     mortgagees, or licensors, or taxes, levies, insurance, rent, or repairs to,
     or maintenance or storage of, any of the Collateral ; and

          C.   To reimburse the Bank, on demand, for all of the Bank's expenses
     and costs, including the reasonable fees and expenses of its counsel, in
     connection with the preparation, administration, amendment, modification,
     or enforcement of this Agreement and the documents required hereunder,
     including, without limitation, any proceeding brought or threatened, to
     enforce payment of any of the Obligations referred to in the foregoing
     Paragraphs A and B.

     12.  "Permitted Liens" means:

          A.   Liens for taxes, assessments, or similar charges, incurred in the
     ordinary course of business that are not yet due and payable;

          B.   Exceptions (to title) itemized in Schedule B-Section II of the
     loan policies of title insurance issued to Bank in connection with the
     $15,000,000.00 loan from Bank to Borrower, as reflected on the following
     title insurance commitments issued by Chicago Title Insurance Company to
     Bank  covering the motel properties legally described in the Title
     Commitments (the "Mortgaged Properties):

          Location                   Commitment No.   Date
          --------                   --------------  -------

          Hays, Kansas               98-363TT        7/19/99
          Wichita (East) Kansas      C535184D        8/26/99
          Garden City, Kansas        0023632         7/14/99
          Manhattan, Kansas          CTI 7247        7/15/99
          Kingdom City, Missouri     991556C          9/1/99
          Wayne, Nebraska            9851017258      8/13/99
          Watertown, South Dakota    1415-5          8/23/99
          Omaha, Nebraska            9851017260      9/17/99
          El Dorado, Kansas          BU-16749        7/23/99
          Wichita (North) Kansas     C539408C        8/26/99
          Parsons, Kansas            CT9924          9/17/99

          C.  Pledges or deposits made in the ordinary course of business to
     secure payment of workers' compensation, or to participate in any

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     fund in connection with workers' compensation, unemployment insurance, old-
     age pensions or other social security programs;

          D.   Liens of mechanics, materialmen, warehousemen, carriers, or other
     like liens, securing obligations incurred in the ordinary course of
     business that are not yet due and payable;

          E.   Liens in favor of the Bank.

     13.  "Person" means any individual, corporation, limited liability company,
partnership, association, joint-stock company, trust, unincorporated
organization, joint venture, court, or government or political subdivision or
agency thereof.

Section II. The Loan.

     1.   Bank agrees to lend $15,000,000.00 to Borrower pursuant to this
Agreement (the "Term Loan"). The Term Loan shall be evidenced by a
$15,000,000.00 Promissory Note ("Note") and further evidenced and secured by the
other "Loan Documents" as defined in the Note.

     2.   Interest Rate and Payments.

          A.   All outstanding principal and unpaid interest shall be due and
     payable on Loan Termination Date, unless earlier paid or due as the result
     of acceleration.

          B.   For purposes of determining the amount of the Obligations,
     including, without limitation, the computations of interest which may from
     time to time  be owing by Borrower to Bank, the receipt of any check or
     other item of payment by Bank shall not be treated as a payment on account
     of the liabilities until such check or other item of payment is actually
     paid in cash or cash equivalent.

Section III. Collateral  Security.

     Borrower has executed 10 Deeds of Trust or Mortgages, Assignments of Leases
     and Rents, and other Loan Documents, as defined in the Note granting Bank a
     first mortgage lien and security interest in and to certain real and
     personal property comprising 11 operating motel properties more
     particularly described on Exhibit "A" attached hereto and incorporated by
     this reference herein ("Collateral"). Each such separate Loan Document is
     a Collateral Document.

Section IV. Representations and Warranties.

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     1.   To induce the Bank to enter into this Agreement, the Borrower
represents and warrants to the Bank as follows:

          A.   The Borrower will allow no additional subsidiaries;

          B.   Neither the Borrower nor HHT is in default with respect to any of
     their respective Indebtednesses, and the making and performance of this
     Agreement and the Collateral Documents by Borrower will not immediately, or
     with the passage of time, the giving of notice, or both, cause Borrower or
     HHT to be in default under any existing Indebtedness; the execution and
     performance of this Agreement by Borrower will not: violate the limited
     partnership agreement of the Borrower, or violate any laws or result in a
     default under any contract, agreement, or instrument to which the Borrower
     is a party or by which the Borrower or its property is bound; or result in
     the creation or imposition of any security interest in, or lien or
     encumbrance upon, any of the assets of the Borrower, except in favor of the
     Bank;

          C.   This Agreement and the Collateral Documents are, or when
     delivered will be, valid, binding, and enforceable in accordance with their
     respective terms;

          D.   There is no pending order, notice, claim, litigation, proceeding,
     or investigation against or affecting the Borrower or HHT, which is not
     covered by insurance, that would materially or adversely affect the
     financial condition or business prospects of the Borrower or HHT if
     adversely determined;

          E.   The Financial Statements, including any schedules and notes
     pertaining thereto, have been prepared in accordance with GAAP and fully
     and fairly present the financial condition of HHT at the date thereof and
     the results of operations for the period covered thereby, and there have
     been no material adverse changes in the consolidated financial condition or
     business of HHT from June 30, 1999, to the date hereof. Bank acknowledges
     that for the purposes of this Subparagraph and the remainder of this
     Agreement, the Merger will not be an adverse change

          F.   As of the date hereof, neither the Borrower nor  HHT has any
     material Indebtedness of any nature, including but without limitation,
     liabilities for taxes and any interest or penalties relating thereto,
     except to the extent reflected (in a footnote or otherwise) in the
     Financial Statements or as disclosed in Schedule IV.1.F attached hereto and
     by this reference incorporated herein, or otherwise permitted by, this
     Agreement; and the Borrower and HHT do not know, or have reasonable ground
     to know of any basis for the assertion against it of any such Indebtedness
     as of the date of the Closing;

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          G.   No representation or warranty by or with respect to the Borrower
     or HHT contained herein or in any certificate or other document furnished
     by the Borrower or HHT, pursuant hereto contains any untrue statement of a
     material fact or omits to state a material fact necessary to make such
     representation or warranty not misleading in light of the circumstances
     under which it was made;

          H.   Any federal tax returns for all years of operation, including the
     last tax year for HHT have been filed with the Internal Revenue Service and
     have not been challenged;

          I.    Any Employee Pension Benefit Plans, as defined in the Employee
     Retirement Income Security Act of 1974, as amended ("ERISA"), of  HHT meet,
     as of the date hereof, the minimum funding standards of 29 U.S.C. Sec. 1082
     (Section 302 of ERISA), and no Reportable Event or Prohibited Transaction
     as defined in ERISA, has occurred with respect to any Employee Benefit
     Plans, as defined in ERISA, of the HHT;

          J.   (1)  Borrower warrants (and this shall be a continuing warranty
               which shall survive until all the Obligations of Borrower to Bank
               have been fully satisfied) that it and HHT are in compliance with
               all federal, state and local environmental laws and regulations
               and have obtained all environmental permits necessary or
               appropriate to the conduct of the business of each. There is not
               pending nor, to the best of the Borrower's and HHT's knowledge
               after due inquiry, are there any threatened environmental
               enforcement actions, suits or proceedings before any court,
               tribunal or administrative body or official. Responsible officers
               and agents of the Borrower and HHT have made an extensive
               investigation and have determined that neither the Borrower nor
               HHT has, nor has any former owner of real property occupied by
               Borrower stored, used or disposed of any toxic or hazardous
               substance on its properties or transported any such substance to
               or from its properties in violation of any presently existing or
               previously existing laws, regulations or policies. The Borrower
               will not store, use or dispose of such substances on its
               properties.

               (2)  Notwithstanding the immediately preceding subparagraph (1),
               Borrower shall not be deemed to be in default of the provisions
               in said subparagraph, if (i) under applicable laws or
               regulations, Borrower is not a "responsible party" to clean up
               the condition constituting noncompliance, or (ii) the
               noncompliance does not materially affect the value, use or
               operation of the Collateral

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               for the loan. "Materially" shall mean a total, at any one time,
               of not more than five hundred thousand dollars ($500,000.00) for
               all Collateral.

     2.   Survival. All of the representations and warranties set forth in
Section IV. 1 shall survive until all Obligations are satisfied in full and
there remain no outstanding commitments hereunder.

Section V. Covenants of the Borrower.

     1.   Affirmative Covenants. The Borrower does hereby covenant and agree
with the Bank that, so long as any of the Obligations remain unsatisfied or any
commitments hereunder remain outstanding, it will comply at all times with the
following covenants:

       A. The Borrower will furnish the Bank:

          1.   Within ninety (90) days after the close of each quarterly
               accounting period in each fiscal year an income statement and
               balance sheet of the Borrower for such quarter in reasonable
               detail, subject to normal year-end audit adjustments and
               certified by the Borrower's president or principal financial
               officer to have been prepared in accordance with GAAP;

          2.   Within One Hundred Twenty (120) days after the close of each
               fiscal year of Borrower: (a) a consolidated statement of
               partners' equity and a consolidated statement of cash flow of the
               Borrower and any subsidiaries for such fiscal year; (b)
               consolidated and consolidating income statements of the Borrower
               and HHT and any subsidiaries as of the end of such fiscal year-
               all such statements to be in reasonable detail, including all
               supporting schedules and comments; the consolidated statements
               and balance sheets, together with all trial balances of
               Borrower's operations upon which such consolidated statements are
               based, to be audited by independent certified public accountants
               selected by Borrower and certified by such accountants to have
               been prepared in accordance with GAAP and to present fairly the
               consolidated financial position and results of operations of the
               Borrower, HHT and any subsidiaries and accompanied by such
               accountants' opinion thereon that such documents have been
               audited in compliance with the American Institute of Certified
               Public Accounts Statements of Auditing standards in effect as of
               the execution hereof, together with all trial balances of the
               Borrower's operations upon which such

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               consolidated statements are based; the Bank shall have the right,
               from time to time, to discuss the affairs of the Borrower
               directly with such independent certified public accountants after
               notice to the Borrower and opportunity of the Borrower to be
               represented at any such discussions;

          3.   Bank shall agree to grant reasonable extensions of the 120 day
               time period upon written request of Borrower.

       B. The Borrower shall maintain:

          1.   A debt service coverage ratio, based on the trailing one-year
               period, of more than 1.5:1 for the Mortgaged Properties on a
               combined basis.  This condition will be tested on a quarterly
               schedule.  "Debt service coverage ratio" shall be the ratio
               determined by dividing Adjusted Net Operating Income (defined in
               3. below) of the Mortgaged Properties for such period by  the
               amount of debt service payments (principal and interest) required
               to be made under this Agreement.

          2.   A debt service coverage ratio, based on the trailing one-year
               period, of more than 1.5:1 for all of Borrower's obligations on a
               consolidated basis. This condition will be tested on a quarterly
               schedule. The debt service coverage ratio for Borrower's
               obligations on a consolidated basis shall be determined by
               dividing Adjusted Net Operating Income from the Borrower's
               properties on a consolidated basis by the amount of debt service
               payments (principal and interest) required to be made by the
               Borrower for all Borrower's properties.

          3.   A loan-to-value ratio not in excess of 60%, to be tested on a
               quarterly basis and to be applied to the Mortgaged Properties and
               to the indebtedness owed to Lender. The following formula shall
               be used to determine the "loan to value ratio:"

                    For the purpose of calculating loan to value ratio as of
                    December 31, 1999, and at quarterly measurement intervals
                    thereafter, the value of the Collateral shall be determined
                    by applying a capitalization rate of 12% to the trailing
                    twelve months' adjusted net operating income ("Adjusted Net
                    Operating Income"), defined as the remainder of the net
                    operating income from the Mortgaged Properties after
                    reducing the net operating income by an amount equal to the
                    sum of (a) four

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                    percent (4%) of the gross room revenue for FF&E reserve,
                    plus (b) four percent (4%) of gross room revenue for
                    management fees and expenses. In determining loan to value
                    ratio, the cost of any required remedial action because of
                    noncompliance with "an Environmental Requirement," as
                    defined in the Environmental Indemnity Agreements between
                    Borrower and Lender dated of even date herewith, shall be
                    deducted from the value of the Collateral.

                    For the purpose of determining "value" in the above "loan-
                    to-value" ratio calculation, no value shall be attributed to
                    a motel property which is not operated under a Super 8 or
                    other motel franchise reasonably acceptable to Lender. This
                    provision shall not preclude Borrower from providing
                    substitute Collateral for any motel property which is not
                    then operated under a Super 8 or other motel franchise
                    reasonably acceptable to Lender.

                  4.   A loan-to-value ratio not in excess of 60%, to be tested
                  on a quarterly basis and to be applied to all properties owned
                  by Borrower and all debt obligations of Borrower on a
                  consolidated basis. The following formula shall be used to
                  determine the "loan to value ratio:"

                    For the purpose of calculating loan to value ratio as of
                    December 31, 1999, and at quarterly measurement intervals
                    thereafter, the value of all properties owned by Borrower
                    shall be determined by applying a capitalization rate of 12%
                    to the trailing twelve months' adjusted net operating income
                    ("Adjusted Net Operating Income"), defined as the remainder
                    of the net operating income from the all of the properties
                    owned by Borrower after reducing the net operating income by
                    an amount equal to the sum of (a) four percent (4%) of the
                    gross room revenue for FF&E reserve, plus (b) four percent
                    (4%) of gross room revenue for management fees and expenses.
                    In determining loan to value ratio, the cost of any required
                    remedial action because of noncompliance with "an
                    Environmental Requirement," as defined in the Environmental
                    Indemnity Agreements between Borrower and Lender dated of
                    even date herewith, shall be deducted from the value of all
                    properties owned by Borrower.

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               For the purpose of determining "value" in the above "loan-to-
            value" ratio calculation,  no value shall be attributed to a motel
            property which is not operated under a Super 8 or other motel
            franchise reasonably acceptable to Lender.  This provision shall not
            preclude Borrower from providing a substitute property for any motel
            property which is not then operated under a Super 8 or other motel
            franchise reasonably acceptable to Lender.

          5.   In the event that Borrower shall merge with HHT or any other
               Person, the foregoing ratios continue to be applicable to
               Borrower's successor.

               The failure of Borrower to maintain any of the above ratios, if
               not cured as provided in Section VI.3.B.1, shall constitute an
               Event of Default hereunder.

          C.  The Borrower will take all necessary steps to preserve limited
     partnership existence and franchises and comply with all present and future
     laws applicable to it in the operation of its business, and all material
     agreements to which it is subject.

          D.  The Borrower will give immediate notice to the Bank of (1) any
     litigation or proceeding in which it is a party if an adverse decision
     therein would require it to pay more than $100,000.00 or deliver assets,
     the value of which exceeds such sum (whether or not the claim is considered
     to be covered by insurance); and (2) the institution of any other suit or
     proceeding involving it that might materially and adversely affect its
     operations, financial condition, property, or business prospects.

          E.  The Borrower will pay when due and within any applicable grace
     and/or cure period all of its Indebtedness due third Persons except when
     the amount thereof is being contested in good faith by appropriate
     proceedings and with adequate reserves therefor being set aside on its
     books.

         F.   The Borrower will notify the Bank immediately 1) if it becomes
     aware of the occurrence of any Event of Default or of any fact, condition,
     or event that only with the giving of notice or passage of time, or both,
     could become an Event of Default; 2) if it becomes aware of any material
     adverse change in the business prospects, financial condition (including,
     without limitation, proceedings in bankruptcy, insolvency, or
     reorganization), or results of operations of the Borrower; or 3) upon the
     failure of the Borrower to observe any of its respective undertakings
     hereunder or under any one or more of the Collateral Documents.

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         G.   The Borrower will (1) fund any of its Employee Pension Benefit
     Plans in accordance with no less than the minimum funding standards of 29
     U.S.C. Sec. 1082 (Section 302 of ERISA); (2) furnish the Bank, promptly
     after the filing of the same, with copies of any reports or other
     statements filed with the United States Department of Labor or the Internal
     Revenue Service with respect to any such Plan; and (3) promptly advise the
     Bank of the occurrence of any Reportable Event or Prohibited Transaction
     with respect to any Employee Benefit Plan.

          H.   The Borrower will cause HHT to furnish the Bank:

               1.  Within ninety (90) days after the close of each quarterly
               accounting period in each fiscal year an income statement and
               balance sheet of  HHT for such quarter in reasonable detail,
               subject to normal year-end audit adjustments and certified by
               HHT's president or principal financial officer to have been
               prepared in accordance with GAAP.  Borrower may comply with this
               provision by furnishing a copy of HHT's Form 10-Q, as filed with
               the SEC;

               2.  Within One Hundred Twenty (120) days after the close of each
               fiscal year of HHT: (a) a consolidated statement of shareholder's
               equity and a consolidated statement of cash flow of HHT and any
               subsidiaries for such fiscal year; (b) consolidated and
               consolidating income statements of HHT and any subsidiaries as of
               the end of such fiscal year-all such statements to be in
               reasonable detail, including all supporting schedules and
               comments; the consolidated statements and balance sheets to be
               audited by independent certified public accountants selected by
               HHT and certified by such accountants (with such certification
               directed to Bank, as well as to HHT) to have been prepared in
               accordance with GAAP and to present fairly the consolidated
               financial position and results of operations of HHT and any
               subsidiaries and accompanied by such accountants' opinion thereon
               that such documents have been audited in compliance with the
               American Institute of Certified Public Accounts Statements of
               Auditing standards in effect as of the execution hereof; the Bank
               shall have the right, from time to time, to discuss the affairs
               of HHT directly with such independent certified public
               accountants after notice to HHT and opportunity of HHT to be
               represented at any such discussions. Borrower may comply with
               this provision by furnishing a copy of HHT's Form 10-K, as filed
               with the SEC;

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          I.   HHT will maintain a debt service coverage ratio of 1.5:1. The
     "debt service coverage ratio" of HHT shall be the ratio determined by
     dividing the Adjusted Net Operating Income of HHT for the trailing one-year
     period by the amount of debt service payments (principal and interest)
     required to be made with respect to the properties of HHT. "Adjusted Net
     Operating Income" for HHT shall be determined in accordance with the
     formula for Adjusted Net Operating Income in Section V.B.3.

       The failure of HHT to maintain the above ratio, if not cured as provided
     in Section VI.3.B., shall constitute an Event of Default hereunder.

          J.   HHT will take all necessary steps to preserve its real estate
     investment trust existence and franchises and comply with all present and
     future laws applicable to it in the operation of its business, and all
     material agreements to which it is subject.

          K.   It shall be an Event of Default hereunder if  HHT fails to give
     immediate notice to the Bank of (1) any litigation or proceeding in which
     it is a party, if an adverse decision therein would require it to pay more
     than $100,000.00 or deliver assets, the value of which exceeds such sum,
     unless the claim is covered by insurance; or (2) if there occurs the
     institution of any other suit or proceeding involving HHT that might
     materially and adversely affect its operations,  financial condition,
     property, or business prospects.

     2.   Negative Covenants.  The Borrower does hereby covenant and agree with
the Bank that, so long as any of the Obligations remain unsatisfied or any
commitments hereunder remain outstanding, it will comply at all times with the
following negative covenants, unless the Bank shall otherwise have agreed in
writing.

          A.   The Borrower shall not change its name, enter into any merger
     (except with HHT), consolidation, reorganization or recapitalization, or
     reclassify its capital stock, except where Borrower or HHT is the surviving
     entity;

          B.   Borrower will not further mortgage, pledge, grant, or permit to
     exist a security interest in, or a lien upon, any of the Collateral, except
     for liens in favor of Bank or Permitted Liens;

          C.   Borrower will not become liable, directly or indirectly, as
     Guarantor or otherwise for any obligation of any other Person;

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          D.   Borrower will not make any assignment or transfer of any of its
     Accounts or Inventory, or other than in the ordinary course of business;

          E.   Borrower will form no subsidiary, make no investment in
     (including any assignment of Inventory or other property), or make any loan
     in the nature of an investment to, any Person;

          F.   Borrower will not make any loan or advance to any officer,
     shareholder, director, or employee of the Borrower, except for business
     travel and similar temporary advances in the ordinary course of business,
     other than the E&P Distribution;

          G.   Intentionally omitted.

          H.   Borrower will not redeem, purchase, or retire any partnership
     interests or grant or issue, or purchase or retire for any consideration,
     any warrant, right or option pertaining thereto, or permit any redemption,
     retirement, or other acquisition by Borrower of the ownership of the
     outstanding partnership interest of the Borrower, other than the E&P
     Distribution;

          I.   Borrower shall not furnish the Bank any certificate or other
     document that will contain any untrue statement of material fact or that
     will omit to state a material fact necessary to make it not misleading in
     light of the circumstances under which it was furnished; and

          J.   Borrower will not directly or indirectly apply any part of the
     proceeds of the Obligations to the purchasing or carrying of any "margin
     stock" within the meaning of Regulation U of the Board of Governors of the
     Federal Reserve System, or any regulations, interpretations, or rulings
     thereunder.

Section VI. Default.

     1.   Events of Default. The occurrence of any one or more of the following
events shall constitute an Event of Default hereunder:

          A.   The Borrower shall fail, within any applicable grace or cure
     period,  to perform, or cause HHT to perform, any covenant, promise, or
     payment obligation made in this Agreement or in any of the Collateral
     Documents or in any other agreement with any third Person for the repayment
     of borrowed money.

          B.   The Borrower shall admit its inability to pay its debts as they
     mature or shall make an assignment for the benefit of itself or any of its
     creditors.

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<PAGE>

     2.   Acceleration.  At the option of the Bank upon the occurrence of any
non-monetary Event of Default not cured following thirty (30) days' written
notice to Borrower, or HHT, as the case may be, all Obligations shall
immediately become due and payable.

     3.   Remedies.

          A.   After any acceleration, as provided for in Section VI. 2., the
     Bank shall have, in addition to the rights and remedies given it by this
     Agreement and the Collateral Documents, all those allowed by all applicable
     laws, including, but without limitation, the Uniform Commercial Code as
     enacted in any jurisdiction in which any Collateral may be located. The
     rights of the Bank under this Section VI. 3. are in addition to the other
     rights and remedies (including, without limitation, other rights of set-
     off) which the Bank may have.

          B.   In any instance under this Agreement where Borrower or HHT has
     failed to maintain the ratio specified under Section V.1.B or V.1.I.
     hereof, or if Borrower would otherwise be in default under IV.1.J., such
     failure may be cured by the Borrower substituting or adding Collateral,
     provided that such Collateral is offered Bank within the thirty (30) day
     notice and cure period and such Collateral is determined by Bank within a
     thirty (30) day period thereafter to be of appropriate character, quality
     and value.

Section VII. Miscellaneous

     1.   Construction. Nothing herein contained shall prevent the Bank from
enforcing any or all other guaranty, pledge or security agreements, notes,
mortgages, deeds of trust, other evidences of liability, or other Collateral
Documents in accordance with their respective terms.

     2.   Enforcement and Waiver by the Bank. The Bank shall have the right at
all times to enforce the provisions of this Agreement and the Collateral
Documents in strict accordance with the terms hereof and thereof,
notwithstanding any conduct or custom on the part of the Bank in refraining from
so doing at any time or times. Failure of Bank to enforce its rights under such
provisions, strictly in accordance with the same, shall not be construed as
having created a custom in any way or manner contrary to specific provisions of
this Agreement or as having in any way or manner modified or waived the same.
All rights and remedies of the Bank are cumulative and concurrent and the
exercise of one right or remedy shall not be deemed a waiver or release of any
other right or remedy.

                                       14
<PAGE>

     3.   Substitution of Collateral.  Provided that no default by Borrower has
occurred hereunder and is continuing, Borrower shall have the privilege from
time to time to substitute Collateral, provided that the substituted Collateral
is first determined by Bank, in its sole discretion, to be of appropriate
character, quality and value

     4.   Expense of the Bank.  The Borrower will, on demand, reimburse the Bank
for all expenses, including the reasonable fees and expenses of legal counsel
for the Bank, incurred by the Bank in connection with the preparation
administration, amendment, modification, or enforcement of this Agreement, the
Collateral  Documents, and the collection or attempted collection of the
Obligations.

     5.   Notices.  Any notice or consents required or permitted by this
Agreement shall be in writing and shall be deemed delivered if delivered in
Person or if sent by certified mail, postage prepaid, return receipt requested,
or telegraph, as follows, unless such address is changed by written notice
hereunder:

          A.  If to the Borrower: At the address set forth on Page 1 hereof.
          B.  If to the Bank:     First National Bank of Omaha
                                  One First National Center
                                  Omaha, NE 68102
                                  ATTN: Senior Officer, Mortgage Loan
                                  Department

     6.       Intentionally Omitted.

     7.   Applicable Law. This Agreement is entered into and performable in
Omaha, Douglas County, Nebraska and shall be subject to and construed and
enforced in accordance with the laws of the State of Nebraska.

     8.   Binding Effect, Assignment and Entire Agreement. This Agreement shall
inure to the benefit of, and shall be binding upon, the respective successors
and permitted assigns of the parties hereto. This Agreement, including the
Exhibits hereto, all of which are hereby incorporated herein by reference, and
the documents executed and delivered pursuant hereto, constitute the entire
agreement between the parties and may be amended only by a writing signed on
behalf of each party.

     9.  Severability. If any provision of this Agreement shall be held invalid
under any applicable law, such invalidity shall not affect any other provision
of this Agreement that can be given effect without the invalid provision, and,
to this end, the provisions hereof are severable.

                                       15
<PAGE>

  IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first above written.

                       FIRST NATIONAL BANK OF OMAHA

                       By ______________________________

                       Title____________________________

                       E&P FINANCING LIMITED PARTNERSHIP, A MARYLAND LIMITED
                       PARTNERSHIP

                         BY: E&P REIT TRUST, A MARYLAND REAL ESTATE INVESTMENT
                         TRUST - GENERAL PARTNER

                            By:___________________________________
                               Paul J. Schulte, President

                                       16
<PAGE>

                                  EXHIBIT "A"
                                  -----------

                              Legal Descriptions
                              ------------------

                                 Hays, Kansas

TRACT 1: A tract of land located in the Northwest Quarter (NW/4) of Section
Twenty-Seven (27), Township Thirteen (13) South, Range Eighteen (18) West of the
Sixth (6th) Principal Meridian, Ellis County, Kansas, and more particularly
described as follows:

BEGINNING at a point on West Section line of the above said Section 1332.00 feet
north of the Southwest corner of the Northwest Quarter on a bearing on North 0
degrees 35 minutes 25 seconds East; thence East on a bearing North 90 degrees 00
minutes 00 seconds East parallel to South line a distance of 67.0 feet this
being the point of beginning; thence continuing East on the last described
course, a distance of 150.00 feet; thence North on a bearing of North 0 degrees
35 minutes 35 seconds East a distance of 244.1 feet; thence Northwest on a
bearing of North 75 degrees 59 minutes 25 seconds West a distance of 161.55
feet; thence South on a bearing of South 0 degrees 51 minutes 00 seconds East a
distance of 283.2 feet to the point of beginning.

TRACT 2:  A tract of land in the Northwest Quarter of Section 27, Township 13
South, Range 18 West of the 6th P.M., Ellis County, Kansas, described as
follows:

BEGINNING at the intersection of the North right-of-way line of 37th Street,
City of Hays, and the East line of the existing highway, said point being 68.3
feet East of the West line of said Quarter Section; FIRST COURSE; thence
Northerly along said right-of-way line to a point 1030.4 feet South of the
Northwest corner and 61.3 feet East of the West line of said Quarter Section,
SECOND COURSE, thence Southwesterly 40.0 feet to a point 28.0 feet West of the
last described course; THIRD COURSE, thence South parallel and 28.0 feet West of
said right-of-way line to a point on said North right-of-way line of 37th Street
28.0 feet West of the place of beginning; FOURTH COURSE, thence East to the
place of beginning.

                            Wichita (East), Kansas

PARCEL #1:
Beginning at the Southwest corner of Lot 1, Davis-Moore Addition, Wichita,
Kansas, Sedgwick County, Kansas; thence with an assumed bearing of N 0 degrees
00'E on the West line of said Lot 1, a distance of 75 feet; thence N 54 degrees
47'E on the Northwesterly line of Lot 1, a distance of 389.24 feet to the
Northwest corner of said Lot; thence N 89 degrees 57'38"E on the North line of
said Lot a distance of 67 feet to the centerline of the 20 foot wide private
water

                                       17
<PAGE>

easement as recorded on Film 618, Page 1038; thence S 0 degrees 00'E on said
centerline a distance of 299.51 feet, more or less, to the South line of Lot 1;
thence S 90 degrees 00'W on the south line of said Lot 1, a distance of 385 feet
to the point of beginning.

PARCEL #2:
Easement for the benefit of Parcel #1 as created by instrument dated January 26,
1983 and filed February 15, 1983, on film 567, Page 1344, for ingress and egress
to and from said Parcel #1, over the following described land: Commencing at a
point on the East line of the Northeast quarter of Section 29, Township 27
South, Range 2 East of the Sixth Principal Meridian, Sedgwick County, Kansas,
379.40 feet south of the Northeast corner thereof; thence west, at right angles,
60 feet for a place of beginning; thence south at right angles and parallel with
the East line of said Northeast Quarter, 80 feet; thence west, at right angles,
1040 feet; thence north at right angles, 80 feet; thence east, at right angles,
1040 feet to the place of beginning.

PARCEL #3:
A non-exclusive easement for the benefit of Parcel #1 as created by instrument
dated September 15, 1988, FILED September 16, 1988, on Film 995, Page 220, for
utility lines over the south 20 feet of Lot 1, Davis-Moore Addition, Wichita,
Kansas, Sedgwick County, Kansas, EXCEPT that portion lying within Parcel #1
above.

PARCEL #4:
A non-exclusive easement for the benefit of Parcel #1 as created by instrument
dated September 16, 1988 and filed September 20, 1988, on Film 995, Page 861,
for sanitary sewer over a tract in the Northeast Quarter of Section 29, Township
27 South, Range 2 East of the Sixth Principal meridian, Sedgwick County, Kansas,
described as: Beginning at a point on the northwesterly line of Lot 1, Davis-
Moore Addition, Wichita Kansas, Sedgwick County, Kansas, at a platted bearing of
N 54 degrees 47'E on said Northwesterly line, a distance of 214 feet from the
most Westerly Northwest corner of said Lot; thence N 35 degrees 13'W, 70 feet;
thence N 54 degrees 47'E 15 feet; thence S 35 degrees 13'E, 70 feet, to the
Northwesterly line of said Lot; thence S 54 degrees, 47'W on said Northwesterly
line, 15 feet to the point of beginning.

PARCEL #5:
A non-exclusive easement for the benefit of Parcel #1 as created by instrument
dated July 18, 1985, and filed February 25, 1986, on film 781, Page 372, for
storm water drainage purposes over a tract of land described as follows: the
north 1600 feet of the east 1800 feet of the Northeast Quarter, Section 29,
Township 27 South, Range 2 East of the Sixth Principal Meridian, Sedgwick
County, Kansas, EXCEPT any part of Lot 1, Davis-Moore Addition; East Turnpike
Entrance Addition, East Turnpike Second Addition, and the right-of-ways of U.S.
Highway 54 and Webb Road.

                                       18
<PAGE>

                              Garden City, Kansas

Lots One (1) and Two (2), Block One (1), 83 Commercial Subdivision, to the City
of Garden City, Finney County, Kansas, except the north ten feet (N.10') of Lot
Two (2) which has been deeded to the City of Garden City, Kansas.

                               Manhattan, Kansas

Lot 2, S and B Addition, Unit 2, to the City of Manhattan, Pottawatomie County,
Kansas.

                             Kingdom City, Missouri

All that portion of the Northwest Quarter of section Sixteen (16), Township
Forty-eight (48) North, Range Nine (9) West in Callaway County, Missouri, more
particularly described as follows:

Commencing at the Northwest Corner of Section 16, Township 48 North, Range Nine
(9) West; thence South 26 degrees 03'30" East, 116.2 feet to a point on the
centerline of Interstate 70 at Station 600+29.71; thence South 85 degrees
00'West, 4.86 feet to Interstate Route 70 Centerline Station 600+24.85= U.S.
Route 54 Centerline Station 166+89.89; thence South 3 degrees 50' East, 1222.11
feet to U.S. Route 54 Centerline Station 179+12; thence in an easterly direction
at right angles to said centerline a distance of 145 feet to a found right-of-
way marker; thence along U.S. Rouge 54 right-of-way, South 03 degrees 50'08"
East, 587.12 feet to a right-of-way marker (found); thence South 03 degrees
46'19" East, 107.65 feet to a 1/2 inch iron pipe (found), being the TRUE POINT
OF BEGINNING; thence North 85 degrees 06'32" East, 286.12 feet to a 1/2 inch
iron pipe (set); thence South 03 degrees 50'00" East, 305.82 feet to a 1/2 inch
iron pipe (set); thence South 85 degrees 06'32" West, 286.44 feet to a 1/2 inch
iron pipe (set) on the Easterly right-of-way of U.S. route 54; thence along said
right-of-way North 03 degrees 46'19" West, 305.82 feet to the TRUE POINT OF
BEGINNING. The basis of bearings is the bearing of the centerline of U.S. Route
54 as shown on the Missouri Highway and Transportation plans and is assumed to
be correct.

                                Wayne, Nebraska

Lot 1, in Replat of McCright's First Subdivision to the City of Wayne, Wayne
County, Nebraska; (sometimes also described as Lot 1, McCright's First
Subdivision to the City of Wayne)

And

The North 18 feet of the East 6th Street abutting Lot 1 of the Replat of
McCright's First Subdivision to Wayne, Wayne County, Nebraska, more particularly
described as follows:

                                       19
<PAGE>

Beginning at the Southwest corner of said Lot 1 and assuming the West line of
said replat to have a bearing of South 00 degrees 03'57" East; thence South 00
degrees 03'57" East, 18.00 feet; thence North 89 degrees 57'47" East, 143.37
feet to a point, said point being the start of a 50 foot radius curve concaved
Northwesterly (having a chord bearing of North 44 degrees 57'09" East, and a
chord distance of 70.75 feet); thence North 00 degrees 00'00" East, 18.00 feet
to a point on a 50 foot radius curve concaved Northwesterly (having a chord
bearing of South 44 degrees 57'09" West and a chord distance of 70.75 feet);
thence South 89 degrees 57'47" West, along the South line of said Lot 1, 143.50
feet to the point of beginning.

                            Watertown, South Dakota

Lot No. 6, of the Plat entitled "Jurrens-Schulte Industrial Addition to the City
of Watertown, South Dakota", located in Codington County, South Dakota, and is
according to the recorded plat.

                                Omaha, Nebraska

Lot 1, Empire Park Replat 6, an Administrative Subdivision of Lot 3 and the East
145 feet in width of Lot 4, Empire Park, an Addition to the City of Omaha, as
surveyed, platted and recorded in Douglas County, Nebraska.

                               El Dorado, Kansas

Beginning at a point on the North right-of-way line of K-196 Highway, said point
being 50.4 feet North and 460 feet West of the Southwest corner of the West Half
of the East Half of the Northeast Quarter of Section Numbered 4, Township
Numbered 26 South, Range Numbered 5 East of the 6th P.M., thence West 150 feet
along said right-of-way line; thence North parallel with the West line of
Northeast Quarter a distance of 450 feet, thence East parallel with the South
line of said Northeast Quarter a distance of 150 feet, thence South parallel
with said West line a distance of 450 feet to the point of beginning, in Butler
County, Kansas.

                            Wichita (North), Kansas

Parcel #1:  Lot 3, Block 1, Air Cap Truck Plaza Addition, Sedgwick County,
Kansas.

Parcel #2:  A non-exclusive easement for the benefit of Parcel #1 as created by
the instrument dated November 3, 1994, and recorded November 4, 1994, on Film
1487, Page 286 for ingress and egress purposes over and across the driveway and
parking areas of Lot 1, Block 1, Air Cap Truck Plaza Addition, Sedgwick County,
Kansas.

                                       20
<PAGE>

                                Parsons, Kansas

The West 145 feet of Tract A, Reinhart Subdivision A and vacated street lying
South and adjacent to the above described real estate, all in the City of
Parsons, Labette County, Kansas.

                                       21
<PAGE>

                                SCHEDULE IV.1.F

                            DISCLOSED INDEBTEDNESS
                            ----------------------

                                       22<PAGE>

                                                                  Exhibit 10.32

                FINANCIAL AND ADMINISTRATIVE SERVICES AGREEMENT

     FINANCIAL AND ADMINISTRATIVE SERVICES AGREEMENT made effective as of the
1st day of January, 2000 by and between HUMPHREY HOSPITALITY LIMITED PARTNERSHIP
and E&P FINANCING LIMITED PARTNERSHIP (either party being the "Partnerships"),
HUMPHREY HOSPITALITY TRUST, INC. (the "Company") and HUMPHREY HOSPITALITY
MANAGEMENT, INC., a Maryland corporation (the "Provider").

     WHEREAS, the Partnerships desire to compensate the Provider for services
the Provider renders in the acquisition or disposition of properties on behalf
of the Partnerships;

     WHEREAS, the Partnerships desire to compensate the Provider for services
the Provider renders in the closing of loans, loan renewals, and loan
refinancings approved on behalf of the Partnerships;

     WHEREAS, the Company desires that the Provider provide certain services
with respect to the Company's accounting and administrative requirements;

     WHEREAS, the Partnerships and the Provider are entering into this Financial
and Administrative Services Agreement ("Agreement") to establish a fee structure
regarding such compensation;

     NOW, THEREFORE, in consideration of the mutual covenants and conditions set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

          1.   The Partnerships shall pay the Provider a fee ("Acquisition Fee")
equal to one percent (1%) of the gross sales price of any property purchased by
the Partnerships in exchange for services supplied by the Provider in the
acquisition of such property, including, but not limited to, conducting initial
due diligence and evaluating the prospective property.  For purposes of this
Agreement, the "gross sales price" of a property purchased by the Partnerships
shall include any and all cash payments, assignments of partnership units by the
Partnerships and/or assumptions of debt made by the Partnerships in the
acquisition of the property.

          2.   The Partnerships shall pay the Provider a fee ("Disposition Fee")
equal to one percent (1%) of the gross sales price of any property sold by the
Partnerships.  For purposes of this Agreement, the "gross sales price" of a
property sold by the Partnerships shall include any and all cash payments, the
fair market value of any property received in exchange for the sold property,
and/or assumptions of the
<PAGE>

Partnerships' debt by the purchaser in the disposition of the property, reduced
by assumptions of debt by the Partnerships or any property received in exchange
by the Partnerships.

          3.   The Partnerships shall pay to the Provider a fee ("Financing
Fee") equal to one-quarter percent (0.25%) of the principal amount of debt of
any new loans, refinancings, or renewals approved by the Company on behalf of
the Partnerships.

          4.   The Partnership shall pay to the Provider a fee ("Construction
Management Fee") equal to nine percent (9%) of the costs described below for
services provided in the oversight and coordination of any development,
construction, alteration, purchasing of any budgeted capital item or improvement
project ("Construction Project") undertaken by the Partnerships. The costs on
which the Construction Management Fee is calculated include all third party
hard, including any budgeted costs of furniture, fixtures and equipment, and
soft costs and the allocable costs of any personnel of the Provider specifically
assigned to a Construction Project. The Construction Management Fee shall be
payable thirty days after completion of a Construction Project.

          5.   The Company shall pay the Provider a fee in the amount of One
Million Fifty Thousand Dollars ($1,050,000) per year, effective January 1, 2000
which shall be payable monthly in installments by the tenth day following the
month in which the services are performed (the "Administration Fee"). The
Provider shall have the obligation to: (i) provide accounting services,
including the preparation and submittal of all reports required by the United
States Securities and Exchange Commission and NASDAQ; (ii) prepare and tally
proxy statements; (iii) prepare the Company's monthly income statements; (iv)
prepare and disclose all obligations, bills and checks of the Company; (v)
provide administrative services, including preparing and announcing press
releases and handling investor relation services, such as meetings with analysts
and reporters; (vi) provide tax work papers and audit work papers to the
preparer of the tax returns and financial audit; (vii) provide for the services
of a portfolio manager to review hotel operations; provide short-term and long-
term forecasts to determine which hotels should remain part of the Partnerships'
portfolios and which hotels should be divested from the portfolios, including
analysis of physical, operational, marketing and financial requirements
necessary to maintain a hotel in the portfolio; and provide portfolio analysis
for prospective hotel purchases to determine if prospective hotels should be
added to one of the portfolios; and (viii) provide investor relations services
including the review and comment on the format of reports to be provided by the
Company and the Partnerships to their investors; determine methods for providing
efficient communications and favorable relationships among the Partnerships the
Company and their investors; and develop systems to provide useful, timely and
appropriate information to the investors of the Company and the Partnerships.

          6. The Partnerships shall pay any Acquisition Fee, Disposition Fee, or
Financing Fee to the

                                       2
<PAGE>

Provider in the form of the Partnership Units.  For purposes of this Agreement,
"Partnership Units" are defined as all the Common Partnership Units of the
Partnerships.

          7. The value of a Partnership Unit to be paid to the Provider shall be
based on the value of the Company's REIT Share on (i) the Closing Date of any
property purchased by the Partnerships (in the event of an Acquisition Fee);
(ii) the Closing Date of any property disposed of by the Partnerships (in the
event of a Disposition Fee); or (iii) the Closing Date of any new loan, loan
renewal, or loan refinancing approved on behalf of the Partnerships (in the
event of a Financing Fee). For purposes of this Agreement, "Closing Date" is
defined as the date upon which the property legally changes hands from the
selling party to the purchasing party (in the event of an Acquisition Fee or
Disposition Fee), or the date upon which the loan, loan renewal, or loan
refinancing transaction is funded (in the event of a Financing Fee).

               A REIT Share is defined as a common share of the Company. The
value of the Company's REIT Share shall be based on the average of the daily
market price of a REIT Share for the ten consecutive trading days immediately
preceding the date of such valuation. The market price for each such trading day
shall be: (i) if the REIT Shares are listed or admitted to trading on any
securities exchange or the NASDAQ-National Market System, the sale price,
regular way, on such day, or if no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, on such day, (ii) if
the REIT Shares are not listed or admitted to trading on any securities exchange
or the NASDAQ-National Market System, the last reported sale price on such day
or, if no sale takes place on such day, the average of the closing bid and asked
prices on such day, as reported by a reliable quotation source designated by the
Company; or (iii) if the REIT Shares are not listed or admitted to trading on
any securities exchange or the NASDAQ-National Market System and no such last
reported sale price or closing bid and asked prices are available, the average
of the reported high bid and low asked prices on such day, as reported by a
reliable quotation source designated by the Company, or if there shall be no bid
and asked prices on such day, the average of the high bid and low asked prices,
as so reported, on the most recent day (not more than 10 days prior to the date
in question) for which prices have been so reported; provided that if there are
no bid and asked prices reported during the ten days prior to the date in
question, the value of the REIT Shares shall be determined by mutual agreement
between the Company and the Provider, or, if such mutual agreement cannot be
reached, by an appraiser mutually agreed upon by the Company and the Provider.

               In the event that the parties are unable to agree upon an
appraiser, the Company and the Provider each shall select an appraiser. Each
such appraiser shall complete an appraisal of the fair market value of the REIT
Shares within 20 days of the first attempt at evaluating the REIT Shares, and
the fair market value of the REIT Shares shall be the average of the two
appraisals; provided, however, that if the higher appraisal exceeds the lower
appraisal by more than 20% of the lower appraisal, the two appraisers

                                       3
<PAGE>

shall select a third appraiser who shall complete an appraisal of the fair
market value of the REIT Shares no later than 30 days after the first attempt at
evaluating the REIT Shares. In such case, the fair market value of the REIT
Shares shall be the average of the two appraisals closest in value. The Company
shall pay the costs of all appraisals.

          8. The payment of any Acquisition Fee, Disposition Fee, or Financing
Fee by the Partnerships to the Provider shall be made within sixty (60) days of
the respective Closing Date.

          9.   The Partnerships shall be obligated to the Provider for any
Acquisition Fee, Disposition Fee, Contractor Management Fee, or Financing Fee
for a period of two (2) years, commencing May 25, 2000. The Partnerships shall
be obligated to Provider for an Acquisition Fee, Disposition Fee, or Financing
Fee relating to any contracts for the purchase or sale of property, or any loan
financing commitments, executed, or any Construction Project approved by the
Company, subsequent to May 24, 2000 and prior to May 26, 2002, regardless of the
Closing Date. The Administrative Fee has been in place since January 1, 1996 and
shall continue until terminated by either Company or Provider upon receipt of
thirty (30) days written notice sent to the current business address of the
other party.

          10 . The covenants and agreements contained herein shall be binding
upon and inure to the benefit of the successors and assigns of the respective
parties hereto. Neither party may assign this Agreement without the consent of
the other party.

          11. Each provision of this Agreement shall be considered severable,
and if for any reason any provision that is not essential to the effectuation of
the basic purposes of the Agreement is determined to be invalid and contrary to
any existing or future law, such invalidity shall not impair the operation of or
affect those provisions of this Agreement that are valid.

          12. The waiver of either party of any breach of this Agreement shall
not operate or be construed to be a waiver of any subsequent breach.

          13. This Agreement shall be construed and enforced in accordance with
the laws of the State of Maryland, without regard to principles of conflicts of
law.

                           [Signature Page Follows]

                                       4
<PAGE>

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

WITNESS:                      PARTNERSHIPS:
                              ------------

                              HUMPHREY HOSPITALITY LIMITED PARTNERSHIP
                              By:  Humphrey Hospitality REIT Trust,
                              General Partner

____________________________  By:_____________________________________
                                  Name:_______________________________
                                  Title:______________________________

                              E&P FINANCING LIMITED PARTNERSHIP
                              By:  E&P REIT Trust, General Partner

____________________________  By:_____________________________________
                                  Name:_______________________________
                                  Title:______________________________

                              PROVIDER:
                              --------

                              HUMPHREY HOSPITALITY MANAGEMENT, INC.

____________________________  By:_____________________________________
                                  Name:_______________________________
                                  Title:______________________________

                              COMPANY:
                              -------

                              HUMPHREY HOSPITALITY TRUST, INC.

____________________________  By:_____________________________________
                                  Name:_______________________________
                                  Title:______________________________

                                       5

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