Document:

<PAGE>

          THIS INTERCREDITOR AGREEMENT, dated as of November 20, 2001
("Agreement"), between BEAR, STEARNS FUNDING, INC., a Delaware corporation (in
such capacity, together with its successors and assigns, "Mortgage Lender"), and
SECURITY CAPITAL LODGING INCORPORATED, a Delaware corporation (in such capacity,
together with its successors and assigns, "Mezzanine Lender").

                              W I T N E S S E T H:

          WHEREAS, pursuant to a certain Loan Agreement, dated as of November
20, 2001 (as amended, supplemented or otherwise modified from time to time, the
"Mortgage Loan Agreement"), Mortgage Lender has made a loan in the principal
amount of $400,000,000, (the "Mortgage Loan") to BRE/HV Properties L.L.C, a
Delaware limited liability company ("Mortgage Borrower");

          WHEREAS, pursuant to a certain Term Note dated as of November 20,
2001, (as amended, supplemented or otherwise modified from time to time, the
"Mezzanine Loan Agreement"), a copy of which is attached hereto as Exhibit A.
Mezzanine Lender has made a loan in the principal amount of $115,000,000, (the
"Mezzanine Loan") to BRE/HV Holding L.L.C., a Delaware limited liability company
("Mezzanine Borrower");

          WHEREAS, Mezzanine Borrower has contributed the proceeds of the
Mezzanine Loan to Mortgage Borrower; and

          WHEREAS, neither the Mortgage Lender nor the Mezzanine Lender would
make their respective loans unless the other entered into this Agreement.

          NOW, THEREFORE, in consideration of the mutual promises contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

          1.   Defined Terms. The following terms shall have the meanings herein
               -------------
specified unless the context otherwise requires (such meanings to apply to such
terms in both the singular and plural forms):

          "Affiliate" shall mean, as to any Person, any other Person that,
directly or indirectly, owns more than fifty percent (50%) of, is in control of,
is controlled by or is under common ownership or control with such Person. As
used in this definition, the term "control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management,
policies or activities of a Person, whether through ownership of voting
securities, by contract or otherwise.

          "Applicable Interest Rate" shall have the meaning set forth in the
Mortgage Loan Agreement.

          "Bear, Stearns Funding" shall mean Bear, Stearns Funding, Inc., a
Delaware corporation, and its successors in interest.

<PAGE>

          "Certificates" shall mean any securities representing beneficial
interests in, or debt secured by, the Mortgage Loan or in a pool of mortgage
loans including the Mortgage Loan.

          "Fitch" means Fitch, Inc., and its successors in interest.

          "Mezzanine Event of Default" shall mean an "Event of Default" under
and as defined in the Mezzanine Loan Agreement.

          "Mezzanine Borrower" shall have the meaning assigned to such term in
the recitals.

          "Mezzanine Lender" shall have the meaning assigned to such term in the
recitals.

          "Mezzanine Loan Agreement" shall have the meaning assigned to such
term in the recitals.

          "Mezzanine Loan Documents" shall mean the "Loan Documents," as defined
in the Mezzanine Loan Agreement.

          "Mezzanine Loan Liabilities" shall mean, collectively, all of the
indebtedness, liabilities and obligations of Mezzanine Borrower evidenced by the
Mezzanine Loan Documents and all amounts due or to become due pursuant to the
Mezzanine Loan Documents, including interest thereon and any other amounts
payable in respect thereof or in connection therewith, including, without
limitation, any late charges, default interest, prepayment fees or premiums,
exit fees, advances and post-petition interest.

          "Moody's" means Moody's Investors Service, Inc., and its successors in
interest.

          "Mortgage" shall have the meaning set forth in the Mortgage Loan
Agreement.

          "Mortgage Borrower" shall have the meaning assigned to such term in
the recitals.

          "Mortgage Event of Default" shall mean an "Event of Default" under and
as defined in the Mortgage Loan Agreement.

          "Mortgage Lender" shall have the meaning assigned to such term in the
recitals; if the Mortgage Loan has been split into 2 or more loans, the holder
of each such split loan.

          "Mortgage Loan Agreement" shall have the meaning assigned to such term
in the recitals.

          "Mortgage Loan Documents" shall mean the "Loan Documents," as defined
in the Mortgage Loan Agreement.

          "Mortgage Loan Liabilities" shall mean, collectively, all of the
indebtedness, liabilities and obligations of Mortgage Borrower evidenced by the
Mortgage Loan Documents

                                      -2-

<PAGE>

and all amounts due or to become due pursuant to the Mortgage Loan Documents,
including interest thereon and any other amounts payable in respect thereof or
in connection therewith, including, without limitation, any late charges,
default interest, prepayment fees or premiums, exit fees, advances and
post-petition interest.

          "Person" shall mean any individual, corporation, partnership, limited
liability company, joint venture, estate, trust, unincorporated association, any
other entity, any federal, state, county or municipal government or any bureau,
department or agency thereof and any fiduciary acting in such capacity on behalf
of any of the foregoing.

          "Pledge Agreement" shall mean collectively (a) that certain Pledge
Agreement delivered by Mezzanine Borrower to Mezzanine Lender and (b) that
certain Pledge Agreement delivered by Blackstone Hospitality Acquisition III
L.L.C. to Mezzanine Lender, each in connection with the Mezzanine Loan.

          "Properties" shall have the meaning set forth in the Mortgage Loan
Agreement.

          "Qualified Manager" means (a) the Mezzanine Lender or any Affiliate of
Mezzanine Lender, (b) the existing property manager for the Properties, or (c)
one or more property manager(s) for the Properties each of which (i) is a
reputable management company having at least five (5) years' experience in the
management of hospitality properties similar in use and value as the Properties
and (ii) at the time of its engagement as manager is managing no less than 50
hospitality properties containing no less than 5000 keys.

          "Qualified Transferee" means (a) Bear, Stearns Funding or an Affiliate
of Bear, Stearns Funding, (b) Mezzanine Lender or any Affiliate of Mezzanine
Lender or (c) one or more of the following: (i) a real estate investment trust,
bank, saving and loan association, investment bank, insurance company, trust
company, commercial credit corporation, pension plan, pension fund or pension
advisory firm, mutual fund, government entity or plan, (ii) an investment
company, money management firm or "qualified institutional buyer" within the
meaning of Rule 144A under the Securities Act of 1933, as amended, which is
regularly engaged in the business of making or owning commercial loans or real
estate investments, (iii) a trustee in connection with a securitization of the
Mezzanine Loan, so long as (A) the operative documents of the related
securitization vehicle require that the "controlling class" or "equity interest"
in such securitization are owned by an entity that otherwise would be a
Qualified Transferee, and (B) the special servicer or manager of such
securitization vehicle satisfies the Required Special Servicer Rating, (iv) any
other sophisticated lender or entity (including any opportunity funds) engaged
in the business of making commercial loans or real estate investments, or (v) an
institution substantially similar to any of the foregoing; provided that any
entity described in clauses (i), (ii), (iii), (iv) or (v) of this definition,
together with its Affiliates, must have total assets, in excess of $600,000,000
and capital/statutory surplus or shareholder's equity of $200,000,000. "Rating
Agencies" shall mean, prior to the final Securitization of the Mortgage Loan,
each of Standard & Poor's, Moody's, and Fitch, or any other
nationally-recognized statistical rating agency which has been designated by
Mortgage Lender and, after the final Securitization of the Mortgage Loan, shall
mean any of the foregoing that have rated any of the Certificates.

                                      -3-

<PAGE>

          "Rating Agency Confirmation" shall mean a written affirmation from
each of the Rating Agencies that the credit rating of the Certificates (or any
class thereof) assigned by such Rating Agency immediately prior to the
occurrence of the event with respect to which such Rating Agency Confirmation is
sought will not be qualified, downgraded or withdrawn as a result of the
occurrence of such event.

          "Required Special Servicer Rating" means such special servicer or
manager is acting as special servicer in a commercial mortgage loan
securitization that was rated by the Rating Agencies within the six (6) month
period prior to the date of determination, and such Rating Agencies have not
downgraded or withdrawn the then-current rating on any class of commercial
mortgage securities or placed any class of commercial mortgage securities on
watch citing the continuation of such special servicer or manager as special
servicer of such commercial mortgage securities as the reason for such action.

          "Securitization" shall have the meaning set forth in the Mortgage Loan
Agreement.

          "Standard & Poor's" means Standard & Poor's Ratings Services, a
division of the McGraw Hill Companies, Inc., and its successors in interest.

          "Transfer" means to sell, assign, convey, transfer, mortgage,
encumber, grant a security or other interest in, pledge or otherwise dispose of,
or where used as a noun, a sale, assignment, conveyance, transfer, mortgage,
encumbrance, lien, grant of a security or other interest in, pledge or other
disposition.

          2.   Acquisition of Collateral; Transfer of Mezzanine Loan;
               -----------------------------------------------------
Confirmation.
------------

          (a)  If there are any Certificates outstanding, then, without
receiving a Rating Agency Confirmation, Mezzanine Lender shall not take the
following actions:

          (i)  Transfer any or all of its interest in the Mezzanine Loan to any
     Person other than a Qualified Transferee; and

          (ii) Exercise its rights under the Pledge Agreement to obtain title to
     any of the Collateral (as defined in the Pledge Agreement) or enter into
     any acquisition agreement in lieu of exercise of such remedies unless (A)
     the transferee of the title to the Collateral is a Qualified Transferee,
     (B) the Properties will be managed by a Qualified Manager and within three
     (3) months after such transfer a Rating Agency Confirmation is obtained if
     such Qualified Manager qualifies as a "Qualified Manager" by satisfying
     subsection (c) of the definition for a Qualified Manager, and (C) if the
     facts and assumptions set forth in the non-consolidation opinion for the
     Mortgage Loan in the reasonable opinion of Mortgage Lender have changed and
     if required by the Rating Agencies, the transferee delivers a
     non-consolidation opinion acceptable to the Rating Agencies. No transfer or
     other fee under the Mortgage Loan shall be payable in connection with any
     transfer resulting from the exercise of Mezzanine Lender's remedies under
     the Mezzanine Loan Documents.

                                      -4-

<PAGE>

          (b)  In the event that no Certificates are outstanding and this
Agreement has not terminated in accordance with Section 6 hereof, the Mezzanine
Lender shall be required to obtain the consent of the Mortgage Lender (which
shall not be unreasonably withheld or delayed) prior to taking any action that
would otherwise require a Rating Agency Confirmation pursuant to Section 3(a).
                                                                 ------------

          (c)  In connection with any transfer of the Mezzanine Loan permitted
hereunder, the Mezzanine Lender shall cause any transferee to execute an
assignment and assumption agreement whereby such transferee assumes, from and
after the date of such assignment, all of the obligations of the Mezzanine
Lender hereunder with respect to the Mezzanine Loan (and which will impose no
obligations on the Mortgage Lender other than obligations contained herein), and
to the extent permitted by applicable law, unless an executed assignment and
assumption agreement is delivered to the Mortgage Lender, any such transfer
shall be void ab initio.

          3.   Amendments to Loan Documentation; Mezzanine Borrower
               ----------------------------------------------------
Organizational Documents.
------------------------

          (a)  Notwithstanding any provision in the Mezzanine Loan Documents,
the Mortgage Lender shall have the right to enter into, execute and agree to
modify, amend, consolidate, spread, restate or waive any provision of the
Mortgage Loan Documents without obtaining the consent of Mezzanine Lender,
provided no such modification, amendment, consolidation, spreader, restatement
or waiver shall (i) increase the principal amount secured by the Mortgage Loan,
(ii) increase the interest rate payable under the Mortgage Loan, and provided
that Mortgage Borrower may deliver one or more new component notes to replace
the original note or modify the original note to reflect multiple components of
the Mortgage Loan (and such new notes or modified note shall have the same
initial weighted average spread as the original note, but such new notes or
modified note may subsequently change the weighted average spread and
amortization of the Mortgage Loan, including, without limitation, as a result of
allocation of principal payments between the components in a way other than
pro-rata) or (iii) increase in any other material respect any monetary
obligation of the Mortgage Borrower under the Mortgage Loan. Notwithstanding the
foregoing, any amounts funded by the Mortgage Lender under the Mortgage Loan
Documents as a result of (A) the making of any protective advances or other
advances by Mortgage Lender, including any fees and expenses payable or
reimbursable to any servicer, trustee or fiscal agent and all costs and expenses
incurred by Mortgage Lender in enforcing the terms of the Mortgage Loan
Documents, or (B) interest accruals or accretions and any compounding thereof
(including default interest) shall not at any time be deemed to contravene this
Section 3(a).
------------

          (b)  Notwithstanding any provision in the Mortgage Loan Documents, the
Mezzanine Lender shall have the right to enter into, execute and agree to
modify, amend, consolidate, spread, restate or waive any provision of the
Mezzanine Loan Documents without obtaining the consent of the Mortgage Lender,
provided no such modification, amendment, consolidation, spreader, restatement
or waiver shall (i) increase the principal amount secured by the Mezzanine Loan,
(ii) increase the interest rate payable under the Mezzanine Loan, (iii) provide
for the payment of any additional interest, kicker or similar equity feature,
(iv) shorten the scheduled maturity of the Mezzanine Loan, (v) spread the lien
of the Mezzanine

                                      -5-

<PAGE>

Loan to encumber any additional collateral, (vi) cross-default the Mezzanine
Loan with any other indebtedness, other than the Mortgage Loan or (vii) increase
in any other material respect any monetary obligation of the Mezzanine Borrower
under the Mezzanine Loan. Notwithstanding the foregoing, any amounts funded by
the Mezzanine Lender under the Mezzanine Loan Documents as a result of (A) the
making of any protective advances or other advances by Mezzanine Lender
expressly permitted by the terms of the Mezzanine Loan Documents and this
Agreement, or (B) interest accruals or accretions and any compounding thereof
(including default interest) shall not at any time be deemed to contravene this
Section 3(b).
------------

          (c)  The Mezzanine Lender shall deliver to the Mortgage Lender copies
of any and all modifications, amendments, extensions, consolidations, spreaders,
restatements, alterations, changes or revisions to any one or more of the
Mezzanine Loan Documents, respectively (including, without limitation, any side
letters, waivers or consents entered into, executed or delivered by the
Mezzanine Lender) within five (5) business days after any of such applicable
instruments have been executed by the Mezzanine Lender, as applicable.

          (d)  The Mortgage Lender shall deliver to the Mezzanine Lender copies
of any and all modifications, amendments, extensions, consolidations, spreaders,
restatements, alterations, changes or revisions to any one or more of the
Mortgage Loan Documents, respectively (including, without limitation, any side
letters, waivers or consents entered into, executed or delivered by the Mortgage
Lender) within five (5) business days after any of such applicable instruments
have been executed by the Mortgage Lender, as applicable.

          4.   Notices of Default; Cure Rights of Mezzanine Lender. (a)
               ---------------------------------------------------
Mezzanine Lender shall give Mortgage Lender notice of any Mezzanine Event of
Default and, simultaneously with giving such notices to Mezzanine Borrower,
copies of notices given to Mezzanine Borrower of events that with the passage of
time and failure to cure, would result in the occurrence of a "Default" or
"Event of Default" under the Mezzanine Loan Documents.

          (b)  Mortgage Lender shall give Mezzanine Lender written notice of any
Mortgage Event of Default and, simultaneously with giving such notices to
Mortgage Borrower, copies of notices given to Mortgage Borrower of events that
with the passage of time and failure to cure, would result in the occurrence of
a "Default" or "Event of Default" under the Mortgage Loan Documents. In no event
shall Mortgage Lender accelerate the Mortgage Loan Liabilities or commence any
enforcement action under the Mortgage Loan Documents without providing prior
notice thereof to Mezzanine Lender.

          (c)  If the notice delivered by Mortgage Lender to the Mezzanine
Lender relates to a default by Mortgage Borrower in its obligation to pay money
under the Mortgage Loan Documents (a "Monetary Default"), Mortgage Lender agrees
that Mezzanine Lender shall have the right, but not the obligation, to cure such
Monetary Default within two (2) Business Days after such notice is given in
accordance with Section 7(c) below (the "Monetary Default Cure Period");
                ------------
provided, however, Mezzanine Lender hereby agrees to indemnify, defend and hold
--------  -------
harmless Mortgage Lender for all reasonable costs, expenses, losses,
                                 ----------
liabilities, obligations, damages, penalties, and disbursements imposed on,
incurred by or asserted against Mortgage Lender (including without limitation
any interest on any advances for monthly payments or servicing advances charged
by any servicer, trustee, fiscal agent, whether or not any such entity

                                      -6-

<PAGE>

may be deemed to be the Mortgage Lender) due to or arising from such Monetary
Default Cure Period (but only to the extent such Monetary Default Cure Period
extends later than one (1) Business Day). If the notice delivered by Mortgage
Lender relates to a default by Mortgage Borrower with respect to its failure to
perform any of its other obligations (other than an obligation to pay money)
under the Mortgage Loan Documents (a "Non-Monetary Default"), Mortgage Lender
agrees that Mezzanine Lender shall have the right, but not the obligation, to
cure such Non-Monetary Default within the cure periods set forth in the Mortgage
Loan Documents (the "Non-Monetary Default Cure Period"); provided, however, if
                                                         --------  -------
such Non-Monetary Default is of a nature that cannot be cured within such period
without possession of the Collateral and if curative action was promptly
commenced and is being continuously and diligently pursued by Mezzanine Lender
for so long as (i) Mezzanine Lender makes, or causes to be made, timely payment
of Mortgage Lender's regularly scheduled monthly interest payments under the
Mortgage Loan and any other amounts due under the Mortgage Loan Documents, (ii)
Mezzanine Lender is continuously and diligently exercising its remedies under
the Pledge Agreement, and (iii) during such Non-Monetary Default Cure Period,
there is no material adverse effect to the Mortgage Borrower or the Property as
a result of such Non-Monetary Default, Mezzanine Lender shall be given an
additional period of time as is necessary to obtain title to the Collateral plus
thirty (30) days in addition thereto to cure such Non-Monetary Default.
Notwithstanding anything to the contrary contained in the proviso in the
preceding sentence, Mortgage Lender shall not be prevented from exercising any
of its remedies pursuant to the Mortgage Loan Documents upon the occurrence of a
Non-Monetary Default beyond any Non-Monetary Default Cure Periods provided in
the Mortgage Loan Documents, provided if Mezzanine Lender is proceeding to cure
such Non-Monetary Default in accordance with the previous sentence, Mortgage
Lender agrees not to acquire title to any or all of the Property pursuant to the
Mortgage Loan Documents earlier than ninety (90) days after the date Mortgage
Lender is first entitled to pursue its remedies under the Mortgage Documents.
Upon the cure of the Non-Monetary Default in question by Mezzanine Lender, the
Mortgage Lender shall promptly terminate its remedial actions, including,
without limitation, termination of any foreclosure proceedings and the dismissal
of any receiver, and no Event of Default under the Mortgage Loan Documents shall
be deemed to exist as a result of the applicable Non-Monetary Default. Mortgage
Lender agrees to notify Mezzanine Lender of the commencement of any remedial
actions taken in connection with a Non-Monetary Default and to keep Mezzanine
Lender reasonably informed as to the status of such remedial actions if
Mezzanine Lender has commenced a cure of the applicable Non-Monetary Default in
accordance with this Section 4(c). Mezzanine Lender hereby agrees to indemnify,
defend and hold harmless Mortgage Lender for all reasonable costs, expenses,
losses, liabilities, obligations, damages, penalties, and disbursements imposed
on, incurred by or asserted against Mortgage Lender (including without
limitation any interest on any advances charged by any servicer, trustee, fiscal
agent, whether or not any such entity may be deemed to be the Mortgage Lender)
due to or arising during the Non-Monetary Default Cure Period (but only to the
extent such cure period extends later than the Non-Monetary Default Cure Period
provided in the Mortgage Loan Documents and Mezzanine Lender has commenced
curative action with respect to such Non-Monetary Default).

          (d)  Under no circumstances shall any action taken by the Mezzanine
Lender to cure any default of Mortgage Borrower under the Mortgage Loan
Documents provide the Mezzanine Lender with any claim against Mortgage Borrower
with respect to the Mortgage

                                      -7-

<PAGE>

Loan until the Mortgage Loan is paid in full. No action taken by Mezzanine
Lender in accordance with this Agreement shall excuse performance by Mezzanine
Borrower of its obligations under the Mezzanine Loan Documents and Mezzanine
Lender's rights under the Mezzanine Loan Documents shall not be waived or
prejudiced by virtue of Mezzanine Lender's actions under this Agreement.

          (e)  Notwithstanding anything to the contrary contained in Section
7(c), the Mezzanine Lender's right to cure a Monetary Default shall be limited
to not more than three (3) consecutive months of a Monetary Default Cure Periods
and not more than six (6) Monetary Default Cure Periods for the life of the
Mortgage Loan.

          (f)  The Mezzanine Lender shall indemnify the Mortgage Lender and hold
it harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and related costs, judgments and other costs and expenses resulting
from the Mezzanine Lender's failure to make a cure payment after it has elected
to do so. Such indemnification shall survive any termination of the Agreement.

          5.   Right to Purchase Mortgage Loan. If the Mortgage Loan has been
               -------------------------------
accelerated, or any proceeding to foreclose or otherwise enforce any Mortgage or
other security for the Mortgage Loans has been commenced, upon ten (10) business
days prior written notice to Mortgage Lender, Mezzanine Lender shall have the
right to purchase, in whole but not in part, the Mortgage Loan for a price equal
to the sum of (without duplication) the following: the outstanding principal
balance of the Mortgage Loan together with all accrued interest and other
amounts due thereon (including, without limitation any late charges, default
interest, prepayment fees or premiums, exit fees, advances permitted under the
Mortgage Loan Documents and post-petition interest permitted under the Mortgage
Loan Documents), any taxes, assessments, or insurance premiums and other amounts
advanced by Mortgage Lender, including all costs and expenses incurred by
Mortgage Lender in enforcing the terms of the Mortgage Loan Documents, and any
fees and expenses payable or reimbursable to any servicer, trustee or fiscal
agent (including, without limitation, special servicing, workout and liquidation
fees and interest on advances made by any of them) whether or not any such
entity may be deemed to be the Mortgage Lender (the "Mortgage Loan Purchase
Price"). The Mezzanine Lender agrees that the sale of the Mortgage Loan shall,
if the Mortgage Loan is included in a Securitization at such time, comply with
all requirements of the agreement pursuant to which the Certificates were issued
and that all costs and expenses related thereto shall be paid by the Mezzanine
Lender. Concurrently with payment to the Mortgage Lender of the Mortgage Loan
Purchase Price, Mortgage Lender will execute in favor of Mezzanine Lender or its
designee assignment documentation, in form and substance reasonably acceptable
to Mezzanine Lender, at the sole cost and expense of Mezzanine Lender to assign
the Mortgage Loan and its rights under the Mortgage Loan Documents (without
recourse, representations or warranties, except for representations as to the
outstanding balance of the Mortgage Loan and as to Mortgage Lender's not having
assigned or encumbered its rights in the Mortgage Loan). The right of Mezzanine
Lender to purchase the Mortgage Loan shall automatically terminate (i) upon a
foreclosure sale, sale by power of sale or delivery of a deed in lieu of
foreclosure or (ii) on the fifth business day after the Mortgage Lender or any
servicer on its behalf notifies the Mezzanine Lender of its intention to sell
the Mortgage Loan (and Mortgage Lender shall be required to give an additional

                                      -8-

<PAGE>

notification and the right to purchase shall be restored if the Mortgage Lender
does not enter into a purchase agreement for the Mortgage Loan within forty-five
(45) days of such notice and the purchase is not consummated within one hundred
and twenty (120) days of such notice).

          6.   Termination. This Agreement shall terminate upon the earlier to
               -----------
occur of (i) the full and final payment of all Mortgage Loan Liabilities or the
Mezzanine Loan Liabilities, (ii) the transfer of the Properties by foreclosure
or deed in lieu of foreclosure or (iii) the completion of foreclosure by
Mezzanine Lender of all interests pledged as security for the Mezzanine Loan.

          7.   Miscellaneous.
               --------------

          (a)  Successors and Assigns. This Agreement shall be binding upon, and
               ----------------------
inure to the benefits of, Mezzanine Lender and Mortgage Lender and their
respective successors and assigns, whether immediate or remote.

          (b)  No Waiver by Mortgage Lender or Mezzanine Lender. Mortgage Lender
               ------------------------------------------------
shall not be prejudiced in its rights under this Agreement by any act or failure
to act by Mortgage Borrower or Mezzanine Lender, or any non-compliance of
Mortgage Borrower or Mezzanine Lender with any agreement or obligation,
regardless of any knowledge thereof which Mortgage Lender may have or with which
Mortgage Lender may be charged; and no action of Mortgage Lender permitted
hereunder shall in any way affect or impair the rights of Mortgage Lender and
the obligations of Mezzanine Lender under this Agreement. No delay on the part
of Mortgage Lender in the exercise of any rights or remedies shall operate as a
waiver thereof, and no single or partial exercise by Mortgage Lender of any
right or remedy shall preclude other or further exercise thereof or the exercise
of any other right or remedy; nor shall any modification or waiver of any of the
provisions of this Agreement be binding upon Mortgage Lender except as expressly
set forth in a writing duly signed and delivered on behalf of Mortgage Lender.
Mezzanine Lender shall not be prejudiced in its rights under this Agreement by
any act or failure to act by Mortgage Borrower or Mortgage Lender, or any
non-compliance of Mortgage Borrower or Mortgage Lender with any agreement or
obligation, regardless of any knowledge thereof which Mezzanine Lender may have
or with which Mezzanine Lender may be charged; and no action of Mezzanine Lender
permitted hereunder shall in any way affect or impair the rights of Mezzanine
Lender and the obligations of Mortgage Lender under this Agreement. No delay on
the part of Mezzanine Lender in the exercise of any rights or remedies shall
operate as a waiver thereof, and no single or partial exercise by Mezzanine
Lender of any right or remedy shall preclude other right or remedy; nor shall
any modification or waiver of any of the provisions of this Agreement be binding
upon Mezzanine Lender except as expressly set forth in a writing duly signed and
delivered on behalf of Mezzanine Lender.

          (c)  Notices. All notices, consents, approvals and requests (any of
               -------
the foregoing in a "Notice" required or permitted hereunder or under any other
Loan Document shall be given in writing and shall be effective for all purposes
if (i) hand delivered; (ii) sent by (A) certified or registered United States
mail, postage prepaid, return receipt requested or (B) expedited prepaid
delivery service, either commercial or United States Postal Service, with proof
of attempted delivery, or (iii) sent by telecopier (with advice by telephone to
recipient that a telecopy notice is forthcoming and a machine-generated
confirmation of successful

                                       -9-

<PAGE>

transmission), addressed as follows (or at such other address and Person as
shall be designated from time to time by any party hereto, as the case may be,
in a written notice to the other parties hereto in the manner provided for in
this Section):

          If to Mortgage Lender:        Bear, Stearns Funding, Inc.
                                        245 Park Avenue
                                        New York, New York 10167
                                        Attention: J. Christopher Hoeffel, Vice
                                        President
                                        Facsimile No.: (212) 272-7047

          with a copy to:               Cadwalader, Wickersham & Taft
                                        100 Maiden Lane
                                        New York, New York 10038
                                        Attention: William P. McInerney, Esq.
                                        Facsimile No.: (212) 504-6666

          If to Mezzanine Lender:       Security Capital Lodging Incorporated
                                        125 Lincoln Avenue, Suite 300
                                        Sante Fe, New Mexico 87501
                                        Attention: Jeffrey A. Klopf
                                        Facsimile No.: (505 988-8920

          with a copy to:               Mayer, Brown & Platt
                                        190 South LaSalle Street
                                        Chicago, Illinois 60603
                                        Attention: Edward J. Schneidman
                                        Facsimile No.: (312) 701-7711

A notice shall be deemed to have been given: in the case of hand delivery, at
the time of delivery; in the case of registered or certified mail, when
delivered or the first attempted delivery on a Business Day; in the case of
expedited prepaid delivery, upon the first attempted delivery on a Business Day;
or in the case of telecopy, upon sender's receipt of a machine-generated
confirmation of successful transmission after advice by telephone to recipient
that a telecopy notice is forthcoming.

          (d)  Governing Law; Waiver of Jury Trial. THIS AGREEMENT AND THE
               -----------------------------------
RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. EACH OF THE
PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (e)  Consents to Jurisdiction. Each of the parties hereto irrevocably
               ------------------------
and unconditionally submits to the jurisdiction of the United States District
Court for the Southern District of New York, any court in the State of New York
located in the borough of Manhattan in

                                      -10-

<PAGE>

the city and county of New York, and any appellate court from any thereof, in
any action, proceeding or counterclaim arising out of or relating to this
Agreement or the transactions contemplated hereunder or for recognition or
enforcement of any judgment and each of the parties hereto irrevocably and
unconditionally agrees that all claims in respect of any action, proceeding or
counterclaim arising out of or relating to this Agreement or the transactions
contemplated hereunder may be heard or determined in such New York State court
or, to the extent permitted by law, in such federal court.

          (f)  Captions. The titles and headings of the paragraphs of this
               --------
Agreement have been inserted for convenience of reference only and are not
intended to summarize or otherwise describe the subject matter of the paragraphs
and shall not be given any consideration in the construction of this Agreement.

          (g)  Amendments and Waivers. Neither this Agreement nor any terms
               ----------------------
hereof may be amended, modified or waived other than by a written agreement
executed by the party against which such amendment, modification or waiver is
sought to be enforced. (h) Counterparts. This Agreement may be executed in
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same instrument.

          (i)  Due Authorization. Mortgage Lender and Mezzanine Lender hereby
               -----------------
represent and warrant to each other that the execution, delivery and performance
of this Agreement is within their powers, has been duly authorized by all
necessary action, and does not contravene their organizational documents or any
law or contractual restriction binding upon the parties hereto, and that this
Agreement is the legal, valid and binding obligation of Mortgage Lender and
Mezzanine Lender enforceable against each party in accordance with its terms
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally, and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

          (j)  No Marshalling. Mezzanine Lender hereby waives any equitable
               --------------
right it may have to require that Mortgage Lender marshal any assets of Mortgage
Borrower in favor of Mezzanine Lender, to require the separate sales of any
portion of the Properties or to require that the Mortgage Lender exhaust its
remedies against any portion of the Properties. Mezzanine Lender agrees that,
except with respect to the enforcement of its remedies under the Mezzanine Loan
Documents permitted hereunder, prior to the satisfaction of all Mortgage Loan
Liabilities it shall not acquire, by subrogation or otherwise, any lien, estate,
right or other interest in any portion of the Properties or any other collateral
now securing the Mortgage Loan or the proceeds therefrom that is or may be prior
to, or of equal priority to, any of the Mortgage Loan Documents or the liens,
rights, estates and interests created thereby.

          (k)  Conflict. In the event of any conflict between the terms and
               --------
conditions of the Mortgage Loan Documents and this Agreement, the terms and
conditions of this Agreement shall prevail, as between Mortgage Lender and
Mezzanine Lender, but shall not inure to the benefit of Mortgage Borrower or
Mezzanine Borrower.

                                      -11-

<PAGE>

          IN WITNESS WHEREOF, this Agreement has been executed and delivered as
of the date set forth above.

                                MORTGAGE LENDER:

                                BEAR, STEARNS FUNDING, INC., a Delaware
                                    corporation, as Mortgage Lender

                                By: /s/ Jeffrey N. Lawrie
                                    ---------------------
                                    Name:
                                    Title:

                                MEZZANINE LENDER:

                                SECURITY CAPITAL LODGING
                                    INCORPORATION, a Delaware corporation , or
                                    Mezzanine Lender

                                By: /s/ Jeffrey A. Klopf
                                    --------------------------------------
                                    Name: Jeffrey A. Klopf
                                    Title:Secretary

                                    EXH. B-1<PAGE>

                                                                    Exhibit 10.3

                             HOLDCO PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Agreement") dated as of November 20, 2001
                                  ---------
between BLACKSTONE HOSPITALITY ACQUISITIONS III L.L.C. ("Blackstone") and
SECURITY CAPITAL LODGING INCORPORATED (the "Lender") .

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS, the Lender has agreed to make a loan (the "Loan") in the original
principal amount of $115,000,000 to BRE/HV Holdings L.L.C. ("Holdco") pursuant
to a term note (the "Note") dated the date hereof by Holdco in favor of the
Lender and may from time to time make additional loans pursuant to PIK Notes, as
defined in the Note; and

     WHEREAS, as a condition precedent to such Loan, Blackstone, the sole member
of Holdco, is required to execute and deliver this Agreement to grant a security
interest to the Lender in certain limited liability company membership interests
of Holdco, a wholly-owned subsidiary of Blackstone;

     NOW, THEREFORE, for and in consideration of the Loan and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1.  Definitions. When used herein, (a) the terms used herein and not
         -----------
otherwise defined herein shall have the meanings assigned to such terms in the
Note, and (b) the following terms have the following meanings (such definitions
to be applicable to both the singular and plural forms of such terms):

     Collateral means all property and rights of Blackstone in the Investment
     ----------
Property, the Collection Account, the investments and funds in the Collection
Account and all proceeds, rents, profits and returns in connection therewith.

     Collection Account has the meaning set forth in Section 5.
     ------------------                              ---------

     Default means the occurrence of any of the following events: (a) any Event
     -------
of Default; (b) any representation or warranty of Blackstone herein is untrue in
any material respect; or (c) Blackstone fails to comply with or perform any
covenant or other agreement under this Agreement in any material respect and
such failure shall continue for 30 days after written notice from the Lender.

     Investment Property shall mean all of Blackstone's present or hereafter
     -------------------
acquired right, title and interest in any membership interest in the Pledged
Subsidiary, any and all payments or dividends of whatever kind or character,
whether in cash or other rights or property, at any time made, owing or payable
to Blackstone in respect of or on account of its present or hereafter acquired
interests in the Pledged Subsidiary, whether due or to become due and whether
representing profits, distributions pursuant to any complete or partial
liquidation or withdrawal

<PAGE>

of any interest in any of the foregoing, repayment or other return of capital
contributions, and the right to receive, receipt for, use and enjoy all such
payments and distributions.

     Issuer Agreement shall mean the Limited Liability Company Agreement of the
     ----------------
Pledged Subsidiary.

     Pledged Subsidiary shall mean Holdco, a Delaware limited liability company.
     ------------------

     Secured Obligations means (i) all obligations (monetary or otherwise) of
     -------------------
Holdco to the Lender arising under the Note and the PIK Notes, (ii) all
reasonable and actual expenses and charges, legal or otherwise, incurred by the
Lender in collecting any of such obligations or realizing upon, protecting or
preserving the Collateral or perfecting its interest therein or enforcing the
payment of the obligations of Holdco to the Lender under the Note and the PIK
Notes, and (iii) all advances made by the Lender under the Intercreditor
Agreement dated the date hereof between Bear, Stearns Funding, Inc. and the
Lender.

     UCC shall mean the Uniform Commercial Code as in effect in the State of New
     ---
York from time to time.

     2.    Grant of Security Interest. As security for the payment of all
           --------------------------
Secured Obligations, Blackstone hereby assigns to the Lender, and grants to the
Lender a security interest in and Lien on, the following, whether now or
hereafter existing or acquired:

     (i)   the Investment Property; and

     (ii)  the Collection Account and all investments and funds therein; and

     (iii) all proceeds, rents, profits and returns of and from any of the
           foregoing.

     3.    Warranties. As of the date hereof, Blackstone represents and warrants
           ----------
that:

          (a) no financing statement (other than any which may have been filed
     on behalf of the Lender) covering any of the Collateral is on file in any
     public office;

          (b) Blackstone is and will be the lawful owner of all Collateral, free
     of all Liens and claims whatsoever, other than the Lien hereunder;

          (c) Blackstone is a limited liability company validly organized and
     existing and in good standing under the laws of Delaware and has full power
     and authority and holds all requisite governmental licenses, permits and
     other approvals to enter and to perform its obligations under this
     Agreement;

          (d) no authorization, approval or other action by, no notice to or
     filing with any governmental authority, regulatory body or any other entity
     is required either with respect to the pledge by Blackstone of the
     Collateral pursuant to this Agreement or for the execution, delivery and
     performance of this Agreement by Blackstone, or for the exercise by
     Blackstone of the voting, or other rights provided for in this Agreement;

                                      -2-

<PAGE>

          (e) the copy of the limited liability company agreement of the Pledged
     Subsidiary delivered to the Lender is a true and correct copy and has not
     been altered or amended;

          (f) the chief executive office and principal place of business of
     Blackstone is 345 Park Ave., New York, New York and Blackstone has had no
     other chief executive office or principal place of business in the last six
     months;

          (g) this Agreement is a legal, valid and binding obligation of
     Blackstone, enforceable in accordance with its terms subject to applicable
     bankruptcy, insolvency and similar laws affecting the enforcement of
     creditors' rights and general principles of equity; the execution, delivery
     and performance of this Agreement will not constitute a breach or default
     by Blackstone under the Issuer Agreement; and all consents of any other
     Persons (including, without limitation, the Pledged Subsidiary) which are
     required for the grant or perfection of the Lien hereunder in any
     Collateral or the exercise by the Lender of its rights hereunder have been
     obtained;

          (h) no interest in the Pledged Subsidiary is dealt in or traded on any
     securities exchange or securities market, is a security the terms of which
     expressly provide that it is governed by Article 8 of the Uniform
     Commercial Code as in effect in the State of New York (the "Applicable
     UCC"), constitutes an "investment company security" (as defined under
     Section 8-103(b) or the equivalent thereof of any of the Applicable UCC) or
     is held in a "securities account" (as defined in the Applicable UCC); and

          (i) Blackstone, as the equity member of the Pledged Subsidiary, hereby
     consents to this Agreement notwithstanding any limitations in the Issuer
     Agreement.

     4.    Agreements of Blackstone. Blackstone:
           ------------------------

          (a) will, upon request of the Lender, execute such financing
     statements and other documents (and pay the cost of filing or recording the
     same in all public offices deemed appropriate by the Lender) and do such
     other acts and things, all as the Lender may from time to time reasonably
     request, to establish and maintain a valid perfected Lien on the Collateral
     (free of all other Liens, claims and rights of third parties whatsoever) to
     secure the payment of the Secured Obligations;

          (b) will not agree to any material waiver, amendment or modification
     of the Issuer Agreement without the prior written consent of the Lender,
     not to be unreasonably withheld, delayed or conditioned, (i) except in the
     case of transfers of interests specifically permitted under the Note and
     only so long as the security interest granted hereunder remains in full
     force and effect and (ii) it being agreed that it shall not be unreasonable
     to withhold consent to an amendment or modification of the bankruptcy
     remoteness provisions of the Issuer Agreement;

          (c) will promptly furnish to the Lender in reasonable detail (i)
     written notice of any Lien, encumbrance or claim made or asserted against
     any of the Collateral, and (ii) written notice of the occurrence of any
     other event which would have a material adverse effect on the aggregate
     value of the Collateral or on the Lien created hereunder;

                                      -3-

<PAGE>

          (d) will not sell, lease, assign or permit to exist any Lien on any of
     Blackstone's interests in any Collateral other than Liens in favor of the
     Lender, except in the case of transfers of interests specifically permitted
     under the Note and only so long as the security interest granted hereunder
     remains in full force and effect;

          (e) will pay all documentary, stamp or other taxes or fees owing in
     connection with the Collateral as such become due and payable provided,
     that Blackstone may contest by appropriate legal proceedings, promptly
     initiated and conducted in good faith with due diligence, the amount of any
     tax or fee; and

          (f) will reimburse the Lender for all expenses, including without
     limitation reasonable attorneys' fees and legal expenses, incurred by the
     Lender in seeking to collect or enforce any rights in respect of the
     Collateral during the existence of a Default.

     5.   Distributions, Collections, Collection Account. Upon receipt of a
          ----------------------------------------------
notice from the Lender that a Default has occurred and is continuing (upon which
notice the Pledged Subsidiary is hereby authorized to rely) Blackstone hereby
authorizes and directs the Pledged Subsidiary to make all distributions,
redemption payments and other payments of any kind whatsoever then due or
thereafter to become due to Blackstone in respect of the Collateral directly to
such account, as may be designated in writing by the Lender from time to time
(the "Collection Account"). All distributions or payments in respect of or
      ------------------
constituting a part of the Collateral, any proceeds from any of the foregoing at
any time received by the Lender and all other deposits in the Collection Account
may be retained by the Lender in the Collection Account as additional Collateral
and may at the discretion of the Lender if a Default then exists, at such time
or times as the Lender may deem proper, or, shall at the request of Blackstone,
be applied by the Lender to the reduction of the Secured Obligations, whether or
not the same be then due or the Lender may be otherwise adequately secured;
provided that in any case the Lender shall have full discretion as to the order
of application of any such distribution, payment or proceeds to the Secured
Obligations, if due and payable.

     If a Default then exists and is continuing, the Lender may notify any
parties obligated on any of the Collateral to make payment to the Collection
Account of any amount due or to become due thereunder and enforce collection of
any of the Collateral by suit or otherwise and surrender, release or exchange
all or any part thereof, or compromise or extend or renew for any period
(whether or not longer than the original period) any indebtedness thereunder or
evidenced thereby.

     Upon request by the Lender after the occurrence and during the continuation
of an Event of Default, Blackstone will forthwith, upon receipt, transmit and
deliver to the Collection Account, in the form received, all cash, checks,
drafts and other instruments or writings for the payment of money (properly
endorsed, where required, so that such items may be collected by the Lender)
which may be received by Blackstone after the occurrence and during the
continuation of an Event of Default, at any time in full or partial payment or
otherwise as proceeds of any of the Collateral. Except as the Lender may
otherwise consent in writing, any such items which may be so received by
Blackstone will not be commingled with any of its funds or property, but will be
held separate and apart from its own funds or property and upon express trust
for the Lender until delivery is made to the Lender.

                                      -4-

<PAGE>

     The Lender is authorized, after the occurrence and during the continuation
of a Default, to endorse, in the name of Blackstone, any item, howsoever
received by the Lender, representing any payment on, or other proceeds of, any
of the Collateral; provided, however, that such payment or proceeds shall be
deposited in the Collection Account.

     Blackstone authorizes the Lender to take all action necessary to cause the
Lender to have a first priority security interest in the Collection Account and
all funds and investments therein, including without limitation, causing the
Collection Account to be held in the name of the Lender. Blackstone shall have
no right to withdraw any funds or investments from the Collection Account, until
payment in full of the Secured Obligations.

     Blackstone may from time to time prior to a Default require all or part of
moneys on deposit in the Collection Account to be invested and re-invested into,
and switched between, any Cash Equivalent Investments by giving written notice
(specifying the relevant amount and investment) to the Lender, provided always
that at all times the Lender's security over and in respect of such moneys and
investments is maintained and all proper fees and costs arising out of such
investments are paid by Blackstone.

     The Lender shall apply the proceeds of the realization of any Permitted
Investment:

     (i)  into the Collection Account; or

     (ii) in purchasing other Permitted Investments to be held in the Collection
Account.

     Upon the occurrence of a Default, the Lender shall be authorized to sell
any such investments and apply the proceeds thereof to payment of the Secured
Obligations in such order of application as the Lender may elect.

     6.   Lender's Option to Perform. The Lender may from time to time, during
          --------------------------
an occurrence and continuation of a Default, perform any obligation to be
performed by Blackstone hereunder which Blackstone shall fail to perform and
take any other action which the Lender reasonably deems necessary for the
maintenance or preservation of any of the Collateral or its Lien on the
Collateral. All moneys advanced by the Lender in connection with the foregoing
shall bear interest at the rate per annum applicable under the Note and shall be
repaid together with such interest by Blackstone to the Lender upon the latter's
demand and shall be secured hereby prior to any other indebtedness or obligation
secured hereby, but the making of any such advance by the Lender shall not
relieve Blackstone of any default hereunder.

     Notwithstanding the foregoing except as specifically set forth herein, the
Lender shall have no obligation or liability regarding the Collateral or any
thereof by reason of, or arising out of, this Agreement. This Agreement
constitutes an assignment of the rights of Blackstone described herein with
respect to the Collateral and not an assignment of any duties or obligations of
Blackstone with respect thereto; and the Lender does not undertake to perform or
discharge and shall not be responsible or liable for the performance or
discharge of any such duties or responsibilities. Blackstone hereby agrees to
indemnify and hold the Lender free and harmless from and against any and all
loss, damage, liability, cost and expense, including reasonable attorneys' fees
and costs, incurred by the Lender by reason of the Lender's acceptance of this

                                      -5-

<PAGE>

Agreement or any efforts to impose any liability upon the Lender for the
obligations of Blackstone under the Issuer Agreement.

     7.   Power of Attorney. Blackstone hereby appoints the Lender, with full
          -----------------
power of substitution, as Blackstone's attorney-in-fact for the purpose of
carrying out the provisions of this Agreement during the existence of a Default
or other failure by Blackstone to perform hereunder and taking any action and
executing any instrument which the Lender may deem necessary or advisable to
accomplish the purposes hereof, which appointment is irrevocable and coupled
with an interest. Without limiting the generality of the foregoing, Blackstone
hereby grants the Lender, during the existence of a Default, the power and
right, on behalf of Blackstone, without prior notice to or assent by Blackstone
(but with prompt notice after any of the following), until all of Blackstone's
obligations under this Agreement and the Note are satisfied, to do the
following:

          (a) to collect and otherwise take possession of and title to any and
     all distributions of cash or other property due or distributable at any
     time after the date hereof to Blackstone from the Pledged Subsidiary or in
     respect of any Collateral, whether in complete or partial liquidation or
     otherwise, and to prosecute or defend any action or proceeding in any court
     of law or equity or otherwise deemed appropriate by the Lender for the
     purpose hereof;

          (b) to ask, demand, collect, receive and give acquittances and
     receipts for any and all moneys due and to become due under any Collateral
     and, in the name of Blackstone or its own name or otherwise, to take
     possession of and endorse, sign and collect any checks, drafts, notes,
     acceptances or other instruments for the payment of moneys due under any
     Collateral and to file any claim or to take any other action or proceeding
     in any court of law or equity or otherwise, either in its own name or in
     the name of Blackstone, or otherwise, deemed appropriate by the Lender for
     the purpose of collecting any and all such moneys due under any Collateral
     whenever payable;

          (c) to pay or discharge taxes and Liens levied or placed on or
     threatened against the Collateral; and

          (d) (i) to direct any party liable for any payment under any of the
     Collateral to make payment of any and all moneys due and to become due
     thereunder directly to the Lender; (ii) to receive payment of and receipt
     for any and all moneys, claims and other amounts due and to become due at
     any time in respect of or arising out of any Collateral; (iii) to take
     control of any proceeds of the Collateral; (iv) to commence and prosecute
     any suits, actions or proceedings at law or in equity in any court of
     competent jurisdiction to collect the Collateral or any portion thereof and
     to enforce any other right in respect of any Collateral; (v) to defend any
     suit, action or proceeding brought against Blackstone with respect to any
     Collateral; (vi) to settle, compromise or adjust any suit, action or
     proceeding described above and, in connection therewith, to give such
     discharges or releases as the Lender may deem appropriate; and (vii)
     generally to sell, transfer, or otherwise deal with any of the Collateral
     as fully and completely as though the Lender were the absolute owner
     thereof for all purposes, and to do, at the option of the Lender at
     Blackstone's expense, at any time, or from time to time, all acts and
     things which such

                                      -6-

<PAGE>

     attorney-in-fact reasonably deems necessary to maintain or preserve the
     Collateral and the Lien of the Lender thereon, in order to effect the
     intent of this Agreement, all as fully and effectively as Blackstone might
     do.

Blackstone hereby ratifies, to the extent permitted by law, all that the Lender
shall lawfully do or cause to be done by virtue hereof.

     8.  Default.
         -------

     (a) Whenever a Default exists, the Lender may exercise from time to time
any rights and remedies available to it under applicable law. Without limiting
the foregoing, whenever a Default exists the Lender, in addition to the rights,
powers and authorities to collect the sums assigned hereunder or any other
remedies or rights it may have, (i) shall have the right to cause all or any
part of the interest of Blackstone in the Pledged Subsidiary to be withdrawn and
(ii) shall have all the rights and remedies of a secured party under the UCC and
any other applicable law with respect to the Collateral.

     (b) Whenever a Default exists and until such Default is cured, the Lender
may, by written notice to Blackstone, cause all (i) voting rights, (ii) consent
rights and (iii) powers, in each case of Blackstone arising from or relating to
Blackstone's interest in the Pledged Subsidiary, to thereupon become vested in
the Lender which shall thereafter have the sole and exclusive right and
authority to exercise such voting rights and powers.

     (c) To the extent permitted by applicable law, Blackstone hereby waives the
right to object to the manner or sufficiency of advertising or solicitation of
bids in connection with any sales or other disposition of the Collateral. Any
sale by the Lender may be made at any broker's board or public or private sale,
with or without notice or advertisement (except any notice or advertisement
required by law referred to below), for cash or credit, and for present or
future delivery. At any such public or private sale or other disposition of
Collateral, the Lender may, to the extent permissible under applicable law,
purchase the whole or any part of any Collateral sold, free from any right of
redemption on the part of Blackstone, which right is hereby waived and released.
Blackstone hereby expressly waives, to the fullest extent permitted by
applicable law, any and all notices, advertisements, hearings, or process of law
in connection with the exercise by the Lender of any of its rights and remedies
during the existence of a Default. If any notification of intended disposition
of any of the Collateral is required by law, such notification shall be deemed
reasonably and properly given, if given in the manner set forth in Section 9(b)
below at least 10 days before such disposition, postage prepaid, addressed to
Blackstone either at the address shown below or at any other address of
Blackstone appearing in the records of the Lender. Any proceeds of any
disposition by the Lender of any of the Collateral will be applied by the Lender
to the payment of expenses in connection with the Collateral, including
reasonable attorneys' fees and legal expenses, and any balance of such proceeds
will be applied by the Lender toward the payment of such of the Secured
Obligations, and in such order of application, as the Lender may from time to
time elect; provided that, after such application, the Lender shall account for
the surplus, if any, to Blackstone.

     (d) Blackstone agrees that in any sale of any of the Collateral whenever a
Default exists, the Lender is hereby authorized to comply with any limitation or
restriction in connection

                                       -7-

<PAGE>

with such sale as it may be advised by counsel is necessary in order to avoid
any violation of applicable law (including, without limitation, compliance with
such procedures as may restrict the number of prospective bidders and
purchasers, require that such prospective bidders and purchasers have certain
qualifications, and restrict such prospective bidders and purchasers to persons
who will represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such
Collateral), or in order to obtain any required approval of the sale or of the
purchaser by any governmental regulatory authority or official, and Blackstone
further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner,
nor shall the Lender be liable nor accountable to Blackstone for any discount
allowed by the reason of the fact that such Collateral is sold in compliance
with any such limitation or restriction. In lieu of exercising the power of sale
conferred upon it by this Agreement, the Lender may proceed by a suit or suits
at law or in equity to foreclose and sell the Collateral. Blackstone agrees that
the Lender shall not be liable to Blackstone for any loss in the value of the
Collateral by reason of any delay in the sale of the Collateral.

     (e) In order to sell, dispose or otherwise realize upon the Lien herein
granted and exercise the rights granted the Lender hereunder and under
applicable law, there shall be no obligation on the part of the Lender at any
time to first resort for payment to any guaranty of the Secured Obligations or
any part thereof or to resort to any collateral security, property, Liens or
other rights or remedies whatsoever, and the Lender shall have the right to
enforce the Lien herein granted irrespective of whether or not other proceedings
or steps are pending seeking resort to or realization upon or from any of the
foregoing.

     9.  Security Interest Absolute. All rights of the Lender and the security
         --------------------------
interests granted to the Lender hereunder, and all obligations of Blackstone
hereunder, shall be absolute and unconditional, irrespective of

     (a) any lack of validity of enforceability of the Note,

     (b) the failure of the Lender or any holder of the Note

          (i)   to assert any claim or demand or to enforce any right or remedy
     against Holdco or any other Person under the provisions of the Note, or

          (ii)  to exercise any right or remedy against any other guarantor of,
     or collateral securing, any Secured Obligations,

          (c) any change in the time, manner or place of payment of, or in any
     other term of, all or any of the Secured Obligations or any other
     extension, compromise or renewal of any Secured Obligation,

          (d) any reduction, limitation, impairment or termination of any
     Secured Obligations for any reason, including any claim of waiver, release,
     surrender, alteration or compromise, and shall not be subject to (and
     Blackstone hereby waives any right to or claim of) any defense or setoff,
     counterclaim, recoupment or termination whatsoever by reason of the
     invalidity, illegality, nongenuineness, irregularity, compromise,
     unenforceability of, or any other event or occurrence affecting, any
     Secured Obligations,

                                      -8-

<PAGE>

     (e) any amendment to, rescission, waiver, or other modification of, or any
consent to departure from, any of the terms of the Note,

     (f) any addition, exchange, release, surrender, or non-perfection of any
collateral (including the Collateral), or any amendment to or waiver or release
of or addition to or consent to departure from any guaranty, for any of the
Secured Obligations, or

     (g) any other circumstances which might otherwise constitute a defense
available to, or a legal or equitable discharge of, Holdco, any surety or any
guarantor.

     10. Subrogation, etc. Blackstone will not exercise any rights which it may
         ----------------
acquire by reason of any payment made hereunder, whether by way of subrogation,
reimbursement or otherwise, until the prior payment, in full and in cash, of all
Secured Obligations. Any amount paid to Blackstone on account of any payment
made hereunder prior to the payment in full of all Secured Obligations shall be
held in trust for the benefit of the Lender and shall immediately be paid to the
Lender and credited and applied against the Secured Obligations, whether matured
or unmatured, in accordance with the terms of the Note; provided, however, that
                                                        --------  -------
if

     (a) Blackstone has made payment to the Lender of all or any part of the
Secured Obligations, and

     (b) all Secured Obligations have been paid in full, the Lender agrees that,
at Blackstone's request, the Lender and such holder of the Note will execute and
deliver to Blackstone appropriate documents (without recourse and without
representation or warranty) necessary to evidence the transfer by subrogation to
Blackstone of an interest in the Secured Obligations resulting from such payment
by Blackstone. In furtherance of the foregoing, for so long as any Secured
Obligations remain outstanding, Blackstone shall refrain from taking any action
or commencing any proceeding against Holdco (or its successors or assigns,
whether in connection with a bankruptcy proceeding or otherwise) to recover any
amounts in respect of payments made under this Pledge Agreement to the Lender.

     11. General.
         -------

     (a) The Lender shall be deemed to have exercised reasonable care in the
custody and preservation of any of the Collateral in its possession if it takes
such action for that purpose as Blackstone requests in writing, but failure of
the Lender to comply with any such request shall not of itself be deemed a
failure to exercise reasonable care, and no failure of the Lender to preserve or
protect any rights with respect to such Collateral against prior parties, or to
do any act with respect to the preservation of such Collateral not so requested
by Blackstone, shall be deemed a failure to exercise reasonable care in the
custody or preservation of such Collateral.

                                      -9-

<PAGE>

     (b)   Any notice, request, instruction or other document to be given
hereunder by a party hereto shall be in writing and shall be deemed to have been
given, (a) when received if given in person or by courier or a courier service,
or (b) on the date of transmission if sent by telex, facsimile or other wire
transmission so long as a copy is delivered by overnight courier the next
Business Day:

     (a)   If to Lender, addressed as follows:

           Security Capital Lodging Incorporated
           125 Lincoln Avenue, Suite 300
           Santa Fe, New Mexico 87501
           Attention:   Jeffrey A.  Klopf
           Telephone:   (505) 820-1201
           Facsimile:   (505) 988-8920

           with a copy (which shall not constitute notice) to:

           Mayer, Brown & Platt
           190 South LaSalle Street
           Chicago, Illinois 60603
           Attention:   Edward J.  Schneidman
           Telephone:   (312) 701-7348
           Facsimile:   (312) 701-7711

     (b)   If to Blackstone, addressed as follows:

           Blackstone Hospitality Acquisitions III L.L.C.
           345 Park Avenue, 32nd Floor
           New York, New York 10154
           Attention:   Jonathan D.  Gray
                        Senior Managing Director
           Telephone:   (212) 583-5803
           Facsimile:   (212) 583-5573

           with a copy (which shall not constitute notice) to:

           Simpson Thacher & Bartlett
           425 Lexington Avenue
           New York, New York 10017
           Attention:   Gregory J.  Ressa
           Telephone:   (212) 455-7430
           Facsimile:   (212) 455-2502

     (c)   Blackstone agrees to pay all reasonable and actual expenses
(including, without limitation, reasonable attorney's fees and legal expenses)
paid or incurred by the Lender in endeavoring to collect the Secured
Obligations, or any part thereof, during the existence of a Default and in
enforcing this Agreement against Blackstone during the existence of a Default,
and such obligations will themselves be Secured Obligations.

                                      -10-

<PAGE>

     (d) No delay on the part of the Lender in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
the Lender of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy.

     (e) No release from the Lien created by this Agreement of any part of the
Collateral by the Lender shall in any way alter, vary or diminish the force or
effect of the Lien created by this Agreement against the balance or remainder of
the Collateral.

     (f) This Agreement shall remain in full force and effect until all Secured
Obligations have been paid in full, at which time the Lender shall execute and
deliver to Blackstone all instruments and other documents as may be necessary or
proper to release the Lien on the Collateral which has been granted hereunder.
If at any time all or any part of any payment theretofore applied by the Lender
to any of the Secured Obligations is or must be rescinded or returned by the
Lender for any reason whatsoever (including, without limitation, the insolvency
or bankruptcy of Blackstone), such Secured Obligations shall, for the purposes
of this Agreement, to the extent that such payment is or must be rescinded or
returned, be deemed to have continued in existence, notwithstanding such
application by the Lender, and this Agreement shall continue to be effective or
be reinstated, as the case may be, as to such Secured Obligations, all as though
such application by the Lender had not been made.

     (g) This Agreement shall be construed in accordance with and governed by
the internal laws of the State of New York. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be held
invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

     (h) The rights and privileges of the Lender hereunder shall inure to the
benefit of its successors and assigns.

     (i) This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute one and the same Agreement.

     (j) No amendment to, modification or waiver of, or consent with respect to,
any provision of this Agreement shall in any event be effective unless the same
shall be in writing and signed and delivered by Blackstone and the Lender, and
then any such amendment, modification, waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

     (k) At the option of the Lender, this Agreement, or a carbon, photographic
or other reproduction of this Agreement or of any Uniform Commercial Code
financing statement covering the Collateral or any portion thereof, shall be
sufficient as a Uniform Commercial Code financing statement and may be filed as
such.

                                      -11-

<PAGE>

     (l) The section headings in this Agreement are inserted for convenience of
reference and shall not be considered a part of this Agreement or used in its
interpretation.

     (m) Jurisdictions. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER,
OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE LENDER OR
BLACKSTONE SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE
STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK; BLACKSTONE AND THE LENDER HEREBY EXPRESSLY AND IRREVOCABLY
SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE NEW YORK AND OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF
ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY CONSENT TO PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH OF BLACKSTONE AND THE
LENDER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF
VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY
CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE
EXTENT THAT BLACKSTONE OR THE LENDER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, BLACKSTONE AND THE LENDER
HEREBY IRREVOCABLY WAIVE SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
AGREEMENT.

     (n) Waiver of Jury Trial. BLACKSTONE AND THE LENDER WAIVE ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER
THIS AGREEMENT, AND BLACKSTONE AND THE LENDER AGREE THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT A JURY.

                                      -12-

<PAGE>

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

                           BLACKSTONE HOSPITALITY ACQUISITIONS III L.L.C.

                           By: /s/ Jonathan Gray
                               -------------------------------------------------
                           Name: Jonathan Gray
                           Title: Senior Managing Director

                           SECURITY CAPITAL LODGING INCORPORATED

                           By: /s/ Jeffrey A. Klopf
                               -------------------------------------------------
                           Name: Jeffrey A. Klopf
                           Title: Secretary

                                     CONSENT

     The undersigned BRE/HV Holdings L.L.C. (the "Pledged Subsidiary") hereby
consents to the pledge of membership interests in the Pledged Subsidiary by
Blackstone Hospitality Acquisitions III L.L.C. to Security Capital Lodging
Incorporated ("Lodging") pursuant to the terms of the Pledge Agreement attached
hereto.

     The undersigned further agrees that it shall not unreasonably withhold its
consent upon a transfer under the Pledge Agreement of membership interests of
Blackstone to any transferee and specifically agrees that in the event of a
transfer to Lodging, it hereby consents thereto.

                                     BRE/HV HOLDINGS L.L.C.

                                     By: /s/ Jonathan Gray
                                         --------------------------------------
                                     Title: Senior Managing Director
                                     Dated: November 20, 2001

                                       S-1

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