Document:

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                                                                   EXHIBIT 10.10

                        HOTEL MASTER MANAGEMENT AGREEMENT

                                 BY AND BETWEEN

                            ASHFORD TRS CORPORATION,
                             A DELAWARE CORPORATION

                                       AND

                     REMINGTON LODGING & HOSPITALITY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP

Hotel Master Management Agreement
Ashford TRS Corporation

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                                TABLE OF CONTENTS

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ARTICLE I DEFINITION OF TERMS.....................................................................................1
   1.01     Definition of Terms...................................................................................1

ARTICLE II TERM OF AGREEMENT.....................................................................................11
   2.01     Term.................................................................................................11
   2.02     Actions to be Taken upon Termination.................................................................12
   2.03     Early Termination Rights; Liquidated Damages.........................................................13
   2.04     Substitution of Initial Hotel........................................................................17

ARTICLE III PREMISES.............................................................................................17

ARTICLE IV APPOINTMENT OF MANAGER................................................................................17
   4.01     Appointment..........................................................................................17
   4.02     Delegation of Authority..............................................................................17
   4.03     Contracts, Equipment Leases and Other Agreements.....................................................18
   4.04     Alcoholic Beverage/Liquor Licensing Requirements.....................................................18

ARTICLE V REPRESENTATIONS AND WARRANTIES.........................................................................18
   5.01     Lessee Representations...............................................................................18
   5.02     Manager Representations..............................................................................19

ARTICLE VI OPERATION.............................................................................................20
   6.01     Name of Premises; Standard of Operation..............................................................20
   6.02     Use of Premises......................................................................................21
   6.03     Group Services.......................................................................................21
   6.04     Right to Inspect.....................................................................................22

ARTICLE VII WORKING CAPITAL AND INVENTORIES......................................................................22
   7.01     Working Capital and Inventories......................................................................22
   7.02     Fixed Asset Supplies.................................................................................23

ARTICLE VIII MAINTENANCE, REPLACEMENT AND CHANGES................................................................23
   8.01     Routine and Non-Routine Repairs and Maintenance......................................................23
   8.02     Capital Improvement Reserve..........................................................................24

ARTICLE IX EMPLOYEES.............................................................................................28
   9.01     Employee Hiring......................................................................................28
   9.02     Costs; Benefit Plans.................................................................................29
   9.03     Manager's Employees..................................................................................29
   9.04     Special Projects - Corporate Employees...............................................................29
   9.05     Termination..........................................................................................30
   9.06     Employee Use of Hotel................................................................................30
   9.07     Non-Solicitation.....................................................................................30

ARTICLE X BUDGET, STANDARDS AND CONTRACTS........................................................................31
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   10.01       Annual Operating Budget...........................................................................31
   10.02       Budget Approval...................................................................................31
   10.03       Operation Pending Approval........................................................................32
   10.04       Budget Meetings...................................................................................32

ARTICLE XI OPERATING DISTRIBUTIONS...............................................................................32
   11.01       Management Fee....................................................................................32
   11.02       Accounting and Interim Payment....................................................................33

ARTICLE XII INSURANCE............................................................................................33
   12.01       Insurance.........................................................................................33
   12.02       Replacement Cost..................................................................................35
   12.03       Increase in Limits................................................................................35
   12.04       Blanket Policy....................................................................................35
   12.05       Costs and Expenses................................................................................35
   12.06       Policies and Endorsements.........................................................................35
   12.07       Termination.......................................................................................36

ARTICLE XIII TAXES AND DEBT SERVICE..............................................................................36
   13.01       Taxes.............................................................................................36
   13.02       Debt Service; Ground Lease Payments...............................................................37

ARTICLE XIV BANK ACCOUNTS........................................................................................37

ARTICLE XV ACCOUNTING SYSTEM.....................................................................................38
   15.01       Books and Records.................................................................................38
   15.02       Monthly Financial Statements......................................................................38
   15.03       Annual Financial Statements.......................................................................39

ARTICLE XVI PAYMENT BY LESSEE....................................................................................39
   16.01       Payment of Base Management Fee....................................................................39
   16.02       Distributions.....................................................................................39
   16.03       Payment Option....................................................................................39

ARTICLE XVII RELATIONSHIP AND AUTHORITY..........................................................................41

ARTICLE XVIII DAMAGE, CONDEMNATION AND FORCE MAJEURE.............................................................41
   18.01       Damage and Repair.................................................................................41
   18.02       Condemnation......................................................................................41
   18.03       Force Majeure.....................................................................................42
   18.04       Liquidated Damages if Casualty....................................................................42
   18.05       No Liquidated Damages if Condemnation or Force Majeure............................................43

ARTICLE XIX DEFAULT AND TERMINATION..............................................................................43
   19.01       Events of Default.................................................................................43
   19.02       Consequence of Default............................................................................44
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ARTICLE XX WAIVER AND INVALIDITY.................................................................................44
   20.01       Waiver............................................................................................44
   20.02       Partial Invalidity................................................................................44

ARTICLE XXI ASSIGNMENT...........................................................................................45

ARTICLE XXII NOTICES.............................................................................................45

ARTICLE XXIII SUBORDINATION; NON-DISTURBANCE.....................................................................46
   23.01       Subordination.....................................................................................46
   23.02       Non-Disturbance Agreement.........................................................................47

ARTICLE XXIV PROPRIETARY MARKS; INTELLECTUAL PROPERTY............................................................47
   24.01       Proprietary Marks.................................................................................47
   24.02       Computer Software and Equipment...................................................................47
   24.03       Intellectual Property.............................................................................48
   24.04       Books and Records.................................................................................48

ARTICLE XXV INDEMNIFICATION......................................................................................48
   25.01       Manager Indemnity.................................................................................48
   25.02       Lessee Indemnity..................................................................................49
   25.03       Indemnification Procedure.........................................................................49
   25.04       Survival..........................................................................................50
   25.05       No Successor Liability............................................................................50

ARTICLE XXVI FUTURE HOTELS.......................................................................................50

ARTICLE XXVII GOVERNING LAW VENUE................................................................................51

ARTICLE XXVIII MISCELLANEOUS.....................................................................................51
   28.01       Rights to Make Agreement..........................................................................51
   28.02       Agency............................................................................................51
   28.03       Failure to Perform................................................................................51
   28.04       Headings..........................................................................................52
   28.05       Attorneys' Fees and Costs.........................................................................52
   28.06       Entire Agreement..................................................................................52
   28.07       Consents..........................................................................................52
   28.08       Eligible Independent Contractor...................................................................52
   28.09       Environmental Matters.............................................................................53
   28.10       Equity and Debt Offerings.........................................................................53
   28.11       Estoppel Certificates.............................................................................54
   28.12       Confidentiality...................................................................................54
   28.13       Modification......................................................................................55
   28.14       Counterparts......................................................................................55
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                        HOTEL MASTER MANAGEMENT AGREEMENT

         THIS HOTEL MASTER MANAGEMENT AGREEMENT is made and entered into on this
___ day of __________, 2003, by and between ASHFORD TRS CORPORATION, a Delaware
corporation (hereinafter referred to as "LESSEE"), REMINGTON LODGING &
HOSPITALITY, L.P., a Delaware limited partnership (hereinafter referred to as
"MANAGER"), and for the limited purposes of ARTICLE VIII herein, the Landlords
(defined below).

                                   RECITALS:

         1. Lessee is the tenant under the Leases (defined below) covering those
certain hotel properties, fully equipped with furniture and fixtures, and more
particularly described by address location, franchise name and room number
information, on EXHIBIT "A" attached hereto (the hotels, together with all
ancillary facilities, improvements and amenities set forth on Exhibit A attached
hereto as such exhibit exists as of the date of this Agreement, herein called
the "INITIAL HOTELS").

         2. Lessee desires to retain Manager to manage and operate the Initial
Hotels and any Future Hotels (as defined below), and Manager is willing to
perform such services for the account of Lessee, all as more particularly set
forth in this Agreement.

                                  AGREEMENTS:

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto agree as follows:

                                   ARTICLE I
                               DEFINITION OF TERMS

         1.01 DEFINITION OF TERMS. The following terms when used in this
Agreement shall have the meanings indicated below.

         "ACCOUNTING PERIOD" shall mean a calendar month.

         "AGREEMENT" shall mean this Master Management Agreement, and all
amendments, modifications, supplements, consolidations, extensions and revisions
to this Master Management Agreement approved by Lessee and Manager in accordance
with the provisions hereof.

         "AHT" means Ashford Hospitality Trust, Inc., a Maryland corporation.

         "AMENDMENT" shall have the meaning as set forth in ARTICLE XXVI.

         "ANNUAL OPERATING BUDGET" shall have the meaning as set forth in
SECTION 10.01.

         "AOB OBJECTION NOTICE" shall have the meaning as set forth in SECTION
10.02.

         "APPLICABLE STANDARDS" shall mean standards of operation for the
Premises which are (a) in accordance with the requirements of the applicable
Franchise Agreement, this Agreement

Hotel Master Management Agreement
Ashford TRS Corporation

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and all CCRs affecting the Premises and of which true and complete copies have
been made available by Lessee to Manager, (b) in accordance with applicable
Legal Requirements, (c) in accordance with the terms and conditions of any Hotel
Mortgage or Ground Lease to the extent not otherwise inconsistent with the terms
of this Agreement (to the extent Lessee has made available to Manager true and
complete copies of the applicable loan documents relating to any such Hotel
Mortgage and/or the Ground Leases), (d) in accordance with the Leases (to the
extent Lessee has made available to Manager a true and complete copy thereof),
(e) in accordance with the requirements of any carrier having insurance on the
Hotels or any part thereof (to the extent Manager has been given written notice
of such requirements or policies and/or has coordinated same on behalf of
Lessee), and (f) in accordance with the requirements of Section 856(d)(9)(D) of
the Code for qualifying each of the Hotels as a Qualified Lodging Facility.

         "APPROVAL REQUIREMENT" shall have the meaning as set forth in SECTION
8.02I.

         "BASE MANAGEMENT FEE" shall have the meaning as set forth in SECTION
11.01A.

         "BENEFIT PLANS" shall have the meaning as set forth in SECTION 9.02.

         "BLACK-SCHOLES AMOUNT" shall have the meaning as set forth in SECTION
16.03B.

         "BLACK-SCHOLES MODEL" shall have the meaning as set forth in SECTION
16.03B.

         "BUSINESS DAY" shall mean any day excluding (i) Saturday, (ii) Sunday,
(iii) any day which is a legal holiday under the laws of the States of New York,
Maryland or Texas, and (iv) any day on which banking institutions located in
such states are generally not open for the conduct of regular business.

         "BUDGETED GOP" shall mean the Gross Operating Profit as set forth in
the Annual Operating Budget for the applicable Fiscal Year, as approved by
Lessee and Manager pursuant to ARTICLE X hereof.

         "CCRS" shall mean those certain restrictive covenants encumbering the
Premises recorded in the real property records of the county where such premises
are located, as described in the owner policies of title insurance relating to
such premises, a copy of which are acknowledged received by the Manager.

         "CAPITAL IMPROVEMENT BUDGET" shall have the meaning as set forth in
SECTION 8.02E.

         "CASH MANAGEMENT AGREEMENTS" shall mean agreements, if any, entered
into by Lessee, Landlord and a Holder for the collection and disbursement of any
lease payments by Lessee to Landlord under the applicable Lease with respect to
the applicable Premises, which constitute a part of the loan documents executed
and delivered in connection with any Hotel Mortgage by Landlord.

         "CAPITAL IMPROVEMENT RESERVE" shall have the meaning as set forth in
SECTION 8.02A.

         "CIB OBJECTION NOTICE" shall have the meaning as set forth in SECTION
8.02E.

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         "CPI" means the Consumer Price Index, published for all Urban Consumers
for the U.S. City Average for All Items, 1982-84=100 issued by the Bureau of
Labor Statistics of the United States Department of Labor, as published in the
Wall Street Journal.

         "CODE" shall mean the Internal Revenue Code of 1986, as amended.

         "COMMENCEMENT DATE" shall have the meaning as set forth in SECTION
2.01.

         "COMPETITIVE SET" shall initially mean for each Hotel, the hotels
situated in the same market segment as such Hotel as noted on SCHEDULE 1
attached hereto, which competitive set shall include the applicable Hotel. The
Competitive Set may be changed from time to time by mutual agreement of Lessee
and Manager to reasonably and accurately reflect a set within the market of such
Hotel that is comparable in rate quality and in operation to such Hotel and
directly competitive with such Hotel. The requirements for the Competitive Set
are not applicable to any of the Initial Hotels until after the expiration of
the base 10 year term of this Agreement.

         "CONTRACT(s)" shall have the meaning as set forth in SECTION 4.03.

         "DEBT SERVICE" shall mean actual scheduled payments of principal and
interest, including accrued and cumulative interest, payable by a Landlord with
respect to any Hotel Mortgage.

         "DEDUCTIONS" shall mean the following matters:

         1.       Employee Costs and Expenses (including, Employee Claims but
                  excluding Excluded Employee Claims);

         2.       Administrative and general expenses and the cost of
                  advertising and business promotion, heat, light, power,
                  communications (i.e., telephone, fax, cable service and
                  internet) and other utilities and routine repairs, maintenance
                  and minor alterations pertaining to the Premises;

         3.       The cost of replacing, maintaining or replenishing Inventories
                  and Fixed Asset Supplies consumed in the operation of the
                  Premises;

         4.       A reasonable reserve for uncollectible accounts receivable as
                  reasonably determined by Manager and approved by Lessee (such
                  approval not to be unreasonably withheld);

         5.       All costs and fees of independent accountants, attorneys or
                  other third parties who perform services related to the Hotels
                  or the operation thereof, including, without limitation, an
                  allocation of costs of Manager's in-house corporate counsel
                  who performs legal services directly for the benefit of the
                  Hotels to be allocated on a fair and equitable cost basis as
                  reasonably determined by Manager and approved by Lessee (such
                  approval not to be unreasonably withheld);

         6.       The cost and expense of non-routine technical consultants and
                  operational experts for specialized services in connection
                  with the Premises, including, without

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Ashford TRS Corporation

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                  limitation, an allocation of costs of Manager's corporate
                  staff who may perform special services directly related to the
                  Hotels such as sales and marketing, revenue management,
                  training, property tax services, federal, state and/or local
                  tax services, recruiting, and similar functions or services as
                  set forth in SECTION 9.04, to be allocated on a fair and
                  equitable cost basis as reasonably determined by Manager and
                  approved by Lessee (such approval not to be unreasonably
                  withheld);

         7.       Insurance costs and expenses as provided in ARTICLE XII;

         8.       Real estate and personal property taxes levied or assessed
                  against the Premises by duly authorized taxing authorities and
                  such other taxes, if any, payable by or assessed against
                  Manager or the Premises related to the operation and/or
                  ownership of the Premises;

         9.       Franchise fees, royalties, license fees, or compensation or
                  consideration paid or payable to the Franchisor (as
                  hereinafter defined), or any successor Franchisor, pursuant to
                  a Franchise Agreement (as hereinafter defined);

         10.      The Premises' allocable share of the actual costs and expenses
                  incurred by Manager in providing Group Services as provided in
                  SECTION 6.03 hereof;

         11.      The Management Fee;

         12.      Rental payments made under equipment leases; and

         13.      Other expenses incurred in connection with the maintenance or
                  operation of the Premises not expressly set forth above and
                  authorized pursuant to this Agreement.

         Deductions shall not include: (a) depreciation and amortization, (b)
Debt Service, (c) Ground Lease Payments, or (d) payments allocated or made to
the Capital Improvement Reserve.

         "DESIGNATED FEES" shall have the meaning as set forth in SECTION 16.03.

         "EFFECTIVE DATE" shall mean the date this Agreement is fully executed
and delivered.

         "ELIGIBLE INDEPENDENT CONTRACTOR" shall have the meaning as set forth
in SECTION 28.08.

         "EMERGENCY EXPENSES" shall mean any expenses, regardless of amount,
which, in Manager's reasonable judgment, are immediately necessary to protect
the physical integrity or lawful operation of the Hotels or the health or safety
of its occupants.

         "EMPLOYEE CLAIMS" shall mean any claims (including all fines,
judgments, penalties, costs, litigation and/or arbitration expenses, attorneys'
fees and expenses, and costs of settlement with respect to any such claim) made
by or in respect of an employee or potential hire of Manager against Manager
and/or Lessee which are based on a violation or alleged violation of the
Employment Laws or alleged contractual obligations.

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Ashford TRS Corporation

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         "EMPLOYEE COSTS AND EXPENSES" shall have the meaning as set forth in
SECTION 9.03.

         "EMPLOYEE RELATED TERMINATION COSTS" shall have the meaning as set
forth in SECTION 9.05.

         "EMPLOYMENT LAWS" shall mean all applicable federal, state and local
laws (including, without limitation, any statutes, regulations, ordinances or
common laws) regarding the employment, hiring or discharge of persons.

         "EVENT(s) OF DEFAULT" shall have the meaning set forth in ARTICLE XIX.

         "EXCLUDED EMPLOYEE CLAIMS" shall mean any Employee Claims (a) to the
extent attributable to a substantial violation by Manager of Employment Laws, or
(b) which do not arise from an isolated act of an individual employee but rather
is the direct result of corporate policies of Manager which either encourage or
fail to discourage the conduct from which such Employee Claim arises.

         "EXECUTIVE EMPLOYEES" shall mean each member of the senior executive or
Premises level staff and each department head of the Hotels.

         "EXPIRATION DATE" shall have the meaning as set forth in SECTION 2.01.

         "FF&E" shall have the meaning as set forth in SECTION 8.01.

         "FISCAL YEAR" shall mean the twelve (12) month calendar year ending
December 31, except that the first Fiscal Year and last Fiscal Year of the term
of this Agreement may not be full calendar years.

         "FIXED ASSET SUPPLIES" shall mean supply items included within
"Property and Equipment" under the Uniform System of Accounts, including linen,
china, glassware, silver, uniforms, and similar items.

         "FORCE MAJEURE" shall mean any act of God (including adverse weather
conditions); act of the state or federal government in its sovereign or
contractual capacity; war; civil disturbance, riot or mob violence; terrorism;
earthquake, flood, fire or other casualty; epidemic; quarantine restriction;
labor strikes or lock out; freight embargo; civil disturbance; or similar causes
beyond the reasonable control of Manager.

         "FRANCHISOR" shall mean those certain franchisors and any successor
franchisors selected by Lessee (subject to the terms of the Leases) identified
on EXHIBIT "C" attached hereto (as modified from time to time).

         "FRANCHISE AGREEMENT" shall mean those certain license agreements
between a Franchisor and Lessee and/or Landlord, as applicable, as such license
agreements are amended from time to time, and any other contract hereafter
entered into between Lessee and/or Landlord, as applicable, and such Franchisor
pertaining to the name and operating procedures, systems and standards for the
Hotels, as described on EXHIBIT "C" attached hereto (as modified from time to
time).

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Ashford TRS Corporation

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         "FULL REPLACEMENT COST" shall have the meaning as set forth in SECTION
12.02.

         "FUTURE HOTELS" shall mean any hotel or motel properties leased after
the date hereof by Lessee from Affiliates of the Partnership as more
particularly described in ARTICLE XXVI hereof.

         "GAAP" shall mean generally accepted accounting principles consistently
applied as recognized by the accounting industry and standards within the United
States.

         "GENERAL MANAGER" or "GENERAL MANAGERS" shall have the meanings as set
forth in SECTION 9.07.

         "GOP TEST" shall have the meaning as set forth in SECTION 11.01B.

         "GROSS OPERATING PROFIT" shall mean the actual gross operating profit
of the Premises determined generally in accordance with the Uniform System of
Accounts, consistently applied and consistent with the determination thereof in
the Annual Operating Budget.

         "GROSS OPERATING PROFIT MARGIN" shall mean for any applicable Fiscal
Year, the quotient expressed as a percentage, (i) the numerator of which is the
Gross Operating Profit, and (ii) the denominator of which is Gross Revenues.

         "GROSS REVENUES" shall mean all revenues and receipts of every kind
received from operating the Premises and all departments and parts thereof,
including but not limited to, income from both cash and credit transactions,
income from the rental of rooms, stores, offices, banquet rooms, conference
rooms, exhibits or sale space of every kind, license, lease and concession fees
and rentals (not including gross receipts of licensees, lessees and
concessionaires), vending machines, health club membership fees, food and
beverage sales, wholesale and retail sales of merchandise, service charges, and
proceeds, if any, from business interruption or other loss of income insurance;
provided, however, Gross Revenues shall not include (a) gratuities to the
Premises' employees, (b) federal, state or municipal excise, sales or use taxes
or similar impositions collected directly from customers, patrons or guests or
included as part of the sales prices of any goods or services paid over to
federal, state or municipal governments, (c) property insurance or condemnation
proceeds (excluding proceeds from business interruption or other loss of income
coverage), (d) proceeds from the sale or refinance of assets other than sales in
the ordinary course of business, (e) funds furnished by the Lessee, (f)
judgments and awards other than for lost business, (g) the amount of all
credits, rebates or refunds (which shall be deductions from Gross Revenues) to
customers, patrons or guests, (h) receipts of licensees, concessionaires, and
tenants, (i) payments received at any of the Hotels for hotel accommodations,
goods or services to be provided at other hotels, although arranged by, for or
on behalf of Manager; (j) the value of complimentary rooms, food and beverages,
(k) interest income, (l) lease security deposits, and (m) items constituting
"allowances" under the Uniform System of Accounts.

         "GROUND LEASE PAYMENTS" shall mean payments due under any of the Ground
Leases and payable by Landlord thereunder.

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Ashford TRS Corporation

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         "GROUND LEASES" shall mean any ground lease agreements relating to any
of the Hotels, executed by Landlord with any third party landlords.

         "GROUP SERVICES" shall have the meaning as set forth in SECTION 6.03.

         "HOLDER" shall mean the holder of any Hotel Mortgage and the
indebtedness secured thereby, and such holder's successors and assigns.

         "HOTELS" shall collectively mean the Initial Hotels and any Future
Hotels.

         "HOTEL MORTGAGE" shall mean, collectively, any mortgage or deed of
trust hereafter from time to time, encumbering all or any portion of the
Premises (or the leasehold interest therein), together with all other
instruments evidencing or securing payment of the indebtedness secured by such
mortgage or deed of trust and all amendments, modifications, supplements,
extensions and revisions of such mortgage, deed of trust, and other instruments.

         "HOTEL'S REVPAR YIELD PENETRATION" shall mean, for a Hotel for any
applicable Fiscal Year, (i) such Hotel's actual occupancy rate multiplied by the
actual average daily rate, divided by (ii) the Competitive Set's occupancy rate
multiplied by the Competitive Set's average daily rate for the same Fiscal
Period. The determination of the Competitive Set's occupancy and rate shall be
made by reference to the Smith Travel Research reports or its successor or
comparable market research reports prepared by another nationally recognized
hospitality firm reasonably acceptable to Lessee and Manager.

         "INCENTIVE FEE" shall have the meaning as set forth in SECTION 11.01B.

         "INDEMNIFYING PARTY" shall have the meaning as set forth in SECTION
25.03.

         "Independent Directors" shall mean those directors of AHT who are
"independent" within the meaning of the rules of the New York Stock Exchange or
such other national securities exchange or interdealer quotation system on which
AHT's common stock is then principally traded.

         "INITIAL HOTELS" shall have the meaning as set forth in RECITAL 1.

         "INTELLECTUAL PROPERTY" shall have the meaning as set forth in SECTION
24.03.

         "INVENTORIES" shall mean "INVENTORIES" as defined in the Uniform System
of Accounts, such as provisions in storerooms, refrigerators, pantries and
kitchens, beverages in wine cellars and bars, other merchandise intended for
sale, fuel, mechanical supplies, stationery, and other supplies and similar
items.

         "ISSUING PARTY" shall have the meaning as set forth in SECTION 28.10.

         "KEY EMPLOYEES" shall have the meaning as set forth in SECTION 9.07.

         "LANDLORDS" shall mean the landlords under the Leases as described on
EXHIBIT "C" attached hereto (as amended from time to time).

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         "LEASES" shall mean those certain lease agreements as amended,
modified, supplemented, and extended from time to time, as described on EXHIBIT
"B" attached hereto, executed by Lessee as tenant and the Landlords.

         "LEGAL REQUIREMENTS" shall mean all laws, statutes, ordinances, orders,
rules, regulations, permits, licenses, authorizations, directions and
requirements of all governments and governmental authorities, which now or
hereafter may be applicable to the Premises and the operation of the Hotels.

         "LESSEE" shall have the meaning as set forth in the introductory
paragraph of this Agreement.

         "MANAGEMENT FEE" shall collectively mean the Base Management Fee, the
Incentive Fee, the Project Management Fee, the Market Service Fee, and any other
fees payable to Manager pursuant to the terms of this Agreement.

         "MANAGER" shall have the meaning as set forth in the introductory
paragraph of this Agreement.

         "MANAGER AFFILIATE ENTITY" shall have the meaning as set forth in
ARTICLE XXI.

         "MARKET SERVICE FEES" shall have the meaning as set forth in SECTION
8.02(G).

         "MUTUAL EXCLUSIVITY AGREEMENT" shall mean that certain Mutual
Exclusivity Agreement dated the date hereof among the Partnership, AHT, Manager,
and Remington Hotel Corporation, a Texas corporation.

         "NECESSARY EXPENSES" shall mean any expenses, regardless of amount,
which are necessary for the continued operation of the Hotels in accordance with
Legal Requirements and the Applicable Standards and which are not within the
reasonable control of Manager (including, but not limited to those for taxes,
utility charges, approved leases and contracts, licensing and permits).

         "NET OPERATING INCOME" shall be equal to Gross Operating Profit LESS
(i) all amounts to be paid or credited to the Capital Improvement Reserve, and
(ii) Rental Payments to the extent that such rental payments are not properly
chargeable as an operating expense.

         "NON-DISTURBANCE AGREEMENT" means an agreement, in recordable form in
the jurisdiction in which a Hotel is located, executed and delivered by the
Holder of a Hotel Mortgage or a Landlord, as applicable, (which agreement shall
by its terms be binding upon all assignees of such lender or landlord and upon
any individual or entity that acquires title to or possession of a Hotel
(referred to as a "SUBSEQUENT OWNER"), for the benefit of Manager, pursuant to
which, in the event such holder (or its assignee) or landlord (or its assignee)
or any Subsequent Owner comes into possession of or acquires title to a Hotel,
such holder (and its assignee) or landlord (or its assignee) and all Subsequent
Owners shall (x) recognize Manager's rights under this Agreement, and (y) shall
not name Manager as a party in any foreclosure action or proceeding, and (z)
shall not disturb Manager in its right to continue to manage the Hotels

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pursuant to this Agreement; provided, however, that at such time, (i) this
Agreement has not expired or otherwise been earlier terminated in accordance
with its terms, and (ii) there are no outstanding Events of Default by Manager,
and (iii) no material event has occurred and no material condition exists which,
after notice or the passage of time or both, would entitle Lessee to terminate
this Agreement.

         "NON-ISSUING PARTY" shall have the meaning as set forth in SECTION
28.10.

         "NOTICE" shall have the meaning as set forth in ARTICLE XXII.

         "OPERATING ACCOUNT" shall have the meaning as set forth in ARTICLE XIV.

         "PARTNERSHIP" means Ashford Hospitality Limited Partnership, a Delaware
limited partnership.

         "PAYMENT OPTION REQUEST" shall have the meaning as set forth in SECTION
16.03.

         "PERFORMANCE CURE PERIOD" shall have the meaning as set forth in
SECTION 2.03(b)(i)(2).

         "PERFORMANCE FAILURE" shall have the meaning as set forth in SECTION
2.03(b)(II).

         "PERFORMANCE TEST" shall have the meaning as defined in SECTION
2.03(b)(i).

         "PREDECESSOR MANAGERS" shall have the meaning as set forth in SECTION
25.05.

         "PREMISES" shall mean collectively the Lessee's leasehold interest in
the Hotels and the Sites, as both terms are defined herein, pursuant to the
terms and conditions of the Leases.

         "PRIME RATE" shall have the meaning as set forth in SECTION 28.03.

         "PROJECT MANAGEMENT FEE" shall have the meaning as set forth in SECTION
8.02G.

         "PROJECT RELATED SERVICES" shall have the meaning as set forth in
SECTION 8.02G.

         "PROPERTY SERVICE ACCOUNT" shall have the meaning as set forth in
SECTION 13.02.

         "PROPRIETARY MARKS" shall have the meaning as set forth in SECTION
24.01.

         "PROSPECTUS" shall have the meaning as set forth in SECTION 28.10.

         "QUALIFIED LODGING FACILITY" shall mean a "qualified lodging facility"
as defined in Section 856(d)(9)(D) of the Code and means a "Lodging Facility"
(defined below), unless wagering activities are conducted at or in connection
with such facility by any person who is engaged in the business of accepting
wagers and who is legally authorized to engage in such business at or in
connection with such facility. A "LODGING FACILITY" is a hotel, motel or other
establishment more than one-half of the dwelling units in which are used on a
transient basis, and includes customary amenities and facilities operated as
part of, or associated with, the lodging

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facility so long as such amenities and facilities are customary for other
properties of a comparable size and class owned by other owners unrelated to
AHT.

         "REASONABLE WORKING CAPITAL" shall have the meaning as set forth in
SECTION 16.02.

         "RELATED PERSON" shall have the meaning as set forth in SECTION
28.08(e).

         "RENTAL PAYMENTS" shall mean rental payments made under equipment
leases permitted pursuant to the terms of this Agreement.

         "REVPAR" shall mean the revenue per available room, determined by
taking the actual occupancy rate of the applicable hotel and multiplying such
rate by the actual average daily rate of such hotel.

         "SALE" shall mean any sale, assignment, transfer or other disposition,
for value or otherwise, voluntary or involuntary of Landlord's title (whether
fee or leasehold) in the Hotel, or of a controlling interest therein, other than
a collateral assignment intended to provide security for a loan, and shall
include any such disposition through the disposition of the ownership interests
in the entity that holds such title and any lease or sublease of the Hotel.

         "SITES" shall collectively mean those certain tracts or parcels of land
described in EXHIBIT "B-1" hereto, as amended from time to time.

         "SOFTWARE" shall have the meaning as set forth in SECTION 24.02.

         "STRIKE PRICE" shall have the meaning as set forth in SECTION 16.03.

         "SUBJECT HOTEL" shall have the meaning set forth in SECTION 2.03(b)(i).

         "TARGETED REVPAR YIELD PENETRATION" shall mean the Competitive Set's
REVPAR for the applicable Fiscal Year times 80%.

         "TERM" shall mean the contractual duration of this Agreement, as
defined in SECTION 2.01.

         "TERMINATION" shall mean the expiration or sooner cessation of this
Agreement.

         "TERMINATION DATE" shall have the meaning as set forth in SECTION 2.01.

         "UNIFORM SYSTEM OF ACCOUNTS" shall mean the Uniform System of Accounts
for the Lodging Industry, 9th Revised Edition, as may be modified from time to
time by the International Association of Hospitality Accountants.

         "UNRELATED PERSON" shall have the meaning as set forth in SECTION
28.08(e).

         "WORKING CAPITAL" shall mean the amounts by which current assets exceed
current liabilities as defined by the Uniform System of Accounts which are
reasonably necessary for the day-to-day operation of the Premises' business,
including, without limitation, the excess of

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<PAGE>

change and petty cash funds, operating bank accounts, receivables, prepaid
expenses and funds required to maintain Inventories, over the amount of accounts
payable and accrued current liabilities.

                                   ARTICLE II
                                TERM OF AGREEMENT

         2.01 TERM. The term ("TERM") of this Agreement shall commence on the
"COMMENCEMENT DATE" for each of the Hotels as noted on EXHIBIT "A" attached
hereto and, unless sooner terminated as herein provided, shall continue with
respect to such Hotels until the "Termination Date." For purposes of this
Agreement, the "TERMINATION DATE" for each of the Hotels shall be the earlier to
occur of (i) the Expiration Date applicable to each such Hotels, (ii)
termination at the option of Lessee in connection with the bona fide Sale of one
or more of the Hotels by Landlord or Lessee to an unaffiliated third party as
provided in and subject to the terms of SECTION 2.03(a) hereof, (iii)
termination at the option of Lessee after the Performance Test has not been
satisfied pursuant to and subject to the terms and conditions of SECTION 2.03(b)
below, (iv) termination at the option of Lessee for convenience pursuant to and
subject to the terms and conditions of SECTION 2.03(c) below (and subject to
SECTION 2.03(a) with respect to any sale of the Hotels), or (v) termination by
either Lessee or Manager pursuant to ARTICLE XVIII hereof in connection with a
condemnation, casualty or Force Majeure, subject to the terms thereof. The
"EXPIRATION DATE" with respect to a Hotel shall mean the 10th anniversary of the
Commencement Date applicable to such Hotel, provided that such initial 10-year
term may thereafter be renewed by Manager, at its option, on the same terms and
conditions contained herein, for three (3) successive periods of seven (7)
Fiscal Years each, and thereafter, for a final period of four (4) Fiscal Years;
and provided further, that at the time of exercise of any such option to renew
an Event of Default by Manager does not then exist beyond any applicable grace
or cure period. If at any time of the exercise of any renewal period, Manager is
then in default under this Agreement, then the exercise of the renewal option
will be conditional on timely cure of such default, and if such default is not
timely cured, then Lessee may terminate this Agreement regardless of the
exercise of such renewal period and without the payment of any fee or liquidated
damages. If Manager desires to exercise any such option to renew, it shall give
Lessee Notice to that effect not less than ninety (90) days prior to the
expiration of the then current Term. Notwithstanding the expiration or earlier
termination of the Term, Lessee and Manager agree that the obligations of Lessee
to pay, remit, reimburse and to otherwise indemnify Manager for any and all
expenses and fees incurred or accrued by Manager pursuant to the provisions of
this Agreement prior to the expiration or earlier termination of the Term (or
actually incurred by Manager after the termination) shall survive Termination,
provided such expenses and fees have been incurred consistent with the then
current terms of this Agreement and the applicable Annual Operating Budget,
including, without limitation but only to the extent so consistent, all costs,
expenses and liabilities arising from the termination of the Premises' employees
such as accrued vacation and sick leave, severance pay and other accrued
benefits, employer liabilities pursuant to the Consolidated Omnibus Budget
Reconciliation Act and employer liabilities pursuant to the Worker Adjustment
and Retraining Notification Act. In addition, subject to SECTION 19.02 below and
the foregoing sentence, upon Termination of this Agreement, Lessee and Manager
shall have no further obligations to one another pursuant to this Agreement,
except that SECTION 2.02, obligations to make payments under SECTION 2.03 or

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<PAGE>

SECTION 9.05, SECTION 9.07, the last sentence of SECTION 15.01, obligations to
make payments of termination fees pursuant to ARTICLE XVIII, ARTICLE XXIV,
ARTICLE XXV, ARTICLE XXVII and SECTION 28.12 shall survive Termination.

         2.02 ACTIONS TO BE TAKEN UPON TERMINATION. Upon a Termination of this
Agreement, the following shall be applicable:

         A.       Manager shall, within forty-five (45) days after Termination
                  of this Agreement, prepare and deliver to Lessee a final
                  accounting statement with respect to the Hotels, in form and
                  substance consistent with the statements provided pursuant to
                  SECTION 15.02, along with a statement of any sums due from
                  Lessee to Manager pursuant hereto, dated as of the date of
                  Termination. Within thirty (30) days after the receipt by
                  Lessee of such final accounting statement, the parties will
                  make whatever cash adjustments are necessary pursuant to such
                  final statement. The cost of preparing such final accounting
                  statement shall be a Deduction. Manager and Lessee acknowledge
                  that there may be certain adjustments for which the necessary
                  information will not be available at the time of such final
                  accounting, and the parties agree to readjust such amounts and
                  make the necessary cash adjustments when such information
                  becomes available.

         B.       As of the date of the final accounting referred to in
                  subsection A above, Manager shall release and transfer to
                  Lessee any of Lessee's funds which are held or controlled by
                  Manager with respect to the Hotels, with the exception of
                  funds to be held in escrow pursuant to SECTION 9.05 AND
                  SECTION 12.07. During the period between the date of
                  Termination and the date of such final accounting, Manager
                  shall pay (or reserve against) all Deductions which accrued
                  (but were not paid) prior to the date of Termination, using
                  for such purpose any Gross Revenues which accrued prior to the
                  date of Termination.

         C.       Manager shall make available to Lessee such books and records
                  respecting the Hotels (including those from prior years,
                  subject to Manager's reasonable records retention policies) as
                  will be needed by Lessee to prepare the accounting statements,
                  in accordance with the Uniform System of Accounts, for the
                  Hotels for the year in which the Termination occurs and for
                  any subsequent year. Such books and records shall not include:
                  (i) employee records which must remain confidential pursuant
                  to either Legal Requirements or confidentiality agreements, or
                  (ii) any Intellectual Property.

         D.       Manager shall (to the extent permitted by Legal Requirements)
                  assign to Lessee, or to any other manager employed by Lessee
                  to operate and manage the Hotels, all operating licenses for
                  the Hotels which have been issued in Manager's name; provided
                  that if Manager has expended any of its own funds in the
                  acquisition of any of such licenses, Lessee shall reimburse
                  Manager therefor if it has not done so already.

         E.       Lessee agrees that Hotel reservations and any and all
                  contracts made in connection with Hotel convention, banquet or
                  other group services made by

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<PAGE>

                  Manager in the ordinary and normal course of business
                  consistent with this Agreement, for dates subsequent to the
                  date of Termination and at rates prevailing for such
                  reservations at the time they were made, shall be honored and
                  remain in effect after Termination of this Agreement.

         F.       Manager shall cooperate with the new operator of the Hotels as
                  to effect a smooth transition and shall peacefully vacate and
                  surrender the Hotels to Lessee.

         G.       Manager and Lessee agree to use best efforts to resolve any
                  disputes amicably and promptly under this SECTION 2.02 to
                  effect a smooth transition of the Hotels to Lessee and/or
                  Lessee's new manager.

         2.03 EARLY TERMINATION RIGHTS; LIQUIDATED DAMAGES.

                  (a) TERMINATION UPON SALE. Upon Notice to Manager, Lessee
         shall have the option to terminate this Agreement with respect to one,
         more or all of the Hotels effective as of the closing of the Sale of
         such Hotels to a third party. Such Notice shall be given at least
         forty-five (45) days' in advance (unless otherwise required by Legal
         Requirements, in which case Lessee shall provide such additional notice
         in order to comply with such Legal Requirements) and shall inform
         Manager of the identity of the contract purchaser. Manager, at its
         election, may offer to provide management services to such contract
         purchaser after the closing of the sale. Lessee shall, in connection
         with such Sale, by a separate document reasonably acceptable to Lessee
         and Manager, indemnify and save Manager harmless against any and all
         losses, costs, damages, liabilities and court costs, claims and
         expenses, including, without limitation, reasonable attorneys' fees
         arising or resulting from the failure of Lessee or such prospective
         purchaser to provide any of the services contracted for in connection
         with the business booked for such hotels to, and including, the date of
         such Termination, in accordance with the terms of this Agreement,
         including without limitation, any and all business so booked as to
         which facilities and/or services are to be furnished subsequent to the
         date of Termination, provided that any settlement by Manager of any
         such claims shall be subject to the prior written approval of Lessee
         which shall not be unreasonably withheld, conditioned or delayed. In
         addition, the following terms shall apply in connection with the sale
         of any Hotel:

                           (i) SALE OF FUTURE HOTEL. If this Agreement is
                  terminated pursuant to SECTION 2.03(a) with respect to any of
                  the Future Hotels prior to the first anniversary of the
                  Commencement Date applicable to such Future Hotel, then Lessee
                  shall pay to Manager on such termination, a termination fee as
                  liquidated damages and not as a penalty (provided that an
                  Event of Default by Manager is not then existing beyond any
                  cure or grace periods set forth in this Agreement) in an
                  amount equal to the estimated Base Management Fee and
                  Incentive Fee that was estimated to be paid to Manager with
                  respect to the Hotels pursuant to the Annual Operating Budget
                  for the remaining Accounting Periods until the first
                  anniversary of the Commencement Date for such Future Hotel
                  (irrespective of the Management Fees paid to Manager prior to
                  the date of the Termination with respect to the Hotels). If
                  this Agreement is terminated pursuant to SECTION 2.03(a) with
                  respect to any of the Future Hotels after the first
                  anniversary of the

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<PAGE>

                  Commencement Date applicable to such Future Hotel, then no
                  termination fees shall be payable by Lessee.

                           (ii) SALE OF INITIAL HOTEL. If this Agreement is
                  terminated pursuant to SECTION 2.03(a) with respect to any of
                  the Initial Hotels prior to the expiration of the base 10-year
                  term of this Agreement applicable to such Initial Hotel, then
                  Lessee shall pay to Manager on such termination, a termination
                  fee as liquidated damages and not as a penalty (provided that
                  an Event of Default by Manager is not then existing beyond any
                  cure or grace periods set forth in this Agreement), an amount
                  equal to the sum obtained by multiplying (1) the aggregate
                  Base Management Fees and Incentive Fees budgeted in the Annual
                  Operating Budget applicable to such Initial Hotel(s) for the
                  full current Fiscal Year in which such termination is to occur
                  (but in no event less than the Base Management Fees and
                  Incentive Fees for the preceding full Fiscal Year) by (2) the
                  number of years remaining in the base 10-year Term of this
                  Agreement applicable to such Initial Hotel(s). Notwithstanding
                  the foregoing, if this Agreement is terminated pursuant to
                  SECTION 2.03(a) with respect to any of the Initial Hotels
                  after the base 10-year term of this Agreement applicable to
                  such Initial Hotel, then no termination fees shall be payable
                  by Lessee.

                  (b) TERMINATION DUE TO FAILURE TO SATISFY PERFORMANCE TEST.

                           (i) PERFORMANCE TEST. Lessee shall have the right to
                  terminate this Agreement with respect to any Initial Hotel
                  after the base 10-year term of this Agreement applicable to
                  such Initial Hotel and any Future Hotel (for the purposes of
                  this SECTION 2.03(b)(i) called "SUBJECT HOTEL"), subject to
                  the payment of a termination fee as set forth in subsection
                  (ii) below, in the event of the occurrence of the following
                  (collectively herein called, the "PERFORMANCE TEST"):

                                    (1) If, commencing with Fiscal Year 2004,
                           and for each Fiscal Year thereafter (a) a Subject
                           Hotel's Gross Operating Profit Margin for such Fiscal
                           Year is less than seventy-five percent (75%) of the
                           average Gross Operating Profit Margin of comparable
                           hotels in similar markets and geographic locations to
                           the applicable Hotel as reasonably determined by
                           Lessee and Manager, and (b) such Subject Hotel's
                           REVPAR Yield Penetration is less than the Targeted
                           REVPAR Yield Penetration for such Fiscal Year (herein
                           (a) and (b) collectively called "PERFORMANCE
                           FAILURE"); then

                                    (2) Manager shall have a period of two (2)
                           years, commencing with the next ensuing Fiscal Year
                           (the "PERFORMANCE CURE PERIOD"), to cure the
                           Performance Failure after Manager's receipt of Notice
                           from Lessee of such Performance Failure and Lessee's
                           intent to terminate this Agreement with respect to
                           the Subject Hotel if the Performance Failure is not
                           cured within such Performance Cure Period; and

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<PAGE>

                                    (3) If after the first full Fiscal Year
                           during the Performance Cure Period, the Performance
                           Failure remains uncured, then upon written Notice to
                           Manager by Lessee, Manager shall engage a consultant
                           reasonably acceptable to Manager and Lessee (with
                           significant experience in the hotel lodging industry)
                           to make a written determination (within forty-five
                           (45) days of such Notice) as to whether another
                           management company (with comparable breadth of
                           knowledge and experience as any of the hotel
                           management companies owned and/or controlled by
                           Archie Bennett, Jr. and/or Monty Bennett, including
                           with respect to number and type of hotels managed in
                           similar markets and geographical areas) could manage
                           the Subject Hotel in a materially more efficient
                           manner. If such consultant determination is in the
                           negative, then Manager will be deemed not to be in
                           default under the Performance Test. If such
                           consultant determination is in the affirmative, then
                           Manager agrees to engage such consultant (such cost
                           and expense to be shared by Lessee and Manager
                           equally) to assist Manager during the second Fiscal
                           Year of the Performance Cure Period with the cure of
                           the Performance Failure; and

                                    (4) If after the end of the Performance Cure
                           Period, the Performance Failure remains uncured and
                           the consultant again makes a written determination
                           that another management company (with comparable
                           breadth of knowledge and experience as any of the
                           hotel management companies owned and/or controlled by
                           Archie Bennett, Jr. and/or Monty Bennett, including
                           with respect to number and type of hotels managed in
                           similar markets and geographical areas) could manage
                           the Subject Hotel in a materially more efficient
                           manner, then Lessee may, at its election, terminate
                           this Agreement upon forty-five (45) days' prior
                           Notice to Manager.

                           (ii) TERMINATION FEES. If Lessee elects to terminate
                  this Agreement with respect to a Subject Hotel for failure to
                  satisfy the Performance Test, Lessee shall pay to Manager as
                  liquidated damages but not as a penalty, a termination fee
                  (provided that there does not then exist an Event of Default
                  by Manager under this Agreement beyond any applicable cure
                  periods) in the amount equal to 60% of the product obtained by
                  multiplying (A) 65% of the aggregate Base Management Fees and
                  Incentive Fees budgeted in the Annual Operating Budget
                  applicable to the Subject Hotel for the full current Fiscal
                  Year in which such termination is to occur (but in no event
                  less than the Base Management Fees and Incentive Fees for the
                  preceding full Fiscal Year) by (B) nine (9).

                           (iii) FINANCE REPORTS. Determinations of the
                  performance of the Subject Hotel shall be in accordance with
                  the audited annual financial statements delivered by Lessee's
                  accountant pursuant to SECTION 15.03 hereof.

                           (iv) EXTENSION OF PERFORMANCE CURE PERIOD.
                  Notwithstanding the foregoing, if at any time during the
                  Performance Cure Period (a) Lessee is in material default
                  under any of its obligations under this Agreement, or (b)
                  Lessee

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<PAGE>

                  has terminated, terminates or causes a termination of the
                  Franchise Agreement (other than defaults due to Manager) and
                  does not obtain a new franchise agreement with a comparable
                  franchisor, or (c) the operation of the Hotel or the use of
                  the Hotel's facilities are materially disrupted by casualty,
                  condemnation, or events of Force Majeure that are beyond the
                  reasonable control of Manager, or by major repairs to or major
                  refurbishment of the Hotel, then, for such period, the
                  Performance Cure Period shall be extended.

                           (v) RENEWAL PERIOD. If at the time of Manager's
                  exercise of a renewal period with respect to any Hotel, such
                  hotel is a Subject Hotel within a Performance Cure Period, the
                  exercise of such renewal period shall be conditional upon
                  timely cure of the Performance Failure, and if such
                  Performance Failure is not timely cured, then, notwithstanding
                  the foregoing provisions, Lessee may elect to terminate this
                  Agreement with respect to such Subject Hotel pursuant to the
                  terms of this SECTION 2.03(b) without payment of any
                  termination fee.

                  (c) TERMINATION FOR CONVENIENCE. Lessee may terminate this
         Agreement for convenience (except if due to a Sale of a Hotel,
         whereupon SECTION 2.03(a) shall govern) upon ninety (90) days Notice to
         Manager, and shall pay to Manager as liquidated damages but not as a
         penalty, a termination fee (provided that there does not then exist an
         Event of Default by Manager under this Agreement beyond any applicable
         cure or grace periods) in an amount equal to the product of (1) 65% of
         the aggregate Base Management Fees and Incentive Fees budgeted in the
         Annual Operating Budget applicable to the Hotels for the full current
         Fiscal Year in which such termination is to occur (but in no event less
         than the Base Management Fees and Incentive Fees for the preceding full
         Fiscal Year) by (2) nine (9).

                  (D) PAYMENT OF LIQUIDATED DAMAGES. WITH RESPECT TO ANY
         TERMINATION FEES PAYABLE IN CONNECTION WITH ANY EARLY TERMINATION RIGHT
         SET FORTH IN THIS SECTION 2.03, OR IN SECTION 18.04 BELOW, LESSEE
         RECOGNIZES AND AGREES THAT, IF THIS AGREEMENT IS TERMINATED WITH
         RESPECT TO ANY OF THE HOTELS FOR THE REASONS SPECIFIED IN THIS SECTION
         2.03 OR IN SECTION 18.04 BELOW, THEREBY ENTITLING MANAGER TO RECEIVE
         THE TERMINATION FEES AS SET FORTH IN THIS SECTION 2.03 OR IN SECTION
         18.04 BELOW, MANAGER WOULD SUFFER AN ECONOMIC LOSS BY VIRTUE OF THE
         RESULTING LOSS OF MANAGEMENT FEES WHICH WOULD OTHERWISE HAVE BEEN
         EARNED UNDER THIS AGREEMENT. BECAUSE SUCH FEES VARY IN AMOUNT DEPENDING
         ON THE TOTAL GROSS REVENUES EARNED AT THE HOTELS AND ACCORDINGLY WOULD
         BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN WITH CERTAINTY, THE
         PARTIES AGREE THAT THE TERMINATION FEES PROVIDED IN THIS SECTION 2.03
         AND IN SECTION 18.04 BELOW CONSTITUTE A REASONABLE ESTIMATE OF
         LIQUIDATED DAMAGES TO MANAGER FOR PURPOSES OF ANY AND ALL LEGAL
         REQUIREMENTS, AND IT IS AGREED THAT MANAGER SHALL NOT BE ENTITLED TO
         MAINTAIN A CAUSE OF ACTION AGAINST LESSEE,

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<PAGE>

         EXCEPT AS SPECIFICALLY PROVIDED HEREIN, FOR ACTUAL DAMAGES IN EXCESS OF
         THE TERMINATION FEES IN ANY CONTEXT WHERE THE TERMINATION FEES ARE
         PROVIDED BY THIS AGREEMENT, AND RECEIPT OF SUCH FEES (TOGETHER WITH ALL
         OTHER AMOUNTS DUE AND PAYABLE BY LESSEE TO MANAGER WITH RESPECT TO
         EVENTS OCCURRING PRIOR TO TERMINATION OF THIS AGREEMENT WITH RESPECT TO
         THE APPLICABLE HOTELS OR AS OTHERWISE PROVIDED HEREIN) SHALL BE
         MANAGER'S SOLE REMEDY FOR DAMAGES AGAINST LESSEE IN ANY SUCH CASE. The
         foregoing shall in no way affect any other sums due Manager under this
         ARTICLE II or otherwise hereunder, including, without limitation, the
         Management Fees earned during the Term, or any other rights or
         remedies, at law or in equity of Manager under this Agreement or under
         Legal Requirements, including any indemnity obligations of Lessee to
         Manager under this Agreement.

         2.04 SUBSTITUTION OF INITIAL HOTEL. Notwithstanding the foregoing, in
the event of a termination of this Agreement with respect to an Initial Hotel
and in connection with such termination, a termination fee becomes payable by
Lessee, Lessee may (in its sole and absolute discretion) avoid payment of such
termination fee by substituting for the terminated Initial Hotel within 120 days
of such termination, another hotel facility reasonably comparable in size,
number of rooms, quality of franchise operation, market and geographical
location, and gross revenues, to be governed by the terms and conditions of this
Agreement as an "INITIAL HOTEL" from and after the date of such substitution,
and this Agreement shall be amended accordingly pursuant to a form of amendment
similar to EXHIBIT "E" attached hereto.

                                  ARTICLE III
                                    PREMISES

         Manager shall be responsible, at the sole cost and expense of Lessee,
for keeping and maintaining the Premises fully equipped in accordance with
plans, specifications, construction safety and fire safety standards, and
designs pursuant to applicable Legal Requirements, the standards and
requirements of a Franchisor pursuant to any applicable Franchise Agreement, any
applicable Hotel Mortgage, the Leases and the Capital Improvement Budgets
approved pursuant to the terms hereof, subject in all respects to performance by
Lessee of its obligations pursuant to this Agreement.

                                   ARTICLE IV
                             APPOINTMENT OF MANAGER

         4.01 APPOINTMENT. Lessee hereby appoints Manager as its sole, exclusive
and continuing operator and manager to supervise and direct, for and at the
expense of Lessee, the management and operation of the Premises under the terms
and conditions hereinafter set forth. In exercising its duties hereunder,
Manager shall act as agent and for the account of Lessee. Manager hereby accepts
said appointment and agrees to manage the Premises during the Term of this
Agreement under the terms and conditions hereinafter set forth.

         4.02 DELEGATION OF AUTHORITY. The operation of the Premises shall be
under the exclusive supervision and control of Manager who, except as otherwise
specifically provided in

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                                       17
<PAGE>

this Agreement, shall be responsible for the proper and efficient management and
operation of the Premises in accordance with this Agreement, the Leases, the
Franchise Agreements, the Capital Improvement Budget and the Annual Operating
Budget. Subject to the terms of such agreements and budgets, the Manager shall
have discretion and control in all matters relating to the management and
operation of the Premises, including, without limitation, charges for rooms and
commercial space, the determination of credit policies (including entering into
agreements with credit card organizations), food and beverage service and
policies, employment policies, procurement of inventories, supplies and
services, promotion, advertising, publicity and marketing, and, generally, all
activities necessary for the operation of the Premises. Manager shall also be
responsible for the receipt, holding and disbursement of funds and maintenance
of bank accounts in compliance with the Cash Management Agreements, if
applicable.

         4.03 CONTRACTS, EQUIPMENT LEASES AND OTHER AGREEMENTS. Manager is
hereby authorized to grant concessions, lease commercial space and enter into
any other contract, equipment lease, agreement or arrangement pertaining to or
otherwise reasonably necessary for the normal operation of the Premises (such
concession, lease, equipment lease, contract, agreement or arrangement
hereinafter being referred to individually as a "CONTRACT" and collectively as
"CONTRACTS") on behalf of Lessee, as may be necessary or advisable and
reasonably prudent business judgment in connection with the operation of the
Premises and consistent with the Annual Operating Budget, and subject to any
restrictions imposed by the Franchise Agreements, Leases or any Hotel Mortgage,
and subject to the Lessee's prior written approval of: (i) any Contract which
provides for a term exceeding one (1) year (unless such Contract is thirty day
cancellable without cost, premium or penalty exceeding $25,000.00) or (ii) any
tenant space lease, license or concession concerning any portion of the public
space in or on the Premises for stores, office space, restaurant space, or lobby
space. Lessee's approval of any Contract shall not be unreasonably withheld,
delayed or conditioned. Unless otherwise agreed, all Contracts for the Premises
shall be entered into in Lessee's name. Manager shall make available to Lessee,
its agents, and employees, at the Premises during business hours, executed
counterparts or certified true copies of all Contracts it enters into pursuant
to this SECTION 4.03.

         4.04 ALCOHOLIC BEVERAGE/LIQUOR LICENSING REQUIREMENTS. With respect to
any licenses and permits held by Lessee or any of its subsidiaries for the sale
of any liquor and alcoholic beverages at any of the Premises, Manager agrees, as
part of its management duties and services under this Agreement, to fully
cooperate with any applicable liquor and/or alcoholic beverage authority and to
assist Lessee with any documentation and other requests of such authority to the
extent necessary to comply with any licensing and/or permitting requirements
applicable to the Premises.

                                   ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         5.01 LESSEE REPRESENTATIONS. Lessee, in order to induce Manager to
enter into this Agreement, hereby represents and warrants to Manager as follows:

                  5.01.1. The execution of this Agreement is permitted by the
         Articles of Incorporation and Bylaws of Lessee and this Agreement has
         been duly authorized,

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         executed and delivered on behalf of Lessee and constitutes the legal,
         valid and binding obligation of Lessee enforceable in accordance with
         the terms hereof;

                  5.01.2. There is no claim, litigation, proceeding or
         governmental investigation pending, or, to the best knowledge and
         belief of Lessee, threatened, against or relating to Lessee, the
         properties or businesses of Lessee or the transactions contemplated by
         this Agreement which does, or may reasonably be expected to, materially
         or adversely affect the ability of Lessee to enter into this Agreement
         or to carry out its obligations hereunder, and, to the best knowledge
         and belief of Lessee, there is no basis for any such claim, litigation,
         proceeding or governmental investigation except as has been fully
         disclosed in writing by Lessee to Manager;

                  5.01.3. Neither the consummation of the transactions
         contemplated by this Agreement on the part of Lessee to be performed,
         nor the fulfillment of the terms, conditions and provisions of this
         Agreement, conflicts with or will result in the breach of any of the
         terms, conditions or provisions of, or constitute a default under, any
         agreement, indenture, instrument or undertaking to which Lessee is a
         party or by which it is bound;

                  5.01.4. No approval of any third party (including any Landlord
         or the Holder of any Hotel Mortgage in effect as of the date of this
         Agreement) is required for Lessee's execution, delivery and performance
         of this Agreement that has not been obtained prior to the execution
         hereof;

                  5.01.5. Lessee holds all required governmental approvals
         required (if applicable) to be held by it to lease the Hotels; and

                  5.01.6. As of the date of this Agreement there are no defaults
         under any of the Leases.

         5.02 MANAGER REPRESENTATIONS. Manager, in order to induce Lessee to
enter into this Agreement, hereby represents and warrants to Lessee as follows:

                  5.02.1. The execution of this Agreement is permitted by the
         Limited Partnership Agreement of Manager and this Agreement has been
         duly authorized, executed and delivered on behalf of Manager and
         constitutes a legal, valid and binding obligation of Manager
         enforceable in accordance with the terms hereof;

                  5.02.2. There is no claim, litigation, proceeding or
         governmental investigation pending, or, to the best knowledge and
         belief of Manager, threatened, against or relating to Manager, the
         properties or business of Manager or the transactions contemplated by
         this Agreement which does, or may reasonably be expected to, materially
         or adversely affect the ability of Manager to enter into this Agreement
         or to carry out its obligations hereunder, and, to the best knowledge
         and belief of Manager, there is no basis for any such claim,
         litigation, proceeding or governmental investigation, except as has
         been fully disclosed in writing by Manager to Lessee;

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Ashford TRS Corporation

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<PAGE>

                  5.02.3. Neither the consummation of the transactions
         contemplated by this Agreement on the part of Manager to be performed,
         nor the fulfillment of the terms, conditions and provisions of this
         Agreement, conflicts with or will result in the breach of any of the
         terms, conditions or provisions of, or constitute a default under, any
         agreement, indenture, instrument or undertaking to which Manager is a
         party or by which it is bound;

                  5.02.4. No approval of any third party is required for
         Manager's execution, delivery and performance of this Agreement that
         has not been obtained prior to the execution and delivery hereof;

                  5.02.5. Manager holds all required governmental approvals
         required to be held by it to perform its obligations under this
         Agreement; and

                  5.02.6. Manager qualifies as an Eligible Independent
         Contractor, and during the Term of this Agreement, agrees to continue
         to qualify as an Eligible Independent Contractor.

                                   ARTICLE VI
                                    OPERATION

         6.01 NAME OF PREMISES; STANDARD OF OPERATION. During the Term of this
Agreement, the Premises shall be known and operated by Manager as hotels
licensed with the applicable Franchisor as noted on EXHIBIT C, with additional
identification as may be necessary to provide local identification, provided
Manager and/or Lessee have obtained and are successful in continuously
maintaining the right to so operate the Premises, which Manager agrees to use
its reasonable best efforts to do. Manager agrees to manage the Premises, for
the account of Lessee, and so far as is legally possible, in accordance with the
Annual Operating Budget and Applicable Standards subject to Force Majeure. In
the event of termination of a Franchise Agreement for one or more of the
Premises, Manager shall operate such Premises under such other franchise
agreement, if any, as Lessee enters into or obtains as franchisee. If the name
of a Franchisor's hotel system is changed, Lessee shall have the right to change
the name of the applicable Hotel to conform thereto.

         Notwithstanding the foregoing or any other provision in this Agreement
to the contrary, Manager's obligation with respect to operating and managing the
Hotels in accordance with any Hotel Mortgage, Ground Leases, the Leases and the
CCRs shall be limited to the extent (i) true and complete copies thereof have
been made available to Manager by Lessee reasonably sufficient in advance to
allow Manager to manage the Hotels in compliance with such documents, and (ii)
the provisions thereof and/or compliance with such provisions by Manager (a) are
applicable to the day-to-day management, maintenance and routine repair and
replacement of the Hotels, the FF&E or any portion thereof, (b) do not require
contribution of funds from Manager, (c) do not materially increase Manager's
obligations hereunder or materially decrease Manager's rights or benefits
hereunder, (d) do not limit or restrict, or attempt to limit or restrict any
corporate activity or transaction with respect to Manager or any Manager
Affiliate Entity or any other activity, transfer, transaction, property or other
matter involving Manager or the Manager Affiliate Entities other than at the
Site of the Hotels and (e) are

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Ashford TRS Corporation

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<PAGE>

otherwise within the scope of Manager's duties under this Agreement. Lessee
acknowledges and agrees, without limiting the foregoing, that any failure of (i)
Lessee to comply with the provisions of any Hotel Mortgage, Ground Leases, the
Leases and the CCRs or Legal Requirements or (ii) Manager to comply with the
provisions of any such agreements or Legal Requirements arising out of, in the
case of both (i) and (ii), (A) the condition of the Hotels, and/or the failure
of the Hotels to comply with the provisions of such agreements, prior to the
Commencement Date, (B) construction activities at the Hotels prior to the
Commencement Date, (C) inherent limitations in the design and/or construction
of, location of the Hotels and/or parking at the Hotels prior to the
Commencement Date, (D) failure of Lessee to provide funds, from operations or
otherwise, sufficient to allow timely compliance with the provisions of the
Applicable Standards or the Leases, the Ground Leases, any Hotel Mortgage and/or
the CCRs through reasonable and customary business practices, and/or (E)
Lessee's failure to approve any matter reasonably requested by Manager in
Manager's good faith business judgment as necessary or appropriate to achieve
compliance with such items, shall not be deemed a breach by Manager of its
obligations under this Agreement. Manager and Lessee agree, that Manager may
from time to time, so long as Manager is in compliance with the Franchise
Agreements and Legal Requirements, provide collateral marketing materials in the
rooms of the Hotels which advertise other hotels or programs of Manager or its
Affiliates (including, through a dedicated television channel in the rooms of
the Hotels), at the sole cost and expense of Manager, provided such other hotels
or programs being marketed by Manager are not competing directly in the same
market with the Hotel where the marketing materials and information are being
placed by Manager.

         6.02 USE OF PREMISES. Manager shall use the Premises solely for the
operation of the Hotels in accordance with the Applicable Standards and for all
activities in connection therewith which are customary and usual to such an
operation. Subject to the terms of this Agreement, Manager shall comply with and
abide by all applicable Legal Requirements, and the requirements of any
insurance companies covering any of the risks against which the Premises are
insured, any Hotel Mortgage, the Ground Leases, the Leases, and the Franchise
Agreements. If there are insufficient funds in the Operating Account to make any
expenditure required to remedy non-compliance with such Legal Requirements or
with the requirements of any Hotel Mortgage, the Ground Leases, the Leases, or
the Franchise Agreements or applicable insurance, Manager shall promptly notify
Lessee of such non-compliance and estimated cost of curing such non-compliance.
If Lessee fails to make funds available for the expenditure so requested by
Manager within thirty (30) days, Lessee agrees to indemnify and hold Manager
harmless from and against any and all costs, expenses and other liabilities
incurred by Manager resulting from such non-compliance (which such indemnity
shall survive any termination of this Agreement). In no event shall Manager be
required to make available or distribute, as applicable, sexually explicit
materials or items of any kind, whether through retail stores or gift shops
located at the Hotels or through "pay for view" programming in the guest rooms
of the Hotels.

         6.03 GROUP SERVICES. Manager may cause to be furnished to the Premises
certain services ("GROUP SERVICES") which are furnished generally on a central
or regional basis to other hotels managed by Manager or any Manager Affiliate
Entity and which benefit each hotel managed by Manager including, by way of
example and not by way of limitation, (i) marketing, advertising and promotion;
(ii) centralized accounting payroll processing, ADP management,

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Ashford TRS Corporation

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management and administration of accounts payable, accounts receivable and cash
management accounting and MIS support services; (iii) the preparation and
maintenance of the general ledger and journal entries, internal audit, budgeting
and financial statement preparation, (iv) recruiting, training, career
development and relocation in accordance with Manager's or any Manager Affiliate
Entities' relocation plan; (v) employee benefits administration; (vi)
engineering and risk management; (vii) information technology; (viii) legal
support (such as license and permit coordination, filing and completion,
standardized contracts, negotiation and preparation, and similar legal services
benefiting the Hotels); (ix) purchasing arising out of ordinary hotel operations
not otherwise contemplated in SECTION 8.02G hereof; (x) internal audit services;
(xi) reservation systems; and (xii) such other additional services as are or may
be, from time to time, furnished for the benefit of Manager's or any Manager
Affiliate Entities' hotels or in substitution for services now performed at
Manager's individual hotels which may be more efficiently performed on a group
basis. Manager shall assure that the costs and expenses incurred in providing
Group Services to the Premises shall have been allocated to the Premises on a
pro-rata basis consistent with the method of allocation to all of Manager's (and
any Manager Affiliate Entities') hotels receiving the same services, shall be
incurred at a cost consistent with the Annual Operating Budget and shall
constitute Deductions. All Group Services provided by Manager shall be at the
actual costs (without mark up for fee or profit to Manager or any Manager
Affiliate Entity, but including salary and employee benefit costs and costs of
equipment used in performing such services and overhead costs) of Group Services
for the benefit of all of Manager's hotels receiving the same services, and
shall be of a quality comparable to which Manager could obtain from other
providers for similar services.

         6.04 RIGHT TO INSPECT. Lessee, the beneficial owners of Lessee, the
Landlords (to the extent permitted under such Leases), any Holder under any
Hotel Mortgage (to the extent permitted under such Hotel Mortgage), and their
respective agents, shall have access to the Premises at any and all reasonable
times for any purpose. Manager will be available to consult with and advise such
parties, at their reasonable request, concerning all policies and procedures
affecting all phases of the conduct of business at the Hotels.

                                  ARTICLE VII
                         WORKING CAPITAL AND INVENTORIES

         7.01 WORKING CAPITAL AND INVENTORIES. The Lessee shall cause funds to
be deposited in one or more operating accounts established by Manager, in
amounts sufficient to operate the Premises in accordance with the Annual
Operating Budget, including the establishment and maintenance of positive
Working Capital and Inventories as reasonably determined by Manager. All Working
Capital and Inventories are and shall remain the property of Lessee. In the
event Lessee fails to advance funds which are necessary in order to maintain
positive Working Capital and Inventories at reasonable levels for any of the
Hotels, Manager shall have the right to elect to terminate this Agreement upon
sixty (60) days' prior written notice to Lessee with respect to the affected
applicable Hotel. During such sixty (60) day period, Lessee and Manager shall
use reasonable efforts to resolve the dispute over such Working Capital and
Inventory requirements. If such dispute is not resolved, then this Agreement
shall terminate with respect to the affected applicable Hotel on the sixtieth
(60th) day following Manager's delivery of written notice of termination as
provided above. If such dispute is resolved, then the notice will be deemed

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Ashford TRS Corporation

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<PAGE>

rescinded and this Agreement shall not be terminated pursuant to the notice with
respect to the affected applicable Hotel. Further, if Manager should so
terminate this Agreement with respect to the affected applicable Hotel and if
Manager in good faith incurs expenditures, or otherwise accrues liabilities in
accordance with the Annual Operating Budget and variances allowed herein, in
each case, prior to the date of termination, Lessee agrees to promptly indemnify
and hold Manager harmless from and against (i) any and all liabilities, costs
and expenses properly incurred by Manager in connection with the operations of
the applicable Hotel through the date of Termination of this Agreement with
respect to such Hotel, and (ii) any and all liabilities, costs and expenses
properly incurred by Manager as a result of Lessee's failure to perform any
obligation or pay any liability arising under any service, maintenance,
franchise or other agreements, employment relationships (other than Excluded
Employee Claims), leases or contracts pertaining to the applicable Hotel after
Termination of this Agreement with respect to such Hotel. Lessee acknowledges
that liabilities arising in connection with the operation and management of the
applicable Hotel including, without limitation, all Deductions, incurred in
accordance with the terms of this Agreement, are and shall remain the
obligations of Lessee, and Manager shall have no liability therefor unless
otherwise expressly provided herein. In the event of a Termination by Manager
pursuant to this SECTION 7.01, Manager shall be entitled to a termination fee as
liquidated damages but not as a penalty, as set forth in connection with a
termination for convenience as described in SECTION 2.03(c) and subject to
SECTION 2.03(d) above.

         7.02 FIXED ASSET SUPPLIES. Lessee shall provide the funds necessary to
supply the Premises initially with Fixed Asset Supplies as reasonably determined
by Manager consistent with the cost budgeted therefor in the Annual Operating
Budget and otherwise consistent with the intent of the parties that the level of
such supplies will be adequate for the proper and efficient operation of the
Premises at the Applicable Standards. Fixed Asset Supplies shall remain the
property of Lessee.

                                  ARTICLE VIII
                      MAINTENANCE, REPLACEMENT AND CHANGES

         8.01 ROUTINE AND NON-ROUTINE REPAIRS AND MAINTENANCE. Manager, at the
expense of Lessee, shall maintain the Premises in good repair and condition as
is required by the Applicable Standards. Manager, on behalf of Lessee, shall
make or cause to be made such routine maintenance, repairs and minor alterations
as Manager from time to time deems reasonably necessary for such purposes, the
cost of which: (i) can be expensed under GAAP, (ii) shall be paid from Gross
Revenues, and treated as a Deduction, and (iii) are consistent with the Annual
Operating Budget. In addition, Lessee shall make or cause to be made such
non-routine repairs and maintenance, either to the Premises' building or its
fixtures, furniture, furnishings and equipment ("FF&E"), pursuant to the Capital
Improvement Budget approved by Lessee and Landlord, the cost of which shall be
paid for in the manner described in SECTION 8.02. Manager and Lessee shall use
their respective best efforts to prevent any liens from being filed against the
Premises which arise from any maintenance, changes, repairs, alterations,
improvements, renewals or replacements in or to the Premises. Lessee and Manager
shall cooperate fully in obtaining the release of any such liens. If the lien
arises as a result of the fault of either party, then the party at fault shall
bear the cost of obtaining the lien release. All changes, repairs,

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Ashford TRS Corporation

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<PAGE>

alterations, improvements, renewals or replacements made pursuant to this
ARTICLE VIII shall be the property of the Lessee.

         8.02 CAPITAL IMPROVEMENT RESERVE.

         A.       Manager shall establish (on behalf of Landlord), in respect of
                  each Fiscal Year during the term of this Agreement, a reserve
                  account on the Hotel's books of account ("CAPITAL IMPROVEMENT
                  RESERVE") to cover the cost of:

                  1.       Replacements and renewals to the Premises' FF&E; and

                  2.       Certain non-routine repairs and maintenance to the
                           Hotel's building(s) which are normally capitalized
                           under GAAP such as, but not limited to, exterior and
                           interior repainting, resurfacing, building walls,
                           floors, roofs and parking areas, and replacing
                           folding walls and the like, and major repairs,
                           alterations, improvements, renewals or replacement to
                           the Hotel's building structure or to its mechanical,
                           electrical, heating, ventilating, air conditioning,
                           plumbing or vertical transportation systems.

         B.       For each Fiscal Year, the Capital Improvement Reserve shall be
                  an amount equal to four percent (4%) of the Hotel's Gross
                  Revenues for the applicable year (or greater if required by
                  any Landlord, Holder or Franchisor), or in such other amount
                  as agreed to by Landlord, Lessee and Manager.

                  Payments of the percentage amounts specified above shall be
                  made on an interim accounting basis as specified in SECTION
                  11.02 hereof. Calculations and payments from the Capital
                  Improvement Reserve made with respect to each Accounting
                  Period shall be accounted for cumulatively for each Fiscal
                  Year. After the close of each Fiscal Year, any adjustments
                  required by the Fiscal Year accounting shall be made by
                  Manager. Any proceeds from the sale of the Premises' FF&E no
                  longer necessary to the operations of the Premises shall also
                  be credited to the Capital Improvement Reserve. All payments
                  from the Capital Improvement Reserve shall be reserved and
                  paid from Gross Revenues. Such payments and sale proceeds
                  shall be placed in an escrow account or accounts consistent
                  with the requirements of the Cash Management Agreements, if
                  any. Any interest earned in said account attributable to funds
                  deposited pursuant to this Agreement shall be added to such
                  Capital Improvement Reserve, thereby reducing the amount
                  required to be placed in the account from Gross Revenues.

         C.       Manager shall, in accordance with and subject to the Capital
                  Improvement Budget described in SECTION 8.02E, from time to
                  time make such substitutions and replacements of or renewals
                  to FF&E and non-routine repairs and maintenance as described
                  in SECTION 8.01 as it deems necessary to maintain the Hotels
                  as required by this Agreement. Except as hereinafter provided,
                  no expenditures will be made except as otherwise provided in
                  the Capital Improvement Budget without the approval of Lessee
                  and Landlord, and provided further, however, that if any such
                  expenditures which are required by reason of any (i)
                  emergency, or (ii) applicable

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Ashford TRS Corporation

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<PAGE>

                  Legal Requirements, or (iii) the terms of the Franchise
                  Agreement, or (iv) are otherwise required for the continued
                  safe and orderly operation of the Hotels, Manager shall
                  immediately give Lessee and Landlord notice thereof and shall
                  be authorized to take appropriate remedial action without such
                  approval whenever there is a clear and present danger to life,
                  limb or property of the Hotels or its guests or employees. The
                  cost of all such changes, repairs, alterations, improvements,
                  renewals, or replacements will be paid for first from the
                  Capital Improvement Reserve or other monies advanced by Lessee
                  from funds received or owned by Landlord. At the end of each
                  Fiscal Year any amount remaining in the Capital Improvement
                  Reserve in excess of the amounts unspent but contemplated to
                  be spent pursuant to the Capital Improvement Budget for such
                  Fiscal Year or as otherwise approved by Lessee and Landlord
                  may be withdrawn by the Lessee on behalf of Landlord.

         D.       All changes, repairs, alterations, improvements, renewals or
                  replacements made pursuant to this ARTICLE VIII shall be the
                  property of Landlord.

         E.       Manager shall prepare a budget ("CAPITAL IMPROVEMENT BUDGET")
                  of the expenditures necessary for replacement of FF&E and
                  building repairs of the nature contemplated by SECTION 8.01
                  during the ensuing Fiscal Year and shall provide such Capital
                  Improvement Budget to Lessee and Landlord for approval at the
                  same time Manager submits the Annual Operating Budget. The
                  Capital Improvement Budget shall not be deemed accepted by
                  Lessee and Landlord in the absence of their respective express
                  written approval. Not later than thirty (30) days after
                  receipt by Lessee and Landlord of a proposed Capital
                  Improvement Budget (or such longer period as Lessee and
                  Landlord may reasonably request on Notice to the Manager),
                  Lessee and/or Landlord may deliver a Notice (a "CIB OBJECTION
                  NOTICE") to the Manager stating that Lessee and/or Landlord
                  objects to any information contained in or omitted from such
                  proposed Capital Improvement Budget and setting forth the
                  nature of such objections with reasonable specificity. Failure
                  of Lessee and/or Landlord to deliver a CIB Objection Notice
                  shall be deemed rejection of the Manager's proposed Capital
                  Improvement Budget in its entirety. Upon receipt of any CIB
                  Objection Notice, the Manager shall, after consultation with
                  Lessee and Landlord, modify the proposed Capital Improvement
                  Budget, taking into account Lessee's and/or Landlord's
                  objections, and shall resubmit the same to Lessee and Landlord
                  for Lessee's approval within fifteen (15) days thereafter, and
                  Lessee and/or Landlord may deliver further CIB Objection
                  Notices (if any) within fifteen (15) days thereafter (in which
                  event, the re-submission and review process described above in
                  this sentence shall continue until the proposed Capital
                  Improvement Budget in question is accepted and consented to by
                  Lessee and Landlord). Notwithstanding anything to the contrary
                  set forth herein, Lessee and Landlord shall have the right at
                  any time subsequent to the acceptance and consent with respect
                  to any Capital Improvement Budget, on Notice to the Manager,
                  to revise, with the reasonable approval of Manager, such
                  Capital Improvement Budget or to request that the Manager
                  prepare for Lessee's and/or Landlord's approval a revised
                  Capital Improvement Budget,

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Ashford TRS Corporation

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<PAGE>

                  taking into account such circumstances as Lessee and Landlord
                  deem appropriate; provided, however, that the revision of a
                  Capital Improvement Budget shall not be deemed a revocation of
                  the Manager's authority with respect to such actions as the
                  Manager may have already taken prior to receipt of such
                  revision notice in implementing a previously approved budget
                  or plan. Manager shall have the right and discretion to expend
                  funds from the Capital Improvement Reserve for replacements
                  and renewals of FF&E in the Hotels' interior public areas and
                  guest rooms and routine maintenance, repairs and minor
                  alterations during the Fiscal Year in question (but not for
                  any other capital expenditures) in accordance with the
                  provisions of the Capital Improvement Budget.

         F.       It is the intent of Manager and Lessee to maintain the
                  Premises in conformance with the Applicable Standards.
                  Accordingly, as the Hotels age, if the Capital Improvement
                  Reserve established pursuant to the terms hereof is
                  insufficient to meet such standards, and if the Capital
                  Improvement Budget prepared in good faith by Manager and
                  approved by Lessee and Landlord exceeds the available and
                  anticipated funds in the Capital Improvement Reserve, Lessee,
                  Landlord and Manager will consider the matter and Lessee and
                  Landlord may elect to:

                  1.       increase the annual reserve provision to provide the
                           additional funds required; or

                  2.       obtain financing for the additional funds required.

         G.       In consideration of the Project Management Fee (as defined
                  below), Manager shall be responsible for managing,
                  coordinating, planning and executing the Capital Improvement
                  Budget and all major repositionings of the Hotels. In
                  addition, Manager shall be paid additional fees at current
                  market rates (determined with reference to other third party
                  providers of such services who are not discounting such fees
                  as result of fees generated from other services)
                  (collectively, the "MARKET SERVICE FEES"), subject to the
                  Approval Requirement (defined in subparagraph 8.02(I) below),
                  for the following services (the "PROJECT RELATED SERVICES") to
                  be provided in accordance with the Applicable Standards (with
                  the understanding that Manager may subcontract for any or all
                  of the following Project Related Services):

                  1.       Construction Management - Manager shall, on major
                           renovation tasks which involve the selection and
                           engagement of a general contractor, coordinate the
                           selection process with Lessee and/or Landlord, shall
                           assist in the negotiation of construction contracts,
                           manage such construction contracts and related
                           issues, and shall engage separate contractors and
                           subcontractors for specific tasks outside the scope
                           of the general contractor.

                  2.       Interior Design - With respect to any interior design
                           elements involved in the implementation of the
                           Capital Improvement Budget, Manager shall be
                           responsible for overseeing the development of
                           conceptual plans

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<PAGE>

                           (consistent with Lessee's and Landlord's objectives),
                           shall arrange for preparation of specifications,
                           coordinate and make all fabric, flooring, furniture
                           and wall treatment selections (both colors and
                           finishes), coordinate reselections and document all
                           selections in specification books as required under
                           the terms of the Franchise Agreement and coordinate
                           all related franchise approvals, and will manage the
                           applicable Franchisor process on approval of all
                           selections relating to initial and final selections.

                  3.       Architectural - Manager shall, if applicable, make
                           recommendations of engagement of architects,
                           negotiate architectural agreements on behalf of
                           Lessee and Landlord (with Lessee's and Landlord's
                           approval), manage all architects applicable to the
                           implementation of the Capital Improvement Budget,
                           oversee all conceptual designs and sketches, review
                           all necessary plans, drawings, shop drawings and
                           other matters necessary for the proper implementation
                           of the Capital Improvement Budget, and coordinate and
                           manage all approvals necessary for the implementation
                           of the Capital Improvement Budget such as Franchisor
                           approvals, governmental approvals and Holder
                           approvals.

                  4.       FF&E Purchasing - Manager shall be responsible for
                           the evaluation of all specifications and negotiations
                           of all prices associated with the purchasing of FF&E,
                           shall manage and issue all purchase orders and place
                           orders necessary for the proper and timely delivery
                           of all FF&E.

                  5.       FF&E Expediting/Freight Management - Manager shall be
                           responsible for the expediting of all FF&E
                           contemplated in an applicable Capital Improvement
                           Budget including managing the freight selection and
                           shipping process in a cost effective manner.

                  6.       FF&E Warehousing - Manager shall be responsible, if
                           applicable, for the management and coordination of
                           all warehousing of goods delivered at the job site,
                           inspection of materials delivered, and the filing of
                           all claims associated with the delivery of defective
                           or damaged goods.

                  7.       FF&E Installation and Supervision - Manager shall be
                           responsible for the management and oversight of the
                           installation of all FF&E in compliance with
                           specifications and Franchisor standards as required
                           to implement the Capital Improvement Budget.

                  Manager shall be paid a project management fee (herein, the
                  "PROJECT MANAGEMENT FEE") equal to four percent (4%) of the
                  total project costs associated with the implementation of the
                  Capital Improvement Budget (both hard and soft) payable
                  monthly in arrears based upon the prior calendar month's total
                  expenditures under the Capital Improvement Budget until such
                  time that the Capital Improvement Budget and/or renovation
                  project involves the expenditure of an amount in excess of
                  five percent (5%) of Gross Revenues of the applicable Hotel,
                  whereupon the Project Management Fee shall be reduced to three
                  percent

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<PAGE>

                  (3%) of the total project costs in excess of the five percent
                  (5%) of Gross Revenue threshold. The Project Management Fee
                  shall be accounted for and documented and consistent with the
                  requirements of SECTION 11.02 herein. Any onsite or dedicated
                  personnel required for the direct supervision of the
                  implementation of a Capital Improvement Budget or other
                  renovation project will be a direct cost to, and shall be
                  reimbursed by, the Landlord.

         H.       Except as otherwise provided herein, in no event shall Manager
                  realize any kick backs, rebates, cash incentives,
                  administration fees, concessions, profit participations,
                  investment rights or similar payments or economic
                  consideration from or in, as applicable, vendors or suppliers
                  of goods or services. Manager agrees that any such amounts or
                  benefits derived shall be held in trust for the benefit of
                  Lessee or Landlord (as applicable).

         I.       Any Market Service Fees for the Project Related Services shall
                  be, once approved, reflected in the Capital Improvements
                  Budget (such Market Service Fees subject to any adjustments
                  necessary for then existing market conditions) shall be
                  submitted for approval to Lessee and Landlord with the
                  applicable Capital Improvement Budget, and shall be deemed
                  approved by the Lessee and Landlord unless a majority of the
                  Independent Directors of AHT affirmatively vote that such
                  Market Service Fees are not market (determined by reference to
                  fees charged by third party providers who are not hotel
                  managers or who are not discounting such fees as result of
                  fees generated from other services) (herein called the
                  "APPROVAL REQUIREMENT"). In the event that the majority of the
                  Independent Directors of AHT affirmatively votes that the
                  Market Service Fees proposed by Manager are not market, the
                  Lessee and Manager agree to engage a consultant reasonably
                  satisfactory to both Lessee and Manager to provide then
                  current market information with respect to the proposed Market
                  Service Fees and a written recommendation as to whether such
                  fees are market or not. If the consultant's recommendation
                  provides that such Market Service Fees as proposed by Manager
                  are market, then the Landlord agrees to pay any consultant
                  fees incurred by such consultant in making the recommendation.
                  If the consultant's recommendation does not support the Market
                  Service Fees as proposed by Manager, then Manager agrees to
                  pay the consultant's fees incurred in connection with the
                  recommendation and agrees to either re-submit Manager's
                  proposed Market Service Fees consistent with the market
                  research and recommendation of the consultant for approval to
                  Lessee and Landlord, or elect by Notice to Lessee and Landlord
                  that Manager will not provide the Project Related Services.

                                   ARTICLE IX
                                    EMPLOYEES

         9.01 EMPLOYEE HIRING. Manager will hire, train, promote, supervise,
direct the work of and discharge all personnel working on the Premises. Manager
shall be the sole judge of the fitness and qualification of such personnel and
is vested with absolute discretion in the hiring, discharging, supervision, and
direction of such personnel during the course of their employment and in the
operation of the Premises.

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         9.02 COSTS; BENEFIT PLANS. Manager shall fix the employees' terms of
compensation and establish and maintain all policies relating to employment, so
long as they are reasonable and in accordance with the Applicable Standards and
the Annual Operating Budget. Without limiting the foregoing, Manager may,
consistent with the applicable budgets, enroll the employees of the Hotels in
pension, medical and health, life insurance, and similar employee benefit plans
("BENEFIT PLANS") substantially similar to plans reasonably necessary to attract
and retain employees and generally remain competitive. The Benefit Plans may be
joint plans for the benefit of employees at more than one hotel owned, leased or
managed by Manager or Manager Affiliate Entities. Employer contributions to such
plans (including any withdrawal liability incurred upon Termination of this
Agreement) and reasonable administrative fees (but without further markup by
Manager), which Manager may expend in connection therewith, shall be the
responsibility of Lessee and shall be a Deduction. The administrative expenses
of any joint plans will be equitably apportioned by Manager among properties
covered by such plan.

         9.03 MANAGER'S EMPLOYEES. It is expressly understood and agreed that
all such personnel employed at the Hotels, including the Manager's acting
General Managers for each of the Hotels, will be the employees of Manager for
all purposes including, without limitation, federal, state and local tax and
reporting purposes, but the expense incurred in connection therewith will be a
Deduction and for Lessee's account. A General Manager's compensation may be
allocated to other Hotels on a fair and equitable basis if the General Manager
oversees and supervises other Hotel operations. Manager shall use such care when
hiring any employees as may be common to the hospitality business and consistent
with the Manager's standards of operation. Lessee acknowledges and agrees that
Manager, as the employer of all of the Hotels' employees, shall be entitled to
all federal, state and/or local tax credits or benefits allowed to employers
relating to the Hotels' employees including, without limitation, the Work
Opportunity Tax Credit, the Targeted Jobs Tax Credit, and similar tax credits
(provided that Manager shall pay all incremental fees, if applicable, to qualify
for such tax credits). Manager, in accordance with the Annual Operating Budget,
may draw down from Gross Revenues all costs and expenses, of whatever nature,
incurred in connection with such employees, including, but not limited to,
wages, salaries, on-site staff, bonuses, commissions, fringe benefits, employee
benefits, recruitment costs, workmen's compensation and unemployment insurance
premiums, payroll taxes, vacation and sick leave (collectively, "EMPLOYEE COSTS
AND EXPENSES").

         9.04 SPECIAL PROJECTS - CORPORATE EMPLOYEES. The costs, fees,
compensation and other expenses of any persons engaged by Manager to perform
duties of a special nature, directly related to the operation of the Premises,
including, but not limited to, in-house or outside counsel, accountants,
bookkeepers, auditors, employment search firms, marketing and sales firms, and
similar firms of personnel, shall be operating expenses, payable from and
consistent with the Annual Operating Budget and not the responsibility of the
Manager. The costs, fees, compensation and other expenses of those personnel of
Manager assigned to special projects for the Hotels shall also be operating
expenses payable by the Lessee and not the responsibility of Manager. The daily
per diem rate for those personnel shall be based upon the actual costs of
Manager in providing its personnel for such special services or projects,
without mark-up for fee or profit but including salary and employee benefit
costs and costs of equipment used in performing such services, overhead costs,
travel costs and long distance telephone. Such special services shall include,
but not be limited to, those matters which are not included within the

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<PAGE>

scope of the duties to be performed by Manager hereunder and, if not provided by
Lessee, would involve the Lessee's engagement of a third party to perform such
services; for example, special sales or marketing programs, market reviews,
assistance in opening new food and beverage facilities, legal services,
accounting services, tax services, insurance services, data processing,
engineering personnel, and similar services.

         9.05 TERMINATION. At Termination, subject to SECTION 2.01 above, Lessee
shall reimburse Manager for costs and expenses incurred by Manager which arise
out of either the transfer or termination of Manager's employees at the Hotels,
such as reasonable transfer costs, compensation in lieu of vacation and sick
leave, severance pay (including a reasonable allowance for severance pay for
Executive Employees of the Hotels, the amount of such allowance not to exceed an
amount equal to Manager's then current severance benefits for such terminated
Executive Employees, unless Lessee otherwise approves), unemployment
compensation, employer liability pursuant to the Consolidated Omnibus Budget
Reconciliation Act (COBRA liability) and the Worker Adjustment and Retraining
Notification Act (WARN Act) and other employment liability costs arising out of
the termination of the employment of the Manager's employees at the Premises
(herein collectively called "EMPLOYEE RELATED TERMINATION COSTS"). This
reimbursement obligation shall not apply to any corporate personnel of Manager
assigned to the Hotels for special projects or who perform functions for Manager
at the corporate level. In order to be reimbursable hereunder, any Employee
Related Termination Costs must be pursuant to policies of Manager which shall be
consistent with those of other managers managing similar hotels in similar
markets and geographical locations and which shall be subject to review and
reasonable approval of Lessee from time to time upon Notice from Lessee and
which review and approval shall occur no more than one time during each Fiscal
Year during the term of this Agreement.

         At Termination, an escrow fund shall be established from Gross Revenues
(or, if Gross Revenues are not sufficient, with funds provided by Lessee) to
reimburse Manager for all reimbursable Employee Related Termination Costs.

         9.06 EMPLOYEE USE OF HOTEL. Manager, in its discretion, may (i) provide
lodging for Manager's Executive Employees and corporate staff visiting the
Hotels in connection with the performance of Manager's services hereunder and
allow them the use of the facilities of the Hotels, and (ii) provide the
management of the Hotels with temporary living quarters within the Hotels and
the use of all facilities of the Hotels, in either case at a discounted price or
without charge, as the case may be. Manager shall, on a space available basis,
provide lodging at the Hotels for Lessee's employees, officers and directors
visiting the Hotels and allow them the use of all facilities of the Hotels in
either case without charge, except for recreational facilities for which a
charge will apply.

         9.07 NON-SOLICITATION. During the term of this Agreement and for a
period of two (2) years thereafter, unless an Event of Default by Manager exists
under this Agreement beyond applicable grace or cure periods, or the Agreement
has been terminated as a result of an uncured Event of Default by Manager,
Lessee agrees that it (and its Affiliates) will not, without the prior written
consent of Manager, either directly or indirectly, alone or in conjunction with
any other

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<PAGE>

person or entity, (i) solicit or attempt to solicit any general manager (each a
"GENERAL MANAGER" and, collectively, "GENERAL MANAGERS") of the Hotels or any
other hotels managed by Manager or any of Manager's Executive Employees
(collectively, the General Manager and Executive Employees are herein called the
"KEY EMPLOYEES") to terminate, alter or lessen Key Employees' employment or
affiliation with Manager or to violate the terms of any agreement or
understanding between any such Key Employee and Manager, as the case may be, or
(ii) employ, retain, or contract with any Key Employee.

                                   ARTICLE X
                         BUDGET, STANDARDS AND CONTRACTS

         10.01 ANNUAL OPERATING BUDGET. Not less than forty-five (45) days prior
to the beginning of each Fiscal Year, Manager shall submit to Lessee for each of
the Hotels, a budget (the "ANNUAL OPERATING BUDGET") setting forth in detail an
estimated profit and loss statement for the next twelve (12) Accounting Periods,
or for the balance of the Fiscal Year in the event of a partial first Fiscal
Year, including a schedule of hotel room rentals and other rentals and a
marketing and business plan for each of the Hotels, such budget to be
substantially in the format of EXHIBIT "D" attached hereto.

         10.02 BUDGET APPROVAL. The Annual Operating Budget submitted to Lessee
by Manager shall be subject to the approval of Lessee (such approval not to be
unreasonably withheld). The Annual Operating Budget shall not be deemed accepted
by Lessee in the absence of its express written approval. Not later than thirty
(30) days after receipt by Lessee of a proposed Annual Operating Budget (or such
longer period as Lessee may reasonably request on Notice to Manager), Lessee may
deliver an AOB OBJECTION NOTICE with reasonable detail to the Manager stating
that Lessee objects to any information contained in or omitted from such
proposed Annual Operating Budget and setting forth the nature of such objections
with reasonable specificity. Failure of Lessee to deliver an AOB Objection
Notice shall be deemed rejection of the Manager's proposed Annual Operating
Budget in its entirety. Upon receipt of any AOB Objection Notice, the Manager
shall, after consultation with Lessee, modify the proposed Annual Operating
Budget, taking into account Lessee's objections, and shall resubmit the same to
Lessee for Lessee's approval within fifteen (15) days thereafter, and Lessee may
deliver further AOB Objection Notices (if any) within fifteen (15) days
thereafter (in which event, the re-submission and review process described above
in this sentence shall continue until the proposed Annual Operating Budget in
question is accepted and consented to by Lessee). Notwithstanding anything to
the contrary set forth herein, Lessee shall have the right at any time
subsequent to the acceptance and consent with respect to any Annual Operating
Budget, on Notice to the Manager, to revise such Annual Operating Budget or to
request that the Manager prepare for Lessee's approval a revised Annual
Operating Budget (with the approval of Manager, such approval not to be
unreasonably withheld), taking into account such circumstances as Lessee deems
appropriate; provided, however, that the revision of an Annual Operating Budget
shall not be deemed a revocation of the Manager's authority with respect to such
actions as the Manager may have already taken prior to receipt of such revision
notice in implementing a previously approved budget or plan. Lessee and Manager
acknowledge and agree that the Annual Operating Budgets are merely forecasts of
operating revenues and expenses for an ensuing year and shall be revised, by
agreement of Lessee and Manager, from time to time as

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<PAGE>

business and operating conditions shall demand. However, Manager shall use its
reasonable best efforts to operate the Premises in accordance with the Annual
Operating Budget. The failure of any of the Hotels to perform in accordance with
such Annual Operating Budget shall not constitute a default by Manager of this
Agreement, however, the Lessee has a right to terminate this Agreement with
respect to a Subject Hotel if such Subject Hotel fails to satisfy the
Performance Test as set forth in SECTION 2.03(c) above.

         10.03 OPERATION PENDING APPROVAL. If the Annual Operating Budget (or
any component thereof) has not yet been approved by Lessee prior to any
applicable Fiscal Year, then, until approval of such Annual Operating Budget (or
such component) by Lessee, Manager shall operate the Hotels substantially in
accordance with the prior year's Annual Operating Budget except for (a) those
components of the Annual Operating Budget for the applicable Fiscal Year
approved by Lessee, (b) the Necessary Expenses which shall be paid as required,
(c) the Emergency Expenses which shall be paid as required, and (d) those
expenses that vary in correlation with Gross Revenues and/or occupancy in the
aggregate.

         10.04 BUDGET MEETINGS. At each budget meeting and at any additional
meetings during a Fiscal Year reasonably called by Lessee or Manager, Manager
shall consult with Lessee on matters of policy concerning management, sales,
room rates, wage scales, personnel, general overall operating procedures,
economics and operation and other matters affecting the operation of the Hotels.

                                   ARTICLE XI
                             OPERATING DISTRIBUTIONS

         11.01 MANAGEMENT FEE. As consideration for the services to be rendered
by Manager pursuant to this Agreement as manager and operator of the Premises,
Manager shall be paid the following Base Management Fee and Incentive Management
Fee (as such terms are hereinafter defined), collectively called the "MANAGEMENT
FEE", for each of the Hotels on a property by property basis as follows:

         A.       BASE MANAGEMENT FEE. The base management fee ("BASE MANAGEMENT
                  FEE") shall be equal to the greater of (i) $10,000 (to be
                  increased annually based on any increases in CPI over the
                  preceding annual period), or (ii) three percent (3%) of the
                  Gross Revenues for each Accounting Period, to be paid monthly
                  in arrears. If this Agreement shall commence or expire on
                  other than the first and last day of a calendar month,
                  respectively, the Base Management Fee shall be apportioned
                  based on the actual number of days of service in the month.

         B.       INCENTIVE FEE. The incentive fee (the "INCENTIVE FEE") shall
                  be equal to the lesser of (i) one percent (1%) of Gross
                  Revenues for each Fiscal Year and (ii) the amount by which the
                  actual Gross Operating Profit exceeds the Budgeted GOP
                  determined on a property by property basis ("GOP TEST"). The
                  Incentive Fee shall be payable annually in arrears within
                  ninety (90) days after the end of each Fiscal Year; provided,
                  however, if based on actual operations and revised forecasts
                  from time to time, it is reasonably anticipated that the
                  Incentive Fee is reasonably expected to be earned for such
                  Fiscal Year, Lessee shall reasonably

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<PAGE>

                  consider payment of the Incentive Fee, pro-rata on a quarterly
                  basis, within twenty (20) days following the end of each
                  calendar quarter, subject to final adjustment within ninety
                  (90) days following the end of the Fiscal Year.

         11.02 ACCOUNTING AND INTERIM PAYMENT.

         A.       Manager shall submit monthly, pursuant to SECTION 15.02, an
                  interim accounting to Lessee showing Gross Revenues,
                  Deductions, Gross Operating Profit and Net Operating Income
                  before Debt Service.

         B.       Calculations and payments of the Base Management Fee made with
                  respect to each Accounting Period shall be made on an interim
                  accounting basis and shall be accounted for cumulatively for
                  each Fiscal Year. After the end of each Fiscal Year, Manager
                  shall submit to Lessee an accounting for such Fiscal Year,
                  consistent with SECTION 15.03, which accounting shall be
                  controlling over the interim accountings. Any adjustments
                  required by the Fiscal Year accounting shall be made promptly
                  by the parties.

         C.       The Incentive Fee shall only be calculated and earned based
                  upon the Gross Operating Profit achieving the required GOP
                  Test for any given Fiscal Year or a portion thereof if the
                  period of calculation cannot include the full period from
                  January 1 to December 31.

         D.       If Lessee raises no objection for any reason (excluding fraud)
                  within one (1) year from the receipt of annual accounting
                  statements as provided herein (or for fraud within any
                  applicable statute of limitations period, and if no statute of
                  limitations period exists, then in no event to exceed four (4)
                  years from receipt of annual accounting statements as provided
                  herein), such accounting shall be deemed to have been accepted
                  by Lessee as true and correct, and Lessee shall have no
                  further right to question its accuracy. Manager will provide
                  Lessee profit and loss statements for the current period and
                  year-to-date, including actual, budget and last year
                  comparisons, as required by SECTION 15.03.

                                  ARTICLE XII
                                    INSURANCE

         12.01 INSURANCE. Manager shall coordinate with Lessee, at all times
during any period of development, construction, renovation, furnishing and
equipping of the Premises, the procurement and maintenance in amount and scope
as available and market for the hotel lodging industry for hotels of similar
type and in similar markets and geographical locations as the Hotels, public
liability and indemnity and property insurance with minimum limits of liability
as required by Lessee, the Landlords, any Holder, or Franchisors, if applicable,
to protect Lessee, Landlord, Manager, any Holder, and any Franchisor, if
applicable, against loss or damage arising in connection with the development,
construction, renovation, furnishing and equipping of the Premises (and
pre-opening activities, if applicable), including, without limitation, the
following:

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<PAGE>

                  12.01.1. EXTENDED COVERAGE, BOILER, BUSINESS INTERRUPTION AND
         LIABILITY INSURANCE.

                  (a) Building insurance on the "Special Form" (formerly "All
         Risk" form) (including earthquake and flood in reasonable amounts as
         determined by Lessee) in an amount not less than 100% of the then "FULL
         REPLACEMENT COST" thereof (as defined below) or such other amount which
         is acceptable to Lessee, and personal property insurance on the
         "Special Form" in the full amount of the replacement cost thereof;

                  (b) Insurance for loss or damage (direct and indirect) from
         steam boilers, pressure vessels or similar apparatus, now or hereafter
         installed in the Hotels, in the minimum amount of $5,000,000 or in such
         greater amounts as are then customary or as may be reasonably requested
         by Lessee from time to time;

                  (c) Loss of income insurance on the "Special Form", in the
         amount of one year of the sum of Base Rent plus Percentage Rent (as
         such terms are defined in and as determined pursuant to the Leases) for
         the benefit of Landlords, and business interruption insurance on the
         "Special Form" in the amount of one year of Gross Operating Profit, for
         the benefit of Lessee. All loss of income insurance proceeds shall be
         part of Gross Revenues;

                  (d) Commercial general liability insurance, with amounts not
         less than $1,000,000 combined single limit for each occurrence and
         $2,000,000.00 for the aggregate of all occurrences within each policy
         year, as well as excess liability (umbrella) insurance with limited of
         at least $35,000,000 per occurrence, covering each of the following:
         bodily injury, death, or property damage liability per occurrence,
         personal and advertising injury, general aggregate, products and
         completed operations, and "all risk legal liability" (including liquor
         law or "dram shop" liability if liquor or alcoholic beverages are
         served at the Hotels);

                  (e) Automobile insurance on vehicles operating in conjunction
         with the Hotels with limits of liability of at least $1,000,000.00
         combined, single limit coverage; and

                  (f) Insurance covering such other hazards and in such amounts
         as may be customary for comparable properties in the area of the Hotels
         and is available from insurance companies, insurance pools or other
         appropriate companies authorized to do business in the State where the
         Hotels are located at rates which are economically practicable in
         relation to the risks covered as may be reasonably requested by Lessee
         and otherwise consistent with the costs allocated therefor in the
         Annual Operating Budget.

                  12.01.2. OPERATIONAL INSURANCE.

                  (a) Workers' compensation and employer's liability insurance
         as may be required under Legal Requirements and as Manager may deem
         reasonably prudent covering all of Manager's employees at the Premises,
         with such deductible limits or self-insured retentions as may be
         reasonably established from time to time by Manager;

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<PAGE>

                  (b) Fidelity bonds, with limits and deductibles as may be
         reasonably requested by Lessee, covering Manager's employees in job
         classifications normally bonded under prudent hotel management
         practices in the United States or otherwise required by law; and

                  (c) Such other insurance in amounts as Manager in its
         reasonable judgment deems advisable for its protection against claims,
         liabilities and losses arising out of or connected with its performance
         under this Agreement, and otherwise consistent with the costs allocated
         therefor in the Annual Operating Budget.

         12.02 REPLACEMENT COST. The term "FULL REPLACEMENT COST" as used herein
shall mean the actual replacement cost of the Hotels requiring replacement from
time to time including an increased cost of construction endorsement, if
available, and the cost of debris removal. In the event either party to this
Agreement believes that full replacement cost (the then-replacement cost less
such exclusions) has increased or decreased at any time during the Term, it
shall have the right to have such full replacement cost re-determined.

         12.03 INCREASE IN LIMITS. If either party to this Agreement at any time
deems the limits of the personal injury or property damage under the
comprehensive commercial general liability insurance then carried to be either
excessive or insufficient, such parties shall endeavor in good faith to agree on
the proper and reasonable limits for such insurance to be carried and such
insurance shall thereafter be carried with the limits thus agreed on until
further change pursuant to the provisions of this Section.

         12.04 BLANKET POLICY. Notwithstanding anything to the contrary
contained in this ARTICLE XII, Manager may include the insurance required
hereunder within the coverage of a so-called blanket policy or policies of
insurance carried and maintained by Manager; provided, however, that the
coverage afforded to the parties as required herein will not be reduced or
diminished or otherwise be different from that which would exist under a
separate policy meeting all other requirements of this Agreement by reason of
the use of such blanket policy of insurance, and provided further that the
requirements of this ARTICLE XII are otherwise satisfied.

         12.05 COSTS AND EXPENSES. Insurance premiums and any costs or expenses
with respect to the insurance, including, without limitation, agent's and
consultant's costs used to place insurance or adjust claims, shall be
Deductions. Premiums on policies for more than one year shall be charged
pro-rata against Gross Revenues over the period of the policies and to the
extent, through blanket policies, cover other hotels managed by Manager or owned
by Lessee or any of its Affiliates, shall be allocated based on rooms, number of
employees, values or other methods as determined to be reasonable by Manager and
Lessee. Any reserves, losses, costs, damages or expenses which are uninsured,
self-insured, or fall within deductible limits shall be treated as a cost of
insurance and shall be Deductions, subject to ARTICLE XXV.

         12.06 POLICIES AND ENDORSEMENTS.

         A.       Where permitted, all insurance provided for under this ARTICLE
                  XII shall name Lessee as insured, and Manager, any Holder, the
                  Landlords, and, if required, the Franchisors, as additional
                  insureds. The party procuring such insurance shall

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<PAGE>

                  deliver to the other party certificates of insurance with
                  respect to all policies so procured, including existing,
                  additional and renewal policies and, in the event of insurance
                  about to expire, shall deliver certificates of insurance with
                  respect to the renewal policies not less than ten (10) days
                  prior to the respective dates of expiration.

         B.       All policies of insurance provided for under this ARTICLE XII
                  shall, to the extent obtainable, be with insurance companies
                  licensed or authorized to do business in the state in which
                  the Premises are located, with a minimum rating of A or better
                  in the Best's Insurance Guide and an S&P rating of at least
                  A+V (or such higher rating if so required by any Holder,
                  Landlord or Franchisor), and shall have attached thereto an
                  endorsement that such policy shall not be cancelled or
                  materially changed without at least thirty (30) days' (and for
                  Texas Hotels, ten (10) days') prior written notice to Lessee.
                  All insurance policies obtained pursuant to this ARTICLE XII
                  shall contain a standard waiver of subrogation endorsement.

         12.07 TERMINATION. Upon Termination of this Agreement, an escrow fund
in an amount reasonably acceptable to Manager shall be established from Gross
Revenues (or, if Gross Revenues are not sufficient, with funds provided by
Lessee) to cover the amount of any costs which, in Manager's reasonable business
judgment, will likely need to be paid by either Lessee or Manager with respect
to pending or contingent claims, including those which arise after Termination
for causes arising during the Term of this Agreement. Upon the final disposition
of all such pending or contingent claims, any unexpended funds remaining in such
escrow shall be paid to Lessee.

                                  ARTICLE XIII
                             TAXES AND DEBT SERVICE

         13.01 TAXES.

                  (a) All real estate and ad valorem property taxes, assessments
         and similar charges on or relating to the Premises during the Term of
         this Agreement shall be paid by Manager, on behalf of Lessee, before
         any fine, penalty, or interest is added thereto or lien placed upon the
         Premises, unless payment thereof is stayed. All such payments shall be
         reserved and paid from Gross Revenues and treated as Deductions in
         determining Net Operating Income. Gross Revenues reserved for such
         purposes shall be placed in an escrow account or accounts established
         pursuant to the requirements of any applicable Holder. Interest earned
         in said account attributable to funds deposited pursuant to this
         Agreement shall be added to such reserve, thereby reducing the amount
         required to be placed in the account from Gross Revenues.

                  (b) Notwithstanding the foregoing, upon Lessee's request,
         Manager shall, as a Deduction, contest the validity or the amount of
         any such tax or assessment. Lessee agrees to cooperate with Manager and
         execute any documents or pleadings required for such purpose, provided
         that Lessee is satisfied that the facts set forth in such documents or
         pleadings are accurate and that such execution or cooperation does not
         impose any

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<PAGE>

         unreasonable obligations on Lessee, and Lessee agrees to reimburse
         Manager as a Deduction for all expenses occasioned to Manager by any
         such contest, provided that such expenses shall be approved by Lessee
         prior to the time that they are incurred.

         13.02 DEBT SERVICE; GROUND LEASE PAYMENTS. In the event of a Hotel
Mortgage and/or Ground Lease and upon direction of Lessee, Manager shall
establish an account (the "PROPERTY SERVICE ACCOUNT") to pay Debt Service and/or
Ground Lease Payments in such periodic payments as required by any applicable
Holder under any applicable Hotel Mortgage and/or landlord under any Ground
Lease. The Property Service Account shall be funded by Landlord under the Lease
from funds paid by Landlord to Lessee. In the event sufficient funds are
unavailable for the payment of Debt Service and/or Ground Lease Payments from
the Property Service Account, then Manager shall notify Lessee in writing of
such insufficiency who shall in turn advise the Landlord under the applicable
Lease to replenish the Property Service Account to provide funds for payment of
Debt Service and/or Ground Lease Payments.

                                  ARTICLE XIV
                                  BANK ACCOUNTS

         All funds made available to Manager by Lessee for operations of the
Premises, exclusive of those amounts described in ARTICLE VIII, shall be
deposited into a banking checking account or accounts to be established in the
name of Lessee (the "OPERATING ACCOUNT"), consistent with the requirements of
any Cash Management Agreements, if any. The Operating Account shall be interest
bearing when possible. Subject to the limitation of Manager's authority set
forth herein, both Manager and Lessee shall be authorized to withdraw funds from
said Operating Account, except that Lessee may withdraw funds from said account
only if an Event of Default by Manager has occurred under this Agreement or an
event has occurred that with the passage of time might be an Event of Default by
Manager. Prior to any such withdrawal by Lessee, Lessee shall provide Notice of
same to Manager, and Manager shall not be liable to Lessee for any checks
written by Manager for operating expenses which are returned due to insufficient
funds caused by such Lessee withdrawal. From time to time both Manager and
Lessee shall designate signatory parties on such account and shall provide
written notice of such designation or change in designation to the other party,
and the signatures of such persons shall be formally and expressly recognized by
the bank in which such account or accounts are maintained. The bank or banks to
be utilized shall be selected and approved by Lessee and Manager. All monies
received shall be deposited in, including, but not limited to, Gross Revenues,
and expenses paid, including, but not limited to, Deductions, shall be paid from
such bank checking account(s) except that Manager shall have the right to
maintain payroll and petty cash funds and to make payments therefrom as the same
are customary and utilized in the lodging business. Such funds shall not be
commingled with Manager's funds. Lessee shall have the right, at its expense, to
audit said account or accounts at any reasonable time.

         Manager may establish one or more separate bank accounts for handling
payroll costs in the name of Lessee. Such accounts shall be in a bank selected
by Manager and approved by Lessee, and shall be handled exclusively by the
individuals designated by Manager and approved in writing by Lessee. Funds shall
be deposited in the payroll account or accounts from the Operating Account, as
needed, in order to meet payroll requirements.

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<PAGE>

         Until otherwise prescribed by Lessee in writing, the Operating Account
shall be under the control of Manager, without prejudice, however, to Manager's
obligation to account to Lessee as and when provided herein. All receipts and
income, including without limitation, Gross Revenues shall be promptly deposited
in the Operating Account. Checks or other documents of withdrawal shall be
signed only by the individual representatives of Manager approved in writing by
Lessee and duly recognized for such purpose by the bank or banks in which the
referenced accounts are maintained. Manager shall supply Lessee with fidelity
bonds or other insurance insuring the fidelity of authorized signatories to such
accounts, unless said bonds or other insurance shall have been placed by Lessee
and delivered directly by the bonding or insurance company to Lessee. The cost
of such fidelity bonds or other insurance shall be a Deduction, at Lessee's
expense, and subject to Lessee's approval. Neither Lessee nor Manager shall be
responsible for any losses occasioned by the failure or insolvency of the bank
or banks in which the referenced accounts are maintained. Upon expiration or
termination of this Agreement and the payment to Manager of all amounts due
Manager hereunder upon such expiration or termination, as provided in this
Agreement, all remaining amounts in the referenced accounts shall be transferred
forthwith to Lessee, or made freely available to Lessee.

         Manager shall not be required to advance funds, and Manager shall not
be obligated to incur any liability or obligation for Lessee's account, without
assurance that necessary funds for the discharge thereof will be provided by
Lessee.

         All reserve accounts established pursuant to this Agreement shall be
placed in segregated interest-bearing accounts in the name of Lessee which
interest shall be added to such reserve and serve to reduce the amount required
to be placed in such reserve account.

                                   ARTICLE XV
                                ACCOUNTING SYSTEM

         15.01 BOOKS AND RECORDS. Manager shall maintain an adequate and
separate accounting system in connection with its management and operation of
the Premises. The books and records shall be kept in accordance with GAAP and
the Uniform System of Accounts (to the extent consistent with GAAP) and shall be
maintained at all times either on the Premises, at the principal office of the
Manager, or in storage, for at least three (3) years after the Fiscal Year to
which the books and records relate. Lessee, the beneficial owners of Lessee, the
Landlords (to the extent permitted under the Leases), any Holder (to the extent
permitted under the Hotel Mortgage), any Franchisor (to the extent permitted
under any applicable Franchise Agreement), or their respective employees or duly
authorized agents, shall have the right and privilege of examining and
inspecting the books and records at any reasonable time. Upon termination of
this Agreement, all such books and records shall be turned over to Lessee so as
to insure the orderly continuance of the operation of the Hotels; provided
however, that all such books and records thereafter shall be available to
Manager at the Hotels at all reasonable times for inspection, audit, examination
and copying for a period of three (3) years.

         15.02 MONTHLY FINANCIAL STATEMENTS. Within twenty-five (25) days
following each Accounting Period, Manager shall furnish Lessee with respect to
each of the Hotels an accrual basis balance sheet on Manager's standard format
in reasonable detail, together with a reasonably detailed accrual basis profit
and loss statement for the calendar month next preceding

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and with a cumulative calendar year accrual basis profit and loss statement to
date, including a comparison to the Annual Operating Budget and the Capital
Improvements Budget and a statement of cash flows for each monthly and
cumulative period for which a profit and loss statement is prepared. Further,
from time to time as reasonably requested by Lessee, Manager shall provide a
statement of bank account balances, an allocation to reserve accounts, a sources
and uses statement, a narrative discussing any of the aforementioned reports and
material variances from the Annual Operating Budget and the Capital Improvements
Budget, such other reports and financial statements as Lessee may reasonably
request and as are customarily provided by managers of similar hotel properties
in the area of the Hotels without Manager receiving additional fees to provide
same.

         15.03 ANNUAL FINANCIAL STATEMENTS. Within forty-five (45) days after
the end of each Fiscal Year, Manager shall furnish to Lessee year-end financial
statements for the Hotels (including a balance sheet, income statement and
statement of sources and uses of funds) which statements shall be unaudited and
shall be prepared in accordance with GAAP and the Uniform System of Accounts (to
the extent consistent with GAAP). Lessee will engage an independent national
certified public accounting firm with hospitality experience and reasonably
acceptable to Lessee to provide audited annual financial statements. Manager
shall cooperate in all respects with such accountant in the preparation of such
statements, including the delivery of any financial information generated by
Manager pursuant to the terms of this Agreement and reasonably required by the
Lessee's accountant to prepare such audited financial statements.

                                  ARTICLE XVI
                                PAYMENT BY LESSEE

         16.01 PAYMENT OF BASE MANAGEMENT FEE. On the fifth (5th) day of each
month during the term of this Agreement, Manager shall be paid out of the
Operating Account, the Base Management Fee for the preceding Accounting Period,
as determined from the books and records referred to in ARTICLE XV.

         16.02 DISTRIBUTIONS. Subject to retention of Reasonable Working Capital
(including any amounts as required by the Capital Improvement Budget) and
retention of such reserves as may be required under any Hotel Mortgage and/or
Ground Lease, as applicable, Manager shall deliver to Lessee from the Operating
Account, any excess Working Capital for the preceding Accounting Period on the
25th day of the following month, and such amounts of Lessee's money in the
possession or under the control of Manager as Lessee shall from time to time
request. For purposes of this Article "REASONABLE WORKING CAPITAL" shall mean an
amount reasonably determined by Manager at the same time as the monthly
financial statements are prepared pursuant to SECTION 15.02 hereof, but in no
event to exceed a sum equal to a ratio of current assets to current liabilities
of 2:1 (but excluding from such calculation cash restricted or unavailable under
any Cash Management Agreement).

         16.03 PAYMENT OPTION. Management Fees shall be paid in cash, except
that subject to the requirements of SECTION 5.02.6 and SECTION 28.08 Manager may
request, no later than thirty (30) days prior to the payment due date, by Notice
to Lessee (such request to be subject to the approval of a majority of the
Independent Directors of AHT, in their sole discretion, and to any applicable
restrictions of a national securities exchange (including NASDAQ NMS and

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<PAGE>

NASDAQ Small Cap) and to federal and state securities laws), payment of up to
one-third (1/3rd) of its Base Management Fee and up to one hundred percent
(100%) of its Incentive Fee, in the form of shares of common stock of AHT priced
at the "Strike Price," or in the form of stock options priced in accordance with
the "Black-Scholes Model" (the "PAYMENT OPTION REQUEST"), as follows:

         A.       COMMON STOCK AT "STRIKE PRICE". The number of shares of common
                  stock of AHT to be issued in lieu of the applicable Base
                  Management Fees and/or Incentive Fee as noted in the Payment
                  Option Request (the "DESIGNATED FEES") shall be based upon the
                  "Strike Price" of such common stock determined as follows: The
                  term "STRIKE PRICE" shall be and mean the amount obtained
                  (rounded upward to the next highest cent) by determining the
                  simple average of the daily closing price of the common stock
                  of AHT for the twenty (20) trading days ending on the last
                  trading day of the calendar week immediately preceding the
                  applicable payment due date on the New York Stock Exchange or,
                  if the shares of such common stock are not then being traded
                  on the New York Stock Exchange, then on the principal stock
                  exchange (including without limitation NASDAQ NMS or NASDAQ
                  Small Cap) on which such common stock is then listed or
                  admitted to trading as determined by AHT or, if such common
                  stock is not then so listed or admitted to trading the average
                  of the last reported closing bid and asked prices on such days
                  in the over-the-counter market or, if no such prices are
                  available, the fair market value per share of such common
                  stock, as determined by a majority of the Independent
                  Directors of AHT in their sole discretion. The Strike Price
                  shall not be subject to any adjustment as a result of the
                  issuance of any additional shares of common stock by AHT for
                  any purpose, except for stock splits (whether accomplished by
                  stock dividends or otherwise) or reverse stock splits
                  occurring during the 20 trading days referenced in the
                  calculation of the Strike Price. Upon determination of the
                  Strike Price for such common stock (and provided payment in
                  the form of common stock has been approved by the board of
                  directors of AHT), AHT agrees to issue to Manager the number
                  of shares of common stock in AHT determined by dividing the
                  Designated Fees by the Strike Price per share of common stock,
                  and any balance remaining shall be paid to Manager in cash.

         B.       OPTIONS BASED ON BLACK-SCHOLES MODEL. The number of stock
                  options to be issued in lieu of the Designated Fees shall be
                  based upon the "Black-Scholes Model" as follows: The term
                  "BLACK-SCHOLES MODEL" means the Black-Scholes model for
                  valuing the "fair value" of an option calculated based on
                  historical data and calculated probabilities of future stock
                  prices, reasonably applied. Upon determination of the value of
                  an option on the date such options are to be issued, as
                  determined using the Black-Scholes Model (the "BLACK-SCHOLES
                  AMOUNT"), provided payment in the form of options has been
                  approved by the board of directors of AHT, AHT agrees to issue
                  to Manager the number of options for common stock of AHT
                  determined by dividing the Designated Fees by the
                  Black-Scholes Amount per option, and any balance remaining
                  shall be paid to Manager in cash. The "Strike Price" for any
                  option (which must be exercised within ten

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<PAGE>

                  (10) years of issuance), shall have the meaning of the term
                  "Strike Price" as used in subparagraph A above.

                                  ARTICLE XVII
                           RELATIONSHIP AND AUTHORITY

         Lessee and Manager shall not be construed as partners, joint venturers
or as members of a joint enterprise and neither shall have the power to bind or
obligate the other except as set forth in this Agreement. Nevertheless, Manager
is granted such authority and power as may be reasonably necessary for it to
carry out the provisions of this Agreement. This Agreement, either alone or in
conjunction with any other documents, shall not be deemed to constitute a lease
of any portion of the Premises. Nothing contained herein shall prohibit or
restrict Manager or any affiliate of Manager from operating, owning, managing,
leasing or constructing any hotel of any nature or description which may in any
manner compete with that of the Premises, except as otherwise set forth in the
Mutual Exclusivity Agreement; provided that Manager agrees to comply with the
conflicts policies of AHT. Except as otherwise expressly provided in this
Agreement, (a) all debts and liabilities to third persons incurred by Manager in
the course of its operation and management of the Hotels in accordance with the
provisions of this Agreement shall be the debts and liabilities of Lessee only,
and (b) Manager shall not be liable for any such obligations by reason of its
management, supervision, direction and operation of the Hotels as agent for
Lessee. Manager may so inform third parties with whom it deals on behalf of
Lessee and may take any other reasonable steps to carry out the intent of this
paragraph.

                                 ARTICLE XVIII
                     DAMAGE, CONDEMNATION AND FORCE MAJEURE

         18.01 DAMAGE AND REPAIR. If, during the Term hereof, a Hotel is damaged
or destroyed by fire, casualty, or other cause, Lessee shall, subject to the
requirements of the applicable underlying Lease, repair or replace the damaged
or destroyed portion of the Hotel to the same condition as existed previously.
In the event the underlying Lease relating to such damaged Hotel is terminated
pursuant to the provisions of such Lease, Lessee may terminate this Agreement
with respect to such Hotel upon sixty (60) days' Notice from the date of such
damage or destruction, in which case this Agreement shall then terminate with
respect to such Hotel sixty (60) days from the date of such notice and neither
party shall have any further rights, obligations, liabilities or remedies one to
the other hereunder with respect to such Hotel, except as otherwise provided in
ARTICLE II (provided that no termination fees shall be payable by Lessee
pursuant to ARTICLE II) and SECTION 18.04. If this Agreement remains in effect
with respect to such damaged Hotel and the damage does not result in a reduction
of Gross Revenues at such Hotel, the Management Fee will be unabated. If
however, this Agreement remain in effect with respect to such Hotel, but the
damage does result in a reduction of Gross Revenues at such Hotel, Lessee shall
be entitled to partial, pro rata abatement with respect to the Management Fee
until such time as such Hotel is restored.

         18.02 CONDEMNATION.

         A.       In the event all or substantially all of a Hotel shall be
                  taken in any eminent domain, condemnation, compulsory
                  acquisition, or similar proceeding by any

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<PAGE>

                  competent authority for any public or quasi-public use or
                  purpose, this Agreement shall terminate with respect to such
                  Hotel, subject to the requirements of the applicable
                  underlying Lease. However, in any event of such termination,
                  Lessee shall give Manager at least fifteen (15) days prior
                  Notice of such termination. In the event of such termination,
                  neither party shall have any further rights, remedies,
                  obligations or liabilities one to the other hereunder with
                  respect to such Hotel except as otherwise provided in ARTICLE
                  II above (provided that no termination fees shall be payable
                  by Lessee pursuant to ARTICLE II).

         B.       If a portion of the Premises shall be taken by the events
                  described in SECTION 18.02A or the entire Premises
                  are temporarily affected, the result of either
                  of which is not to make it, in the reasonable business
                  judgment of Lessee, unreasonable to continue to operate the
                  applicable Hotel, subject to the requirements of the
                  applicable underlying Lease, this Agreement shall not
                  terminate with respect to such Hotel. However, so much of any
                  award for any such partial taking or condemnation shall be
                  made available to the extent necessary to render the
                  applicable Premises equivalent to its condition prior to such
                  event and the balance shall be paid to Lessee or the Holder,
                  if required by any Hotel Mortgage covering the Premises.

         18.03 FORCE MAJEURE. If an event of Force Majeure directly involves a
Hotel and has a significant adverse effect upon the continued operations of such
Hotel, then Lessee shall be entitled to terminate this Agreement with respect to
the applicable Hotel by written Notice within sixty (60) days from the date of
such Force Majeure, and this Agreement shall then terminate with respect to the
applicable Hotel sixty (60) days from such notice, in which event neither Lessee
nor Manager shall have any further rights, remedies, obligations or liabilities,
one to the other, hereunder, with respect to the applicable Premises except as
otherwise provided in ARTICLE II (provided that no termination fees shall be
payable by Lessee pursuant to ARTICLE II).

         18.04 LIQUIDATED DAMAGES IF CASUALTY.

         A.       CASUALTY OF INITIAL HOTEL. Notwithstanding anything contained
                  in this Agreement to the contrary, if any of the Initial
                  Hotels is damaged due to a casualty as set forth in SECTION
                  18.01 hereof, and Lessee elects, for any reason, not to
                  rebuild the applicable Initial Hotel, Lessee agrees to pay to
                  Manager (provided there does not then exist an Event of
                  Default by Manager under this Agreement, beyond any applicable
                  grace and cure periods), a termination fee as liquidated
                  damages and not as a penalty in an amount as if such Initial
                  Hotel was being sold, as set forth in SECTION 2.03(a)(II)
                  above.

         B.       CASUALTY OF A FUTURE HOTEL. Notwithstanding anything contained
                  in this Agreement to the contrary, if any of the Future Hotels
                  is damaged pursuant to a casualty as set forth in SECTION
                  18.01 hereof within the first year of the initial 10-year term
                  for such hotel, and Lessee elects, for any reason, not to
                  rebuild such Future Hotel, Lessee agrees to pay Manager
                  (provided there does not then exist an Event of Default by
                  Manager beyond any applicable cure periods), a termination
                  fee, if any, that would be owed if such hotel were then sold,
                  as set forth in SECTION

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<PAGE>

                  2.03(a)(i) above. However, if after the first year of the
                  initial 10-year term for a Future Hotel, such hotel is damaged
                  and Lessee elects not to rebuild such hotel even though
                  sufficient casualty proceeds are available to do so, then
                  Lessee will pay to Manager a termination fee (provided there
                  does not then exist an Event of Default by Manager beyond any
                  applicable cure periods), equal to the product obtained by
                  multiplying (i) 65% of the aggregate Base Management Fee and
                  Incentive Fee estimated to be paid Manager budgeted in the
                  Annual Operating Budget applicable to such Future Hotel (but
                  in no event less than the Base Management Fee and Incentive
                  Fee for the preceding full Fiscal Year) by (ii) nine (9).

         Payment of the termination fees set forth in this SECTION 18.04 shall
be subject to SECTION 2.03(d) above with respect to liquidated damages.

         18.05 NO LIQUIDATED DAMAGES IF CONDEMNATION OR FORCE MAJEURE. No
liquidated damages shall be payable in the event of a condemnation relating to
any of the Hotels, provided that Manager shall be entitled to seek recovery from
the condemning authority for its loss of contract and this Agreement shall not
terminate for that purpose. No liquidated damages shall be payable by Lessee as
a result of its termination of this Agreement pursuant to SECTION 18.03 (Force
Majeure).

                                  ARTICLE XIX
                             DEFAULT AND TERMINATION

         19.01 EVENTS OF DEFAULT. The following shall constitute events of
default (each an "EVENT OF DEFAULT"):

         A.       The filing of a voluntary petition in bankruptcy or insolvency
                  or a petition for reorganization under any bankruptcy law by
                  Lessee or Manager;

         B.       The consent to any involuntary petition in bankruptcy or the
                  failure to vacate, within ninety (90) days from the date of
                  entry thereof, any order approving an involuntary petition by
                  Lessee or Manager;

         C.       The entering of an order, judgment or decree by any court of
                  competent jurisdiction, on the application of a creditor,
                  adjudicating Lessee or Manager as bankrupt or insolvent, or
                  approving a petition seeking reorganization or appointing a
                  receiver, trustee, or liquidator of all or a substantial part
                  of such party's assets, and such order, judgment or decree
                  continues unstayed and in effect for any period of ninety (90)
                  days or more;

         D.       The appointment of a receiver for all or any substantial
                  portion of the property of Lessee or Manager;

         E.       The failure of Lessee or Manager to make any payment required
                  to be made in accordance with the terms of this Agreement
                  within ten (10) days after receipt of

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<PAGE>

                  Notice, specifying said default with reasonable specificity,
                  when such payment is due and payable; or

         F.       The failure of Lessee or Manager to perform, keep or fulfill
                  any of the other covenants, undertakings, obligations or
                  conditions set forth in this Agreement, and the continuance of
                  such default for a period of thirty (30) days after written
                  notice of said failure; provided, however, if such default
                  cannot be cured within such thirty (30) day period and Lessee
                  or Manager, as the case may be, commences to cure such default
                  within such thirty (30) day period and thereafter diligently
                  and expeditiously proceeds to cure the same, such thirty (30)
                  day period shall be extended so long as it shall require
                  Lessee or Manager, as the case may be, in the exercise of due
                  diligence to cure such default, it being agreed that no such
                  extension (including the original 30 day cure period) shall be
                  for a period in excess of one hundred twenty (120) days.

         G.       The Manager does not qualify as an Eligible Independent
                  Contractor.

         19.02 CONSEQUENCE OF DEFAULT. Upon the occurrence of any Event of
Default, the non-defaulting party may give the defaulting party Notice of
intention to terminate this Agreement (after the expiration of any applicable
grace or cure period provided in SECTION 19.01), and upon the expiration of
thirty (30) days from the date of such notice, this Agreement shall terminate,
whereupon the non-defaulting party shall be entitled to pursue all of its rights
and remedies, at law or in equity, under this Agreement (including, without
limitation, any indemnity obligations which shall survive termination of this
Agreement) and any other rights and remedies available under Legal Requirements
except as otherwise expressly limited by the terms of ARTICLE II.
Notwithstanding the foregoing, in the event that an Event of Default is
applicable to one or more of the Hotels but not all of the Hotels, such
termination shall only be as to such applicable Hotel(s).

                                   ARTICLE XX
                              WAIVER AND INVALIDITY

         20.01 WAIVER. The failure of either party to insist upon a strict
performance of any of the terms or provisions of this Agreement or to exercise
any option, right or remedy herein contained, shall not be construed as a waiver
or as a relinquishment for the future of such term, provision, option, right or
remedy, but the same shall continue and remain in full force and effect. No
waiver by either party of any term or provision hereof shall be deemed to have
been made unless expressed in writing and signed by such party.

         20.02 PARTIAL INVALIDITY. In the event that any portion of this
Agreement shall be declared invalid by order, decree or judgment of a court,
this Agreement shall be construed as if such portion had not been inserted
herein except when such construction would operate as an undue hardship on the
Manager or Lessee or constitute a substantial deviation from the general intent
and purpose of said parties as reflected in this Agreement, in which event it
shall be terminated.

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<PAGE>

                                  ARTICLE XXI
                                   ASSIGNMENT

         Subject to the requirements of any Hotel Mortgage, Franchise Agreement,
Ground Lease or any of the Leases, neither party shall assign or transfer (by
operation of law or otherwise) or permit the assignment or transfer of this
Agreement without the prior written consent of the other (which may be withheld
in its sole discretion) and any such prohibited assignment or transfer shall be
null and void; provided, however, that Manager shall have the right, without
such consent, to assign its interest in this Agreement to any "Manager Affiliate
Entity", provided such Manager Affiliate Entity qualifies as an Eligible
Independent Contractor as of the date of such transfer. The term "MANAGER
AFFILIATE ENTITY" shall mean any entity controlled directly or indirectly by (i)
Archie Bennett, Jr. and/or Monty Bennett, (ii) family partnerships or trusts
(the sole members or beneficiaries of which are at all times lineal descendants
of Archie Bennett, Jr. or Monty Bennett (including step-children) and spouses of
any of the foregoing), or (iii) by lineal descendants of Archie Bennett, Jr. or
Monty Bennett (including step-children) and spouses of any of the foregoing. For
purposes hereof, "controlled" shall mean (i) the possession, directly or
indirectly of a majority of the voting power and capital stock or ownership
interest of such entity, or (ii) the power to direct or cause the direction of
the management and policies of such entity in the capacity of chief executive
officer, president, chairman, or other similar capacity where they are actively
engaged and/or involved in providing such direction or control and spend a
substantial amount of time managing such entity. Any such permitted assignee
shall be deemed to be the Manager for purposes of this Agreement provided such
assignee assumes all of Manager's future obligations under this Agreement
pursuant to an assumption agreement reasonably acceptable to Lessee. Any and all
such assignments, however, shall at all times be subject to the prior right,
title and interest of Lessee with respect to the Premises. An assignment by
Manager or any permitted assignee of its interest in this Agreement, shall not
relieve Manager or any such permitted assignee, as the case may be, from their
respective obligations under this Agreement, and shall inure to the benefit of,
and be binding upon, their permitted successors and assigns. For purposes of
this ARTICLE XXI any change in the ownership of the Manager or other event that
would cause the Manager to fail to be a Manager Affiliate Entity shall be deemed
to be a transfer of this Agreement, prohibited by this ARTICLE XXI unless first
consented to in writing by Lessee.

                                  ARTICLE XXII
                                     NOTICES

         All notices, demands, elections, or other communications that any party
this Agreement may desire or be required to be given hereunder shall be in
writing and shall be given by hand, by depositing the same in the United States
mail, first class, postage prepaid, certified mail, return receipt requested, or
by a recognized overnight courier service providing confirmation of delivery, to
the addresses set forth below, or at such address as may be designated by the
addressee upon written notice to the other party, (herein called "NOTICE").

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<PAGE>

                To Lessee:          Ashford TRS Corporation
                                    14180 Dallas Parkway, Suite 700
                                    Dallas, Texas 75254
                                    Attn:  Chief Financial Officer
                                    Fax: (972) 490-9605

                With a copy to:     Ashford  Hospitality Limited Partnership
                                    14180 Dallas Parkway, Suite 700
                                    Dallas, Texas 75254
                                    Attn:  General Counsel
                                    Fax: (972) 490-9605

                To Manager:         Remington Lodging & Hospitality L.P.
                                    14180 Dallas Parkway, Suite 900
                                    Dallas, Texas  75240
                                    Attn:  Monty Bennett
                                    Fax: (972) 980-2705

                With a copy to:     Remington Lodging & Hospitality L.P.
                                    14180 Dallas Parkway, Suite 700
                                    Dallas, Texas  75240
                                    Attn:  Legal Department
                                    Fax: (972) 490-9605

                To the Landlords:   c/o Ashford  Hospitality Limited Partnership
                                    14180 Dallas Parkway, Suite 700
                                    Dallas, Texas 75254
                                    Attn:  General Counsel
                                    Fax: (972) 490-9605

         All notices given pursuant to this ARTICLE XXII shall be deemed to have
been given (i) if delivered by hand on the date of delivery or on the date that
delivery was refused by the addressee, or (ii) if delivered by certified mail or
by overnight courier, on the date of delivery as established by the return
receipt or courier service confirmation (or the date on which the return receipt
or courier service confirms that acceptance of delivery was refused by the
addressee).

                                 ARTICLE XXIII
                         SUBORDINATION; NON-DISTURBANCE

         23.01 SUBORDINATION. This Agreement shall be subject and subordinate to
any Hotel Mortgage and Lease, and Manager agrees to enter into a lender-manager
or landlord-manager (as applicable) agreement with respect to each Hotel, which
agreement shall contain reasonable provisions, including, without limitation,
Manager's acknowledgment that its real estate interest in and to the applicable
Hotel, if any, created by this Agreement is subject and subordinate to the
applicable Hotel Mortgage or Lease, including providing any purchaser of such
Hotel at a foreclosure sale or deed-in-lieu of foreclosure, including the
Holder, with the right to terminate this Agreement with respect to the
applicable Hotel; provided, however, in no event will

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<PAGE>

Manager agree to subordinate or waive its right to receive fees, reimbursements
or indemnification payments under this Agreement arising prior to termination
(but (a) if this Agreement is terminated by the Holder or such purchaser or
Landlord (or its assignee) with respect to such Hotel, Manager shall not look to
the Holder for payment of such fees, reimbursements or indemnification payments
and Manager's right to receive such fees, reimbursements or indemnification
payments shall be subordinated to the Holder's rights and (b) if this Agreement
is not terminated by the Holder or such purchaser with respect to such Hotel,
then such fees, reimbursements or indemnification payments shall be payable by
the Holder or such purchaser). Notwithstanding the foregoing, Manager shall in
no event be obligated to perform its duties hereunder without payment and/or
reasonable assurance of payment of such fees, reimbursements or indemnification
payments.

         23.02 NON-DISTURBANCE AGREEMENT. Notwithstanding SECTION 23.01, Lessee
agrees that, prior to obtaining any Hotel Mortgage or executing any Lease,
Lessee will use its commercially reasonable efforts to obtain from each
prospective Holder or Landlord (as applicable), a Non-Disturbance Agreement
pursuant to which Manager's rights under this Agreement will not be disturbed as
a result of a default stemming from non-monetary factors which (i) relate to
Lessee and do not relate solely to the applicable Hotel, and (ii) are not
defaults by Manager under SECTION 19.01 of this Agreement. If Lessee desires to
obtain a Hotel Mortgage or to execute a Lease, Manager, on written request from
Lessee, shall promptly identify those provisions in the proposed Hotel Mortgage
or Lease documents which fall within the categories described in clauses (i) and
(ii) above, and Manager shall otherwise assist in expediting the preparation of
an agreement between the prospective Holder and/or Landlord and Manager which
will implement the provisions of this SECTION 23.02.

                                  ARTICLE XXIV
                    PROPRIETARY MARKS; INTELLECTUAL PROPERTY

         24.01 PROPRIETARY MARKS. During the Term of this Agreement, the name
"Remington," whether used alone or in connection with other another word(s), and
all proprietary marks (being all present and future trademarks, trade names,
symbols, logos, insignia, service marks, and the like) of Manager or any one of
its Manager Affiliate Entities, whether or not registered ("PROPRIETARY MARKS")
shall in all events remain the exclusive property of Manager and its Manager
Affiliate Entities. Lessee shall have no right to use any Proprietary Mark,
except during the term of this Agreement to have signage installed using any
Proprietary Mark in conformance with the specifications provided by Manager.
Upon Termination, any use of a Proprietary Mark by Lessee under this Agreement
shall immediately cease. Upon Termination, Manager shall have the option to
purchase, at their then book value, any items of the applicable Hotel's
Inventories and Fixed Asset Supplies as may be marked with a Proprietary Mark.
In the event Manager does not exercise such option, Lessee agrees that it will
use any such items not so purchased exclusively in connection with Hotels until
they are consumed.

         24.02 COMPUTER SOFTWARE AND EQUIPMENT. All "SOFTWARE" (meaning all
computer software and accompanying documentation, other than software which is
commercially available, which are used by Manager in connection with the
property management system, any reservation system and all future electronic
systems developed by Manager for use in the Hotels)

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<PAGE>

is and shall remain the exclusive property of Manager or any one of its Manager
Affiliate Entities (or the licensor of such Software, as the case may be), and
Lessee shall have no right to use, or to copy, any Software. Upon Termination,
Manager shall have the right to remove from the Hotels, without compensation to
Lessee, all Software, and any computer equipment which is utilized as part of a
centralized property management system or is otherwise considered proprietary by
Manager, excepting any software which is owned by the applicable Franchisor;
provided that Manager shall cooperate with Lessee in the transition of the
centralized management system to the new manager, including in the change of any
Software and computer equipment. If any of such computer equipment is owned by
Lessee, Manager shall reimburse Lessee for previous expenditures made by Lessee
for the purchase of such equipment, subject to a reasonable allowance for
depreciation.

         24.03 INTELLECTUAL PROPERTY. All "INTELLECTUAL PROPERTY" (meaning all
Software and manuals, brochures and directives issued by Manager to its
employees at the Hotel regarding procedures and techniques to be used in
operating the Hotel) shall at all times be proprietary to Manager or its
Affiliates, and shall be the exclusive property of Manager or its Affiliates.
Upon Termination, all Intellectual Property shall be removed from the Hotels by
Manager, without compensation to Lessee.

         24.04 BOOKS AND RECORDS. All Books and Records maintained with respect
to the Hotels, including guest records but excluding employee records, shall be
the sole property of Lessee but may be used by the Manager during the Term in
connection with its management and operation of the Hotels.

                                  ARTICLE XXV
                                 INDEMNIFICATION

         25.01 MANAGER INDEMNITY. Manager shall indemnify and hold Lessee (and
Lessee's agents, principals, shareholders, partners, members, officers,
directors, attorneys and employees) harmless from and against all liabilities,
losses, claims, damages, costs and expenses (including, but not limited to,
reasonable attorneys' fees and expenses) which are not covered by insurance
proceeds that may be incurred by or asserted against any such party and that
arise from (a) the fraud, willful misconduct or gross negligence of Manager;
provided, however, that the act or omission of any employee of Manager who is
not an Executive Employee, which act or omission is willful or constitutes fraud
or gross negligence on the part of such employee, shall not constitute fraud,
gross negligence or willful misconduct on the part of Manager unless Manager's
home office or regional staff, or an Executive Employee, acted with gross
negligence in employing, training, supervising or continuing the employment of
such employee; (b) the infringement of any of Manager's intellectual property
rights (including trademarks, software, etc.) on the intellectual property
rights of any third party; (c) any Excluded Employee Claims; (d) knowing or
reckless placing, discharge, leakage, use or storage, of hazardous materials on
the Premises or in the Hotels by Manager during the Term of this Agreement as
set forth in SECTION 28.09C; or (e) the breach by Manager of any provision of
this Agreement, including, without limitation, any action taken by Manager which
is beyond the scope of Manager's authority under this Agreement, which is not
cured within any applicable notice and cure periods. Lessee shall promptly
provide Manager with written notice of any claim or suit brought against it by a
third party which might result in such indemnification.

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Ashford TRS Corporation

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<PAGE>

         25.02 LESSEE INDEMNITY. Except with respect to matters for which
Manager is obligated to provide indemnification pursuant to SECTION 25.01, and
except with respect to matters that constitute a breach of any of the
representations, warranties or agreements made by any of the grantors pursuant
to the Omnibus Option Agreement dated May 15, 2003, among the Partnership and
the grantors named therein or pursuant to any of the closing documents or other
instruments, certificates or agreements delivered in connection therewith,
provided that such representations, warranties or agreements are then surviving
pursuant to the terms of said Omnibus Option Agreement. Lessee shall indemnify
and hold Manager (and Manager's agents, principals, shareholders, partners,
members, officers, directors, attorneys and employees) harmless from and against
all liabilities, losses, claims, damages, costs and expenses (including, but not
limited to, reasonable attorneys' fees and expenses) which are not covered by
insurance proceeds and that may be incurred by or asserted against such party
and that arise from or in connection with (a) the performance of Manager's
services under this Agreement; (b) the condition or use of the Hotels, to the
fullest extent permitted by law, including without limitation, any injury to
person(s) or damage to property or business by reason of any cause whatsoever in
or about the Hotels; (c) any Employee Related Termination Costs, including any
liability to which Manager is subjected pursuant to the WARN Act in connection
with the termination of this Agreement, provided that Manager has provided
notices in the form (other than any reference to the time period) required by
the WARN Act within five (5) business days of Manager's receipt of a notice of
the termination of this Agreement (excluding any termination of this Agreement
which results from the commission of any theft, embezzlement or other criminal
misappropriation of funds of the Hotels or from the Lessee or any fraud or
felony by any Executive Employee that relates to or materially affects the
operation or reputation of the Hotels); (d) the Employee Costs and Expenses as
set forth in ARTICLE IX herein above; or (e) any Employee Claims, but excluding
any Excluded Employee Claims. Manager shall promptly provide Lessee with written
Notice of any claim or suit brought against it by a third party which might
result in such indemnification. THIS INDEMNITY PROVISION IS INTENDED TO
INDEMNIFY MANAGER (i) AGAINST THE CONSEQUENCES OF ITS OWN NEGLIGENCE OR FAULT
WHEN MANAGER IS SOLELY NEGLIGENT OR CONTRIBUTORILY, PARTIALLY, JOINTLY,
COMPARATIVELY OR CONCURRENTLY NEGLIGENT WITH LESSEE OR ANY OTHER PERSON (BUT IS
NOT GROSSLY NEGLIGENT, HAS NOT COMMITTED AN INTENTIONAL ACT OR MADE INTENTIONAL
OMISSION) AND (II) AGAINST ANY LIABILITY OF MANAGER BASED ON ANY APPLICABLE
DOCTRINE OF STRICT LIABILITY.

         25.03 INDEMNIFICATION PROCEDURE. Any party obligated to indemnify the
other party under this Agreement (the "INDEMNIFYING PARTY") shall have the
right, by Notice to the other party, to assume the defense of any claim with
respect to which the other party is entitled to indemnification hereunder. If
the Indemnifying Party gives such notice, (i) such defense shall be conducted by
counsel selected by the Indemnifying Party and approved by the other party, such
approval not to be unreasonably withheld or delayed (provided, however, that the
other party's approval shall not be required with respect to counsel designated
by the Indemnifying Party's insurer); (ii) so long as the Indemnifying Party is
conducting such defense with reasonable diligence, the Indemnifying Party shall
have the right to control said defense and shall not be required to pay the fees
or disbursements of any counsel engaged by the other party for services rendered
after the Indemnifying Party has given the Notice provided for above to the
other party,

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Ashford TRS Corporation

                                       49
<PAGE>

except if there is a conflict of interest between the parties with respect to
such claim or defense; and (iii) the Indemnifying Party shall have the right,
without the consent of the other party, to settle such claim, but only provided
that such settlement involves only the payment of money, the Indemnifying Party
pays all amounts due in connection with or by reason of such settlement and, as
part thereof, the other party is unconditionally released from all liability in
respect of such claim. The other party shall have the right to participate in
the defense of such claim being defended by the Indemnifying Party at the
expense of the other party, but the Indemnifying Party shall have the right to
control such defense (other than in the event of a conflict of interest between
the parties with respect to such claim or defense). In no event shall (i) the
other party settle any claim without the consent of the Indemnifying Party so
long as the Indemnifying Party is conducting the defense thereof in accordance
with this Agreement; or (ii) if a claim is covered by the Indemnifying Party's
liability insurance, take or omit to take any action which would cause the
insurer not to defend such claim or to disclaim liability in respect thereof.

         25.04 SURVIVAL. The provisions of this Article shall survive the
termination of this Agreement with respect to acts, omissions and occurrences
arising during the Term.

         25.05 NO SUCCESSOR LIABILITY. Notwithstanding anything herein to the
contrary, Manager shall not be liable as a successor employer or entity for any
actions Manager's predecessors may have taken in the employer-employee
relationship with Manager's current or former employees or employees of
Manager's agents before the commencement of the term.

                                  ARTICLE XXVI
                                  FUTURE HOTELS

         Lessee acknowledges and agrees that any motel and/or hotel properties
leased by Lessee from any Affiliates of the Partnership (including the
Landlords) from and after the Effective Date ("FUTURE HOTELS"), may at the
election of the parties to the Mutual Exclusivity Agreement either be subject to
the terms and provisions of this Agreement effective upon execution of an
amendment to this Agreement (the "AMENDMENT") in the form of EXHIBIT "E"
attached hereto, or pursuant to a management agreement in form and substance
substantially similar to the terms of this Agreement with either Manager or an
Affiliate of Manager (provided said Affiliate constitutes an Eligible
Independent Contractor); provided that there does not then exist an uncured
Event of Default by Manager under this Agreement and the independent director
approval requirements under the Mutual Exclusivity Agreement have been
satisfied. Upon execution of such Amendment (as set forth therein), EXHIBIT "A"
(Hotel Information), EXHIBIT "B" (Description of Leases), EXHIBIT "B-1" (Legal
Descriptions for Sites), EXHIBIT "C" (Description of Franchise Agreements and
Franchisors), EXHIBIT "D" (Annual Operating Budget) to this Agreement shall be
amended to add the applicable information required by this Agreement with
respect to the Future Hotel(s) subject of the Amendment. Effective upon
execution of said Amendment, all terms and conditions of this Agreement shall be
deemed amended to include and apply to such Future Hotel(s).

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Ashford TRS Corporation

                                       50
<PAGE>

                                 ARTICLE XXVII
                               GOVERNING LAW VENUE

         THIS AGREEMENT AND ITS INTERPRETATION, VALIDITY AND PERFORMANCE SHALL
BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO ITS CONFLICTS OF
LAWS PRINCIPLES. IN THE EVENT ANY COURT OF LAW OF APPROPRIATE JUDICIAL AUTHORITY
SHALL HOLD OR DECLARE THAT THE LAW OF ANOTHER JURISDICTION IS APPLICABLE, THIS
AGREEMENT SHALL REMAIN ENFORCEABLE UNDER THE LAWS OF THE APPROPRIATE
JURISDICTION. THE PARTIES HERETO AGREE THAT VENUE FOR ANY ACTION IN CONNECTION
HEREWITH SHALL BE PROPER IN DALLAS COUNTY, TEXAS. EACH PARTY HERETO CONSENTS TO
THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT SITUATED IN ANY OF SUCH
LOCATIONS AND WAIVES ANY OBJECTION WHICH IT MAY HAVE PERTAINING TO IMPROPER
VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH
COURT.

                                 ARTICLE XXVIII
                                  MISCELLANEOUS

         28.01 RIGHTS TO MAKE AGREEMENT. Each party warrants, with respect to
itself, that neither the execution of this Agreement nor the finalization of the
transactions contemplated hereby shall violate any provision of law or judgment,
writ, injunction, order or decree of any court or governmental authority having
jurisdiction over it; result in or constitute a breach or default under any
indenture, contract, other commitment or restriction to which it is a party or
by which it is bound; or require any consent, vote or approval which has not
been given or taken. Each party covenants that it has and will continue to have
throughout the term of this Agreement and any extensions thereof, the full right
to enter into this Agreement and perform its obligations hereunder.

         28.02 AGENCY. Manager's limited agency established by this Agreement is
coupled with an interest and may not be terminated by Lessee until the
expiration of the Term of this Agreement except as otherwise provided in this
Agreement.

         28.03 FAILURE TO PERFORM. If Manager or Lessee at any time fails to
make any payments as specified or required hereunder or fails to perform any
other act required on its part to be made or performed hereunder without
limitation, then the other party after thirty (30) days' written notice to the
defaulting party may (but shall not be obligated to) pay any such delinquent
amount or perform any such other act on the defaulting party's part. Any sums
thus paid and all costs and expenses incurred in connection with the making of
such payment or the proper performance of any such act, together with interest
thereon at the lesser of (i) the interest rate allowed by the applicable usury
laws or (ii) at the Prime Rate plus three percent (3%), from the date that such
payment is made or such costs and expenses incurred, shall constitute a
liquidated amount to be paid by the defaulting party under this Agreement to the
other party on demand. For the purposes of this SECTION 28.03, the term "PRIME
RATE" shall mean the "prime rate" as published in the "Money Rates" section of
The Wall Street Journal; however, if such rate is, at any time during the Term
of this Agreement, no longer so published, the term "Prime Rate" shall mean the
average of the prime interest rates which are announced, from time to time, by
the three (3) largest banks (by assets) headquartered in the United States which
publish a "prime rate".

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Ashford TRS Corporation

                                       51
<PAGE>

         28.04 HEADINGS. Headings of Articles and Sections are inserted only for
convenience and are in no way to be construed as a limitation on the scope of
the particular Articles or Sections to which they refer.

         28.05 ATTORNEYS' FEES AND COSTS. If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees, costs and necessary
disbursements in addition to any other relief to which such party may be
entitled.

         28.06 ENTIRE AGREEMENT. This Agreement, together with other writings
signed by the parties expressly stated to be supplementary hereto and together
with any instruments to be executed and delivered pursuant to this Agreement,
constitutes the entire agreement between the parties and supersedes all prior
understandings and writings, and may be changed only by a writing signed by the
parties hereto.

         28.07 CONSENTS. Whenever the consent or approval of Lessee is required
under the terms of this Agreement, unless otherwise stated to the contrary, such
consent or approval may be granted or withheld by Lessee in its reasonable
discretion.

         28.08 ELIGIBLE INDEPENDENT CONTRACTOR. During the Term of this
Agreement, Manager shall at all times qualify as an "eligible independent
contractor" as defined in Section 856(d)(9) of the Code ("ELIGIBLE INDEPENDENT
Contractor"). To that end, during the Term of this Agreement, Manager agrees
that:

                  (a) Manager shall not conduct wagering activities at any of
         the Hotels;

                  (b) Manager shall not own, directly or indirectly (within the
         meaning of Section 856(d)(5) of the Code), more than thirty-five
         percent (35%) of the outstanding stock of AHT;

                  (c) no more than thirty-five percent (35%) of the Manager's
         partnership interest (in its assets or net profits) shall be owned
         (within the meaning of Section 856(d)(5) of the Code), directly or
         indirectly, by one or more persons owning thirty-five percent (35%)
         (within the meaning of Section 856(d)(5) of the Code) or more of the
         outstanding stock of AHT;

                  (d) neither AHT, the Partnership, the Landlords, nor the
         Lessee, shall derive any income from the Manager or any of its
         subsidiaries; and

                  (e) Manager (or a person who is a "related person" within the
         meaning of Section 856(d)(9)(F) of the Code (a "RELATED PERSON") with
         respect to Manager) shall be actively engaged in the trade or business
         of operating "qualified lodging facilities" within the meaning of
         Section 856(d)(9)(D) of the Code (defined below) for one or more
         persons who are not Related Persons with respect to AHT or Lessee
         ("UNRELATED PERSONS"). For purposes of determining whether the
         requirement of this paragraph (e) has been met, Manager shall be
         treated as being "actively engaged" in such a trade or business if
         Manager (i) derives at least 10% of both its profits and revenue from

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                                       52
<PAGE>

         operating "qualified lodging facilities" within the meaning of Section
         856(d)(9)(D) of the Code for Unrelated Persons or (ii) complies with
         any regulations or other administrative guidance under Section
         856(d)(9) of the Code that provide a "safe harbor" rule with respect to
         the hotel management business with Unrelated Persons that is necessary
         to qualify as an "eligible independent contractor" within the meaning
         of such Code section.

                  A "qualified lodging facility" is defined in Section
         856(d)(9)(D) of the Code and means a "Lodging Facility" (defined
         below), unless wagering activities are conducted at or in connection
         with such facility by any person who is engaged in the business of
         accepting wagers and who is fully authorized to engage in such business
         at or in connection with such facility. A "LODGING FACILITY" is a
         hotel, motel or other establishment more than one-half of the dwelling
         units in which are used on a transient basis, and includes customary
         amenities and facilities operated as party of, or associated with, the
         lodging facility so long as such amenities and facilities are customary
         for other properties of a comparable size and class owned by other
         owners unrelated to AHT.

         28.09 ENVIRONMENTAL MATTERS.

         A.       For purposes of this SECTION 28.09, "hazardous materials"
                  means any substance or material containing one or more of any
                  of the following: "hazardous material," "hazardous waste,"
                  "hazardous substance," "regulated substance," "petroleum,"
                  "pollutant," "contaminant," or "asbestos," as such terms are
                  defined in any applicable environmental law, in such
                  concentration(s) or amount(s) as may impose clean-up, removal,
                  monitoring or other responsibility under any applicable
                  environmental law, or which may present a significant risk of
                  harm to guests, invitees or employees of the Hotels.

         B.       Regardless of whether or not a given hazardous material is
                  permitted on the Premises under applicable environmental law,
                  Manager shall only bring on the Premises such hazardous
                  materials as are needed in the normal course of business of
                  the Hotels.

         C.       In the event of the discovery of hazardous materials (as such
                  term may be defined in any applicable environmental law) on
                  the Premises or in the Hotels during the Term of this
                  Agreement, Lessee shall promptly remove, if required by
                  applicable environmental law, such hazardous materials,
                  together with all contaminated soil and containers, and shall
                  otherwise remedy the problem in accordance with all
                  environmental laws (except to the extent knowingly or
                  recklessly caused by Manager during the Term of this
                  Agreement, whereupon the responsibility to promptly remove
                  and/or remedy the environmental problem shall be that of
                  Manager and at Manager's sole cost and expense). All costs and
                  expenses of the compliance with all environmental laws shall
                  be paid by Lessee from its own funds (except to the extent
                  knowingly or recklessly caused by Manager during the Term of
                  this Agreement as set forth herein above).

         28.10 EQUITY AND DEBT OFFERINGS. Neither Lessee nor Manager (as an
"ISSUING PARTY") shall make reference to the other party (the "NON-ISSUING
PARTY") or any of its Affiliates

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Ashford TRS Corporation

                                       53
<PAGE>

in any prospectus, private placement memorandum, offering circular or offering
documentation related thereto (collectively, referred to as the "PROSPECTUS"),
issued by the issuing party, unless the non-issuing party has received a copy of
all such references. In no event will the non-issuing party be deemed a sponsor
of the offering described in any such Prospectus, nor will it have any
responsibility for the Prospectus, and the Prospectus will so state. The issuing
party shall be entitled to include in the Prospectus an accurate summary of this
Agreement but shall not include any proprietary mark of the non-issuing party
without prior written consent of the non-issuing party. The issuing party shall
indemnify, defend and hold the non-issuing party and its Affiliates (and their
respective directors, officers, shareholders, employees and agents) harmless
from and against all loss, costs, liability and damage (including attorneys'
fees and expenses, and the cost of litigation), arising out of any Prospectus or
the offering described therein, except for any such losses, costs, liability and
damage arising from material misstatements or omissions in a Prospectus based on
information provided in writing by the non-issuing party expressly for inclusion
in the Prospectus.

         28.11 ESTOPPEL CERTIFICATES. Lessee and Manager will, at any time and
from time to time within fifteen (15) days of the request of the other party or
a Holder, or a Franchisor (if so permitted under the applicable Franchise
Agreement), or a Landlord (if so permitted under the applicable Lease), execute,
acknowledge, and deliver to the other party and such Holder, Franchisor or
Landlord, as applicable, a certificate certifying:

         A.       That the Agreement is unmodified and in full force and effect
                  (or, if there have been modifications, that the same is in
                  full force and effect as modified and stating such
                  modifications);

         B.       The dates, if any, to which the distributions of excess
                  Working Capital have been paid;

         C.       Whether there are any existing Event(s) of Default or events
                  which, with the passage of time, would become an Event of
                  Default, by the other party to the knowledge of the party
                  making such certification, and specifying the nature of such
                  Event(s) of Default or defaults or events which, with the
                  passage of time, would become an Event of Default, if any; and

         D.       Such other matters as may be reasonably requested.

         Any such certificates may be relied upon by any party to whom the
certificate is directed.

         28.12 CONFIDENTIALITY. The Manager shall keep confidential all
non-public information obtained in connection with the services rendered under
this Agreement and shall not disclose any such information or use any such
information except in furtherance of its duties under this Agreement and as may
be required by any of its lenders or owners (provided said lenders and/or
owners, as applicable agree prior to disclosure to keep such information
confidential as set forth in this subparagraph 28.12), or as may be required by
applicable Legal Requirements or court order, or as may be required under any
Franchise Agreement, Hotel Mortgage, Lease or Ground Lease.

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                                       54
<PAGE>

         28.13 MODIFICATION. Any amendment, supplement or modification of this
Agreement must be in writing signed by both parties hereto.

         28.14 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which is an original and all of which collectively
constitute one instrument.

                           [SIGNATURE PAGES TO FOLLOW]

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Ashford TRS Corporation

                                       55
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers, as of the Effective Date.

                                     LESSEE:

                                     ASHFORD TRS CORPORATION, a Delaware
                                     corporation

                                     By:
                                        ----------------------------------------
                                        David J. Kimichik
                                        President

                                     MANAGER:

                                     REMINGTON LODGING & HOSPITALITY, L.P., a
                                     Delaware limited partnership

                                     By: Remington Lodging & Hospitality, LLC,
                                         a Delaware limited liability company,
                                         its General Partner

                                         By:
                                            ------------------------------------
                                            Monty Bennett
                                            President

AGREED TO AND ACCEPTED
FOR THE LIMITED PURPOSES
OF ARTICLE VIII SET FORTH
HEREIN:

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Ashford TRS Corporation

                                       56
<PAGE>

ASHFORD DALLAS LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

ASHFORD AUSTIN LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

ASHFORD LAS VEGAS LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

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Ashford TRS Corporation

                                       57
<PAGE>

ASHFORD DULLES LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

ASHFORD COVINGTON LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

ASHFORD HOLTSVILLE LP, a
Delaware limited partnership

By:      Ashford Properties General
         Partner LLC, a Delaware
         limited liability company

         By:
            -----------------------------------------
                  David A. Brooks
                  Vice President

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                                       58
<PAGE>

LIST OF EXHIBITS

Exhibit "A" - Hotel Information

Exhibit "B" - Description of Leases

Exhibit "B-1" - Legal Descriptions for Sites

Exhibit "C" - Description of Franchise Agreements and Franchisors

Exhibit "D" - Annual Operating Budget

Exhibit "E" - Form of Amendment to Hotel Master Management Agreement

LIST OF SCHEDULES

Schedule 1 - Competitive Set of Hotels

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                                       59<PAGE>
                                                                   EXHIBIT 10.11

                                 LEASE AGREEMENT

                        DATED AS OF _______________, 2003

                                     BETWEEN

                               [OWNER PARTNERSHIP]

                                    AS LESSOR

                                       AND

                             ASHFORD TRS CORPORATION

                                    AS LESSEE

Lease Agreement
Ashford TRS Corporation

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                              <C>
ARTICLE I LEASED PROPERTY; TERM...................................................................................1
   1.1      Leased Property.......................................................................................1
   1.2      Term..................................................................................................2
ARTICLE II DEFINITIONS............................................................................................2
   2.1      Definitions...........................................................................................2
ARTICLE III BASE RENT; PERCENTAGE RENT; ADDITIONAL CHARGES.......................................................12
   3.1      Rent.................................................................................................12
   3.2      Confirmation of Percentage Rent......................................................................15
   3.3      Additional Charges...................................................................................15
   3.4      Net Lease Provision..................................................................................16
   3.5      Conversion of Property...............................................................................16
ARTICLE IV IMPOSITIONS...........................................................................................16
   4.1      Payment of Impositions...............................................................................16
   4.2      Notice of Impositions................................................................................17
   4.3      Adjustment of Impositions............................................................................18
   4.4      Utility Charges......................................................................................18
ARTICLE V NO TERMINATION; ABATEMENT..............................................................................18
   5.1      No Termination, Abatement, etc.......................................................................18
   5.2      Abatement Procedures.................................................................................18
ARTICLE VI PERSONAL PROPERTY; LANDLORD'S LIEN....................................................................19
   6.1      Ownership of the Leased Property.....................................................................19
   6.2      Lessee's Personal Property...........................................................................19
   6.3      Lessor's Lien........................................................................................19
ARTICLE VII CONDITIONS; USE......................................................................................19
   7.1      Condition of the Leased Property.....................................................................19
   7.2      Use of the Leased Property...........................................................................20
   7.3      Lessor to Grant Easements, etc.......................................................................21
ARTICLE VIII COMPLIANCE WITH APPLICABLE LAWS.....................................................................21
   8.1      Compliance with Legal and Insurance Requirements, etc................................................21
   8.2      Legal Requirement Covenants..........................................................................21
   8.3      Environmental Covenants..............................................................................22
ARTICLE IX MAINTENANCE AND REPAIRS...............................................................................24
   9.1      Maintenance and Repair...............................................................................24
   9.2      Encroachments, Restrictions, Etc.....................................................................25
ARTICLE X ALTERATIONS............................................................................................25
   10.1     Alterations..........................................................................................25
ARTICLE XI PROHIBITED LIENS AND ENCUMBRANCES.....................................................................25
   11.1     Liens................................................................................................25
ARTICLE XII PERMITTED CONTESTS...................................................................................26
   12.1     Permitted Contests...................................................................................26
ARTICLE XIII INSURANCE REQUIREMENTS..............................................................................27
   13.1     General Insurance Requirements.......................................................................27
   13.2     Replacement Cost.....................................................................................28
   13.3     Waiver of Subrogation................................................................................28
</Table>

Lease Agreement
Ashford TRS Corporation

                                       i

<PAGE>

<Table>
<S>                                                                                                             <C>
   13.4     Form Satisfactory, etc...............................................................................29
   13.5     Increase in Limits...................................................................................29
   13.6     Blanket Policy.......................................................................................29
   13.7     No Separate Insurance................................................................................29
ARTICLE XIV INSURANCE PROCEEDS...................................................................................30
   14.1     Insurance Proceeds...................................................................................30
   14.2     Reconstruction in the Event of Damage or Destruction Covered by Insurance............................30
   14.3     Reconstruction in the Event of Damage or Destruction Not Covered by Insurance........................31
   14.4     Lessee's Property....................................................................................31
   14.5     Abatement of Rent....................................................................................31
   14.6     Damage Near End of Term..............................................................................31
   14.7     Waiver...............................................................................................31
   14.8     Termination Fees.....................................................................................31
ARTICLE XV CONDEMNATION; TAKING..................................................................................31
   15.1     Definitions..........................................................................................31
   15.2     Parties' Rights and Obligations......................................................................32
   15.3     Total Taking.........................................................................................32
   15.4     Allocation of Award..................................................................................32
   15.5     Partial Taking.......................................................................................32
   15.6     Temporary Taking.....................................................................................33
ARTICLE XVI EVENTS OF DEFAULT; REMEDIES; DAMAGES.................................................................33
   16.1     Events of Default....................................................................................33
   16.2     Surrender............................................................................................35
   16.3     Damages..............................................................................................35
   16.4     Waiver...............................................................................................36
   16.5     Application of Funds.................................................................................36
ARTICLE XVII LESSOR'S RIGHT TO CURE..............................................................................36
   17.1     Lessor's Right to Cure Lessee's Default..............................................................36
ARTICLE XVIII CAPITAL EXPENDITURE RESERVE........................................................................37
   18.1     Capital Expenditure Reserve..........................................................................37
ARTICLE XIX REIT REQUIREMENTS....................................................................................37
   19.1     REIT Requirements....................................................................................37
   19.2     Lessee Officer and Employee Limitation...............................................................38
   19.3     Management Agreement.................................................................................38
ARTICLE XX HOLDING OVER..........................................................................................39
   20.1     Holding Over.........................................................................................39
ARTICLE XXI RISK OF LOSS.........................................................................................39
   21.1     Risk of Loss.........................................................................................39
ARTICLE XXII INDEMNIFICATION.....................................................................................39
   22.1     Indemnification......................................................................................39
ARTICLE XXIII SUBLETTING AND ASSIGNMENT..........................................................................40
   23.1     Subletting and Assignment............................................................................40
   23.2     Attornment...........................................................................................41
ARTICLE XXIV REPORTING AND CERTIFICATION REQUIREMENTS............................................................41
   24.1     Officer's Certificates; Financial Statements; Budgets; Lessor's
            Estoppel Certificates and Covenants..................................................................41
</Table>

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Ashford TRS Corporation

                                       ii

<PAGE>

<Table>
<S>                                                                                                             <C>
   24.2     Operating Budget.....................................................................................42
   24.3     Capital Budget.......................................................................................42
ARTICLE XXV LESSOR'S DEFAULT; CURE RIGHTS........................................................................42
   25.1     Lessee's Right to Cure...............................................................................42
   25.2     Breach by Lessor.....................................................................................43
ARTICLE XXVI NOTICES.............................................................................................43
   26.1     Notices..............................................................................................43
ARTICLE XXVII MISCELLANEOUS PROVISIONS...........................................................................43
   27.1     Transfer of Licenses.................................................................................43
   27.2     Early Termination Rights; Termination Fees...........................................................43
   27.3     Substitution of Initial Hotel........................................................................44
   27.4     Compliance with Franchise Agreement..................................................................44
   27.5     Lessor's Right to Inspect............................................................................44
   27.6     Conveyance by Lessor.................................................................................44
   27.7     Lessor May Grant Liens...............................................................................45
   27.8     Non Disturbance Agreement............................................................................45
   27.9     Waiver of Presentment, etc...........................................................................45
   27.10       Memorandum of Lease...............................................................................45
   27.11       Usury.............................................................................................45
   27.12       No Waiver.........................................................................................45
   27.13       Remedies Cumulative...............................................................................45
   27.14       Acceptance of Surrender...........................................................................45
   27.15       No Merger of Title................................................................................46
   27.16       Quiet Enjoyment...................................................................................46
   27.17       Binding Effect....................................................................................46
   27.18       Entire Agreement; No Offer........................................................................46
   27.19       Severability......................................................................................46
   27.20       Counterparts......................................................................................47
   27.21       Governing Law.....................................................................................47
   27.22       Recitals; Headings................................................................................47
   27.23       Survival..........................................................................................47
   27.24       Exhibits..........................................................................................47
</Table>

                                LIST OF EXHIBITS

EXHIBIT "A" - Property Description

EXHIBIT "B" - Rent Components and Terms

EXHIBIT "C" - Management Agreement

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Ashford TRS Corporation

                                      iii

<PAGE>
                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT (hereinafter called "LEASE"), is made as of the
____ day of _______________, 2003, by and between [OWNER PARTNERSHIP], a
Delaware limited partnership (hereinafter called "LESSOR"), and ASHFORD TRS
CORPORATION, a Delaware corporation (hereinafter called "LESSEE"), and provides
as follows:

                                   WITNESSETH:

         Lessor owns fee title to the Leased Property (as defined below);

         Lessor desires to lease to Lessor and Lessee desires to lease from
Lessor, the Leased Property, pursuant to the terms and conditions of this Lease;

         NOW, THEREFORE, intending to be legally bound, Lessor, in consideration
of the payment of rent by Lessee to Lessor, the covenants and agreements to be
performed by Lessee, and upon the terms and conditions hereinafter stated, does
hereby rent and lease unto Lessee, and Lessee does hereby rent and lease from
Lessor, the Leased Property, as follows:

                                   ARTICLE I
                              LEASED PROPERTY; TERM

         1.1 LEASED PROPERTY. The Leased Property is comprised of Lessor's
interest in that certain [EMBASSY SUITES] [RADISSON] hotel located at
__________________ in ________ County, ______ and known as the "____________,"
as follows (collectively, "LEASED PROPERTY"):

         (a) the land and/or ground leasehold interests described in EXHIBIT "A"
attached hereto and by reference incorporated herein (the "LAND");

         (b) all buildings, structures and other improvements of every kind
including, but not limited to, alleyways and connecting tunnels, sidewalks,
utility pipes, conduits and lines (on-site and offsite), parking areas and
roadways appurtenant to such buildings and structures presently situated upon
the Land (collectively, the "IMPROVEMENTS");

         (c) all easements, rights and appurtenances relating to the Land and
the Improvements;

         (d) all equipment, machinery, fixtures, and other items of property
required or incidental to the use of the Improvements as a hotel, including all
components thereof, now and hereafter permanently affixed to or incorporated
into the Improvements, including, without limitation, all furnaces, boilers,
heaters, electrical equipment, heating, plumbing, lighting, ventilating,
refrigerating, incineration, air and water pollution control, waste disposal,
air-cooling and air-conditioning systems and apparatus, sprinkler systems and
fire and theft protection equipment, all of which to the greatest extent
permitted by law are hereby deemed by the parties hereto to constitute real
estate, together with all replacements, modifications, alterations and additions
thereto (collectively, the "FIXTURES");

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Ashford TRS Corporation

<PAGE>
         (e) all furniture and furnishings and all other items of personal
property (excluding Inventory and personal property owned by Lessee) located on,
and used in connection with, the operation of the Improvements as a hotel,
together with all replacements, modifications, alterations and additions
thereto; and

         (f) all existing occupancy leases within the Leased Property (including
any security deposits or collateral held by Lessor pursuant thereto).

         THE LEASED PROPERTY IS DEMISED IN ITS PRESENT CONDITION WITHOUT
REPRESENTATION OR WARRANTY (EXPRESSED OR IMPLIED) BY LESSOR AND SUBJECT TO THE
RIGHTS OF PARTIES IN POSSESSION, AND TO THE EXISTING STATE OF TITLE INCLUDING
ALL COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS OF RECORD
INCLUDING ALL APPLICABLE LEGAL REQUIREMENTS, THE LIEN OF FINANCING INSTRUMENTS,
MORTGAGES, DEEDS OF TRUST AND SECURITY DEEDS, AND INCLUDING OTHER MATTERS WHICH
WOULD BE DISCLOSED BY AN INSPECTION OF THE LEASED PROPERTY OR BY AN ACCURATE
SURVEY THEREOF.

         1.2 TERM. The term of the Lease (the "TERM") shall commence on
_______________, 2003 (the "COMMENCEMENT DATE") and shall end on
_______________, 2008 (the "EXPIRATION DATE"), unless sooner terminated in
accordance with the provisions hereof.

                                   ARTICLE II
                                   DEFINITIONS

         2.1 DEFINITIONS. For all purposes of this Lease, used in this Lease and
not otherwise defined, shall except as otherwise expressly provided or unless
the context otherwise requires, (a) the terms used in this Lease and not
otherwise defined, shall have the meanings assigned to them in this ARTICLE II
and include the plural as well as the singular, (b) all accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles as are at the time applicable, (c) all
references in this Lease to designated "Articles," "Sections" and other
subparagraphs are to the designated Articles, Sections and other subparagraphs
of this Lease and (d) the words "herein," "hereof" and "hereunder" and other
words of similar import refer to this Lease as a whole and not to any particular
Article, Section or other subparagraphs.

         ADDITIONAL CHARGES:  As defined in SECTION 3.3.

         AFFILIATE: As used in this Lease the term "AFFILIATE" of a person shall
mean (a) any person that, directly or indirectly, controls or is controlled by
or is under common control with such person, (b) any other person that owns,
beneficially, directly or indirectly, ten percent or more of the outstanding
capital stock, shares or equity interests of such person, or (c) any officer,
director, employee, partner or trustee of such person or any person controlling,
controlled by or under common control with such person (excluding trustees and
persons serving in similar capacities who are not otherwise an Affiliate of such
person). The term "PERSON" as used within

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Ashford TRS Corporation

                                       2
<PAGE>

this definition means and includes individuals, corporations, general and
limited partnerships, stock companies or associations, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business
trusts, or other entities and governments and agencies and political
subdivisions thereof. For the purposes of this definition, "CONTROL" (including
the correlative meanings of the terms "CONTROLLED BY" and "UNDER COMMON CONTROL
WITH"), as used with respect to any person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such person, through the ownership of voting securities,
partnership interests or other equity interests.

         AHT:  Ashford Hospitality Trust, Inc., a Maryland corporation.

         AWARD:  As defined in SECTION 15.1(c).

         BASE RATE: The rate of interest announced publicly by Citibank, N.A.,
in New York, New York, from time to time, as such bank's base rate. If no such
rate is announced or becomes discontinued, then such other rate as Lessor may
reasonably designate.

         BASE RENT:  As defined in ARTICLE III.

         BEVERAGE SALES: Shall mean gross revenue from (i) the sale of wine,
beer, liquor or other alcoholic beverages, whether sold in the bar or lounge,
delivered to a guest room, sold at meetings or banquets or at any other location
at the Leased Property, or (ii) non-alcoholic beverages sold in the bar or
lounge. Such revenues shall not include the following:

         (a)      Any gratuity or service charge added to a customer's bill or
                  statement in lieu of a gratuity which is paid to an employee;

         (b)      Any revenues that are subsequently credited, rebated or
                  refunded in the ordinary course of business; and

         (c)      Sales taxes or taxes of any other kind imposed on the sale of
                  alcoholic or other beverages.

         BUSINESS DAY: Each Monday, Tuesday, Wednesday, Thursday and Friday that
is not a day on which national banks in the City of Dallas, Texas, or in the
municipality wherein the Leased Property is located are closed.

         CAPITAL BUDGET:  As defined in SECTION 24.3.

         CAPITAL EXPENDITURES: Amounts expended to pay the costs of replacement
and renewals to the FF&E of the Leased Property and Capital Improvements.

         CAPITAL EXPENDITURE RESERVE:  As defined in SECTION 18.1(a).

         CAPITAL IMPROVEMENTS: Certain non-routine repairs and maintenance to
the building(s) of the Leased Property which are normally capitalized under
generally accepted accounting principles such as, but not limited to, exterior
and interior repainting, resurfacing, building walls, floors, roofs and parking
areas, and replacing folding walls and the like, and major repairs,

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Ashford TRS Corporation

                                       3
<PAGE>

alterations, improvements, renewals or replacement to the building structure of
the Leased Property or to its mechanical, electrical, heating, ventilating, air
conditioning, plumbing or vertical transportation systems.

         CERCLA: The Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.

         CLAIMS:  As defined in SECTION 12.1.

         CODE:  The Internal Revenue Code of 1986, as amended.

         COMMENCEMENT DATE: The date set forth in SECTION 1.2 as the
commencement date with respect to the Facility.

         CONDEMNATION:  As defined in SECTION 15.1(a).

         CONDEMNOR:  As defined in SECTION 15.1(d).

         CONSUMER PRICE INDEX: Consumer Price Index, published for Urban
Consumers for the U.S. City Average for all Items, 1982-84 = 100 issued by the
Bureau of Labor Statistics of the United States Department of Labor, as
published in The Wall Street Journal.

         CPI ADJUSTMENT YEAR: The calendar year next following the year in which
the Commencement Date occurs, if the Commencement Date occurs between January 1
and June 30, or the second calendar year following the year in which the
Commencement Date occurs, if the Commencement Date occurs between July 1 and
December 31.

         DATE OF TAKING:  As defined in SECTION 15.1(b).

         ENCUMBRANCE:  As defined in SECTION 27.7.

         ELIGIBLE INDEPENDENT CONTRACTOR: A management company that meets the
following requirements:

         (a)      The management company does not permit wagering activities to
                  be conducted at or in connection with the Facility.

         (b)      The management company does not own, directly or indirectly
                  (within the meaning of Section 856(d)(5) of the Code), more
                  than 35% of the outstanding stock of AHT.

         (c)      No more than 35% of its partnership interest (in its assets or
                  net profits) is owned, directly or indirectly (within the
                  meaning of Section 856(d)(5) of the Code), by one or more
                  Persons owning 35% (within the meaning of Section 856(d) of
                  the Code) or more of the outstanding stock of AHT.

         (d)      Neither AHT, the Lessor, nor the Lessee, derives any income
                  from the management company or any of its subsidiaries.

Lease Agreement
Ashford TRS Corporation

                                       4
<PAGE>

         (e)      At the time that the management company enters into a
                  management agreement with the Lessee to operate the Leased
                  Property, the management company (or any "RELATED PERSON"
                  within the meaning of Section 856(d)(9)(F) of the Code) is
                  actively engaged in the trade or business of operating
                  "qualified lodging facilities" within the meaning of Section
                  856(d)(9)(D) of the Code for any Person who is not a "related
                  person" within the meaning of Section 856(d)(9)(F) of the Code
                  with respect to AHT or the Lessee (an "UNRELATED PERSON"). For
                  purposes of determining whether the requirement of this
                  paragraph (e) has been met, a management company shall be
                  treated as being "actively engaged" in such a trade or
                  business if the management company (i) derives at least 10% of
                  both its profits and revenue from operating "qualified lodging
                  facilities" within the meaning of Section 856(d)(9)(D) of the
                  Code for Unrelated Persons or (ii) complies with any
                  regulations or other administrative guidance under Section
                  856(d)(9) of the Code that provide a "safe harbor" rule with
                  respect to the amount of hotel management business with
                  Unrelated Persons that is necessary to qualify as an "eligible
                  independent contractor" within the meaning of such Code
                  section.

                           A "qualified lodging facility" is defined in Section
                  856(d)(9)(D) of the Code and means a "Lodging Facility"
                  (defined below), unless wagering activities are conducted at
                  or in connection with such facility by any person who is
                  engaged in the business of accepting wagers and who is fully
                  authorized to engage in such business at or in connection with
                  such facility. A "LODGING FACILITY" is a hotel, motel or other
                  establishment more than one-half of the dwelling units in
                  which are used on a transient basis, and includes customary
                  amenities and facilities operated as party of, or associated
                  with, the lodging facility so long as such amenities and
                  facilities are customary for other properties of a comparable
                  size and class owned by other owners unrelated to AHT.

         ENVIRONMENTAL AUTHORITY: Any department, agency or other body or
component of any Government that exercises any form of jurisdiction or authority
under any Environmental Law.

         ENVIRONMENTAL AUTHORIZATION: Any license, permit, order, approval,
consent, notice, registration, filing or other form of permission or
authorization required under any Environmental Law.

         ENVIRONMENTAL LAWS: All applicable federal, state, local and foreign
laws and regulations relating to pollution of the environment (including without
limitation, ambient air, surface water, ground water, land surface or subsurface
strata), including, without limitation, laws and regulations relating to
emissions, discharges, a Release or threatened Release of Hazardous Materials or
otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials. Environmental
Laws include but are not limited to CERCLA, FIFRA, RCRA, SARA and TSCA.

         ENVIRONMENTAL LIABILITIES: Any and all obligations to pay the amount of
any judgment or settlement, the cost of complying with any settlement, judgment
or order for injunctive or other equitable relief, the cost of compliance or
corrective action in response to any notice, demand or request from an
Environmental Authority, the amount of any civil penalty or criminal

Lease Agreement
Ashford TRS Corporation

                                       5
<PAGE>

fine, and any court costs and reasonable amounts for attorney's fees, fees for
witnesses and experts, and costs of investigation and preparation for defense of
any claim or any Proceeding, regardless of whether such Proceeding is
threatened, pending or completed, that may be or have been asserted against or
imposed upon Lessor, Lessee, any Predecessor, the Leased Property or any
property used therein and arising out of:

         (a)      Failure of Lessee, Lessor, any Predecessor or the Leased
                  Property to comply at any time with all Environmental Laws;

         (b)      Presence of any Hazardous Materials on, in, under, at or in
                  any way affecting the Leased Property;

         (c)      A Release at any time of any Hazardous Materials on, in, at,
                  under or in any way affecting the Leased Property;

         (d)      Identification of Lessee, Lessor or any Predecessor as a
                  potentially responsible party under CERCLA or under any
                  Environmental Law similar to CERCLA;

         (e)      Presence at any time of any above-ground and/or underground
                  storage tanks, as defined in RCRA or in any applicable
                  Environmental Law on, in, at or under the Leased Property or
                  any adjacent site or facility; or

         (f)      Any and all claims for injury or damage to persons or property
                  arising out of exposure to Hazardous Materials originating or
                  located at the Leased Property, or resulting from operation
                  thereof or any adjoining property.

         EVENT OF DEFAULT:  As defined in SECTION 16.1.

         EXPIRATION DATE: The date set forth in SECTION 1.2 as the expiration
date with respect to the Facility.

         FACILITY: The hotel and/or other facility offering lodging and other
services or amenities being operated or proposed to be operated on the Leased
Property.

         FF&E:  Shall mean all Fixtures, furniture, furnishings and equipment.

         FIFRA: The Federal Insecticide, Fungicide, and Rodenticide Act, as
amended.

         FIRST ANNUAL ROOM REVENUES BREAK POINT: The amount of Room Revenues for
the applicable Lease Year corresponding to such term as set forth on EXHIBIT
"B".

         FIRST TIER ROOM REVENUE PERCENTAGE: The percentage corresponding to
such term as set forth on EXHIBIT "B".

         FISCAL YEAR:  The 12-month period from January 1 to December 31.

         FIXTURES:  As defined in SECTION 1.1(d).

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Ashford TRS Corporation

                                       6
<PAGE>

         FOOD SALES: Shall mean gross revenue from the sale, for on-site
consumption, of food and non-alcohol beverages sold at the Leased Property,
including in respect to guest rooms, banquet rooms, meeting rooms and other
similar rooms. Such revenues shall not include the following:

         (a)      Vending machine sales;

         (b)      Any gratuities or service charges added to a customer's bill
                  or statement in lieu of a gratuity which is paid to an
                  employee;

         (c)      Non-alcoholic beverages sold from the bar or lounge;

         (d)      Sales taxes or taxes of any other kind imposed on the sale of
                  food or non-alcoholic beverages; and

         (e)      Any revenues that are subsequently credited, refunded or
                  rebated in the ordinary course of business.

         FRANCHISE AGREEMENT: Any franchise license agreement with a national
franchisor under which the Facility is operated.

         FULL REPLACEMENT COST:  As defined in SECTION 13.2.

         GAAP: GAAP shall mean, as of any date of determination, accounting
principles (a) set forth as generally accepted in then currently effective
Opinions of the Accounting Principles Board of the American Institute of
Certified Public Accountants, (b) set forth as generally accepted in then
currently effective Statements of the Financial Accounting Standards Board or
(c) that are then approved by such other entity as may be approved by a
significant segment of the accounting profession in the United States of
America. The term "consistently applied," as used in connection therewith, means
that the accounting principles applied are consistent in all material respects
to those applied at prior dates or for prior periods.

         GOVERNMENT: The United States of America, any state, district or
territory thereof, any foreign nation, any state, district, department,
territory or other political division thereof, or any political subdivision of
any of the foregoing.

         GROSS REVENUES: shall mean all revenues and receipts of every kind
received from operating the Facility and all departments and parts thereof,
including but not limited to, income from both cash and credit transactions,
income from the rental of rooms, stores, offices, banquet rooms, conference
rooms, exhibits or sale space of every kind, license, lease and concession fees
and rentals (not including gross receipts of licensees, lessors and
concessionaires), vending machines, health club membership fees, food and
beverage sales, wholesale and retail sales of merchandise, service charges, and
proceeds, if any, from business interruption or other loss of income insurance;
provided, however, Gross Revenues shall not include (a) gratuities to the
Facility' employees, (b) federal, state or municipal excise, sales or use taxes
or similar impositions collected directly from customers, patrons or guests or
included as part of the sales prices of any goods or services paid over to
federal, state or municipal governments, (c) property

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Ashford TRS Corporation

                                       7
<PAGE>

insurance or condemnation proceeds (excluding proceeds from business
interruption coverage), (d) proceeds from the sale or refinance of assets other
than sales in the ordinary course of business, (e) funds furnished by the
Lessor, (f) judgments and awards, (g) the amount of all credits, rebates or
refunds (which shall be deductions from Gross Revenues) to customers, patrons or
guests, (h) the value of complimentary rooms, food and beverages, (i) interest
income, (j) lease security deposits, and (k) items constituting "allowances"
under the Uniform System.

         HAZARDOUS MATERIALS: All chemicals, pollutants, contaminants, wastes
and toxic substances, including without limitation:

         (a)      Solid or hazardous waste, as defined in RCRA or in any
                  Environmental Law;

         (b)      Hazardous substances, as defined in CERCLA or in any
                  Environmental Law;

         (c)      Toxic substances, as defined in TSCA or in any Environmental
                  Law;

         (d)      Insecticides, fungicides, or rodenticides, as defined in FIFRA
                  or in any Environmental Law; and

         (e)      Gasoline or any other petroleum product or byproduct,
                  polychlorinated biphenols, asbestos and urea formaldehyde.

         IMPOSITIONS: Collectively, all taxes (including, without limitation,
all ad valorem, sales and use, single business, gross receipts, transaction
privilege, rent or similar taxes as the same relate to or are imposed upon
Lessee or its business conducted upon the Leased Property), assessments
(including, without limitation, all assessments for public improvements or
benefit, whether or not commenced or completed prior to the date hereof and
whether or not to be completed within the Term), ground rents, water, sewer or
other rents and charges, excises, tax inspection, authorization and similar fees
and all other governmental charges, in each case whether general or special,
ordinary or extraordinary, or foreseen or unforeseen, of every character in
respect of the Leased Property or the business conducted thereon by Lessee
(including all interest and penalties thereon caused by any failure in payment
by Lessee), which at any time prior to, during or with respect to the Term
hereof may be assessed or imposed on or with respect to or be a lien upon (a)
Lessor's interest in the Leased Property, (b) the Leased Property, or any part
thereof or any rent therefrom or any estate, right, title or interest therein,
or (c) any occupancy, operation, use or possession of, or sales from, or
activity conducted on or in connection with the Leased Property, or the leasing
or use of the Leased Property or any part thereof by Lessee. Nothing contained
in this definition of Impositions shall be construed to require Lessee to pay
(1) any tax based on net income (whether denominated as a franchise or capital
stock or other tax) imposed on Lessor or any other person, or (2) any net
revenue tax of Lessor or any other person, or (3) any tax imposed with respect
to the sale, exchange or other disposition by Lessor of any Leased Property or
the proceeds thereof, or (4) any single business, gross receipts (other than a
tax on any rent received by Lessor from Lessee), transaction, privilege or
similar taxes as the same relate to or are imposed upon Lessor, except to the
extent that any tax, assessment, tax levy or charge that Lessee is obligated to
pay pursuant to the first sentence of this definition and that is in effect at
any time during the Term hereof is totally or

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Ashford TRS Corporation

                                       8
<PAGE>

partially repealed, and a tax, assessment, tax levy or charge set forth in
clause (1) or (2) is levied, assessed or imposed expressly in lieu thereof.

         IMPROVEMENTS:  As defined in SECTION 1.1(b).

         INDEMNIFIED PARTY: Either Lessee Indemnified Party or a Lessor
Indemnified Party.

         INDEMNIFYING PARTY: Any party obligated to indemnify an Indemnified
Party pursuant to SECTIONS 8.3 OR 22.1.

         INSURANCE REQUIREMENTS: All terms of any insurance policy required by
this Lease and all requirements of the issuer of any such policy.

         INVENTORY: All "INVENTORIES OF MERCHANDISE" and "INVENTORIES OF
SUPPLIES" as defined in the Uniform System and including any property of the
type described in Section 1221(1) of the Code.

         LAND:  As defined in SECTION 1.1(a).

         LEASE:  This Lease Agreement.

         LEASE YEAR: Any 12-month period from January 1 through December 31
during the Term, or any shorter period at the beginning or end of the Term.

         LEASED PROPERTY:  As defined in SECTION 1.1.

         LEGAL REQUIREMENTS: All federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting either the Leased Property or the maintenance,
construction, use or alteration thereof (whether by Lessee or otherwise),
whether or not hereafter enacted and in force, including (a) all laws, rules or
regulations pertaining to the environment, occupational health and safety and
public health, safety or welfare, and (b) any laws, rules or regulations that
may (1) require repairs, modifications or alterations in or to the Leased
Property or (2) in any way adversely affect the use and enjoyment thereof; and
all permits, licenses and authorizations and regulations relating thereto and
all covenants, agreements, restrictions and encumbrances contained in any
instruments, either of record or known to Lessee (other than encumbrances
created by Lessor without the consent of Lessee), at any time in force affecting
the Leased Property.

         LESSEE: The Lessee designated on this Lease and its respective
permitted successors and assigns.

         LESSEE INDEMNIFIED PARTY: Lessee, any Affiliate of Lessee, any other
Person against whom any claim for indemnification may be asserted hereunder as a
result of a direct or indirect ownership interest (including a stockholder's
interest) in Lessee, the officers, directors, stockholders, employees, agents
and representatives of Lessee and any corporate stockholder, agent, or
representative of Lessee, and the respective heirs, personal representatives,
successors and assigns of any such officer, director, stockholder, employee,
agent or representative.

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Ashford TRS Corporation

                                       9
<PAGE>

         LESSEE'S PERSONAL PROPERTY:  As defined in SECTION 6.2.

         LESSOR: The Lessor designated on this Lease and its respective
successors and assigns.

         LESSOR INDEMNIFIED PARTY: Lessor, any Affiliate of Lessor, including
AHT, any other Person against whom any claim for indemnification may be asserted
hereunder as a result of a direct or indirect ownership interest in Lessor, the
officers, trustees, directors, stockholders, partners, members, employees,
agents and representatives of any of the foregoing Persons and of any
stockholder, partner, member, agent, or representative of any of the foregoing
Persons, and the respective heirs, personal representatives, successors and
assigns of any such officer, trustee, director, partner, member, stockholder,
employee, agent or representative.

         LICENSES:  As defined in SECTION 27.1.

         MANAGEMENT AGREEMENT:  As defined in SECTION 19.2.

         MANAGER:  As defined in SECTION 19.2.

         NOTICE:  A notice given pursuant to ARTICLE XXVI.

         OFFICER'S CERTIFICATE: A certificate of Lessee signed by the chief
financial officer or another officer authorized so to sign by the board of
directors or by-laws of Lessee, or any other person whose power and authority to
act has been authorized by delegation in writing by any such officer.

         OPERATING BUDGET:  As defined in SECTION 24.2.

         OTHER REVENUE PERCENTAGE: The percentage corresponding to such term as
set forth on EXHIBIT "B".

         OTHER REVENUES: All revenues, receipts, and income of any kind derived
directly or indirectly from or in connection with the Facility and included in
Gross Revenues, other than Room Revenues, Food Sales and Beverage Sales.

         OVERDUE RATE: On any date, a rate equal to the Base Rate plus 5% per
annum, but in no event greater than the maximum rate then permitted under
applicable law.

         PAYMENT DATE: Any due date for the payment of any installment of Base
Rent.

         PERCENTAGE RENT:  As defined in SECTION 3.1(b).

         PERIOD REVENUES COMPUTATION:  As defined in SECTION 3.1(b).

         PERSON: Any Government, natural person, corporation, partnership or
other legal entity.

         PREDECESSOR: Any Person whose liabilities arising under any
Environmental Law have or may have been retained or assumed by Lessee, either
contractually or by operation of law, relating to the Leased Property.

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         PRIMARY INTENDED USE:  As defined in SECTION 7.2(b).

         PROCEEDING: Any judicial action, suit or proceeding (whether civil or
criminal), any administrative proceeding (whether formal or informal), any
investigation by a governmental authority or entity (including a grand jury),
and any arbitration, mediation or other non-judicial process for dispute
resolution.

         RCRA:  The Resource Conservation and Recovery Act, as amended.

         REAL ESTATE TAXES: All real estate taxes, including general and special
assessments, if any, which are imposed upon the Land, and any improvements
thereon.

         REIT REQUIREMENTS:  As defined in SECTION 19.1(a).

         RELEASE: A "Release" as defined in CERCLA or in any Environmental Law,
unless such Release has been properly authorized and permitted in writing by all
applicable Environmental Authorities or is allowed by such Environmental Law
without authorizations or permits.

         RENT:  As defined in SECTION 3.1.

         ROOM REVENUES: Shall mean gross revenue from the rental of guest rooms,
whether to individuals, groups or transients, but excluding the following:

         (a)      The amount of all credits, rebates or refunds to customers,
                  guests or patrons;

         (b)      All sales taxes or any other taxes imposed on the rental of
                  such guest rooms; and

         (c)      Any fees collected for amenities including, but not limited
                  to: telephone, laundry, Internet, movies or concessions.

         SARA: The Superfund Amendments and Reauthorization Act of 1986, as
amended.

         SECOND ANNUAL ROOM REVENUES BREAK POINT: The amount of Room Revenues
for the applicable Lease Year corresponding to such term as set forth on EXHIBIT
"B".

         SECOND TIER ROOM REVENUE PERCENTAGE: The percentage corresponding to
such term as set forth on EXHIBIT "B".

         STATE: The State or Commonwealth of the United States in which the
Leased Property is located.

         SUBSIDIARIES: One or more corporations in which Lessee owns, directly
or indirectly, more than 50% of the voting stock or control, as applicable.

         TAKING: A taking or voluntary conveyance during the Term hereof of all
or part of the Leased Property, or any interest therein or right accruing
thereto or use thereof, as the result of, or in settlement of, any Condemnation
or other eminent domain proceeding affecting the Leased Property whether or not
the same shall have actually been commenced.

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         TERM:  As defined in SECTION 1.2.

         THIRD TIER ROOM REVENUE PERCENTAGE: The percentage corresponding to
such term as set forth on EXHIBIT "B".

         TSCA:  The Toxic Substances Control Act, as amended.

         UNAVOIDABLE DELAY: Delays due to acts of God (including adverse weather
conditions), acts of the state or federal government in its sovereign or
contractual capacity, war, civil disturbance, riot or mob violence, terrorism,
earthquake, flood, fire or other casualty, epidemic, quarantine restriction,
labor strikes or lockout, freight embargo, or similar causes beyond the control
of the parties hereto.

         UNECONOMIC FOR ITS PRIMARY INTENDED USE: A state or condition of the
Facility such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing
body of Lessee, the Facility cannot be operated on a commercially practicable
basis for its Primary Intended Use, taking into account, among other relevant
factors, the number of usable rooms and projected revenues, such that Lessee
intends to, and shall, complete the cessation of operations at the Leased
Facility.

         UNIFORM SYSTEM: Shall mean the Uniform System of Accounts for the
Lodging Industry, 9th Revised Edition, as may be modified from time to time by
the International Association of Hospitality Accountants.

         UNSUITABLE FOR ITS PRIMARY INTENDED USE: A state or condition of the
Facility such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing
body of Lessee, due to casualty damage or loss through Condemnation, the
Facility cannot function as an integrated hotel facility consistent with
standards applicable to a well maintained and operated hotel.

                                  ARTICLE III
                 BASE RENT; PERCENTAGE RENT; ADDITIONAL CHARGES

         3.1 RENT. Lessee will pay to Lessor, in lawful money of the United
States of America which shall be legal tender for the payment of public and
private debts, in immediately available funds, at Lessor's address set forth in
ARTICLE II hereof or at such other place or to such other Person, as Lessor from
time to time may designate in a Notice, the greater of the following:

         (a) Base Rent: the annual amount of Base Rent set forth on EXHIBIT "B"
(the "BASE RENT"), which shall be payable one-twelfth (1/12th) monthly in
arrears on or before the first Business Day of the subsequent calendar month
beginning on the date as set forth on EXHIBIT "B"; provided, however, that Base
Rent shall be prorated as to any partial Lease Year; plus

         (b) Percentage Rent: an amount of percentage rent ("PERCENTAGE RENT"),
calculated for each calendar quarter, equal to the Period Revenues Computation
through the end of such calendar quarter for the applicable Lease Year, which
amount shall be payable on or before the

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fifteenth (15th) day of the following calendar quarter, beginning on the date as
set forth on EXHIBIT "B".

         The term "PERIOD REVENUES COMPUTATION" as used herein shall mean the
amount equal to the sum of, for the applicable Lease Year, (i) an amount equal
to the First Tier Room Revenue Percentage of all "Lease Year to date" Room
Revenues up to (but not exceeding) the First Annual Room Revenues Break Point,
(ii) an amount equal to the Second Tier Room Revenue Percentage of all "Lease
Year to date" Room Revenues in excess of the First Annual Room Revenues Break
Point but not exceeding the Second Annual Room Revenues Break Point, (iii) an
amount equal to the Third Tier Room Revenue Percentage of all "Lease Year to
date" Room Revenues in excess of the Second Annual Room Revenues Break Point,
and (iv) an amount equal to the Other Revenue Percentage of all "Lease Year to
date" Other Revenues.

         If the Term begins or ends in the middle of a calendar year, then the
number of calendar quarters falling within the Term during such calendar year
shall constitute a separate Lease Year. In that event, the First Annual Room
Revenues Break Point and the Second Annual Room Revenues Break Point shall be
multiplied by a fraction equal to (x) the number of calendar quarters (including
partial calendar quarters) in the Lease Year divided by (y) four.

         (c) Officer's Certificates. Additionally, an Officer's Certificate in
form reasonably acceptable to Lessor shall be delivered to Lessor quarterly of
each Lease Year during the Term with each Percentage Rent payment, setting forth
the calculation of such rent payment for such quarter. Such quarterly payments
shall be as set forth in SECTION 3.1(b).

         In addition, on or before January 25 of each year, commencing with
January 25 first following the end of the Fiscal Year in which the Commencement
Date occurs, Lessee shall deliver to Lessor an Officer's Certificate reasonably
acceptable to Lessor setting forth the computation of Percentage Rent accrued
and paid during the Fiscal Year that ended on the immediately preceding December
31. If the annual Percentage Rent due and payable for any Fiscal Year (as shown
in the applicable Officer's Certificate) exceeds the amount actually paid as
Percentage Rent by Lessee for such year, Lessee shall pay such excess to Lessor
at the time such certificate is delivered. If the Percentage Rent actually due
and payable for such Fiscal Year is shown by such certificate to be less than
the amount actually paid as Percentage Rent for the applicable Fiscal Year,
Lessor, at its option, shall reimburse such amount to Lessee or credit such
amount against the following months' Rent payments.

         Any difference between the annual Percentage Rent due and payable for
any Fiscal Year (as shown in the applicable Officer's Certificate or as adjusted
pursuant to this SECTION 3.1(c)) and the total amount of quarterly payments for
such Fiscal Year actually paid by Lessee as Percentage Rent, whether in favor of
Lessor or Lessee, shall bear interest at the Overdue Rate, which interest shall
accrue from the close of such Fiscal Year until the amount of such difference
shall be paid or otherwise discharged. Any such interest payable to Lessor shall
be deemed to be and shall be payable as Additional Charges.

         The obligation to pay Percentage Rent shall survive the expiration or
earlier termination of the Term, and a final reconciliation, taking into
account, among other relevant adjustments, any adjustments which are accrued
after such expiration or termination date but which related to

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Percentage Rent accrued prior to such termination date, and Lessee's good faith
best estimate of the amount of any unresolved contractual allowances, shall be
made not later than two years after such expiration or termination date, but
Lessee shall advise Lessor within sixty (60) days after such expiration or
termination date of Lessee's best estimate at that time of the approximate
amount of such adjustments, which estimate shall not be binding on Lessee or
have any legal effect whatsoever.

         (d) CPI Adjustments to Rent. For each Fiscal Year of the Term beginning
on or after the CPI Adjustment Year, the Base Rent then in effect, and the
threshold Room Revenues then included in the Period Revenues Computations set
forth in SECTION 3.1(b) shall be adjusted from time to time beginning in the CPI
Adjustment Year as follows:

         (1) The average Consumer Price Index for the most recently ended Fiscal
Year shall be divided by the average Consumer Price Index for the immediately
preceding Fiscal Year.

         (A) The new Base Rent for the then current Fiscal Year shall be the
adjusted amount obtained by multiplying the Base Rent for the immediately
preceding Fiscal Year by the quotient obtained in subparagraph (d)(1) above.

         (B) The new threshold dollar amount in the Period Revenues Computations
described in SECTION 3.1(b) above for the then current Fiscal Year shall be the
product of the threshold dollar amount of Room Revenues in effect in the most
recently ended Fiscal Year and the quotient obtained in subparagraph (d)(1)
above.

         By way of example, if the CPI Adjustment Year were 2002, the amount of
Base Rent and the threshold Room Revenues amounts in the Period Revenues
Computations for the Fiscal Year commencing January 1, 2003 would be adjusted to
reflect any change in the average Consumer Price Index from the Fiscal Year
ended December 31, 2001 as compared to the Fiscal Year ended December 31, 2002.
Base Rent and the threshold Room Revenues amounts in the Period Revenues
Computations for the Fiscal Year commencing January 1, 2004 would be the Base
Rent and threshold Room Revenues amounts applicable for the fiscal year ended
December 31, 2003 as further adjusted to reflect any change in the average
Consumer Price Index from December 31, 2003 as compared to December 31, 2002.

         Lessor shall calculate the annual adjustments as soon as reasonably
possible after the Consumer Price Index becomes available and shall notify
Lessee in writing of the amount of the annual adjustment, together with a copy
of the computation showing the adjustment amount. Adjustments calculated as set
forth above in the Base Rent and threshold Room Revenues amounts shall be
effective on January 1 of the Fiscal Year to which such adjusted amounts apply.
If Rent is paid in any Fiscal Year prior to the determination of the amount of
any adjustment to Base Rent or the threshold Room Revenues applicable for such
Fiscal Year, payment adjustments for any shortfall in or overpayment of rent
paid shall be made with the first Base Rent payment due after the amount of the
adjustments are determined.

         The "AVERAGE CONSUMER PRICE INDEX" for any period shall be the average
of the Consumer Price Index for each month during the period.

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         (2) If (i) a significant change is made in the number or nature (or
both) of items used in determining the Consumer Price Index, or (ii) the
Consumer Price Index shall be discontinued for any reason, the Bureau of Labor
Statistics shall be requested to furnish a new index comparable to the Consumer
Price Index, together with information which will make possible a conversion to
the new index in computing the adjustments to Rent hereunder. If for any reason
the Bureau of Labor Statistics does not furnish such an index and such
information, the parties will instead mutually select, accept and use such other
index or comparable statistics on the cost of living that is computed and
published by an agency of the United States or a responsible financial
periodical of recognized authority.

         (e) Capital Expenditures. The amounts funded to the Capital Expenditure
Reserve shall be a credit to Rent payable hereunder.

         3.2 CONFIRMATION OF PERCENTAGE RENT. Lessee shall utilize, or cause to
be utilized, an accounting system for the Leased Property in accordance with its
usual and customary practices, and in accordance with GAAP and the Uniform
System, that will accurately record all data necessary to compute Percentage
Rent, and Lessee shall retain, for at least four (4) years after the expiration
of each Fiscal Year (and in any event until the reconciliation described in
SECTION 3.1(c) for such Fiscal Year has been made), reasonably adequate records
conforming to such accounting system showing all data necessary to compute
Percentage Rent for the applicable Fiscal Years. Lessor, at its expense (except
as provided hereinbelow), shall have the right from time to time by its
accountants or representatives to audit the information that formed the basis
for the data set forth in any Officer's Certificate provided under SECTION
3.1(c) and, in connection with such audits, to examine all Lessee's records
(including supporting data, franchisor reports and sales and excise tax returns)
reasonably required to verify Percentage Rent, subject to any prohibitions or
limitations on disclosure of any such data under Legal Requirements. If any such
audit discloses a deficiency in the payment of Percentage Rent, and either
Lessee agrees with the result of such audit or the matter is otherwise
determined or compromised, Lessee shall forthwith pay to Lessor the amount of
the deficiency, as finally agreed or determined, together with interest at the
Overdue Rate from the date when said payment should have been made to the date
of payment thereof; provided, however, that as to any audit that is commenced
more than two years after the date Percentage Rent for any Fiscal Year is
reported by Lessee to Lessor, the deficiency, if any, with respect to such
Percentage Rent shall bear interest at the Overdue Rate only from the date such
determination of deficiency is made unless such deficiency is the result of
gross negligence or willful misconduct on the part of Lessee, in which case
interest at the Overdue Rate will accrue from the date such payment should have
been made to the date of payment thereof. If any such audit discloses that the
Percentage Rent actually due from Lessee for any Fiscal Year exceed those
reported and paid by Lessee by more than 3%, Lessee shall pay the cost of such
audit and examination. Any proprietary information obtained by Lessor pursuant
to the provisions of this Section shall be treated as confidential, except that
such information may be used, subject to appropriate confidentiality safeguards,
in any litigation between the parties and except further that Lessor may
disclose such information to prospective lenders. The obligations of Lessee
contained in this Section shall survive the expiration or earlier termination of
this Lease.

         3.3 ADDITIONAL CHARGES. In addition to the Base Rent and Percentage
Rent, (a) Lessee also will pay and discharge as and when due and payable all
other amounts, liabilities, obligations and Impositions that Lessee assumes or
agrees to pay under this Lease, and (b) in the event of any failure on the part
of Lessee to pay any of those items referred to in clause (a) of

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<PAGE>

this SECTION 3.3, Lessee also will promptly pay and discharge every fine,
penalty, interest and cost that may be added for non-payment or late payment of
such items (the items referred to in clauses (a) and (b) of this SECTION 3.3
being additional rent hereunder and being referred to herein collectively as the
"ADDITIONAL CHARGES"), and Lessor shall have all legal, equitable and
contractual rights, powers and remedies provided either in this Lease or by
statute or otherwise in the case of non-payment of the Additional Charges as in
the case of non-payment of the Base Rent, including, but not limited to, the
right, but not the obligation to pay such Additional Charges on behalf of the
Lessee and to require reimbursement thereof by Lessee, together with interest
thereon at the Overdue Rate. If any installment of Base Rent, Percentage Rent or
Additional Charges (but only as to those Additional Charges that are payable
directly to Lessor) shall not be paid on its due date, Lessee will pay Lessor on
demand, as Additional Charges, a late charge (to the extent permitted by law)
computed at the Overdue Rate on the amount of such installment, from the due
date of such installment to the date of payment thereof. To the extent that
Lessee pays any Additional Charges to Lessor pursuant to any requirement of this
Lease, Lessee shall be relieved of its obligation to pay such Additional Charges
to the entity to which they would otherwise be due and Lessor shall pay same
from monies received from Lessee.

         3.4 NET LEASE PROVISION. The Rent shall be paid absolutely net to
Lessor, so that this Lease shall yield to Lessor the full amount of the
installments of Base Rent, Percentage Rent and Additional Charges throughout the
Term, all as more fully set forth in ARTICLE V, but subject to any other
provisions of this Lease that expressly provide for adjustment or abatement of
Rent or other charges or expressly provide that certain expenses or maintenance
shall be paid or performed by Lessor.

         3.5 CONVERSION OF PROPERTY. If, during the Term, Lessee wishes to cease
food and beverage operations or institute food and beverage operations at the
Facility (all in accordance with the requirements of any applicable Franchise
Agreement), Lessee shall give Notice of such desire to Lessor. If, during the
Term, Lessor wishes (a) Lessee to cease food and beverage operations or to
institute food and beverage operations at the Facility (all in accordance with
the requirements of any applicable Franchise Agreement), or (b) to change the
franchise affiliation of the Facility or to make substantial renovations to the
Facility, Lessor shall give Notice thereof to Lessee. Following any such notice,
Lessor and Lessee shall commence negotiations to adjust Rent to reflect the
proposed renovation or change to the operation of the Facility, each acting
reasonably and in good faith, and subject to Lessor's reasonable satisfaction
that any Rent adjustment will not adversely affect AHT's status as a real estate
investment trust under the Code. All other terms of this Lease will remain
substantially the same. During negotiations, which shall not extend beyond sixty
(60) days, Lessee shall not "convert" the Facility and Lessor shall not change
the franchise or commence substantial renovations and Lessee shall continue
fulfilling its obligations under the existing terms of this Lease. If no
agreement is reached after such 60-day period, Lessee or Lessor, as appropriate,
shall withdraw such notice and this Lease shall continue in full force.

                                   ARTICLE IV
                                   IMPOSITIONS

         4.1 PAYMENT OF IMPOSITIONS. Subject to ARTICLE XII relating to
permitted contests, Lessee will pay, or cause to be paid, all Impositions (other
than Real Estate Taxes, which shall be

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<PAGE>

paid by Lessor) before any fine, penalty, interest or cost may be added for
non-payment, such payments to be made directly to the taxing or other
authorities where feasible, and will promptly furnish to Lessor copies of
official receipts or other satisfactory proof evidencing such payments. Lessee's
obligation to pay such Impositions shall be deemed absolutely fixed upon the
date such Impositions become a lien upon the Leased Property or any part
thereof. If any such Imposition may, at the option of the taxpayer, lawfully be
paid in installments (whether or not interest shall accrue on the unpaid balance
of such Imposition), Lessee may exercise the option to pay the same (and any
accrued interest on the unpaid balance of such Imposition) in installments and
in such event, shall pay such installments during the Term hereof (subject to
Lessee's right of contest pursuant to the provisions of ARTICLE XII) as the same
respectively become due and before any fine, penalty, premium, further interest
or cost may be added thereto. Lessor, at its expense, shall, to the extent
required or permitted by applicable law, prepare and file all tax returns in
respect of Lessor's net income, gross receipts, sales and use, single business,
transaction privilege, rent, ad valorem, franchise taxes, Real Estate Taxes and
taxes on its capital stock, and Lessee, at its expense, shall, to the extent
required or permitted by applicable laws and regulations, prepare and file all
other tax returns and reports in respect of any Imposition as may be required by
governmental authorities. If any refund shall be due from any taxing authority
in respect of any Imposition paid by Lessee, the same shall be paid over to or
retained by Lessee if no Event of Default shall have occurred hereunder and be
continuing. If an Event of Default shall have occurred and be continuing, any
such refund shall be paid over to or retained by Lessor. Any such funds retained
by Lessor due to an Event of Default shall be applied as provided in ARTICLE
XVI. Lessor and Lessee shall, upon request of the other, provide such data as is
maintained by the party to whom the request is made with respect to the Leased
Property as may be necessary to prepare any required returns and reports. Lessee
shall file all personal property tax returns in such jurisdictions where it is
legally required to so file. Lessor, to the extent it possesses the same, and
Lessee, to the extent it possesses the same, will provide the other party, upon
request, with cost and depreciation records necessary for filing returns for any
property so classified as personal property. Where Lessor is legally required to
file personal property tax returns, Lessor shall provide Lessee with copies of
assessment notices in sufficient time for Lessee to file a protest. Lessee may,
upon notice to Lessor, at Lessee's option and at Lessee's sole expense, protest,
appeal, or institute such other proceedings (in its or Lessor's name) as Lessee
may deem appropriate to effect a reduction of real estate or personal property
assessments for those Impositions to be paid by Lessee, and Lessor, at Lessee's
expense as aforesaid, shall fully cooperate with Lessee in such protest, appeal,
or other action. Lessee hereby agrees to indemnify, defend, and hold harmless
Lessor from and against any claims, obligations, and liabilities against or
incurred by Lessor in connection with such cooperation. Billings for
reimbursement of personal property taxes by Lessee to Lessor shall be
accompanied by copies of a bill therefor and payments thereof which identify the
personal property with respect to which such payments are made. Lessor, however,
reserves the right to effect any such protest, appeal or other action and, upon
notice to Lessee, shall control any such activity, which shall then go forward
at Lessor's sole expense. Upon such notice, Lessee, at Lessor's expense, shall
cooperate fully with such activities.

         4.2 NOTICE OF IMPOSITIONS. To the extent Lessor is notified of any
Impositions, Lessor shall give prompt Notice to Lessee of such Impositions
payable by Lessee hereunder, provided that Lessor's failure to give any such
Notice shall in no way diminish Lessee's

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obligations hereunder to pay such Impositions, but such failure shall obviate
any default hereunder for a reasonable time after Lessee receives Notice of any
Imposition which it is obligated to pay during the first taxing period
applicable thereto.

         4.3 ADJUSTMENT OF IMPOSITIONS. Impositions imposed in respect of the
tax-fiscal period during which the Term terminates shall be adjusted and
prorated between Lessor and Lessee, whether or not such Imposition is imposed
before or after such termination, and Lessee's obligation to pay its prorated
share thereof after termination shall survive such termination.

         4.4 UTILITY CHARGES. Lessee will be solely responsible for obtaining
and maintaining utility services to the Leased Property and will pay or cause to
be paid all charges for electricity, gas, oil, water, sewer and other utilities
used in the Leased Property during the Term.

                                   ARTICLE V
                            NO TERMINATION; ABATEMENT

         5.1 NO TERMINATION, ABATEMENT, ETC. Except as otherwise specifically
provided in this Lease, Lessee, to the extent permitted by law, shall remain
bound by this Lease in accordance with its terms and shall neither take any
action without the written consent of Lessor to modify, surrender or terminate
the same, nor seek nor be entitled to any abatement, deduction, deferment or
reduction of the Rent, or setoff against the Rent, nor shall the obligations of
Lessee be otherwise affected by reason of (a) any damage to, or destruction of,
any Leased Property or any portion thereof from whatever cause or any Taking of
the Leased Property or any portion thereof, (b) the lawful or unlawful
prohibition of, or restriction upon, Lessee's use of the Leased Property, or any
portion thereof, or the interference with such use by any Person, corporation,
partnership or other entity, or by reason of eviction by paramount title, (c)
any claim which Lessee has or might have against Lessor by reason of any default
or breach of any warranty by Lessor under this Lease or any other agreement
between Lessor and Lessee, or to which Lessor and Lessee are parties, (d) any
bankruptcy, insolvency, reorganization, composition, readjustment, liquidation,
dissolution, winding up or other proceedings affecting Lessor or any assignee or
transferee of Lessor, or (e) for any other cause whether similar or dissimilar
to any of the foregoing other than a discharge of Lessee from any such
obligations as a matter of law. Lessee hereby specifically waives all rights,
arising from any occurrence whatsoever, which may now or hereafter be conferred
upon it by law to (1) modify, surrender or terminate this Lease or quit or
surrender the Leased Property or any portion thereof, or (2) entitle Lessee to
any abatement, reduction, suspension or deferment of the Rent or other sums
payable by Lessee hereunder, except as otherwise specifically provided in this
Lease. The obligations of Lessee hereunder shall be separate and independent
covenants and agreements and the Rent and all other sums payable by Lessee
hereunder shall continue to be payable in all events unless the obligations to
pay the same shall be terminated pursuant to the express provisions of this
Lease or by termination of this Lease other than by reason of an Event of
Default.

         5.2 ABATEMENT PROCEDURES. In the event of a partial Taking as described
in SECTION 15.5, the Lease shall not terminate, but the Base Rent shall be
abated in the manner and to the extent that is fair, just and equitable to both
Lessee and Lessor, taking into consideration, among other relevant factors, the
number of usable rooms, the amount of square footage, or the revenues affected
by such partial Taking. If Lessor and Lessee are unable to agree upon the amount
of

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<PAGE>

such abatement within thirty (30) days after such partial Taking, the matter may
be submitted by either party to a court of competent jurisdiction for
resolution.

                                   ARTICLE VI
                       PERSONAL PROPERTY; LANDLORD'S LIEN

         6.1 OWNERSHIP OF THE LEASED PROPERTY. Lessee acknowledges that the
Leased Property is the property of Lessor and that Lessee has only the right to
the possession and use of the Leased Property upon the terms and conditions of
this Lease.

         6.2 LESSEE'S PERSONAL PROPERTY. At all times during the Term, Lessee
will maintain Inventory as is required to operate the Leased Property in the
manner contemplated by this Lease. Lessee may (and shall as provided
hereinbelow), at its expense, install, affix or assemble or place on any parcels
of the Land or in any of the Improvements, any items of personal property
(including Inventory) owned by Lessee (the "LESSEE'S PERSONAL PROPERTY"). Lessee
may, subject to the conditions set forth herein, remove any of Lessee's Personal
Property upon the expiration or any prior termination of the Term. All of
Lessee's Personal Property, other than Inventory, not removed by Lessee within
ten days following the expiration or earlier termination of the Term shall be
considered abandoned by Lessee and may be appropriated, sold, destroyed or
otherwise disposed of by Lessor without first giving Notice thereof to Lessee,
without any payment to Lessee and without any obligation to account therefor.
Lessee will, at its expense, restore the Leased Property to the condition
required by SECTION 9.1(d), including repair of all damage to the Leased
Property caused by the removal of Lessee's Personal Property, whether effected
by Lessee or Lessor.

         6.3 LESSOR'S LIEN. To the fullest extent permitted by applicable law,
Lessor is granted a lien and security interest on all of Lessee's Personal
Property now or hereinafter placed in or upon the Leased Property, and such lien
and security interest shall remain attached to Lessee's Personal Property until
payment in full of all Rent and satisfaction of all of Lessee's obligations
hereunder; provided, however, Lessor shall subordinate its lien and security
interest to that of any non-Affiliate of Lessee which finances such Lessee's
Personal Property or any non-Affiliate conditional seller of such Lessee's
Personal Property, the terms and conditions of such subordination to be
satisfactory to Lessor in the exercise of reasonable discretion. Lessee shall,
upon the request of Lessor, execute such financing statements or other documents
or instruments reasonably requested by Lessor to perfect the lien and security
interests herein granted.

                                  ARTICLE VII
                                 CONDITIONS; USE

         7.1 CONDITION OF THE LEASED PROPERTY. Lessee acknowledges receipt and
delivery of possession of the Leased Property. Lessee has examined and otherwise
has knowledge of the condition of the Leased Property and has found the same to
be satisfactory for its purposes hereunder. LESSEE IS LEASING THE LEASED
PROPERTY "AS IS" IN ITS PRESENT CONDITION. LESSEE WAIVES ANY CLAIM OR ACTION
AGAINST LESSOR IN RESPECT OF THE CONDITION OF THE LEASED PROPERTY. LESSOR MAKES
NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF

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THE LEASED PROPERTY, OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE,
DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, AS TO THE
QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING
AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE. LESSEE ACKNOWLEDGES THAT
THE LEASED PROPERTY HAS BEEN INSPECTED BY LESSEE AND IS SATISFACTORY TO IT.
Provided, however, to the extent permitted by law, Lessor hereby assigns to
Lessee all of Lessor's rights to proceed against any predecessor in title other
than Lessee for breaches of warranties or representations or for defects in the
Leased Property. Lessor shall fully cooperate with Lessee in the prosecution of
any such claim, in Lessor's or Lessee's name, all at Lessee's sole cost and
expense. Lessee hereby agrees to indemnify, defend and hold harmless Lessor from
and against any claims, obligations and liabilities against or incurred by
Lessor in connection with such cooperation.

         7.2 USE OF THE LEASED PROPERTY.

         (a) Lessee covenants that it will proceed with all due diligence and
will exercise its best efforts to obtain and to maintain all approvals needed to
use and operate the Leased Property and the Facility under applicable local,
state and federal law.

         (b) Lessee shall use or cause to be used the Leased Property only as a
hotel facility, and for such other uses as may be necessary or incidental to
such use or such other use as otherwise approved by Lessor (the "PRIMARY
INTENDED USE"). Lessee shall not use the Leased Property or any portion thereof
for any other use without the prior written consent of Lessor, which consent may
be granted, denied or conditioned in Lessor's sole discretion. No use shall be
made or permitted to be made of the Leased Property, and no acts shall be done,
which will cause the cancellation or increase the premium of any insurance
policy covering the Leased Property or any part thereof (unless another adequate
policy satisfactory to Lessor is available and Lessee pays any premium
increase), nor shall Lessee sell or permit to be kept, used or sold in or about
the Leased Property any article which may be prohibited by law or fire
underwriter's regulations. Lessee shall, at its sole cost, comply with all of
the requirements pertaining to the Leased Property of any insurance board,
association, organization or company necessary for the maintenance of insurance,
as herein provided, covering the Leased Property and Lessee's Personal Property.

         (c) Subject to the provisions of ARTICLES XIV, XV, XXI and XXII, Lessee
covenants and agrees that during the Term it will (1) operate or cause to
operate continuously the Leased Property as a hotel facility, (2) keep in full
force and effect and comply with all the provisions of the Franchise Agreement,
(3) not terminate or amend the Franchise Agreement without the consent of
Lessor, (4) maintain appropriate certifications and licenses for such use and
(5) will seek to maximize the gross revenues generated therefrom consistent with
sound business practices.

         (d) Lessee shall not commit or suffer to be committed any waste on the
Leased Property, or in the Facility, nor shall Lessee cause or permit any
nuisance thereon.

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         (e) Lessee shall neither suffer nor permit the Leased Property or any
portion thereof, or Lessee's Personal Property, to be used in such a manner as
(1) might reasonably tend to impair Lessor's (or Lessee's, as the case may be)
title thereto or to any portion thereof, or (2) may reasonably make possible a
claim or claims of adverse usage or adverse possession by the public, as such,
or of implied dedication of the Leased Property or any portion thereof, except
as necessary in the ordinary and prudent operation of the Facility on the Leased
Property.

         7.3 LESSOR TO GRANT EASEMENTS, ETC. Lessor will, from time to time, so
long as no Event of Default has occurred and is continuing, at the request of
Lessee and at Lessee's cost and expense (but subject to the approval of Lessor,
which approval shall not be unreasonably withheld or delayed), (a) grant
easements and other rights in the nature of easements with respect to the Leased
Property to third parties, (b) release existing easements or other rights in the
nature of easements which are for the benefit of the Leased Property, (c)
dedicate or transfer unimproved portions of the Leased Property for road,
highway or other public purposes, (d) execute petitions to have the Leased
Property annexed to any municipal corporation or utility district, (e) execute
amendments to any covenants and restrictions affecting the Leased Property and
(f) execute and deliver to any person any instrument appropriate to confirm or
effect such grants, releases, dedications, transfers, petitions and amendments
(to the extent of its interests in the Leased Property), but only upon delivery
to Lessor of an Officer's Certificate stating that such grant, release,
dedication, transfer, petition or amendment is not detrimental to the proper
conduct of the business of Lessee on the Leased Property and does not materially
reduce the value of the Leased Property.

                                  ARTICLE VIII
                         COMPLIANCE WITH APPLICABLE LAWS

         8.1 COMPLIANCE WITH LEGAL AND INSURANCE REQUIREMENTS, ETC. Subject to
SECTION 8.3(b) below and ARTICLE XII relating to permitted contests, and subject
further to the obligations of Lessor with respect to Capital Improvements as set
forth in SECTION 9.1(b), Lessee, at its expense, will promptly (a) comply with
all applicable Legal Requirements and Insurance Requirements in respect of the
use, operation, maintenance, repair and restoration of the Leased Property, and
(b) procure, maintain and comply with all appropriate licenses and other
authorizations required for any use of the Leased Property and Lessee's Personal
Property then being made, and for the proper erection, installation, operation
and maintenance of the Leased Property or any part thereof.

         8.2 LEGAL REQUIREMENT COVENANTS. Subject to SECTION 8.3(b) below,
Lessee covenants and agrees that the Leased Property and Lessee's Personal
Property shall not be used for any unlawful purpose, and that Lessee shall not
permit or suffer to exist any unlawful use of the Leased Property by others.
Lessee shall acquire and maintain all appropriate licenses, certifications,
permits and other authorizations and approvals needed to operate the Leased
Property in its customary manner for the Primary Intended Use, and any other
lawful use conducted on the Leased Property as may be permitted from time to
time hereunder. Lessee further covenants and agrees that Lessee's use of the
Leased Property and maintenance, alteration, and operation of the same, and all
parts thereof, shall at all times conform to all Legal Requirements, unless the
same are finally determined by a court of competent jurisdiction to be unlawful
(and Lessee shall cause all such sub-tenants, invitees or others to so comply
with all

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Legal Requirements). Lessee may, however, upon prior Notice to Lessor, contest
the legality or applicability of any such Legal Requirement or any licensure or
certification decision if Lessee maintains such action in good faith, with due
diligence, without prejudice to Lessor's rights hereunder, and at Lessee's sole
expense. If by the terms of any such Legal Requirement compliance therewith
pending the prosecution of any such proceeding may legally be delayed without
the incurrence of any lien, charge or liability of any kind against the Facility
or Lessee's leasehold interest therein and without subjecting Lessee or Lessor
to any liability, civil or criminal, for failure so to comply therewith, Lessee
may delay compliance therewith until the final determination of such proceeding.
If any lien, charge or civil or criminal liability would be incurred by reason
of any such delay, Lessee, on the prior written consent of Lessor, which consent
shall not be unreasonably withheld, may nonetheless contest as aforesaid and
delay as aforesaid provided that such delay would not subject Lessor to criminal
liability and Lessee both (a) furnishes to Lessor security reasonably
satisfactory to Lessor against any loss or injury by reason of such contest or
delay and (b) prosecutes the contest with due diligence and in good faith.

         8.3 ENVIRONMENTAL COVENANTS. Lessor and Lessee (in addition to, and not
in diminution of, Lessee's covenants and undertakings in SECTIONS 8.1 AND 8.2
hereof) covenant and agree as follows:

         (a) At all times hereafter until such time as all liabilities, duties
or obligations of Lessee to the Lessor under the Lease have been satisfied in
full, Lessee shall fully comply with all Environmental Laws applicable to the
Leased Property and the operations thereon unless caused by the acts or grossly
negligent failures to act of Lessor. Lessee agrees to give Lessor written notice
of the following, promptly after Lessee receives knowledge thereof: (1) all
Environmental Liabilities; (2) all pending, threatened or anticipated
Proceedings, and all notices, demands, requests or investigations, relating to
any Environmental Liability or relating to the issuance, revocation or change in
any Environmental Authorization required for operation of the Leased Property;
(3) all Releases at, on, in, under or in any way affecting the Leased Property,
or any Release at, on, in or under any property adjacent to the Leased Property;
and (4) all facts, events or conditions that could reasonably lead to the
occurrence of any of the above-referenced matters.

         (b) Lessee hereby agrees to defend, indemnify and save harmless any and
all Lessor Indemnified Parties from and against any and all Environmental
Liabilities except to the extent caused by the willful misconduct or gross
negligence of Lessor.

         (c) Lessor hereby agrees to defend, indemnify and save harmless any and
all Lessee Indemnified Parties from and against any and all Environmental
Liabilities caused by the willful misconduct or gross negligence of Lessor.

         (d) If any Proceeding is brought against any Indemnified Party in
respect of an Environmental Liability with respect to which such Indemnified
Party may claim indemnification hereunder the Indemnifying Party, upon request,
shall at its sole expense resist and defend such Proceeding, or cause the same
to be resisted and defended by counsel designated by the Indemnified Party and
approved by the Indemnifying Party, which approval shall not be unreasonably
withheld; provided, however, that such approval shall not be required

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in the case of defense by counsel designated by any insurance company
undertaking such defense pursuant to any applicable policy of insurance. Each
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel will be at the sole expense of such Indemnified Party unless
such counsel has been approved by the Indemnifying Party, which approval shall
not be unreasonably withheld. The Indemnifying Party shall not be liable for any
settlement of any such Proceeding made without its consent, which shall not be
unreasonably withheld, but if settled with the consent of the Indemnifying
Party, or if settled without its consent (if its consent shall be unreasonably
withheld), or if there be a final, nonappealable judgment for an adversary party
in any such Proceeding, the Indemnifying Party shall indemnify and hold harmless
the Indemnified Parties from and against any liabilities incurred by such
Indemnified Parties by reason of such settlement or judgement.

         (e) At any time any Indemnified Party has reason to believe
circumstances exist which could reasonably result in an Environmental Liability,
upon reasonable prior written notice to Lessee stating such Indemnified Party's
basis for such belief, an Indemnified Party shall be given immediate access to
the Leased Property (including, but not limited to, the right to enter upon,
investigate, drill wells, take soil borings, excavate, monitor, test, cap and
use available land for the testing of remedial technologies), Lessee's
employees, and to all relevant documents and records regarding the matter as to
which a responsibility, liability or obligation is asserted or which is the
subject of any Proceeding; provided that such access may be conditioned or
restricted as may be reasonably necessary to ensure compliance with law and the
safety of personnel and facilities or to protect confidential or privileged
information. All Indemnified Parties requesting such immediate access and
cooperation shall endeavor to coordinate such efforts to result in as minimal
interruption of the operation of the Leased Property as practicable.

         (f) The indemnification rights and obligations provided for in this
ARTICLE VIII shall be in addition to any indemnification rights and obligations
provided for elsewhere in this Lease.

         (g) The indemnification rights and obligations provided for in this
ARTICLE VIII shall survive the termination of this Lease.

         For purposes of this SECTION 8.3, all amounts for which any Indemnified
Party seeks indemnification shall be computed net of (a) any actual income tax
benefit resulting therefrom to such Indemnified Party, (b) any insurance
proceeds received (net of tax effects) with respect thereto, and (c) any amounts
recovered (net of tax effects) from any third parties based on claims the
Indemnified Party has against such third parties which reduce the damages that
would otherwise be sustained; provided that in all cases, the timing of the
receipt or realization of insurance proceeds or income tax benefits or
recoveries from third parties shall be taken into account in determining the
amount of reduction of damages. Each Indemnified Party agrees to use its
reasonable efforts to pursue, or assign to Lessee or Lessor, as the case may be,
any claims or rights it may have against any third party which would materially
reduce the amount of damages otherwise incurred by such Indemnified Party.

         Notwithstanding anything to the contrary contained in this Lease, if
Lessor shall become entitled to the possession of the Leased Property by virtue
of the termination of the Lease or repossession of the Leased Property, then
Lessor may assign its indemnification rights under

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SECTION 8.3 of this Lease (but not any other rights hereunder) to any Person to
whom the Lessor subsequently transfers the Leased Property, subject to the
following conditions and limitations, each of which shall be deemed to be
incorporated into the terms of such assignment, whether or not specifically
referred to therein:

         (1) The indemnification rights referred to in this section may be
assigned only if a known Environmental Liability then exists or if a Proceeding
is then pending or, to the knowledge of Lessee or Lessor, then threatened with
respect to the Leased Property;

         (2) Such indemnification rights shall be limited to Environmental
Liabilities relating to or specifically affecting the Leased Property; and

         (3) Any assignment of such indemnification rights shall be limited to
the immediate transferee of Lessor, and shall not extend to any such
transferee's successors or assigns.

                                   ARTICLE IX
                             MAINTENANCE AND REPAIRS

         9.1 MAINTENANCE AND REPAIR.

         (a) Except as provided in SECTION 9.1(b) or ARTICLES VIII OR XIV,
Lessee, at its sole expense, will keep the Leased Property in good order and
repair except for ordinary wear and tear (whether or not the need for such
repairs occurred as a result of Lessee's use, any prior use, the elements or the
age of the Leased Property, or any portion thereof), and, with reasonable
promptness, make all necessary and appropriate repairs, replacements, and
improvements thereto of every kind and nature, whether interior or exterior,
ordinary or extraordinary, foreseen or unforeseen or arising by reason of a
condition existing prior to the commencement of the Term of this Lease
(concealed or otherwise), or required by any governmental agency having
jurisdiction over the Leased Property. Lessee, however, shall be permitted to
prosecute claims against Lessor's predecessors in title for breach of any
representation or warranty or for any latent defects in the Leased Property to
be maintained by Lessee unless Lessor is already diligently pursuing such a
claim. All repairs shall, to the extent reasonably achievable, be at least
equivalent in quality to the original work. Lessee will not take or omit to take
any action, the taking or omission of which might materially impair the value or
the usefulness of the Leased Property or any part thereof for its Primary
Intended Use.

         (b) Except as set forth in ARTICLE XVIII of this Lease, Lessee shall be
required to make (at the sole cost and expense of Lessor) all Capital
Expenditures required in connection with (i) Emergency Situations, (ii) Legal
Requirements, (iii) maintenance of the Franchise Agreement, (iv) the performance
by Lessee of its obligations under this Lease, and (v) other additions to the
Leased Property as it may reasonably deem appropriate and that are permitted
hereunder during the Term.

         (c) Lessee will, upon the expiration or prior termination of the Term,
vacate and surrender the Leased Property to Lessor in the condition in which the
Leased Property was originally received from Lessor, except as repaired,
rebuilt, restored, altered or added to as permitted or required by the
provisions of this Lease and except for ordinary wear and tear

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(subject to the obligation of Lessee to maintain the Leased Property in good
order and repair, as would a prudent owner, during the entire Term of the Lease,
to the extent required in SECTION 9.1(a)), or damage by casualty or Condemnation
(subject to the obligations of Lessee to restore or repair as set forth in the
Lease.)

         9.2 ENCROACHMENTS, RESTRICTIONS, ETC. If any of the Improvements, at
any time, materially encroach upon any property, street or right-of-way adjacent
to the Leased Property, or violate the agreements or conditions contained in any
lawful restrictive covenant or other agreement affecting the Leased Property, or
any part thereof, or impair the rights of others under any easement or
right-of-way to which the Leased Property is subject, then promptly upon the
request of Lessor or at the behest of any person affected by any such
encroachment, violation or impairment, Lessee shall, at its expense, subject to
its right to contest the existence of any encroachment, violation or impairment
and in such case, in the event of an adverse final determination, either (a)
obtain valid and effective waivers or settlements of all claims, liabilities and
damages resulting from each such encroachment, violation or impairment, whether
the same shall affect Lessor or Lessee or (b) make such changes in the
Improvements, and take such other actions, as Lessee in the good faith exercise
of its judgment deems reasonably practicable to remove such encroachment, and to
end such violation or impairment, including, if necessary, the alteration of any
of the Improvements, and in any event take all such actions as may be necessary
in order to be able to continue the operation of the Improvements for the
Primary Intended Use substantially in the manner and to the extent the
Improvements were operated prior to the assertion of such violation, impairment
or encroachment. Any such alteration shall be made in conformity with the
applicable requirements of ARTICLE X. Lessee's obligations under this SECTION
9.2 shall be in addition to and shall in no way discharge or diminish any
obligation of any insurer under any policy of title or other insurance held by
Lessor.

                                   ARTICLE X
                                   ALTERATIONS

         10.1 ALTERATIONS. Lessor shall have the right to make additions,
modifications or improvements to the Leased Property from time to time as
Lessor, in its discretion, may deem to be desirable for the permitted uses and
purposes of the Leased Property, provided that such action will not
significantly alter the character or purposes or significantly detract from the
value or operating efficiency thereof and will not significantly impair the
revenue-producing capability of the Leased Property or adversely affect the
ability of the Lessee to comply with the provisions of this Lease. The cost of
such additions, modifications or improvements to the Leased Property shall be
paid by Lessor, and all such additions, modifications and improvements shall, be
included under the terms of this Lease and shall at all times be the property of
Lessor.

                                   ARTICLE XI
                        PROHIBITED LIENS AND ENCUMBRANCES

         11.1 LIENS. Subject to the provision of ARTICLE XII relating to
permitted contests, Lessee will not directly or indirectly create or allow to
remain and will promptly discharge at its expense any lien, encumbrance,
attachment, title retention agreement or claim upon the Leased Property or any
attachment, levy, claim or encumbrance in respect of the Rent, not including,
however, (a) this Lease, (b) the matters, if any, included as exceptions in the
title policy insuring

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Lessor's interest in the Leased Property, (c) restrictions, liens and other
encumbrances which are consented to in writing by Lessor or any easements
granted pursuant to the provisions of SECTION 7.3 of this Lease, (d) liens for
those taxes upon Lessor which Lessee is not required to pay hereunder, (e)
subleases permitted by ARTICLE XXIII hereof, (f) liens for Impositions or for
sums resulting from noncompliance with Legal Requirements so long as (1) the
same are not yet payable or are payable without the addition of any fine or
penalty or (2) such liens are in the process of being contested as permitted by
ARTICLE XII, (g) liens of mechanics, laborers, materialmen, suppliers or vendors
for sums either disputed or not yet due provided that (1) the payment of such
sums shall not be postponed under any related contract for more than sixty (60)
days after the completion of the action giving rise to such lien and such
reserve or other appropriate provisions as shall be required by law or generally
accepted accounting principles shall have been made therefor or (2) any such
liens are in the process of being contested as permitted by ARTICLE XII hereof,
and (h) any liens which are the responsibility of Lessor pursuant to the
provisions of ARTICLE IV of this Lease.

                                  ARTICLE XII
                               PERMITTED CONTESTS

         12.1 PERMITTED CONTESTS. Lessee shall have the right to contest the
amount or validity of any Imposition to be paid by Lessee or any Legal
Requirement or Insurance Requirement or any lien, attachment, levy, encumbrance,
charge or claim ("CLAIMS") not otherwise permitted by ARTICLE XI, by appropriate
legal proceedings in good faith and with due diligence (but this shall not be
deemed or construed in any way to relieve, modify or extend Lessee's covenants
to pay or its covenants to cause to be paid any such charges at the time and in
the manner as in this ARTICLE XII provided), on condition, however, that such
legal proceedings shall not operate to relieve Lessee from its obligations
hereunder and shall not cause the sale or risk the loss of the Leased Property,
or any part thereof, or cause Lessor or Lessee to be in default under any
mortgage, deed of trust or security deed encumbering the Leased Property or any
interest therein. Upon the request of Lessor, Lessee shall either (a) provide a
bond or other assurance reasonably satisfactory to Lessor that all Claims which
may be assessed against the Leased Property together with interest and
penalties, if any, thereon will be paid, or (b) deposit within the time
otherwise required for payment with a bank or trust company as trustee upon
terms reasonably satisfactory to Lessor, as security for the payment of such
Claims, money in an amount sufficient to pay the same, together with interest
and penalties in connection therewith, as to all Claims which may be assessed
against or become a Claim on the Leased Property, or any part thereof, in said
legal proceedings. Lessee shall furnish Lessor and any lender of Lessor with
reasonable evidence of such deposit within five days of the same. Lessor agrees
to join in any such proceedings if the same be required to legally prosecute
such contest of the validity of such Claims; provided, however, that Lessor
shall not thereby be subjected to any liability for the payment of any costs or
expenses in connection with any proceedings brought by Lessee; and Lessee
covenants to indemnify and save harmless Lessor from any such costs or expenses.
Lessee shall be entitled to any refund of any Claims and such charges and
penalties or interest thereon which have been paid by Lessee or paid by Lessor
and for which Lessor has been fully reimbursed. In the event that Lessee fails
to pay any Claims when due or to provide the security therefor as provided in
this paragraph and to diligently prosecute any contest of the same, Lessor may,
upon ten days advance Notice to Lessee, pay such charges together with any
interest and penalties and the same

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<PAGE>

shall be repayable by Lessee to Lessor as Additional Charges at the next Payment
Date provided for in this Lease. Provided, however, that should Lessor
reasonably determine that the giving of such Notice would risk loss to the
Leased Property or cause damage to Lessor, then Lessor shall give such Notice as
is practical under the circumstances. Lessor reserves the right to contest any
of the Claims at its expense not pursued by Lessee. Lessor and Lessee agree to
cooperate in coordinating the contest of any Claims.

                                  ARTICLE XIII
                             INSURANCE REQUIREMENTS

         13.1 GENERAL INSURANCE REQUIREMENTS. During the Term of this Lease,
Lessee and/or Lessor, as applicable shall at all times keep the Leased Property
insured (or cause the Leased Property to be insured) with the kinds and amounts
of insurance described below. This insurance shall be written by companies
authorized to issue insurance in the State. The policies must name Lessor and/or
Lessee, as the insured or as an additional named insured, as the case may be.
Losses shall be payable to Lessor or Lessee as provided in this Lease. Any loss
adjustment shall require the written consent of Lessor and Lessee, each acting
reasonably and in good faith. Evidence of insurance shall be deposited with
Lessor (with a copy to Lessee). The policies on the Leased Property, including
the Improvements, Fixtures and Lessee's Personal Property, shall include:

         (a) To be paid for by Lessor as primary insured, with Lessee (lender or
ground lessor, as applicable) as additional insured:

         (i)      Building insurance on the "SPECIAL FORM" (formerly "All Risk"
                  form) (including earthquake and flood in reasonable amounts as
                  determined by Lessor) in an amount not less than 100% of the
                  then full replacement cost thereof (as defined in SECTION
                  13.2) or such other amount which is acceptable to Lessor, and
                  personal property insurance on the "SPECIAL FORM" in the full
                  amount of the replacement cost thereof;

         (ii)     Insurance for loss or damage (direct and indirect) from steam
                  boilers, pressure vessels or similar apparatus, now or
                  hereafter installed in the Facility, in the minimum amount of
                  $5,000,000 or in such greater amounts as are then customary or
                  as may be reasonably requested by Lessor from time to time;

         (b) To be paid for by Lessee as primary insured, with Lessor,
franchisor and Manager, as required, as additional insured:

         (i)      Personal property insurance on the "SPECIAL FORM" in the full
                  amount of the replacement cost thereof for any personal
                  property owned by Lessee;

         (ii)     Loss of income insurance on the "SPECIAL FORM", in the amount
                  of one year of the sum of Base Rent plus Percentage Rent
                  (based on the last Lease Year of operation or, to the extent
                  the Leased Property has not been operated for an entire
                  12-month Lease Year, based on prorated Percentage Rent) for
                  the benefit of

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<PAGE>

                  Lessor, and business interruption insurance on the "SPECIAL
                  FORM" in the amount of one year of gross operating profit, for
                  the benefit of Lessee;

         (iii)    Commercial general liability insurance, with amounts not less
                  than $1,000,000 combined single limit for each occurrence and
                  $2,000,000.00 for the aggregate of all occurrences within each
                  policy year, as well as excess liability (umbrella) insurance
                  with limited of at least $35,000,000 per occurrence, covering
                  each of the following: bodily injury, death, or property
                  damage liability per occurrence, personal and advertising
                  injury, general aggregate, products and completed operations,
                  with respect to Lessor, and "all risk legal liability"
                  (including liquor law or "dram shop" liability if liquor or
                  alcoholic beverages are served on the Leased Property) with
                  respect to Lessor and Lessee;

         (c) To be paid for by Lessee for the benefit of Manager as primary
insured, with Lessor and Lessee as additional insured:

         (i)      Automobile insurance on vehicles operating in conjunction with
                  the Facility with limits of liability of at least
                  $1,000,000.00 combined, single limit coverage;

         (ii)     Workers' compensation and employer's liability insurance as
                  may be required under applicable laws to the extent necessary
                  to protect Lessor, Lessee, and the Leased Property against
                  workers' compensation claims covering all employees at the
                  Facility, with such deductible limits or self insured
                  retentions as may be established from time to time by Lessee
                  and/or it's Manager;

         (iii)    Fidelity bonds with limits and deductibles as may be
                  reasonably requested by Lessor, covering Manager's employees
                  in job classifications normally bonded under prudent hotel
                  management practices in the United States or otherwise
                  required by law; and

         (d) Such other insurance covering such other hazards and in such
amounts as may be customary for comparable properties in the area of the Leased
Property to be paid for and carried by Lessor or Lessee, as customary, and which
is available from insurance companies, insurance pools or other appropriate
companies authorized to do business in the State at rates which are economically
practicable in relation to the risks covered as may be reasonably requested by
Lessor.

         13.2 REPLACEMENT COST. The term "FULL REPLACEMENT COST" as used herein
shall mean the actual replacement cost of the Leased Property requiring
replacement from time to time including an increased cost of construction
endorsement, if available, and the cost of debris removal. In the event either
party believes that full replacement cost (the then-replacement cost less such
exclusions) has increased or decreased at any time during the Term, it shall
have the right to have such full replacement cost re-determined.

         13.3 WAIVER OF SUBROGATION. All insurance policies carried by Lessor or
Lessee covering the Leased Property, the Fixtures, the Facility or Lessee's
Personal Property, including, without limitation, contents, fire and casualty
insurance, shall expressly waive any right of

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<PAGE>

subrogation on the part of the insurer against the other party. The parties
hereto agree that their policies will include such waiver clause or endorsement
so long as the same are obtainable without extra cost, and in the event of such
an extra charge the other party, at its election, may pay the same, but shall
not be obligated to do so.

         13.4 FORM SATISFACTORY, ETC. All of the policies of insurance referred
to in this ARTICLE XIII shall be written in a form, with deductibles and by
insurance companies satisfactory to Lessor and shall satisfy the requirements of
the Franchise Agreement. Lessee shall pay all of the premiums required for any
insurance required to be carried by Lessee hereunder, and shall deliver such
policies or certificates thereof to Lessor prior to their effective date (and,
with respect to any renewal policy, thirty (30) days prior to the expiration of
the existing policy), and in the event of the failure by Lessee either to effect
such insurance as herein called for or to pay the premiums therefor, or to
deliver such policies or certificates thereof to Lessor at the times required,
Lessor shall be entitled, but shall have no obligation, after ten (10) days'
Notice to Lessee, to effect such insurance and pay the premiums therefor, and to
be reimbursed for any premium or premiums upon written demand therefore. Each
insurer mentioned in this ARTICLE XIII shall agree, by endorsement to the policy
or policies issued by it, or by independent instrument furnished to Lessee, that
it will give to Lessor thirty (30) days' [TEXAS: TEN (10) DAYS'] written notice
before the policy or policies in question shall be materially altered, allowed
to expire or canceled.

         13.5 INCREASE IN LIMITS. If either Lessor or Lessee at any time deems
the limits of the personal injury or property damage under the comprehensive
commercial general liability insurance then carried to be either excessive or
insufficient, Lessor or Lessee shall endeavor in good faith to agree on the
proper and reasonable limits for such insurance to be carried and such insurance
shall thereafter be carried with the limits thus agreed on until further change
pursuant to the provisions of this Section.

         13.6 BLANKET POLICY. Notwithstanding anything to the contrary contained
in this ARTICLE XIII, Lessee may bring the insurance provided for herein within
the coverage of a so-called blanket policy or policies of insurance carried and
maintained by Lessee; provided, however, that the coverage afforded to Lessor
and Lessee will not be reduced or diminished or otherwise be different from that
which would exist under a separate policy meeting all other requirements of this
Lease by reason of the use of such blanket policy of insurance, and provided
further that the requirements of this ARTICLE XIII are otherwise satisfied.

         13.7 NO SEPARATE INSURANCE. Lessee shall not on Lessee's own initiative
or pursuant to the request or requirement of any third party, take out separate
insurance concurrent in form or contributing in the event of loss with that
required in this ARTICLE XIII to be furnished, or increase the amount of any
then existing insurance by securing an additional policy or additional policies,
unless all parties having an insurable interest in the subject matter of the
insurance, including in all cases Lessor, are included therein as additional
insureds, and the loss is payable under such additional separate insurance in
the same manner as losses are payable under this Lease. Lessee shall immediately
notify Lessor that Lessee has obtained any such separate insurance or of the
increasing of any of the amounts of the then existing insurance.

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                                  ARTICLE XIV
                               INSURANCE PROCEEDS

         14.1 INSURANCE PROCEEDS. Subject to the provisions of SECTION 14.6 and
the terms of any lender mortgage, all proceeds payable by reason of any loss or
damage to the Leased Property, or any portion thereof, and insured under any
policy of insurance required by ARTICLE XIII of this Lease shall be paid to
Lessor and held by Lessor in an interest-bearing account, shall be made
available, if applicable, for reconstruction or repair, as the case may be, of
any damage to or destruction of the Leased Property, or any portion thereof,
and, if applicable, shall be paid out by Lessor from time to time for the
reasonable costs of such reconstruction or repair upon satisfaction of
reasonable terms and conditions specified by Lessor. Any excess proceeds of
insurance remaining after the completion of the restoration or reconstruction of
the Leased Property shall be paid to Lessor. If neither Lessor nor Lessee is
required or elects to repair and restore, all insurance proceeds shall be
retained by Lessor. All salvage resulting from any risk covered by insurance
shall belong to Lessor.

         14.2 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION COVERED BY
INSURANCE.

         (a) Except as provided in SECTION 14.6, if during the Term the Leased
Property is totally or partially destroyed by a risk covered by the insurance
described in ARTICLE XIII, whether or not such damage or destruction renders the
Facility Unsuitable for its Primary Intended Use, Lessee shall be obligated, but
only to the extent of any insurance proceeds made available to Lessee and any
other sums advanced by Lessor pursuant to the next sentence, to restore the
Facility to substantially the same condition as existed immediately before the
damage or destruction and otherwise in accordance with the terms of the Lease.
If the insurance proceeds are not adequate to restore the Facility to that
condition, each of Lessor and Lessee shall have the right to terminate this
Lease, without in any way affecting any other leases in effect between Lessor
and Lessee, by giving Notice to the other and all insurance proceeds shall be
retained by Lessor; provided, however, that, if such termination is by Lessee,
Lessor shall have the right, in its sole discretion, to nullify the termination
and keep this Lease in full force by providing, within thirty (30) days after
Lessee's Notice of termination, a Notice to Lessee of Lessor's unconditional,
legally binding obligation to be responsible for all restoration costs in excess
of the insurance proceeds. If this Lease is not terminated and Lessee restores
the Facility, the insurance proceeds, and any other sums made available by
Lessor as aforesaid, shall be paid out by Lessor from time to time for the
reasonable costs of such restoration upon satisfaction of reasonable terms and
conditions, and any excess proceeds remaining after such restoration shall be
retained by Lessor.

         (b) Notwithstanding the provisions of SECTION 14.2(a) above, if Lessee
cannot within a reasonable time obtain all necessary government approvals,
including building permits, licenses and conditional use permits, after diligent
efforts to do so, to perform all required repair and restoration work and to
operate the Facility for its Primary Intended Use in substantially the same
manner as that existing immediately prior to such damage or destruction and
otherwise in accordance with the terms of the Lease, either Lessor or Lessee may
terminate this Lease by providing Notice to the other party, without in any way
affecting any other Leases then in effect between Lessor and Lessee.

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         14.3 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION NOT COVERED
BY INSURANCE. Except as provided in SECTION 14.6, if during the Term the
Facility is totally or materially destroyed by a risk not covered by the
insurance described in ARTICLE XIII, whether or not such damage or destruction
renders the Facility Unsuitable for its Primary Intended Use, the provisions of
SECTION 14.2 applicable to casualties for which insurance proceeds are
inadequate shall govern.

         14.4 LESSEE'S PROPERTY. All insurance proceeds payable by reason of any
loss of or damage to any of Lessee's Personal Property shall be paid to Lessee;
provided, however, no such payments shall diminish or reduce the insurance
payments otherwise payable to or for the benefit of Lessor hereunder.

         14.5 ABATEMENT OF RENT. Any damage or destruction due to casualty
notwithstanding, this Lease shall remain in full force and effect (unless
otherwise terminated as set forth hereinabove) and Lessee's obligation to make
rental payments and to pay Rent required by this Lease shall remain unabated by
any damage or destruction which does not result in a reduction of Gross
Revenues. If and to the extent that any damage or destruction results in a
reduction of Gross Revenues which would otherwise be realizable from the
operation of the Facility, then Lessor shall receive all loss of income
insurance and Lessee shall have no obligation to pay Rent in excess of the
amount of Percentage Rent, if any, realizable from Gross Revenues generated by
the operation of the Leased Property during the existence of such damage or
destruction.

         14.6 DAMAGE NEAR END OF TERM. Notwithstanding any provisions of SECTION
14.2 OR 14.3 appearing to the contrary, if damage to or destruction of the
Facility unsuitable for its Primary Intended Use occurs during the last
twenty-four (24) months of the Term, then Lessee shall have the right to
terminate this Lease by giving written notice to Lessee within thirty (30) days
after the date of damage or destruction, whereupon all accrued Rent shall be
paid immediately, and this Lease shall automatically terminate five days after
the date of such notice.

         14.7 WAIVER. Lessee hereby waives any statutory rights of termination
that may arise by reason of any damage or destruction of the Facility that
Lessor is obligated to restore or may restore under any of the provisions of
this Lease.

         14.8 TERMINATION FEES. Notwithstanding anything appearing contrary in
this ARTICLE XIV, if this Lease is terminated by Lessor by reason of damage to
the Facility due to a casualty, then Lessor agrees to pay Lessee, within
forty-five (45) says of said termination, the termination fees, as applicable,
as set forth in Section 18.04 of the Management Agreement. No termination fees
are payable in the event of Unavoidable Delay (except for a casualty as set
forth hereinabove) or Condemnation.

                                   ARTICLE XV
                              CONDEMNATION; TAKING

         15.1 DEFINITIONS.

         (a) "CONDEMNATION" means a Taking resulting from (1) the exercise of
any governmental power, whether by legal proceedings or otherwise, by a
Condemnor, and (2) a

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voluntary sale or transfer by Lessor to any Condemnor, either under threat of
condemnation or while legal proceedings for condemnation are pending.

         (b) "DATE OF TAKING" means the date the Condemnor has the right to
possession of the property being condemned.

         (c) "AWARD" means all compensation, sums or anything of value awarded,
paid or received on a total or partial Condemnation.

         (d) "CONDEMNOR" means any public or quasi-public authority, or private
corporation or individual, having the power of Condemnation.

         15.2 PARTIES' RIGHTS AND OBLIGATIONS. If during the Term there is any
Condemnation of all or any part of the Leased Property or any interest in this
Lease, the rights and obligations of Lessor and Lessee shall be determined by
this ARTICLE XV.

         15.3 TOTAL TAKING. If title to the fee of the whole of the Leased
Property is condemned by any Condemnor, this Lease shall cease and terminate as
of the Date of Taking by the Condemnor. If title to the fee of less than the
whole of the Leased Property is so taken or condemned, which nevertheless
renders the Leased Property Unsuitable or Uneconomic for its Primary Intended
Use, Lessee and Lessor shall each have the option, by notice to the other, at
any time prior to the Date of Taking, to terminate this Lease as of the Date of
Taking. Upon such date, if such Notice has been given, this Lease shall
thereupon cease and terminate. All Base Rent, Percentage Rent and Additional
Charges paid or payable by Lessee hereunder shall be apportioned as of the Date
of Taking, and Lessee shall promptly pay Lessor such amounts.

         15.4 ALLOCATION OF AWARD. The total Award made with respect to the
Leased Property in connection with a Total Taking shall be equitably apportioned
between Lessor and Lessee in proportion to the then fair market values of the
respective estates and interests of Lessor and Lessee in and to the Leased
Property and under this Lease.

         15.5 PARTIAL TAKING. If title to less than the whole of the Leased
Property is condemned, and the Leased Property is still suitable for its Primary
Intended Use, and not Uneconomic for its Primary Intended Use, or if Lessee or
Lessor is entitled but neither elects not to terminate this Lease as provided in
SECTION 15.3, Lessee at its cost shall with all reasonable dispatch, but only to
the extent of any condemnation awards made available to Lessee and any other
sums advanced by Lessor pursuant to the next sentence, restore the untaken
portion of any Improvements so that such Improvements constitute a complete
architectural unit of the same general character and condition (as nearly as may
be possible under the circumstances) as the Improvements existing immediately
prior to the Condemnation. If the condemnation awards are not adequate to
restore the Facility to that condition, each of Lessor and Lessee shall have the
right to terminate this Lease, without in any way affecting any other leases in
effect between Lessor and Lessee, by giving Notice to the other; provided,
however that, if such termination is by Lessee, Lessor shall have the right, in
its sole discretion, to nullify the termination and keep this Lease in full
force by providing, within thirty (30) days after Lessee's Notice of
termination, a Notice to Lessee of Lessor's unconditional, legally binding
obligation to be responsible for all restoration costs in excess of the
condemnation awards. If this Lease is not terminated and

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Lessee restores the Facility, the condemnation awards, and any other sums made
available by Lessor as aforesaid, subject to the terms of any lender mortgage,
shall be held in trust by Lessor and paid out by Lessor from time to time for
the reasonable costs of such restoration upon satisfaction of reasonable terms
and conditions, and any excess awards remaining after such restoration shall be
retained by Lessor unless the partial condemnation materially impairs the
operations or financial performance of the Facility, in which latter event the
award shall be equitably apportioned between Lessor and Lessee in proportion to
the then fair market values of the respective estates and interests of Lessor
and Lessee in and to the Leased Property and under this Lease.

         15.6 TEMPORARY TAKING. If the whole or any part of the Leased Property
or of Lessee's interest under this Lease is condemned by any Condemnor for its
temporary use or occupancy, this Lease shall not terminate by reason thereof,
and Lessee shall continue to pay, in the manner and at the terms herein
specified, the full amounts of the Base Rent, Percentage Rent and Additional
Charges. In addition, the entire amount of any Award made for such Condemnation
allocable to the Term of this Lease, whether paid by way of damages, rent or
otherwise, shall be paid to Lessee and, except for any portion thereof utilized
for restoration, shall be deemed to be Room Revenues for the purpose of
calculating the Percentage Rent payable hereunder during such temporary taking.
Except only to the extent that Lessee may be prevented from so doing pursuant to
the terms of the order of the Condemnor, Lessee shall continue to perform and
observe all of the other terms, covenants, conditions and obligations hereof on
the part of the Lessee to be performed and observed, as though such Condemnation
had not occurred. Lessee covenants that upon the termination of any such period
of temporary use or occupancy it will, at its sole cost and expense (subject to
Lessor's contribution as set forth below), restore the Leased Property as nearly
as may be reasonably possible to the condition in which the same was immediately
prior to such Condemnation, unless (a) such period of temporary use or occupancy
extends beyond the expiration of the Term, in which case Lessee shall not be
required to make such restoration, or (b) the condemnation award is inadequate
to cover the costs of such restoration, in which case the provisions of SECTION
15.5 applicable to inadequate awards shall govern. If restoration is required in
connection with such temporary taking and the condemnation award (together with
any other sums Lessor elects, in its sole discretion, to advance) is adequate to
pay the costs thereof, the provisions of SECTION 15.5 shall govern the
disbursement of the awards (and other sums, if applicable) and the disposition
of any awards in excess of restoration costs. If restoration is required
hereunder, Lessor shall contribute to the cost of such restoration that portion
of its entire Award that is specifically allocated to such restoration in the
judgment or order of the court, if any, and Lessee shall fund the balance of
such costs in advance of restoration in a manner reasonably satisfactory to
Lessor.

                                  ARTICLE XVI
                      EVENTS OF DEFAULT; REMEDIES; DAMAGES

         16.1 EVENTS OF DEFAULT. If any one or more of the following events
(individually, an "EVENT OF DEFAULT") occurs:

         (a) if Lessee fails to make payment of the Base Rent or Percentage Rent
or Additional Charges when the same become due and payable for a period of ten
(10) days after receipt by the Lessee of Notice from the Lessor thereof;

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         (b) if Lessee fails to observe or perform any term, covenant or
condition of this Lease, other than the payment of Rent or Additional Rent, and
such failure is not cured by Lessee within a period of thirty (30) days after
receipt by the Lessee of Notice thereof from Lessor, unless such failure cannot
with due diligence be cured within a period of thirty (30) days, in which case
it shall not be deemed an Event of Default if Lessee proceeds promptly and with
due diligence to cure the failure and diligently completes the curing thereof
provided, however, in no event shall such cure period extend beyond one hundred
and twenty (120) days after such Notice; or

         (c) if the Lessee shall file a petition in bankruptcy or reorganization
for an arrangement pursuant to any federal or state bankruptcy law or any
similar federal or state law, or shall be adjudicated a bankrupt or shall make
an assignment for the benefit of creditors or shall admit in writing its
inability to pay its debts generally as they become due, or if a petition or
answer proposing the adjudication of the Lessee as a bankrupt or its
reorganization pursuant to any federal or state bankruptcy law or any similar
federal or state law shall be filed in any court and the Lessee shall be
adjudicated a bankrupt and such adjudication shall not be vacated or set aside
or stayed within sixty (60) days after the entry of an order in respect thereof,
or if a receiver of the Lessee or of the whole or substantially all of the
assets of the Lessee shall be appointed in any proceeding brought by the Lessee
or if any such receiver, trustee or liquidator shall be appointed in any
proceeding brought against the Lessee and shall not be vacated or set aside or
stayed within sixty (60) days after such appointment; or

         (d) if Lessee is liquidated or dissolved, or begins proceedings toward
such liquidation or dissolution, or, in any manner, permits the sale or
divestiture of substantially all of its assets; or

         (e) if the estate or interest of Lessee in the Leased Property or any
part thereof is voluntarily or involuntarily transferred, assigned, conveyed,
levied upon or attached in any proceeding (unless Lessee is contesting such lien
or attachment in good faith in accordance with ARTICLE XII hereof); or

         (f) if, except as a result of and to the extent required by damage,
destruction, partial or complete Condemnation or Unavoidable Delay, Lessee
voluntarily ceases operations on the Leased Property for a period in excess of
thirty (30) days; or

         (g) if: (A) an event of default has been declared by the franchisor
under the Franchise Agreement with respect to the Facility on the Leased
Premises as a result of any action or failure to act by Lessee or any Person
with whom Lessee contracts for management services at the Facility, and (B)
Lessee has failed, within thirty (30) days thereafter, to cure such default by
either (1) curing the underlying default under the Franchise Agreement and
paying all costs and expenses associated therewith, or (2) obtaining at Lessee's
sole cost and expense a substitute franchise license agreement with a substitute
franchisor acceptable to Lessor, on terms and conditions acceptable to Lessor;
provided, however, that if Lessee is in good faith disputing an assertion of
default by the franchisor or is proceeding diligently to cure such default, the
30-day period shall be extended for such period of time as Lessee continues to
dispute such default in good faith or diligently proceeds to cure such default,
so long as there is no period during which the Facility is not operated pursuant
to a Franchise Agreement approved by Lessor;

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<PAGE>

         then, and in any such event, Lessor may exercise one or more remedies
available to it herein or at law or in equity, including, but not limited to,
its right to terminate this Lease by giving Lessee not less than ten (10) days'
Notice of such termination.

         If litigation is commenced with respect to any alleged default under
this Lease, the prevailing party in such litigation shall receive, in addition
to its damages incurred, such sum as the court shall determine as its reasonable
attorneys' fees, and all costs and expenses incurred in connection therewith.

         No Event of Default (other than a failure to make a payment of money)
shall be deemed to exist under clause (c) during any time the curing thereof is
prevented by an Unavoidable Delay, provided that upon the cessation of such
Unavoidable Delay, Lessee remedies such default or Event of Default without
further delay.

         16.2 SURRENDER. If an Event of Default occurs (and the event giving
rise to such Event of Default has not been cured within the curative period
relating thereto as set forth in SECTION 16.1) and is continuing, whether or not
this Lease has been terminated pursuant to SECTION 16.1, Lessee shall, if
requested by Lessor so to do, immediately surrender to Lessor the Leased
Property including, without limitation, any and all books, records, files,
licenses, permits and keys relating thereto, and quit the same and Lessor may
enter upon and repossess the Leased Property by reasonable force, summary
proceedings, ejectment or otherwise, and may remove Lessee and all other persons
and any and all personal property from the Leased Property, subject to rights of
any hotel guests and to any requirement of law. Lessee hereby waives any and all
requirements of applicable laws for service of notice to re-enter the Leased
Property. Lessor shall be under no obligation to, but may if it so chooses,
relet the Leased Property or otherwise mitigate Lessor's damages, except unless
otherwise required by applicable law.

         16.3 DAMAGES. Neither (a) the termination of this Lease, (b) the
repossession of the Leased Property, (c) the failure of Lessor to relet the
Leased Property, nor (d) the reletting of all or any portion thereof, shall
relieve Lessee of its liability and obligations hereunder, all of which shall
survive any such termination, repossession or reletting. In the event of any
such termination, Lessee shall forthwith pay to Lessor all Rent due and payable
with respect to the Leased Property to and including the date of such
termination.

         Lessee shall forthwith pay to Lessor, at Lessor's option, as and for
liquidated and agreed current damages for Lessee's default, either:

         (1) Without termination of Lessee's right to possession of the Leased
Property, each installment of Rent and other sums payable by Lessee to Lessor
under the Lease as the same becomes due and payable, which Rent and other sums
shall bear interest at the Overdue Rate, and Lessor may enforce, by action or
otherwise, any other term or covenant of this Lease; or

(2)      the sum of:

         (A) the unpaid Rent which had been earned at the time of termination,
repossession or reletting, and

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         (B) the worth at the time of termination, repossession or reletting of
the amount by which the unpaid Rent for the balance of the Term after the time
of termination, repossession or reletting, exceeds the amount of such rental
loss that Lessee proves could be reasonably avoided, and

         (C) any other amount necessary to compensate Lessor for all the
detriment proximately caused by Lessee's failure to perform its obligations
under this Lease or which in the ordinary course of things, would be likely to
result therefrom. The worth at the time of termination, repossession or
reletting of the amount referred to in subparagraph (B) is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of New
York at the time of award plus 1%.

         Rent for the purposes of this SECTION 16.3 shall be a sum equal to (i)
the average of the annual amounts of the greater of the Base Rent or Percentage
Rent for the three Fiscal Years immediately preceding the Fiscal Year in which
the termination, re-entry or repossession takes place, or (ii) if three Fiscal
Years shall not have elapsed, the average of the greater of the Base Rent or
Percentage Rent during the preceding Fiscal Years during which the Lease was in
effect, or (iii) if one Fiscal Year has not elapsed, the amount derived by
annualizing the greater of the Base Rent or Percentage Rent from the effective
date of this Lease.

         16.4 WAIVER. If this Lease is terminated pursuant to SECTION 16.1,
Lessee waives, to the extent permitted by applicable law, (a) any right to a
trial by jury in the event of summary proceedings to enforce the remedies set
forth in this ARTICLE XVI, and (b) the benefit of any laws now or hereafter in
force exempting property from liability for rent or for debt and Lessor waives
any right to "pierce the corporate veil" of Lessee other than to the extent
funds shall have been inappropriately paid any Affiliate of Lessee following a
default resulting in an Event of Default.

         16.5 APPLICATION OF FUNDS. Any payments received by Lessor under any of
the provisions of this Lease during the existence or continuance of any Event of
Default shall be applied to Lessee's obligations in the order that Lessor may
determine or as may be prescribed by the laws of the State.

                                  ARTICLE XVII
                             LESSOR'S RIGHT TO CURE

         17.1 LESSOR'S RIGHT TO CURE LESSEE'S DEFAULT. If Lessee fails to make
any payment or to perform any act required to be made or performed under this
Lease including, without limitation, Lessee's failure to comply with the terms
of any Franchise Agreement, and fails to cure the same within the relevant time
periods provided in SECTION 16.1, Lessor, without waiving or releasing any
obligation of Lessee, and without waiving or releasing any obligation or
default, may (but shall be under no obligation to) at any time thereafter make
such payment or perform such act for the account and at the expense of Lessee,
and may, to the extent permitted by law, enter upon the Leased Property for such
purpose and, subject to SECTION 16.4, take all such action thereon as, in
Lessor's opinion, may be necessary or appropriate therefor. No such entry shall
be deemed an eviction of Lessee. All sums so paid by Lessor and all costs and
expenses (including, without limitation, reasonable attorneys' fees and
expenses, in each case to the extent permitted by law) so incurred, together
with a late charge thereon (to the extent permitted by

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law) at the Overdue Rate from the date on which such sums or expenses are paid
or incurred by Lessor, shall be paid by Lessee to Lessor on demand. The
obligations of Lessee and rights of Lessor contained in this ARTICLE XVII shall
survive the expiration or earlier termination of this Lease.

                                 ARTICLE XVIII
                           CAPITAL EXPENDITURE RESERVE

         18.1 CAPITAL EXPENDITURE RESERVE.

         (a) Lessee shall establish and fund from Gross Revenues, in respect of
each Fiscal Year during the Term of this Lease, a reserve account on the Leased
Property's books of account (the "CAPITAL EXPENDITURE RESERVE") to cover the
cost of Capital Expenditures (which cost shall be paid by the Lessor); provided,
however, that no Capital Expenditures shall be made to purchase property (other
than "real property" within the meaning of Treasury Regulations Section
1.856-3(d)), to the extent that doing so would cause the Lessor to recognize
income other than "rents from real property" as defined in Section 856(d) of the
Code. All Capital Improvements shall be owned by Lessor subject to the
provisions of this Lease.

         (b) For each Fiscal Year, the Capital Expenditure Reserve shall be an
amount equal to four percent (4%) of the Gross Revenues, or in such other amount
as determined by Lessor.

         (c) All Capital Expenditures whether pursuant to the Capital Budget or
otherwise for material structural components of the Facility involving
expenditures of $1,000,000.00 or more, shall be subject to the approval of
Lessor, which approval shall extend both to the plans and specifications
(including matters of design and decor) and to the contracting and purchasing of
all labor, services and materials. Lessor shall have the right to require
competitive bidding of contracts for such Capital Improvements, review all bids
and monitor costs, time, quality and performance. Except as set forth in SECTION
9.1(b) of this Lease, all Capital Expenditures shall be made by Lessor.

                                  ARTICLE XIX
                                REIT REQUIREMENTS

         19.1 REIT REQUIREMENTS.

         (a) Lessee understands that, in order for AHT to qualify as a REIT, the
following requirements (the "REIT REQUIREMENTS") must be satisfied:

         (A) The average of the fair market values of Lessor's personal property
that is leased to Lessee under a lease at the beginning and end of a calendar
year cannot exceed 15% of the average of the aggregate fair market values of all
of Lessor's property that is leased to Lessee under such lease at the beginning
and end of such calendar year.

         (B) Lessee cannot sublet the property that is leased to it by Lessor,
or enter into any similar arrangement, on any basis such that the rental or
other amounts paid by the sublessee thereunder would be based, in whole or in
part, on either (i) the net income or profits derived by

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the business activities of the sublessee or (ii) any other formula such that any
portion of the rent paid by Lessee to Lessor would fail to qualify as "rents
from real property" within the meaning of Section 856(d) of the Code.

         (C) Lessee cannot sublease the property leased to it by Lessor to, or
enter into any similar arrangement with, any person in which AHT owns, directly
or indirectly, a 10% or more interest, within the meaning of Section
856(d)(2)(B) of the Code.

         (D) Lessee agrees to make an election to be, and to operate as a
"TAXABLE REIT SUBSIDIARY" of AHT within the meaning of Section 856(l) of the
Code.

         (E) No person can own, directly or directly, capital stock of AHT that
exceeds the "LIMIT" (as defined in AHT's Charter, as amended and restated).

         (F) Lessee shall not (i) directly or indirectly operate or manage a
"LODGING FACILITY" within the meaning of Section 856(d)(9)(D)(ii) of the Code or
a "HEALTH CARE FACILITY" within the meaning of Section 856(e)(6)(D)(ii) or (ii)
directly or indirectly provide to any other person (under a franchise, license,
or otherwise) rights to any brand name under which any lodging facility or
health care facility is operated; provided, however, that Lessee may provide
such rights to Manager to operate or manage a lodging facility as long as such
rights are held by Lessee as a franchisee, licensee, or in a similar capacity
and such lodging facility is either owned by Lessee or is leased to Lessee by
Lessor or one of its Affiliates.

         (b) Lessee agrees, and agrees to use reasonable efforts to cause its
Affiliates, to use its best efforts to permit the REIT Requirements to be
satisfied. Lessee agrees, and agrees to use reasonable efforts to cause its
Affiliates, to cooperate in good faith with AHT and Lessor to ensure that the
REIT Requirements are satisfied, including but not limited to, providing AHT
with information about the ownership of Lessee, and its Affiliates to the extent
that such information is reasonably available. Lessee agrees, and agrees to use
reasonable efforts to cause its Affiliates, upon request by AHT, and, where
appropriate, at AHT's expense, to take reasonable action necessary to ensure
compliance with the REIT Requirements. Immediately after becoming aware that the
REIT Requirements are not, or will not be, satisfied, Lessee shall notify, or
use reasonable efforts to cause its Affiliates to notify, AHT of such
noncompliance.

         19.2 LESSEE OFFICER AND EMPLOYEE LIMITATION. Anything contained in this
Lease to the contrary notwithstanding, none of the officers or employees of the
Lessee or any subsidiary of Lessee shall be officers or employees of Manager (or
any Person who operates or manages the Leased Property). In addition, if a
Person serves as both (a) a director of the Lessee or any subsidiary of Lessee
and (b) a director and officer (or employee) of Manager (or any Person who
operates or manages the Leased Property), that Person shall not receive any
compensation for serving as a director of the Lessee or any subsidiary of
Lessee. If a person serves as both (a) a director of Manager or any subsidiary
of Manager (or any Person who operates or manages the Leased Property) and (b) a
director and officer (or employee) of Lessee, that Person shall not receive any
compensation for serving as a director of Manager.

         19.3 MANAGEMENT AGREEMENT. Lessee agrees that, in order to comply with
certain of the REIT Requirements, it will, at all times during the Term, cause
the Leased Property to be

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operated and managed by a management company ("MANAGER") that is an Eligible
Independent Contractor. Effective as of the Commencement Date, the Lessee shall
enter into an initial management agreement in the form of EXHIBIT "C" attached
hereto (the "MANAGEMENT Agreement") and Lessee shall provide Lessor with an
executed copy thereof. The Management Agreement is a hotel master management
agreement which covers the Leased Property and all of the other hotel properties
currently (or to be in the future) leased by Lessee from Affiliates of Lessor.
Lessee may not amend, modify or terminate the Management Agreement in any
material respect or change the Manager without the prior written consent of
Lessor, which consent shall not be unreasonably withheld. Lessee shall also
provide Lessor with copies of any amendments or modifications to the Management
Agreement which are entered into from time to time or any other management
agreement. Lessor shall have the right to approve in advance any Manager.

                                   ARTICLE XX
                                  HOLDING OVER

         20.1 HOLDING OVER. If Lessee for any reason remains in possession of
the Leased Property after the expiration or earlier termination of the Term,
such possession shall be as a tenant at sufferance during which time Lessee
shall pay as rental each month two times the aggregate of (a) one-twelfth of the
Base Rent and Percentage Rent payable with respect to the last Fiscal Year of
the Term, (b) all Additional Charges accruing during the applicable month and
(c) all other sums, if any, payable by Lessee under this Lease with respect to
the Leased Property. During such period, Lessee shall be obligated to perform
and observe all of the terms, covenants and conditions of this Lease, but shall
have no rights hereunder other than the right, to the extent given by law to
tenancies at sufferance, to continue its occupancy and use of the Leased
Property. Nothing contained herein shall constitute the consent, express or
implied, of Lessor to the holding over of Lessee after the expiration or earlier
termination of this Lease.

                                  ARTICLE XXI
                                  RISK OF LOSS

         21.1 RISK OF LOSS. During the Term, the risk of loss or of decrease in
the enjoyment and beneficial use of the Leased Property in consequence of the
damage or destruction thereof by fire, the elements, casualties, thefts, riots,
wars or otherwise, or in consequence of foreclosures, attachments, levies or
executions (other than those caused by Lessor and those claiming from, through
or under Lessor) is assumed by Lessee except as specifically provided in this
Lease, and, Lessor shall in no event be answerable or accountable therefor, nor
shall any of the events mentioned in this Section entitle Lessee to any
abatement of Rent except as specifically provided in this Lease.

                                  ARTICLE XXII
                                 INDEMNIFICATION

         22.1 INDEMNIFICATION. Notwithstanding the existence of any insurance,
and without regard to the policy limits of any such insurance or self-insurance,
but subject to ARTICLES VIII, XIV AND XV, Lessee will protect, indemnify, hold
harmless and defend Lessor from and against all liabilities, obligations,
claims, damages, penalties, causes of action, costs and expenses (including,
without limitation, reasonable attorneys' fees and expenses), to the extent
permitted

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by law, imposed upon or incurred by or asserted against Lessor Indemnified
Parties by reason of: (a) any accident, injury to or death of persons or loss of
or damage to property occurring on or about the Leased Property or adjoining
sidewalks, including without limitation any claims under liquor liability, "dram
shop" or similar laws, (b) any past, present or future use, misuse, non-use,
condition, management, maintenance or repair by Lessee or any of its agents,
employees or invitees of the Leased Property or Lessee's Personal Property or
any litigation, proceeding or claim by governmental entities or other third
parties to which a Lessor Indemnified Party is made a party or participant
related to such use, misuse, non-use, condition, management, maintenance, or
repair thereof by Lessee or any of its agents, employees or invitees, including
any failure of Lessee or any of its agents, employees or invitees to perform any
obligations under this Lease or imposed by applicable law (other than arising
out of Condemnation proceedings), (c) any Impositions that are the obligations
of Lessee pursuant to the applicable provisions of this Lease, (d) any failure
on the part of Lessee to perform or comply with any of the terms of this Lease,
and (e) the non-performance of any of the terms and provisions of any and all
existing and future subleases of the Leased Property to be performed by the
landlord thereunder.

         Lessor shall indemnify, save harmless and defend Lessee Indemnified
Parties from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses imposed upon or incurred by or
asserted against Lessee Indemnified Parties as a result of (a) the gross
negligence or willful misconduct of Lessor arising in connection with this Lease
or (b) any failure on the part of Lessor to perform or comply with any of its
obligations under this Lease.

         Any amounts that become payable by an Indemnifying Party under this
Section shall be paid within ten days after liability therefor on the part of
the Indemnifying Party is determined by litigation or otherwise, and if not
timely paid, shall bear a late charge (to the extent permitted by law) at the
Overdue Rate from the date of such determination to the date of payment. An
Indemnifying Party, at its expense, shall contest, resist and defend any such
claim, action or proceeding asserted or instituted against the Indemnified
Party. The Indemnified Party, at its expense, shall be entitled to participate
in any such claim, action, or proceeding, and the Indemnifying Party may not
compromise or otherwise dispose of the same without the consent of the
Indemnified Party, which may not be unreasonably withheld. Nothing herein shall
be construed as indemnifying a Lessor Indemnified Party against its own grossly
negligent acts or omissions or willful misconduct.

         Lessee's or Lessor's liability for a breach of the provisions of this
ARTICLE XXII shall survive any termination of this Lease.

                                 ARTICLE XXIII
                            SUBLETTING AND ASSIGNMENT

         23.1 SUBLETTING AND ASSIGNMENT. Subject to the provisions of ARTICLE
XIX and SECTION 23.2 and any other express conditions or limitations set forth
herein, Lessee may, but only with the prior written consent of Lessor which
consent shall not be unreasonably withheld, (a) assign this Lease or sublet all
or any part of the Leased Property to an Affiliate of Lessee, or (b) sublet any
retail or restaurant portion of the Improvements in the normal course of the
Primary Intended Use; provided that any subletting to any party other than an
Affiliate of Lessee

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shall not individually as to any one such subletting, or in the aggregate,
materially diminish the actual or potential Percentage Rent payable under this
Lease. In the case of a subletting, the sublessee shall comply with the
provisions of SECTION 23.2, and in the case of an assignment, the assignee shall
assume in writing and agree to keep and perform all of the terms of this Lease
on the part of Lessee to be kept and performed and shall be, and become, jointly
and severally liable with Lessee for the performance thereof. In case of either
an assignment or subletting made during the Term, Lessee shall remain primarily
liable, as principal rather than as surety, for the prompt payment of the Rent
and for the performance and observance of all of the covenants and conditions to
be performed by Lessee hereunder. An original counterpart of each such sublease
and assignment and assumption, duly executed by Lessee and such sublessee or
assignee, as the case may be, in form and substance satisfactory to Lessor,
shall be delivered promptly to Lessor.

         23.2 ATTORNMENT. Lessee shall insert in each sublease permitted under
SECTION 23.1 provisions to the effect that (a) such sublease is subject and
subordinate to all of the terms and provisions of this Lease and to the rights
of Lessor hereunder, (b) if this Lease terminates before the expiration of such
sublease, the sublessee thereunder will, at Lessor's option, attorn to Lessor
and waive any right the sublessee may have to terminate the sublease or to
surrender possession thereunder as a result of the termination of this Lease,
and (c) if the sublessee receives a written Notice from Lessor or Lessor's
assignees, if any, stating that an uncured Event of Default exists under this
Lease, the sublessee shall thereafter be obligated to pay all rentals accruing
under said sublease directly to the party giving such Notice, or as such party
may direct. All rentals received from the sublessee by Lessor or Lessor's
assignees, if any, as the case may be, shall be credited against the amounts
owing by Lessee under this Lease.

                                  ARTICLE XXIV
                    REPORTING AND CERTIFICATION REQUIREMENTS

         24.1 OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS; BUDGETS; LESSOR'S
ESTOPPEL CERTIFICATES AND COVENANTS.

         (a) At any time and from time to time upon not less than twenty (20)
days Notice by Lessor, Lessee will furnish to Lessor an Officer's Certificate
certifying that this Lease is unmodified and in full force and effect (or that
this Lease is in full force and effect as modified and setting forth the
modifications), the date to which the Rent has been paid, whether to the
knowledge of Lessee there is any existing default or Event of Default exists
thereunder by Lessor or Lessee, and such other information as may be reasonably
requested by Lessor. Any such certificate furnished pursuant to this Section may
be relied upon by Lessor, any lender and any prospective purchaser of the Leased
Property.

         (b) Throughout the Term, Lessee will furnish to Lessor such historical
financial information of Lessee and the Facility as Lessor may reasonably
request and shall provide Lessor access to Lessee's books and records with
respect thereto.

         (c) Within five (5) days of Lessee's receipt thereof, any inspection
reports received from the franchisor under the Franchise Agreement.

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         (d) At any time and from time to time upon not less than twenty (20)
days notice by Lessee, Lessor will furnish to Lessee or to any person designated
by Lessee an estoppel certificate certifying that this Lease is unmodified and
in full force and effect (or that this Lease is in full force and effect as
modified and setting forth the modifications), the date to which Rent has been
paid, whether to the knowledge of Lessor there is any existing default or Event
of Default on Lessee's part hereunder, and such other information as may be
reasonably requested by Lessee.

         24.2 OPERATING BUDGET. Not later than forty-five (45) days prior to the
commencement of each Lease Year, Lessee, in consultation with the Manager, shall
prepare and submit to Lessor an operating budget (the "OPERATING BUDGET") in
form and substance reasonably satisfactory to Lessor, prepared in accordance
with the requirements of this SECTION 24.2. The Operating Budget shall be
prepared in accordance with the Uniform System to the extent applicable and show
by month and quarter and for the year as a whole in the degree of detail
specified by the Uniform System for monthly statements, and in accordance with
the detail level of monthly financial statements, the following:

         (a) Lessee's reasonable estimate of Gross Revenues, Room Revenues, Food
Sales and Beverage Sales (including room rates) for the Facility for the
forthcoming Lease Year itemized on schedules on a monthly and quarterly basis as
approved by Lessor and Lessee, together with the assumptions, in narrative form,
forming the basis of such schedules;

         (b) A cash flow projection; and

         (c) Lessee's reasonable estimate for each quarter of the Lease Year of
Percentage Rent.

         24.3 CAPITAL BUDGET. Not later than forty-five (45) days prior to the
commencement of each Lease Year, Lessee shall prepare and submit to Lessor a
capital improvement budget (the "CAPITAL BUDGET") prepared in accordance with
the Uniform System to the extent applicable, and shall set forth the proposed
Capital Expenditures for the ensuing Lease Year.

                                  ARTICLE XXV
                          LESSOR'S DEFAULT; CURE RIGHTS

         25.1 LESSEE'S RIGHT TO CURE. Subject to the provisions of SECTION 25.2,
if Lessor breaches any covenant to be performed by it under this Lease, Lessee,
after Notice to and demand upon Lessor, without waiving or releasing any
obligation hereunder, and in addition to all other remedies available to Lessee,
may (but shall be under no obligation at any time thereafter to) make such
payment or perform such act for the account and at the expense of Lessor. All
sums so paid by Lessee and all costs and expenses (including, without
limitation, reasonable attorneys' fees) so incurred, together with interest
thereon at the Overdue Rate from the date on which such sums or expenses are
paid or incurred by Lessee, shall be paid by Lessor to Lessee on demand or,
following entry of a final, nonappealable judgment against Lessor for such sums,
may be offset by Lessee against the Base Rent payments next accruing or coming
due. The rights of Lessee hereunder to cure and to secure payment from Lessor in
accordance

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with this SECTION 25.1 shall survive the termination of this Lease with respect
to the Leased Property.

         25.2 BREACH BY LESSOR. It shall be a breach of this Lease if Lessor
fails to observe or perform any term, covenant or condition of this Lease on its
part to be performed and such failure continues for a period of thirty (30) days
after Notice thereof from Lessee, unless such failure cannot with due diligence
be cured within a period of thirty (30) days, in which case such failure shall
not be deemed to continue if Lessor, within such 30-day period, proceeds
promptly and with due diligence to cure the failure and diligently completes the
curing thereof. The time within which Lessor shall be obligated to cure any such
failure also shall be subject to extension of time due to the occurrence of any
Unavoidable Delay.

                                  ARTICLE XXVI
                                     NOTICES

         26.1 NOTICES. All notices, demands, requests, consents approvals and
other communications ("NOTICE" or "NOTICES") hereunder shall be in writing and
personally served, mailed (by registered or certified mail, return receipt
requested and postage prepaid) or sent by facsimile, addressed to Lessor at
14180 Dallas Parkway, Suite 900, Dallas, Texas 75254, Facsimile (972) 490-9605,
Attention: General Counsel, and addressed to Lessee at 14180 Dallas Parkway,
Suite 700, Dallas, Texas 75254, Attention: Chief Financial Officer, Facsimile
(972) 490-9605, or to such other address or addresses as either party may
hereafter designate. Personally delivered Notice shall be effective upon
receipt, and Notice given by mail shall be complete at the time of deposit in
the U.S. Mail system, but any prescribed period of Notice and any right or duty
to do any act or make any response within any prescribed period or on a date
certain after the service of such Notice given by mail shall be extended five
days.

                                 ARTICLE XXVII
                            MISCELLANEOUS PROVISIONS

         27.1 TRANSFER OF LICENSES. Upon the expiration or earlier termination
of the Term, Lessee shall use its best efforts (i) to transfer to Lessor or
Lessor's nominee or designee all Franchise Agreements, licenses, operating
permits and other governmental authorizations and all contracts, including
contracts with governmental or quasi-governmental entities, that may be
necessary for the operation of the Facility (collectively, "LICENSES"), or (ii)
if such transfer is prohibited by law or Lessor otherwise elects, to cooperate
with Lessor or Lessor's nominee in connection with the processing by Lessor or
Lessor's nominee of any applications for, all Licenses; provided, in either
case, that the costs and expenses of any such transfer or the processing of any
such application shall be paid by Lessor or Lessor's nominee.

         27.2 EARLY TERMINATION RIGHTS; TERMINATION FEES. Lessor may terminate
the Lease as to any Leased Property prior to the Expiration Date by reason of a
sale of the Facility, the Manager's failure to satisfy certain performance
tests, or for convenience, as set forth in Section 2.03 of the Management
Agreement (and pursuant to the notice requirements contained therein), provided
Lessor pays to Lessee the termination fees as liquidated damages pursuant to the
terms and conditions as set forth in Section 2.03 of the Management Agreement.

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         The terms and conditions set forth in Section 2.03 of the Management
Agreement are fully incorporated herein for all purposes as if fully set forth
herein and shall survive termination of this Lease.

         27.3 SUBSTITUTION OF INITIAL HOTEL. Notwithstanding the foregoing
SECTION 27.2, in the event of a termination of this Lease with respect to an
Initial Hotel (as such term is defined in the Management Agreement) and in
connection with such termination, a termination fee becomes payable by Lessor,
Lessor may (in its sole and absolute discretion) avoid payment of such
termination fee by substituting for the terminated Initial Hotel within 120 days
of such termination, another hotel facility reasonably comparable in size,
number of rooms, quality of franchise operation, market and geographical
location, and gross revenues, to be governed by the terms and conditions of this
Lease from and after the date of such substitution, and this Lease shall be
amended accordingly. In the event of a substitution, any Rent and other charges
payable under this Lease shall be suspended until the substitution is fully
consummated.

         27.4 COMPLIANCE WITH FRANCHISE AGREEMENT. To the extent any of the
provisions of the Franchise Agreement impose a greater obligation on Lessee than
the corresponding provisions of this Lease, then Lessee shall be obligated to
comply with the provisions of the Franchise Agreement except in regard to those
obligations which are the responsibility of Lessor as provided herein. It is the
intent of the parties hereto that Lessee shall comply in every respect with the
provisions of the Franchise Agreement so as to avoid any default thereunder
during the term of this Lease. Lessee shall not terminate, extend or enter into
any modification of the Franchise Agreement without in each instance first
obtaining Lessor's prior written consent. Lessor and Lessee agree to cooperate
with each other in the event it becomes necessary to obtain a franchise
extension or modification or a new franchise for the Leased Property, and in any
transfer of the Franchise Agreement to Lessor (if applicable) or any designee of
or any successor to Lessee (as applicable) upon the termination of this Lease.
In the event of expiration or termination of a Franchise Agreement, for whatever
reason, the Lessor will have the right, in its sole discretion, to approve any
new Franchise Agreement for the Facility. If, upon any expiration or earlier
termination of this Lease (other than upon an Event of Default by Lessee), a
Franchise Agreement remains in effect, or would but for such expiration or
termination remain in effect, Lessor shall indemnify, defend and hold Lessee
harmless with respect to the obligations and liabilities arising thereunder
after the date of expiration or termination of this Lease.

         27.5 LESSOR'S RIGHT TO INSPECT. Lessee shall permit Lessor and its
authorized representatives as frequently as reasonably requested by Lessor to
inspect the Leased Property and Lessee's accounts and records pertaining thereto
and make copies thereof, during usual business hours upon reasonable advance
notice, subject only to any business confidentiality requirements reasonably
requested by Lessee, provided that Lessor shall not cause any interference with
the operation of the Leased Property.

         27.6 CONVEYANCE BY LESSOR. If Lessor or any successor owner of the
Leased Property conveys the Leased Property to a Person other than a wholly
owned Affiliate of Lessor in accordance with the terms hereof other than as
security for a debt, and the grantee or transferee of the Leased Property
expressly assumes all obligations of Lessor hereunder arising or accruing from
and after the date of such conveyance or transfer, Lessor or such successor
owner, as the case may be, shall thereupon be released from all future
liabilities and obligations of Lessor

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under this Lease arising or accruing from and after the date of such conveyance
or other transfer as to the Leased Property and all such future liabilities and
obligations shall thereupon be binding upon the new owner.

         27.7 LESSOR MAY GRANT LIENS. Without the consent of Lessee, Lessor may,
subject to the terms and conditions set forth below in this SECTION 27.7, from
time to time, directly or indirectly, create or otherwise cause to exist any
lien, encumbrance or title retention agreement ("ENCUMBRANCE") upon the Leased
Property, or any portion thereof or interest therein, whether to secure any
borrowing or other means of financing or refinancing. Upon the request of
Lessor, Lessee shall subordinate this Lease to the lien of a new mortgage on the
Leased Property.

         27.8 NON DISTURBANCE AGREEMENT. Lessor agrees, subject to any
restrictions or limitations imposed by any lender of Lessor, to execute in favor
of Manager a non disturbance and attornment agreement in form and substance
reasonably acceptable to Lessor and Manager.

         27.9 WAIVER OF PRESENTMENT, ETC. Lessee waives all presentments,
demands for payment and for performance, notices of nonperformance, protests,
notices of protest, notices of dishonor, and notices of acceptance and waives
all notices of the existence, creation, or incurring of new or additional
obligations, except as expressly granted herein.

         27.10 MEMORANDUM OF LEASE. Lessor and Lessee shall promptly upon the
request of either enter into a short form memorandum of this Lease, in form
suitable for recording under the laws of the State in which reference to this
Lease, and all options contained herein, shall be made. Lessee shall pay all
costs and expenses of recording such memorandum of this Lease.

         27.11 USURY. If any late charges or any interest rate provided for in
any provision of this Lease are based upon a rate in excess of the maximum rate
permitted by applicable law, the parties agree that such charges shall be fixed
at the maximum permissible rate.

         27.12 NO WAIVER. No failure by Lessor or Lessee to insist upon the
strict performance of any term hereof or to exercise any right, power or remedy
consequent upon a breach thereof, and no acceptance of full or partial payment
of Rent during the continuance of any such breach, shall constitute a waiver of
any such breach or of any such term. To the extent permitted by law, no waiver
of any breach shall affect or alter this Lease, which shall continue in full
force and effect with respect to any other then existing or subsequent breach.

         27.13 REMEDIES CUMULATIVE. To the extent permitted by law, each legal,
equitable or contractual right, power and remedy of Lessor or Lessee now or
hereafter provided either in this Lease or by statute or otherwise shall be
cumulative and concurrent and shall be in addition to every other right, power
and remedy and the exercise or beginning of the exercise by Lessor or Lessee of
any one or more of such rights, powers and remedies shall not preclude the
simultaneous or subsequent exercise by Lessor or Lessee of any or all of such
other rights, powers and remedies.

         27.14 ACCEPTANCE OF SURRENDER. No surrender to Lessor of this Lease or
of the Leased Property or any part thereof, or of any interest therein, shall be
valid or effective unless agreed to and accepted in writing by Lessor and no act
by Lessor or any representative or agent of Lessor,

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other than such a written acceptance by Lessor, shall constitute an acceptance
of any such surrender.

         27.15 NO MERGER OF TITLE. There shall be no merger of this Lease or of
the leasehold estate created hereby by reason of the fact that the same person
or entity may acquire, own or hold, directly or indirectly: (a) this Lease or
the leasehold estate created hereby or any interest in this Lease or such
leasehold estate and (b) the fee estate in the Leased Property.

         27.16 QUIET ENJOYMENT. So long as Lessee pays all Rent as the same
becomes due and complies with all of the terms of this Lease and performs its
obligations hereunder, in each case within the applicable grace periods, if any,
Lessee shall peaceably and quietly have, hold and enjoy the Leased Property for
the Term hereof, free of any claim or other action by Lessor or anyone claiming
by, through or under Lessor, but subject to all liens and encumbrances subject
to which the Leased Property was conveyed to Lessor or hereafter consented to by
Lessee or provided for herein. Notwithstanding the foregoing, Lessee shall have
the right by separate and independent action to pursue any claim it may have
against Lessor as a result of a breach by Lessor of the covenant of quiet
enjoyment contained in this Section.

         27.17 BINDING EFFECT. The covenants, terms, conditions, provisions and
undertakings in this Lease shall extend to and be binding upon the heirs,
personal representatives, executors, administrators and permitted successors and
assigns of the respective parties hereto.

         27.18 ENTIRE AGREEMENT; NO OFFER. This Lease contains the entire
agreement of Lessor and Lessee with respect to the subject matter hereof, and no
representations, warranties, inducements, promises or agreements, oral or
otherwise, between the parties not embodied in this Lease shall be of any force
or effect. This Lease may be modified only by a written agreement executed by
both parties with the same formalities as this Lease. All prior agreements or
communications are and shall be merged into this Lease and shall have no force
or effect. Neither any submission of this Lease by one party to the other, nor
any correspondence or other communications between the parties in connection
therewith, is intended or shall be deemed to constitute an offer of any kind or
to create any obligations between the parties unless and until one or more
duplicates of this Lease has been fully executed and delivered between the
parties. Accordingly, any such submission or communications or correspondence
between the parties or their respective agents or attorneys is intended only as
non-binding discussions, and either party shall have the absolute right to
withdraw from such discussions without any liability whatsoever to the other
party.

         27.19 SEVERABILITY. If any clause or provision of this Lease is
illegal, invalid or unenforceable under applicable present or future Laws
effective during the Term, the remainder of this Lease shall not be affected. In
lieu of each clause or provision of this Lease which is illegal, invalid or
unenforceable, there shall be added as a part of this Lease a clause or
provision as nearly identical as may be possible and as may be legal, valid and
enforceable. Notwithstanding the foregoing, in the event any clause or provision
of this Lease is illegal, invalid or unenforceable as aforesaid and the effect
of such illegality, invalidity or unenforceability is that Lessor no longer has
the substantial benefit of its bargain under this Lease, then, in such event,
Lessor may in its discretion cancel and terminate this Lease upon providing at
least ninety (90) days advance notice thereof to Lessee.

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         27.20 COUNTERPARTS. This Lease may be executed in several counterparts,
each of which shall be deemed an original, and all of such counterparts together
shall constitute one and the same instrument.

         27.21 GOVERNING LAW. THIS LEASE AND ITS INTERPRETATION, VALIDITY AND
PERFORMANCE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS. IN THE EVENT
ANY COURT OF LAW OF APPROPRIATE JUDICIAL AUTHORITY SHALL HOLD OR DECLARE THAT
THE LAW OF ANOTHER JURISDICTION IS APPLICABLE, THIS LEASE SHALL REMAIN
ENFORCEABLE UNDER THE LAWS OF THE APPROPRIATE JURISDICTION. THE PARTIES HERETO
AGREE THAT VENUE FOR ANY ACTION IN CONNECTION HEREWITH SHALL BE PROPER IN DALLAS
COUNTY, TEXAS. EACH PARTY HERETO CONSENTS TO THE JURISDICTION OF ANY LOCAL,
STATE OR FEDERAL COURT SITUATED IN ANY OF SUCH LOCATIONS AND WAIVES ANY
OBJECTION WHICH IT MAY HAVE PERTAINING TO IMPROPER VENUE OR FORUM NON CONVENIENS
TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT.

         27.22 RECITALS; HEADINGS. The recitals set forth in this Lease are true
and correct, and are incorporated herein by this reference. The use of headings,
captions and numbers in this Lease is solely for the convenience of identifying
and indexing the various paragraphs and shall in no event be considered in
construing or interpreting any provision in this Lease.

         27.23 SURVIVAL. Notwithstanding anything to the contrary contained in
this Lease, the provisions (including, without limitation, covenants,
agreements, representations, warranties, obligations and liabilities described
therein) of this Lease which from their sense and context are intended to
survive the expiration or sooner termination of this Lease shall survive such
expiration or sooner termination of this Lease and continue to be binding upon
the applicable party.

         27.24 EXHIBITS. The exhibits referred to in, and attached to, this
Lease are hereby incorporated in full by reference. Unless otherwise expressly
provided in the exhibit or the body of this Lease, in the event of any conflict
or inconsistency with the provisions contained in the body of this Lease and the
exhibits, the provisions contained in the body of this Lease shall control.

         IN WITNESS WHEREOF, the parties have executed this Lease by their duly
authorized officers as of the date first above written.

                           [SIGNATURE PAGES TO FOLLOW]

Lease Agreement
Ashford TRS Corporation

                                       47
<PAGE>

                                    "LESSOR"

                                    [OWNER PARTNERSHIP], a
                                    Delaware limited partnership

                                    By:  Ashford Properties General Partner LLC,
                                         a Delaware limited liability company,
                                         its general partner

                                    By:
                                        ---------------------------------------
                                          Montgomery Bennett
                                          President

                                    "LESSEE"

                                    ASHFORD TRS CORPORATION, a Delaware
                                    corporation

                                    By:
                                        ---------------------------------------
                                          David A. Brooks
                                          Vice President

Lease Agreement
Ashford TRS Corporation

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