Document:

EXHIBIT 10.11

                              AMENDED AND RESTATED
                             MASTER LEASE AGREEMENT

                          DATED AS OF DECEMBER 23, 1999

                                 BY AND BETWEEN

                             HPTSHC PROPERTIES TRUST
                                   AS LANDLORD

                                       AND

                      SUMMERFIELD HPT LEASE COMPANY, L.P.,
                                    AS TENANT

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                                                 Table of Contents

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ARTICLE 1  DEFINITIONS............................................................................................1
                  1.1      "Accountants"..........................................................................1
                  1.2      "Additional Rent"......................................................................1
                  1.3      "Additional Charges"...................................................................1
                  1.4      "Adjusted Purchase Price"..............................................................1
                  1.5      "Affiliated Person"....................................................................2
                  1.6      "Agreement"............................................................................2
                  1.7      "Applicable Laws"......................................................................2
                  1.8      "Assignment Agreement".................................................................2
                  1.9      "Award"................................................................................2
                  1.10     "Base Total Hotel Sales"...............................................................3
                  1.11     "Base Year"............................................................................3
                  1.12     "Business Day".........................................................................3
                  1.13     "Capital Addition".....................................................................3
                  1.14     "Capital Expenditure"..................................................................3
                  1.15     "Claim"................................................................................3
                  1.16     "Code".................................................................................3
                  1.17     "Commencement Date"....................................................................3
                  1.18     "Condemnation".........................................................................3
                  1.19     "Condemnor"............................................................................4
                  1.20     "Consolidated Financials"..............................................................4
                  1.21     "Date of Taking".......................................................................4
                  1.22     "Default"..............................................................................4
                  1.23     "Disbursement Rate"....................................................................4
                  1.24     "Distribution".........................................................................4
                  1.25     "Encumbrance"..........................................................................4
                  1.26     "Entity"...............................................................................4
                  1.27     "Environment"..........................................................................5
                  1.28     "Environmental Obligation".............................................................5
                  1.29     "Environmental Notice".................................................................5
                  1.30     "Event of Default".....................................................................5
                  1.31     "Excess Total Hotel Sales".............................................................5
                  1.32     "Extended Terms".......................................................................5
                  1.33     "FF&E Bank"............................................................................5
                  1.34     "FF&E Estimate"........................................................................5
                  1.35     "FF&E Funded Amount"...................................................................5
                  1.36     "FF&E Reserve".........................................................................5
                  1.37     "Financial Officer's Certificate"......................................................5
                  1.38     "Fiscal Year"..........................................................................5
                  1.39     "Fixed Term"...........................................................................5
                  1.40     "Fixtures".............................................................................5
                  1.41     "GAAP".................................................................................5
                  1.42     "Government Agencies"..................................................................5

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                  1.43     "Hazardous Substances".................................................................6
                  1.44     "Hotel"................................................................................6
                  1.45     "Hotel Mortgage".......................................................................6
                  1.46     "Hotel Mortgagee"......................................................................7
                  1.47     "Immediate Family".....................................................................7
                  1.48     "Impositions"..........................................................................7
                  1.49     "Incidental Documents".................................................................7
                  1.50     "Indebtedness".........................................................................8
                  1.51     "Insurance Requirements"...............................................................8
                  1.52     "Interest Rate"........................................................................8
                  1.53     "Land".................................................................................8
                  1.54     "Landlord".............................................................................8
                  1.55     "Landlord Liens".......................................................................8
                  1.56     "Lease Guaranty".......................................................................8
                  1.57     "Lease Year"...........................................................................8
                  1.58     "Leased Improvements"..................................................................8
                  1.59     "Leased Intangible Property"...........................................................8
                  1.60     "Leased Personal Property".............................................................9
                  1.61     "Leased Property"......................................................................9
                  1.62     "Legal Requirements"...................................................................9
                  1.63     "Lien".................................................................................9
                  1.64     "Management Agreements"................................................................9
                  1.65     "Manager"..............................................................................9
                  1.66     "Minimum Rent".........................................................................9
                  1.67     "Notice"...............................................................................9
                  1.68     "Officer's Certificate"................................................................9
                  1.69     "Overdue Rate".........................................................................9
                  1.70     "Parent"...............................................................................9
                  1.71     "Patriot"..............................................................................9
                  1.72     "Permitted Encumbrances"..............................................................10
                  1.73     "Permitted Liens".....................................................................10
                  1.74     "Permitted Use".......................................................................10
                  1.75     "Person"..............................................................................10
                  1.76     "Property"............................................................................10
                  1.77     "Purchase Agreements".................................................................10
                  1.78     "Records".............................................................................10
                  1.79     "Rent"................................................................................10
                  1.80     "SEC".................................................................................10
                  1.81     "Security Deposit"....................................................................10
                  1.82     "Separateness Agreement"..............................................................10
                  1.83     "SHC".................................................................................10
                  1.84     "Special Organizational Document Provisions"..........................................10
                  1.85     "State"...............................................................................10

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                  1.86     "Subsidiary"..........................................................................10
                  1.87     "Successor Landlord"..................................................................11
                  1.88     "Tangible Net Worth"..................................................................11
                  1.89     "Tenant"..............................................................................11
                  1.90     "Tenant FF&E Security Agreement"......................................................11
                  1.91     "Tenant General Partner"..............................................................11
                  1.92     "Tenant Pledge Agreement".............................................................11
                  1.93     "Tenant General Partner Pledge Agreement".............................................11
                  1.94     "Tenant Security Agreement"...........................................................11
                  1.95     "Tenant's Personal Property"..........................................................11
                  1.96     "Term"................................................................................12
                  1.97     "Total Hotel Sales"...................................................................12
                  1.98     "Uniform System of Accounts"..........................................................12
                  1.99     "Unsuitable for Its Permitted Use"....................................................12
                  1.100    "Work"................................................................................13
                  1.101    "Wyndham".............................................................................13
ARTICLE 2  LEASED PROPERTY AND TERM..............................................................................13
                  2.1      Leased Property.......................................................................13
                  2.2      Condition of Leased Property..........................................................14
                  2.3      Fixed Term............................................................................14
                  2.4      Extended Term.........................................................................14
                  2.5      Landlord's Early Termination Right....................................................15
ARTICLE 3  RENT..................................................................................................15
                  3.1      Rent..................................................................................15
                           3.1.1    Minimum Rent.................................................................15
                           3.1.2    Additional Rent..............................................................16
                           3.1.3    Additional Charges...........................................................18
                  3.2      Late Payment of Rent, Etc.............................................................19
                  3.3      Net Lease.............................................................................20
                  3.4      No Termination, Abatement, Etc........................................................20
                  3.5      Security Deposit......................................................................21
ARTICLE 4  USE OF THE LEASED PROPERTY............................................................................22
                  4.1      Permitted Use.........................................................................22
                           4.1.1    Permitted Use................................................................22
                           4.1.2    Necessary Approvals..........................................................22
                           4.1.3    Lawful Use, Etc..............................................................22
                  4.2      Compliance with Legal/Insurance Requirements, Etc.....................................23
                  4.3      Environmental Matters.................................................................23
                           4.3.1    Restriction on Use, Etc......................................................23
                           4.3.2    Environmental Report.........................................................24
                           4.3.3    Indemnification of Landlord..................................................24
                           4.3.4    Survival.....................................................................25
ARTICLE 5  MAINTENANCE AND REPAIRS...............................................................................25

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                  5.1      Maintenance and Repair................................................................25
                           5.1.1    Tenant's General Obligations.................................................25
                           5.1.2    FF&E Reserve.................................................................25
                           5.1.3    Landlord's Obligations.......................................................27
                           5.1.4    Nonresponsibility of Landlord, Etc...........................................27
                  5.2      Tenant's Personal Property............................................................28
                  5.3      Yield Up..............................................................................28
                  5.4      Management Agreement..................................................................28
ARTICLE 6  IMPROVEMENTS, ETC.....................................................................................29
                  6.1      Improvements to the Leased Property...................................................29
                  6.2      Salvage...............................................................................30
ARTICLE 7  LIENS.................................................................................................30
                  7.1      Liens.................................................................................30
                  7.2      Landlord's Lien.......................................................................30
ARTICLE 8  PERMITTED CONTESTS....................................................................................31
ARTICLE 9  INSURANCE AND INDEMNIFICATION.........................................................................32
                  9.1      General Insurance Requirements........................................................32
                  9.2      Replacement Cost......................................................................33
                  9.3      Waiver of Subrogation.................................................................33
                  9.4      Form Satisfactory, Etc................................................................33
                  9.5      Blanket Policy........................................................................34
                  9.6      No Separate Insurance.................................................................34
                  9.7      Indemnification of Landlord...........................................................34
ARTICLE 10  CASUALTY.............................................................................................35
                  10.1     Insurance Proceeds....................................................................35
                  10.2     Damage or Destruction.................................................................35
                           10.2.1   Damage or Destruction of Leased Property.....................................35
                           10.2.2   Partial Damage or Destruction................................................35
                           10.2.3   Insufficient Insurance Proceeds..............................................35
                           10.2.4   Disbursement of Proceeds.....................................................36
                  10.3     Damage Near End of Term...............................................................37
                  10.4     Tenant's Property.....................................................................37
                  10.5     Restoration of Tenant's Property......................................................37
                  10.6     No Abatement of Rent..................................................................37
                  10.7     Waiver................................................................................37
ARTICLE 11  CONDEMNATION.........................................................................................38
                  11.1     Total Condemnation, Etc...............................................................38
                  11.2     Partial Condemnation..................................................................38
                  11.3     Abatement of Rent.....................................................................39
                  11.4     Temporary Condemnation................................................................39
                  11.5     Allocation of Award...................................................................39
ARTICLE 12  DEFAULTS AND REMEDIES................................................................................40
                  12.1     Events of Default.....................................................................40

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                  12.2     Remedies..............................................................................42
                  12.3     Tenant's Waiver.......................................................................43
                  12.4     Application of Funds..................................................................43
                  12.5     Landlord's Right to Cure Tenant's Default.............................................43
ARTICLE 13  HOLDING OVER.........................................................................................44
ARTICLE 14  LANDLORD'S NOTICE OBLIGATIONS; LANDLORD DEFAULT......................................................44
                  14.1     Landlord Notice Obligation............................................................44
                  14.2     Landlord's Default....................................................................44
ARTICLE 15  PURCHASE RIGHTS......................................................................................45
                  15.1     First Refusal to Purchase.............................................................45
                  15.2     Purchase by Tenant....................................................................45
                  15.3     Landlord's Option to Purchase Tenant's Personal Property; Transfer of Licenses........46
ARTICLE 16  SUBLETTING AND ASSIGNMENT............................................................................46
                  16.1     Subletting and Assignment.............................................................46
                  16.2     Required Sublease Provisions..........................................................47
                  16.3     Permitted Sublease....................................................................48
                  16.4     Sublease Limitation...................................................................48
ARTICLE 17  ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS.......................................................48
                  17.1     Estoppel Certificates.................................................................48
                  17.2     Financial Statements..................................................................49
                  17.3     General Operations....................................................................50
ARTICLE 18  LANDLORD'S RIGHT TO INSPECT..........................................................................50
ARTICLE 19  HOTEL MORTGAGES......................................................................................50
                  19.1     Landlord May Grant Liens..............................................................50
                  19.2     Subordination of Lease................................................................50
                  19.3     Notice to Mortgagee and Superior Landlord.............................................52
ARTICLE 20  ADDITIONAL COVENANTS OF TENANT.......................................................................52
                  20.1     Prompt Payment of Indebtedness........................................................52
                  20.2     Conduct of Business...................................................................52
                  20.3     Maintenance of Accounts and Records...................................................52
                  20.4     Notice of Litigation, Etc.............................................................53
                  20.5     Indebtedness of Tenant................................................................53
                  20.6     Financial Condition of Tenant.........................................................54
                  20.7     Distributions, Payments to Affiliated Persons, Etc....................................54
                  20.8     Prohibited Transactions...............................................................54
                  20.9     Liens and Encumbrances................................................................54
                  20.10    Merger; Sale of Assets; Etc...........................................................54
ARTICLE 21  REPRESENTATIONS AND WARRANTIES.......................................................................55
                  21.1     Representations of Tenant.............................................................55
                           21.1.1   Status and Authority of Tenant...............................................55

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                           21.1.2   Action of Tenant.............................................................55
                           21.1.3   No Violations of Agreements..................................................55
                           21.1.4   Litigation...................................................................55
                           21.1.5   Existing Leases, Agreements, Etc.............................................55
                           21.1.6   Disclosure...................................................................56
                           21.1.7   Utilities, Etc...............................................................56
                           21.1.8   Compliance With Law..........................................................56
                           21.1.9   Hazardous Substances.........................................................56
                  21.2     Representations of Landlord...........................................................56
                           21.2.1   Status and Authority of Landlord.............................................56
                           21.2.2   Action of Landlord...........................................................57
                           21.2.3   No Violations of Agreements..................................................57
                           21.2.4   Litigation...................................................................57
                  21.3     Survival, Etc.........................................................................57
ARTICLE 22  MISCELLANEOUS........................................................................................58
                  22.1     Limitation on Payment of Rent.........................................................58
                  22.2     No Waiver.............................................................................58
                  22.3     Remedies Cumulative...................................................................58
                  22.4     Severability..........................................................................58
                  22.5     Acceptance of Surrender...............................................................58
                  22.6     No Merger of Title....................................................................59
                  22.7     Conveyance by Landlord................................................................59
                  22.8     Quiet Enjoyment.......................................................................59
                  22.9     Memorandum of Lease...................................................................59
                  22.10    Notices...............................................................................59
                  22.11    Trade Area Restriction................................................................61
                  22.12    Construction..........................................................................61
                  22.13    Counterparts; Headings................................................................61
                  22.14    Applicable Law, Etc...................................................................61
                  22.15    Nonrecourse...........................................................................62
                  22.16    Confidentiality.......................................................................62
                  22.17    Costs and Expenses....................................................................62
                  22.18    Nonliability of Trustees..............................................................62

EXHIBITS

A-1 through A-15  The Land
B                 .........Allocated Purchase Price
C                 .........Restricted Trade Area
D                 .........Management Agreement

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                                                         vi
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                              AMENDED AND RESTATED
                             MASTER LEASE AGREEMENT

         THIS  MASTER  LEASE  AGREEMENT  is  entered  into as of this ___ day of
December,  1999, by and between HPTSHC  PROPERTIES TRUST, a Maryland real estate
investment trust, as landlord  ("Landlord"),  and SUMMERFIELD HPT LEASE COMPANY,
L.P., a Kansas limited partnership, as tenant ("Tenant").

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

         WHEREAS,  Landlord owns fee simple title to the Leased  Property  (this
and other  capitalized  terms used and not otherwise  defined  herein having the
meanings  ascribed to such terms in Article 1) described in Exhibits A-1 through
A-15.

         WHEREAS,  pursuant to that certain Master Lease Agreement (the "Initial
Lease") dated as of March 20, 1998,  between HPTSHC Properties Trust, a Maryland
real estate  investment trust  ("Landlord"),  and Summerfield HPT Lease Company,
L.P.,  a Texas  limited  partnership  ("Tenant"),  Landlord  leased  the  Leased
Property to Tenant and Tenant leased the Leased Property from Landlord; and

         WHEREAS,  Landlord  and Tenant wish to amend and restate of the Initial
Lease, all subject to and upon the terms and conditions herein set forth;

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained  and other good and  valuable  consideration,  the mutual  receipt and
legal sufficiency of which are hereby  acknowledged,  Landlord and Tenant hereby
agree to amend and restate the Initial Lease as follows:

                                   ARTICLE 1

                                   DEFINITIONS

         For all  purposes  of this  Agreement,  except as  otherwise  expressly
provided or unless the context otherwise requires, (i) the terms defined in this
Article shall have the meanings assigned to them in this Article and include the
plural as well as the singular,  (ii) all accounting terms not otherwise defined
herein shall have the meanings  assigned to them in accordance with GAAP,  (iii)
all references in this Agreement to designated  "Articles," "Sections" and other
subdivisions are to the designated Articles,  Sections and other subdivisions of
this  Agreement,  and (iv) the words "herein,"  "hereof,"  "hereunder" and other
words of  similar  import  refer  to this  Agreement  as a whole  and not to any
particular Article, Section or other subdivision.

         1.1  "Accountants"  shall have the  meaning  given such term in Section
3.1.2(c).

         1.2 "Additional Rent" shall have the meaning given such term in Section
3.1.2(a).

         1.3  "Additional  Charges"  shall have the  meaning  given such term in
Section 3.1.3.

         1.4 "Adjusted Purchase Price" shall mean, for any Property,  the amount
allocated to such Property as set forth on Exhibit B, plus the aggregate  amount
of all disbursements by

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Landlord  pursuant to  Sections  5.1.3(b),  10.2.3 or 11.2 with  respect to such
Property, plus any other amount disbursed or advanced by Landlord to finance, or
to reimburse  Tenant for its financing  of, any Capital  Addition to such Leased
Property.

         1.5 "Affiliated  Person" shall mean, with respect to any Person, (a) in
the  case of any  such  Person  which  is a  partnership,  any  partner  in such
partnership,  (b) in the case of any such  Person  which is a limited  liability
company,  any member of such company,  (c) any other Person which is a Parent, a
Subsidiary, or a Subsidiary of a Parent with respect to such Person or to one or
more of the Persons  referred to in the  preceding  clauses (a) and (b), (d) any
other Person who is an officer,  director, trustee or employee of, or partner in
or member of, such Person or any Person  referred  to in the  preceding  clauses
(a),  (b) and (c),  and (e) any other  Person  who is a member of the  Immediate
Family of such Person or of any Person referred to in the preceding  clauses (a)
through (d).

         1.6  "Agreement"  shall mean this  Amended and  Restated  Master  Lease
Agreement,  including  Exhibits A-1 through A-15, B and C hereto, as it and they
may be amended from time to time as herein provided.

         1.7  "Applicable  Laws"  shall  mean  all  applicable  laws,  statutes,
regulations,  rules, ordinances,  codes, licenses, permits and orders, from time
to time in existence,  of all courts of competent  jurisdiction  and  Government
Agencies, and all applicable judicial and administrative and regulatory decrees,
judgments and orders, including common law rulings and determinations,  relating
to injury to, or the  protection  of, real or personal  property or human health
(except those requirements  which, by definition,  are solely the responsibility
of employers) or the Environment,  including,  without limitation, all valid and
lawful  requirements  of courts  and other  Government  Agencies  pertaining  to
reporting,  licensing,  permitting,  investigation,  remediation  and removal of
underground  improvements (including,  without limitation,  treatment or storage
tanks,  or water,  gas or oil  wells),  or  emissions,  discharges,  releases or
threatened releases of Hazardous  Substances,  chemical substances,  pesticides,
petroleum or petroleum products, pollutants,  contaminants or hazardous or toxic
substances, materials or wastes whether solid, liquid or gaseous in nature, into
the Environment, or relating to the manufacture,  processing, distribution, use,
treatment,  storage,  disposal,  transport or handling of Hazardous  Substances,
underground  improvements (including,  without limitation,  treatment or storage
tanks, or water, gas or oil wells), or pollutants,  contaminants or hazardous or
toxic  substances,  materials  or wastes,  whether  solid,  liquid or gaseous in
nature.

         1.8  "Assignment  Agreement"  shall mean the Assignment of Rights under
Agreements  of Purchase and Sale,  dated as of March 20, 1998,  between  Patriot
American Hospitality Partnership, L.P., a Delaware partnership, and Landlord.

         1.9 "Award" shall mean all  compensation,  sums or other value awarded,
paid or  received  by virtue of a total or  partial  Condemnation  of any of the
Leased  Property  (after  deduction  of all  reasonable  legal  fees  and  other
reasonable costs and expenses,  including,  without  limitation,  expert witness
fees, incurred by Landlord, in connection with obtaining any such award).

                                      -2-
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         1.10 "Base Total Hotel Sales" with respect to each Property  shall mean
Total Hotel Sales for such Property for the Base Year; provided,  however,  that
in the event that, with respect to any Lease Year, or portion  thereof,  for any
reason (including,  without limitation,  a casualty or Condemnation) there shall
be, for two hundred seventy (270) days or more in any Lease Year, a reduction in
the  number of rooms at any Hotel or a change in the  services  provided  at any
Hotel   (including,   without   limitation,   closing  of   restaurants  or  the
discontinuation  of food or beverage  services)  from the number of rooms or the
services  provided during the Base Year, in determining  Additional Rent payable
with respect to such Lease Year,  Base Total Hotel Sales for such Property shall
be reduced as  follows:  (a) in the event of and for the  duration of a complete
closing of such Hotel  following  application  of any business  interruption  or
Award  proceeds  collected  with respect  thereto,  Total Hotel Sales during the
applicable  period of the Base Year  throughout the period of such closing shall
be subtracted from Base Total Hotel Sales for such Property; (b) in the event of
a partial  closing of such  Hotel  affecting  any number of guest  rooms in such
Hotel and following  application of any business  interruption or Award proceeds
collected with respect thereto, Total Hotel Sales for such Property attributable
to guest room  occupancy  or guest room  services at such Hotel  during the Base
Year shall be ratably  allocated  among all guest rooms in service at such Hotel
during the Base Year and all such Total  Hotel  Sales  attributable  to rooms no
longer in service shall be subtracted from Base Total Hotel Sales throughout the
period  of  such  closing;  and  (c)  in  the  event  of  any  other  change  in
circumstances  affecting  such Hotel,  Base Total Hotel Sales shall be equitably
adjusted in such manner as Landlord and Tenant shall reasonably agree.

         1.11 "Base Year" shall mean,  with respect to each  Property,  the 1998
Fiscal Year.

         1.12 "Business Day" shall mean any day other than Saturday,  Sunday, or
any other day on which banking institutions in The Commonwealth of Massachusetts
or the State of Texas are authorized by law or executive action to close.

         1.13  "Capital   Addition"  shall  mean  any   renovation,   repair  or
improvement  to the Leased  Property  (or  portion  thereof),  the cost of which
constitutes a Capital Expenditure.

         1.14  "Capital  Expenditure"  shall  mean any  expenditure  treated  as
capital in nature in accordance with GAAP.

         1.15 "Claim" shall have the meaning given such term in Article 8.

         1.16 "Code"  shall mean the  Internal  Revenue Code of 1986 and, to the
extent applicable, the Treasury Regulations promulgated thereunder, each as from
time to time amended.

         1.17 "Commencement Date" shall mean the date of the Initial Lease.

         1.18 "Condemnation"  shall mean, with respect to any Property,  (a) the
exercise of any  governmental  power with respect to such  Property,  whether by
legal proceedings or otherwise, by a Condemnor of its power of condemnation, (b)
a  voluntary  sale or transfer  of such  Property by Landlord to any  Condemnor,
either under threat of condemnation or while legal  proceedings for condemnation
are  pending,  or (c) a taking or  voluntary  conveyance  of all or part of such

                                      -3-
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Property,  or any interest therein, or right accruing thereto or use thereof, as
the  result  or in  settlement  of any  Condemnation  or  other  eminent  domain
proceeding affecting such Property,  whether or not the same shall have actually
been commenced.

         1.19 "Condemnor"  shall mean any public or quasi-public  authority,  or
private corporation or Person, having the power of Condemnation.

         1.20 "Consolidated Financials" shall mean:

                  (a) for any Fiscal Year or other accounting  period of Tenant,
         annual audited and quarterly unaudited financial  statements of Tenant,
         including  Tenant's balance sheet and the related  statements of income
         and cash flow; and

                  (b) for any Fiscal Year or other accounting period of Wyndham,
         annual audited and quarterly unaudited financial  statements of Wyndham
         prepared on a  consolidated  basis,  including  Wyndham's  consolidated
         balance sheet and the related statements of income and cash flow;

in each case in  reasonable  detail and setting  forth in  comparative  form the
corresponding figures for the corresponding period in the preceding Fiscal Year,
and prepared in accordance with GAAP throughout the periods reflected.

         1.21 "Date of Taking"  shall mean the date the  Condemnor has the right
to possession of such Property,  or any portion  thereof,  in connection  with a
Condemnation.

         1.22 "Default"  shall mean any event or condition which with the giving
of notice and/or lapse of time may ripen into an Event of Default.

         1.23 "Disbursement Rate" shall mean an annual rate of interest equal to
the greater of, as of the date of determination,  (i) the Interest Rate and (ii)
the per annum rate for ten (10) year U.S.  Treasury  Obligations as published in
The Wall Street Journal plus three hundred fifty (350) basis points.

         1.24  "Distribution"  shall mean (a) any  declaration or payment of any
dividend (except  dividends payable equity interests in Tenant) on or in respect
of any equity interests in Tenant, (b) any purchase,  redemption,  retirement or
other  acquisition  of  any  equity  interests  in  an  Entity,  (c)  any  other
distribution on or in respect of any equity  interests in an Entity,  or (d) any
return of capital to equity interest holders.

         1.25  "Encumbrance"  shall have the meaning  given such term in Section
19.1.

         1.26  "Entity"   shall  mean  any   corporation,   general  or  limited
partnership,   limited  liability  company  or  partnership,  stock  company  or
association,  joint venture,  association,  company, trust, bank, trust company,
land trust, business trust,  cooperative,  any government or agency or political
subdivision thereof or any other entity.

                                      -4-
<PAGE>

         1.27  "Environment"  shall mean soil,  surface  waters,  ground waters,
land, stream,
sediments, surface or subsurface strata and ambient air.

         1.28 "Environmental  Obligation" shall have the meaning given such term
in Section 4.3.1.

         1.29  "Environmental  Notice" shall have the meaning given such term in
Section 4.3.1.

         1.30  "Event of  Default"  shall  have the  meaning  given such term in
Section 12.1.

         1.31 "Excess  Total Hotel Sales" shall mean,  with respect to any Lease
Year, or portion  thereof,  the amount of Total Hotel Sales for such Lease Year,
or portion  thereof,  in excess of Base  Total  Hotel  Sales for the  equivalent
period.

         1.32 "Extended Terms" shall have the meaning given such term in Section
2.4.

         1.33 "FF&E Bank" means Bank One Texas, N.A. or other bank designated by
Tenant and approved by Landlord.

         1.34 "FF&E  Estimate" shall have the meaning given such term in Section
5.1.2(c).

         1.35 "FF&E Funded Amount" shall mean $2,000,000.

         1.36 "FF&E  Reserve"  shall have the meaning given such term in Section
5.1.2(a).

         1.37 "Financial Officer's  Certificate" shall mean, as to any Person, a
certificate of the chief financial officer or chief accounting  officer (or such
officers' authorized designee) of such Person, duly authorized, accompanying the
financial statements required to be delivered by such Person pursuant to Section
17.2,  in which such officer shall  certify (a) that such  statements  have been
properly prepared in accordance with GAAP and are true,  correct and complete in
all material respects and fairly present the consolidated financial condition of
such  Person at and as of the dates  thereof  and the  results  of its and their
operations  for the periods  covered  thereby,  and (b) certify that no Event of
Default has occurred and is continuing hereunder.

         1.38 "Fiscal Year" shall mean the calendar year.

         1.39 "Fixed  Term"  shall have the  meaning  given such term in Section
2.3.

         1.40  "Fixtures"  shall  have the  meaning  given  such term in Section
2.1(d).

         1.41  "GAAP"  shall  mean  generally  accepted  accounting   principles
consistently applied.

         1.42  "Government  Agencies" shall mean any court,  agency,  authority,
board (including,  without limitation,  environmental  protection,  planning and
zoning), bureau, commission, department, office or instrumentality of any nature
whatsoever of any governmental or  quasi-governmental  unit of the United States
or any State or any county or any political

                                      -5-
<PAGE>

subdivision  of any of the  foregoing,  whether now or hereafter  in  existence,
having  jurisdiction  over Tenant or such Property or any portion thereof or the
Hotel operated thereon.

         1.43 "Hazardous Substances" shall mean any substance:

                  (a) the presence of which  requires or may  hereafter  require
         notification,  investigation or remediation under any federal, state or
         local statute, regulation, rule, ordinance, order, action or policy; or

                  (b)  which  is or  becomes  defined  as a  "hazardous  waste",
         "hazardous  material"  or  "hazardous   substance"  or  "pollutant"  or
         "contaminant"  under  any  present  or future  federal,  state or local
         statute, regulation, rule or ordinance or amendments thereto including,
         without   limitation,   the   Comprehensive   Environmental   Response,
         Compensation  and  Liability  Act  (42  U.S.C.  9601 et  seq.)  and the
         Resource Conservation and Recovery Act (42 U.S.C. section 6901 et seq.)
         and the regulations promulgated thereunder; or

                  (c)  which  is   toxic,   explosive,   corrosive,   flammable,
         infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous
         and is or becomes  regulated  by any  governmental  authority,  agency,
         department,  commission, board, agency or instrumentality of the United
         States,  any state of the United States,  or any political  subdivision
         thereof; or

                  (d)  the  presence  of  which  on  such  Property   causes  or
         materially  threatens to cause an unlawful  nuisance upon such Property
         or to adjacent  properties or poses or  materially  threatens to pose a
         hazard to such  Property  or to the  health or safety of  persons on or
         about such Property; or

                  (e) without limitation,  which contains gasoline,  diesel fuel
         or other petroleum hydrocarbons or volatile organic compounds; or

                  (f)  without   limitation,   which  contains   polychlorinated
         biphenyls (PCBs) or asbestos or urea formaldehyde foam insulation; or

                  (g) without  limitation,  which contains or emits  radioactive
         particles, waves or material; or

                  (h) without limitation, constitutes materials which are now or
         may hereafter be subject to regulation  pursuant to any Applicable Laws
         promulgated by any Government Agencies.

         1.44 "Hotel"  shall mean,  with  respect to any  Property  described on
Exhibits A-1 through A-15, the all suites hotel being operated on such Property.

         1.45 "Hotel Mortgage" shall mean any Encumbrance placed upon the Leased
Property in accordance with Article 19.

                                      -6-
<PAGE>

         1.46 "Hotel Mortgagee" shall mean the holder of any Hotel Mortgage.

         1.47  "Immediate  Family" shall mean,  with respect to any  individual,
such  individual's  spouse,  parents,  brothers,  sisters,  children (natural or
adopted),    stepchildren,    grandchildren,    grandparents,    parents-in-law,
brothers-in-law, sisters-in-law, nephews and nieces.

         1.48  "Impositions"  shall  mean  collectively,  all taxes  (including,
without  limitation,  all taxes imposed under the laws of the relevant State, as
such laws may be amended from time to time,  and all ad valorem,  sales and use,
or similar taxes as the same relate to or are imposed upon  Landlord,  Tenant or
the  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),  water,  sewer or other
rents and charges,  excises,  tax levies,  fees (including,  without limitation,
license,  permit,  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 Tenant  (including  all
interest and penalties  thereon due to any failure in payment by Tenant),  which
at any time prior to, during or in respect of the Term hereof may be assessed or
imposed  on or in respect of or be a lien upon (a)  Landlord'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 Tenant; provided,  however, that nothing contained herein
shall be  construed  to  require  Tenant to pay (i) any tax based on net  income
imposed on Landlord,  (ii) any net revenue tax of  Landlord,  (iii) any transfer
fee or other tax imposed with respect to the sale, exchange or other disposition
by Landlord  of the Leased  Property or the  proceeds  thereof,  (iv) any single
business,  gross receipts tax, transaction  privilege,  rent or similar taxes as
the same relate to or are imposed upon  Landlord,  (v) any interest or penalties
imposed on Landlord as a result of the failure of Landlord to file any return or
report timely and in the form prescribed by law or to pay any tax or imposition,
except  to the  extent  such  failure  is a result  of a breach by Tenant of its
obligations  pursuant to Section 3.1.3, (vi) any Impositions imposed on Landlord
that are a result of Landlord not being  considered a "United  States person" as
defined in  Section  7701(a)(30)  of the Code,  (vii) any  Impositions  that are
enacted or adopted by their express terms as a substitute for any tax that would
not have been  payable  by Tenant  pursuant  to the terms of this  Agreement  or
(viii)  any  Impositions  imposed  as  a  result  of a  breach  of  covenant  or
representation  by Landlord in any  agreement  governing  Landlord's  conduct or
operation  or as a result of the  gross  negligence  or  willful  misconduct  of
Landlord.

         1.49 "Incidental  Documents" shall mean,  collectively,  the Assignment
Agreement,  the Agreement to Lease,  the Tenant Security  Agreement,  the Tenant
Pledge Agreement,  the Tenant General Partner Pledge Agreement,  the Tenant FF&E
Security  Agreement,  the Separateness  Agreement,  the Lease Guaranty,  and any
other  agreements from time to time entered into with respect to this Agreement,
as they may be amended from time to time.

                                      -7-
<PAGE>

         1.50  "Indebtedness"  shall  mean,  with  respect  to any  Person,  all
obligations,  contingent or otherwise,  which in accordance  with GAAP should be
reflected on such Person's balance sheet as liabilities.

         1.51  "Insurance  Requirements"  shall mean all terms of any  insurance
policy required by this Agreement and all requirements of the issuer of any such
policy and all orders,  rules and regulations and any other  requirements of the
National  Board of Fire  Underwriters  (or any  other  body  exercising  similar
functions) binding upon Landlord, Tenant or the Leased Property.

         1.52 "Interest Rate" shall mean ten percent (10%) per annum.

         1.53 "Land" shall have the meaning given such term in Section 2.1(a).

         1.54 "Landlord" shall have the meaning given such term in the preambles
to this Agreement and shall also include its permitted successors and assigns.

         1.55  "Landlord  Liens"  shall  mean  liens on or  against  the  Leased
Property or any  payment of Rent (a) which  result from any act of, or any claim
against,  Landlord or any owner of a direct or  indirect  interest in the Leased
Property,  or which  result from any  violation by Landlord of any terms of this
Agreement or the Purchase Agreement,  or (b) which result from liens in favor of
any taxing authority by reason of any tax owed by Landlord or any fee owner of a
direct or indirect  interest in the Leased  Property;  provided,  however,  that
"Landlord  Lien"  shall not include  any lien  resulting  from any tax for which
Tenant is  obligated  to pay or indemnify  Landlord  against  until such time as
Tenant  shall  have  already  paid to or on  behalf of  Landlord  the tax or the
required indemnity with respect to the same.

         1.56 "Lease  Guaranty" shall mean the Lease  Guaranty,  dated as of the
date hereof,  made by the general partner of Tenant for the benefit of Landlord,
as it may be amended from time to time.

         1.57  "Lease  Year"  shall  mean any Fiscal  Year or  portion  thereof,
commencing with the 1998 Fiscal Year, during the Term.

         1.58 "Leased  Improvements"  shall have the meaning  given such term in
Section 2.1(b).

         1.59  "Leased  Intangible  Property"  shall  mean all  hotel  licensing
agreements and other service contracts, equipment leases, booking agreements and
other arrangements or agreements affecting the ownership,  repair,  maintenance,
management,  leasing or operation of the Leased  Property to which Landlord is a
party;  all books,  records  and files  relating  to the  leasing,  maintenance,
management  or operation  of the Leased  Property  belonging  to  Landlord;  all
transferable  or  assignable  permits,  certificates  of  occupancy,   operating
permits, sign permits, development rights and approvals, certificates, licenses,
warranties  and  guarantees,  rights to deposits,  trade names,  service  marks,
telephone  exchange numbers  identified with the Leased Property,  and all other
transferable intangible property,  miscellaneous rights, benefits and privileges
of any kind or  character  belonging  to  Landlord  with  respect  to the Leased
Property.

                                      -8-
<PAGE>

         1.60 "Leased Personal  Property" shall have the meaning given such term
in Section 2.1(e).

         1.61  "Leased  Property"  shall  have the  meaning  given  such term in
Section 2.1.

         1.62  "Legal  Requirements"  shall  mean all  federal,  state,  county,
municipal and other governmental  statutes,  laws, rules,  orders,  regulations,
ordinances,  judgments,  decrees and  injunctions  affecting any Property or the
maintenance,  construction,  alteration  or  operation  thereof,  whether now or
hereafter  enacted  or in  existence,  including,  without  limitation,  (a) all
permits,  licenses,  authorizations,  certificates and regulations  necessary to
operate any Property for its Permitted Use, and (b) all  covenants,  agreements,
restrictions and encumbrances  contained in any instruments at any time in force
affecting any Property,  including those which may (i) require material repairs,
modifications or alterations in or to any Property or (ii) in any way materially
and  adversely  affect  the  use  and  enjoyment  thereof,   but  excluding  any
requirements  arising  as  a  result  of  Landlord's  status  as a  real  estate
investment trust.

         1.63  "Lien"  shall  mean  any  mortgage,  security  interest,  pledge,
collateral assignment, or other encumbrance,  lien or charge of any kind, or any
transfer of property  or assets for the  purpose of  subjecting  the same to the
payment of  Indebtedness  or performance of any other  obligation in priority to
payment of its general creditors.

         1.64 "Management Agreements" shall mean the Management Agreements,  set
forth in Exhibit D, between  Tenant and  Manager,  together  with all  permitted
amendments, modifications and supplements thereto.

         1.65  "Manager"  shall mean Wyndham  Management  Corporation  (or other
direct or indirect  Subsidiary  of Wyndham),  and its permitted  successors  and
assigns.

         1.66 "Minimum  Rent" shall mean,  with respect to each calendar  month,
the sum of $2,083,334,  which amount shall be allocated  among the Properties in
accordance with their Allocable Purchase Prices

         1.67  "Notice"  shall mean a notice  given in  accordance  with Section
22.10.

         1.68  "Officer's  Certificate"  shall mean a  certificate  signed by an
officer of the  certifying  Entity duly  authorized by the board of directors of
the certifying Entity.

         1.69  "Overdue  Rate"  shall  mean,  on any date,  a per annum  rate of
interest equal to the lesser of fifteen  percent (15%) and the maximum rate then
permitted under applicable law.

         1.70 "Parent" shall mean, with respect to any Person,  any Person which
owns  directly,  or indirectly  through one or more  Subsidiaries  or Affiliated
Persons,  five percent (5%) or more of the voting or beneficial  interest in, or
otherwise  has the right or power  (whether by  contract,  through  ownership of
securities or otherwise) to control, such Person.

         1.71  "Patriot"  shall  mean  Patriot  American  Hospitality,  Inc.,  a
Delaware  corporation,  and  all  permitted  successors  and  assignees  of such
corporation.

                                      -9-
<PAGE>

         1.72  "Permitted   Encumbrances"  shall  mean,  with  respect  to  each
Property,  all  rights,  restrictions,  and  easements  of  record  set forth on
Schedule B to the applicable  owner's title insurance  policy issued to Landlord
in connection with the Landlord's acquisition of such Leased Property,  plus any
other such  encumbrances  as may have been  consented  to in writing by Landlord
from time to time.

         1.73 "Permitted  Liens" shall mean any Liens granted in accordance with
Section 20.9(a).

         1.74  "Permitted  Use" shall mean, with respect to any Property any use
of the Leased Property permitted pursuant to Section 4.1.1.

         1.75  "Person"  shall mean any  individual  or  Entity,  and the heirs,
executors, administrators, legal representatives, successors and assigns of such
Person where the context so admits.

         1.76 "Property" shall have the meaning given such term in Section 2.1.

         1.77  "Purchase  Agreements"  shall mean those  fifteen  Agreements  of
Purchase and Sale,  each dated as of March 18, 1998, by and between  Patriot and
the Kansas limited partnership identified therein as "Summerfield".

         1.78 "Records" shall have the meaning given such term in Section 7.2.

         1.79 "Rent" shall mean, collectively, the Minimum Rent, Additional Rent
and Additional Charges.

         1.80 "SEC" shall mean the Securities and Exchange Commission.

         1.81  "Security  Deposit"  shall  have the  meaning  given such term in
Section 3.5.

         1.82  "Separateness  Agreement"  shall mean that  certain  Amended  and
Restated  Separateness  Agreement,  dated as of the date hereof (and as the same
may be amended from time to time) among Tenant,  Summerfield  HPT Lease Company,
L.L.C., Patriot American Hospitality Partnership, L.P., PAH LP, Inc. and PAH GP,
Inc. for the benefit of (i) Landlord and  Hospitality  Properties  Trust,  among
others, and (ii) Locke Liddell & Sapp LLP.

         1.83  "SHC"  shall  mean  Summerfield  Hotel  Corporation,  a  Delaware
corporation.

         1.84  "Special   Organizational   Document   Provisions"   shall  mean,
collectively, provisions similar to Sections 1.02 and 3.03 of Tenant's Agreement
of Limited  Partnership and Sections 3, 9, 10 and 13 of the Operating  Agreement
of the general partner of Tenant.

         1.85  "State"  shall mean,  with  respect to any  Property,  the state,
commonwealth or district in which the such Property is located.

         1.86  "Subsidiary"  shall mean, with respect to any Person,  any Entity
(a) in which such  Person  owns  directly,  or  indirectly  through  one or more
Subsidiaries, more than fifty percent

                                      -10-
<PAGE>

(50%) of the voting or  beneficial  interest or (b) which such Person  otherwise
has the right or power to control  (whether by  contract,  through  ownership of
securities or otherwise).

         1.87  "Successor  Landlord"  shall have the meaning  given such term in
Section 19.2.

         1.88  "Tangible  Net Worth" shall mean,  for any Person,  the excess of
total assets over total liabilities,  total assets and total liabilities of such
Person to be determined in accordance with GAAP,  excluding,  however,  from the
determination of total assets: (a) goodwill,  organizational expenses,  research
and development expenses,  trademarks, trade names, copyrights,  patents, patent
applications, licenses and rights in any thereof, and other similar intangibles;
(b) all deferred  charges or  unamortized  debt  discount  and expense;  (c) all
reserves  carried and not deducted from assets;  (d) treasury  stock and capital
stock,  obligations  or other  securities  of, or capital  contributions  to, or
investments in, any Subsidiary; (e) securities which are not readily marketable;
(f) any  write-up in the book value of any asset  resulting  from a  revaluation
thereof  subsequent to the  Commencement  Date;  (g) deferred  gain; and (h) any
items not  included  in  clauses  (a)  through  (g) above  that are  treated  as
intangibles in conformity with GAAP; excluding,  however, from the determination
of total liabilities  accrued fees payable to the Manager in accordance with the
Management  Agreement that are subordinated to the payment of Rents hereunder in
accordance with Section 5.4.

         1.89  "Tenant"  shall have the meaning given such term in the preambles
to this Agreement and shall also include its permitted successors and assigns.

         1.90 "Tenant FF&E Security  Agreement"  shall mean the  Assignment  and
Security Agreement,  dated as of the date hereof, made by Tenant for the benefit
of Landlord, as it may be amended from time to time.

         1.91 "Tenant General  Partner" shall mean Summerfield HPT Lease Company
L.L.C., a Delaware limited liability company.

         1.92  "Tenant  Pledge   Agreement"  shall  mean  the  Confirmation  and
Restatement  of  Partnership  Interest  Pledge  Agreement,  dated as of the date
hereof, as the same made by the partners of Tenant to Landlord,  as the same may
be amended from time to time.

         1.93  "Tenant  General  Partner  Pledge   Agreement"   shall  mean  the
Confirmation and Restatement of Membership  Interest Pledge Agreement,  dated as
of the date hereof, made by Patriot American Hospitality Partnership,  L.P., the
sole member of Tenant General Partner, to Landlord.

         1.94  "Tenant  Security  Agreement"  shall  mean the  Confirmation  and
Restatement of Security  Agreement,  dated as of the date hereof, made by Tenant
for the benefit of Landlord, as it may be amended from time to time.

         1.95  "Tenant's  Personal  Property"  shall mean all motor vehicles and
consumable  inventory and supplies,  furniture,  furnishings,  movable walls and
partitions,  equipment and machinery and all other tangible personal property of
Tenant,  if any,  acquired by Tenant on and after the date hereof and located at
the Leased Property or used in Tenant's  business at the

                                      -11-
<PAGE>

Leased Property and all modifications,  replacements,  alterations and additions
to such  personal  property  installed at the expense of Tenant,  other than any
items included within the definition of Fixtures or Leased Personal Property.

         1.96 "Term" shall mean,  collectively,  the Fixed Term and the Extended
Terms,  to the extent properly  exercised  pursuant to the provisions of Section
2.4, unless sooner terminated pursuant to the provisions of this Agreement.

         1.97 "Total Hotel Sales" shall mean, with respect to each Property, for
each  Fiscal  Year  during the Term,  all  revenues  and  receipts of every kind
derived  by Tenant or any  subtenant  from  operating  such  Property  and parts
thereof,  including,  but not  limited  to:  income  (from  both cash and credit
transactions)  (after deductions for bad debts, and discounts for prompt or cash
payments and refunds) from rental of rooms, stores, offices, meeting, exhibit or
sales space of every kind;  license,  lease and concession fees and rentals (not
including gross receipts of licensees, lessees and concessionaires); income from
vending  machines;  health  club  membership  fees;  food  and  beverage  sales;
wholesale and retail sales of merchandise  (other than proceeds from the sale of
furnishings,  fixture and equipment no longer  necessary to the operation of any
Hotel,  which shall be deposited in the FF&E Reserve);  service charges,  to the
extent  not  distributed  to the  employees  at such  Hotel as  gratuities;  and
proceeds,  if any, from business interruption or other loss of income insurance;
provided,  however,  that Total Hotel  Sales  shall not  include the  following:
gratuities to Hotel employees; federal, state or municipal excise, sales, use or
similar taxes  collected  directly from patrons or guests or included as part of
the  sales  price of any  goods or  services;  insurance  proceeds  (other  than
proceeds from business  interruption or other loss of income  insurance);  Award
proceeds (other than for a temporary  Condemnation);  any proceeds from any sale
of such Property or from the refinancing of any debt  encumbering such Property;
proceeds from the  disposition of  furnishings,  fixture and equipment no longer
necessary  for the  operation of such Hotel;  interest  which accrues on amounts
deposited in the FF&E Reserve;  and recoveries against  predecessors in title to
the extent such recoveries are compensation  attributable to items not otherwise
includable in the calculation of Total Hotel Sales.

         1.98  "Uniform  System of  Accounts"  shall  mean A  Uniform  System of
Accounts for Hotels,  Eighth  Revised  Edition,  1986, as published by the Hotel
Association  of New York City,  as the same may be further  revised from time to
time.

         1.99 "Unsuitable for Its Permitted Use" shall mean, with respect to any
Hotel,  a state or condition of such Hotel such that (a) following any damage or
destruction  involving  such  Hotel,  such Hotel  cannot be operated in the good
faith judgment of Tenant on a commercially  practicable  basis for its Permitted
Use and it cannot  reasonably  be expected to be restored to  substantially  the
same condition as existed immediately before such damage or destruction,  and as
otherwise  required by Section 10.2.4,  within twelve (12) months following such
damage  or  destruction  or such  shorter  period  of time as to which  business
interruption insurance is available to cover Rent and other costs related to the
Leased Property following such damage or destruction,  or (b) as the result of a
partial taking by Condemnation, such Hotel cannot be operated, in the good faith
judgment of Tenant or the Manager on a  commercially  practicable  basis for its
Permitted Use.

                                      -12-
<PAGE>

         1.100 "Work" shall have the meaning given such term in Section 10.2.4.

         1.101  "Wyndham"  shall mean  Wyndham  International,  Inc., a Delaware
corporation, and its permitted successors and assigns.

                                   ARTICLE 2

                            LEASED PROPERTY AND TERM

         2.1  Leased  Property.  Upon and  subject  to the terms and  conditions
hereinafter set forth, Landlord leases to Tenant and Tenant leases from Landlord
all of Landlord's right, title and interest in and to all of the following (each
of items (a) through (g) below which, as of the  Commencement  Date,  relates to
any single Hotel, a "Property" and, collectively, the "Leased Property"):

                  (a) those certain tracts,  pieces and parcels of land, as more
         particularly described in Exhibits A-1 through A-15 attached hereto and
         made a part hereof (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 off-site),
         parking areas and roadways appurtenant to such buildings and structures
         presently   situated   upon  the  Land   (collectively,   the   "Leased
         Improvements");

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

                  (d) all  equipment,  machinery,  fixtures,  and other items of
         property,  now or hereafter permanently affixed to or incorporated into
         the Leased 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 maximum extent permitted by law, are hereby deemed
         by the parties  hereto to  constitute  real estate,  together  with all
         replacements,  modifications,  alterations and additions  thereto,  but
         specifically  excluding  all items  included  within  the  category  of
         Tenant's Personal Property (collectively, the "Fixtures");

                  (e) all machinery, equipment, furniture, furnishings, moveable
         walls or  partitions,  computers  or trade  fixtures or other  personal
         property of any kind or description used or useful in Tenant's business
         on or in the  Leased  Improvements,  and  located  on or in the  Leased
         Improvements,  and all  modifications,  replacements,  alterations  and
         additions to such personal  property,  except items,  if any,  included
         within the category of Fixtures,  but specifically  excluding all items
         included   within  the   category   of   Tenant's   Personal   Property
         (collectively, the "Leased Personal Property");

                                      -13-
<PAGE>

                  (f) all of the Leased Intangible Property; and

                  (g)  any and all  leases  of  space  (including  any  security
         deposits held by Tenant or the Manager pursuant  thereto) in the Leased
         Improvements to tenants thereof.

         2.2  Condition  of Leased  Property.  Tenant  acknowledges  receipt and
delivery of  possession  of the Leased  Property  and Tenant  accepts the Leased
Property  in its  "as  is"  condition,  subject  to the  rights  of  parties  in
possession,  the existing state of title,  including all covenants,  conditions,
restrictions,  reservations,  mineral  leases,  easements  and other  matters of
record or that are visible or apparent on the Leased  Property,  all  applicable
Legal Requirements,  the lien of any financing instruments,  mortgages and deeds
of trust  existing prior to the  Commencement  Date or permitted by the terms of
this Agreement, and such other matters which would be disclosed by an inspection
of the Leased  Property  and the record title  thereto or by an accurate  survey
thereof.  TENANT REPRESENTS THAT IT HAS INSPECTED THE LEASED PROPERTY AND ALL OF
THE  FOREGOING  AND HAS  FOUND THE  CONDITION  THEREOF  SATISFACTORY  AND IS NOT
RELYING ON ANY  REPRESENTATION  OR WARRANTY OF LANDLORD OR LANDLORD'S  AGENTS OR
EMPLOYEES  WITH RESPECT  THERETO AND TENANT  WAIVES ANY CLAIM OR ACTION  AGAINST
LANDLORD IN RESPECT OF THE CONDITION OF THE LEASED  PROPERTY.  LANDLORD MAKES NO
WARRANTY  OR  REPRESENTATION,  EXPRESS  OR  IMPLIED,  IN  RESPECT  OF 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 TENANT.  To the maximum  extent  permitted by law,
however,  Landlord hereby assigns to Tenant all of Landlord's  rights to proceed
against any  predecessor in title for breaches of warranties or  representations
or for latent defects in the Leased  Property.  Landlord  shall fully  cooperate
with Tenant in the  prosecution  of any such claims,  in  Landlord's or Tenant's
name, all at Tenant's sole cost and expense. Tenant shall indemnify, defend, and
hold  harmless  Landlord  from and against any loss,  cost,  damage or liability
(including  reasonable  attorneys' fees) incurred by Landlord in connection with
such cooperation.

         2.3 Fixed Term.  The initial term of this  Agreement (the "Fixed Term")
shall commence on the Commencement Date and shall expire December 31, 2017.

         2.4  Extended  Term.  Provided  that no Event  of  Default  shall  have
occurred and be continuing,  this  Agreement  shall be in full force and effect,
the Term shall be automatically  extended for four (4) consecutive renewal terms
of twelve (12) years each  (collectively,  the "Extended Terms"),  unless Tenant
shall give Landlord Notice,  not later than two (2) years prior to the scheduled
expiration of the then current Term of this Agreement (Fixed or Extended, as the
case may be),  that  Tenant  elects not so to extend the term of this  Agreement
(and time shall be of the essence with respect to the giving of such Notice).

         Each Extended Term shall  commence on the day succeeding the expiration
of the Fixed Term or the preceding Extended Term, as the case may be. All of the
terms,  covenants  and

                                      -14-
<PAGE>

provisions of this Agreement shall apply to each such Extended Term, except that
Tenant  shall have no right to extend  the Term  beyond  the  expiration  of the
Extended  Terms.  If Tenant  shall give  Notice that it elects not to extend the
Term in accordance  with this Section 2.4, this  Agreement  shall  automatically
terminate at the end of the Term then in effect and Tenant shall have no further
option to extend the Term of this  Agreement.  Otherwise,  the extension of this
Agreement  shall  be  automatically   effected  without  the  execution  of  any
additional documents;  it being understood and agreed,  however, that Tenant and
Landlord  shall  execute such  documents  and  agreements  as either party shall
reasonably require to evidence the same.

         2.5 Landlord's Early Termination Right.  Landlord shall have the right,
to terminate this Agreement with respect to the Leased Property,  subject to and
upon the following terms and conditions:

                  (a) Landlord  gives  Tenant  Notice that  Landlord  reasonably
         believes  that  the  minimum  net  worth  of  Wyndham   (determined  in
         accordance  with  GAAP) is less  than or equal to One  Billion  Dollars
         ($1,000,000,000); and

                  (b) Within ten (10) days after receipt of the Notice described
         in clause (a) above,  Tenant  fails to  deliver  to  Landlord  evidence
         reasonably  satisfactory  to  Landlord  that the  minimum  net worth of
         Wyndham  (determined  in  accordance  with GAAP)  exceeds  One  Billion
         Dollars ($1,000,000,000).

         In the event  Landlord  elects so to  terminate  this  Agreement,  this
Agreement  shall so terminate  upon the date set forth in such Notice (but in no
event less than ten (10) days after the date thereof).

                                   ARTICLE 3

                                      RENT

         3.1 Rent.  Tenant  shall pay, in lawful  money of the United  States of
America which shall be legal tender for the payment of public and private debts,
without  offset,  abatement,  demand or deduction  (unless  otherwise  expressly
provided in this  Agreement),  Minimum Rent and Additional  Rent to Landlord and
Additional  Charges to the party to whom such  Additional  Charges are  payable,
during the Term.  All  payments  to Landlord  shall be made by wire  transfer of
immediately  available federal funds or by other means acceptable to Landlord in
its sole discretion. Rent for any partial Accounting Period shall be prorated on
a per diem basis.

                  3.1.1 Minimum Rent.

                  (a)  Minimum  Rent  shall  be paid  in  advance  on the  first
         Business Day of each month;  provided,  however, that the first payment
         of Minimum  Rent shall be payable  on the  Commencement  Date (and,  if
         applicable,  such  payment  shall be  prorated  as provided in the last
         sentence of the first paragraph of Section 3.1).

                  (b) Adjustments of Minimum Rent Following  Disbursements Under
         Sections  5.1.3(b),  10.2.3  or  11.2.  Effective  on the  date of each
         disbursement  to  pay  for  the  cost  of

                                      -15-
<PAGE>

         any  repairs,  maintenance,  renovations  or  replacements  pursuant to
         Sections  5.1.3(b),  10.2.3 or 11.2 with respect to any  Property,  the
         Minimum  Rent shall be  increased  by a per annum  amount  equal to the
         Disbursement   Rate  times  the  amount  so  disbursed.   If  any  such
         disbursement is made during any month on a day other than the first day
         of a month,  Tenant  shall  pay to  Landlord  on the  first  day of the
         immediately  following month (in addition to the amount of Minimum Rent
         payable  with  respect to such  month,  as  adjusted  pursuant  to this
         paragraph  (b)) the  amount  by which  Minimum  Rent for the  preceding
         month, as adjusted for such disbursement on a per diem basis,  exceeded
         the amount of Minimum Rent paid by Tenant for such preceding month.

                  (c)  Adjustments  of  Minimum  Rent  Following  Partial  Lease
         Termination. If this Lease shall terminate with respect to any Property
         but less than all of the Leased Property, Minimum Rent shall be reduced
         by the affected Property's allocable share of Minimum Rent.

                  3.1.2 Additional Rent.

                  (a) Amount.  Commencing  with the second Lease Year,  for each
         Lease Year or portion thereof,  Tenant shall pay an aggregate amount of
         additional rent  ("Additional  Rent") with respect to each Property for
         such Lease Year in an  amount,  not less than zero,  equal to seven and
         one-half percent (7.5%) of Excess Total Hotel Sales for such Property.

                  (b) Monthly Installments.  Installments of Additional Rent for
         each Lease Year or portion thereof shall be calculated and paid monthly
         in  arrears.   Such  payment  shall  be  accompanied  by  an  Officer's
         Certificate  setting forth the  calculation of Additional  Rent due and
         payable for such month.

                  (c)  Reconciliation of Additional Rent. On or before April 30,
         1999, Tenant shall deliver to Landlord an Officer's Certificate setting
         forth the  calculation  of Total Hotel Sales for each  Property for the
         Base Year,  together with an audit thereof by Ernst & Young LLP, Arthur
         Anderson and Co., or another "Big Four," so-called, firm of independent
         certified  public  accountants  proposed  by  Tenant  and  approved  by
         Landlord (which approval shall not be unreasonably withheld or delayed)
         (the "Accountants").  In addition,  on or before April 30 of each year,
         commencing  April  30,  2000,  Tenant  shall  deliver  to  Landlord  an
         Officer's  Certificate  setting  forth the Total  Hotel  Sales for each
         Property for the preceding Lease Year and the calculation of Additional
         Rent  payable  with  respect  to such  Property  for such  Lease  Year,
         together with an audit thereof, conducted by the Accountants.

                  If the annual Additional Rent for such preceding Lease Year as
         shown in the Officer's  Certificate  exceeds the amount previously paid
         with  respect  thereto  by  Tenant,  Tenant  shall  pay such  excess to
         Landlord  at  such  time as the  Officer's  Certificate  is  delivered,
         together  with  interest at the Interest  Rate,  which  interest  shall
         accrue from the close of such preceding  Lease Year until the date that
         such  certificate  is required to be delivered  and,  thereafter,  such
         interest  shall  accrue at the Overdue  Rate,  until the amount of such
         difference  shall  be  paid  or  otherwise  discharged.  If the  annual
         Additional Rent

                                      -16-
<PAGE>

         such preceding Lease Year as shown in the Officer's Certificate is less
         than the  amount  previously  paid  with  respect  thereto  by  Tenant,
         provided   that  no  Event  of  Default  shall  have  occurred  and  be
         continuing,  Landlord shall grant Tenant a credit against the Rent next
         coming due in the amount of such difference,  together with interest at
         the Interest Rate, which interest shall accrue from the date of payment
         by Tenant  until the date such  credit is applied or paid,  as the case
         may be. If such  credit  cannot be made  because  the Term has  expired
         prior to application in full thereof,  provided no Event of Default has
         occurred and is continuing, Landlord shall pay the unapplied balance of
         such credit to Tenant,  together  with  interest at the Interest  Rate,
         which  interest  shall  accrue from the date of payment by Tenant until
         the date of payment by Landlord.

                  (d) Confirmation of Additional Rent. Tenant shall utilize,  or
         cause  to be  utilized,  an  accounting  system  for each  Property  in
         accordance  with its usual and  customary  practices  and in accordance
         with GAAP,  which will  accurately  record  all Total  Hotel  Sales and
         Tenant shall retain,  for at least three (3) years after the expiration
         of each Lease Year,  reasonably  adequate  records  conforming  to such
         accounting  system  showing all Total Hotel Sales for such Property for
         such Lease  Year.  Landlord,  at its own  expense,  except as  provided
         hereinbelow,  shall  have the  right,  exercisable  by Notice to Tenant
         within  one  (1)  year  after  receipt  of  the  applicable   Officer's
         Certificate,  by  its  accountants  or  representatives  to  audit  the
         information  set  forth in the  Officer's  Certificate  referred  to in
         subparagraph (c) above and, in connection with such audits,  to examine
         Tenant's  and the  Manager's  books and records  with  respect  thereto
         (including  supporting  data and sales and excise tax returns).  If any
         such audit  discloses a deficiency  in the payment of  Additional  Rent
         and,  either  Tenant agrees with the result of such audit or the matter
         is otherwise  compromised with Landlord,  Tenant shall forthwith pay to
         Landlord the amount of the deficiency, as finally agreed or determined,
         together with interest at the Interest Rate, from the date such payment
         should  have  been  made  to the  date  of  payment  thereof.  If  such
         deficiency,  as agreed upon or compromised  as aforesaid,  is more than
         four percent (4%) of the Total Hotel Sales  reported by Tenant for such
         Lease  Year  and,  as a  result,  Landlord  did not  receive  at  least
         ninety-five  percent (95%) of the Additional  Rent payable with respect
         to such Lease Year,  Tenant shall pay the reasonable cost of such audit
         and  examination.  If any such audit  discloses  that  Tenant paid more
         Additional  Rent for any Lease Year than was due hereunder,  and either
         Landlord  agrees  with  the  result  of such  audit  or the  matter  is
         otherwise determined,  provided no Event of Default has occurred and is
         continuing, Landlord shall grant Tenant a credit equal to the amount of
         such overpayment against the Rent next coming due in the amount of such
         difference, as finally agreed or determined,  together with interest at
         the Interest Rate, which interest shall accrue from the time of payment
         by Tenant  until the date such  credit is applied or paid,  as the case
         may be. If such a credit  cannot be made  because  the Term has expired
         before the credit can be applied in full,  provided no Event of Default
         has  occurred  and is  continuing,  Landlord  shall  pay the  unapplied
         balance  of such  credit  to  Tenant,  together  with  interest  at the
         Interest Rate,  which interest shall accrue from the date of payment by
         Tenant until the date of payment from Landlord.

                  Any proprietary  information obtained by Landlord with respect
         to Tenant pursuant to the provisions of this Agreement shall be treated
         as confidential,  except that

                                      -17-
<PAGE>

         such  information may be used,  subject to appropriate  confidentiality
         safeguards,  in any  litigation  between the parties and except further
         that Landlord may disclose such information to its prospective lenders,
         provided  that  Landlord  shall direct and obtain the agreement of such
         lenders to maintain such information as  confidential.  The obligations
         of Tenant and Landlord  contained in this Section  3.1.2 shall  survive
         the expiration or earlier termination of this Agreement.

                  3.1.3 Additional  Charges. In addition to the Minimum Rent and
Additional Rent payable hereunder,  Tenant shall pay to the appropriate  parties
and  discharge  as  and  when  due  and  payable  the  following  (collectively,
"Additional Charges"):

                  (a)  Impositions.  Subject to Article 8 relating to  permitted
         contests, Tenant shall pay, or cause to be paid, all Impositions before
         any fine, penalty, interest or cost (other than any opportunity cost as
         a result of a  failure  to take  advantage  of any  discount  for early
         payment)  may be  added  for  non-payment,  such  payments  to be  made
         directly to the taxing authorities where feasible,  and shall promptly,
         upon request,  furnish to Landlord copies of official receipts or other
         reasonably  satisfactory  proof  evidencing such payments.  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),  Tenant 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 as the same  become  due and  before any
         fine, penalty,  premium, further interest or cost may be added thereto.
         Landlord, at its expense, shall, to the extent required or permitted by
         Applicable Law,  prepare and file all tax returns and pay all taxes due
         in respect of Landlord's  net income,  gross  receipts,  sales and use,
         single business,  transaction  privilege,  rent, ad valorem,  franchise
         taxes and taxes on its  capital  stock,  and  Tenant,  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  Government  Agencies.
         Provided no Event of Default shall have occurred and be continuing,  if
         any  refund  shall be due from any taxing  authority  in respect of any
         Imposition  paid by Tenant,  the same shall be paid over to or retained
         by  Tenant.  Landlord  and  Tenant  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.  In the event  Government  Agencies
         classify any property  covered by this Agreement as personal  property,
         Tenant   shall  file  all   personal   property  tax  returns  in  such
         jurisdictions  where it may legally so file.  Each party shall,  to the
         extent it possesses the same,  provide the other,  upon  request,  with
         cost and  depreciation  records  necessary  for filing  returns for any
         property so classified as personal property.  Where Landlord is legally
         required to file personal  property tax returns for property covered by
         this Agreement, Landlord shall provide Tenant with copies of assessment
         notices  in  sufficient  time  for  Tenant  to  file  a  protest.   All
         Impositions   assessed   against  such  personal   property   shall  be
         (irrespective  of whether  Landlord or Tenant  shall file the  relevant
         return)  paid by Tenant  not later than the last date on which the same
         may be made without interest or penalty.

                                      -18-
<PAGE>

                  Landlord shall give prompt Notice to Tenant of all Impositions
         payable  by  Tenant  hereunder  of  which  Landlord  at  any  time  has
         knowledge;  provided, however, that Landlord's failure to give any such
         notice shall in no way diminish  Tenant's  obligation  hereunder to pay
         such  Impositions  (other  than any  penalties  that  accrue due to the
         failure of Landlord to promptly  notify  Tenant),  unless such  failure
         continues  for more than  twelve (12)  months  after the date  Landlord
         learned of such Imposition.

                  (b) Utility Charges.  Tenant shall pay or cause to be paid all
         charges for  electricity,  power,  gas, oil, water and other  utilities
         used in connection with the Leased Property.

                  (c) Insurance  Premiums.  Tenant shall pay or cause to be paid
         all  premiums  for the  insurance  coverage  required to be  maintained
         pursuant to Article 9.

                  (d)  Obligations  under  Purchase  Agreements.   Tenant  shall
         protect, indemnify and hold harmless Landlord for, from and against all
         liabilities, obligations, claims, damages, penalties, causes of action,
         costs  and  reasonable   expenses   (including,   without   limitation,
         reasonable  attorneys'  fees),  imposed upon or incurred by or asserted
         against  Landlord  under  any  Purchase  Agreement  or  the  Assignment
         Agreement, excluding, however, (i) the payment of the Purchase Price by
         Landlord specified in Part 3 of Schedule A1 of each Purchase Agreement,
         and (ii) any liability of Landlord arising under any Purchase Agreement
         that is determined,  in a final  non-appealable  judgment by a court of
         competent  jurisdiction,  to have resulted  from the gross  negligence,
         wilful  misconduct or failure of Landlord to perform the obligations of
         purchaser  thereunder  that  arise  after  the  effective  date  of the
         Assignment Agreement.

                  (e) Other  Charges.  Tenant  shall pay or cause to be paid all
         other amounts,  liabilities and obligations  with respect to the Leased
         Property and this Agreement, including, without limitation, all amounts
         payable  under any  equipment  leases and all  agreements  to indemnify
         Landlord under Sections 4.3.3 and 9.7.

                  (f)  Reimbursement for Additional  Charges.  If Tenant pays or
         causes to be paid property taxes or similar or other Additional Charges
         attributable  to  periods  after  the  end of the  Term,  whether  upon
         expiration  or  sooner   termination  of  this  Agreement  (other  than
         termination  by reason of an Event of  Default),  Tenant may,  within a
         reasonable  time after the end of the Term,  provide Notice to Landlord
         of its estimate of such  amounts.  Landlord  shall  promptly  reimburse
         Tenant  for all  payments  of such taxes and other  similar  Additional
         Charges  that are  attributable  to any  period  after the Term of this
         Agreement.

         3.2 Late  Payment of Rent,  Etc. If any  installment  of Minimum  Rent,
Additional Rent or Additional  Charges (but only as to those Additional  Charges
which are payable  directly to Landlord)  shall not be paid within ten (10) days
after its due date, Tenant shall pay Landlord, 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 Tenant pays any Additional  Charges
directly to Landlord or any Hotel Mortgagee  pursuant to any requirement of this
Agreement,  Tenant shall

                                      -19-
<PAGE>

be relieved of its  obligation to pay such  Additional  Charges to the Entity to
which they would  otherwise be due. If any payments due from  Landlord to Tenant
shall not be paid within ten (10) days after its due date, Landlord shall pay to
Tenant,  on demand,  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.

         In the event of any  failure  by Tenant to pay any  Additional  Charges
when due, Tenant shall promptly pay and discharge,  as Additional Charges, every
fine, penalty,  interest and cost which is added for non-payment or late payment
of such items. Landlord shall have all legal,  equitable and contractual rights,
powers and remedies provided either in this Agreement or by statute or otherwise
in the  case  of  non-payment  of the  Additional  Charges  as in  the  case  of
non-payment of the Minimum Rent and Additional Rent.

         3.3 Net Lease.  The Rent shall be  absolutely  net to  Landlord so that
this Agreement  shall yield to Landlord the full amount of the  installments  or
amounts of the Rent throughout the Term, subject to any other provisions of this
Agreement  which expressly  provide  otherwise,  including those  provisions for
adjustment or abatement of such Rent.

         3.4 No Termination,  Abatement,  Etc. Except as otherwise  specifically
provided in this Agreement,  each of Landlord and Tenant,  to the maximum extent
permitted by law,  shall remain bound by this  Agreement in accordance  with its
terms and shall not take any action  without the consent of the other to modify,
surrender  or  terminate  this  Agreement.  In  addition,  except  as  otherwise
expressly provided in this Agreement,  Tenant shall not seek, or be entitled to,
any abatement, deduction, deferment or reduction of the Rent, or set-off against
the  Rent,  nor shall the  respective  obligations  of  Landlord  and  Tenant be
otherwise  affected by reason of (a) any damage to or  destruction of the Leased
Property or any portion thereof from whatever cause or any Condemnation, (b) the
lawful or unlawful  prohibition  of, or  restriction  upon,  Tenant's use of the
Leased Property,  or any portion thereof,  or the interference  with such use by
any Person or by reason of  eviction  by  paramount  title;  (c) any claim which
Tenant may have against Landlord by reason of any default (other than a monetary
default) or breach of any warranty by Landlord under this Agreement or any other
agreement  between  Landlord  and Tenant,  or to which  Landlord  and Tenant are
parties;   (d)  any   bankruptcy,   insolvency,   reorganization,   composition,
readjustment,   liquidation,   dissolution,  winding  up  or  other  proceedings
affecting  Landlord or any assignee or  transferee  of Landlord;  or (e) for any
other cause whether similar or dissimilar to any of the foregoing  (other than a
monetary default by Landlord);  provided,  however, that the foregoing shall not
apply or be  construed  to restrict  Tenant's  rights in the event of any act or
omission by Landlord constituting gross negligence or willful misconduct. Except
as otherwise  specifically provided in this Agreement,  Tenant hereby waives all
rights  arising from any  occurrence  whatsoever,  which may now or hereafter be
conferred upon it by law (a) to modify, surrender or terminate this Agreement or
quit or surrender the Leased Property or any portion thereof, or (b) which would
entitle Tenant to any abatement,  reduction, suspension or deferment of the Rent
or other sums payable or other  obligations to be performed by Tenant hereunder.
The  obligations  of each party  hereunder  shall be  separate  and  independent
covenants  and  agreements,  and the Rent and all other  sums  payable by Tenant
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
Agreement.  In any instance where,  after the occurrence of an Event of

                                      -20-
<PAGE>

Default,  Landlord  retains funds which, but for the occurrence of such Event of
Default, would be payable to Tenant,  Landlord shall refund such funds to Tenant
to the extent the amount  thereof  exceeds the amount  necessary  to  compensate
Landlord for any cost,  loss or damage incurred in connection with such Event of
Default.

         3.5 Security Deposit.  Tenant has deposited with Landlord the amount of
Fifteen Million Dollars  ($15,000,000)  (the "Security  Deposit").  The Security
Deposit  shall be held by Landlord as security for the faithful  observance  and
performance  by  Tenant  of all the  terms,  covenants  and  conditions  of this
Agreement by Tenant to be observed and performed. The Security Deposit shall not
be mortgaged,  assigned,  transferred or otherwise  encumbered by Tenant without
the prior  written  consent of Landlord,  and any such act on the part of Tenant
without first having obtained  Landlord's consent (which consent may be given or
withheld  by Landlord  in  Landlord's  sole and  absolute  discretion)  shall be
without force and effect and shall not be binding upon Landlord.

         If any Event of Default shall occur and be continuing, Landlord may, at
its option and without  prejudice to any other remedy which Landlord may have on
account  thereof,  appropriate and apply the entire Security  Deposit or so much
thereof as may be necessary  to  compensate  Landlord  toward the payment of the
Rent or other sums or loss or damage sustained by Landlord due to such breach by
Tenant and Tenant  shall,  upon  demand,  restore  the  Security  Deposit to the
original sum deposited. It is understood and agreed that the Security Deposit is
not to be considered as prepaid rent, nor shall damages be limited to the amount
of the Security Deposit.  Should Tenant comply with all the terms, covenants and
conditions of this Agreement,  the Security Deposit shall be returned in full to
Tenant at the end of the Term. Landlord shall have no obligation to pay interest
on the  Security  Deposit  and shall have the right to  commingle  the same with
Landlord's  other funds.  If Landlord  conveys  Landlord's  interest  under this
Agreement, the Security Deposit, or any part thereof not previously applied, may
be turned over by Landlord to Landlord's grantee, and, if so turned over, Tenant
shall look solely to such grantee for proper application of the Security Deposit
in  accordance  with the terms of this  Section  3.5 and the  return  thereof in
accordance  herewith.  No Hotel Mortgagee shall be responsible to Tenant for the
return or application of the Security Deposit, whether or not it succeeds to the
position of Landlord  hereunder,  unless the  Security  Deposit  shall have been
received in hand by such holder.

         In the event of bankruptcy or other creditor-debtor proceedings against
Tenant,  the Security Deposit shall be deemed to be applied first to the payment
of the Rent and other  charges due Landlord for all periods  prior to the filing
of such proceedings.

                                      -21-
<PAGE>

                                   ARTICLE 4

                           USE OF THE LEASED PROPERTY

4.1      Permitted Use.

                  4.1.1 Permitted Use.

                  (a)  Tenant  shall,  at all times  during  the Term and at any
         other time that Tenant shall be in possession  of the Leased  Property,
         continuously use and operate, and cause the Manager to use and operate,
         each  Property as a  Summerfield  Suites Hotel and any uses  incidental
         thereto. Tenant shall not use (and shall direct the Manager not to use)
         the Leased  Property or any  portion  thereof for any other use without
         the  prior  written  consent  of  Landlord.  No use  shall  be  made or
         permitted  to be made of the Leased  Property and no acts shall be done
         thereon  which  will cause the  cancellation  of any  insurance  policy
         covering  the  Leased  Property  or any part  thereof  (unless  another
         adequate  policy is  available),  nor shall  Tenant  sell or  otherwise
         provide  or  permit  to be kept,  used or sold in or about  the  Leased
         Property any article  which may be prohibited by law or by the standard
         form  of fire  insurance  policies,  or any  other  insurance  policies
         required to be carried hereunder,  or fire  underwriter's  regulations.
         Tenant shall, at its sole cost (except as expressly provided in Section
         5.1.3(b)),  comply (or direct the Manager to comply) with all Insurance
         Requirements.  Tenant  shall not take or omit to take (and Tenant shall
         direct the Manager not to take or omit to take) any action,  the taking
         or omission of which materially  impairs the value or the usefulness of
         any Property or any part thereof for its Permitted Use.

                  (b) Notwithstanding  the foregoing,  in the event that, in the
         reasonable  determination of Tenant, it shall no longer be economically
         practical to operate any Property as an all suites hotel,  Tenant shall
         give  Landlord  Notice  thereof,   which  Notice  shall  set  forth  in
         reasonable detail the reasons therefor. Thereafter, Landlord and Tenant
         shall  negotiate in good faith to agree on an  alternative  use for the
         Property  or a  replacement  property  therefor  (in  which  event  the
         affected Property shall be transferred to Tenant or Tenant's designee),
         appropriate  adjustments  to the  Additional  Rent  and  other  related
         matters; provided,  however, in no such event shall the Minimum Rent be
         reduced or abated.

                  4.1.2 Necessary  Approvals.  Tenant shall proceed with all due
diligence and exercise best efforts to obtain and maintain, and shall direct the
Manager to obtain and maintain,  all approvals necessary to use and operate, for
its Permitted Use, each Property and the Hotel located thereon under  applicable
law.

                  4.1.3 Lawful Use, Etc.  Tenant shall not, and shall direct the
Manager  not to,  use or suffer  or permit  the use of the  Leased  Property  or
Tenant's Personal Property, if any, for any unlawful purpose.  Tenant shall not,
and shall direct the Manager not to,  commit or suffer to be committed any waste
on any Property,  or in the related Hotel,  nor shall Tenant cause or permit any
unlawful  nuisance  thereon or therein.  Tenant  shall not, and shall direct the
Manager not to, suffer nor permit any Property,  or any portion  thereof,  to be
used in such a manner as (i) might

                                      -22-
<PAGE>

reasonably  impair  Landlord's title thereto or to any portion thereof,  or (ii)
may reasonably  allow a claim or claims for adverse usage or adverse  possession
by the public, as such, or of implied dedication of such Property or any portion
thereof.

         4.2 Compliance with Legal/Insurance  Requirements,  Etc. Subject to the
provisions of Article 8 and Section 5.1.3(b), Tenant, at its sole expense, shall
(or shall direct the Manager to) (i) comply with all material Legal Requirements
and  Insurance  Requirements  in  respect  of the use,  operation,  maintenance,
repair, alteration and restoration of the Leased Property and with the terms and
conditions of any ground lease  affecting the Leased  Property and (ii) procure,
maintain and comply with all appropriate licenses,  and other authorizations and
agreements  required for any use of the Leased  Property  and Tenant's  Personal
Property,  if any, then being made, and for the proper  erection,  installation,
operation and maintenance of the Leased Property or any part thereof.

         4.3 Environmental Matters.

                  4.3.1  Restriction on Use, Etc.  During the Term and any other
time that Tenant shall be in possession of the Leased Property, Tenant shall not
(and shall direct the Manager not to) store,  spill upon, dispose of or transfer
to or from the Leased  Property any  Hazardous  Substance,  except in quantities
that are customary in normal operation and maintenance of hotel properties,  and
then only in compliance with all Applicable Laws.  During the Term and any other
time that Tenant shall be in possession of any Property,  Tenant shall  maintain
(and shall  direct the Manager to maintain)  such  Property at all times free of
any  Hazardous  Substance  (except in  quantities  that are  customary in normal
operation and maintenance of hotel properties,  and then only in compliance with
all  Applicable  Laws).  Tenant  shall  promptly:  (a) upon receipt of notice or
knowledge  and shall  direct the  Manager  upon  receipt of notice or  knowledge
promptly to, notify  Landlord in writing of any material change in the nature or
extent of Hazardous Substances at the Leased Property,  (b) transmit to Landlord
a copy of any Community  Right to Know or similar report which is required to be
filed by Tenant or the Manager with respect to the Leased  Property  pursuant to
SARA Title III or any other  Applicable Law, and any release  notification  form
filed by Tenant or the Manager with respect to the Leased  Property  pursuant to
CERCLA or any other  Applicable  Law,  (c)  transmit to  Landlord  copies of any
citations,  orders,  notices or other  governmental  communications  received by
Tenant or the Manager or their respective agents or representatives with respect
thereto  (collectively,  "Environmental  Notice"),  which  Environmental  Notice
requires  a  written  response  or  any  action  to  be  taken  and/or  if  such
Environmental  Notice  gives  notice of and/or  presents a material  risk of any
material  violation of any Applicable Law and/or presents a material risk of any
material cost,  expense,  loss or damage (an  "Environmental  Obligation"),  (d)
observe and comply  (and  direct the  Manager to observe  and  comply)  with all
Applicable  Laws  relating to the use,  maintenance  and  disposal of  Hazardous
Substances  and all orders or directives  from any official,  court or agency of
competent  jurisdiction  relating to the use or  maintenance  or  requiring  the
removal,  treatment,  containment or other disposition  thereof,  and (e) pay or
otherwise  dispose of any fine,  charge or Imposition  related  thereto,  unless
Tenant or the Manager  shall  contest the same in good faith and by  appropriate
proceedings  and the right to use and the value of the  Leased  Property  is not
materially and adversely affected thereby.

                                      -23-
<PAGE>

         If, at any time prior to the termination of this  Agreement,  Hazardous
Substances  in  amounts or  concentrations  requiring  investigation  or cleanup
(other than those  maintained in accordance with Applicable Laws) are discovered
on the Leased  Property,  subject to Tenant's and the Manager's right to contest
the same in  accordance  with Article 8, Tenant shall take (and shall direct the
Manager to take) all actions and incur any and all expenses,  as are required by
any Government Agency and by Applicable Law, (i) to clean up and remove from and
about the Leased Property all Hazardous Substances thereon,  (ii) to contain and
prevent any further  release or threat of release of Hazardous  Substances on or
about the Leased  Property and (iii) to use good faith  efforts to eliminate any
further  release or threat of release of  Hazardous  Substances  on or about the
Leased Property.

                  4.3.2 Environmental Report. From time to time during the Term,
Landlord shall have the right to require an update of the Phase I  environmental
site  assessment  reports  furnished  to Landlord  prior to the date hereof with
respect  to  the  Leased  Property,   which  report  shall  be  prepared  by  an
environmental  engineering firm selected by Landlord.  The costs and expenses of
such engineering firm shall be divided equally between Landlord and Tenant.

                  4.3.3  Indemnification  of  Landlord.  Tenant  shall  protect,
indemnify and hold harmless  Landlord and each Hotel Mortgagee,  their trustees,
officers,  agents,  employees  and  beneficiaries,  and any of their  respective
successors  or  assigns  with  respect  to  this  Agreement  (collectively,  the
"Indemnitees" and, individually,  an "Indemnitee") for, from and against any and
all debts, liens, claims,  causes of action,  administrative  orders or notices,
costs, fines, penalties or expenses (including,  without limitation,  reasonable
attorney's fees and expenses) imposed upon,  incurred by or asserted against any
Indemnitee  resulting from,  either directly or indirectly,  the presence during
the  Term  (or any  other  time  Tenant  shall be in  possession  of the  Leased
Property)  in, upon or under the soil or ground water of the Leased  Property or
any properties  surrounding the Leased  Property of any Hazardous  Substances in
violation of any Applicable Law or otherwise, provided that any of the foregoing
arises by reason of any failure by Tenant,  the  Manager or any Person  claiming
by,  through or under Tenant or the Manager to perform or comply with any of the
terms of this Section 4.3,  except to the extent the same arise from the acts or
omissions of Landlord or any other Indemnitee or during any period that Landlord
or a Person  designated by Landlord  (other than Tenant) is in possession of the
Leased  Property.  Tenant's duty herein  includes,  but is not limited to, costs
associated  with  personal  injury or property  damage claims as a result of the
presence  prior to the  expiration  or  sooner  termination  of the Term and the
surrender  of the Leased  Property to Landlord in  accordance  with the terms of
this  Agreement  of  Hazardous  Substances  in, upon or under the soil or ground
water of the Leased  Property.  Upon Notice from  Landlord  and any other of the
Indemnitees,  Tenant  shall  undertake  the defense,  at Tenant's  sole cost and
expense, of any indemnification  duties set forth herein, in which event, Tenant
shall not be liable for payment of any  duplicative  attorneys' fees incurred by
any Indemnitee.

         Tenant shall, upon demand,  pay to Landlord,  as an Additional  Charge,
any cost, expense,  loss or damage (including,  without  limitation,  reasonable
attorneys' fees)  reasonably  incurred by Landlord and arising from a failure of
Tenant to observe  and perform  the  requirements  of this  Section  4.3,  which
amounts shall bear  interest  from the date ten (10) days after  written  demand
therefor  is given to Tenant  until paid by Tenant to  Landlord  at the  Overdue
Rate.

                                      -24-
<PAGE>

                  4.3.4  Survival.  The  provisions  of this  Section  4.3 shall
survive the expiration or sooner termination of this Agreement.

                                   ARTICLE 5

                             MAINTENANCE AND REPAIRS

         5.1 Maintenance and Repair.

                  5.1.1 Tenant's General Obligations.  Tenant shall, at its sole
cost and expense (except as expressly provided in Sections  5.1.3(b),  10.2.3 or
11.2),  or shall direct the Manager to, keep the Leased Property and all private
roadways,  sidewalks  and  curbs  appurtenant  thereto  (and  Tenant's  Personal
Property) in good order and repair,  reasonable wear and tear excepted  (whether
or not the need for such repairs occurs as a result of Tenant's or the Manager's
use, any prior use,  the elements or the age of the Leased  Property or Tenant's
Personal Property or any portion thereof), and shall promptly make (or cause the
Manager to make) all necessary and appropriate repairs and replacements  thereto
of  every  kind  and  nature,  whether  interior  or  exterior,   structural  or
nonstructural,  ordinary or extraordinary,  foreseen or unforeseen or arising by
reason of a condition  existing prior to the commencement of the Term (concealed
or  otherwise).  All  repairs  shall  be  made in a  good,  workmanlike  manner,
consistent  with the  Manager's  and industry  standards for like hotels in like
locales,  in accordance with all applicable  federal,  state and local statutes,
ordinances,  by-laws,  codes,  rules and regulations  relating to any such work.
Tenant  shall not take or omit to take (and shall direct the Manager not to take
or omit to take) any action,  the taking or  omission of which would  materially
and adversely  impair the value or the usefulness of the Leased  Property or any
part thereof for its  Permitted  Use.  Tenant's  obligations  under this Section
5.1.1 shall be limited in the event of any casualty or Condemnation as set forth
in Sections 10.2 and 11.2 and also as set forth in Section 5.1.3(b) and Tenant's
obligations  with  respect to Hazardous  Substances  are as set forth in Section
4.3.

                  5.1.2 FF&E Reserve.

                  (a)  Tenant  has  established  a reserve  account  (the  "FF&E
         Reserve")  for each  Hotel in the FF&E  Bank.  The  purpose of the FF&E
         Reserve is to cover the cost of:

                           (i)   Replacements   and   renewals  to  any  Hotel's
                  furnishings, fixtures and equipment;

                           (ii) Certain  routine  repairs and maintenance to any
                  Hotel building which are normally  capitalized under GAAP such
                  as exterior  and  interior  repainting,  resurfacing  building
                  walls,  floors, roofs and parking areas, and replacing folding
                  walls and the like; and

                           (iii)  Major  repairs,   alterations,   improvements,
                  renewals or replacements to any Hotel's buildings'  structure,
                  roof, or exterior  facade,  or to its mechanical,  electrical,
                  heating,  ventilating, air conditioning,  plumbing or vertical
                  transportation systems.

                                      -25-
<PAGE>

                  Tenant  agrees that it will,  from time to time,  execute such
         reasonable  documentation as may be requested by Landlord and any Hotel
         Mortgagee to assist  Landlord and such Hotel  Mortgagee in establishing
         or perfecting  the Hotel  Mortgagee's  security  interest in Landlord's
         residual interest in the funds which are in the FF&E Reserve,  it being
         acknowledged  and  agreed  that the funds in the FF&E  Reserve  are the
         property of Tenant; provided, however, that no such documentation shall
         contain any amendment to or  modification  of any of the  provisions of
         this Agreement.  It is understood and agreed that, during the Term, the
         FF&E  Reserve  may not be  applied  against  debts  secured  by a Hotel
         Mortgage  nor shall any Hotel  Mortgagee  have the right to approve the
         release of such funds  pursuant to the terms of this  Agreement  unless
         and until  Landlord  shall  default  in its  obligations  to such Hotel
         Mortgagee.

                  (b) Throughout the Term,  Tenant shall transfer (as of the end
         of each  month of the Term) into the FF&E  Reserve  an amount  equal to
         five  percent  (5%) of  aggregate  Total  Hotel  Sales  for the  Leased
         Property for such month.  Together with the  documentation  provided to
         Landlord pursuant to Section 3.1.2(c), Tenant shall deliver to Landlord
         an  Officer's  Certificate  setting  forth the total amount of deposits
         made to and expenditures from the FF&E Reserve for the preceding Fiscal
         Year,  together with a  reconciliation  of such  expenditures  with the
         applicable FF&E Estimate.

                  (c) Each year, on or before  December 1 of the preceding year,
         Tenant shall prepare an estimate (the "FF&E  Estimate") of FF&E Reserve
         expenditures  necessary  during  the  ensuing  calendar  year and shall
         submit  such FF&E  Estimate to  Landlord  for its review and  approval,
         which approval shall not be  unreasonably  withheld or delayed.  In the
         event  Landlord  shall fail to respond  within  thirty  (30) days after
         receipt  of the FF&E  Estimate,  such  FF&E  Estimate  shall be  deemed
         approved by Landlord.  All expenditures  from the FF&E Reserve shall be
         (as to both the amount of each such expenditure and the timing thereof)
         both reasonable and necessary, given the objective that each Hotel will
         be  maintained  and operated to a standard  comparable  to  competitive
         hotels.  All expenditures from the FF&E Reserve may only be used to pay
         expenditures  entered into on an "arm's length" basis with Persons that
         are not Affiliated  Persons of Tenant,  in each case without mark-up or
         the payment of  allocated  internal  costs of Tenant or any  Affiliated
         Person  (except for a purchasing  fee that may be paid to an Affiliated
         Person of Tenant in respect of any item  purchased  with funds from the
         FF&E  Reserve in an amount  not to exceed  3.5% of the lower of cost or
         the fair market value of such item).

                  (d) Tenant shall,  consistent with the FF&E Estimate  approved
         by Landlord,  from time to time make expenditures from the FF&E Reserve
         as it deems necessary provided that Tenant shall not materially deviate
         from the FF&E Estimate  approved by Landlord without the prior approval
         of Landlord,  except in the case of emergency where immediate action is
         necessary to prevent imminent danger to person or property.

                  (e)  Upon  the  expiration  or  sooner   termination  of  this
         Agreement,  funds in the FF&E Reserve and all property  purchased  with
         funds from the FF&E Reserve during the Term shall be paid,  granted and
         assigned to Landlord as Additional Charges.

                                      -26-
<PAGE>

                  (f) The FF&E Funded Amount,  together with amounts transferred
         into the FF&E Reserve in accordance with Section 5.1.2(b) hereof during
         the  1998  calendar  year,  shall  be  used to  fund  the  expenditures
         identified in the FF&E Estimate for the 1998 calendar  year, and to the
         extent of any excess, subsequent years.

                  5.1.3    Landlord's Obligations.

                  (a) Except as otherwise  expressly provided in this Agreement,
         Landlord  shall not, under any  circumstances,  be required to build or
         rebuild any improvement on the Leased Property, or to make any repairs,
         replacements,  alterations,  restorations  or renewals of any nature or
         description to the Leased Property,  whether ordinary or extraordinary,
         structural  or  nonstructural,  foreseen or  unforeseen,  or, except as
         provided in Sections  5.1.3(b),  10.2 and 11.2, to make any expenditure
         whatsoever with respect thereto,  or to maintain the Leased Property in
         any way.  Except as  otherwise  expressly  provided in this  Agreement,
         Tenant hereby waives, to the maximum extent permitted by law, the right
         to make  repairs at the  expense  of  Landlord  pursuant  to any law in
         effect on the date hereof or hereafter enacted. Landlord shall have the
         right  to  give,   record  and  post,   as   appropriate,   notices  of
         nonresponsibility  under  any  mechanic's  lien  laws now or  hereafter
         existing.

                  (b) If,  at any  time,  funds  in the  FF&E  Reserve  shall be
         insufficient  for  necessary  and  permitted  expenditures  thereof or,
         pursuant to the terms of this Agreement, Tenant is required to make any
         expenditures in connection  with any repair,  maintenance or renovation
         with   respect  to  the  Leased   Property   and  the  amount  of  such
         disbursements or expenditures exceeds the amount on deposit in the FF&E
         Reserve or such repair,  maintenance  or  renovation is not a permitted
         expenditure from the FF&E Reserve as described in Section  5.1.2(a)(i),
         (ii) and (iii),  Tenant  may, at its  election,  give  Landlord  Notice
         thereof, which Notice shall set forth, in reasonable detail, the nature
         of the required repair,  renovation or replacement,  the estimated cost
         thereof and such other information with respect thereto as Landlord may
         reasonably  require.  Provided  that no Event  of  Default  shall  have
         occurred and be continuing and Tenant shall  otherwise  comply with the
         applicable  provisions  of Article 6, Landlord  shall,  within ten (10)
         Business Days after such Notice,  subject to and in accordance with the
         applicable  provisions of Article 6,  disburse  such required  funds to
         Tenant  (or, if Tenant  shall so elect,  directly to the Manager or any
         other Person performing the required work) and, upon such disbursement,
         the Minimum  Rent shall be  adjusted  as provided in Section  3.1.1(b);
         provided,  however, that, in the event that Landlord shall elect not to
         disburse any funds  pursuant to this Section  5.1.3(b),  Tenant's  sole
         recourse  shall  be  to  elect  not  to  make  the  applicable  repair,
         maintenance or renovation.

                  5.1.4  Nonresponsibility  of Landlord,  Etc. All  materialmen,
contractors, artisans, mechanics and laborers and other persons contracting with
Tenant with  respect to the Leased  Property,  or any part  thereof,  are hereby
charged with notice that liens on the Leased Property or on Landlord's  interest
therein  are  expressly  prohibited  and that they must look solely to Tenant to
secure payment for any work done or material furnished by Tenant, the Manager or
for any other purpose during the term of this Agreement.

                                      -27-
<PAGE>

         Nothing contained in this Agreement shall be deemed or construed in any
way as constituting the consent or request of Landlord,  express or implied,  by
inference or otherwise, to any contractor, subcontractor, laborer or materialmen
for the  performance  of any labor or the  furnishing  of any  materials for any
alteration,  addition,  improvement or repair to the Leased Property or any part
thereof or as giving  Tenant any right,  power or  authority  to contract for or
permit the rendering of any services or the  furnishing  of any  materials  that
would give rise to the filing of any lien  against  the Leased  Property  or any
part thereof nor to subject Landlord's estate in the Leased Property or any part
thereof to liability  under any Mechanic's  Lien Law of any State in any way, it
being expressly  understood  Landlord's  estate shall not be subject to any such
liability.

         5.2  Tenant's  Personal  Property.  Tenant  shall  provide and maintain
throughout the Term all such Tenant's Personal Property as shall be necessary in
order to operate in compliance with applicable Legal  Requirements and Insurance
Requirements and otherwise in accordance with customary practice in the industry
for the  Permitted  Use  and  all of such  Personal  Property  shall,  upon  the
expiration  or earlier  termination  of this  Agreement,  become the property of
Landlord.  If, from and after the Commencement Date, Tenant acquires an interest
in any item of tangible  personal property (other than motor vehicles) on, or in
connection  with, the Leased Property which belongs to anyone other than Tenant,
Tenant shall require the agreements permitting such use to provide that Landlord
or its designee may assume Tenant's rights and obligations  under such agreement
upon the  termination  of this  Agreement  and the  assumption  of management or
operation of the Hotel by Landlord or its designee.

         5.3  Yield  Up.  Upon the  expiration  or  sooner  termination  of this
Agreement,  Tenant shall vacate and surrender the Leased Property to Landlord in
substantially  the same  condition  in which the Leased  Property  was in on the
Commencement Date, except as repaired, rebuilt, restored, altered or added to as
permitted or required by the provisions of this  Agreement,  reasonable wear and
tear  excepted  (and casualty  damage and  Condemnation,  in the event that this
Agreement is terminated following a casualty or total Condemnation in accordance
with Article 10 or Article 11 excepted).

         In  addition,  upon  the  expiration  or  earlier  termination  of this
Agreement, Tenant shall, at Landlord's sole cost and expense, use its good faith
efforts to transfer to and  cooperate  with  Landlord or  Landlord's  nominee in
connection  with the  processing of all  applications  for  licenses,  operating
permits  and other  governmental  authorizations  and all  contracts,  including
contracts  with  governmental  or  quasi-governmental   Entities  which  may  be
necessary for the use and operation of the Hotel as then operated.  If requested
by  Landlord,  Tenant  will  direct the  Manager to continue to manage any Hotel
designated by Landlord  after the  termination of this Agreement with respect to
any Property and for up to one hundred  twenty  (120) days,  on such  reasonable
terms  (which  shall  include a market rate  management  fee and an agreement to
reimburse the Manager for its reasonable  out-of-pocket costs and expenses,  and
reasonable administrative costs), as Landlord shall reasonably request.

         5.4 Management  Agreement.  Tenant shall not, without  Landlord's prior
written  consent,  amend or modify the  provisions of the  Management  Agreement
which  provide (i) that all  amounts  due from  Tenant to the  Manager  shall be
subordinate to all amounts due from Tenant to

                                      -28-
<PAGE>

Landlord  (provided  that,  as long as no Event of Default has  occurred  and is
continuing,  Tenant  may  pay  amounts  due the  Manager  under  the  Management
Agreement),  (ii) for operation of the Leased  Property under the  "Summerfield"
name,  (iii) that the Manager and their  Affiliated  Persons are prohibited from
operating,  managing or franchising  another Summerfield Suites hotel within the
designated  area on Exhibit C and (iv) for  termination  thereof,  at Landlord's
option,  upon the  termination  of this  Agreement.  Tenant  shall  not take any
action,  grant any consent or permit any action under the  Management  Agreement
which  might have a  material  adverse  effect on  Landlord,  without  the prior
written consent of Landlord;  provided,  however,  that Landlord's consent shall
not be required in connection with any assignment of the Manager's  rights under
the Management  Agreement to (x) any Affiliated Person of the Manager having the
full power,  right and  authority  to provide all  services  and  organizational
expertise as  contemplated  and required by the Management  Agreement or (y) any
Person who acquires all or substantially all of the management  contracts of the
Manager, provided that, in either such case, the Leased Property will retain the
right to use the "Summerfield"  name. In the event of an assignment  pursuant to
clause (y)  preceding,  provided  that the  successor  Manager (i)  assumes,  in
writing all obligations of the Manager under the Management Agreement,  and (ii)
has a Tangible Net Worth, as of the date of assignment,  equal to the greater of
the Tangible Net Worth of the Manager as of the date of this Agreement,  and the
Tangible Net Worth of the Manager as of the date of such assignment, the Manager
shall be released from all  liabilities  arising under the Management  Agreement
from and after the effective date of such assignment.  Tenant shall not agree to
any change in the Manager  (except as provided in the preceding  sentences),  to
any change in the  Management  Agreement  (except as provided  in the  preceding
sentences),  terminate the Management  Agreement or permit the Manager to assign
the Management Agreement (except as provided in the preceding sentences) without
the prior written approval of Landlord in each instance; provided, however, that
the Manager may grant a security interest in its right to receive payments under
the Management Agreement without Landlord's prior written approval.

                                   ARTICLE 6

                               IMPROVEMENTS, ETC.

         6.1  Improvements  to the  Leased  Property.  Tenant  shall  not  make,
construct  or install (and shall direct the Manager not to construct or install)
any Capital  Additions  (other than Capital  Additions of the type  described in
Section  5.1.2(a)(ii) and approved  pursuant to Section 5.1.2(c) with respect to
any Property  without,  in each  instance,  obtaining  Landlord's  prior written
consent,  which  consent  shall  not  be  unreasonably   withheld,   delayed  or
conditioned provided that (a) construction or installation of the same would not
adversely  affect or violate  any Legal  Requirement  or  Insurance  Requirement
applicable  to such  Property and (b) Landlord  shall have received an Officer's
Certificate  certifying  as to the  satisfaction  of the  conditions  set out in
clause (a) above;  provided,  however, that no such consent shall be required in
the event immediate  action is required to prevent  imminent danger to person or
property. Prior to commencing construction of any Capital Addition, Tenant shall
submit,  or shall direct the Manager or to submit,  to Landlord,  in writing,  a
proposal setting forth, in reasonable detail, any such proposed  improvement and
shall  provide to  Landlord  such plans and  specifications,  and such  permits,
licenses,  contracts and such other information  concerning the same as Landlord
may  reasonably  request.  Landlord  shall have  thirty  (30) days to review all
materials submitted to

                                      -29-
<PAGE>

Landlord in connection with any such proposal. Failure of Landlord to respond to
Tenant's or the Manager's  proposal within thirty (30) days after receipt of all
information and materials  requested by Landlord in connection with the proposed
improvement shall be deemed to constitute approval of the same. Without limiting
the  generality of the foregoing,  such proposal shall indicate the  approximate
projected cost of constructing such proposed  improvement and the use or uses to
which it will be put.  No Capital  Addition  shall be made which would tie in or
connect any Leased  Improvement with any other improvements on property adjacent
to such  Property  (and not part of the  Land)  including,  without  limitation,
tie-ins of buildings or other structures or utilities. Tenant shall not finance,
and shall  direct the Manager not to finance,  the cost of any  construction  of
such  improvement  by the  granting  of a lien on or  security  interest in such
Property or such improvement,  or Tenant's  interest therein,  without the prior
written  consent of  Landlord,  which  consent  may be  withheld  by Landlord in
Landlord's sole discretion.  Any such improvements shall, upon the expiration or
sooner termination of this Agreement,  remain or pass to and become the property
of  Landlord,   free  and  clear  of  all  encumbrances   other  than  Permitted
Encumbrances.

         6.2 Salvage.  All materials which are scrapped or removed in connection
with the making of either Capital Additions or non-Capital  Additions or repairs
required by Article 5 shall be or become the property of the party that paid for
such work.

                                   ARTICLE 7

                                      LIENS

         7.1  Liens.  Subject  to  Article 8,  Tenant  shall  not,  directly  or
indirectly,  create or allow to  remain  and shall  promptly  discharge,  at its
expense, any lien, encumbrance,  attachment,  title retention agreement or claim
upon  the  Leased  Property  or  Tenant's  leasehold  interest  therein  or  any
attachment,  levy,  claim or encumbrance in respect of the Rent,  other than (a)
Permitted Encumbrances, (b) restrictions, liens and other encumbrances which are
consented to in writing by Landlord, (c) liens for those taxes of Landlord which
Tenant is not  required to pay  hereunder,  (d)  subleases  permitted by Section
16.1, (e) liens for  Impositions or for sums resulting from  noncompliance  with
Legal Requirements so long as (i) the same are not yet due and payable,  or (ii)
are being  contested  in  accordance  with  Article  8, (f) liens of  mechanics,
laborers,  materialmen,  suppliers or vendors incurred in the ordinary course of
business  that  are not yet due and  payable  or are for  sums  that  are  being
contested in accordance  with Article 8, (g) any Hotel  Mortgages or other liens
which are the  responsibility  of Landlord pursuant to the provisions of Article
19, and (h) Landlord Liens and any other voluntary liens created by Landlord.

         7.2 Landlord's  Lien. In addition to any statutory  landlord's lien and
in order to secure  payment of the Rent and all other sums payable  hereunder by
Tenant,  and to secure  payment of any loss,  cost or damage which  Landlord may
suffer by reason of Tenant's breach of this Agreement, Tenant hereby grants unto
Landlord a security  interest in and an express  contractual  lien upon Tenant's
Personal  Property (except motor vehicles and liquor licenses and permits),  and
Tenant's  interest  in  all  ledger  sheets,  files,   records,   documents  and
instruments (including, without limitation, computer programs, tapes and related
electronic  data  processing)  relating  to the  operation  of the  Hotels  (the
"Records") and all proceeds  therefrom,  subject to any

                                      -30-
<PAGE>

Permitted Encumbrances; and such Tenant's Personal Property shall not be removed
from the Leased  Property  at any time when a Default or an Event of Default has
occurred and is continuing.

         Upon Landlord's  request,  Tenant shall execute and deliver to Landlord
financing  statements  in form  sufficient  to perfect the security  interest of
Landlord in Tenant's  Personal  Property and the proceeds  thereof in accordance
with the provisions of the applicable laws of the relevant State.  Tenant hereby
grants  Landlord an  irrevocable  limited  power of  attorney,  coupled  with an
interest,  to execute all such financing  statements in Tenant's name, place and
stead. The security interest herein granted is in addition to any statutory lien
for the Rent.

                                   ARTICLE 8

                               PERMITTED CONTESTS

         Tenant  shall have the right to contest  the amount or  validity of any
Imposition, Legal Requirement, Insurance Requirement,  Environmental Obligation,
lien, attachment, levy, encumbrance, charge or claim (collectively, "Claims") as
to the Leased  Property,  by appropriate  legal  proceedings,  conducted in good
faith and with due diligence, provided that (a) the foregoing shall in no way be
construed as relieving,  modifying or extending  Tenant's  obligation to pay any
Claims as finally  determined,  (b) such  contest  shall not cause  Landlord  or
Tenant to be in default  under any  mortgage  or deed of trust  encumbering  the
Leased Property (Landlord agreeing that any such mortgage or deed of trust shall
permit Tenant to exercise the rights granted  pursuant to this Article 8) or any
interest  therein or result in or  reasonably  be  expected  to result in a lien
attaching  to the Leased  Property,  (c) no part of the Leased  Property nor any
Rent therefrom shall be in any immediate danger of sale, forfeiture,  attachment
or loss,  and (d) Tenant shall  indemnify  and hold  harmless  Landlord from and
against  any cost,  claim,  damage,  penalty or  reasonable  expense,  including
reasonable attorneys' fees, incurred by Landlord in connection therewith or as a
result of Tenant's  exercise of its rights under this Article 8. Landlord agrees
to join in any such  proceedings if required  legally to prosecute such contest,
provided that Landlord shall not thereby be subjected to any liability  therefor
(including,  without  limitation,  for the  payment of any costs or  expenses in
connection  therewith)  unless  Tenant agrees by agreement in form and substance
reasonably  satisfactory  to Landlord,  to assume and  indemnify  Landlord  with
respect to the same.  Tenant  shall be  entitled to any refund of any Claims and
such charges and penalties or interest thereon which have been paid by Tenant or
paid by  Landlord  to the extent  that  Landlord  has been fully  reimbursed  by
Tenant.  If Tenant  shall  fail (x) to pay or cause to be paid any  Claims  when
finally  determined,  (y) to provide  reasonable  security  therefor,  or (z) to
prosecute  or cause to be  prosecuted  any such contest  diligently  and in good
faith, Landlord may, upon reasonable notice to Tenant (which notice shall not be
required  if  Landlord  shall   reasonably   determine  that  the  same  is  not
practicable),  pay such  charges,  together with interest and penalties due with
respect thereto,  and Tenant shall reimburse Landlord therefor,  upon demand, as
Additional Charges.

                                      -31-
<PAGE>

                                   ARTICLE 9

                          INSURANCE AND INDEMNIFICATION

         9.1 General Insurance  Requirements.  Tenant shall, at all times during
the Term and at any other  time  Tenant  shall be in  possession  of the  Leased
Property,  keep each  Property  and all  property  located  therein or  thereon,
insured against the risks and in the amounts as follows and shall maintain, with
respect to each Property, the following insurance:

                  (a) "All-risk" property insurance, including insurance against
         loss or damage by fire,  vandalism and malicious mischief,  earthquake,
         explosion  of  steam  boilers,   pressure   vessels  or  other  similar
         apparatus,  now or  hereafter  installed  in the Hotel  located at such
         Property,  with the usual extended coverage endorsements,  in an amount
         equal to one hundred percent (100%) of the then full  Replacement  Cost
         thereof (as defined in Section 9.2);

                  (b)  Business  interruption  insurance  covering  risk of loss
         during the lesser of the first twelve (12) months of  reconstruction or
         the actual  reconstruction period necessitated by the occurrence of any
         of the hazards  described in subparagraph (a) above, in such amounts as
         may be customary for comparable properties in the area and in an amount
         sufficient to prevent Landlord or Tenant from becoming a co-insurer;

                  (c)  Comprehensive  general  liability  insurance,   including
         bodily injury and property damage in a form reasonably  satisfactory to
         Landlord (and including,  without  limitation,  broad form  contractual
         liability,  independent  contractor's  hazard and completed  operations
         coverage) in an amount not less than One Million  Dollars  ($1,000,000)
         per occurrence, Three Million Dollars ($3,000,000) in the aggregate and
         umbrella  coverage  of all such claims in an amount not less than Fifty
         Million Dollars ($50,000,000);

                  (d) Flood (if such  Property  is  located  in whole or in part
         within an area  identified as an area having  special flood hazards and
         in which flood  insurance  has been made  available  under the National
         Flood  Insurance  Act  of  1968,  as  amended,  or the  Flood  Disaster
         Protection Act of 1973, as amended (or any successor acts thereto)) and
         such  other  hazards  and in  such  amounts  as may  be  customary  for
         comparable properties in the area;

                  (e) Worker's  compensation  insurance  coverage if required by
         applicable law for all persons employed by Tenant on such Property with
         statutory  limits  and  otherwise  with  limits  of and  provisions  in
         accordance with the requirements of applicable local, State and federal
         law, and employer's  liability  insurance as is customarily  carried by
         similar employers; and

                  (f) Such additional  insurance as may be reasonably  required,
         from time to time,  by  Landlord  or any Hotel  Mortgagee  and which is
         customarily carried by comparable lodging properties in the area.

                                      -32-
<PAGE>

         9.2 Replacement Cost.  "Replacement Cost" as used herein shall mean the
actual replacement cost of the property requiring replacement from time to time,
including  an  increased  cost  of  construction  endorsement,  less  exclusions
provided in the  standard  form of fire  insurance  policy.  In the event either
party believes that the then full Replacement Cost has increased or decreased at
any time during the Term, such party,  at its own cost,  shall have the right to
have  such full  Replacement  Cost  redetermined  by an  independent  accredited
appraiser  approved  by the  other,  which  approval  shall not be  unreasonably
withheld or delayed.  The party  desiring to have the full  Replacement  Cost so
redetermined  shall  forthwith,   on  receipt  of  such  determination  by  such
appraiser, give Notice thereof to the other. The determination of such appraiser
shall  be  final  and  binding  on  the  parties  hereto  until  any  subsequent
determination  under this Section 9.2,  and Tenant shall  forthwith  conform the
amount of the insurance carried to the amount so determined by the appraiser.

         9.3 Waiver of  Subrogation.  Landlord and Tenant agree that (insofar as
and to the extent that such agreement may be effective  without  invalidating or
making it impossible to secure  insurance  coverage from  responsible  insurance
companies  doing  business in the  relevant  State) with respect to any property
loss which is covered by  insurance  then being  carried by  Landlord or Tenant,
respectively, the party carrying such insurance and suffering said loss releases
the other of and from any and all claims  with  respect  to such loss;  and they
further agree that their respective  insurance  companies shall have no right of
subrogation against the other on account thereof,  even though extra premium may
result therefrom.  In the event that any extra premium is payable by Tenant as a
result of this  provision,  Landlord  shall not be liable for  reimbursement  to
Tenant for such extra premium.

         9.4 Form  Satisfactory,  Etc. All insurance  policies and  endorsements
required  pursuant to this Article 9 shall be fully paid for,  nonassessable and
be issued by insurance carriers authorized to do business in the relevant State,
having a general  policy  holder's  rating of no less than B++ in Best's  latest
rating guide.  All such policies  described in Sections 9.1(a) through (d) shall
include no deductible in excess of Two Hundred Fifty Thousand Dollars ($250,000)
for any one Leased  Property and no deductible in excess of One Million  Dollars
($1,000,000) in the aggregate for the Collective  Leased  Properties,  and, with
the exception of the insurance described in Section 9.1(e),  shall name Landlord
and any Hotel Mortgagee as additional  insureds,  as their interests may appear.
All loss  adjustments  shall be payable as provided in Article 10.  Tenant shall
cause  all  insurance  premiums  to  be  paid  and  shall  deliver  policies  or
certificates  of insurance to Landlord prior to their  effective date (and, with
respect to any renewal policy,  prior to the expiration of the existing policy).
All such policies shall provide Landlord (and any Hotel Mortgagee if required by
the same)  thirty  (30) days  prior  written  notice of any  material  change or
cancellation  of such  policy.  In the event  Tenant  shall fail to effect  such
insurance as herein  required,  to pay the premiums  therefor or to deliver such
certificates to Landlord or any Hotel Mortgagee at the times required,  Landlord
shall have the right,  but not the  obligation,  subject  to the  provisions  of
Section 12.5, to acquire such  insurance  and pay the premiums  therefor,  which
amounts  shall be payable to  Landlord,  upon  demand,  as  Additional  Charges,
together  with interest  accrued  thereon at the Overdue Rate from the date such
payment is made until (but excluding) the date repaid.

                                      -33-
<PAGE>

         9.5 Blanket Policy.  Notwithstanding anything to the contrary contained
in this Article 9, Tenant's obligation to maintain the insurance herein required
may be brought within the coverage of a so-called  blanket policy or policies of
insurance  carried and  maintained  by Tenant,  provided,  that (a) the coverage
thereby  afforded will not be reduced or diminished  from that which would exist
under a separate policy meeting all other  requirements  of this Agreement,  and
(b) the requirements of this Article 9 are otherwise satisfied. Without limiting
the  foregoing,  the amounts of  insurance  that are  required to be  maintained
pursuant to Section 9.1 shall be on a Hotel by Hotel basis, and shall be subject
to only a per  location  aggregate  limit,  except  for  flood,  earthquake  and
umbrella coverages.

         9.6  No  Separate  Insurance.   Tenant  shall  not  take  out  separate
insurance,  concurrent  in form or  contributing  in the event of loss with that
required by this Article 9, or increase the amount of any existing  insurance by
securing an additional policy or additional policies,  unless all parties having
an  insurable  interest  in the  subject  matter  of such  insurance,  including
Landlord and all Hotel Mortgagees,  are included therein as additional  insureds
and the loss is payable  under such  insurance  in the same manner as losses are
payable  under  this  Agreement.  In the event  Tenant  shall  take out any such
separate  insurance  or  increase  any  of the  amounts  of  the  then  existing
insurance, Tenant shall give Landlord prompt Notice thereof.

         9.7  Indemnification of Landlord.  Notwithstanding the existence of any
insurance  provided  for herein and without  regard to the policy  limits of any
such insurance,  Tenant shall protect, indemnify and hold harmless Landlord for,
from and against  all  liabilities,  obligations,  claims,  damages,  penalties,
causes of action, costs and reasonable expenses (including,  without limitation,
reasonable  attorneys'  fees), to the maximum extent  permitted by law,  imposed
upon or incurred by or asserted against Landlord by reason of: (a) any accident,
injury to or death of persons or loss of or damage to property  occurring  on or
about any  Property  or  adjoining  sidewalks  or  rights of way,  (b) any past,
present or future use, misuse, non-use,  condition,  management,  maintenance or
repair by Tenant or anyone claiming under Tenant, or any prior owner or operator
of  any  Property,  of  any  Property  or  Tenant's  Personal  Property  or  any
litigation,  proceeding or claim by governmental entities or other third parties
to which  Landlord is made a party or  participant  relating to any  Property or
Tenant's Personal Property or such use, misuse, non-use, condition,  management,
maintenance, or repair thereof including,  failure to perform obligations (other
than  Condemnation  proceedings)  to which  Landlord  is made a  party,  (c) any
Impositions that are the obligations of Tenant to pay pursuant to the applicable
provisions  of this  Agreement,  and (d) any  failure  on the part of  Tenant or
anyone  claiming under Tenant to perform or comply with any of the terms of this
Agreement.  Tenant,  at its expense,  shall contest,  resist and defend any such
claim,  action or proceeding  asserted or instituted against Landlord (and shall
not be responsible for any duplicative  attorneys' fees incurred by Landlord) or
may compromise or otherwise  dispose of the same, with Landlord's  prior written
consent  (which  consent may not be  unreasonably  withheld or delayed).  In the
event Landlord shall  unreasonably  withhold or delay its consent,  Tenant shall
not be liable pursuant to this Section 9.7 for any incremental increase in costs
or expenses  resulting  therefrom.  The obligations of Tenant under this Section
9.7 are in  addition  to the  obligations  set  forth in  Section  4.3 and shall
survive the termination of this Agreement.

                                      -34-
<PAGE>

                                   ARTICLE 10

                                    CASUALTY

         10.1 Insurance Proceeds.  Except as provided in the last clause of this
sentence,  all proceeds payable by reason of any loss or damage to any Property,
or any portion  thereof,  and insured under any policy of insurance  required by
Article 9 (other than the proceeds of any business interruption insurance) shall
be paid directly to Landlord (subject to the provisions of Section 10.2) and all
loss  adjustments  with respect to losses  payable to Landlord shall require the
prior written consent of Landlord;  provided, however, that, so long as no Event
of Default shall have occurred and be continuing, all such proceeds less than or
equal to Two Hundred Fifty Thousand Dollars ($250,000), calculated on a Property
by  Property  basis,  shall be paid  directly  to Tenant and such  losses may be
adjusted  without  Landlord's  consent.  If Tenant is required to reconstruct or
repair such  Property as provided  herein,  such  proceeds  shall be paid out by
Landlord from time to time for the reasonable costs of  reconstruction or repair
of such Property  necessitated by such damage or destruction,  subject to and in
accordance with the provisions of Section  10.2.4.  Provided no Default or Event
of Default has  occurred  and is  continuing,  any excess  proceeds of insurance
remaining  after the completion of the restoration  shall be paid to Tenant.  In
the event that the  provisions of Section 10.2.1 are  applicable,  the insurance
proceeds  shall be retained by the party  entitled  thereto  pursuant to Section
10.2.1. All salvage resulting from any risk covered by insurance shall belong to
Landlord, provided any rights to the same have been waived by the insurer.

         10.2 Damage or Destruction.

                  10.2.1 Damage or  Destruction of Leased  Property.  If, during
the Term,  any Property  shall be totally or partially  destroyed  and the Hotel
located  thereon is thereby  rendered  Unsuitable for Its Permitted Use,  either
Landlord or Tenant may, by the giving of Notice thereof to the other,  terminate
this Agreement with respect to such Property,  in which event,  whereupon,  this
Agreement shall terminate with respect to the affected Property,  Landlord shall
be entitled to retain the insurance  proceeds  payable on account of such damage
and Tenant shall  thereafter  have no obligation to pay Rent as to such Property
for periods arising after the effective date of termination.

                  10.2.2 Partial Damage or Destruction. If, during the Term, any
Property  shall be totally or partially  destroyed but the Hotel is not rendered
Unsuitable  for Its Permitted Use,  Tenant shall promptly  restore such Hotel as
provided in Section  10.2.4 unless this Agreement is terminated as to such Hotel
as provided in Section 10.2.3.

                  10.2.3 Insufficient  Insurance Proceeds.  If this Agreement is
not otherwise  terminated pursuant to this Article 10 and the cost of the repair
or restoration of any Property exceeds the amount of insurance proceeds received
by Landlord and Tenant pursuant to Section  9.1(a),  (c), (d) or, if applicable,
(f),  Tenant shall give Landlord  Notice thereof which notice shall set forth in
reasonable detail the nature of such deficiency and whether Tenant shall pay and
assume the amount of such  deficiency  (Tenant  having no  obligation  to do so,
except that, if Tenant shall elect to make such funds available,  the same shall
become an irrevocable  obligation

                                      -35-
<PAGE>

of Tenant  pursuant to this  Agreement).  In the event Tenant shall elect not to
pay and assume the amount of such deficiency, Landlord shall have the right (but
not the  obligation),  exercisable  at  Landlord's  sole  election  by Notice to
Tenant, given within sixty (60) days after Tenant's notice of the deficiency, to
elect to make available for application to the cost of repair or restoration the
amount  of  such  deficiency;   provided,  however,  in  such  event,  upon  any
disbursement by Landlord thereof, the Minimum Rent shall be adjusted as provided
in Section  3.1.1(b).  In the event that neither Landlord nor Tenant shall elect
to make such deficiency available for restoration, either Landlord or Tenant may
terminate this Agreement with respect to the affected  Property by Notice to the
other,  whereupon,  this Agreement  shall terminate with respect to the affected
Property as provided in Section 10.2.1.  It is expressly  understood and agreed,
however,  that,  notwithstanding  anything in this  Agreement  to the  contrary,
Tenant  shall be strictly  liable and solely  responsible  for the amount of any
deductible  and  shall,  upon any  insurable  loss,  pay over the amount of such
deductible to Landlord at the time and in the manner herein provided for payment
of the applicable proceeds to Landlord.

                  10.2.4  Disbursement  of  Proceeds.  In the  event  Tenant  is
required to restore any  Property  pursuant to Section  10.2,  Tenant  shall (or
shall direct the Manager or (following the Patriot  Acquisition  Date) Subtenant
to)  commence  promptly  and  continue  diligently  to  perform  the  repair and
restoration of any Property  (hereinafter  called the "Work"),  so as to restore
such  Property  in  compliance  with all  Legal  Requirements  and so that  such
Property shall be, to the extent practicable,  substantially equivalent in value
and general utility to its general utility and value  immediately  prior to such
damage or destruction.  Subject to the terms hereof,  Landlord shall advance the
insurance  proceeds and any additional  amounts payable by Landlord  pursuant to
Section 10.2.3 to Tenant regularly  during the repair and restoration  period so
as to permit payment for the cost of any such  restoration and repair.  Any such
advances shall be made not more than monthly within ten (10) Business Days after
Tenant submits to Landlord a written requisition and substantiation  therefor on
AIA Forms  G702 and G703 (or on such  other  form or forms as may be  reasonably
acceptable to Landlord).  Landlord may, at its option,  condition advancement of
said  insurance  proceeds  and other  amounts on (i) the absence of any Event of
Default,  (ii)  its  approval  of  plans  and  specifications  of  an  architect
satisfactory to Landlord  (which  approval shall not be  unreasonably  withheld,
delayed or conditioned),  (iii) general contractors' estimates, (iv) architect's
certificates,   (v)  unconditional  lien  waivers  of  general  contractors,  if
available,  (vi) evidence of approval by all governmental  authorities and other
regulatory  bodies whose approval is required and (vii) such other  certificates
as Landlord may, from time to time, reasonably require.

         Landlord's obligation to disburse insurance proceeds under this Article
10 during the last two (2) years of the Term shall be subject to the  release of
such  proceeds by any Hotel  Mortgagee  to Landlord;  otherwise  each such Hotel
Mortgagee  shall be obligated to make such funds available for Landlord's use in
accordance  with the terms of this  Agreement.  If any Hotel  Mortgagee shall be
unwilling to disburse  insurance  proceeds in accordance  with the terms of this
Agreement,  Tenant  shall  have the right,  by the  giving of Notice  thereof to
Landlord   within  ten  (10)   Business   Days  after  Tenant   learns  of  such
unwillingness,  to treat such Property as rendered  Unsuitable for its Permitted
Use  for  purposes  of  Section  10.2.1.  Tenant's  obligation  to  restore  the
applicable  Property pursuant to this Article 10 shall be subject to the release
of

                                      -36-
<PAGE>

available  insurance  proceeds by the applicable  Hotel Mortgagee to Landlord or
directly to Tenant.

         Tenant's  obligation to restore the affected  Property pursuant to this
Article 10 shall be subject to the release of  available  insurance  proceeds by
the  applicable  Hotel  Mortgagee  to Landlord or directly to Tenant and, in the
event such proceeds are insufficient,  Landlord electing to make such deficiency
available therefor (and disbursement of such deficiency).

         10.3 Damage Near End of Term. Notwithstanding any provisions of Section
10.1 or 10.2 to the contrary, if damage to or destruction of any Property occurs
during the last twelve (12) months of the Term (including any exercised Extended
Terms) and if such damage or  destruction  cannot  reasonably  be expected to be
fully  repaired and  restored  prior to the date that is six (6) months prior to
the end of such Term,  the  provisions of Section  10.2.1 shall apply as if such
Property  had  been  totally  or  partially  destroyed  and the  Hotel  rendered
Unsuitable for its Permitted Use.

         10.4 Tenant's Property. All insurance proceeds payable by reason of any
loss of or damage to any of Tenant's  Personal  Property shall be paid to Tenant
and, to the extent necessary to repair or replace Tenant's  Personal Property in
accordance  with Section  10.5,  Tenant shall hold such proceeds in trust to pay
the cost of repairing or replacing damaged Tenant's Personal Property.

         10.5 Restoration of Tenant's Property. If Tenant is required to restore
any  Property  as  hereinabove  provided,  Tenant  shall  either (a) restore all
alterations and improvements made by Tenant and Tenant's Personal  Property,  or
(b) replace such  alterations and improvements  and Tenant's  Personal  Property
with  improvements  or items of the same or better  quality  and  utility in the
operation of such Property.

         10.6 No Abatement of Rent.  Unless  terminated by either party pursuant
to this Article 10 (and then only with respect to the affected  Property),  this
Agreement shall remain in full force and effect and Tenant's  obligation to make
all  payments of Rent and to pay all other  charges as and when  required  under
this Agreement shall remain unabated during the Term  notwithstanding any damage
involving  any  Property  (provided  that  Landlord  shall  credit  against such
payments any amounts paid to Landlord as a consequence  of such damage under any
business interruption insurance obtained by Tenant hereunder). The provisions of
this Article 10 shall be considered an express agreement  governing any cause of
damage or destruction  to any Property and, to the maximum  extent  permitted by
law, no local or State statute,  laws, rules,  regulation or ordinance in effect
during the Term which provide for such a contingency  shall have any application
in such case.

         10.7 Waiver.  Tenant hereby waives any statutory  rights of termination
which may arise by reason of any damage or  destruction  of any  Property or any
portion thereof.

                                      -37-
<PAGE>

                                   ARTICLE 11

                                  CONDEMNATION

         11.1 Total  Condemnation,  Etc. If either (i) the whole of any Property
shall be taken by  Condemnation or (ii) a Condemnation of less than the whole of
any  Property  renders any  Property  Unsuitable  for Its  Permitted  Use,  this
Agreement  shall  terminate with respect to such  Property,  Tenant and Landlord
shall seek the Award for their interests in the applicable  Property as provided
in Section 11.5 and, as the effective  date of taking,  the Minimum Rent payable
hereunder shall be reduced by such Property's allocable share thereof.

         11.2 Partial Condemnation.  In the event of a Condemnation of less than
the whole of any  Property  such that such  Property is still  suitable  for its
Permitted Use,  Tenant shall,  to the extent of the Award  actually  received by
Tenant and any additional amounts disbursed by Landlord as hereinafter provided,
commence promptly and continue  diligently to restore the untaken portion of the
Leased Improvements so that such Leased Improvements shall constitute a complete
architectural unit of the same general character and condition (as nearly as may
be  possible  under  the  circumstances)  as the  Leased  Improvements  existing
immediately  prior to such  Condemnation,  in full  compliance  with  all  Legal
Requirements, subject to the provisions of this Section 11.2. If the cost of the
repair or restoration of such Property  exceeds the amount of the Award,  Tenant
shall give  Landlord  Notice  thereof which notice shall set forth in reasonable
detail the nature of such deficiency and whether Tenant shall pay and assume the
amount of such deficiency  (Tenant having no obligation to do so, except that if
Tenant  shall  elect to make such  funds  available,  the same  shall  become an
irrevocable  obligation  of Tenant  pursuant  to this  Agreement).  In the event
Tenant shall elect not to pay and assume the amount of such deficiency, Landlord
shall have the right (but not the  obligation),  exercisable at Landlord's  sole
election by Notice to Tenant given within sixty (60) days after Tenant's  Notice
of the  deficiency,  to elect to make  available for  application to the cost of
repair or restoration the amount of such deficiency;  provided, however, in such
event,  upon any  disbursement  by Landlord  thereof,  the Minimum Rent shall be
adjusted as provided in Section 3.1.1(b). In the event that neither Landlord nor
Tenant shall elect to make such  deficiency  available for  restoration,  either
Landlord or Tenant may  terminate  this  Agreement  with respect to the affected
Property,  whereupon,  the entire Award shall be retained by Landlord and Tenant
shall  thereafter  have no obligation to pay Rent for periods  arising after the
effective date of termination.

         Subject to the terms hereof,  Landlord shall  contribute to the cost of
restoration  that  part of the  Award  necessary  to  complete  such  repair  or
restoration,  together with  severance  and other damages  awarded for the taken
Leased  Improvements  and any  deficiency  Landlord has agreed to  disburse,  to
Tenant regularly  during the restoration  period so as to permit payment for the
cost of such repair or  restoration.  Landlord  may,  at its  option,  condition
advancement  of such Award and other  amounts on (i) the absence of any Event of
Default,  (ii)  its  approval  of  plans  and  specifications  of  an  architect
satisfactory to Landlord  (which approval shall not be unreasonably  withheld or
delayed), (iii) general contractors' estimates,  (iv) architect's  certificates,
(v)  unconditional  lien  waivers of general  contractors,  if  available,  (vi)
evidence of approval by all governmental authorities and other regulatory bodies
whose  approval is required and (vii) such other  certificates  as Landlord may,
from time to time, reasonably require.  Landlord's obligation

                                      -38-
<PAGE>

under this Section 11.2 to disburse  the Award and such other  amounts  shall be
subject to (x) the  collection  thereof by Landlord  and (y) during the last two
(2)  years of the  Term,  the  release  of such  Award by the  applicable  Hotel
Mortgagee;  otherwise each such Hotel  Mortgagee shall be obligated to make such
funds  available  for  Landlord's  use in  accordance  with  the  terms  of this
Agreement.  If any Hotel Mortgagee shall be unwilling to disburse Award proceeds
in accordance with the terms of this Agreement,  by the giving of Notice thereof
to  Landlord  within  ten  (10)  Business  Days  after  Tenant  learns  of  such
unwillingness,  to treat such Property as rendered  Unsuitable for its Permitted
Use for  purposes of Section  11.1.  Tenant's  obligation  to restore the Leased
Property  shall be subject to the release of the Award by the  applicable  Hotel
Mortgagee to Landlord or directly to Tenant.

         11.3 Abatement of Rent.  Unless  terminated by either party pursuant to
this  Article 11 (and then only with  respect to the  affected  Property),  this
Agreement shall remain in full force and effect and Tenant's  obligation to make
all  payments of Rent and to pay all other  charges as and when  required  under
this  Agreement  shall  remain  unabated  during  the Term  notwithstanding  any
Condemnation  involving any Property. The provisions of this Article 11 shall be
considered  an  express  agreement  governing  any  Condemnation  involving  any
Property and, to the maximum extent permitted by law, no local or State statute,
law, rule,  regulation or ordinance in effect during the Term which provides for
such a contingency shall have any application in such case.

         11.4 Temporary Condemnation. In the event of any temporary Condemnation
of any Property or Tenant's interest  therein,  this Agreement shall continue in
full force and effect and Tenant shall continue to pay, in the manner and on the
terms herein  specified,  the full amount of the Rent.  Tenant shall continue to
perform and observe all of the other terms and  conditions of this  Agreement on
the part of Tenant to be performed  and  observed.  Provided no Event of Default
has occurred  and is  continuing,  the entire  amount of any Award made for such
temporary  Condemnation  allocable to the Term,  whether paid by way of damages,
rent or  otherwise,  shall be paid to Tenant.  Tenant  shall,  promptly upon the
termination of any such period of temporary  Condemnation,  at its sole cost and
expense,  restore such Property to the condition that existed  immediately prior
to such  Condemnation,  in full compliance with all Legal  Requirements,  unless
such period of temporary  Condemnation shall extend beyond the expiration of the
Term, in which event Tenant shall not be required to make such restoration.  For
purposes of this Section 11.4, a Condemnation shall be deemed to be temporary if
the period of such  Condemnation is not expected to, and does not, exceed twelve
(12) months.

         11.5  Allocation  of Award.  Except as provided in Section 11.4 and the
second  sentence  of this  Section  11.5,  the total  Award  shall be solely the
property  of and  payable  to  Landlord.  Any  portion of the Award made for the
taking of Tenant's leasehold  interest in any Property,  loss of business during
the remainder of the Term, the taking of Tenant's Personal Property, or Tenant's
removal and  relocation  expenses  shall be the sole  property of and payable to
Tenant  (subject  to the  provisions  of  Section  11.2).  In  any  Condemnation
proceedings,  Landlord  and Tenant  shall each seek its own Award in  conformity
herewith, at its own expense.

                                      -39-
<PAGE>

                                   ARTICLE 12

                              DEFAULTS AND REMEDIES

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

                  (a) should  Tenant fail to make any payment of the Rent or any
         other sum (including,  but not limited to, funding of the FF&E Reserve)
         payable hereunder when due; or

                  (b) should  Tenant fail to maintain  the  insurance  coverages
         required  under Article 9 and such failure shall  continue for ten (10)
         Business  Days after  Notice  thereof  (except  that no Notice shall be
         required if any such insurance coverages shall have lapsed); or

                  (c) should Tenant default in the due observance or performance
         of any of the terms,  covenants or  agreements  contained  herein to be
         performed or observed by it (other than as specified in clauses (a) and
         (b) above) and such default shall continue for a period of fifteen (15)
         Business Days after Notice  thereof from Landlord to Tenant;  provided,
         however,  that if such  default  is  susceptible  of cure but such cure
         cannot be  accomplished  with due diligence  within such period of time
         and if, in addition, Tenant commences to cure or cause to be cured such
         default  within  fifteen (15) Business  Days after Notice  thereof from
         Landlord and thereafter  prosecutes the curing of such default with all
         due diligence,  such period of time shall be extended to such period of
         time (not to exceed an additional  one hundred eighty (180) days in the
         aggregate)  as may be  necessary  to cure  such  default  with  all due
         diligence; or

                  (d)  should an event of  default  by Tenant or any  Affiliated
         Person as to Tenant occur and be  continuing  beyond the  expiration of
         any applicable cure period under any of the Incidental Documents or the
         Management Agreement; or

                  (e) should any  material  representation  or warranty  made by
         Tenant or any  Affiliated  Person as to Tenant  under or in  connection
         with this  Agreement  or any  Incidental  Document or in any  document,
         certificate or agreement  delivered in connection herewith or therewith
         prove to have been false or misleading  in any material  respect on the
         date when made or deemed made and the same shall  continue for five (5)
         Business Days after Notice thereof from Landlord; or

                  (f) should  Tenant  generally  not be paying its debts as they
         become due or should Tenant make a general  assignment  for the benefit
         of creditors; or

                  (g) should any  petition be filed by or against  Tenant  under
         the  Federal  bankruptcy  laws,  or  should  any  other  proceeding  be
         instituted by or against Tenant seeking to adjudicate Tenant a bankrupt
         or  insolvent,  or seeking  liquidation,  reorganization,  arrangement,
         adjustment or  composition  of Tenant's debts under any law relating to
         bankruptcy,  insolvency  or  reorganization  or relief of  debtors,  or
         seeking  the

                                      -40-
<PAGE>

         entry of an order for relief or the appointment of a receiver, trustee,
         custodian or other similar  official for Tenant or for any  substantial
         part of the  property of Tenant and such  proceeding  is not  dismissed
         within  ninety (90) days after  institution  thereof,  or should Tenant
         take any action to  authorize  or effect any of the  actions  set forth
         above in this paragraph; or

                  (h) should  Tenant cause or institute any  proceeding  for its
         dissolution or termination; or

                  (i) should the estate or interest of Tenant in any Property or
         any part thereof be levied upon or attached in any  proceeding  and the
         same  shall not be vacated  or  discharged  within the later of (x) one
         hundred and twenty (120) days after  commencement  thereof,  unless the
         amount in dispute is less than  $250,000,  in which case  Tenant  shall
         give  notice to  Landlord  of the  dispute but Tenant may defend in any
         suitable  way,  and (y)  thirty  (30) days  after  receipt by Tenant of
         Notice thereof from Landlord  (unless  Tenant shall be contesting  such
         lien or attachment in good faith in accordance with Article 8); or

                  (j) should  any of Tenant or  Manager  cease to be a direct or
         indirect Subsidiary of Wyndham (provided,  however that it shall not be
         an Event of  Default  if  Manager  ceases  to be a direct  or  indirect
         Subsidiary  of Wyndham as a  consequence  of a  transaction  in which a
         Person, including, but not limited to, a Lending Institution,  acquires
         all or  substantially  all  of the  management  contracts  of  Manager,
         provided, that the Hotels will retain the right to use the "Summerfield
         Suites" name); or

                  (k)  should  any  provision  of  the  Special   Organizational
         Document Provisions or Separateness  Agreement be violated or modified,
         and such violation or modification continues for ten (10) Business Days
         after Notice thereof;

then,  and in any such  event,  Landlord,  in  addition  to all  other  remedies
available to it, may terminate  this Agreement with respect to any or all of the
Leased  Property by giving Notice  thereof to Tenant and upon the  expiration of
the time, if any,  fixed in such Notice,  this  Agreement  shall  terminate with
respect to all or the designated  portion of the Leased  Property and all rights
of Tenant under this Agreement with respect thereto shall cease.  Landlord shall
have and may exercise all rights and remedies  available at law and in equity to
Landlord as a result of Tenant's breach of this Agreement.

         Upon the  occurrence of an Event of Default,  Landlord may, in addition
to any other remedies  provided  herein,  enter upon the Leased  Property or any
portion  thereof  and  take  possession  of any  and  all of  Tenant's  Personal
Property, if any, and the Records,  without liability for trespass or conversion
(Tenant  hereby  waiving any right to notice or hearing  prior to such taking of
possession  by  Landlord)  and sell the same at public or  private  sale,  after
giving Tenant  reasonable  Notice of the time and place of any public or private
sale,  at which sale  Landlord or its assigns may purchase all or any portion of
Tenant's Personal Property,  if any, unless otherwise  prohibited by law. Unless
otherwise  provided by law and without  intending to exclude any other manner of
giving Tenant reasonable  notice,  the requirement of reasonable Notice shall be
met if such Notice is given at least ten (10) days before the date of sale.  The
proceeds  from

                                      -41-
<PAGE>

any such  disposition,  less all expenses incurred in connection with the taking
of  possession,  holding and  selling of such  property  (including,  reasonable
attorneys' fees) shall be applied as a credit against the indebtedness  which is
secured by the security  interest  granted in Section 7.2. Any surplus  shall be
paid to  Tenant  or as  otherwise  required  by law  and  Tenant  shall  pay any
deficiency to Landlord, as Additional Charges, upon demand.

         12.2  Remedies.  None of (a) the  termination  of this  Agreement  with
respect to any Property or all of the Leased Property  pursuant to Section 12.1,
(b) the  repossession  of the Leased  Property or any portion  thereof,  (c) the
failure of Landlord to re-let the Leased  Property or any portion  thereof,  nor
(d) the reletting of all or any of portion of the Leased Property, shall relieve
Tenant of its liability and  obligations  hereunder,  all of which shall survive
any such  termination,  repossession  or  re-letting.  In the  event of any such
termination,  Tenant  shall  forthwith  pay to Landlord all Rent due and payable
with  respect to the Leased  Property  through  and  including  the date of such
termination.  Thereafter, Tenant, until the end of what would have been the Term
of this  Agreement  in the absence of such  termination,  and whether or not the
Leased Property or any portion  thereof shall have been re-let,  shall be liable
to Landlord  for, and shall pay to Landlord,  as current  damages,  the Rent and
other charges which would be payable hereunder for the remainder of the Term had
such termination not occurred,  less the net proceeds, if any, of any re-letting
of the Leased  Property,  after deducting all reasonable  expenses in connection
with such reletting,  including,  without  limitation,  all repossession  costs,
brokerage commissions, legal expenses, attorneys' fees, advertising, expenses of
employees,  alteration  costs and expenses of  preparation  for such  reletting.
Tenant shall pay such current  damages to Landlord  monthly on the days on which
the Minimum Rent would have been payable  hereunder  if this  Agreement  had not
been so terminated with respect to such of the Leased Property.

         At any time after such termination,  whether or not Landlord shall have
collected any such current damages,  as liquidated final damages beyond the date
of such  termination,  at Landlord's  election,  Tenant shall pay to Landlord an
amount  equal to the present  value  (discounted  at the  Interest  Rate) of the
excess,  if any, of the Rent and other charges which would be payable  hereunder
from the date of such  termination  (assuming  that,  for the  purposes  of this
paragraph,  annual  payments by Tenant on account of Impositions  and Additional
Rent would be the same as payments required for the immediately preceding twelve
calendar  months,  or if less than twelve calendar months have expired since the
Commencement  Date, the payments required for such lesser period projected to an
annual  amount) for what would be the then  unexpired  term of this Agreement if
the same  remained in effect,  over the fair market  rental for the same period.
Nothing contained in this Agreement shall, however, limit or prejudice the right
of Landlord to prove and obtain in  proceedings  for bankruptcy or insolvency an
amount  equal to the maximum  allowed by any statute or rule of law in effect at
the time when,  and governing the  proceedings  in which,  the damages are to be
proved,  whether or not the amount be greater  than,  equal to, or less than the
amount of the loss or damages referred to above.

         In case of any Event of Default, re-entry, expiration and dispossession
by summary proceedings or otherwise,  Landlord may (a) relet the Leased Property
or any part or parts thereof, either in the name of Landlord or otherwise, for a
term or terms which may at Landlord's  option,  be equal to, less than or exceed
the period which would  otherwise have  constituted  the balance of the Term and
may  grant  concessions  or free  rent to the  extent  that

                                      -42-
<PAGE>

Landlord  considers  advisable and necessary to relet the same, and (b) may make
such reasonable  alterations,  repairs and decorations in the Leased Property or
any portion thereof as Landlord, in its sole and absolute discretion,  considers
advisable and necessary  for the purpose of reletting the Leased  Property;  and
the making of such alterations,  repairs and decorations shall not operate or be
construed to release  Tenant from liability  hereunder as aforesaid.  Subject to
the last sentence of this paragraph, Landlord shall in no event be liable in any
way  whatsoever  for any  failure  to relet  all or any  portion  of the  Leased
Property,  or, in the event that the Leased  Property  is relet,  for failure to
collect the rent under such reletting.  To the maximum extent  permitted by law,
Tenant hereby  expressly  waives any and all rights of redemption  granted under
any present or future laws in the event of Tenant being evicted or dispossessed,
or in the event of Landlord  obtaining  possession  of the Leased  Property,  by
reason of the  occurrence  and  continuation  of an Event of Default  hereunder.
Landlord covenants and agrees, in the event of any termination of this Agreement
as a result of an Event of Default,  to use  reasonable  efforts to mitigate its
damages.

         12.3  Tenant's  Waiver.  IF THIS  AGREEMENT IS  TERMINATED  PURSUANT TO
SECTION 12.1 OR 12.2,  TENANT WAIVES,  TO THE EXTENT PERMITTED BY LAW, ANY RIGHT
TO A TRIAL BY JURY IN THE EVENT OF SUMMARY  PROCEEDINGS  TO ENFORCE THE REMEDIES
SET FORTH IN THIS  ARTICLE 12, AND THE BENEFIT OF ANY LAWS NOW OR  HEREAFTER  IN
FORCE EXEMPTING PROPERTY FROM LIABILITY FOR RENT OR FOR DEBT.

         12.4 Application of Funds. Any payments  received by Landlord under any
of the provisions of this  Agreement  during the existence or continuance of any
Event of Default (and any payment made to Landlord rather than Tenant due to the
existence of any Event of Default) shall be applied to Tenant's current and past
due obligations  under this Agreement in such order as Landlord may determine or
as may be prescribed by the laws of the relevant State.

         12.5 Landlord's Right to Cure Tenant's Default.  If an Event of Default
shall have occurred and be continuing,  Landlord,  after Notice to Tenant (which
Notice shall not be required if Landlord shall  reasonably  determine  immediate
action is necessary to protect person or property), without waiving or releasing
any obligation of Tenant and without  waiving or releasing any Event of Default,
may (but shall not be obligated to), at any time  thereafter,  make such payment
or perform  such act for the account  and at the expense of Tenant,  and may, to
the  maximum  extent  permitted  by law,  enter upon the Leased  Property or any
portion  thereof  for such  purpose  and take all such  action  thereon  as,  in
Landlord's  sole  and  absolute  discretion,  may be  necessary  or  appropriate
therefor.  No such entry shall be deemed an eviction of Tenant.  All  reasonable
costs and expenses (including,  without limitation,  reasonable attorneys' fees)
incurred by Landlord in connection therewith, together with interest thereon (to
the extent  permitted  by law) at the  Overdue  Rate from the date such sums are
paid by Landlord until repaid, shall be paid by Tenant to Landlord, on demand.

                                      -43-
<PAGE>

                                   ARTICLE 13

                                  HOLDING OVER

         Any holding over by Tenant after the  expiration or sooner  termination
of this  Agreement  shall be treated as a daily  tenancy at sufferance at a rate
equal to two (2)  times  the  Minimum  Rent and other  charges  herein  provided
(prorated  on a daily  basis).  Tenant  shall also pay to  Landlord  all damages
(direct or indirect)  sustained by reason of any such holding  over.  Otherwise,
such  holding  over  shall be on the  terms  and  conditions  set  forth in this
Agreement,  to the extent applicable.  Nothing contained herein shall constitute
the consent, express or implied, of Landlord to the holding over of Tenant after
the expiration or earlier termination of this Agreement.

                                   ARTICLE 14

                 LANDLORD'S NOTICE OBLIGATIONS; LANDLORD DEFAULT

         14.1 Landlord Notice  Obligation.  Landlord shall give prompt Notice to
Tenant of any matters  affecting the Leased Property of which Landlord  receives
written notice or actual  knowledge  and, to the extent Tenant  otherwise has no
notice or actual knowledge thereof, Landlord shall be liable for any liabilities
arising from the failure to deliver such Notice to Tenant.

         14.2 Landlord's  Default.  If Landlord shall default in the performance
or observance of any of its covenants or obligations set forth in this Agreement
or any obligation of Landlord,  if any, under any agreement affecting the Leased
Property,  the performance of which is not Tenant's  obligation pursuant to this
Agreement,  and any such  default  shall  continue for a period of ten (10) days
after  Notice  thereof  with  respect to monetary  defaults and thirty (30) days
after  Notice  thereof  with  respect to  non-monetary  defaults  from Tenant to
Landlord and any applicable Hotel Mortgagee, or such additional period as may be
reasonably  required to correct the same, Tenant may declare the occurrence of a
"Landlord  Default" by a second Notice to Landlord and to such Hotel  Mortgagee.
Thereafter, Tenant may forthwith cure the same and, subject to the provisions of
the  following  paragraph,  invoice  Landlord for costs and expenses  (including
reasonable  attorneys'  fees and court  costs)  incurred by Tenant in curing the
same,  together with interest  thereon (to the extent permitted by law) from the
date Landlord receives Tenant's invoice,  at the Overdue Rate. Tenant shall have
no right to terminate this  Agreement for any default by Landlord  hereunder and
no right,  for any such default,  to offset or counterclaim  against any Rent or
other charges due hereunder.

         If Landlord  shall in good faith dispute the occurrence of any Landlord
Default and Landlord, before the expiration of the applicable cure period, shall
give Notice thereof to Tenant,  setting forth, in reasonable  detail,  the basis
therefor,  no Landlord  Default  shall be deemed to have  occurred  and Landlord
shall have no obligation with respect thereto until final adverse  determination
thereof; provided, however, that in the event of any such adverse determination,
Landlord  shall pay to Tenant  interest on any  disputed  funds at the  Interest
Rate,  from the date demand for such funds was made by Tenant  until the date of
final adverse determination and,

                                      -44-
<PAGE>

thereafter,  at the Overdue Rate until paid. If Tenant and Landlord  shall fail,
in good faith, to resolve any such dispute within ten (10) days after Landlord's
Notice of  dispute,  either may submit the matter for  resolution  to a court of
competent jurisdiction.

                                   ARTICLE 15

                                 PURCHASE RIGHTS

         15.1 First  Refusal to Purchase.  Provided,  (a) no Default or Event of
Default shall have occurred and be continuing,  (b) this  Agreement  shall be of
full force and effect, and (c) other than as expressly  permitted or required by
Section 16 or consented to by Landlord  (which  consent may be given or withheld
by  Landlord  in its sole  discretion),  Tenant  shall  not have  assigned  this
Agreement or subleased all or any portion of the Leased  Property,  Tenant shall
have a first refusal option to purchase any Property upon the same price,  terms
and conditions as Landlord shall propose to sell such Property, or upon the same
price,  terms and  conditions  of any offer from a third party to purchase  such
Property which Landlord  intends to accept (or has accepted  subject to Tenant's
right of  first  refusal  herein  provided);  provided,  however,  that,  if the
proposed  purchase price is for other than cash,  Tenant shall have the right to
purchase such Property on cash equivalent  terms  determined by the agreement of
the  parties  or,  if they  cannot  agree  within  ten (10)  Business  Days,  by
arbitration in accordance with the rules of the American Arbitration Association
then in effect.  If, during the Term,  Landlord  reaches such  agreement  with a
third party or proposes to offer any Property for sale,  Landlord shall promptly
give written notice to Tenant of the purchase price and all other material terms
and  conditions  of such  agreement or proposed sale and Tenant shall have sixty
(60) days  thereafter to exercise  Tenant's option to purchase by written notice
to Landlord  thereof.  Failure of Tenant to respond  within  such 60-day  period
shall be deemed a waiver of Tenant's right to purchase the Property with respect
to such offer pursuant to this Section 15.1. If Tenant exercises its option, the
sale to  Tenant  shall be  consummated  upon the same  terms and  conditions  as
contained in such agreement or Landlord's notice of the proposed sale. If Tenant
shall not  exercise  its option to  purchase  within the time  period and in the
manner  above  provided,  Landlord  shall be free to sell such  Property to such
third party at the price and upon terms  substantially  similar to those offered
to Tenant.  The rights granted to Tenant pursuant to this Section 15.1 shall not
apply to any financing or sale-leaseback transaction or any transaction pursuant
to which  Landlord is merged or  consolidated  with  another  Person;  provided,
however,  that any Person who shall  acquire the Leased  Premises  shall acquire
them subject to, and shall be bound by, the provisions of this Section 15.1. The
provisions  of this  Section  15.1 shall  inure to the benefit of Tenant and any
permitted successors and assigns of Tenant pursuant to this Agreement.

         15.2  Purchase  by  Tenant.  In  the  event  that,  in  the  reasonable
determination of Tenant, it shall no longer be economically practical to operate
any Property as an "all suites"  hotel,  and Tenant and Landlord have not agreed
on an alternative  use for such Property or on the  substitution  of one or more
other properties for such Property as provided in Section  4.1.1(b),  Tenant may
permanently cease operation of such Property  (notwithstanding Section 4.1.1(a))
and  concurrently  give  Landlord  irrevocable  written  Notice (i) of  Tenant's
election  to  terminate  this  Agreement  with  respect  to  such  Property  and
simultaneously  purchase such Property from Landlord for a purchase  price equal
to one hundred  twenty five percent  (125%) of the Adjusted

                                      -45-
<PAGE>

Purchase Price for such Property (the "Buyout  Price") and (ii)  certifying that
Tenant has permanently  ceased operating such Property as an "all suites" hotel.
Such purchase shall occur on the Business Day  designated in such Notice,  which
shall be a date not later than  ninety  (90) days after the date of such  Notice
(the "Purchase  Date").  Landlord shall,  upon receipt from Tenant of the Buyout
Price for such Property, together with full payment of any unpaid Rent and other
charges  due and  payable  with  respect to any  period  ending on or before the
Purchase Date, and so long as no Default or Event of Default shall have occurred
and be continuing at such time,  deliver to Tenant an appropriate deed and other
instruments,  conveying the entire  interest of Landlord in and to such Property
to  Tenant,  free  and  clear of all  encumbrances  created  through  the act or
omission of Landlord, and such other documents as are customarily and reasonably
required of sellers by title  companies  or  purchasers.  This  Agreement  shall
thereupon terminate as to such Property.  The Buyout Price and all other amounts
to be paid  to  Landlord  on the  Purchase  Date  shall  be paid in  immediately
available  funds as directed by Landlord.  Other than as  specifically  provided
above, such Property shall be conveyed to Tenant on an "as is" basis, and in its
then physical  condition.  The closing of any such sale shall be contingent upon
and  subject to  Tenant's  obtaining  any  required  governmental  consents  and
approvals for such transfer,  provided that Landlord shall reasonably  cooperate
with Tenant in  obtaining  such  consents  and  approvals.  All expenses of such
conveyance,  including,  without  limitation,  all  transfer  and  sales  taxes,
documentary  fees,  the fees and expenses of counsel to Landlord and the cost of
any title examination or title insurance, shall be for the account of Tenant.

         15.3 Landlord's Option to Purchase Tenant's Personal Property; Transfer
of  Licenses.  Landlord  shall have the  option to  purchase  Tenant's  Personal
Property,  at the  expiration or termination  of this  Agreement,  for an amount
equal  to the  then  net  market  value  thereof  (current  replacement  cost as
determined  by  appraisal  less  accumulated   depreciation  on  Tenant's  books
pertaining thereto), subject to, and with appropriate price adjustments for, all
equipment  leases,  conditional sale contracts,  UCC-1 financing  statements and
other  encumbrances  to  which  such  Personal  Property  is  subject.  Upon the
expiration or sooner  termination of this  Agreement,  Tenant shall use its best
efforts to transfer and assign to Landlord or its designee,  or assist  Landlord
or its designee in obtaining, any contracts, licenses, and certificates required
for the then operation of the Leased Property.

                                   ARTICLE 16

                            SUBLETTING AND ASSIGNMENT

         16.1  Subletting  and  Assignment.  Except as provided in Section 16.3,
Tenant shall not, without Landlord's prior written consent (which consent may be
given or withheld in  Landlord's  sole and  absolute,  good faith,  discretion),
assign,  mortgage,  pledge,  hypothecate,  encumber or otherwise  transfer  this
Agreement  or sublease  (which  term shall be deemed to include the  granting of
concessions,  licenses and the like),  all or any part of the Leased Property or
suffer or permit this  Agreement or the leasehold  estate  created hereby or any
other  rights  arising  under  this  Agreement  to  be  assigned,   transferred,
mortgaged,  pledged,  hypothecated or encumbered,  in whole or in part,  whether
voluntarily,  involuntarily  or by  operation  of  law,  or  permit  the  use or
operation of the Leased Property by anyone other than Tenant and the Manager, or
the Leased  Property to be offered or advertised  for  assignment or subletting.
For  purposes  of this  Section

                                      -46-
<PAGE>

16.1, an assignment and/or transfer of this Agreement shall be deemed to include
any direct or indirect transfer of any interest in Tenant such that Tenant shall
cease to be a direct or  indirect  Subsidiary  of  Wyndham,  or any  transaction
pursuant  to which  Tenant is  merged or  consolidated  with  another  Entity or
pursuant to which all or substantially all of Tenant's assets are transferred to
any other Entity, as if such change in control or transaction were an assignment
of this Agreement.

         If this Agreement is assigned or otherwise transferred or if the Leased
Property  or any part  thereof  are sublet (or  occupied  by anybody  other than
Tenant, the Manager and their respective employees or hotel guests) Landlord may
collect the rents from such assignee, subtenant or occupant, as the case may be,
and apply the net amount  collected  to the Rent  herein  reserved,  but no such
collection  shall be  deemed a waiver of the  provisions  set forth in the first
paragraph of this Section 16.1,  the  acceptance  by Landlord of such  assignee,
subtenant or occupant,  as the case may be, as a tenant,  or a release of Tenant
from  the  future  performance  by  Tenant  of  its  covenants,   agreements  or
obligations contained in this Agreement.

         No  subletting  or  assignment  shall in any way impair the  continuing
primary  liability of Tenant  hereunder  (unless  Landlord and Tenant  expressly
otherwise agree that Tenant shall be released from all  obligations  hereunder),
and no consent to any subletting or assignment in a particular instance shall be
deemed to be a waiver of the  prohibition  set forth in this  Section  16.1.  No
assignment,  subletting  or  occupancy  shall  affect  any  Permitted  Use.  Any
subletting,  assignment  or other  transfer  of  Tenant's  interest  under  this
Agreement in  contravention of this Section 16.1 shall be voidable at Landlord's
option.

         16.2 Required Sublease  Provisions.  Any sublease of all or any portion
of the Leased  Property  entered into on or after the date hereof shall  provide
(a) that it is subject and  subordinate  to this Agreement and to the matters to
which this  Agreement  is or shall be subject  or  subordinate;  (b) that in the
event of termination of this Agreement or reentry or  dispossession of Tenant by
Landlord  under this  Agreement,  Landlord  may, at its option,  terminate  such
sublease  or take  over all of the  right,  title and  interest  of  Tenant,  as
sublessor under such sublease,  and such subtenant shall, at Landlord's  option,
attorn to Landlord  pursuant to the then executory  provisions of such sublease,
except that neither Landlord nor any Hotel Mortgagee, as holder of a mortgage or
as Landlord under this Agreement,  if such mortgagee  succeeds to that position,
shall (i) be liable for any act or omission of Tenant under such sublease,  (ii)
be subject to any  credit,  counterclaim,  offset or defense  which  theretofore
accrued  to such  subtenant  against  Tenant,  (iii) be  bound  by any  previous
modification  of such sublease not consented to in writing by Landlord or by any
previous  prepayment  of more than one (1)  month's  Rent,  (iv) be bound by any
covenant of Tenant to  undertake  or  complete  any  construction  of the Leased
Property or any  portion  thereof,  (v) be required to account for any  security
deposit of the subtenant other than any security deposit  actually  delivered to
Landlord by Tenant,  (vi) be bound by any obligation to make any payment to such
subtenant or grant any credits,  except for services,  repairs,  maintenance and
restoration provided for under the sublease that are performed after the date of
such  attornment,  (vii) be  responsible  for any monies  owing by Tenant to the
credit of such subtenant,  or (viii) be required to remove any Person  occupying
any portion of the Leased  Property;  and (c), in the event that such  subtenant
receives a written Notice from Landlord or any Hotel  Mortgagee  stating that an
Event of Default has occurred and is continuing, such subtenant

                                      -47-
<PAGE>

shall  thereafter be obligated to pay all rentals  accruing  under such sublease
directly  to the party  giving  such  Notice or as such  party may  direct.  All
rentals received from such subtenant by Landlord or the Hotel Mortgagee,  as the
case may be,  shall be credited  against the amounts  owing by Tenant under this
Agreement and such sublease shall provide that the subtenant  thereunder  shall,
at the request of Landlord,  execute a suitable  instrument in  confirmation  of
such  agreement to attorn.  An original  counterpart  of each such  sublease and
assignment  and  assumption,  duly  executed  by Tenant  and such  subtenant  or
assignee,  as the case may be, in form and substance reasonably  satisfactory to
Landlord,  shall be  delivered  promptly to  Landlord  and (a) in the case of an
assignment,  the assignee  shall assume in writing and agree to keep and perform
all of the  terms  of this  Agreement  on the  part  of  Tenant  to be kept  and
performed and shall be, and become, jointly and severally liable with Tenant for
the  performance  thereof and (b) in case of either an assignment or subletting,
Tenant 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 Tenant hereunder.

         The provisions of this Section 16.2 shall not be deemed a waiver of the
provisions set forth in the first paragraph of Section 16.1.

         16.3 Permitted  Sublease.  Notwithstanding  the  foregoing,  including,
without limitation, Section 16.1, but subject to any other express conditions or
limitations  set forth  herein  Tenant may,  in each  instance  after  Notice to
Landlord,  sublease  space at the  Leased  Property  for  newsstand,  gift shop,
parking garage, health club,  restaurant,  bar or commissary purposes or similar
concessions  in  furtherance  of the Permitted Use, so long as such subleases do
not demise, in the aggregate,  in excess of two thousand (2,000) square feet per
Property,  will not  violate  or  affect  any  Legal  Requirement  or  Insurance
Requirement,  and  Tenant  shall  provide  such  additional  insurance  coverage
applicable to the activities to be conducted in such subleased space as Landlord
and any Hotel Mortgagee may reasonably require.

         16.4  Sublease  Limitation.  For so long as Landlord or any  Affiliated
Person as to Landlord shall seek to qualify as a real estate  investment  trust,
anything  contained in this  Agreement to the contrary  notwithstanding,  Tenant
shall not sublet or  otherwise  enter  into any  agreement  with  respect to the
Leased  Property or any part  thereof on any basis such that the rental or other
fees to be paid by any sublessee thereunder would be based, in whole or in part,
on the income or profits  derived by the business  activities of such sublessee,
any other  formula such that any portion of such  sublease  rental would fail to
qualify as "rents from real  property"  within the meaning of Section  856(d) of
the Code,  or any  similar or  successor  provision  thereto or would  otherwise
disqualify Landlord for treatment as a real estate investment trust.

                                   ARTICLE 17

                 ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS

         17.1 Estoppel Certificates. At any time and from time to time, upon not
less  than ten (10)  Business  Days  prior  Notice by  either  party,  the party
receiving  such  Notice  shall  furnish  to the other an  Officer's  Certificate
certifying  that this  Agreement is unmodified  and in full force and effect (or
that this  Agreement is in full force and effect as modified  and setting  forth
the

                                      -48-
<PAGE>

modifications),  the date to which the Rent has been paid, that no Default or an
Event of Default has occurred and is continuing  or, if a Default or an Event of
Default shall exist, specifying in reasonable detail the nature thereof, and the
steps being taken to remedy the same,  and such  additional  information  as the
requesting party may reasonably request. Any such certificate furnished pursuant
to this Section 17.1 may be relied upon by the requesting party, its lenders and
any  prospective  purchaser or mortgagee of the Leased Property or the leasehold
estate created hereby.

         17.2  Financial  Statements.  Tenant  shall  furnish  or  cause to have
furnished, as applicable, the following statements to Landlord:

                  (a) within  forty-five (45) days after each of the first three
         quarters of any Fiscal Year, the most recent  Consolidated  Financials,
         accompanied by the Financial Officer's Certificate;

                  (b) within ninety (90) days after the end of each Fiscal Year,
         the most recent Consolidated  Financials for such year, certified by an
         independent  certified  public  accountant  reasonably  satisfactory to
         Landlord and accompanied by a Financial Officer's Certificate;

                  (c) within  thirty (30) days after the end of each  month,  an
         unaudited  operating  statement,  prepared  on a Hotel by Hotel  basis,
         including  occupancy  percentages  and average rate,  accompanied  by a
         Financial Officer's Certificate;

                  (d) promptly  after the sending or filing  thereof,  copies of
         all  reports  which  Tenant or Wyndham  sends to its  security  holders
         generally,  and copies of all periodic  reports which Tenant or Wyndham
         files with the SEC or any stock exchange on which its shares are listed
         or traded;

                  (e) at any  time  and from  time to time  upon  not less  than
         twenty (20) days Notice from Landlord,  any Consolidated  Financials or
         any  other  financial  reporting  information  required  to be filed by
         Landlord with any  securities and exchange  commission,  the SEC or any
         successor  agency,  or any other  governmental  authority,  or required
         pursuant to any order  issued by any court,  governmental  authority or
         arbitrator in any litigation to which Landlord is a party, for purposes
         of compliance therewith; and

                  (f)   promptly,   upon  Notice  from   Landlord,   such  other
         information concerning the business, financial condition and affairs of
         Tenant or Wyndham,  as  Landlord  reasonably  may request  from time to
         time.

         Landlord  may at any  time,  and from time to time,  provide  any Hotel
Mortgagee with copies of any of the foregoing statements.

         In  addition,  Landlord  shall  have the  right,  from  time to time at
Landlord's  sole cost and  expense,  upon  reasonable  Notice,  during  Tenant's
customary  business  hours,  to cause Tenant's books and records with respect to
the Leased Property to be audited by auditors  selected by Landlord at the place
where such books and records are customarily kept.

                                      -49-
<PAGE>

         17.3 General Operations. Tenant shall furnish to Landlord:

                  (a)  Within  thirty  (30) days after  receipt or  modification
         thereof,  copies of all licenses with respect to any Hotel  authorizing
         Tenant and/or the Manager to operate such Hotel for its Permitted Use;

                  (b) Not less than thirty (30) days after the  commencement  of
         any Fiscal  Year,  proposed  annual  income and  ordinary  expense  and
         capital improvement  budgets,  setting forth projected income and costs
         and expenses  projected  to be incurred by Tenant in managing,  owning,
         maintaining  and  operating  the  Hotels,  on  both  a  combined  and a
         Hotel-by-Hotel basis, during the next succeeding Fiscal Year; and

                  (c) Promptly after receipt or sending  thereof,  copies of all
         notices given or received by Tenant under the Management Agreement.

                                   ARTICLE 18

                           LANDLORD'S RIGHT TO INSPECT

         Tenant shall permit,  and shall direct the Manager to permit,  Landlord
and its authorized  representatives  to inspect the Leased Property during usual
business  hours upon not less than  twenty-four  (24) hours'  notice and to make
such repairs as Landlord is permitted or required to make  pursuant to the terms
of this  Agreement,  provided  that any  inspection or repair by Landlord or its
representatives will not unreasonably  interfere with Tenant's use and operation
of the Leased  Property and further  provided that in the event of an emergency,
as determined by Landlord in its reasonable  discretion,  prior Notice shall not
be necessary.

                                   ARTICLE 19

                                 HOTEL MORTGAGES

         19.1 Landlord May Grant Liens. Without the consent of Tenant,  Landlord
may,  subject to the terms and conditions  set forth in this Section 19.1,  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.  Notwithstanding  anything
to the contrary set forth in Section 19.2,  any such  Encumbrance  shall include
the right to prepay  (whether or not subject to a prepayment  penalty) and shall
provide  (subject  to  Section  19.2) that it is subject to the rights of Tenant
under this Agreement.

         19.2  Subordination of Lease.  Subject to Section 19.1 and this Section
19.2, this Agreement,  any and all rights of Tenant hereunder,  are and shall be
subject  and  subordinate  to any  ground or  master  lease,  and all  renewals,
extensions,  modifications  and replacements  thereof,  and to all mortgages and
deeds of trust,  which may now or  hereafter  affect the Leased  Property or any
improvements thereon and/or any of such leases, whether or not such mortgages or
deeds of trust shall also cover other lands and/or buildings  and/or leases,  to
each and every

                                      -50-
<PAGE>

advance made or hereafter  to be made under such  mortgages  and deeds of trust,
and to all renewals,  modifications,  replacements and extensions of such leases
and such mortgages and deeds of trust and all  consolidations  of such mortgages
and  deeds of  trust.  This  section  shall  be  self-operative  and no  further
instrument of subordination  shall be required provided that Tenant has received
a nondisturbance  and attornment  agreement from each Superior  Mortgagee and/or
Superior  Landlord,  consistent  with the  provisions  of this  Section 19.2 and
otherwise  in  form  and  substance   reasonably   satisfactory  to  Tenant.  In
confirmation of such subordination,  Tenant shall promptly execute,  acknowledge
and deliver any instrument that Landlord, the lessor under any such lease or the
holder of any such mortgage or the trustee or  beneficiary  of any deed of trust
or any of their  respective  successors  in interest may  reasonably  request to
evidence such  subordination.  Any lease to which this Agreement is, at the time
referred to, subject and subordinate is herein called  "Superior  Lease" and the
lessor of a Superior Lease or its successor in interest at the time referred to,
is herein called "Superior  Landlord" and any mortgage or deed of trust to which
this Agreement is, at the time referred to, subject and  subordinate,  is herein
called "Superior Mortgage" and the holder,  trustee or beneficiary of a Superior
Mortgage is herein called "Superior Mortgagee". Tenant shall have no obligations
under any Superior  Lease or Superior  Mortgage  other than those  expressly set
forth in this Section 19.2.

         If any  Superior  Landlord  or  Superior  Mortgagee  or the  nominee or
designee of any Superior  Landlord or Superior  Mortgagee  shall  succeed to the
rights of Landlord under this Agreement (any such person, "Successor Landlord"),
whether through  possession or foreclosure  action or delivery of a new lease or
deed, or otherwise,  such Successor  Landlord shall  recognize  Tenant's  rights
under this Agreement as herein provided and Tenant shall attorn to and recognize
the  Successor  Landlord as Tenant's  landlord  under this  Agreement and Tenant
shall promptly  execute and deliver any instrument that such Successor  Landlord
may  reasonably  request  to  evidence  such  attornment   (provided  that  such
instrument  does  not  alter  the  terms  of this  Agreement),  whereupon,  this
Agreement  shall continue in full force and effect as a direct lease between the
Successor Landlord and Tenant upon all of the terms, conditions and covenants as
are set forth in this  Agreement,  except that the  Successor  Landlord  (unless
formerly  Landlord under this Agreement or its nominee or designee) shall not be
(a) liable in any way to Tenant for any act or  omission,  neglect or default on
the part of any prior Landlord under this  Agreement,  (b)  responsible  for any
monies  owing by or on deposit  with any prior  Landlord to the credit of Tenant
(except to the extent actually paid or delivered to the Successor Landlord), (c)
subject  to any  counterclaim  or setoff  which  theretofore  accrued  to Tenant
against any prior  Landlord,  (d) bound by any  modification  of this  Agreement
subsequent to such Superior Lease or Mortgage,  or by any previous prepayment of
Minimum  Rent or  Additional  Rent for more than one (1) month in advance of the
date due hereunder,  which was not approved in writing by the Superior  Landlord
or the Superior  Mortgagee  thereto,  (e) liable to Tenant  beyond the Successor
Landlord's  interest in the Leased  Property  and the rents,  income,  receipts,
revenues,  issues and profits issuing from the Leased Property,  (f) responsible
for the  performance  of any work to be done by Landlord under this Agreement to
render the Leased  Property ready for occupancy by Tenant (subject to Landlord's
obligations  under  Section  5.1.3(b)  or  with  respect  to  any  insurance  or
Condemnation  proceeds),  or (g)  required  to remove any Person  occupying  the
Leased Property or any part thereof, except if such person claims by, through or
under the Successor Landlord. Tenant agrees at any time and from time to time to
execute a suitable  instrument in confirmation of Tenant's  agreement to attorn,
as  aforesaid  and  Landlord  agrees to provide

                                      -51-
<PAGE>

Tenant  with an  instrument  of  nondisturbance  and  attornment  from each such
Superior  Mortgagee  and  Superior  Landlord  in form and  substance  reasonably
satisfactory  to Tenant.  Nothing  contained in this Section 19.2 shall  relieve
Landlord  from any  liability  to Tenant  under  this  Agreement  following  the
exercise of remedies by a Superior Mortgagee.

         19.3 Notice to  Mortgagee  and  Superior  Landlord.  Subsequent  to the
receipt  by Tenant of  Notice  from  Landlord  as to the  identity  of any Hotel
Mortgagee or Superior  Landlord under a lease with  Landlord,  as ground lessee,
which  includes  the Leased  Property as part of the demised  premises and which
complies with Section 19.1 and 19.2 (which Notice shall be accompanied by a copy
of the  applicable  mortgage or lease),  no notice from Tenant to Landlord as to
the Leased  Property  shall be effective  unless and until a copy of the same is
given to such Hotel  Mortgagee or Superior  Landlord at the address set forth in
the above described Notice, and the curing of any of Landlord's defaults by such
Hotel  Mortgagee  or  Superior  Landlord  shall be  treated  as  performance  by
Landlord.

                                   ARTICLE 20

                         ADDITIONAL COVENANTS OF TENANT

         20.1 Prompt Payment of  Indebtedness.  Tenant shall (a) pay or cause to
be paid when due all  payments  of  principal  of and  premium  and  interest on
Tenant's Indebtedness for money borrowed and shall not permit or suffer any such
Indebtedness to become or remain in default beyond any applicable  grace or cure
period,  (b) pay or cause to be paid when due all  lawful  claims  for labor and
rents with respect to the Leased Property,  (c) pay or cause to be paid when due
all  trade  payables  and (d) pay or  cause  to be paid  when  due all  other of
Tenant's  Indebtedness  upon which it is or becomes  obligated,  except, in each
case,  other than that referred to in clause (a), to the extent payment is being
contested in good faith by appropriate  proceedings in accordance with Article 8
and if Tenant shall have set aside on its books  adequate  reserves with respect
thereto  in  accordance  with  GAAP,  if   appropriate,   or  unless  and  until
foreclosure,  distraint  sale or  other  similar  proceedings  shall  have  been
commenced.

         20.2 Conduct of Business. Tenant shall not engage in any business other
than the leasing and  operation of the Leased  Property and shall do or cause to
be done all  things  necessary  to  preserve,  renew and keep in full  force and
effect  and  in  good  standing  its  corporate  or  partnership  existence,  as
applicable, and its rights and licenses necessary to conduct such business.

         20.3  Maintenance  of  Accounts  and  Records.  Tenant  shall keep true
records and books of account of Tenant in which full,  true and correct  entries
will be made of  dealings  and  transactions  in relation  to the  business  and
affairs of Tenant in accordance with GAAP, where applicable,  Tenant shall apply
accounting  principles in the preparation of the financial  statements of Tenant
which, in the judgment of and the opinion of its independent public accountants,
are in accordance with GAAP,  where  applicable,  except for changes approved by
such independent public accountants.  Tenant shall provide to Landlord either in
a footnote to the financial statements delivered under Section 17.2 which relate
to the period in which such  change  occurs,

                                      -52-
<PAGE>

or in separate schedules to such financial statements, information sufficient to
show the effect of any such changes on such financial statements.

         20.4 Notice of  Litigation,  Etc.  Tenant  shall give prompt  Notice to
Landlord of any  litigation  or any  administrative  proceeding  to which it may
hereafter  become a party of which Tenant has notice or actual  knowledge  which
involves a potential  uninsured  liability  equal to or greater than Two Hundred
Fifty Thousand Dollars ($250,000) or which, in Tenant's reasonable opinion,  may
otherwise  result in any material  adverse  change in the business,  operations,
property,  prospects, results of operation or condition,  financial or other, of
Tenant.  Forthwith  upon Tenant  obtaining  knowledge of any  Default,  Event of
Default or any  default  or event of default  under any  agreement  relating  to
Indebtedness  for money borrowed in an aggregate  amount  exceeding,  at any one
time, Two Hundred Fifty Thousand Dollars  ($250,000),  or any event or condition
that would be required to be  disclosed  in a current  report filed by Tenant on
Form  8-K or in Part  II of a  quarterly  report  on Form  10-Q if  Tenant  were
required to file such reports  under the  Securities  Exchange  Act of 1934,  as
amended,  Tenant shall furnish Notice thereof to Landlord  specifying the nature
and period of existence thereof and what action Tenant has taken or is taking or
proposes to take with respect thereto.

         20.5 Indebtedness of Tenant.  Tenant shall not create, incur, assume or
guarantee, or permit to exist, or become or remain liable directly or indirectly
upon, any Indebtedness except the following:

                  (a) Indebtedness of Tenant to Landlord;

                  (b) Indebtedness of Tenant for Impositions, to the extent that
         payment  thereof  shall  not at the  time  be  required  to be  made in
         accordance with the provisions of Article 8;

                  (c)  Indebtedness  of Tenant in respect of judgments or awards
         (i) which have been in force for less than the applicable appeal period
         and in  respect  of which  execution  thereof  shall  have been  stayed
         pending  such  appeal or  review,  or (ii)  which are fully  covered by
         insurance  payable to Tenant,  or (iii)  which are for an amount not in
         excess of $250,000 in the aggregate at any one time outstanding and (x)
         which  have been in force for not  longer  than the  applicable  appeal
         period, so long as execution is not levied thereunder or (y) in respect
         of which an  appeal  or  proceedings  for  review  shall at the time be
         prosecuted in good faith in accordance  with the  provisions of Article
         8, and in respect of which  execution  thereof  shall have been  stayed
         pending such appeal or review;

                  (d) operating  liabilities  incurred in the ordinary course of
         Tenant's business;

                  (e)  Indebtedness  incurred  to  finance  the  acquisition  of
         equipment or personal property acquired in accordance with Section 6.1;
         provided that (i) the terms of such  Indebtedness  permit assumption by
         Landlord or an Affiliated Person thereof, and are otherwise approved by
         Landlord in writing (which approval shall not be unreasonably withheld,
         delayed or conditioned),  and (ii) any Lien securing such  Indebtedness
         is permitted by Section 20.9(a); and

                                      -53-
<PAGE>

                  (f) fees  payable to the Manager  pursuant  to the  Management
         Agreement;  provided  however  that  (i) no fees  shall  be paid to the
         Manager upon the occurrence and during the  continuance of a Default or
         Event of  Default  and (ii) such fees  shall be fully  subordinated  in
         right of payment the payment of Rent hereunder.

         20.6 Financial Condition of Tenant.  Tenant shall at all times maintain
Tangible Net Worth in an amount of not less than $15,000,000 (provided, however,
that it is  expressly  understood  and agreed  that the  amount of the  Security
Deposit may for such purpose be counted as equity at the full amount thereof).

         20.7 Distributions,  Payments to Affiliated Persons,  Etc. Tenant shall
not declare,  order,  pay or make,  directly or indirectly,  any Distribution or
payment  to, or  investment  in,  any  Affiliated  Person  of Tenant  (including
payments in the ordinary course of business and payments  pursuant to management
agreements  with any such  Affiliated  Person) or set apart any sum or  property
therefor,  or  agree  to do so,  if,  at the time of such  proposed  action,  or
immediately  after  giving  effect  thereto,  an Event of Default  shall  exist.
Otherwise, as long as no Event of Default shall have occurred and be continuing,
Tenant may make  Distributions,  loans and payments to Affiliated Persons (other
than from the FF&E Reserve,  which shall be governed by Section  5.1.2)  without
restriction.

         20.8 Prohibited Transactions. Tenant shall not permit to exist or enter
into any agreement or  arrangement  whereby it engages in a  transaction  of any
kind with any  Affiliated  Person as to Tenant,  except on terms and  conditions
which are commercially reasonable or as otherwise provided in Section 20.5(e).

         20.9 Liens and Encumbrances. Except as permitted by Section 7.1, Tenant
shall not create or incur or suffer to be created  or  incurred  or to exist any
Lien on this Agreement or any of Tenant's assets, properties,  rights or income,
or any of its interest therein, now or at any time hereafter owned, other than:

                  (a) Liens securing  Indebtedness  incurred in accordance  with
         Section  20.5(e);  provided,  however,  that (i) such Lien shall at all
         times  be  confined  solely  to the  asset  in  question,  and (ii) the
         aggregate  principal  amount of  Indebtedness  secured by any such Lien
         shall  not  exceed  the  cost of  acquisition  or  construction  of the
         property subject thereto;

                  (b) Permitted Encumbrances; and

                  (c) As permitted pursuant to Section 20.5(b) or (c).

         20.10 Merger;  Sale of Assets;  Etc.  Except as otherwise  permitted by
this  Agreement,  Tenant  shall not (i) sell,  lease (as  lessor or  sublessor),
transfer or otherwise dispose of, or abandon, all or any material portion of its
assets (including  capital stock) or business to any Person,  (ii) merge into or
with or consolidate  with any other Entity,  or (iii) sell,  lease (as lessor or
sublessor),  transfer or otherwise dispose of, or abandon, any personal property
or fixtures or any real property;  provided,  however, that, notwithstanding the
provisions  of clause  (iii)  preceding,  Tenant  may  dispose of  equipment  or
fixtures  which  have  become  inadequate,

                                      -54-
<PAGE>

obsolete, worn-out, unsuitable,  undesirable or unnecessary, provided substitute
equipment  or  fixtures  having  equal or  greater  value and  utility  (but not
necessarily having the same function) have been provided.

                                   ARTICLE 21

                         REPRESENTATIONS AND WARRANTIES

         21.1  Representations  of Tenant. To induce Landlord to enter into this
Agreement,  Tenant  represents and warrants to Landlord as of the date hereof as
follows:

                  21.1.1  Status and  Authority  of Tenant.  Tenant is a limited
partnership  duly  organized,  validly  existing and in corporate  good standing
under the laws of the State of Kansas.  The Tenant General  Partner is a limited
liability  company duly organized,  validly  existing and in good standing under
the laws of the State of Delaware. Each of Tenant and the Tenant General Partner
have all requisite  power and authority under the laws of its state of formation
and its  respective  organizational  documents  to enter  into and  perform  its
obligations under this Agreement and the Incidental  Documents and to consummate
the  transactions  contemplated  hereby.  Each of Tenant and the Tenant  General
Partner has duly qualified to transact  business in each  jurisdiction  in which
the nature of the business conducted by it requires such qualification.

                  21.1.2  Action of Tenant.  Each of Tenant  and Tenant  General
Partner have taken all necessary action to authorize the execution, delivery and
performance of this Agreement;  this Agreement constitutes the valid and binding
obligation  and agreement of Tenant,  enforceable  against  Tenant in accordance
with  its  terms,  except  as  enforceability  may  be  limited  by  bankruptcy,
insolvency,  reorganization,  moratorium or similar laws of general  application
affecting the rights and remedies of creditors.

                  21.1.3 No Violations  of  Agreements.  Neither the  execution,
delivery or  performance of this  Agreement by Tenant,  nor compliance  with the
terms and provisions hereof, will result in any breach of the terms,  conditions
or provisions of, or conflict with or constitute a default  under,  or result in
the  creation  of any lien,  charge or  encumbrance  upon  Tenant or the  Leased
Property pursuant to the terms of any indenture,  mortgage, deed of trust, note,
evidence of indebtedness or any other material  agreement or instrument by which
Tenant or, to Tenant's knowledge, the Leased Property is bound.

                  21.1.4 Litigation.  To Tenant's  knowledge,  and except as set
forth  in  sections  3.9 and 3.10 of the  Disclosure  Schedule  attached  to the
Purchase  Agreements or otherwise disclosed to Landlord in writing, no action or
proceeding is pending or threatened and no investigation  looking toward such an
action or proceeding has begun,  which  questions the validity of this Agreement
or any action taken or to be taken pursuant hereto,  will result in any material
adverse  change in the business,  operation,  affairs or condition of the Leased
Property  or Tenant,  result in or subject  the Leased  Property  or Tenant to a
material  liability,  or involves  condemnation  or eminent  domain  proceedings
against any part of the Leased Property.

                  21.1.5   Existing   Leases,   Agreements,   Etc.  To  Tenant's
knowledge, other than any agreements provided to Landlord prior to the March 20,
1998, there are no material agreements

                                      -55-
<PAGE>

affecting the Leased  Property  which will be binding on Landlord  subsequent to
the Commencement Date.

                  21.1.6  Disclosure.  To Tenant's knowledge there is no fact or
condition  which  materially and adversely  affects the business or condition of
the Leased  Property  which has not been set forth in this  Agreement  or in the
other documents,  certificates or statements furnished to Landlord in connection
with the transactions contemplated hereby.

                  21.1.7 Utilities,  Etc. To Tenant's  knowledge,  all utilities
and  services  necessary  for the  use  and  operation  of the  Leased  Property
(including,  without  limitation,  road  access,  gas,  water,  electricity  and
telephone) are available thereto,  are of sufficient capacity to meet adequately
all needs and  requirements  necessary  for the current use and operation of the
Leased Property and for its intended purposes.  To Tenant's knowledge,  no fact,
condition or proceeding exists which would result in the termination or material
impairment of the furnishing of such utilities to the Leased Property.

                  21.1.8 Compliance With Law. To Tenant's knowledge,  the Leased
Property and the use and operation  thereof do not violate any material federal,
state, municipal and other governmental statutes,  ordinances,  by-laws,  rules,
regulations  or any other legal  requirements,  including,  without  limitation,
those  relating  to  construction,   occupancy,  zoning,  adequacy  of  parking,
environmental  protection,  occupational  health  and  safety  and  fire  safety
applicable  thereto;  and there are  presently in effect all material  licenses,
permits and other  authorizations  necessary for the current use,  occupancy and
operation  thereof.  To  Tenant's  knowledge,  there is no  threatened  request,
application,  proceeding, plan, study or effort which would materially adversely
affect the present use or zoning of the Leased Property or which would modify or
realign  any  adjacent  street or highway  in a manner  which  would  materially
adversely affect the use and operation of the Leased Property.

                  21.1.9 Hazardous  Substances.  Except as disclosed to Landlord
in writing or as described in any environmental  report delivered to Landlord on
or prior to March 20, 1998, to Tenant's  knowledge,  no tenant or other occupant
or user of the Leased Property,  or any portion thereof,  has stored or disposed
of (or engaged in the  business of storing or  disposing  of) or has released or
caused the release of any  Hazardous  Substances,  and,  to Tenant's  knowledge,
except as disclosed to Landlord in writing or as described in any  environmental
report  delivered to Landlord on or prior to March 20, 1998, the Leased Property
is free from any such Hazardous Substances, except any such materials maintained
in accordance with Applicable Law.

         21.2  Representations  of Landlord.  To induce  Tenant to enter in this
Agreement, Landlord represents and warrants to Tenant as follows:

                  21.2.1  Status and  Authority of Landlord.  Landlord is a real
estate  investment trust duly organized,  validly existing and in corporate good
standing  under the laws of the State of Maryland.  Landlord  has all  requisite
power and authority  under the laws of its state of formation and its respective
charter documents to enter into and perform its obligations under this Agreement
and to  consummate  the  transactions  contemplated  hereby.  Landlord  has duly
qualified to transact  business in each  jurisdiction in which the nature of the
business conducted by it requires such qualification.

                                      -56-
<PAGE>

                  21.2.2  Action of Landlord.  Landlord has taken all  necessary
action to authorize the execution,  delivery and  performance of this Agreement;
this  Agreement  constitutes  the valid and binding  obligation and agreement of
Landlord,  enforceable  against Landlord in accordance with its terms, except as
enforceability  may  be  limited  by  bankruptcy,  insolvency,   reorganization,
moratorium  or similar  laws of  general  application  affecting  the rights and
remedies of creditors.

                  21.2.3 No Violations  of  Agreements.  Neither the  execution,
delivery or performance of this Agreement by Landlord,  nor compliance  with the
terms and provisions  hereof,  will result in any material  breach of the terms,
conditions or provisions of, or conflict with or constitute a default under,  or
result in the  creation of any lien,  charge or  encumbrance  upon any  material
property or assets of Landlord pursuant to the terms of any material  indenture,
mortgage,  deed of trust, note,  evidence of indebtedness or any other agreement
or instrument by which Landlord is bound.

                  21.2.4 Litigation.  No investigation,  action or proceeding is
pending and, to Landlord's knowledge,  no action or proceeding is threatened and
no  investigation  looking toward such an action or proceeding has begun,  which
questions  the  validity of this  Agreement  or any action  taken or to be taken
pursuant hereto.

         21.3  Survival,  Etc. The  representations  and warranties set forth in
Section 21.1.5 shall remain in effect only for a one-year  period after the date
of this  Agreement.  Except as otherwise  expressly  provided in this Agreement,
Tenant  disclaims the making of any  representations  or warranties,  express or
implied, regarding the Leased Property or matters affecting the Leased Property,
whether made by Tenant,  on Tenant's  behalf or  otherwise,  including,  without
limitation,  the  physical  condition  of the Leased  Property,  title to or the
boundaries of the Land, pest control  matters,  soil  conditions,  the presence,
existence  or  absence  of  hazardous   wastes,   toxic   substances   or  other
environmental  matters,  compliance with building,  health, safety, land use and
zoning  laws,   regulations  and  orders,   structural  and  other   engineering
characteristics,   traffic  patterns,   market  data,   economic  conditions  or
projections,  and any other information pertaining to the Leased Property or the
market and physical  environments in which it is located.  Landlord acknowledges
(i) that Landlord has entered into this  Agreement  with the intention of making
and relying upon its own  investigation or that of third parties with respect to
the physical, environmental, economic and legal condition of the Leased Property
and (ii) that Landlord is not relying upon any  statements,  representations  or
warranties  of any  kind,  other  than  those  specifically  set  forth  in this
Agreement or in any  document to be  delivered  to Landlord by Tenant.  Landlord
further  acknowledges  that it has not received  from or on behalf of Tenant any
accounting, tax, legal, architectural, engineering, property management or other
advice with respect to this transaction and is relying solely upon the advice of
third  party  accounting,  tax,  legal,  architectural,   engineering,  property
management  and other  advisors.  Subject to the  provisions of this  Agreement,
Landlord shall purchase the Leased Property in its "as is" condition on the date
hereof.

                                      -57-
<PAGE>

                                   ARTICLE 22

                                  MISCELLANEOUS

         22.1 Limitation on Payment of Rent. All agreements between Landlord and
Tenant herein are hereby  expressly  limited so that in no  contingency or event
whatsoever,  whether by reason of acceleration of Rent, or otherwise,  shall the
Rent or any other amounts  payable to Landlord under this  Agreement  exceed the
maximum  permissible  under applicable law, the benefit of which may be asserted
by Tenant as a defense, and if, from any circumstance whatsoever, fulfillment of
any provision of this Agreement, at the time performance of such provision shall
be due, shall involve  transcending the limit of validity  prescribed by law, or
if from any  circumstances  Landlord  should ever receive as fulfillment of such
provision such an excessive amount,  then, ipso facto, the amount which would be
excessive  shall be applied to the  reduction of the  installment(s)  of Minimum
Rent next due and not to the payment of such  excessive  amount.  This provision
shall control every other  provision of this Agreement and any other  agreements
between Landlord and Tenant.

         22.2 No Waiver.  No failure by  Landlord  or Tenant 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 maximum extent  permitted by law, no
waiver of any breach shall affect or alter this Agreement,  which shall continue
in full force and effect with respect to any other then  existing or  subsequent
breach.

         22.3 Remedies Cumulative.  To the maximum extent permitted by law, each
legal,  equitable or contractual  right, power and remedy of Landlord or Tenant,
now or hereafter  provided  either in this Agreement 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
Landlord or Tenant (as applicable) of any one or more of such rights, powers and
remedies shall not preclude the simultaneous or subsequent  exercise by Landlord
of any or all of such other rights, powers and remedies.

         22.4  Severability.   Any  clause,  sentence,   paragraph,  section  or
provision  of this  Agreement  held by a court of competent  jurisdiction  to be
invalid,  illegal or  ineffective  shall not impair,  invalidate  or nullify the
remainder of this Agreement,  but rather the effect thereof shall be confined to
the clause,  sentence,  paragraph,  section or  provision so held to be invalid,
illegal  or  ineffective,  and  this  Agreement  shall be  construed  as if such
invalid, illegal or ineffective provisions had never been contained therein.

         22.5  Acceptance  of  Surrender.  No  surrender  to  Landlord  of  this
Agreement  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
Landlord  and no act by Landlord  or any  representative  or agent of  Landlord,
other than such a written acceptance by Landlord, shall constitute an acceptance
of any such surrender.

                                      -58-
<PAGE>

         22.6 No Merger of Title. It is expressly  acknowledged  and agreed that
it is the intent of the parties that there shall be no merger of this  Agreement
or of the leasehold  estate  created  hereby by reason of the fact that the same
Person may acquire,  own or hold,  directly or indirectly  this Agreement or the
leasehold estate created hereby and the fee estate or ground landlord's interest
in the Leased Property.

         22.7 Conveyance by Landlord.  If Landlord or any successor owner of all
or any  portion of the Leased  Property  shall  convey all or any portion of the
Leased Property in accordance with the terms hereof other than as security for a
debt,  and the  grantee  or  transferee  of such of the  Leased  Property  shall
expressly assume all obligations of Landlord  hereunder arising or accruing from
and after the date of such  conveyance or transfer,  Landlord or such  successor
owner,  as the case may be, shall,  provided such  successor  owner shall have a
Tangible Net Worth of not less than Five Million Dollars ($5,000,000),  (y) such
conveyance shall occur  subsequent to the first  anniversary of the Commencement
Date and (z)  Landlord  shall  transfer  in cash any  unapplied  balance  of the
Security Deposit to such successor owner,  thereupon be released from all future
liabilities  and  obligations  of Landlord  under this Agreement with respect to
such of the Leased Property  arising or accruing from and after the date of such
conveyance or other  transfer and all such future  liabilities  and  obligations
shall thereupon be binding upon the new owner.

         22.8 Quiet  Enjoyment.  Provided  that no Event of  Default  shall have
occurred and be continuing,  Tenant shall  peaceably and quietly have,  hold and
enjoy the Leased  Property for the Term,  free of hindrance  or  molestation  by
Landlord or anyone  claiming by, through or under  Landlord,  but subject to (a)
any Encumbrance  permitted under Article 19 or otherwise permitted to be created
by Landlord  hereunder  provided that the holder of such Encumbrance has, to the
extent appropriate, executed a nondisturbance agreement pursuant to Section 19.2
or a  subordination  agreement in form and  substance  reasonably  acceptable to
Tenant, (b) all Permitted Encumbrances,  (c) liens as to obligations of Landlord
that are  either not yet due or which are being  contested  in good faith and by
proper proceedings,  provided the same do not materially interfere with Tenant's
ability to  operate  the Hotel,  and (d) liens  that have been  consented  to in
writing by Tenant. Except as otherwise provided in this Agreement, no failure by
Landlord to comply with the  foregoing  covenant  shall give Tenant any right to
cancel or terminate this Agreement or abate,  reduce or make a deduction from or
offset  against the Rent or any other sum payable  under this  Agreement,  or to
fail to perform any other obligation of Tenant hereunder.

         22.9 Memorandum of Lease. Neither Landlord nor Tenant shall record this
Agreement.  However, Landlord and Tenant shall promptly, upon the request of the
other,  enter into a short form memorandum of this  Agreement,  in form suitable
for recording  under the laws of the relevant  State in which  reference to this
Agreement,  and all options contained  herein,  shall be made. The parties shall
share equally all costs and expenses of recording such memorandum.

         22.10 Notices.

                  (a) Any and all notices, demands, consents, approvals, offers,
         elections  and other  communications  required or permitted  under this
         Agreement shall be deemed

                                      -59-
<PAGE>

         adequately  given if in writing and the same shall be delivered  either
         in hand, by telecopier with written  acknowledgment  of receipt,  or by
         mail or  Federal  Express  or  similar  expedited  commercial  carrier,
         addressed to the  recipient of the notice,  postpaid and  registered or
         certified  with  return  receipt  requested  (if by mail),  or with all
         freight charges prepaid (if by Federal Express or similar carrier).

                  (b) All notices  required or  permitted  to be sent  hereunder
         shall be deemed to have been given for all  purposes of this  Agreement
         upon  the date of  acknowledged  receipt,  in the  case of a notice  by
         telecopier,  and,  in all  other  cases,  upon the date of  receipt  or
         refusal,  except that whenever  under this Agreement a notice is either
         received  on a day which is not a  Business  Day or is  required  to be
         delivered on or before a specific day which is not a Business  Day, the
         day of receipt or required delivery shall  automatically be extended to
         the next Business Day.

                  (c)      All such notices shall be addressed,

         if to Landlord to:

                  c/o Hospitality Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attn:  Mr. John G. Murray
                  [Telecopier No. (617) 969-5730]

         with a copy to:

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attn:  Alexander A. Notopoulos, Jr., Esq.
                  [Telecopier No. (617) 338-2880]

         if to Tenant to:

                  c/o Wyndham International, Inc.
                  1950 Stemmons Freeway, Suite 6001
                  Dallas, Texas  75207
                  Attn:  General Counsel
                  [Telecopier:  (214) 863-1262]

                                      -60-
<PAGE>

           with a copy to:

                  Locke, Liddell & Sapp LLP
                  2200 Ross Avenue, Suite 2200
                  Dallas, Texas  75201
                  Attn:  J. Mitchell Bell, Esq.
                  [Telecopier No. (214) 740-8800]

                  (d) By notice given as herein provided, the parties hereto and
         their  respective  successor and assigns shall have the right from time
         to time and at any time  during  the term of this  Agreement  to change
         their respective  addresses effective upon receipt by the other parties
         of such  notice and each shall have the right to specify as its address
         any other address within the United States of America.

         22.11 Trade Area Restriction.  Neither Tenant nor any of its Affiliated
Persons shall own, build,  franchise,  manage or operate any Summerfield  Suites
hotel within the  designated  area on Exhibit C, at any time during the Term; it
being expressly  understood and agreed that hotels other than Summerfield Suites
hotels  (e.g.,  garden,  full service,  Sierra Suites or resort  hotels) are not
subject to the foregoing restriction.

         22.12  Construction.  Anything  contained  in  this  Agreement  to  the
contrary  notwithstanding,  all claims  against,  and  liabilities of, Tenant or
Landlord  arising  prior  to any  date  of  termination  or  expiration  of this
Agreement with respect to the Leased Property shall survive such  termination or
expiration.  In no event shall Landlord be liable for any consequential  damages
suffered  by Tenant as the  result of a breach of this  Agreement  by  Landlord.
Neither  this  Agreement  nor  any  provision  hereof  may be  changed,  waived,
discharged or terminated  except by an instrument in writing signed by the party
to be charged.  All the terms and provisions of this Agreement  shall be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors and assigns. Each term or provision of this Agreement to be performed
by Tenant shall be construed as an independent  covenant and condition.  Time is
of the essence  with  respect to the  provisions  of this  Agreement.  Except as
otherwise set forth in this  Agreement,  any  obligations  of Tenant  (including
without limitation,  any monetary,  repair and indemnification  obligations) and
Landlord shall survive the expiration or sooner termination of this Agreement.

         22.13 Counterparts;  Headings. This Agreement may be executed in two or
more counterparts,  each of which shall constitute an original,  but which, when
taken together,  shall  constitute but one instrument and shall become effective
as of the date hereof when copies hereof,  which, when taken together,  bear the
signatures  of each of the parties  hereto shall have been  signed.  Headings in
this  Agreement are for purposes of reference only and shall not limit or affect
the meaning of the provisions hereof.

         22.14  Applicable  Law,  Etc.  This  Agreement  shall  be  interpreted,
construed,  applied and enforced in accordance with the laws of The Commonwealth
of Massachusetts  applicable to contracts  between residents of The Commonwealth
of Massachusetts  which are to be performed  entirely within The Commonwealth of
Massachusetts,  regardless of (i) where this Agreement is

                                      -61-
<PAGE>

executed or delivered;  or (ii) where any payment or other performance  required
by this  Agreement is made or required to be made;  or (iii) where any breach of
any  provision  of this  Agreement  occurs,  or any  cause of  action  otherwise
accrues;  or (iv) where any action or other proceeding is instituted or pending;
or (v) the nationality,  citizenship,  domicile, principal place of business, or
jurisdiction of organization or  domestication of any party; or (vi) whether the
laws of the forum jurisdiction  otherwise would apply the laws of a jurisdiction
other than The  Commonwealth of  Massachusetts;  or (vii) any combination of the
foregoing.

         To the  maximum  extent  permitted  by  applicable  law,  any action to
enforce,  arising out of, or relating  in any way to, any of the  provisions  of
this  Agreement may be brought and prosecuted in such court or courts located in
The Commonwealth of Massachusetts as is provided by law; and the parties consent
to the  jurisdiction  of said  court or courts  located in The  Commonwealth  of
Massachusetts  and to  service of process by  registered  mail,  return  receipt
requested, or by any other manner provided by law.

         22.15  Nonrecourse.  Nothing  contained  in  this  Agreement  shall  be
construed  to  impose  any  liabilities  or  obligations  on  SHC  or any of its
shareholders for the payment or performance of the obligations or liabilities of
Tenant under this Agreement.

         22.16 Confidentiality.  Except to prospective lenders and purchasers or
as may be required by law, the SEC or any  securities  and exchange  commission,
Landlord  shall  not  disclose  any  of  Tenant's  confidential  or  proprietary
information to any Person.

         22.17 Costs and Expenses.  Tenant shall pay its and Landlord's expenses
incident to the  negotiation,  preparation  and carrying out of this  Agreement,
including,  without  limitation,  all reasonable fees and expenses of Landlord's
counsel. Tenant shall also pay the cost of all recording fees, transfer fees and
other like costs and expenses incident to this Agreement.

         22.18  Nonliability of Trustees.  THE DECLARATION OF TRUST ESTABLISHING
LANDLORD,   A  COPY  OF  WHICH,   TOGETHER  WITH  ALL  AMENDMENTS  THERETO  (THE
"DECLARATION"), IS DULY FILED WITH THE DEPARTMENT OF ASSESSMENTS AND TAXATION OF
THE STATE OF MARYLAND,  PROVIDES THAT THE NAME "HPTSHC  PROPERTIES TRUST" REFERS
TO THE  TRUSTEES  UNDER  THE  DECLARATION  COLLECTIVELY  AS  TRUSTEES,  BUT  NOT
INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER, SHAREHOLDER,  EMPLOYEE
OR AGENT  OF  LANDLORD  SHALL  BE HELD TO ANY  PERSONAL  LIABILITY,  JOINTLY  OR
SEVERALLY,  FOR ANY  OBLIGATION  OF, OR CLAIM  AGAINST,  LANDLORD.  ALL  PERSONS
DEALING WITH LANDLORD, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF LANDLORD FOR
THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

                                      -62-
<PAGE>

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

                                  LANDLORD:

                                  HPTSHC PROPERTIES TRUST

                                  By: /s/ John G. Murray
                                      Its President

                                  TENANT:

                                  SUMMERFIELD HPT LEASE COMPANY, L.P.,
                                  a Kansas limited partnership

                                           By:  Summerfield HPT Lease Company
                                           L.L.C., its General Partner

                                           By: /s/ Judy L. Hendrick
                                           Its: Authorized Representative

                                      -63-EXHIBIT 10.15

                             MASTER LEASE AGREEMENT,

                           dated as of April 30, 1999,

                                  by and among

                        HOSPITALITY PROPERTIES TRUST AND
                             HPTCY PROPERTIES TRUST,
                                  as Landlord,

                                       and

                             HMH HPT COURTYARD LLC,
                                    as Tenant

<PAGE>

                                TABLE OF CONTENTS
ARTICLE 1
         1.1  "Accounting Period...............................................2
         1.2  "Additional Rent.................................................2
         1.3  "Additional Charges..............................................2
         1.4  "Affiliated Person...............................................2
         1.5  "Agreement.......................................................2
         1.6  "Applicable Laws.................................................3
         1.7  "Award...........................................................3
         1.8  "Base Hotel Sales................................................3
         1.9  "Base Year.......................................................3
         1.10  "Business Day...................................................4
         1.11  "Capital Addition...............................................4
         1.12  "Capital Expenditure............................................4
         1.13  "Cash Management Agreement......................................5
         1.14  "Claim..........................................................5
         1.15  "Code...........................................................5
         1.16  "Collective Leased Properties...................................5
         1.17  "Commencement Date..............................................5
         1.18  "Condemnation...................................................5
         1.19  "Condemnor......................................................5
         1.20  "Consolidated Financials........................................6
         1.21  "Date of Taking.................................................6
         1.22  "Default........................................................6
         1.23  "Distribution...................................................6
         1.24  "Encumbrance....................................................6
         1.25  "Entity.........................................................6
         1.26  "Environment....................................................6
         1.27  "Environmental Obligation.......................................7
         1.28  "Environmental Notice...........................................7
         1.29  "Event of Default...............................................7
         1.30  "Excess Total Hotel Sales.......................................7
         1.31  "Extended Terms.................................................7
         1.32  "FF&E Reserve...................................................7
         1.33  "Financial Officer's Certificate................................7
         1.34  "Financials.....................................................7
         1.35  "Fiscal Year....................................................8
         1.36  "Fixed Term.....................................................8
         1.37  "Fixtures.......................................................8
         1.38  "GAAP...........................................................8
         1.39  "Government Agencies............................................8
         1.40  "Ground Lease...................................................8
<PAGE>
                                      -ii-

         1.41  "Hazardous Substances...........................................8
         1.42  "Host...........................................................9
         1.43  "Hotel..........................................................9
         1.44  "Hotel Mortgage................................................10
         1.45  "Hotel Mortgagee...............................................10
         1.46  "Immediate Family..............................................10
         1.47  "Impositions...................................................10
         1.48  "Incidental Documents..........................................11
         1.49  "Indebtedness..................................................11
         1.50  "Initial Leases................................................11
         1.51  "Insurance Requirements........................................12
         1.52  "Interest Rate.................................................12
         1.53  "Land..........................................................12
         1.54  "Landlord......................................................12
         1.55  "Landlord Liens................................................12
         1.56  "Lease Year....................................................12
         1.57  "Leased Improvements...........................................12
         1.58  "Leased Intangible Property....................................12
         1.59  "Leased Personal Property......................................13
         1.60  "Leased Property...............................................13
         1.61  "Legal Requirements............................................13
         1.62  "Lending Institution...........................................13
         1.63  "Lien..........................................................14
         1.64  "Management Agreements.........................................14
         1.65  "Manager.......................................................14
         1.66  "Membership Pledge.............................................14
         1.67  "Minimum Rent..................................................14
         1.68  "Notice........................................................14
         1.69  "Officer's Certificate.........................................14
         1.70  "Overdue Rate..................................................15
         1.71  "Parent........................................................15
         1.72  "Permitted Encumbrances........................................15
         1.73  "Permitted Liens...............................................15
         1.74  "Permitted Use.................................................15
         1.75  "Person........................................................15
         1.76  "Pledge and Security Agreement.................................15
         1.77  "Purchase Agreement............................................15
         1.78  "Records.......................................................15
         1.79  "Rent..........................................................16
         1.80  "Request Notice................................................16
         1.81  "Response Notice...............................................16
         1.82  "SEC...........................................................16
         1.83  "State.........................................................16
         1.84  "Sublease Consent Agreement....................................16
         1.85  "Subordination Agreement.......................................16

<PAGE>
                                      -iii-

         1.86  "Subsidiary....................................................16
         1.87  "Subtenant Pledge..............................................16
         1.88  "Subtenant Note Pledge.........................................16
         1.89  "Successor Landlord............................................17
         1.90  "Tangible Net Worth............................................17
         1.91  "Tenant........................................................17
         1.92  "Tenant's Personal Property....................................17
         1.93  "Term..........................................................17
         1.94  "Total Hotel Sales.............................................18
         1.95  "Uniform System of Accounts....................................18
         1.96  "Unsuitable for Its Permitted Use..............................18
         1.97  "Work..........................................................18

ARTICLE 2
         COLLECTIVE LEASED PROPERTIES AND TERM................................18
         2.1  Collective Leased Properties....................................18
         2.2  Condition of Collective Leased Properties.......................20
         2.3  Fixed Term......................................................21
         2.4  Extended Term...................................................21
         2.5  Ground Lease Extensions.........................................21

ARTICLE 3
         RENT.................................................................22
         3.1  Rent............................................................22
         3.2  Late Payment of Rent, Etc.......................................28
         3.3  Net Lease.......................................................29
         3.4  No Termination, Abatement, Etc..................................29
         3.5  Security for Tenant's Performance...............................30

ARTICLE 4
         USE OF THE COLLECTIVE LEASED PROPERTIES, ETC.........................31
         4.1  Permitted Use...................................................31
         4.2  Compliance with Legal/Insurance Requirements, Etc...............33
         4.3  Environmental Matters...........................................33

ARTICLE 5
         MAINTENANCE AND REPAIRS..............................................36
         5.1  Maintenance and Repair..........................................36
         5.2  Tenant's Personal Property......................................39
         5.3  Yield Up........................................................39
         5.4  Management Agreements...........................................40

<PAGE>
                                      -iv-

ARTICLE 6
         IMPROVEMENTS, ETC....................................................40
         6.1  Improvements to the Leased Property.............................40
         6.2  Salvage.........................................................41

ARTICLE 7
         LIENS................................................................42
         7.1  Liens...........................................................42
         7.2 Landlord's Lien..................................................42

ARTICLE 8
         PERMITTED CONTESTS...................................................43

ARTICLE 9
         INSURANCE AND INDEMNIFICATION........................................44
         9.1  General Insurance Requirements..................................44
         9.2  Replacement Cost................................................46
         9.3  Waiver of Subrogation...........................................46
         9.4  Form Satisfactory, Etc..........................................46
         9.5  Blanket Policy..................................................47
         9.6  No Separate Insurance...........................................48
         9.7  Indemnification of Landlord.....................................48

ARTICLE 10
         CASUALTY.............................................................49
         10.1  Insurance Proceeds.............................................49
         10.2  Damage or Destruction..........................................49
         10.3  Damage Near End of Term........................................52
         10.4  Tenant's Property..............................................53
         10.5  Restoration of Tenant's Property...............................53
         10.6  No Abatement of Rent...........................................54
         10.7  Waiver.........................................................54

ARTICLE 11
         CONDEMNATION.........................................................54
         11.1  Total Condemnation, Etc........................................54
         11.2  Partial Condemnation...........................................54
         11.3  Abatement of Rent..............................................56

<PAGE>
                                       -v-

         11.4  Temporary Condemnation.........................................56
         11.5  Allocation of Award............................................57

ARTICLE 12
         DEFAULTS AND REMEDIES................................................57
         12.1  Events of Default..............................................57
         12.2  Remedies.......................................................61
         12.3  Tenant's Waiver................................................63
         12.4  Application of Funds...........................................64
         12.5  Landlord's Right to Cure Tenant's Default......................64

ARTICLE 13
         HOLDING OVER.........................................................65

ARTICLE 14
         LANDLORD'S NOTICE OBLIGATIONS; LANDLORD DEFAULT......................65
         14.1  Landlord Notice Obligation.....................................65
         14.2  Landlord's Default.............................................65

ARTICLE 15
         INTENTIONALLY DELETED................................................66

ARTICLE 16
         SUBLETTING AND ASSIGNMENT............................................66
         16.1  Subletting and Assignment......................................66
         16.2  Required Sublease Provisions...................................68
         16.3  Permitted Sublease.............................................70
         16.4  Sublease Limitation............................................70

ARTICLE 17
         ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS.......................70
         17.1  Estoppel Certificates..........................................70
         17.2  Financial Statements...........................................71
         17.3  General Operations.............................................72

ARTICLE 18
         LANDLORD'S RIGHT TO INSPECT..........................................73
<PAGE>
                                      -vi-

ARTICLE 19
         INTENTIONALLY DELETED................................................73

ARTICLE 20
         HOTEL MORTGAGES......................................................73
         20.1  Landlord May Grant Liens.......................................73
         20.2  Subordination of Lease.........................................74
         20.3  Notices........................................................76
         20.4  Transfer of Collective Leased Properties.......................76

ARTICLE 21
         ADDITIONAL COVENANTS OF TENANT.......................................77
         21.1  Prompt Payment of Indebtedness.................................77
         21.2  Conduct of Business............................................77
         21.3  Maintenance of Accounts and Records............................77
         21.4  Notice of Litigation, Etc......................................78
         21.5  Indebtedness of Tenant.........................................78
         21.6  Financial Condition of Tenant..................................79
         21.7  Distributions, Payments to Affiliated Persons, Etc.............79
         21.8  Prohibited Transactions........................................80
         21.9  Liens and Encumbrances.........................................80
         21.10 Merger; Sale of Assets; Etc....................................80

ARTICLE 22
         MISCELLANEOUS........................................................81
         22.1  Limitation on Payment of Rent..................................81
         22.2  No Waiver......................................................81
         22.3  Remedies Cumulative............................................81
         22.4  Severability...................................................82
         22.5  Acceptance of Surrender........................................82
         22.6  No Merger of Title.............................................82
         22.7  Conveyance by Landlord.........................................82
         22.8  Quiet Enjoyment................................................83
         22.9  Memorandum of Lease............................................83
         22.10  Notices.......................................................83
         22.11  Construction; Nonrecourse.....................................85
         22.12  Counterparts; Headings........................................86
         22.13  Applicable Law, Etc...........................................86
         22.14  Right to Make Agreement.......................................87
         22.15  Nonliability of Trustees......................................87
<PAGE>
                                      -vii-

EXHIBITS

A -      Allocation of Minimum Rent
B-1-53 - The Land

<PAGE>
                             MASTER LEASE AGREEMENT

         THIS  MASTER  LEASE  AGREEMENT  is entered  into as of this 30th day of
April,  1999,  by and  among  HOSPITALITY  PROPERTIES  TRUST  ("HPT")  and HPTCY
PROPERTIES TRUST ("HPTCY" and, together with HPT,  "Landlord"),  each a Maryland
real estate investment trust, as landlord, and HMH HPT COURTYARD LLC, a Delaware
limited liability company, as tenant ("Tenant").

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

         WHEREAS,  pursuant  to (i) the 21  leases,  dated  March  24,  1995 (as
amended,  the  "Original  Leases"),  between  HPT, as  successor  in interest to
Hospitality  Properties,  Inc.  and  Tenant,  successor  by  merger  to HMH  HPT
Courtyard,  Inc.,  (ii) the 16 leases  dated  August 22, 1995 (as  amended,  the
"Second Closing Leases"),  between HPT and Tenant,  and (iii) the 16 leases some
dated March 22, 1996 and some dated April 4, 1996 (as  amended,  "Third  Closing
Leases" and,  together with the Original  Leases and the Second Closing  Leases,
the "Initial Leases") between HPTCY, successor in interest to HPTCY Corporation.
Landlord  leased  certain   properties  to  Tenant  and  Tenant  leased  certain
properties  from Landlord,  all subject to and upon the terms and conditions set
forth in the Initial Leases; and

         WHEREAS, Landlord and Tenant wish to amend certain terms of the Initial
Leases and consolidate the Initial Leases into a single master lease  agreement,
all subject to and upon the terms and conditions herein set forth;

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained  and other good and  valuable  consideration,  the mutual  receipt and
legal sufficiency of which are hereby  acknowledged,  Landlord and Tenant hereby
consolidate, amend and restate the Initial Leases as follows:
<PAGE>
                                      -2-

                                    ARTICLE 1

                                   DEFINITIONS

         For all  purposes  of this  Agreement,  except as  otherwise  expressly
provided or unless the context otherwise requires, (i) the terms defined in this
Article shall have the meanings assigned to them in this Article and include the
plural as well as the singular,  (ii) all accounting terms not otherwise defined
herein shall have the meanings  assigned to them in accordance with GAAP,  (iii)
all references in this Agreement to designated  "Articles," "Sections" and other
subdivisions are to the designated Articles,  Sections and other subdivisions of
this  Agreement,  and (iv) the words "herein,"  "hereof,"  "hereunder" and other
words of  similar  import  refer  to this  Agreement  as a whole  and not to any
particular Article, Section or other subdivision.

         1.1  "Accounting  Period" shall have the meaning given such term in the
Management Agreements.

         1.2 "Additional Rent" shall have the meaning given such term in Section
3.1.2(a).

         1.3  "Additional  Charges"  shall have the  meaning  given such term in
Section 3.1.3.

         1.4 "Affiliated  Person" shall mean, with respect to any Person, (a) in
the  case of any  such  Person  which  is a  partnership,  any  partner  in such
partnership,  (b) in the case of any such  Person  which is a limited  liability
company,  any member of such company,  (c) any other Person which is a Parent, a
Subsidiary, or a Subsidiary of a Parent with respect to such Person or to one or
more of the Persons  referred to in the  preceding  clauses (a) and (b), (d) any
other Person who is an officer, director, trustee or employee of, or partner in,
such Person or any Person referred to in the preceding clauses (a), (b) and (c),
and (e) any other Person who is a member of the Immediate  Family of such Person
or of any Person referred to in the preceding clauses (a) through (d).
<PAGE>
                                      -3-

         1.5  "Agreement"  shall mean this  Master  Lease  Agreement,  including
Exhibits  A and B  hereto,  as it and they may be  amended  from time to time as
herein provided.

         1.6  "Applicable  Laws"  shall  mean  all  applicable  laws,  statutes,
regulations,  rules, ordinances,  codes, licenses, permits and orders, from time
to time in existence,  of all courts of competent  jurisdiction  and  Government
Agencies, and all applicable judicial and administrative and regulatory decrees,
judgments and orders, including common law rulings and determinations,  relating
to injury to, or the  protection  of, real or personal  property or human health
(except those requirements  which, by definition,  are solely the responsibility
of employers) or the Environment,  including,  without limitation, all valid and
lawful  requirements  of courts  and other  Government  Agencies  pertaining  to
reporting,  licensing,  permitting,  investigation,  remediation  and removal of
underground  improvements (including,  without limitation,  treatment or storage
tanks,  or water,  gas or oil  wells),  or  emissions,  discharges,  releases or
threatened releases of Hazardous  Substances,  chemical substances,  pesticides,
petroleum or petroleum products, pollutants,  contaminants or hazardous or toxic
substances, materials or wastes whether solid, liquid or gaseous in nature, into
the Environment, or relating to the manufacture,  processing, distribution, use,
treatment,  storage,  disposal,  transport or handling of Hazardous  Substances,
underground  improvements (including,  without limitation,  treatment or storage
tanks, or water, gas or oil wells), or pollutants,  contaminants or hazardous or
toxic  substances,  materials  or wastes,  whether  solid,  liquid or gaseous in
nature.

         1.7  "Award"  shall  mean,  with  respect to any Leased  Property,  all
compensation, sums or other value awarded, paid or received by virtue of a total
or  partial  Condemnation  of  such  Leased  Property  (after  deduction  of all
reasonable  legal  fees and  other  reasonable  costs and  expenses,  including,
without  limitation,  expert witness fees,  incurred by Landlord,  in connection
with obtaining any such award).

         1.8 "Base Hotel Sales" shall mean the  aggregate  Total Hotel Sales for
the Collective Leased Properties for the Base Year; provided,  however, that, in
the event that,  with  respect to any

<PAGE>
                                      -4-

Lease Year, or portion thereof, for any reason (including, without limitation, a
casualty or  Condemnation)  there shall be a reduction in the number of rooms at
any Hotel or a change in the services provided at any Hotel (including,  without
limitation,  closing of  restaurants)  from the number of rooms or the  services
provided  during the Base Year,  in  determining  Additional  Rent  payable with
respect to such Lease Year, Base Hotel Sales shall be reduced as follows: (a) in
the event of the  termination  of this  Agreement  with  respect  to any  Leased
Property,  all Total Hotel Sales attributable to such Leased Property during the
Base Year  shall be  subtracted  from Base  Hotel  Sales;  (b) in the event of a
complete  closing of any Hotel at any Leased  Property,  all Total  Hotel  Sales
attributable  to such Hotel during the Base Year shall be  subtracted  from Base
Hotel Sales throughout the period of such closing; (c) in the event of a partial
closing of any Hotel  affecting  any number of guest rooms in such Hotel,  Total
Hotel Sales  attributable to guest room occupancy or guest room services at such
Hotel during the Base Year shall be ratably  allocated  among all guest rooms in
service  at such  Hotel  during  the Base Year and all such  Total  Hotel  Sales
attributable  to rooms no longer in service shall be subtracted  from Base Hotel
Sales throughout the period of such closing;  (d) in the event of a closing of a
restaurant at any Leased  Property,  all Total Hotel Sales  attributable to such
restaurant  during  the Base Year  shall be  subtracted  from Base  Hotel  Sales
throughout the period of such closing;  and (e) in the event of any other change
in  circumstances  affecting  any Hotel,  Base Hotel  Sales  shall be  equitably
adjusted in such manner as Landlord and Tenant shall reasonably agree.

         1.9 "Base  Year"  shall mean the 1994  Fiscal  Year for the  Collective
Leased  Properties  identified as Group A and Group C on Exhibit A, and the 1995
Fiscal  Year  for the  Collective  Leased  Properties  identified  as Group D on
Exhibit A.

         1.10 "Business Day" shall mean any day other than Saturday,  Sunday, or
any other day on which banking institutions in The Commonwealth of Massachusetts
or the State of Maryland are authorized by law or executive action to close.

         1.11  "Capital  Addition"  shall  mean,  with  respect  to  any  Leased
Property,  any  renovation,  repair or improvement  to such
<PAGE>
                                      -5-

Leased Property (or portion  thereof),  the cost of which  constitutes a Capital
Expenditure and the making or implementation of which requires "Owner's" consent
under the Management Agreement for such Leased Property.

         1.12  "Capital  Expenditure"  shall  mean any  expenditure  treated  as
capital in nature in accordance with GAAP.

         1.13  "Cash   Management   Agreement"  shall  mean  that  certain  Cash
Management Agreement, dated as of the date hereof, by and among Landlord, Tenant
and CCMH Courtyard I LLC.

         1.14 "Claim" shall have the meaning given such term in Article 8.

         1.15 "Code"  shall mean the  Internal  Revenue Code of 1986 and, to the
extent applicable, the Treasury Regulations promulgated thereunder, each as from
time to time amended.

         1.16 "Collective  Leased  Properties" shall have the meaning given such
term in Section 2.1.

         1.17  "Commencement  Date"  shall  mean,  with  respect  to any  Leased
Property, the date of the Initial Lease with respect to such Leased Property.

         1.18  "Condemnation"  shall mean, with respect to any Leased  Property,
(a) the exercise of any governmental power with respect to such Leased Property,
whether  by legal  proceedings  or  otherwise,  by a  Condemnor  of its power of
condemnation,  (b) a  voluntary  sale or  transfer  of such  Leased  Property by
Landlord to any Condemnor,  either under threat of  condemnation  or while legal
proceedings  for  condemnation  are  pending,  or  (c)  a  taking  or  voluntary
conveyance of all or part of such Leased Property,  or any interest therein,  or
right  accruing  thereto or use thereof,  as the result or in  settlement of any
Condemnation or other eminent domain proceeding  affecting such Leased Property,
whether or not the same shall have actually been commenced.

         1.19 "Condemnor"  shall mean any public or quasi-public  authority,  or
private corporation or individual, having the power of Condemnation.
<PAGE>
                                      -6-

         1.20 "Consolidated Financials" shall mean, for any Fiscal Year or other
accounting period of Tenant,  annual audited and quarterly  unaudited  financial
statements  of  Host  prepared  on  a  consolidated   basis,   including  Host's
consolidated  balance sheet and the related statements of income and cash flows,
all  in  reasonable   detail,   and  setting  forth  in  comparative   form  the
corresponding figures for the corresponding period in the preceding Fiscal Year,
and prepared in accordance with GAAP throughout the periods reflected.

         1.21 "Date of Taking" shall mean, with respect to any Leased  Property,
the date the Condemnor has the right to possession of such Leased  Property,  or
any portion thereof, in connection with a Condemnation.

         1.22 "Default"  shall mean any event or condition which with the giving
of notice and/or lapse of time may ripen into an Event of Default.

         1.23  "Distribution"  shall mean (a) any  declaration or payment of any
dividend  (except  dividends  payable  in equity  interests  in Tenant) on or in
respect  of any  equity  interests  in  Tenant,  (b) any  purchase,  redemption,
retirement or other  acquisition of any equity  interests in an Entity,  (c) any
other distribution on or in respect of any equity interests in an Entity, or (d)
any return of capital to equity interest holders.

         1.24  "Encumbrance"  shall have the meaning  given such term in Section
20.1.

         1.25  "Entity"   shall  mean  any   corporation,   general  or  limited
partnership,   limited  liability  company  or  partnership,  stock  company  or
association,  joint venture,  association,  company, trust, bank, trust company,
land trust, business trust,  cooperative,  any government or agency or political
subdivision thereof or any other entity.

         1.26  "Environment"  shall mean soil,  surface  waters,  ground waters,
land, stream, sediments, surface or subsurface strata and ambient air.
<PAGE>
                                      -7-

         1.27 "Environmental  Obligation" shall have the meaning given such term
in Section 4.3.1.

         1.28  "Environmental  Notice" shall have the meaning given such term in
Section 4.3.1.

         1.29  "Event of  Default"  shall  have the  meaning  given such term in
Section 12.1.

         1.30 "Excess Total Hotel Sales" shall mean,  with respect to any fiscal
quarter of any Lease Year, or portion  thereof,  the amount of Total Hotel Sales
for such  quarter,  or portion  thereof,  in excess of Base Hotel  Sales for the
equivalent period.

         1.31 "Extended Terms" shall have the meaning given such term in Section
2.4.

         1.32  "FF&E  Reserve"  shall  have the  meaning  given such term in the
Management Agreements.

         1.33 "Financial Officer's  Certificate" shall mean, as to any Person, a
certificate of the chief financial officer or chief accounting  officer (or such
officers' authorized designee) of such Person, duly authorized, accompanying the
financial statements required to be delivered by such Person pursuant to Section
17.2,  in which such officer shall  certify (a) that such  statements  have been
properly prepared in accordance with GAAP and are true,  correct and complete in
all material respects and fairly present the consolidated financial condition of
such  Person at and as of the dates  thereof  and the  results  of its and their
operations for the periods  covered  thereby,  and (b) certify that such officer
has  reviewed  this  Agreement  and has no  knowledge of any Default or Event of
Default hereunder.

         1.34  "Financials"  shall mean, for any Fiscal Year or other accounting
period of Tenant, annual audited and quarterly unaudited financial statements of
Tenant prepared on a consolidated basis, including Tenant's consolidated balance
sheet and the related  statements  of income and cash flows,  all in  reasonable
detail, and setting forth in comparative form the corresponding  figures for the
corresponding  period in the
<PAGE>
                                      -8-

preceding  Fiscal Year,  and prepared in  accordance  with GAAP  throughout  the
periods reflected.

         1.35  "Fiscal  Year"  shall  have the  meaning  given  such term in the
Management Agreements.

         1.36 "Fixed  Term"  shall have the  meaning  given such term in Section
2.3.

         1.37  "Fixtures"  shall  have the  meaning  given  such term in Section
2.1(d).

         1.38  "GAAP"  shall  mean  generally  accepted  accounting   principles
consistently applied.

         1.39  "Government  Agencies" shall mean any court,  agency,  authority,
board (including,  without limitation,  environmental  protection,  planning and
zoning), bureau, commission, department, office or instrumentality of any nature
whatsoever of any governmental or  quasi-governmental  unit of the United States
or the State or any county or any political subdivision of any of the foregoing,
whether now or hereafter in existence,  having  jurisdiction  over Tenant or the
Collective  Leased  Properties  or any  portion  thereof  or any Hotel  operated
thereon.

         1.40 "Ground  Lease" shall mean,  with respect to any Leased  Property,
any ground lease affecting such Leased Property.

         1.41  "Hazardous Substances" shall mean any substance:

                  (a) the presence of which  requires or may  hereafter  require
         notification,  investigation or remediation under any federal, state or
         local statute, regulation, rule, ordinance, order, action or policy; or

                  (b)  which  is or  becomes  defined  as a  "hazardous  waste",
         "hazardous  material"  or  "hazardous   substance"  or  "pollutant"  or
         "contaminant"  under  any  present  or future  federal,  state or local
         statute, regulation, rule or ordinance or amendments thereto including,
         without   limitation,   the   Comprehensive   Environmental   Response,
         Compensation  and  Liability  Act (42 U.S.C.  et seq.) and the
<PAGE>
                                      -9-

         Resource Conservation and Recovery Act (42 U.S.C. section 6901 et seq.)
         and the regulations promulgated thereunder; or

                  (c)  which  is   toxic,   explosive,   corrosive,   flammable,
         infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous
         and is or becomes  regulated  by any  governmental  authority,  agency,
         department,  commission, board, agency or instrumentality of the United
         States,  any state of the United States,  or any political  subdivision
         thereof; or

                  (d) the  presence  of which on any Leased  Property  causes or
         materially  threatens  to cause an unlawful  nuisance  upon such Leased
         Property or to adjacent properties or poses or materially  threatens to
         pose a hazard to such  Leased  Property  or to the  health or safety of
         persons on or about the Leased Property; or

                  (e) without limitation,  which contains gasoline,  diesel fuel
         or other petroleum hydrocarbons or volatile organic compounds; or

                  (f)  without   limitation,   which  contains   polychlorinated
         biphenyls (PCBs) or asbestos or urea formaldehyde foam insulation; or

                  (g) without  limitation,  which contains or emits  radioactive
         particles, waves or material; or

                  (h) without limitation, constitutes materials which are now or
         may hereafter be subject to regulation  pursuant to the Material  Waste
         Tracking  Act  of  1988,  or any  Applicable  Laws  promulgated  by any
         Government Agencies.

         1.42  "Host"  shall  mean  Host  Marriott,  L.P.,  a  Delaware  limited
partnership.

         1.43  "Hotel"  shall mean,  with  respect to any Leased  Property,  the
Marriott Courtyard Hotel being operated on such Leased Property.
<PAGE>
                                      -10-

         1.44 "Hotel  Mortgage" shall mean, with respect to any Leased Property,
any Encumbrance placed upon such Leased Property in accordance with Article 20.

         1.45 "Hotel Mortgagee" shall mean the holder of any Hotel Mortgage.

         1.46  "Immediate  Family" shall mean,  with respect to any  individual,
such  individual's  spouse,  parents,  brothers,  sisters,  children (natural or
adopted),    stepchildren,    grandchildren,    grandparents,    parents-in-law,
brothers-in-law, sisters-in-law, nephews and nieces.

         1.47  "Impositions"  shall  mean  collectively,  all taxes  (including,
without limitation,  all taxes imposed under the laws of any State, as such laws
may be amended  from time to time,  and 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  Landlord,  Tenant or the business  conducted
upon  the  Collective  Leased  Properties),   assessments  (including,   without
limitation,  all assessments for public improvements or benefit,  whether or not
commenced or completed  prior to the date hereof),  water,  sewer or other rents
and charges, excises, tax levies, fees (including, without limitation,  license,
permit, 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 Collective  Leased
Properties  or the  business  conducted  thereon  (including  all  interest  and
penalties  thereon due to any  failure in payment by Tenant),  which at any time
prior to,  during or in respect of the Term hereof may be assessed or imposed on
or in  respect  of or be a lien  upon  (a)  Landlord's  interest  in any  Leased
Property,  (b) the Collective  Leased Properties 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 any Leased  Property  or the  leasing or use of the  Collective
Leased Properties or any part thereof by Tenant; provided, however, that nothing
contained  herein shall be construed to require  Tenant to pay (i) any tax based
on net income imposed on Landlord,  (ii) any net revenue tax of Landlord,  (iii)
any  transfer  fee or other tax imposed  with
<PAGE>
                                      -11-

respect to the sale,  exchange  or other  disposition  by Landlord of any Leased
Property  or the  proceeds  thereof  (other  than in  connection  with the sale,
exchange or other disposition to, or in connection with a transaction involving,
Tenant),  (iv) any single business,  gross receipts tax (other than a tax on any
rent  received by Landlord  from Tenant  unless such gross  receipts tax on such
rent is in lieu of any other tax, assessment,  levy or charge otherwise excluded
from this definition of  Impositions),  transaction  privilege,  rent or similar
taxes as the same relate to or are imposed upon  Landlord,  except to the extent
that any tax,  assessment,  tax levy or  charge  which is in  effect at any time
during the Term hereof is totally or partially repealed,  and a tax, assessment,
tax levy or charge set forth in clause (i) or (ii) preceding is levied, assessed
or imposed  expressly in lieu thereof,  (v) any interest or penalties imposed on
Landlord  as a result of the  failure of  Landlord  to file any return or report
timely and in the form prescribed by law or to pay any tax or imposition, except
to the extent such failure is a result of a breach by Tenant of its  obligations
pursuant to Section 3.1.3,  (vi) any Impositions  imposed on Landlord that are a
result of Landlord not being  considered a "United  States person" as defined in
Section  7701(a)(30)  of the Code,  (vii) any  Impositions  that are  enacted or
adopted by their express  terms as a substitute  for any tax that would not have
been payable by Tenant  pursuant to the terms of this  Agreement,  or (viii) any
Impositions  imposed as a result of a breach of  covenant or  representation  by
Landlord in any  agreement  governing  Landlord's  conduct or  operation or as a
result of the gross negligence or willful misconduct of Landlord.

         1.48 "Incidental  Documents" shall mean,  collectively,  the Membership
Pledge, the Subtenant Pledge, the Subtenant Note Pledge, the Pledge and Security
Agreement, the Sublease Consent Agreement and the Cash Management Agreement.

         1.49   "Indebtedness"   shall  mean  all  obligations,   contingent  or
otherwise,  which in  accordance  with GAAP should be reflected on the obligor's
balance sheet as liabilities.

         1.50  "Initial  Leases"  shall have the meaning  given such term in the
preambles to this Agreement.
<PAGE>
                                      -12-

         1.51  "Insurance  Requirements"  shall mean all terms of any  insurance
policy required by this Agreement and all requirements of the issuer of any such
policy and all orders,  rules and regulations and any other  requirements of the
National  Board of Fire  Underwriters  (or any  other  body  exercising  similar
functions)  binding  upon  Landlord,  Tenant  or any of  the  Collective  Leased
Properties.

         1.52  "Interest Rate" shall mean ten percent (10%) per annum.

         1.53 "Land" shall have the meaning given such term in Section 2.1(a).

         1.54 "Landlord" shall have the meaning given such term in the preambles
to this Agreement.

         1.55  "Landlord  Liens"  shall mean liens on or against the  Collective
Leased  Properties  or any payment of Rent (a) which  result from any act of, or
any claim against, Landlord or any owner of a direct or indirect interest in any
Leased  Property  (other than any lessor under a Ground Lease),  or which result
from any  violation  by Landlord of any terms of this  Agreement or the Purchase
Agreement,  or (b) which  result from liens in favor of any taxing  authority by
reason of any tax owed by  Landlord  or any fee  owner of a direct  or  indirect
interest in any Leased  Property  (other than any lessor under a Ground  Lease);
provided,  however,  that  "Landlord  Lien" shall not include any lien resulting
from any tax for which Tenant is obligated to pay or indemnify  Landlord against
until such time as Tenant  shall have  already  paid to or on behalf of Landlord
the tax or the required indemnity with respect to the same.

         1.56  "Lease  Year"  shall  mean any Fiscal  Year or  portion  thereof,
commencing with the 1995 Fiscal Year, during the Term.

         1.57 "Leased  Improvements"  shall have the meaning  given such term in
Section 2.1(b).

         1.58  "Leased  Intangible  Property"  shall mean,  with  respect to any
Leased  Property,  all hotel licensing  agreements and other service  contracts,
equipment  leases,  booking  agreements  and other
<PAGE>
                                      -13-

arrangements  or  agreements  affecting  the  ownership,   repair,  maintenance,
management,  leasing or operation of such Leased Property to which Landlord is a
party;  all books,  records  and files  relating  to the  leasing,  maintenance,
management  or operation  of such Leased  Property  belonging  to Landlord;  all
transferable  or  assignable  permits,  certificates  of  occupancy,   operating
permits, sign permits, development rights and approvals, certificates, licenses,
warranties  and  guarantees,  rights to deposits,  trade names,  service  marks,
telephone exchange numbers  identified with such Leased Property,  and all other
transferable intangible property,  miscellaneous rights, benefits and privileges
of any kind or  character  belonging  to  Landlord  with  respect to such Leased
Property.

         1.59 "Leased Personal  Property" shall have the meaning given such term
in Section 2.1(e).

         1.60  "Leased  Property"  shall mean any one of the  Collective  Leased
Properties.

         1.61  "Legal  Requirements"  shall  mean,  with  respect  to any Leased
Property, all federal, state, county, municipal and other governmental statutes,
laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions
affecting such Leased Property or the maintenance,  construction,  alteration or
operation thereof, whether now or hereafter enacted or in existence,  including,
without limitation, (a) all permits, licenses, authorizations,  certificates and
regulations necessary to operate such Leased Property for its Permitted Use, and
(b) all covenants,  agreements,  restrictions and encumbrances  contained in any
instruments at any time in force affecting such Leased Property, including those
which may (i) require  material  repairs,  modifications or alterations in or to
such Leased Property or (ii) in any way materially and adversely  affect the use
and enjoyment  thereof,  but excluding any  requirements  arising as a result of
Landlord's status as a real estate investment trust.

         1.62  "Lending  Institution"  shall  mean any United  States  insurance
company,   federally  insured  commercial  or  savings  bank,  national  banking
association,  United States savings and loan  association,  employees'  welfare,
pension or retirement fund or
<PAGE>
                                      -14-

system,  corporate  profit sharing or pension trust,  college or university,  or
real estate investment trust,  including any corporation qualified to be treated
for federal tax purposes as a real estate  investment trust, such trust having a
net worth of at least $100,000,000.

         1.63  "Lien"  shall  mean  any  mortgage,  security  interest,  pledge,
collateral assignment, or other encumbrance,  lien or charge of any kind, or any
transfer of property  or assets for the  purpose of  subjecting  the same to the
payment of  Indebtedness  or performance of any other  obligation in priority to
payment of its general creditors.

         1.64 "Management  Agreements" shall mean collectively,  with respect to
the Collective Leased  Properties,  or individually,  with respect to any Leased
Property,  the Management  Agreement,  between HMH HPT  Courtyard,  Inc. and the
Manager, for such Leased Property,  together with all amendments,  modifications
and supplements thereto.

         1.65 "Manager" shall mean Courtyard Management Corporation,  a Delaware
corporation.

         1.66 "Membership  Pledge" shall mean the Membership Interest Pledge and
Security  Agreement,  dated the date  hereof,  made by Host for the  benefit  of
Landlord.

         1.67  "Minimum  Rent" shall mean the annual amount of Fifty Million Six
Hundred  Forty-Six  Thousand  Three  Hundred  Seventy-Nine  and  no/100  Dollars
($50,646,379) as allocated per Accounting  Period, as adjusted from time to time
pursuant to Section 3.1.1, which amount is allocated among the Collective Leased
Properties as set forth on Exhibit A.

         1.68  "Notice"  shall mean a notice  given in  accordance  with Section
22.10.

         1.69  "Officer's  Certificate"  shall mean a  certificate  signed by an
officer of the  certifying  Entity duly  authorized by the board of directors of
the certifying Entity.
<PAGE>
                                      -15-

         1.70  "Overdue  Rate"  shall  mean,  on any date,  a per annum  rate of
interest equal to the lesser of fifteen  percent (15%) and the maximum rate then
permitted under applicable law.

         1.71 "Parent" shall mean, with respect to any Person,  any Person which
owns  directly,  or indirectly  through one or more  Subsidiaries  or Affiliated
Persons,  five percent (5%) or more of the voting or beneficial  interest in, or
otherwise  has the right or power  (whether by  contract,  through  ownership of
securities or otherwise) to control, such Person.

         1.72  "Permitted  Encumbrances"  shall mean, with respect to any Leased
Property,  all  rights,  restrictions,  and  easements  of  record  set forth on
Schedule B to the applicable  owner's or leasehold title insurance policy issued
to Landlord in connection with Landlord's  acquisition of such Leased  Property,
plus any other such  encumbrances  as may have been  consented  to in writing by
Landlord from time to time.

         1.73 "Permitted  Liens" shall mean any Liens granted in accordance with
Section 21.9(a).

         1.74 "Permitted  Use" shall mean, with respect to any Leased  Property,
any use of such Leased Property permitted pursuant to Section 4.1.1(a) or (b).

         1.75  "Person"  shall mean any  individual  or  Entity,  and the heirs,
executors, administrators, legal representatives, successors and assigns of such
Person where the context so admits.

         1.76 "Pledge and Security  Agreement"  shall mean,  with respect to any
Leased  Property,  the  Security  Agreement  made by Tenant  for the  benefit of
Landlord, as amended from time to time.

         1.77  "Purchase  Agreement"  shall  mean the  Purchase-Sale  and Option
Agreement,  dated as of February 3, 1995, by and between Hospitality  Properties
Trust and HMH Properties, Inc., as amended.

         1.78 "Records" shall have the meaning given such term in Section 7.2.
<PAGE>
                                      -16-

         1.79 "Rent" shall mean, collectively, the Minimum Rent, Additional Rent
and Additional Charges.

         1.80 "Request Notice" shall have the meaning given such term in Section
16.1.

         1.81  "Response  Notice"  shall  mean the  meaning  given  such term in
Section 16.1.

         1.82  "SEC" shall mean the Securities and Exchange Commission.

         1.83 "State" shall mean, with respect to any Leased Property, the state
or commonwealth or district in which such Leased Property is located.

         1.84 "Sublease  Consent  Agreement"  shall mean the Consent to Sublease
and Agreement,  dated as of the date hereof,  by and among Landlord,  Tenant and
CCMH Courtyard I LLC.

         1.85  "Subordination  Agreement" shall mean any agreement executed by a
Subordinated  Creditor pursuant to which the payment and performance of Tenant's
obligations to such  Subordinated  Creditor are  subordinated to the payment and
performance of Tenant's obligations to Landlord under this Agreement.

         1.86  "Subsidiary"  shall mean, with respect to any Person,  any Entity
(a) in which such  Person  owns  directly,  or  indirectly  through  one or more
Subsidiaries,  fifty-one  percent  (51%)  or more of the  voting  or  beneficial
interest  or (b) which such Person  otherwise  has the right or power to control
(whether by contract, through ownership of securities or otherwise).

         1.87 "Subtenant  Pledge" shall mean the Membership  Interest Pledge and
Security Agreement,  dated the date hereof made by Crestline Capital Corporation
for the benefit of Landlord.

         1.88  "Subtenant  Note  Pledge"  shall  mean the  Pledge  and  Security
Agreement Demand Note, dated the date hereof,  made by CCMH Courtyard I LLC, for
the benefit of Landlord.
<PAGE>
                                      -17-

         1.89  "Successor  Landlord"  shall have the meaning  given such term in
Section 20.2.

         1.90  "Tangible  Net Worth"  shall mean the excess of total assets over
total  liabilities,  total assets and total liabilities each to be determined in
accordance with GAAP,  excluding,  however,  (i) from the determination of total
assets:  (a)  goodwill,   organizational  expenses,   research  and  development
expenses,  trademarks,  trade names,  copyrights,  patents, patent applications,
licenses  and rights in any  thereof,  and other  similar  intangibles;  (b) all
deferred  charges or  unamortized  debt  discount and expense;  (c) all reserves
carried and not deducted  from assets;  (d)  treasury  stock and capital  stock,
obligations or other securities of, or capital  contributions to, or investments
in, any Subsidiary;  (e) securities  which are not readily  marketable;  (f) any
write-up in the book value of any asset  resulting  from a  revaluation  thereof
subsequent to the  Commencement  Date; and (g) any items not included in clauses
(a) through (f) above that are treated as intangibles  in conformity  with GAAP,
and (ii) from the determination of total liabilities: deferred gain.

         1.91  "Tenant"  shall have the meaning given such term in the preambles
to this Agreement.

         1.92  "Tenant's  Personal  Property"  shall mean all motor vehicles and
consumable  inventory and supplies,  furniture,  furnishings,  movable walls and
partitions,  equipment and machinery and all other personal  property of Tenant,
if any,  acquired  by Tenant on and after the date  hereof  and  located  at the
Collective  Leased  Properties  or used in Tenant's  business at the  Collective
Leased Properties and all modifications, replacements, alterations and additions
to such  personal  property  installed at the expense of Tenant,  other than any
items included within the definition of Fixtures or Leased Personal Property.

         1.93 "Term" shall mean,  collectively,  the Fixed Term and the Extended
Terms,  to the extent properly  exercised  pursuant to the provisions of Section
2.4, unless sooner terminated pursuant to the provisions of this Agreement.
<PAGE>
                                      -18-

         1.94  "Total  Hotel  Sales"  shall  mean,  with  respect  to any Leased
Property,  "Gross  Revenues"  as defined in the  Management  Agreement  for such
Leased Property.

         1.95  "Uniform  System of  Accounts"  shall  mean A  Uniform  System of
Accounts for Hotels,  Eighth  Revised  Edition,  1986, as published by the Hotel
Association  of New York City,  as the same may be further  revised from time to
time.

         1.96 "Unsuitable for Its Permitted Use" shall mean, with respect to any
Hotel,  a state or condition of such Hotel such that (a) following any damage or
destruction  involving  such  Hotel,  such Hotel  cannot be operated in the good
faith judgment of Tenant or the Manager on a commercially  practicable basis for
its  Permitted  Use and it cannot  reasonably  be  expected  to be  restored  to
substantially  the same condition as existed  immediately  before such damage or
destruction,  and as otherwise required by Section 10.2.4, within six (6) months
following  such damage or destruction or such shorter period of time as to which
business  interruption  insurance  is  available  to cover Rent and other  costs
related to the Leased  Property  on which such Hotel is located  following  such
damage or destruction, or (b) as the result of a partial taking by Condemnation,
such  Hotel  cannot be  operated,  in the good faith  judgment  of Tenant or the
Manager on a commercially practicable basis for its Permitted Use.

         1.97 "Work" shall have the meaning given such term in Section 10.2.4.

                                    ARTICLE 2

                      COLLECTIVE LEASED PROPERTIES AND TERM

         2.1  Collective  Leased  Properties.  Upon and subject to the terms and
conditions  hereinafter  set forth,  Landlord leases to Tenant and Tenant leases
from Landlord all of Landlord's  right,  title and interest in and to all of the
following (collectively, the "Collective Leased Properties"):
<PAGE>
                                      -19-

                  (a) those certain tracts,  pieces and parcels of land, as more
         particularly  described in Exhibit  B-1-53,  attached hereto and made a
         part hereof (collectively, 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 off-site),
         parking areas and roadways appurtenant to such buildings and structures
         presently   situated   upon  the  Land   (collectively,   the   "Leased
         Improvements");

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

                  (d) all  equipment,  machinery,  fixtures,  and other items of
         property,  now or hereafter permanently affixed to or incorporated into
         the Leased 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 maximum extent permitted by law, are hereby deemed
         by the parties  hereto to  constitute  real estate,  together  with all
         replacements,  modifications,  alterations and additions  thereto,  but
         specifically  excluding  all items  included  within  the  category  of
         Tenant's Personal Property (collectively, the "Fixtures");

                  (e) all machinery, equipment, furniture, furnishings, moveable
         walls or  partitions,  computers  or trade  fixtures or other  personal
         property of any kind or description used or useful in Tenant's business
         on or in the  Leased  Improvements,  and  located  on or in the  Leased
         Improvements,  and all  modifications,  replacements,  alterations  and
         additions to such personal  property,  except items,  if any,  included
         within the category of Fixtures,  but specifically  excluding all items
         included   within  the   category   of   Tenant's   Personal   Property
         (collectively, the "Leased Personal Property");
<PAGE>
                                      -20-

                  (f)  all of the Leased Intangible Property; and

                  (g)  any and all  leases  of  space  (including  any  security
         deposits held by Tenant or the Manager pursuant  thereto) in the Leased
         Improvements to tenants thereof.

         2.2  Condition of Collective  Leased  Properties.  Tenant  acknowledges
receipt and delivery of  possession  of the  Collective  Leased  Properties  and
Tenant  accepts the  Collective  Leased  Properties in their "as is"  condition,
subject to the rights of parties in  possession,  the  existing  state of title,
including all covenants, conditions, restrictions, reservations, mineral leases,
easements  and other  matters of record or that are  visible or  apparent on the
Collective Leased Properties, all applicable Legal Requirements, the lien of any
financing  instruments,  mortgages  and  deeds  of trust  existing  prior to the
Commencement  Date or permitted by the terms of this  Agreement,  and such other
matters  which would be  disclosed by an  inspection  of the  Collective  Leased
Properties and the record title thereto or by an accurate survey thereof. TENANT
REPRESENTS THAT IT HAS INSPECTED THE COLLECTIVE LEASED PROPERTIES AND ALL OF THE
FOREGOING AND HAS FOUND THE CONDITION THEREOF SATISFACTORY AND IS NOT RELYING ON
ANY  REPRESENTATION  OR WARRANTY OF LANDLORD OR  LANDLORD'S  AGENTS OR EMPLOYEES
WITH RESPECT  THERETO AND TENANT WAIVES ANY CLAIM OR ACTION AGAINST  LANDLORD IN
RESPECT OF THE CONDITION OF THE COLLECTIVE LEASED PROPERTIES.  LANDLORD MAKES NO
WARRANTY OR  REPRESENTATION,  EXPRESS OR IMPLIED,  IN RESPECT OF THE  COLLECTIVE
LEASED PROPERTIES 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 TENANT.  To the maximum  extent  permitted  by
law,  however,  Landlord  hereby  assigns to Tenant all of Landlord's  rights to
proceed  against  any  predecessor  in  title  for  breaches  of  warranties  or
representations  or for latent  defects  in the  Collective  Leased  Properties.
Landlord  shall  fully  cooperate  with  Tenant in the  prosecution  of any such
claims,  in Landlord's or Tenant's  name, all at Tenant's sole cost and expense.
Tenant shall indemnify,  defend, and hold harmless Landlord from and against any
loss, cost, damage or liability (including  reasonable attorneys' fees) incurred
by Landlord in connection with such cooperation.
<PAGE>
                                      -21-

         2.3 Fixed Term.  The initial term of this  Agreement (the "Fixed Term")
commenced on the Commencement Date and shall expire December 31, 2012.

         2.4  Extended  Term.  Provided  that no Event  of  Default  shall  have
occurred and be continuing,  this  Agreement  shall be in full force and effect,
the Term shall be automatically extended for three (3) consecutive renewal terms
of twelve (12) years each  (collectively,  the "Extended Terms"),  unless Tenant
shall give Landlord Notice,  not later than two (2) years prior to the scheduled
expiration of the then current Term of this Agreement (Fixed or Extended, as the
case may be),  that  Tenant  elects not so to extend the term of this  Agreement
(and time shall be of the essence with respect to the giving of such Notice).

         Each Extended Term shall  commence on the day succeeding the expiration
of the Fixed Term or the preceding Extended Term, as the case may be. All of the
terms,  covenants  and  provisions  of this  Agreement  shall apply to each such
Extended Term,  except that Tenant shall have no right to extend the Term beyond
the expiration of the Extended Terms. If Tenant shall give Notice that it elects
not to extend the Term in accordance with this Section 2.4, this Agreement shall
automatically  terminate  at the end of the Term then in effect and Tenant shall
have no further  option to extend  the Term of this  Agreement.  Otherwise,  the
extension  of  this  Agreement  shall  be  automatically  effected  without  the
execution of any additional documents;  it being understood and agreed, however,
that Tenant and Landlord  shall execute such  documents and agreements as either
party shall reasonably require to evidence the same.

         2.5 Ground Lease Extensions. Notwithstanding the foregoing, if Landlord
has the right,  under the  provisions of any Ground Lease,  to elect to renew or
extend the term of such Ground Lease,  Tenant shall so notify  Landlord at least
one  hundred  eighty  (180)  days (but no more  than one (1) year)  prior to the
expiration  of the period  within  which  Landlord  is  obligated  to notify the
landlord  under such Ground Lease of its election to renew or extend the term of
such Ground  Lease.  Such notice from Tenant  shall  contain all of the relevant
facts about the impending  election to renew or extend,  including the length of
the period of renewal or extension,  and shall state whether
<PAGE>
                                      -22-

Tenant  approves or  disapproves  the renewal or  extension  of the term of such
Ground Lease.

         If Tenant fails to  disapprove  the renewal or extension of the term of
such Ground  Lease and  Landlord  renews or directs  Tenant to renew the term of
such Ground Lease,  the Term of this  Agreement  with respect to the  applicable
Leased  Property shall be deemed to be  automatically  extended to the later of:
(a) the expiration of the term of such Ground Lease, as renewed or extended;  or
(ii) the date on which the Term of this Agreement  would  otherwise have expired
absent this sentence. If Tenant disapproves the renewal or extension of the term
of such Ground Lease,  the Term of this Agreement with respect to the applicable
Leased Property shall be deemed to be  automatically  reduced to the earlier of:
(i) the expiration of the term of such Ground Lease, as renewed or extended;  or
(ii) the date on which the Term of this Agreement  would  otherwise have expired
absent this sentence.

         If Tenant disapproves the renewal of such Ground Lease at any time that
there remain unexercised options to extend the term of this Agreement for any of
the  Extended  Terms,  the same shall  constitute  an  election by Tenant not to
exercise its right to extend the term of this Agreement for such Extended Terms.

         In the event of any  termination  of any Ground Lease,  this  Agreement
shall automatically terminate with respect to the applicable Leased Property.

                                    ARTICLE 3

                                      RENT

         3.1 Rent.  Tenant  shall pay, in lawful  money of the United  States of
America which shall be legal tender for the payment of public and private debts,
without  offset,  abatement,  demand or deduction  (unless  otherwise  expressly
provided in this  Agreement),  Minimum Rent and Additional  Rent to Landlord and
Additional  Charges to the party to whom such  Additional  Charges are  payable,
during the Term.  All  payments  to Landlord  shall be made by wire  transfer of
immediately  available federal funds or by other means acceptable to Landlord in
its sole discretion.
<PAGE>
                                      -23-

Rent for any partial Accounting Period shall be prorated on a per diem basis. So
long as the Cash Management  Agreement remains in effect, Rent payments shall be
made in accordance with the terms thereof.

                  3.1.1  Minimum Rent.

                  (a)  Minimum  Rent  shall  be paid  in  advance  on the  first
         Business Day of each Accounting  Period;  provided,  however,  that the
         first payment of Minimum Rent shall be payable on the Commencement Date
         (and, if applicable,  such payment shall be prorated as provided in the
         last sentence of the first paragraph of Section 3.1).

                  (b) Adjustments of Minimum Rent Following  Disbursements Under
         Sections  5.1.2(b),  10.2.4  or  11.2.  Effective  on the  date of each
         disbursement  to  pay  for  the  cost  of  any  repairs,   maintenance,
         renovations or replacements to any Leased Property pursuant to Sections
         5.1.2(b),  10.2.4 or 11.2, the Minimum Rent (and such Leased Property's
         allocable share thereof) shall be increased by a per annum amount equal
         to  ten  percent  (10%)  of  the  amount  so  disbursed.  If  any  such
         disbursement  is made during any Accounting  Period on a day other than
         the first day of a Accounting  Period,  Tenant shall pay to Landlord on
         the  first  day of the  immediately  following  Accounting  Period  (in
         addition to the amount of Minimum  Rent  payable  with  respect to such
         Accounting  Period,  as adjusted  pursuant to this  paragraph  (b)) the
         amount by which Minimum Rent for the preceding  Accounting  Period,  as
         adjusted for such disbursement on a per diem basis, exceeded the amount
         of Minimum Rent paid by Tenant for such preceding Accounting Period.

                  3.1.2  Additional Rent.

                  (a)  Amount.  For each  fiscal  quarter  of each Lease Year or
         portion  thereof,  Tenant shall pay an aggregate  amount of  additional
         rent ("Additional Rent") with respect to such period, in an amount, not
         less than zero,  equal to five percent (5%) of Excess Total Hotel Sales
         for such period.
<PAGE>
                                      -24-

                  (b) Quarterly  Payments.  Payments of Additional Rent for each
         fiscal  quarter  of each Lease  Year  shall be  calculated  and paid in
         arrears,  together  with an  Officer's  Certificate  setting  forth the
         calculation of Additional Rent due and payable for such quarter. Copies
         of each  Accounting  Period  Statement  (as  defined in the  Management
         Agreements)  delivered  pursuant  to  Section  5.03  of the  Management
         Agreements  shall be delivered  to Landlord  upon receipt by Tenant and
         each quarterly  payment of Additional Rent shall be due and payable and
         shall be  delivered  to Landlord  with the payment of the Minimum  Rent
         next due after receipt of such Accounting Period  Statements,  together
         with  an  Officer's   Certificate  setting  forth  the  calculation  of
         Additional Rent due and payable for such quarter.

                  (c)  Reconciliation  of Additional  Rent.  In addition,  on or
         before  April 30, of each year,  Tenant  shall  deliver to  Landlord an
         Officer's  Certificate  setting  forth  the Total  Hotel  Sales and the
         calculation of Additional Rent for the Collective Leased Properties for
         each fiscal  quarter of such  preceding  Lease Year,  together  with an
         audit of Tenant  conducted by Arthur  Andersen  LLP, or another firm of
         independent   certified  public  accountants  proposed  by  Tenant  and
         approved by Landlord (which approval shall not be unreasonably withheld
         or delayed).

                  If Additional  Rent due as shown in the Officer's  Certificate
         exceeds the amounts  previously  paid with  respect  thereto by Tenant,
         Tenant shall pay such excess to Landlord at such time as the  Officer's
         Certificate is delivered,  together with interest at the Interest Rate,
         which interest shall accrue from the close of such preceding Lease Year
         until the date that such  certificate  is required to be delivered and,
         thereafter,  such interest shall accrue at the Overdue Rate,  until the
         amount of such  difference  shall be paid or otherwise  discharged.  If
         Additional Rent due as shown in the Officer's  Certificate is less than
         the amount  previously  paid with respect  thereto by Tenant,  provided
         that no  Event  of  Default  shall  have  occurred  and be  continuing,
         Landlord  shall  grant  Tenant a credit  against  Additional  Rent next
         coming due in the amount of such difference,  together with interest at
         the Interest Rate, which interest shall accrue from the date of payment
         of
<PAGE>
                                      -25-

         Tenant  until the date such credit is applied or paid,  as the case may
         be. If such credit cannot be made because the Term has expired prior to
         application in full thereof,  provided no Event of Default has occurred
         and is  continuing,  Landlord  shall pay the unapplied  balance of such
         credit to Tenant,  together with interest at the Interest  Rate,  which
         interest shall accrue from the date of payment by Tenant until the date
         of payment by Landlord.

                  (d) Confirmation of Additional Rent. Tenant shall utilize,  or
         cause to be utilized,  an accounting  system for the Collective  Leased
         Properties in accordance with its usual and customary  practices and in
         accordance  with GAAP,  which will  accurately  record all Total  Hotel
         Sales and Tenant shall  retain,  for at least three (3) years after the
         expiration of each Lease Year,  reasonably  adequate records conforming
         to such accounting  system showing all Total Hotel Sales for such Lease
         Year.  Landlord,  at its own expense  except as  provided  hereinbelow,
         shall have the right,  exercisable  by Notice to Tenant  within one (1)
         year after  receipt of the  applicable  Officer's  Certificate,  by its
         accountants or  representatives  to audit the  information set forth in
         the Officer's Certificate referred to in subparagraph (c) above and, in
         connection  with such audits,  to examine  Tenant's  and the  Manager's
         books and records with respect thereto  (including  supporting data and
         sales and excise tax returns). If any such audit discloses a deficiency
         in the payment of  Additional  Rent,  and either Tenant agrees with the
         result  of such  audit or the  matter  is  otherwise  compromised  with
         Landlord,  Tenant  shall  forthwith  pay to Landlord  the amount of the
         deficiency, as finally agreed or determined,  together with interest at
         the Interest Rate,  from the date such payment should have been made to
         the date of payment  thereof.  If such  deficiency,  as agreed  upon or
         compromised as aforesaid,  is more than three percent (3%) of the Total
         Hotel  Sales  reported  by Tenant for such Lease Year and, as a result,
         Landlord  did not  receive at least  ninety-five  percent  (95%) of the
         Additional  Rent payable with respect to such Lease Year,  Tenant shall
         pay the  reasonable  cost of such  audit and  examination.  If any such
         audit  discloses  that Tenant paid more  Additional  Rent for any Lease
         Year than was due hereunder, and either Landlord agrees with the result
         of such audit or the matter
<PAGE>
                                      -26-

         is otherwise determined,  provided no Event of Default has occurred and
         is continuing, Landlord shall grant Tenant a credit equal to the amount
         of such  overpayment  against  Additional  Rent next  coming due in the
         amount of such  difference,  as finally agreed or determined,  together
         with interest at the Interest  Rate,  which  interest shall accrue from
         the time of payment by Tenant  until the date such credit is applied or
         paid,  as the case may be. If such a credit  cannot be made because the
         Term has expired before the credit can be applied in full,  provided no
         Event of Default has occurred and is continuing, Landlord shall pay the
         unapplied  balance of such credit to Tenant,  together with interest at
         the Interest Rate, which interest shall accrue from the date of payment
         by Tenant until the date of payment from Landlord.

                  Any proprietary  information obtained by Landlord with respect
         to Tenant or the Manager  pursuant to the  provisions of this Agreement
         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  Landlord may
         disclose such  information to its  prospective  lenders,  provided that
         Landlord  shall  direct  and obtain the  agreement  of such  lenders to
         maintain such  information as  confidential.  The obligations of Tenant
         and  Landlord  contained  in  this  Section  3.1.2  shall  survive  the
         expiration or earlier termination of this Agreement.

                  3.1.3 Additional  Charges. In addition to the Minimum Rent and
Additional Rent payable hereunder,  Tenant shall pay to the appropriate  parties
and  discharge  as  and  when  due  and  payable  the  following  (collectively,
"Additional Charges"):

                  (a)  Impositions.  Subject to Article 8 relating to  permitted
         contests, Tenant shall pay, or cause to be paid, all Impositions before
         any fine, penalty, interest or cost (other than any opportunity cost as
         a result of a  failure  to take  advantage  of any  discount  for early
         payment)  may be  added  for  non-payment,  such  payments  to be  made
         directly to the taxing authorities where feasible,  and shall promptly,
         upon request,  furnish to Landlord copies of official receipts or other
         reasonably  satisfactory  proof  evidencing
<PAGE>
                                      -27-

         such  payments.  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),  Tenant 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 as the same become due and
         before any fine,  penalty,  premium,  further  interest  or cost may be
         added thereto.  Landlord, at its expense, shall, to the extent required
         or permitted by  Applicable  Law,  prepare and file all tax returns and
         pay all taxes due in respect of Landlord's net income,  gross receipts,
         sales  and  use,  single  business,  transaction  privilege,  rent,  ad
         valorem, franchise taxes and taxes on its capital stock, and Tenant, 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 Government
         Agencies.  Provided  no Event of  Default  shall have  occurred  and be
         continuing,  if any refund  shall be due from any taxing  authority  in
         respect of any Imposition  paid by Tenant,  the same shall be paid over
         to or retained by Tenant.  Landlord and Tenant  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 Collective Leased Properties as may
         be necessary to prepare any required returns and reports.  In the event
         Government  Agencies classify any property covered by this Agreement as
         personal property,  Tenant shall file all personal property tax returns
         in such  jurisdictions  where it may legally so file. Each party shall,
         to the extent it possesses the same,  provide the other,  upon request,
         with cost and depreciation records necessary for filing returns for any
         property so classified as personal property.  Where Landlord is legally
         required to file personal  property tax returns for property covered by
         this Agreement, Landlord shall provide Tenant with copies of assessment
         notices  in  sufficient  time  for  Tenant  to  file  a  protest.   All
         Impositions   assessed   against  such  personal   property   shall  be
         (irrespective  of whether  Landlord or Tenant  shall file the  relevant
         return)  paid by Tenant  not later than the last date on which the same
         may be made without interest or penalty.
<PAGE>
                                      -28-

                  Landlord shall give prompt Notice to Tenant and the Manager of
         all  Impositions  payable by Tenant  hereunder of which Landlord at any
         time has knowledge;  provided, however, that Landlord's failure to give
         any such notice shall in no way diminish Tenant's obligation  hereunder
         to pay such Impositions  (except that Landlord shall be responsible for
         any interest or penalties  incurred as a result of  Landlord's  failure
         promptly to forward the same).

                  (b) Utility Charges.  Tenant shall pay or cause to be paid all
         charges for  electricity,  power,  gas, oil, water and other  utilities
         used in connection with the Collective Leased Properties.

                  (c) Insurance  Premiums.  Tenant shall pay or cause to be paid
         all  premiums  for the  insurance  coverage  required to be  maintained
         pursuant to Article 9.

                  (d) Other  Charges.  Tenant  shall pay or cause to be paid all
         other  amounts,   liabilities  and  obligations,   including,   without
         limitation,  ground rents and other sums payable under any Ground Lease
         and all  amounts  payable  under  or  with  respect  to the  Management
         Agreements  (except as expressly  provided in Section 5.1.2(b)) and any
         equipment  leases  and  all  agreements  to  indemnify  Landlord  under
         Sections 4.3.2 and 9.7.

                  (e)  Reimbursement for Additional  Charges.  If Tenant pays or
         causes to be paid property taxes or similar or other Additional Charges
         attributable  to  periods  after  the  end of the  Term,  whether  upon
         expiration  or  sooner   termination  of  this  Agreement  (other  than
         termination  by reason of an Event of  Default),  Tenant may,  within a
         reasonable  time after the end of the Term,  provide Notice to Landlord
         of its estimate of such  amounts.  Landlord  shall  promptly  reimburse
         Tenant  for all  payments  of such taxes and other  similar  Additional
         Charges  that are  attributable  to any  period  after the Term of this
         Agreement  (unless this Agreement shall have been terminated  following
         an Event of Default).

         3.2 Late  Payment of Rent,  Etc. If any  installment  of Minimum  Rent,
Additional Rent or Additional  Charges (but only as
<PAGE>
                                      -29-

to those Additional Charges which are payable directly to Landlord) shall not be
paid  within ten (10) days after its due date,  Tenant  shall pay  Landlord,  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
Tenant pays any Additional  Charges  directly to Landlord or any Hotel Mortgagee
pursuant to any requirement of this  Agreement,  Tenant shall be relieved of its
obligation  to pay such  Additional  Charges  to the  Entity to which they would
otherwise be due. If any payments due from  Landlord to Tenant shall not be paid
within  ten (10) days  after  its due date,  Landlord  shall pay to  Tenant,  on
demand,  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.

         In the event of any  failure  by Tenant to pay any  Additional  Charges
when due,  except as  expressly  provided  in  Section  3.1.3(a),  Tenant  shall
promptly pay and discharge, as Additional Charges, every fine, penalty, interest
and cost  which may be added for  non-payment  or late  payment  of such  items.
Landlord  shall have all legal,  equitable and  contractual  rights,  powers and
remedies  provided  either in this  Agreement  or by statute or otherwise in the
case of non-payment  of the Additional  Charges as in the case of non-payment of
the Minimum Rent and Additional Rent.

         3.3 Net Lease.  The Rent shall be  absolutely  net to  Landlord so that
this Agreement  shall yield to Landlord the full amount of the  installments  or
amounts of the Rent throughout the Term, subject to any other provisions of this
Agreement  which expressly  provide  otherwise,  including those  provisions for
adjustment or abatement of such Rent.

         3.4 No Termination,  Abatement,  Etc. Except as otherwise  specifically
provided in this Agreement,  each of Landlord and Tenant,  to the maximum extent
permitted by law,  shall remain bound by this  Agreement in accordance  with its
terms and shall not take any action  without the consent of the other to modify,
surrender  or  terminate  this  Agreement.  In  addition,  except  as  otherwise
expressly provided in this Agreement,  Tenant shall not seek, or be entitled to,
any abatement, deduction, deferment or

<PAGE>
                                      -30-

reduction of the Rent,  or set-off  against the Rent,  nor shall the  respective
obligations  of Landlord and Tenant be  otherwise  affected by reason of (a) any
damage to or  destruction  of the  Collective  Leased  Properties or any portion
thereof  from  whatever  cause or any  Condemnation,  (b) the lawful or unlawful
prohibition  of, or  restriction  upon,  Tenant's use of the  Collective  Leased
Properties,  or any portion thereof,  or the  interference  with such use by any
Person or by reason of eviction by paramount  title;  (c) any claim which Tenant
may have  against  Landlord  by reason of any  default  (other  than a  monetary
default) or breach of any warranty by Landlord under this Agreement or any other
agreement  between  Landlord  and Tenant,  or to which  Landlord  and Tenant are
parties;   (d)  any   bankruptcy,   insolvency,   reorganization,   composition,
readjustment,   liquidation,   dissolution,  winding  up  or  other  proceedings
affecting  Landlord or any assignee or  transferee  of Landlord;  or (e) for any
other cause whether similar or dissimilar to any of the foregoing  (other than a
monetary default by Landlord);  provided,  however, that the foregoing shall not
apply or be  construed  to restrict  Tenant's  rights in the event of any act or
omission by Landlord constituting gross negligence or willful misconduct. Except
as otherwise  specifically provided in this Agreement,  Tenant hereby waives all
rights  arising from any  occurrence  whatsoever,  which may now or hereafter be
conferred  upon it by law, to (a) modify,  surrender or terminate this Agreement
or quit or surrender the Collective Leased Properties or any portion thereof, or
(b) entitle Tenant to any abatement,  reduction,  suspension or deferment of the
Rent or other  sums  payable  or other  obligations  to be  performed  by Tenant
hereunder.  The  obligations  of each  party  hereunder  shall be  separate  and
independent covenants and agreements, and the Rent and all other sums payable by
Tenant  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 Agreement.  In any instance where, after the occurrence of an
Event of Default,  Landlord  retains funds which, but for the occurrence of such
Event of Default,  would be payable to Tenant,  Landlord shall refund such funds
to Tenant to the extent the  amount  thereof  exceeds  the amount  necessary  to
compensate  Landlord for any cost,  loss or damage  incurred in connection  with
such Event of Default.

         3.5 Security for Tenant's  Performance.  Tenant  acknowledges  that the
Retained Funds (as defined in the Purchase  Agreement)
<PAGE>
                                      -31-

constitute security for the faithful observance and performance by Tenant of all
the terms,  covenants and  conditions of this Agreement by Tenant to be observed
and performed.  If any Event of Default shall occur and be continuing,  Landlord
may, at its option and without  prejudice to any other remedy which Landlord may
have on account thereof, appropriate and apply the entire amount of the Retained
Funds or so much thereof as may be necessary to compensate  Landlord  toward the
payment of the Rent or other sums or loss or damage sustained by Landlord due to
such  breach by  Tenant.  It is  understood  and  agreed  that the amount of the
Retained  Funds is not to be considered  as prepaid  rent,  nor shall damages be
limited  to the  amount  of the  amount of the  Retained  Funds.  Provided  this
Agreement  shall  not be  terminated  as a result  of an Event of  Default,  the
Retained Funds shall be paid as provided in the Purchase Agreement.

                                    ARTICLE 4

                  USE OF THE COLLECTIVE LEASED PROPERTIES, ETC.

         4.1  Permitted Use.

                  4.1.1  Permitted Use.

                  (a) Except as otherwise provided in the Management Agreements,
         Tenant  shall,  at all times during the Term and at any other time that
         Tenant shall be in  possession  of the  Collective  Leased  Properties,
         continuously use and operate, and cause the Manager to use and operate,
         each of the Collective Leased Properties as a Marriott  Courtyard hotel
         and any uses incidental thereto.  Subject to Section 16.3, Tenant shall
         not use (and shall  direct the Manager not to use) any Leased  Property
         or any portion  thereof  for any other use  without  the prior  written
         consent of  Landlord.  No use shall be made or  permitted to be made of
         any Leased  Property and no acts shall be done thereon which will cause
         the  cancellation of any insurance policy covering such Leased Property
         or any part thereof  (unless  another  adequate policy is available) or
         which would  constitute a default under any Ground Lease affecting such
         Leased Property,  nor shall Tenant sell or otherwise  provide or permit
         to be kept,  used or sold in or about any Leased  Property  any article

<PAGE>
                                      -32-

         which  may  be  prohibited  by  law or by the  standard  form  of  fire
         insurance  policies,  or any other  insurance  policies  required to be
         carried hereunder, or fire underwriter's regulations.  Tenant shall, at
         its sole cost  (except as  expressly  provided  in  Section  5.1.2(b)),
         comply  (or  direct  the   Manager  to  comply)   with  all   Insurance
         Requirements.   Except  as   otherwise   provided  in  the   Management
         Agreements,  Tenant  shall not take or omit to take (and  Tenant  shall
         direct the Manager not to take or omit to take) any action,  the taking
         or omission of which materially  impairs the value or the usefulness of
         any Leased Property or any part thereof for its Permitted Use.

                  (b) In the event  that,  in the  reasonable  determination  of
         Tenant,  it shall no longer be  economically  practical  to operate any
         Leased  Property  as a  Marriott  Courtyard  hotel,  Tenant  shall give
         Landlord  Notice  thereof,  which Notice shall set forth in  reasonable
         detail the reasons  therefor.  Thereafter,  Landlord  and Tenant  shall
         negotiate in good faith to agree on an alternative  use for such Leased
         Property,  appropriate  adjustments  to the  Additional  Rent and other
         related matters; provided,  however, in no such event shall the Minimum
         Rent be reduced or abated.

                  4.1.2 Necessary  Approvals.  Tenant shall proceed with all due
diligence and exercise best efforts to obtain and maintain, and shall direct the
Manager to obtain and maintain,  all approvals necessary to use and operate, for
its  Permitted  Use, each of the  Collective  Leased  Properties  and the Hotels
located thereon under applicable law.

                  4.1.3 Lawful Use, Etc.  Tenant shall not, and shall direct the
Manager  not to,  use or suffer  or permit  the use of any  Leased  Property  or
Tenant's Personal Property, if any, for any unlawful purpose.  Tenant shall not,
and shall direct the Manager not to,  commit or suffer to be committed any waste
on any Leased  Property,  or in any Hotel,  nor shall Tenant cause or permit any
unlawful  nuisance  thereon or therein.  Tenant  shall not, and shall direct the
Manager  not to,  suffer nor permit the  Collective  Leased  Properties,  or any
portion  thereof,  to be used in such a manner  as (i) might  reasonably  impair
Landlord's title thereto or to any portion thereof, or (ii) may reasonably allow
a claim or claims for adverse  usage or adverse  possession  by the  public,  as

<PAGE>
                                      -33-

such, or of implied dedication of any Leased Property or any portion thereof.

         4.2  Compliance  with  Legal/Insurance  Requirements,  Etc.  Except  as
otherwise  provided in the Management  Agreements,  subject to the provisions of
Article 8 and Section  5.1.2(b),  Tenant,  at its sole expense,  shall (or shall
direct  the  Manager  to) (i)  comply  with  Legal  Requirements  and  Insurance
Requirements in respect of the use, operation,  maintenance,  repair, alteration
and  restoration  of the  Collective  Leased  Properties  and with the terms and
conditions of any Ground Lease affecting any Leased  Property,  (ii) perform all
of Landlord's  obligations  as tenant under any Ground Lease and (iii)  procure,
maintain and comply with all appropriate licenses,  and other authorizations and
agreements  required for any use of each of the Collective Leased Properties and
Tenant's  Personal  Property,  if any,  then  being  made,  and  for the  proper
erection,  installation,  operation and  maintenance  of each of the  Collective
Leased Properties or any part thereof.

         4.3  Environmental Matters.

                  4.3.1  Restriction on Use, Etc.  During the Term and any other
time that Tenant shall be in possession of any Leased Property, Tenant shall not
(and shall direct the Manager not to) store,  spill upon, dispose of or transfer
to or from any Leased  Property any  Hazardous  Substance,  except in compliance
with all Applicable  Laws.  During the Term and any other time that Tenant shall
be in possession of any Leased Property, Tenant shall maintain (and shall direct
the Manager to maintain) each Leased Property at all times free of any Hazardous
Substance  (except  in  compliance  with  all  Applicable  Laws).  Tenant  shall
promptly:  (a) upon receipt of notice or knowledge  and shall direct the Manager
upon receipt of notice or knowledge  promptly to, notify  Landlord in writing of
any  material  change in the  nature or extent of  Hazardous  Substances  at any
Leased Property,  (b) transmit to Landlord a copy of any Community Right to Know
report  which is required to be filed by Tenant or the Manager  with  respect to
any Leased Property  pursuant to SARA Title III or any other Applicable Law, (c)
transmit  to  Landlord  copies  of  any  citations,  orders,  notices  or  other
governmental   communications  received  by  Tenant  or  the  Manager  or  their
respective  agents  or
<PAGE>
                                      -34-

representatives  with respect thereto  (collectively,  "Environmental  Notice"),
which Environmental Notice requires a written response or any action to be taken
and/or if such  Environmental  Notice gives notice of and/or presents a material
risk of any material  violation of any Applicable Law and/or presents a material
risk  of  any  material  cost,  expense,   loss  or  damage  (an  "Environmental
Obligation"),  (d)  observe  and comply  (and  direct the Manager to observe and
comply) with all Applicable  Laws relating to the use,  maintenance and disposal
of Hazardous Substances and all orders or directives from any official, court or
agency of competent jurisdiction relating to the use or maintenance or requiring
the removal, treatment, containment or other disposition thereof, and (e) pay or
otherwise  dispose of any fine,  charge or Imposition  related  thereto,  unless
Tenant or the Manager  shall  contest the same in good faith and by  appropriate
proceedings  and the right to use and the value of the  Leased  Property  is not
materially and adversely affected thereby.

         If, at any time prior to the termination of this  Agreement,  Hazardous
Substances  (other than those maintained in accordance with Applicable Laws) are
discovered on any Leased  Property,  subject to Tenant's and the Manager's right
to contest the same in  accordance  with Article 8, Tenant shall take (and shall
direct the Manager to take) all actions and incur any and all  expenses,  as may
be reasonably  necessary and as may be required by any Government Agency, (i) to
clean up and remove from and about the Leased Property all Hazardous  Substances
thereon, (ii) to contain and prevent any further release or threat of release of
Hazardous  Substances  on or about such  Leased  Property  and (iii) to use good
faith efforts to eliminate any further release or threat of release of Hazardous
Substances on or about such Leased Property.

                  4.3.2  Indemnification  of  Landlord.  Tenant  shall  protect,
indemnify and hold harmless  Landlord and each Hotel Mortgagee,  their trustees,
officers,  agents,  employees  and  beneficiaries,  and any of their  respective
successors  or  assigns  with  respect  to  this  Agreement  (collectively,  the
"Indemnitees" and, individually,  an "Indemnitee") for, from and against any and
all debts, liens, claims,  causes of action,  administrative  orders or notices,
costs, fines, penalties or expenses (including,  without limitation,  reasonable
attorney's fees and expenses) imposed upon,  incurred by or asserted against any
Indemnitee  resulting from,  either directly or indirectly,  the presence
<PAGE>
                                      -35-

during  the Term (or any other time  Tenant  shall be  possession  of any Leased
Property)  in, upon or under the soil or ground water of the  Collective  Leased
Properties or any properties surrounding the Collective Leased Properties of any
Hazardous  Substances in violation of any Applicable Law or otherwise,  provided
that any of the foregoing arises by reason of any failure by Tenant, the Manager
or any Person  claiming by, through or under Tenant or the Manager to perform or
comply with any of the terms of this Section 4.3,  except to the extent the same
arise from the gross  negligence or willful  misconduct of Landlord or any other
Indemnitee.  Tenant's  duty  herein  includes,  but is  not  limited  to,  costs
associated  with personal  injury or property  damage claims as a result of such
presence  prior to the  expiration  or  sooner  termination  of the Term and the
surrender of the Collective Leased Properties to Landlord in accordance with the
terms of this  Agreement of Hazardous  Substances  in, upon or under the soil or
ground  water of any of the  Collective  Leased  Properties  in violation of any
Applicable  Law.  Upon Notice from  Landlord  and any other of the  Indemnitees,
Tenant shall  undertake the defense,  at Tenant's sole cost and expense,  of any
indemnification  duties set forth  herein,  in which event,  Tenant shall not be
liable  for  payment  of  any  duplicative   attorneys'  fees  incurred  by  any
Indemnitee.

         Tenant shall, upon demand,  pay to Landlord,  as an Additional  Charge,
any cost, expense,  loss or damage (including,  without  limitation,  reasonable
attorneys'  fees)  incurred  by Landlord  and  arising  from a failure of Tenant
strictly to observe and perform the  requirements  of this  Section  4.3,  which
amounts shall bear  interest  from the date ten (10) days after  written  demand
therefor  is given to Tenant  until paid by Tenant to  Landlord  at the  Overdue
Rate.

                  4.3.3  Survival.  The  provisions  of this  Section  4.3 shall
survive the expiration or sooner termination of this Agreement.

<PAGE>
                                      -36-

                                    ARTICLE 5

                             MAINTENANCE AND REPAIRS

         5.1  Maintenance and Repair.

                  5.1.1  Tenant's Obligations.

                  (a)  Tenant  shall,  at its sole cost and  expense  (except as
         expressly  provided in Section  5.1.2(b)),  or shall direct the Manager
         to, keep the Collective  Leased  Properties  and all private  roadways,
         sidewalks  and  curbs   appurtenant   thereto  (and  Tenant's  Personal
         Property,  if any) in good order and repair,  reasonable  wear and tear
         excepted  (whether or not the need for such repairs  occurs as a result
         of Tenant's or the  Manager's  use,  any prior use, the elements or the
         age of any Leased Property or Tenant's  Personal  Property,  if any, or
         any portion thereof),  and shall promptly make (or cause the Manager to
         make) all necessary and appropriate repairs and replacements thereto of
         every kind and nature,  whether  interior or  exterior,  structural  or
         nonstructural,  ordinary or  extraordinary,  foreseen or  unforeseen or
         arising by reason of a condition  existing prior to the commencement of
         the Term (concealed or otherwise). All repairs shall be made in a good,
         workmanlike   manner,   consistent  with  the  Manager's  and  industry
         standards  for like  hotels in like  locales,  in  accordance  with all
         applicable  federal,  state and local  statutes,  ordinances,  by-laws,
         codes,  rules and regulations  relating to any such work.  Tenant shall
         not take or omit to take (and shall  direct the  Manager not to take or
         omit to take)  any  action,  the  taking  or  omission  of which  would
         materially  and  adversely  impair the value or the  usefulness  of any
         Leased  Property or any part thereof for its  Permitted  Use.  Tenant's
         obligations  under this Section  5.1.1(a) shall be limited in the event
         of any casualty or  Condemnation as set forth in Sections 10.2 and 11.2
         and Tenant's  obligations  with respect to Hazardous  Substances are as
         set forth in Section 4.3.

                  (b) In addition, notwithstanding anything in this Agreement to
         the contrary, Tenant shall, with respect to each Lease Year, or portion
         thereof,  fund,  or cause the
<PAGE>
                                      -37-

         Manager to fund,  into the FF&E Reserve a cash amount equal to not less
         than five percent (5%) of Total Hotel Sales from the Collective  Leased
         Properties for such Lease Year, or portion thereof, which amounts shall
         be  applied  to the  cost  of  repairs,  maintenance,  renovations  and
         replacements to and at the Collective  Leased  Properties in accordance
         with this Agreement and the Management Agreements. Provided that Tenant
         shall comply with the  provisions of this paragraph (b) and any similar
         provisions of the Management Agreements,  any additional funds required
         for repairs,  maintenance,  renovations and  replacements to and at the
         Collective  Leased Properties in excess of those on deposit in the FF&E
         Reserve  shall be advanced by  Landlord,  subject to and in  accordance
         with Section 5.1.2(b).

                  5.1.2  Landlord's Obligations.

                  (a) Except as otherwise  expressly provided in this Agreement,
         Landlord  shall not, under any  circumstances,  be required to build or
         rebuild any improvement on the Collective Leased Properties, or to make
         any repairs, replacements, alterations, restorations or renewals of any
         nature or  description  to the Collective  Leased  Properties,  whether
         ordinary or  extraordinary,  structural or  nonstructural,  foreseen or
         unforeseen,  or,  except as provided in Section  5.1.2(b),  to make any
         expenditure  whatsoever  with  respect  thereto,  or  to  maintain  the
         Collective Leased Properties in any way. Except as otherwise  expressly
         provided in this Agreement, Tenant hereby waives, to the maximum extent
         permitted  by law, the right to make repairs at the expense of Landlord
         pursuant to any law in effect on the date hereof or hereafter  enacted.
         Landlord shall have the right to give, record and post, as appropriate,
         notices  of  nonresponsibility  under any  mechanic's  lien laws now or
         hereafter existing.

                  (b) If, at any time, any of the Management  Agreements require
         that  funds be  disbursed  for  repairs,  maintenance,  renovations  or
         replacements at or to any Leased Property  (including,  but not limited
         to,  pursuant to Section 8.01 and 8.03 of the  Management  Agreements),
         or,  pursuant  to the  terms  of  this  Agreement  (including,  without
         limitation,  Section 4.3),  Tenant is required to make any expenditures
         in
<PAGE>
                                      -38-

         connection with any repair,  maintenance renovation with respect to any
         Leased  Property and the amount of such  disbursements  or expenditures
         exceeds the amount on deposit in the FF&E  Reserve,  Tenant may, at its
         election,  give Landlord Notice thereof,  which Notice shall set forth,
         in reasonable detail, the nature of the required repair,  renovation or
         replacement, the estimated cost thereof and such other information with
         respect  thereto as Landlord may reasonably  require.  Provided that no
         Event of Default shall have occurred and be continuing and Tenant shall
         otherwise comply with the applicable  provisions of Article 6, Landlord
         shall, within ten (10) Business Days after such Notice,  subject to and
         in  accordance  with the  applicable  provisions of Article 6, disburse
         such required  funds to Tenant (or, if Tenant shall so elect,  directly
         to the Manager or any other Person  performing  the required work) and,
         upon such disbursement,  the Minimum Rent shall be adjusted as provided
         in Section 3.1.1(b).

                  5.1.3  Nonresponsibility  of Landlord,  Etc. All  materialmen,
contractors, artisans, mechanics and laborers and other persons contracting with
Tenant with respect to the Collective  Leased  Properties,  or any part thereof,
are hereby charged with notice that liens on the Collective Leased Properties or
on Landlord's interest therein are expressly  prohibited and that they must look
solely to Tenant to secure  payment for any work done or material  furnished  by
Tenant, the Manager or for any other purpose during the term of this Agreement.

         Nothing contained in this Agreement shall be deemed or construed in any
way as constituting the consent or request of Landlord,  express or implied,  by
inference or otherwise, to any contractor, subcontractor, laborer or materialmen
for the  performance  of any labor or the  furnishing  of any  materials for any
alteration,  addition, improvement or repair to the Collective Leased Properties
or any part  thereof  or as giving  Tenant  any  right,  power or  authority  to
contract for or permit the  rendering of any services or the  furnishing  of any
materials  that would give rise to the filing of any lien against the Collective
Leased  Properties or any part thereof nor to subject  Landlord's  estate in the
Collective  Leased  Properties  or any  part  thereof  to  liability  under  any
Mechanic's  Lien  Law of any  State in any way,
<PAGE>
                                      -39-

it being expressly understood Landlord's estate shall not be subject to any such
liability.

         5.2  Tenant's  Personal  Property.  Tenant  shall  provide and maintain
throughout the Term all such Tenant's Personal Property as shall be necessary in
order to operate in compliance with applicable Legal  Requirements and Insurance
Requirements and otherwise in accordance with customary practice in the industry
for the  Permitted  Use  and  all of such  Personal  Property  shall,  upon  the
expiration or earlier  termination of this Agreement,  shall become the property
of Landlord.  If, on or after the Commencement Date, Tenant acquires an interest
in any item of tangible  personal property (other than motor vehicles) on, or in
connection with, the Collective  Leased Properties which belongs to anyone other
than Tenant,  Tenant shall require the agreements permitting such use to provide
that Landlord or its designee may assume Tenant's  rights and obligations  under
such  agreement  upon the  termination  of this  Agreement  with  respect to the
applicable  Leased Property and the assumption of management or operation of the
applicable Hotel by Landlord or its designee.

         5.3  Yield  Up.  Upon the  expiration  or  sooner  termination  of this
Agreement, Tenant shall vacate and surrender each Leased Property to Landlord in
substantially  the same  condition  in which such Leased  Property was in on the
Commencement Date, except as repaired, rebuilt, restored, altered or added to as
permitted or required by the provisions of this  Agreement,  reasonable wear and
tear  excepted  (and casualty  damage and  Condemnation,  in the event that this
Agreement is terminated following a casualty or total Condemnation in accordance
with Article 10 or Article 11).

         In  addition,  upon  the  expiration  or  earlier  termination  of this
Agreement, Tenant shall, at Landlord's sole cost and expense, use its good faith
efforts to transfer to and  cooperate  with  Landlord or  Landlord's  nominee in
connection  with the  processing of all  applications  for  licenses,  operating
permits  and other  governmental  authorizations  and all  contracts,  including
contracts  with  governmental  or  quasi-governmental   Entities  which  may  be
necessary  for the use and  operation  of each of the  Hotels as then  operated.
Consistent  with  the  terms  of the  Management  Agreements,  if  requested  by
Landlord,  Tenant  will  direct  the  Manager  to  continue  to manage any Hotel
designated  by  Landlord  after  the  expiration  of the  Term and for up to one
<PAGE>
                                      -40-

hundred  twenty (120) days,  on such  reasonable  terms (which shall  include an
agreement to reimburse the Manager for its  reasonable  out-of-pocket  costs and
expenses,  and reasonable  administrative  costs),  as Landlord shall reasonably
request.

         5.4  Management  Agreements.  Except as  expressly  provided in Section
5.1.2(b),  Tenant  shall,  at its sole  cost  and  expense,  perform  all of the
obligations  of "Owner"  under the  Management  Agreements,  including,  without
limitation,  the funding of the FF&E Reserve and, upon the  expiration or sooner
termination  of this  Agreement,  the then existing  balance of the FF&E Reserve
shall be paid to or as directed by Landlord.  Tenant shall, at all times, direct
the Manager to perform all of the  Manager's  obligations  under the  Management
Agreements.  Tenant shall not amend or modify any of the  Management  Agreements
without   Landlord's  prior  written   consent,   which  consent  shall  not  be
unreasonably withheld, delayed or conditioned. Tenant shall not take any action,
grant any consent or, except as provided in the  Management  Agreements,  permit
any action under any of the Management  Agreements,  which might have a material
adverse  effect on  Landlord,  without the prior  written  consent of  Landlord.
Except as provided in the Management  Agreements,  Tenant shall not agree to any
change in the Manager, to any change in the Management Agreements, terminate the
Management  Agreements or permit the Manager to assign the Management Agreements
without the prior written approval of Landlord in each instance,  which approval
shall not be unreasonably  withheld,  delayed or conditioned.  If Landlord shall
perform  any  obligations  of "Owner"  under the  Management  Agreements  (which
Landlord may do subject to Section 12.5), the cost of such performance  shall be
payable upon demand by Tenant to Landlord with interest accruing from the demand
date at the Overdue  Rate and  Landlord  shall have the same rights and remedies
for failure to pay such costs on demand as for  Tenant's  failure to pay Minimum
Rent.

                                    ARTICLE 6

                               IMPROVEMENTS, ETC.

         6.1  Improvements  to the  Leased  Property.  Tenant  shall  not  make,
construct  or install (and shall direct the Manager not to construct or install)
any  Capital  Additions  at any  Leased
<PAGE>
                                      -41-

Property without, in each instance,  obtaining Landlord's prior written consent,
which  consent  shall  not be  unreasonably  withheld,  delayed  or  conditioned
provided that (a)  construction  or installation of the same would not adversely
affect or violate any Legal Requirement or Insurance  Requirement  applicable to
such  Leased  Property  and  (b)  Landlord  shall  have  received  an  Officer's
Certificate  certifying  as to the  satisfaction  of the  conditions  set out in
clause (a) above;  provided,  however, that no such consent shall be required in
the event immediate  action is required to prevent  imminent danger to person or
property. Prior to commencing construction of any Capital Addition, Tenant shall
submit,  or shall  direct the Manager to submit,  to  Landlord,  in  writing,  a
proposal setting forth, in reasonable detail, any such proposed  improvement and
shall  provide to  Landlord  such plans and  specifications,  and such  permits,
licenses,  contracts and such other information  concerning the same as Landlord
may  reasonably  request.  Landlord  shall have  thirty  (30) days to review all
materials submitted to Landlord in connection with any such proposal. Failure of
Landlord to respond to Tenant's or the  Manager's  proposal  within  thirty (30)
days after receipt of all  information  and  materials  requested by Landlord in
connection with the proposed  improvement shall be deemed to constitute approval
of the same.  Without  limiting the generality of the  foregoing,  such proposal
shall  indicate the  approximate  projected cost of  constructing  such proposed
improvement  and the use or uses to which it will be put.  No  Capital  Addition
shall be made at any Leased  Property  which  would tie in or connect any Leased
Improvement  with any other  improvements  on  property  adjacent to such Leased
Property (and not part of the Land) including,  without  limitation,  tie-ins of
buildings or other structures or utilities.  Tenant shall not finance, and shall
direct  the  Manager  not to  finance,  the  cost  of any  construction  of such
improvement  by the  granting  of a lien on or  security  interest in any Leased
Property or such improvement,  or Tenant's  interest therein,  without the prior
written  consent of  Landlord,  which  consent  may be  withheld  by Landlord in
Landlord's sole discretion.  Any such improvements shall, upon the expiration or
sooner termination of this Agreement,  remain or pass to and become the property
of  Landlord,   free  and  clear  of  all  encumbrances   other  than  Permitted
Encumbrances.

         6.2 Salvage.  All materials which are scrapped or removed in connection
with the making of either Capital Additions or
<PAGE>
                                      -42-

non-Capital  Additions  or repairs  required by Article 5 shall be or become the
property of the party that paid for such work.

                                    ARTICLE 7

                                      LIENS

         7.1  Liens.  Subject  to  Article 8,  Tenant  shall  not,  directly  or
indirectly,  create or allow to  remain  and shall  promptly  discharge,  at its
expense, any lien, encumbrance,  attachment,  title retention agreement or claim
upon the Collective Leased Properties or Tenant's  leasehold interest therein or
any attachment,  levy,  claim or encumbrance in respect of the Rent,  other than
(a) Permitted Encumbrances, (b) restrictions, liens and other encumbrances which
are  consented to in writing by Landlord,  (c) liens for those taxes of Landlord
which  Tenant is not  required to pay  hereunder,  (d)  subleases  permitted  by
Article 17, (e) liens for  Impositions or for sums resulting from  noncompliance
with Legal Requirements so long as (i) the same are not yet due and payable,  or
(ii) are being  contested in accordance  with Article 8, (f) liens of mechanics,
laborers,  materialmen,  suppliers or vendors incurred in the ordinary course of
business  that  are not yet due and  payable  or are for  sums  that  are  being
contested in accordance  with Article 8, (g) any Hotel  Mortgages or other liens
which are the  responsibility  of Landlord pursuant to the provisions of Article
21 and (h) Landlord Liens.

         7.2 Landlord's  Lien. In addition to any statutory  landlord's lien and
in order to secure  payment of the Rent and all other sums payable  hereunder by
Tenant,  and to secure  payment of any loss,  cost or damage which  Landlord may
suffer by reason of Tenant's breach of this Agreement, Tenant hereby grants unto
Landlord a security  interest in and an express  contractual  lien upon Tenant's
Personal  Property  (except  motor  vehicles),  and all  ledger  sheets,  files,
records,  documents and instruments  (including,  without  limitation,  computer
programs,  tapes  and  related  electronic  data  processing)  relating  to  the
operation of the Hotels (the "Records") and all proceeds  therefrom,  subject to
any Permitted  Encumbrances;  and such Tenant's  Personal  Property shall not be
removed from the Collective  Leased  Properties at any time when a Default or an
Event of Default has occurred and is continuing.
<PAGE>
                                      -43-

         Upon Landlord's  request,  Tenant shall execute and deliver to Landlord
financing  statements  in form  sufficient  to perfect the security  interest of
Landlord in Tenant's  Personal  Property and the proceeds  thereof in accordance
with the  provisions of the applicable  laws of the State.  Tenant hereby grants
Landlord an irrevocable limited power of attorney,  coupled with an interest, to
execute all such  financing  statements in Tenant's name,  place and stead.  The
security  interest  herein  granted is in addition to any statutory lien for the
Rent.

                                    ARTICLE 8

                               PERMITTED CONTESTS

         Tenant and the  Manager  shall have the right to contest  the amount or
validity  of  any  Imposition,   Legal   Requirement,   Insurance   Requirement,
Environmental Obligation, lien, attachment,  levy, encumbrance,  charge or claim
(collectively,  "Claims")  as to  any  Leased  Property,  by  appropriate  legal
proceedings,  conducted in good faith and with due diligence,  provided that (a)
the foregoing shall in no way be construed as relieving,  modifying or extending
Tenant's  obligation to pay any Claims as finally  determined,  (b) such contest
shall not cause  Landlord or Tenant to be in default  under any mortgage or deed
of trust  encumbering  such Leased  Property  (Landlord  agreeing  that any such
mortgage or deed of trust shall  permit  Tenant and the Manager to exercise  the
rights granted  pursuant to this Article 8) or any interest therein or result in
or reasonably be expected to result in a lien attaching to such Leased Property,
(c) no part of such  Leased  Property  nor any  Rent  therefrom  shall be in any
immediate danger of sale,  forfeiture,  attachment or loss, and (d) Tenant shall
indemnify and hold harmless Landlord from and against any cost,  claim,  damage,
penalty or reasonable expense, including reasonable attorneys' fees, incurred by
Landlord in connection therewith or as a result thereof. Landlord agrees to join
in any such proceedings if required legally to prosecute such contest,  provided
that  Landlord  shall  not  thereby  be  subjected  to  any  liability  therefor
(including,  without  limitation,  for the  payment of any costs or  expenses in
connection  therewith)  unless  Tenant agrees by agreement in form and substance
reasonably  satisfactory  to Landlord,  to assume and  indemnify  Landlord  with
respect to the same.  Tenant  shall be
<PAGE>
                                      -44-

entitled to any refund of any Claims and such charges and  penalties or interest
thereon  which have been paid by Tenant or paid by  Landlord  to the extent that
Landlord has been fully reimbursed by Tenant. If Tenant shall fail (x) to pay or
cause to be paid any Claims when finally  determined,  (y) to provide reasonable
security  therefor,  or (z) to  prosecute  or  cause to be  prosecuted  any such
contest  diligently and in good faith,  Landlord may, upon reasonable  notice to
Tenant  (which  notice may be oral and shall not be required  if Landlord  shall
reasonably  determine  that the  same is not  practicable),  pay  such  charges,
together with interest and penalties due with respect thereto,  and Tenant shall
reimburse Landlord therefor, upon demand, as Additional Charges.

                                    ARTICLE 9

                          INSURANCE AND INDEMNIFICATION

         9.1 General Insurance  Requirements.  Tenant shall, at all times during
the Term and at any other time Tenant shall be in possession  of the  Collective
Leased Properties, keep (or direct the Manager to keep) each Leased Property and
all property  located  therein or thereon,  insured against the risks and in the
amounts as follows and shall  maintain the following  insurance  with respect to
each Leased Property:

                  (a) "All-risk" property insurance, including insurance against
         loss or damage by fire, vandalism and malicious mischief,  explosion of
         steam  boilers,  pressure  vessels or other similar  apparatus,  now or
         hereafter installed in the Hotel located at such Leased Property,  with
         equivalent  coverage as that  provided by the usual  extended  coverage
         endorsements,  in an amount equal to one hundred  percent (100%) of the
         then full  Replacement Cost thereof (as defined in Section 9.2) (except
         that the foregoing shall not be construed to require Tenant to maintain
         earthquake  insurance  if  the  same  is  unavailable  on  commercially
         reasonable terms, provided Tenant gives Landlord prior Notice thereof);

                  (b)  Business  interruption  and blanket  earnings  plus extra
         expense under a rental value insurance  policy or endorsement  covering
         risk of loss  during  the  lesser of the
<PAGE>
                                      -45-

         first twelve (12) months of reconstruction or the actual reconstruction
         period  necessitated by the occurrence of any of the hazards  described
         in  subparagraph  (a) above,  in such amounts as may be  customary  for
         comparable  properties  in the  area  and in an  amount  sufficient  to
         prevent Landlord or Tenant from becoming a co-insurer  (except that the
         foregoing  shall  not  be  construed  to  require  Tenant  to  maintain
         earthquake  insurance  if  the  same  is  unavailable  on  commercially
         reasonable terms, provided Tenant gives Landlord prior Notice thereof);

                  (c)  Comprehensive  general  liability  insurance,   including
         bodily injury and property damage (on an occurrence basis and on a 1973
         or 1988  ISO CGL  form or on a form  otherwise  maintain  by  similarly
         situated tenants, including, without limitation, broad form contractual
         liability,  independent  contractor's  hazard and completed  operations
         coverage) in an amount not less than Two Million  Dollars  ($2,000,000)
         per  occurrence  and umbrella  coverage of all such claims in an amount
         not less than Twenty-Three Million Dollars ($23,000,000);

                  (d) Flood (if such  Leased  Property is located in whole or in
         part within an area  identified as an area having special flood hazards
         and in which flood insurance has been made available under the National
         Flood  Insurance  Act  of  1968,  as  amended,  or the  Flood  Disaster
         Protection Act of 1973, as amended (or any successor acts thereto)) and
         such  other  hazards  and in  such  amounts  as may  be  customary  for
         comparable properties in the area;

                  (e) Worker's  compensation  insurance coverage for all persons
         employed by Tenant on such Leased  Property with  statutory  limits and
         otherwise  with  limits  of  and  provisions  in  accordance  with  the
         requirements of applicable local, State and federal law, and employer's
         liability insurance as is customarily carried by similar employers; and

                  (f) Such additional  insurance as may be reasonably  required,
         from time to time,  by  Landlord  or any Hotel  Mortgagee  and which is
         customarily carried by comparable lodging properties in the area.
<PAGE>
                                      -46-

         9.2 Replacement Cost. "Replacement Cost" as used herein, shall mean the
actual replacement cost of the property requiring replacement from time to time,
including  an  increased  cost  of  construction  endorsement,  less  exclusions
provided in the  standard  form of fire  insurance  policy.  In the event either
party believes that the then full Replacement Cost has increased or decreased at
any time during the Term, such party,  at its own cost,  shall have the right to
have  such full  Replacement  Cost  redetermined  by an  independent  accredited
appraiser  approved  by the  other,  which  approval  shall not be  unreasonably
withheld or delayed.  The party  desiring to have the full  Replacement  Cost so
redetermined  shall  forthwith,   on  receipt  of  such  determination  by  such
appraiser, give Notice thereof to the other. The determination of such appraiser
shall  be  final  and  binding  on  the  parties  hereto  until  any  subsequent
determination  under this Section 9.2,  and Tenant shall  forthwith  conform the
amount of the insurance carried to the amount so determined by the appraiser.

         9.3 Waiver of  Subrogation.  Landlord and Tenant agree that (insofar as
and to the extent that such agreement may be effective  without  invalidating or
making it impossible to secure  insurance  coverage from  responsible  insurance
companies  doing  business in any State) with respect to any property loss which
is covered by insurance then being carried by Landlord or Tenant,  respectively,
the party  carrying such insurance and suffering said loss releases the other of
and from any and all claims with respect to such loss;  and they  further  agree
that their  respective  insurance  companies  shall have no right of subrogation
against  the other on account  thereof,  even  though  extra  premium may result
therefrom.  In the event that any extra premium is payable by Tenant as a result
of this provision,  Landlord shall not be liable for reimbursement to Tenant for
such extra premium.

         9.4 Form  Satisfactory,  Etc. All insurance  policies and  endorsements
required pursuant to this Article 9 shall be fully paid for,  nonassessable and,
except  for  umbrella  and  flood  coverage,  be issued  by  insurance  carriers
authorized to do business in the State,  having a general policy holder's rating
of no less than B++ in Best's latest rating guide.  All such policies  described
in Sections  9.1(a)  through (d) shall  include no  deductible  in excess of Two
Hundred  Fifty  Thousand  Dollars  ($250,000)  and,  with the  exception  of the
insurance  described  in
<PAGE>
                                      -47-

Sections  9.1(e),  shall name  Landlord and any Hotel  Mortgagee  as  additional
insureds,  as their interests may appear.  All loss adjustments shall be payable
as provided in Article 10. Tenant shall cause all insurance  premiums to be paid
and shall deliver  policies or  certificates  thereof to Landlord prior to their
effective date (and, with respect to any renewal policy, prior to the expiration
of the existing policy). All such policies shall provide Landlord (and any Hotel
Mortgagee if required by the same) thirty (30) days prior written  notice of any
material change or  cancellation of such policy.  In the event Tenant shall fail
to effect such insurance as herein required,  to pay the premiums therefor or to
deliver such policies or  certificates to Landlord or any Hotel Mortgagee at the
times required,  Landlord shall have the right, but not the obligation,  subject
to the  provisions  of Section  12.5,  to  acquire  such  insurance  and pay the
premiums therefor,  which amounts shall be payable to Landlord,  upon demand, as
Additional  Charges,  together with interest accrued thereon at the Overdue Rate
from the date such payment is made until (but excluding) the date repaid.

         9.5 Blanket Policy.  Notwithstanding anything to the contrary contained
in this Article 9, Tenant's obligation to maintain the insurance herein required
may be brought within the coverage of a so-called  blanket policy or policies of
insurance  carried and maintained by Tenant or the Manager,  provided,  that (a)
the coverage  thereby  afforded to each Leased  Property  will not be reduced or
diminished  from that which would exist under a separate  policy for each Leased
Property  meeting  all  other  requirements  of  this  Agreement,  and  (b)  the
requirements  of this Article 9 are otherwise  satisfied.  Without  limiting the
foregoing,  the amounts of insurance that are required to be maintained pursuant
to Section 9.1 shall be on a Hotel by Hotel  basis,  and shall not be subject to
an  aggregate  limit,  except  for  products,  completed  operations  and flood.
Notwithstanding  any other provisions of Articles 9 or 10, Tenant may permit the
Manager to self insure or  otherwise  retain such  workers'  insurance  risks or
portions  thereof as the Manager does with respect to other  similar  hotels the
Manager  owns,  leases or manages  under the Marriott  name in the United States
pursuant to any established  self insurance  program of Marriott  International,
Inc.
<PAGE>
                                      -48-

         9.6  No  Separate  Insurance.   Tenant  shall  not  take  out  separate
insurance,  concurrent  in form or  contributing  in the event of loss with that
required by this Article 9, or increase the amount of any existing  insurance by
securing an additional policy or additional policies,  unless all parties having
an  insurable  interest  in the  subject  matter  of such  insurance,  including
Landlord and all Hotel Mortgagees,  are included therein as additional  insureds
and the loss is payable  under such  insurance  in the same manner as losses are
payable  under  this  Agreement.  In the event  Tenant  shall  take out any such
separate  insurance  or  increase  any  of the  amounts  of  the  then  existing
insurance, Tenant shall give Landlord prompt Notice thereof.

         9.7  Indemnification of Landlord.  Notwithstanding the existence of any
insurance  provided  for herein and without  regard to the policy  limits of any
such insurance,  Tenant shall protect, indemnify and hold harmless Landlord for,
from and against  all  liabilities,  obligations,  claims,  damages,  penalties,
causes of action, costs and reasonable expenses (including,  without limitation,
reasonable  attorneys'  fees), to the maximum extent  permitted by law,  imposed
upon or incurred by or asserted against Landlord by reason of: (a) any accident,
injury to or death of persons or loss of or damage to property  occurring  on or
about the Collective Leased Properties or adjoining  sidewalks or rights of way,
(b) any past,  present or future use, misuse,  non-use,  condition,  management,
maintenance  or  repair  by  Tenant  or  anyone  claiming  under  Tenant  of the
Collective  Leased  Properties or Tenant's  Personal Property or any litigation,
proceeding  or claim by  governmental  entities or other third  parties to which
Landlord  is made a party  or  participant  relating  to the  Collective  Leased
Properties  or  Tenant's  Personal  Property  or  such  use,  misuse,   non-use,
condition,  management,  maintenance,  or repair thereof  including,  failure to
perform  obligations (other than Condemnation  proceedings) to which Landlord is
made a party,  (c) any  Impositions  that are the  obligations  of Tenant to pay
pursuant to the applicable provisions of this Agreement,  and (d) any failure on
the part of Tenant or anyone claiming under Tenant to perform or comply with any
of the terms of this Agreement.  Tenant, at its expense,  shall contest,  resist
and defend any such claim,  action or proceeding  asserted or instituted against
Landlord  (and shall not be  responsible  for any  duplicative  attorneys'  fees
incurred by Landlord) or may compromise or otherwise  dispose of the same,  with
Landlord's prior written
<PAGE>
                                      -49-

consent  (which  consent may not be  unreasonably  withheld or delayed).  In the
event Landlord shall  unreasonably  withhold or delay its consent,  Tenant shall
not be liable pursuant to this Section 9.7 for any incremental increase in costs
or expenses  resulting  therefrom.  The obligations of Tenant under this Section
9.7 are in  addition  to the  obligations  set  forth in  Section  4.3 and shall
survive the termination of this Agreement.

                                   ARTICLE 10

                                    CASUALTY

         10.1 Insurance Proceeds.  Except as provided in the last clause of this
sentence,  all  proceeds  payable  by reason of any loss or damage to any Leased
Property,  or any portion  thereof,  and insured  under any policy of  insurance
required by Article 9 (other  than the  proceeds  of any  business  interruption
insurance)  shall be paid  directly to Landlord  (subject to the  provisions  of
Section  10.2)  and all loss  adjustments  with  respect  to losses  payable  to
Landlord shall require the prior written consent of Landlord; provided, however,
that, so long as no Event of Default shall have occurred and be continuing,  all
such  proceeds  less  than  or  equal  to Two  Hundred  Fifty  Thousand  Dollars
($250,000)  shall be paid  directly to Tenant or the Manager and such losses may
be adjusted without Landlord's  consent. If Tenant is required to reconstruct or
repair any Leased Property as provided  herein,  such proceeds shall be paid out
by Landlord  from time to time for the  reasonable  costs of  reconstruction  or
repair of such  Leased  Property  necessitated  by such  damage or  destruction,
subject to and in accordance with the provisions of Section 10.2.4.  Provided no
Default or Event of Default has occurred and is continuing,  any excess proceeds
of insurance  remaining after the completion of the restoration shall be paid to
Tenant or the Manager.  In the event that the  provisions of Section  10.2.1 are
applicable,  the  insurance  proceeds  shall be retained  by the party  entitled
thereto pursuant to Section 10.2.1.  All salvage resulting from any risk covered
by insurance shall belong to Landlord, provided any rights to the same have been
waived by the insurer.

         10.2  Damage or Destruction.
<PAGE>
                                      -50-

                  10.2.1 Damage or  Destruction of Leased  Property.  If, during
the Term, any Leased  Property  shall be totally or partially  destroyed and the
Hotel located  thereon is thereby  rendered  Unsuitable  for Its Permitted  Use,
either  Landlord or Tenant  may,  by the giving of Notice  thereof to the other,
terminate this Agreement with respect to such Leased Property,  whereupon,  this
Agreement shall terminate with respect to such Leased Property, the Minimum Rent
shall be reduced by the amount thereof  allocable to such Leased  Property,  and
Landlord shall be entitled to retain the insurance  proceeds  payable on account
of such damage.

                  10.2.2 Partial Damage or Destruction. If, during the Term, any
Leased Property shall be totally or partially destroyed but the Hotel thereon is
not rendered Unsuitable for Its Permitted Use, Tenant shall,  subject to Section
10.2.3, promptly restore such Hotel as provided in Section 10.2.4.

                  10.2.3 Insufficient Insurance Proceeds. (a) If the cost of the
repair or restoration of the applicable  Leased  Property  exceeds the amount of
insurance  proceeds  received by Landlord and Tenant  pursuant to Article  9(a),
(c), (d) or, if applicable, (e), Tenant shall give Landlord Notice thereof which
notice shall set forth in reasonable  detail the nature of such  deficiency  and
whether Tenant shall pay and assume the amount of such deficiency (Tenant having
no  obligation  to do so,  except that, if Tenant shall elect to make such funds
available, the same shall become an irrevocable obligation of Tenant pursuant to
this  Agreement).  In the event  Tenant  shall  elect not to pay and  assume the
amount  of  such  deficiency,  Landlord  shall  have  the  right  (but  not  the
obligation),  exercisable at Landlord's sole election by Notice to Tenant, given
within sixty (60) days after Tenant's notice of the deficiency, to elect to make
available for  application  to the cost of repair or  restoration  the amount of
such  deficiency;  provided,  however,  in such event,  upon any disbursement by
Landlord  thereof,  the  Minimum  Rent shall be  adjusted as provided in Section
3.1.1(b). In the event that neither Landlord nor Tenant shall elect to make such
deficiency  available for  restoration,  either Landlord or Tenant may terminate
this Agreement with respect to the applicable  Leased  Property by Notice to the
other,  whereupon,  this Agreement  shall  terminate with respect to such Leased
Property as provided in
<PAGE>
                                      -51-

Section  10.2.1.  It  is  expressly  understood  and  agreed,   however,   that,
notwithstanding  anything in this  Agreement  to the  contrary,  Tenant shall be
strictly  liable and solely  responsible  for the amount of any  deductible  and
shall,  upon any  insurable  loss,  pay over the  amount of such  deductible  to
Landlord  at the time and in the  manner  herein  provided  for  payment  of the
applicable proceeds to Landlord.

         (b)  Notwithstanding  the  provisions of Section  10.2.3(a),  if Tenant
repairs  damage or  destruction  of any Leased  Property  located in  California
resulting  from an  earthquake,  whether such damage or  destruction be Material
Earthquake Damage (as defined in Section 10.3(b)) or otherwise,  and the cost of
the repair or  restoration  exceeds the amount of  insurance  proceeds  (if any)
received  by  Landlord  and Tenant  pursuant to Article  9(a),  (c),  (d) or, if
applicable,  (e), Landlord shall, at the request of Tenant,  provide funding for
such repairs or restoration,  and the Minimum Rent shall be adjusted as provided
in Section 3.1.1(b).

                  10.2.4  Disbursement  of  Proceeds.  In the  event  Tenant  is
required to restore any Leased Property  pursuant to Section 10.2,  Tenant shall
(or shall direct the Manager to) commence  promptly and continue  diligently  to
perform the repair and restoration of such Leased Property  (hereinafter  called
the "Work"),  so as to restore such Leased Property in compliance with all Legal
Requirements  and  so  that  such  Leased  Property  shall  be,  to  the  extent
practicable,  substantially  equivalent  in value  and  general  utility  to its
general  utility  and value  immediately  prior to such  damage or  destruction.
Subject to the terms hereof,  Landlord shall advance the insurance  proceeds and
any additional  amounts payable by Landlord pursuant to Section 10.2.3 to Tenant
regularly  during the repair and restoration  period so as to permit payment for
the cost of any such restoration and repair. Any such advances shall be made not
more than monthly within ten (10) Business Days after Tenant submits to Landlord
a written requisition and substantiation therefor on AIA Forms G702 and G703 (or
on such  other  form or  forms as may be  reasonably  acceptable  to  Landlord).
Landlord may, at its option,  condition  advancement of said insurance  proceeds
and other amounts on (i) the absence of any Event of Default,  (ii) its approval
of plans and  specifications  of an architect  satisfactory  to Landlord  (which
approval  shall  not  be  unreasonably  withheld  or  delayed),   (iii)  general
contractors' estimates,  (iv) architect's
<PAGE>
                                      -52-

certificates,   (v)  unconditional  lien  waivers  of  general  contractors,  if
available,  (vi) evidence of approval by all governmental  authorities and other
regulatory  bodies whose approval is required and (vii) such other  certificates
as Landlord may, from time to time, reasonably require.

         Landlord's obligation to disburse insurance proceeds under this Article
10 shall be subject to the release of such  proceeds by any Hotel  Mortgagee  to
Landlord.

         Tenant's  obligation  to restore any Leased  Property  pursuant to this
Article 10 shall be subject to the release of  available  insurance  proceeds by
the applicable  Hotel Mortgagee to Landlord or directly to Tenant or the Manager
and, in the event such proceeds are insufficient, Landlord electing to make such
deficiency available therefor (and disbursement of such deficiency).

         10.3 Damage Near End of Term.  (a)  Notwithstanding  any  provisions of
Section 10.1 or 10.2 to the contrary,  if damage to or destruction of any Leased
Property  occurs  during the last twelve (12) months of the Extended Term and if
such damage or  destruction  cannot  reasonably be expected to be fully repaired
and  restored  prior to the date that is six (6) months prior to the end of such
Extended  Term,  the  provisions of Section 10.2.1 shall apply as if such Leased
Property had been totally or partially  destroyed and the Hotel thereon rendered
Unsuitable for its Permitted Use.

         (b)  Notwithstanding  any  provisions  of  Section  10.1 or 10.2 to the
contrary,  if (x) Material  Earthquake  Damage (as defined  below) to any Leased
Property  located  in  California  occurs and (y)  Tenant  was not  required  to
maintain  earthquake  insurance  pursuant to Section 9.1,  Tenant shall have the
right,  by the giving of Notice thereof to Landlord within sixty (60) days after
the date of earthquake,  to terminate this Agreement with respect to such Leased
Property;  if Tenant shall so elect to terminate  this Agreement with respect to
such Leased Property then, subject to the next sentence of this paragraph,  this
Agreement shall terminate with respect to such Leased Property as of the date of
earthquake.  Tenant shall, as a condition precedent to the effectiveness of such
termination,  pay to Landlord an amount equal to the Minimum  Rent  allocable to
such Leased Property
<PAGE>
                                      -53-

payable for the balance of the Term (without giving effect to such termination),
which payment may be made, at Tenant's election,  by application  thereto of the
Retained Funds (as defined in the Purchase Agreement);  provided,  however, that
in no event shall Tenant be required to pay to Landlord pursuant to this Section
10.3(b) with respect to Collective  Leased  Properties  located in California an
aggregate  amount in excess of  Seventeen  Million One Hundred  Twenty  Thousand
Dollars ($17,120,000).

         For  purposes of this Section  10.3(b),  "Material  Earthquake  Damage"
shall mean damage or destruction of a Leased Property resulting from earthquake,
the repair or restoration of which will cost in excess of an amount equal to (x)
One Million Five Hundred Thousand Dollars ($1,500,000) plus (y) One Million Five
Hundred Thousand Dollars ($1,500,000)  multiplied by a fraction, the denominator
of which  shall be the Index for the  nearest  month prior to March 22, 1996 and
the  numerator  of which shall be the Index for the  nearest  month prior to the
date of such earthquake.

         For  purposes of this Section  10.3(b),"Index"  shall mean the Consumer
Price Index for Urban Wage Earners and Clerical Workers,  All Cities, All Items,
1982-1984  = 100.  The  Index is  presently  published  by the  Bureau  of Labor
Statistics  of the  United  States  Department  of Labor.  In the event that the
publication of the Index ceases, Material Earthquake Damage shall be computed on
the basis of whatever index published at that time is most nearly comparable, as
reasonably determined by Landlord.

         10.4 Tenant's Property. All insurance proceeds payable by reason of any
loss of or damage to any of Tenant's  Personal  Property shall be paid to Tenant
and, to the extent necessary to repair or replace Tenant's  Personal Property in
accordance  with Section  10.5,  Tenant shall hold such proceeds in trust to pay
the cost of repairing or replacing damaged Tenant's Personal Property.

         10.5 Restoration of Tenant's Property. If Tenant is required to restore
any Leased Property as hereinabove provided, Tenant shall either (a) restore all
alterations and improvements made by Tenant and Tenant's Personal  Property,  or
(b) replace such  alterations and improvements  and Tenant's  Personal  Property
with  improvements  or items of the same or better  quality  and  utility in the
operation of such Leased Property.
<PAGE>
                                      -54-

         10.6 No Abatement of Rent.  This  Agreement  shall remain in full force
and effect and Tenant's  obligation  to make all payments of Rent and to pay all
other charges as and when required  under this Agreement  shall remain  unabated
during the Term  notwithstanding  any damage  involving  the  Collective  Leased
Properties  (provided  that  Landlord  shall credit  against  such  payments any
amounts  paid to Landlord as a  consequence  of such damage  under any  business
interruption  insurance  obtained by Tenant  hereunder).  The provisions of this
Article 10 shall be  considered  an  express  agreement  governing  any cause of
damage or destruction to the Collective  Leased  Properties  and, to the maximum
extent permitted by law, no local or State statute,  laws, rules,  regulation or
ordinance in effect during the Term which  provide for such a contingency  shall
have any application in such case.

         10.7 Waiver.  Tenant hereby waives any statutory  rights of termination
which may arise by reason of any damage or  destruction of any of the Collective
Leased Properties.

                                   ARTICLE 11

                                  CONDEMNATION

         11.1  Total  Condemnation,  Etc.  If either (i) the whole of any Leased
Property shall be taken by  Condemnation or (ii) a Condemnation of less than the
whole of any Leased  Property  renders such Leased  Property  Unsuitable for Its
Permitted  Use,  this  Agreement  shall  terminate  with  respect to such Leased
Property,  the Minimum Rent shall be reduced by the amount allocable thereto and
Tenant and  Landlord  shall seek the Award for their  interests  in such  Leased
Property as provided in Section 11.5.

         11.2 Partial Condemnation.  In the event of a Condemnation of less than
the  whole of any  Leased  Property  such  that such  Leased  Property  is still
suitable for its Permitted Use, Tenant shall, or shall direct the Manager to, to
the extent of the Award and any  additional  amounts  disbursed  by  Landlord as
hereinafter  provided,  commence promptly and continue diligently to restore the
untaken  portion of the Leased  Improvements  so that such  Leased  Improvements
shall constitute a complete architectural
<PAGE>
                                      -55-

unit of the same general  character  and condition (as nearly as may be possible
under the circumstances) as the Leased Improvements  existing  immediately prior
to such Condemnation, in full compliance with all Legal Requirements, subject to
the provisions of this Section 11.2. If the cost of the repair or restoration of
such Leased Property exceeds the amount of the Award, Tenant shall give Landlord
Notice  thereof which notice shall set forth in reasonable  detail the nature of
such  deficiency  and  whether  Tenant  shall pay and  assume the amount of such
deficiency  (Tenant  having no  obligation to do so, except that if Tenant shall
elect to make  such  funds  available,  the same  shall  become  an  irrevocable
obligation  of Tenant  pursuant to this  Agreement).  In the event  Tenant shall
elect not to pay and assume the amount of such  deficiency,  Landlord shall have
the right (but not the  obligation),  exercisable at Landlord's sole election by
Notice to Tenant  given  within  sixty  (60) days after  Tenant's  Notice of the
deficiency,  to elect to make available for application to the cost of repair or
restoration the amount of such  deficiency;  provided,  however,  in such event,
upon any disbursement by Landlord thereof, the Minimum Rent shall be adjusted as
provided in Section  3.1.1(b).  In the event that  neither  Landlord  nor Tenant
shall elect to make such deficiency  available for restoration,  either Landlord
or Tenant may terminate this Agreement with respect to such Leased  Property and
the entire Award shall be retained by Landlord.

         Subject to the terms hereof,  Landlord shall  contribute to the cost of
restoration  that  part of the  Award  necessary  to  complete  such  repair  or
restoration,  together with  severance  and other damages  awarded for the taken
Leased  Improvements  and any  deficiency  Landlord has agreed to  disburse,  to
Tenant regularly  during the restoration  period so as to permit payment for the
cost of such repair or  restoration.  Landlord  may,  at its  option,  condition
advancement  of such Award and other  amounts on (i) the absence of any Event of
Default,  (ii)  its  approval  of  plans  and  specifications  of  an  architect
satisfactory to Landlord  (which approval shall not be unreasonably  withheld or
delayed), (iii) general contractors' estimates,  (iv) architect's  certificates,
(v)  unconditional  lien  waivers of general  contractors,  if  available,  (vi)
evidence of approval by all governmental authorities and other regulatory bodies
whose  approval is required and (vii) such other  certificates  as Landlord may,
from time to time, reasonably require.  Landlord's obligation under
<PAGE>
                                      -56-

this Section 11.2 to disburse the Award and such other  amounts shall be subject
to (x) the  collection  thereof  by  Landlord  and (y) the  satisfaction  of any
applicable  requirements of any Hotel Mortgage, and the release of such Award by
the applicable  Hotel Mortgagee.  Tenant's  obligation to restore the applicable
Leased  Property  shall be subject to the release of the Award by the applicable
Hotel Mortgagee to Landlord.

         11.3  Abatement of Rent.  Other than as  specifically  provided in this
Agreement,  this  Agreement  shall  remain in full force and effect and Tenant's
obligation to make all payments of Rent and to pay all other charges as and when
required  under  this   Agreement   shall  remain   unabated   during  the  Term
notwithstanding any Condemnation  involving any Leased Property.  The provisions
of this  Article 11 shall be  considered  an  express  agreement  governing  any
Condemnation  involving any Leased Property and, to the maximum extent permitted
by law, no local or State statute,  law, rule, regulation or ordinance in effect
during the Term which provides for such a contingency shall have any application
in such case.

         11.4 Temporary Condemnation. In the event of any temporary Condemnation
of any Leased  Property or  Tenant's  interest  therein,  this  Agreement  shall
continue  in full  force and effect and Tenant  shall  continue  to pay,  in the
manner and on the terms herein  specified,  the full amount of the Rent.  Tenant
shall  continue to perform and observe all of the other terms and  conditions of
this Agreement on the part of the Tenant to be performed and observed.  Provided
no Event of Default has occurred  and is  continuing,  the entire  amount of any
Award made for such temporary  Condemnation  allocable to the Term, whether paid
by way of damages,  rent or  otherwise,  shall be paid to Tenant.  Tenant shall,
promptly upon the termination of any such period of temporary  Condemnation,  at
its sole  cost and  expense,  restore  the  applicable  Leased  Property  to the
condition  that  existed  immediately  prior  to  such  Condemnation,   in  full
compliance  with  all  Legal  Requirements,  unless  such  period  of  temporary
Condemnation  shall extend  beyond the  expiration  of the Term,  in which event
Tenant  shall not be required  to make such  restoration.  For  purposes of this
Section  11.4, a  Condemnation  shall be deemed to be temporary if the period of
such Condemnation is not expected to, and does not, exceed twelve (12) months.
<PAGE>
                                      -57-

         11.5  Allocation  of Award.  Except as provided in Section 11.4 and the
second  sentence  of this  Section  11.5,  the total  Award  shall be solely the
property  of and  payable  to  Landlord.  Any  portion of the Award made for the
taking of Tenant's leasehold  interest in any Leased Property,  loss of business
during the remainder of the Term, the taking of Tenant's Personal  Property,  or
Tenant's  removal  and  relocation  expenses  shall be the sole  property of and
payable  to  Tenant  (subject  to  the  provisions  of  Section  11.2).  In  any
Condemnation  proceedings,  Landlord and Tenant shall each seek its own Award in
conformity herewith, at its own expense.

                                   ARTICLE 12

                              DEFAULTS AND REMEDIES

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

                  (a) should  Tenant fail to make any payment of the Rent or any
         other sum (including,  but not limited to, funding of the FF&E Reserve,
         payable hereunder when due and such failure shall continue for a period
         of ten (10) days after Notice thereof; or

                  (b)  should  Tenant  or  the  Manager  fail  to  maintain  the
         insurance  coverages  required  under  Article 9 and such failure shall
         continue for ten (10) days after Notice thereof  (except that no Notice
         shall be required if any such insurance  coverages  shall have lapsed);
         or

                  (c) should Tenant default in the due observance or performance
         of any of the terms,  covenants or  agreements  contained  herein to be
         performed or observed by it (other than as specified in clauses (a) and
         (b) above) and such default shall  continue for a period of thirty (30)
         days after Notice  thereof from  Landlord to Tenant  (provided  that no
         such Notice shall be required if Landlord  shall  reasonably  determine
         immediate action is necessary to protect person or property); provided,
         however,  that if such  default  is  susceptible  of cure but such cure
         cannot be
<PAGE>
                                      -58-

         accomplished  with due diligence  within such period of time and if, in
         addition,  Tenant  commences  to cure or cause to be cured such default
         within  fifteen  (15) days  after  Notice  thereof  from  Landlord  and
         thereafter   prosecutes  the  curing  of  such  default  with  all  due
         diligence, such period of time shall be extended to such period of time
         (not to exceed an additional  ninety (90) days in the aggregate) as may
         be necessary to cure such default with all due diligence; or

                  (d)  should  any  obligation  of  Tenant  in  respect  of  any
         Indebtedness  for  money  borrowed  or for the  Retained  Funds  of any
         material property or services,  or any guaranty  relating  thereto,  be
         declared to be or become due and payable  prior to the stated  maturity
         thereof,  or should there occur and be  continuing  with respect to any
         such  Indebtedness  or  Retained  Funds any event of default  under any
         instrument or agreement  evidencing or securing the same, the effect of
         which  is to  permit  the  holder  or  holders  of such  instrument  or
         agreement or a trustee, agent or other representative on behalf of such
         holder or  holders,  to cause such any such  obligations  to become due
         prior to its stated maturity; or

                  (e) should an event of default occur and be continuing  beyond
         the  expiration  of  any  applicable  cure  period  under  any  of  the
         Incidental  Documents  or by Host or the Sellers  (as defined  therein)
         under the Purchase Agreement; or

                  (f) should there occur a final  unappealable  determination by
         applicable  State  authorities  of the  revocation or limitation of any
         material  license,  permit,  certification or approval required for the
         lawful  operation of any Hotel in accordance  with its Permitted Use or
         the  loss or  material  limitation  of any  material  license,  permit,
         certification  or approval  under any other  circumstances  under which
         Tenant or the Manager is required to cease its  operation of such Hotel
         in  accordance  with  its  Permitted  Use at the  time of such  loss or
         limitation; or

                  (g) should any  material  representation  or warranty  made by
         Tenant or the Sellers (as defined in the Purchase  Agreement)  under or
         in  connection  with this  Agreement,  any  Incidental  Document or the
         Purchase  Agreement,  or in  any  document,  certificate  or  agreement
         delivered in connection
<PAGE>
                                      -59-

         herewith or  therewith  prove to have been false or  misleading  in any
         material respect on the date when made or deemed made; or

                  (h) should  Tenant  generally  not be paying its debts as they
         become due or should Tenant make a general  assignment  for the benefit
         of creditors; or

                  (i) should any  petition be filed by or against  Tenant  under
         the  Federal  bankruptcy  laws,  or  should  any  other  proceeding  be
         instituted by or against  Tenant seeking to adjudicate it a bankrupt or
         insolvent,   or  seeking  liquidation,   reorganization,   arrangement,
         adjustment or  composition of it or its debts under any law relating to
         bankruptcy,  insolvency  or  reorganization  or relief of  debtors,  or
         seeking  the  entry of an order  for  relief  or the  appointment  of a
         receiver,  trustee,  custodian or other similar  official for Tenant or
         for any substantial  part of the property of Tenant and such proceeding
         is not dismissed within ninety (90) days after institution  thereof, or
         should Tenant take any action to authorize or effect any of the actions
         set forth above in this paragraph; or

                  (j) should  Tenant cause or institute any  proceeding  for its
         dissolution or termination; or

                  (k) should an event of default occur and be  continuing  under
         any mortgage which is secured by Tenant's  leasehold interest hereunder
         or  should  the  mortgagee  under  any  such  mortgage  accelerate  the
         indebtedness  secured  thereby  or  commence  a  foreclosure  action in
         connection with said mortgage; or

                  (l) should the estate or interest of Tenant in the  Collective
         Leased Properties or any part thereof be levied upon or attached in any
         proceeding  and the same shall not be vacated or discharged  within the
         later of (x) one  hundred  and twenty  (120)  days  after  commencement
         thereof,  unless the amount in dispute is less than $250,000,  in which
         case Tenant shall give notice to Landlord of the dispute but Tenant may
         defend in any suitable  way, and (y) thirty (30) days after  receipt by
         Tenant  of  Notice  thereof  from  Landlord
<PAGE>
                                      -60-

         (unless  Tenant shall be  contesting  such lien or  attachment  in good
         faith in accordance with Article 8); or

                  (m) should any Event of Default (as defined in the  Management
         Agreements) by Tenant as "Owner" under any Management  Agreement  occur
         and be continuing  beyond the expiration of any applicable  cure period
         under such Management Agreement; or

                  (n) should Tenant at any time cease to be a direct or indirect
         Subsidiary of Host; or

                  (o) should Tenant amend any provision of its charter documents
         with  respect  to  purposes,   management,   transfers  of   interests,
         separateness requirements,  or any provision which requires or provides
         for the consent of the independent member;

then,  and in any such  event,  Landlord,  in  addition  to all  other  remedies
available to it, may terminate  this Agreement with respect to any or all of the
Collective  Leased  Properties by giving  Notice  thereof to Tenant and upon the
expiration  of the time,  if any,  fixed in such Notice,  this  Agreement  shall
terminate with respect to those of the Collective Leased  Properties  designated
in such  notice  and all  rights of Tenant  under this  Agreement  with  respect
thereto  shall  cease.  Landlord  shall  have and may  exercise  all  rights and
remedies  available  at law and in equity to  Landlord  as a result of  Tenant's
breach of this Agreement, including, without limitation, the remedy described in
California Civil Code Section 1951.4, if applicable.

         Upon the  occurrence  of an Event of Default,  subject to the rights of
the Manager under the  Management  Agreements,  Landlord may, in addition to any
other remedies  provided herein,  enter upon the Collective Leased Properties or
any portion  thereof  and take  possession  of any and all of Tenant's  Personal
Property, if any, and the Records,  without liability for trespass or conversion
(Tenant  hereby  waiving any right to notice or hearing  prior to such taking of
possession  by  Landlord)  and sell the same at public or  private  sale,  after
giving Tenant  reasonable  Notice of the time and place of any public or private
sale,  at which sale  Landlord or its assigns may purchase all or any portion of
Tenant's Personal Property,  if any, unless otherwise  prohibited
<PAGE>
                                      -61-

by law. Unless  otherwise  provided by law and without  intending to exclude any
other manner of giving Tenant reasonable  notice,  the requirement of reasonable
Notice  shall be met if such  Notice is given at least five (5) days  before the
date of sale. The proceeds from any such disposition, less all expenses incurred
in  connection  with the  taking of  possession,  holding  and  selling  of such
property  (including,  reasonable  attorneys' fees) shall be applied as a credit
against the  indebtedness  which is secured by the security  interest granted in
Section 7.2. Any surplus shall be paid to Tenant or as otherwise required by law
and Tenant shall pay any  deficiency to Landlord,  as Additional  Charges,  upon
demand.

         12.2  Remedies.  None of (a) the  termination  of this  Agreement  with
respect to any or all of the Collective  Leased  Properties  pursuant to Section
12.1, (b) the  repossession  of any of the Collective  Leased  Properties or any
portion  thereof,  (c) the failure of Landlord to re-let any Leased  Property or
any  portion  thereof,  nor (d) the  reletting  of all or any of  portion of any
Leased  Property,   shall  relieve  Tenant  of  its  liability  and  obligations
hereunder,  all of which shall  survive any such  termination,  repossession  or
re-letting. In the event of any such termination,  Tenant shall forthwith pay to
Landlord all Rent due and payable with respect to the applicable Leased Property
through and including the date of such termination.  Thereafter,  Tenant,  until
the end of what would  have been the Term of this  Agreement  in the  absence of
such termination, and whether or not such Leased Property or any portion thereof
shall  have  been  re-let,  shall be liable to  Landlord  for,  and shall pay to
Landlord,  as current damages, the Rent and other charges which would be payable
hereunder for the remainder of the Term had such termination not occurred,  less
the net  proceeds,  if any, of any  re-letting  of such Leased  Property,  after
deducting all reasonable expenses in connection with such reletting,  including,
without  limitation,  all  repossession  costs,  brokerage  commissions,   legal
expenses, attorneys' fees, advertising,  expenses of employees, alteration costs
and expenses of preparation  for such  reletting.  Tenant shall pay such current
damages to  Landlord  monthly on the days on which the  Minimum  Rent would have
been payable hereunder if this Agreement had not been so terminated with respect
to such Leased Property.
<PAGE>
                                      -62-

         At any time after such termination,  whether or not Landlord shall have
collected any such current damages,  as liquidated final damages beyond the date
of such  termination,  at Landlord's  election,  Tenant shall pay to Landlord an
amount  equal to the present  value  (discounted  at the  Interest  Rate) of the
excess,  if any, of the Rent and other charges which would be payable  hereunder
from the date of such  termination  (assuming  that,  for the  purposes  of this
paragraph,  annual  payments by Tenant on account of Impositions  and Additional
Rent would be the same as payments required for the immediately preceding twelve
calendar  months,  or if less than twelve calendar months have expired since the
Commencement  Date, the payments required for such lesser period projected to an
annual  amount) for what would be the then  unexpired  term of this Agreement if
the same  remained in effect,  over the fair market  rental for the same period.
Nothing contained in this Agreement shall, however, limit or prejudice the right
of Landlord to prove and obtain in  proceedings  for bankruptcy or insolvency an
amount  equal to the maximum  allowed by any statute or rule of law in effect at
the time when,  and governing the  proceedings  in which,  the damages are to be
proved,  whether or not the amount be greater  than,  equal to, or less than the
amount of the loss or damages referred to above.

         In case of any Event of Default, re-entry, expiration and dispossession
by summary proceedings or otherwise,  Landlord may, subject to the rights of the
Manager under the Management  Agreements,  (a) relet any Leased  Property or any
part or parts thereof,  either in the name of Landlord or otherwise,  for a term
or terms which may at  Landlord's  option,  be equal to, less than or exceed the
period which would  otherwise have  constituted  the balance of the Term and may
grant concessions or free rent to the extent that Landlord  considers  advisable
and necessary to relet the same, and (b) may make such  reasonable  alterations,
repairs  and  decorations  in any  Leased  Property  or any  portion  thereof as
Landlord, in its sole and absolute discretion, considers advisable and necessary
for the  purpose  of  reletting  the  Leased  Property;  and the  making of such
alterations,  repairs  and  decorations  shall not  operate or be  construed  to
release  Tenant  from  liability  hereunder  as  aforesaid.  Subject to the last
sentence  of this  paragraph,  Landlord  shall in no event be  liable in any way
whatsoever  for any failure to relet all or any portion of any Leased  Property,
or, in the event that any Leased  Property is relet,  for failure to collect the
rent under such reletting.
<PAGE>
                                      -63-

To the maximum extent  permitted by law, Tenant hereby  expressly waives any and
all rights of  redemption  granted under any present or future laws in the event
of Tenant being evicted or dispossessed,  or in the event of Landlord  obtaining
possession of any Leased Property,  by reason of the occurrence and continuation
of an Event of Default hereunder. Landlord covenants and agrees, in the event of
any  termination  of this  Agreement as a result of an Event of Default,  to use
reasonable efforts to mitigate its damages.

         Notwithstanding  the foregoing,  in the case of any termination of this
Agreement  with respect to any Leased  Property  located in  California,  Tenant
shall forthwith pay to Landlord:

         (i)      The worth at the time of award of any  unpaid  Rent  which has
                  been earned at the time of such termination; plus

         (ii)     The  worth at the time of award  of the  amount  by which  the
                  unpaid  Rent which would have been  earned  after  termination
                  until the time of award exceeds the amount of such rental loss
                  Tenant proves reasonably could have been avoided; plus

         (iii)    The  worth at the time of award  of the  amount  by which  the
                  unpaid  Rent for the  balance  of the Term  after  the time of
                  award  exceeds  the  amount of such  rental  loss that  Tenant
                  proves reasonably could be avoided; and

         (iv)     Any other  amount  necessary  to  compensate  Landlord for all
                  detriment  proximately  caused by Tenant's  failure to perform
                  its  obligations  under this  Agreement  with  respect to such
                  Leased  Property  or which  in the  ordinary  course  would be
                  likely to result therefrom.

         As used in  subsections  (i) and (ii) above,  the "worth at the time of
award" is computed by allowing interest at the maximum rate allowable by law. As
used in subsection  (iii) above, the "worth at the time of award" is computed by
discounting  such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).

         12.3 Tenant's  Waiver.  IF THIS AGREEMENT IS TERMINATED WITH RESPECT TO
ANY OR ALL OF THE COLLECTIVE LEASED PROPERTIES
<PAGE>
                                      -64-

PURSUANT TO SECTION 12.1 OR 12.2, TENANT WAIVES, TO THE EXTENT PERMITTED BY LAW,
ANY RIGHT TO A TRIAL BY JURY IN THE EVENT OF SUMMARY  PROCEEDINGS TO ENFORCE THE
REMEDIES  SET  FORTH IN THIS  ARTICLE  12,  AND THE  BENEFIT  OF ANY LAWS NOW OR
HEREAFTER IN FORCE  EXEMPTING  PROPERTY FROM  LIABILITY FOR RENT OR FOR DEBT. IN
ADDITION,  TENANT  UNDERSTANDS,  ACKNOWLEDGES AND AGREES THAT, IN THE EVENT THIS
AGREEMENT IS  TERMINATED  PURSUANT TO SECTION 12.1 OR 12.2,  NEITHER THE INITIAL
RETAINED  FUNDS NOR THE OPTION  RETAINED FUNDS (AS SUCH TERMS ARE DEFINED IN THE
PURCHASE  AGREEMENT)  SHALL BE PAID OR  PAYABLE  (TENANT  WAIVING,  ON BEHALF OF
ITSELF AND ITS AFFILIATED PERSONS,  ALL CLAIMS AND CAUSES OF ACTION WITH RESPECT
THERETO).

         12.4 Application of Funds. Any payments  received by Landlord under any
of the provisions of this  Agreement  during the existence or continuance of any
Event of Default (and any payment made to Landlord rather than Tenant due to the
existence of any Event of Default) shall be applied to Tenant's current and past
due obligations  under this Agreement in such order as Landlord may determine or
as may be prescribed by the laws of any applicable State.

         12.5 Landlord's Right to Cure Tenant's Default.  If an Event of Default
shall have occurred and be continuing,  Landlord,  after Notice to Tenant (which
Notice shall not be required if Landlord shall  reasonably  determine  immediate
action is necessary to protect person or property), without waiving or releasing
any obligation of Tenant and without  waiving or releasing any Event of Default,
may (but shall not be obligated to), at any time  thereafter,  make such payment
or perform  such act for the account  and at the expense of Tenant,  and may, to
the maximum extent permitted by law, enter upon the Collective Leased Properties
or any portion  thereof for such purpose and take all such action thereon as, in
Landlord's  sole  and  absolute  discretion,  may be  necessary  or  appropriate
therefor.  No such entry shall be deemed an eviction of Tenant.  All  reasonable
costs and expenses (including,  without limitation,  reasonable attorneys' fees)
incurred by Landlord in connection therewith, together with interest thereon (to
the extent  permitted  by law) at the  Overdue  Rate from the date such sums are
paid by Landlord until repaid, shall be paid by Tenant to Landlord, on demand.
<PAGE>
                                      -65-

                                   ARTICLE 13

                                  HOLDING OVER

         Any holding over by Tenant after the  expiration or sooner  termination
of this  Agreement  shall be treated as a daily  tenancy at sufferance at a rate
equal to one and one-half (1.5) times the Rent and other charges herein provided
(prorated  on a daily  basis).  Tenant  shall also pay to  Landlord  all damages
(direct or indirect)  sustained by reason of any such holding  over.  Otherwise,
such  holding  over  shall be on the  terms  and  conditions  set  forth in this
Agreement,  to the extent applicable.  Nothing contained herein shall constitute
the consent, express or implied, of Landlord to the holding over of Tenant after
the expiration or earlier termination of this Agreement.

                                   ARTICLE 14

                 LANDLORD'S NOTICE OBLIGATIONS; LANDLORD DEFAULT

         14.1 Landlord Notice  Obligation.  Landlord shall give prompt Notice to
Tenant and the Manager of any matters affecting the Collective Leased Properties
of which Landlord receives written notice or actual knowledge and, to the extent
Tenant  otherwise has no notice or actual knowledge  thereof,  Landlord shall be
liable for any  liabilities  arising  from the failure to deliver such Notice to
Tenant.  Landlord shall not amend any Ground Lease, the Management Agreements or
any other agreement  affecting the Collective Leased Properties without Tenant's
prior  written  consent,  which  consent  shall  not be  unreasonably  withheld,
conditioned or delayed.

         14.2 Landlord's  Default.  If Landlord shall default in the performance
or observance of any of its covenants or obligations set forth in this Agreement
or any  obligation  of  Landlord,  if any,  under any  agreement  affecting  the
Collective  Leased  Properties,   the  performance  of  which  is  not  Tenant's
obligation pursuant to this Agreement, and any such default shall continue for a
period of ten (10) days after Notice  thereof with respect to monetary  defaults
and thirty (30) days after Notice thereof with respect to non-monetary  defaults
from Tenant to Landlord and any applicable Hotel  Mortgagee,  or such additional
period as may
<PAGE>
                                      -66-

be reasonably required to correct the same, Tenant may declare the occurrence of
a "Landlord Default" by a second Notice to Landlord and to such Hotel Mortgagee.
Thereafter, Tenant may forthwith cure the same and, subject to the provisions of
the  following  paragraph,  invoice  Landlord for costs and expenses  (including
reasonable  attorneys'  fees and court  costs)  incurred by Tenant in curing the
same,  together with interest thereon from the date Landlord  receives  Tenant's
invoice,  at the Overdue  Rate.  Tenant  shall have no right to  terminate  this
Agreement  for any  default by  Landlord  hereunder  and no right,  for any such
default,  to  offset  or  counterclaim  against  any Rent or other  charges  due
hereunder.

         If Landlord  shall in good faith dispute the occurrence of any Landlord
Default and Landlord, before the expiration of the applicable cure period, shall
give Notice thereof to Tenant,  setting forth, in reasonable  detail,  the basis
therefor,  no Landlord  Default  shall be deemed to have  occurred  and Landlord
shall have no obligation with respect thereto until final adverse  determination
thereof; provided, however, that in the event of any such adverse determination,
Landlord  shall pay to Tenant  interest on any  disputed  funds at the  Interest
Rate,  from the date demand for such funds was made by Tenant  until the date of
final adverse determination and, thereafter,  at the Overdue Rate until paid. If
Tenant and  Landlord  shall  fail,  in good faith,  to resolve any such  dispute
within ten (10) days after Landlord's  Notice of dispute,  either may submit the
matter for resolution to a court of competent jurisdiction.

                                   ARTICLE 15

                              INTENTIONALLY DELETED

                                   ARTICLE 16

                            SUBLETTING AND ASSIGNMENT

         16.1  Subletting  and  Assignment.  Except as provided in Section  16.3
below, Tenant shall not, without Landlord's prior written consent (which consent
may be given or withheld in Landlord's  sole and absolute  discretion),  assign,
mortgage, pledge, hypothecate,  encumber or otherwise transfer this
<PAGE>
                                      -67-

Agreement  or sublease  (which  term shall be deemed to include the  granting of
concessions,  licenses and the like),  all or any part of any of the  Collective
Leased  Properties or suffer or permit this  Agreement or the  leasehold  estate
created  hereby or any other rights arising under this Agreement to be assigned,
transferred,  mortgaged,  pledged,  hypothecated  or encumbered,  in whole or in
part, whether  voluntarily,  involuntarily or by operation of law, or permit the
use or operation of any of the Collective Leased Properties by anyone other than
Tenant and the Manager, or any of the Collective Leased Properties to be offered
or advertised for  assignment or subletting.  For purposes of this Section 16.1,
assignment  and/or  transfer  of this  Agreement  shall be deemed to include any
direct or  indirect  transfer of any  interest in Tenant such that Tenant  shall
cease to be a direct or indirect Subsidiary of Host or any transaction  pursuant
to which Tenant is merged or  consolidated  with  another  Entity or pursuant to
which all or  substantially  all of Tenant's assets are transferred to any other
Entity,  as if such change in control or transaction  were an assignment of this
Agreement.

         Notwithstanding the foregoing,  Landlord agrees that Landlord shall not
unreasonably withhold, delay or condition Landlord's consent to an assignment or
other transfer of this  Agreement by Tenant  provided that (i) the Manager shall
have granted its consent to such transfer and the  Management  Agreements  shall
remain in full  force  and  effect,  (ii) such  assignee  shall,  in  Landlord's
reasonable  determination,  have sufficient financial resources and liquidity to
fulfill  Tenant's  obligations  under this Agreement and shall be a,  so-called,
"bankruptcy  remote"  Entity,  and (iii) such assignee shall not be under common
control  with or  controlled  by persons  who have been  convicted  of  felonies
involving  moral  turpitude in any state or federal  court.  If Tenant wishes to
assign or  otherwise  transfer  this  Agreement  as provided in this  paragraph,
Tenant shall give Landlord Notice thereof (the "Request Notice"),  which Request
Notice shall  identify the proposed  transferee  and the terms and conditions of
the  assignment  or other  transfer and shall  include  appropriate  information
relating to such assignee  demonstrating  compliance with the provisions of this
paragraph.  Landlord shall,  within sixty (60) days after the giving the Request
Notice,  give Notice to Tenant (the  "Response  Notice") as to whether  Landlord
consents to such transfer.  Landlord  shall also have the right,  exercisable by
notice given in the Response Notice,  to require
<PAGE>
                                      -68-

Tenant to assign this  Agreement to a Person  designated by Landlord on the same
terms and  conditions as those  described in the Request  Notice for transfer to
Tenant's proposed transferee.

         If this Agreement is assigned or otherwise transferred or if any of the
Collective  Leased  Properties  or any part  thereof are sublet (or  occupied by
anybody other than Tenant, the Manager and their respective  employees) Landlord
may collect the rents from such assignee, subtenant or occupant, as the case may
be, and apply the net amount collected to the Rent herein reserved,  but no such
collection  shall be  deemed a waiver of the  provisions  set forth in the first
paragraph of this Section 16.1,  the  acceptance  by Landlord of such  assignee,
subtenant or occupant,  as the case may be, as a tenant,  or a release of Tenant
from  the  future  performance  by  Tenant  of  its  covenants,   agreements  or
obligations contained in this Agreement.

         No  subletting  or  assignment  shall in any way impair the  continuing
primary  liability of Tenant  hereunder  (unless  Landlord and Tenant  expressly
otherwise agree that Tenant shall be released from all  obligations  hereunder),
and no consent to any subletting or assignment in a particular instance shall be
deemed to be a waiver of the  prohibition  set forth in this  Section  16.1.  No
assignment,  subletting  or  occupancy  shall  affect  any  Permitted  Use.  Any
subletting,  assignment  or other  transfer  of  Tenant's  interest  under  this
Agreement in  contravention of this Section 16.1 shall be voidable at Landlord's
option.

         16.2 Required Sublease  Provisions.  Any sublease of all or any portion
of the  Collective  Leased  Properties  entered into on or after the date hereof
shall be consistent  with any applicable  terms and conditions of the Management
Agreements  and shall  provide  (a) that it is subject and  subordinate  to this
Agreement  and to the matters to which this  Agreement is or shall be subject or
subordinate;  (b) that in the event of  termination  in whole or in part of this
Agreement  or  reentry  or  dispossession  of  Tenant  by  Landlord  under  this
Agreement, Landlord may, at its option, terminate such sublease or take over all
of the right,  title and interest of Tenant,  as sublessor  under such sublease,
and such subtenant shall, at Landlord's  option,  attorn to Landlord pursuant to
the then executory provisions of such sublease, except that neither Landlord nor
any  Hotel  Mortgagee,  as  holder  of a  mortgage  or as  Landlord  under  this
Agreement, if such
<PAGE>
                                      -69-

mortgagee succeeds to that position, shall (i) be liable for any act or omission
of Tenant  under such  sublease,  (ii) be subject to any  credit,  counterclaim,
offset or defense which  theretofore  accrued to such subtenant  against Tenant,
(iii) be bound by any previous modification of such sublease not consented to in
writing by Landlord or by any previous  prepayment  of more than one (1) month's
Rent,  (iv) be bound by any  covenant of Tenant to  undertake  or  complete  any
construction of the Collective Leased Properties or any portion thereof,  (v) be
required to account for any  security  deposit of the  subtenant  other than any
security deposit actually delivered to Landlord by Tenant,  (vi) be bound by any
obligation  to make any payment to such  subtenant or grant any credits,  except
for  services,  repairs,  maintenance  and  restoration  provided  for under the
sublease  that  are  performed  after  the  date of such  attornment,  (vii)  be
responsible for any monies owing by Tenant to the credit of such  subtenant,  or
(viii) be required to remove any Person  occupying any portion of the Collective
Leased Properties;  and (c), in the event that such subtenant receives a written
Notice from Landlord or any Hotel Mortgagee stating that an Event of Default has
occurred and is continuing,  such subtenant shall thereafter be obligated to pay
all rentals  accruing  under such  sublease  directly  to the party  giving such
Notice or as such party may direct.  All rentals received from such subtenant by
Landlord or any Hotel  Mortgagee,  as the case may be, shall be credited against
the amounts owing by Tenant under this Agreement and such sublease shall provide
that the  subtenant  thereunder  shall,  at the request of  Landlord,  execute a
suitable  instrument in  confirmation  of such agreement to attorn.  An original
counterpart of each such sublease and assignment and  assumption,  duly executed
by  Tenant  and such  subtenant  or  assignee,  as the case may be,  in form and
substance  reasonably  satisfactory to Landlord,  shall be delivered promptly to
Landlord  and (a) in the case of an  assignment,  the  assignee  shall assume in
writing and agree to keep and perform all of the terms of this  Agreement on the
part of Tenant to be kept and  performed  and shall be, and become,  jointly and
severally  liable  with  Tenant for the  performance  thereof and (b) in case of
either an assignment or subletting,  Tenant 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 Tenant hereunder.
<PAGE>
                                      -70-

         The provisions of this Section 16.2 shall not be deemed a waiver of the
provisions set forth in the first paragraph of Section 16.1.

         16.3 Permitted Sublease.  Notwithstanding the foregoing, but subject to
the  provisions of Section 16.4 and any other express  conditions or limitations
set forth herein,  Tenant may, in each instance after Notice to Landlord (unless
otherwise  provided  in  the  Management  Agreements),  sublease  space  at  the
Collective Leased Properties for newsstand,  gift shop,  parking garage,  health
club,  restaurant,   bar  or  commissary  purposes  or  similar  concessions  in
furtherance of the Permitted  Use, so long as such  subleases do not demise,  in
the  aggregate,  in excess of three  thousand  (3,000) square feet at any Leased
Property,  will not  violate  or  affect  any  Legal  Requirement  or  Insurance
Requirement,  and  Tenant  shall  provide  such  additional  insurance  coverage
applicable to the activities to be conducted in such subleased space as Landlord
and any Hotel Mortgagee may reasonably require.

         16.4  Sublease  Limitation.  For so long as Landlord or any  Affiliated
Person as to Landlord shall seek to qualify as a real estate  investment  trust,
anything  contained in this  Agreement to the contrary  notwithstanding,  Tenant
shall not sublet or  otherwise  enter  into any  agreement  with  respect to any
Leased  Property  on any basis  such that the rental or other fees to be paid by
any sublessee  thereunder would be based, in whole or in part, on either (a) the
income or profits derived by the business  activities of such sublessee,  or (b)
any other  formula such that any portion of such  sublease  rental would fail to
qualify as "rents from real  property"  within the meaning of Section  856(d) of
the Code, or any similar or successor provision thereto.

                                   ARTICLE 17

                 ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS

         17.1 Estoppel Certificates. At any time and from time to time, upon not
less  than ten (10)  Business  Days  prior  Notice by  either  party,  the party
receiving  such  Notice  shall  furnish  to the other an  Officer's  Certificate
certifying  that this  Agreement is unmodified  and in full force and effect (or
that this
<PAGE>
                                      -71-

Agreement  is in full  force  and  effect  as  modified  and  setting  forth the
modifications),  the date to which the Rent has been paid, that no Default or an
Event of Default has occurred and is continuing  or, if a Default or an Event of
Default shall exist, specifying in reasonable detail the nature thereof, and the
steps being taken to remedy the same,  and such  additional  information  as the
requesting party may reasonably request. Any such certificate furnished pursuant
to this Section 17.1 may be relied upon by the requesting party, its lenders and
any prospective  purchaser or mortgagee of the Collective  Leased  Properties or
the leasehold estate created hereby.

         17.2   Financial   Statements.   Tenant  shall  furnish  the  following
statements to Landlord:

                  (a) within  forty-five (45) days after each of the first three
         quarters of any Fiscal Year,  the most recent  Consolidated  Financials
         and Financials, accompanied by the Financial Officer's Certificate;

                  (b) within ninety (90) days after the end of each Fiscal Year,
         the most recent  Consolidated  Financials and Financials for such year,
         certified by an  independent  certified  public  accountant  reasonably
         satisfactory  to Landlord  and  accompanied  by a  Financial  Officer's
         Certificate;

                  (c) within  thirty (30) days after the end of each  Accounting
         Period, an unaudited  operating  statement prepared on a Hotel by Hotel
         basis, including occupancy percentages and average rate, accompanied by
         a Financial Officer's Certificate;

                  (d) promptly  after the sending or filing  thereof,  copies of
         all reports which Tenant, Host or Host Marriott Hospitality, Inc. sends
         to its security holders  generally,  and copies of all periodic reports
         which Tenant,  Host or Host Marriott  Hospitality,  Inc. files with the
         SEC or any stock exchange on which its shares are listed or traded;

                  (e) promptly after the delivery  thereof to Tenant,  a copy of
         any  management  letter or written  report  prepared  by the  certified
         public accountants with respect to the
<PAGE>
                                      -72-

         financial condition, operations, business or prospects of Tenant;

                  (f) at any  time  and from  time to time  upon  not less  than
         forty-five (45) days Notice from Landlord, any Consolidated  Financials
         or any other financial  reporting  information  required to be filed by
         Landlord with any  securities and exchange  commission,  the SEC or any
         successor  agency,  or any other  governmental  authority,  or required
         pursuant to any order  issued by any court,  governmental  authority or
         arbitrator in any litigation to which Landlord is a party, for purposes
         of compliance therewith, provided that Landlord shall pay for any costs
         incurred by Tenant in connection with the preparation of the same; and

                  (g)   promptly,   upon  Notice  from   Landlord,   such  other
         information concerning the business, financial condition and affairs of
         Tenant as Landlord reasonably may request from time to time.

Landlord  may at any time,  and from time to time,  provide any Hotel  Mortgagee
with copies of any of the foregoing statements.

         In  addition,  Landlord  shall  have the  right,  from  time to time at
Landlord's  sole cost and  expense,  upon  reasonable  Notice,  during  Tenant's
customary  business  hours,  to cause Tenant's books and records with respect to
any of the Collective  Leased  Properties to be audited by auditors  selected by
Landlord at the place where such books and records are customarily kept.

         17.3  General Operations.  Tenant shall furnish to Landlord:

                  (a)  Within  thirty  (30) days after  receipt or  modification
         thereof,  copies of all licenses  authorizing Tenant and/or the Manager
         to operate each of the Hotels for its Permitted Use;

                  (b) Not less than thirty (30) days after the  commencement  of
         any Fiscal  Year,  proposed  annual  income and  ordinary  expense  and
         capital  improvement  budgets setting forth projected  income and costs
         and expenses  projected  to be incurred by Tenant in managing,  owning,
         maintaining and
<PAGE>
                                      -73-

         operating the Hotels during the next succeeding Fiscal Year; and

                  (c) Promptly after receipt or sending  thereof,  copies of all
         notices given or received by Tenant under the Management Agreements.

                                   ARTICLE 18

                           LANDLORD'S RIGHT TO INSPECT

         Tenant shall permit,  and shall direct the Manager to permit,  Landlord
and its authorized  representatives  to inspect the Collective Leased Properties
during usual  business hours upon not less than  twenty-four  (24) hours' notice
and to make such repairs as Landlord is  permitted or required to make  pursuant
to the  terms of this  Agreement,  provided  that any  inspection  or  repair by
Landlord or its representatives will not unreasonably interfere with Tenant's or
the Manager's use and operation of the Collective  Leased Properties and further
provided  that in the event of an  emergency,  as  determined by Landlord in its
reasonable discretion, prior Notice shall not be necessary.

                                   ARTICLE 19

                              INTENTIONALLY DELETED

                                   ARTICLE 20

                                 HOTEL MORTGAGES

         20.1 Landlord May Grant Liens. Without the consent of Tenant,  Landlord
may,  subject to the terms and conditions  set forth in this Section 20.1,  from
time to time,  directly or  indirectly,  create or otherwise  cause to exist any
lien,  encumbrance or title retention agreement  ("Encumbrance") upon any Leased
Property,  or any  portion  thereof or interest  therein,  whether to secure any
borrowing  or other means of financing or  refinancing,  provided  that any such
Encumbrance  shall be  consistent  with the  requirements  of  Article  6 of the
applicable Management
<PAGE>
                                      -74-

Agreements.  Any such Encumbrance  shall include the right to prepay (whether or
not subject to a prepayment penalty) and shall provide (subject to Section 20.2)
that it is subject to the rights of Tenant under this Agreement.

         20.2  Subordination of Lease.  Subject to Section 20.1 and this Section
20.2, this Agreement,  any and all rights of Tenant hereunder,  are and shall be
subject  and  subordinate  to any  ground or  master  lease,  and all  renewals,
extensions,  modifications  and replacements  thereof,  and to all mortgages and
deeds of trust,  which may now or  hereafter  affect any Leased  Property or any
improvements thereon and/or any of such leases, whether or not such mortgages or
deeds of trust shall also cover other lands and/or buildings  and/or leases,  to
each and every  advance made or hereafter  to be made under such  mortgages  and
deeds of trust, and to all renewals, modifications,  replacements and extensions
of such leases and such mortgages and deeds of trust and all  consolidations  of
such mortgages and deeds of trust. This section shall be  self-operative  and no
further instrument of subordination  shall be required.  In confirmation of such
subordination,  Tenant  shall  promptly  execute,  acknowledge  and  deliver any
instrument  that Landlord,  the lessor under any such lease or the holder of any
such mortgage or the trustee or beneficiary of any deed of trust or any of their
respective  successors  in interest  may  reasonably  request to  evidence  such
subordination.  Any lease to which this  Agreement  is, at the time referred to,
subject and  subordinate is herein called  "Superior  Lease" and the lessor of a
Superior  Lease or its  successor in interest at the time referred to, is herein
called  "Superior  Landlord"  and any  mortgage  or deed of trust to which  this
Agreement is, at the time referred to, subject and subordinate, is herein called
"Superior  Mortgage"  and the  holder,  trustee  or  beneficiary  of a  Superior
Mortgage is herein called "Superior Mortgagee". Tenant shall have no obligations
under any Superior  Lease or Superior  Mortgage  other than those  expressly set
forth in this Section 20.2.

         If any  Superior  Landlord  or  Superior  Mortgagee  or the  nominee or
designee of any Superior  Landlord or Superior  Mortgagee  shall  succeed to the
rights of Landlord under this Agreement (any such person, "Successor Landlord"),
whether through  possession or foreclosure  action or delivery of a new lease or
deed, or otherwise,  such Successor  Landlord shall
<PAGE>
                                      -75-

recognize  Tenant's  rights under this  Agreement as herein  provided and Tenant
shall attorn to and recognize the Successor  Landlord as Tenant's landlord under
this Agreement and Tenant shall promptly execute and deliver any instrument that
such  Successor  Landlord may  reasonably  request to evidence  such  attornment
(provided  that such  instrument  does not  alter the terms of this  Agreement),
whereupon,  this  Agreement  shall continue in full force and effect as a direct
lease  between  the  Successor  Landlord  and  Tenant  upon  all of  the  terms,
conditions  and  covenants as are set forth in this  Agreement,  except that the
Successor  Landlord  (unless  formerly the landlord  under this Agreement or its
nominee or designee) shall not be (a) liable in any way to Tenant for any act or
omission,  neglect  or  default  on the part of any prior  Landlord  under  this
Agreement,  (b) responsible for any monies owing by or on deposit with any prior
Landlord  to the  credit  of  Tenant  (except  to the  extent  actually  paid or
delivered to the Successor Landlord),  (c) subject to any counterclaim or setoff
which theretofore accrued to Tenant against any prior Landlord, (d) bound by any
modification of this Agreement subsequent to such Superior Lease or Mortgage, or
by any previous  prepayment of Minimum Rent or Additional Rent for more than one
(1)  month in  advance  of the date due  hereunder,  which was not  approved  in
writing by the Superior Landlord or the Superior Mortgagee  thereto,  (e) liable
to Tenant  beyond the Successor  Landlord's  interest in the  Collective  Leased
Properties and the rents, income, receipts, revenues, issues and profits issuing
from the Leased Property,  (f) responsible for the performance of any work to be
done by the Landlord  under this  Agreement to render any Leased  Property ready
for  occupancy  by Tenant  (subject  to  Landlord's  obligations  under  Section
5.1.2(b) or with respect to any  insurance  or  Condemnation  proceeds),  or (g)
required to remove any Person occupying any Leased Property or any part thereof,
except if such person claims by, through or under the Successor Landlord. Tenant
agrees at any time and from time to time to  execute a  suitable  instrument  in
confirmation of Tenant's  agreement to attorn,  as aforesaid and Landlord agrees
to provide Tenant with an instrument of nondisturbance  and attornment from each
such Superior  Mortgagee and Superior  Landlord (other than the lessor under any
Ground  Lease)  in  form  and  substance  reasonably   satisfactory  to  Tenant.
Notwithstanding  the  foregoing,  any Successor  Landlord shall be liable (a) to
pay,  as and when  required  by the  Purchase  Agreement,  to  Tenant a pro rata
portion of the Retained Funds (as such term is defined in the
<PAGE>
                                      -76-

Purchase  Agreement) in accordance with the terms of the Purchase  Agreement and
this  Agreement,  including  Article 15, if and to the extent that the rights of
the Sellers under the Purchase  Agreement  with respect to such  Retained  Funds
shall have been assigned to Tenant,  (b) to pay to Tenant any amounts owed under
Section 5.1.2(b), and (c) to pay to Tenant any portions of insurance proceeds or
Awards  received by Landlord or the  Successor  Landlord  required to be paid to
Tenant  pursuant to the terms of this  Agreement,  and,  as a  condition  to any
mortgage, lien or lease in respect of the Collective Leased Properties,  and the
subordination of this Agreement thereto, the mortgagee, lienholder or lessor, as
applicable,  shall  expressly  agree,  for the  benefit of Tenant,  to make such
payments,  which agreement shall be embodied in an instrument in form reasonably
satisfactory to Tenant.

         20.3  Notices.  Subsequent  to the  receipt  by Tenant  of Notice  from
Landlord as to the  identity of any Hotel  Mortgagee  or ground  lessor  under a
lease with  Landlord,  as ground lessee,  which includes any Leased  Property as
part of the demised  premises  and which  complies  with  Section  20.1 and 20.2
(which  Notice  shall be  accompanied  by a copy of the  applicable  mortgage or
lease),  no notice from Tenant to Landlord as to such Leased  Property  shall be
effective  unless and until a copy of the same is given to such Hotel  Mortgagee
or ground lessor at the address set forth in the above described Notice, and the
curing of any of  Landlord's  defaults by such Hotel  Mortgagee or ground lessor
shall be treated as performance by Landlord.

         20.4  Transfer of Collective  Leased  Properties.  Landlord  shall not,
without the consent of Tenant, transfer the Collective Leased Properties, or any
interest  therein to any Person which:  (i) does not have  sufficient  financial
resources and liquidity to fulfill  "Owner's"  obligations  under the Management
Agreements;  (ii) is in  control  of or  controlled  by  Persons  who have  been
convicted of felonies  involving  moral turpitude in any state or federal court;
or  (iii)  is  engaged  in  the  business  of  operating  or   franchising   (as
distinguished  from owning) a branded hotel chain having fifteen hundred (1,500)
or more guest rooms in  competition  with the Manager.  An  individual or entity
shall not be deemed to be in the  business of  operating  hotels in  competition
with the Manager  solely by virtue of (x) the  ownership of such hotels,  either
directly or indirectly through
<PAGE>
                                      -77-

subsidiaries,  affiliates  and  partnerships,  or  (y)  holding  a  mortgage  or
mortgages  secured by one or more hotels.  Landlord may transfer the  Collective
Leased  Properties,  or any interest  therein,  to any other Person  without the
consent of Tenant.

                                   ARTICLE 21

                         ADDITIONAL COVENANTS OF TENANT

         21.1 Prompt Payment of  Indebtedness.  Tenant shall (a) pay or cause to
be paid when due all  payments  of  principal  of and  premium  and  interest on
Tenant's Indebtedness for money borrowed and shall not permit or suffer any such
Indebtedness to become or remain in default beyond any applicable  grace or cure
period,  (b) pay or cause to be paid when due all  lawful  claims  for labor and
rents,  (c) pay or cause to be paid when due all trade  payables  and (d) pay or
cause to be paid when due all other of Tenant's Indebtedness upon which it is or
becomes  obligated,  except, in each case, other than that referred to in clause
(a),  to the extent  payment  is being  contested  in good faith by  appropriate
proceedings  in accordance  with Article 8 and if Tenant shall have set aside on
its books  adequate  reserves with respect  thereto in accordance  with GAAP, if
appropriate,  or unless and until  foreclosure,  distraint sale or other similar
proceedings shall have been commenced.

         21.2 Conduct of Business. Tenant shall not engage in any business other
than the leasing and operation of the Collective  Leased Properties and shall do
or cause to be done all things  necessary  to  preserve,  renew and keep in full
force and effect and in good  standing its existence and its rights and licenses
necessary to conduct such business.

         21.3  Maintenance  of  Accounts  and  Records.  Tenant  shall keep true
records and books of account of Tenant in which full,  true and correct  entries
will be made of  dealings  and  transactions  in relation  to the  business  and
affairs of Tenant in accordance with GAAP, where applicable,  Tenant shall apply
accounting  principles in the preparation of the financial  statements of Tenant
which, in the judgment of and the opinion of its independent public accountants,
are in accordance with GAAP,  where  applicable,  except for changes approved by
such independent
<PAGE>
                                      -78-

public accountants. Tenant shall provide to Landlord either in a footnote to the
financial  statements delivered under Section 17.2 which relate to the period in
which such change occurs, or in separate schedules to such financial statements,
information  sufficient to show the effect of any such changes on such financial
statements.

         21.4 Notice of  Litigation,  Etc.  Tenant  shall give prompt  Notice to
Landlord of any  litigation  or any  administrative  proceeding  to which it may
hereafter  become a party of which Tenant has notice or actual  knowledge  which
involves a  potential  liability  equal to or  greater  than Two  Hundred  Fifty
Thousand  Dollars  ($250,000)  or which may  otherwise  result  in any  material
adverse  change in the business,  operations,  property,  prospects,  results of
operation or condition,  financial or other,  of Tenant.  Forthwith  upon Tenant
obtaining knowledge of any Default,  Event of Default or any default or event of
default under any agreement  relating to  Indebtedness  for money borrowed in an
aggregate amount exceeding,  at any one time, Two Hundred Fifty Thousand Dollars
($250,000),  or any event or condition that would be required to be disclosed in
a current report filed by Tenant on Form 8-K or in Part II of a quarterly report
on Form 10-Q if Tenant were required to file such reports  under the  Securities
Exchange  Act of 1934,  as  amended,  Tenant  shall  furnish  Notice  thereof to
Landlord  specifying the nature and period of existence  thereof and what action
Tenant has taken or is taking or proposes to take with respect thereto.

         21.5 Indebtedness of Tenant.  Tenant shall not create, incur, assume or
guarantee, or permit to exist, or become or remain liable directly or indirectly
upon, any Indebtedness except the following:

                  (a) Indebtedness of Tenant to Landlord;

                  (b) Indebtedness of Tenant for Impositions, to the extent that
         payment  thereof  shall  not at the  time  be  required  to be  made in
         accordance with the provisions of Article 8;

                  (c)  Indebtedness  of Tenant in respect of judgments or awards
         (i) which have been in force for less than the applicable appeal period
         and in  respect  of which  execution
<PAGE>
                                      -79-

         thereof shall have been stayed  pending such appeal or review,  or (ii)
         which are fully covered by insurance  payable to Tenant, or (iii) which
         are for an amount not in excess of $250,000 in the aggregate at any one
         time  outstanding  and (x) which have been in force for not longer than
         the  applicable  appeal  period,  so long as  execution  is not  levied
         thereunder  or (y) in  respect  of which an appeal or  proceedings  for
         review shall at the time be prosecuted in good faith in accordance with
         the provisions of Article 8, and in respect of which execution  thereof
         shall have been stayed pending such appeal or review;

                  (d) unsecured borrowings of Tenant from its Affiliated Persons
         which  are  by  their  terms  expressly   subordinate   pursuant  to  a
         Subordination  Agreement  to the  payment and  performance  of Tenant's
         obligations under this Agreement; or

                  (e)  Indebtedness  for purchase money  financing in accordance
         with Section  21.9(a) and other operating  liabilities  incurred in the
         ordinary course of Tenant's business.

         21.6 Financial Condition of Tenant.  Tenant shall at all times maintain
Tangible Net Worth  (except as provided in the last clause of this  sentence) in
an amount at least equal to the  aggregate  of one year's  Minimum  Rent payable
pursuant to this Agreement;  it being  expressly  understood and agreed that the
sum of the Initial Retained Funds (as defined in the Purchase Agreement) and the
Option  Retained  Funds (as  defined  in the  Purchase  Agreement)  may for such
purpose be  counted as equity at the full  amount  thereof if such  amounts  are
contributed to Tenant.

         21.7 Distributions,  Payments to Affiliated Persons,  Etc. Tenant shall
not declare,  order, pay or make,  directly or indirectly,  any Distributions or
any  payment  to any  Affiliated  Person of Tenant  (including  payments  in the
ordinary course of business and payments pursuant to management  agreements with
any such Affiliated Person) or set apart any sum or property therefor,  or agree
to do so, if, at the time of such proposed action,  or immediately  after giving
effect thereto, any Event of Default shall exist.
<PAGE>
                                      -80-

         21.8 Prohibited Transactions. Tenant shall not permit to exist or enter
into any agreement or  arrangement  whereby it engages in a  transaction  of any
kind with any  Affiliated  Person as to Tenant,  except on terms and  conditions
which are commercially reasonable.

         21.9 Liens and Encumbrances. Except as permitted by Section 7.1, Tenant
shall not create or incur or suffer to be created  or  incurred  or to exist any
Lien on this Agreement or any of Tenant's assets, properties,  rights or income,
or any of its interest therein, now or at any time hereafter owned, other than:

                  (a)  Security   interests   securing  the  purchase  price  of
         equipment or personal  property  whether  acquired  before or after the
         Commencement Date; provided,  however,  that (i) such Lien shall at all
         times  be  confined  solely  to the  asset  in  question  and  (ii) the
         aggregate  principal  amount of  Indebtedness  secured by any such Lien
         shall  not  exceed  the  cost of  acquisition  or  construction  of the
         property subject thereto;

                  (b)  Permitted Encumbrances; and

                  (c)  As permitted pursuant to Section 21.5.

         21.10 Merger; Sale of Assets; Etc. Tenant shall not (i) sell, lease (as
lessor or sublessor),  transfer or otherwise dispose of, or abandon,  all or any
material portion of its assets (including capital stock or beneficial interests)
or business to any Person, (ii) merge into or with or consolidate with any other
Entity,  or (iii) sell,  lease (as lessor or  sublessor),  transfer or otherwise
dispose of, or abandon,  any personal property or fixtures or any real property;
provided,   however,  that,  notwithstanding  the  provisions  of  clause  (iii)
preceding,  Tenant may  dispose  of  equipment  or  fixtures  which have  become
inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary, provided
substitute  equipment or fixtures having equal or greater value and utility (but
not necessarily having the same function) have been provided.
<PAGE>
                                      -81-

                                   ARTICLE 22

                                  MISCELLANEOUS

         22.1 Limitation on Payment of Rent. All agreements between Landlord and
Tenant herein are hereby  expressly  limited so that in no  contingency or event
whatsoever,  whether by reason of acceleration of Rent, or otherwise,  shall the
Rent or any other amounts  payable to Landlord under this  Agreement  exceed the
maximum  permissible  under applicable law, the benefit of which may be asserted
by Tenant as a defense, and if, from any circumstance whatsoever, fulfillment of
any provision of this Agreement, at the time performance of such provision shall
be due, shall involve  transcending the limit of validity  prescribed by law, or
if from any  circumstances  Landlord  should ever receive as fulfillment of such
provision such an excessive amount,  then, ipso facto, the amount which would be
excessive  shall be applied to the  reduction of the  installment(s)  of Minimum
Rent next due and not to the payment of such  excessive  amount.  This provision
shall control every other  provision of this Agreement and any other  agreements
between Landlord and Tenant.

         22.2 No Waiver.  No failure by  Landlord  or Tenant 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 maximum extent  permitted by law, no
waiver of any breach shall affect or alter this Agreement,  which shall continue
in full force and effect with respect to any other then  existing or  subsequent
breach.

         22.3 Remedies Cumulative.  To the maximum extent permitted by law, each
legal,  equitable or contractual  right, power and remedy of Landlord or Tenant,
now or hereafter  provided  either in this Agreement 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
Landlord or Tenant (as applicable) of any one or more of such rights, powers and
remedies shall not preclude the simultaneous or subsequent  exercise by Landlord
of any or all of such other rights, powers and remedies.
<PAGE>
                                      -82-

         22.4  Severability.   Any  clause,  sentence,   paragraph,  section  or
provision  of this  Agreement  held by a court of competent  jurisdiction  to be
invalid,  illegal or  ineffective  shall not impair,  invalidate  or nullify the
remainder of this Agreement,  but rather the effect thereof shall be confined to
the clause,  sentence,  paragraph,  section or  provision so held to be invalid,
illegal  or  ineffective,  and  this  Agreement  shall be  construed  as if such
invalid, illegal or ineffective provisions had never been contained therein.

         22.5  Acceptance  of  Surrender.  No  surrender  to  Landlord  of  this
Agreement or of any of the Collective Leased Properties or any part thereof,  or
of any  interest  therein,  shall be valid or  effective  unless  agreed  to and
accepted in writing by Landlord and no act by Landlord or any  representative or
agent of  Landlord,  other than such a written  acceptance  by  Landlord,  shall
constitute an acceptance of any such surrender.

         22.6 No Merger of Title. It is expressly  acknowledged  and agreed that
it is the intent of the parties that there shall be no merger of this  Agreement
or of the leasehold  estate  created  hereby by reason of the fact that the same
Person may acquire,  own or hold,  directly or indirectly  this Agreement or the
leasehold estate created hereby and the fee estate or ground landlord's interest
in the Collective Leased Properties.

         22.7 Conveyance by Landlord.  If Landlord or any successor owner of all
or any  portion of the  Collective  Leased  Properties  shall  convey all or any
portion of the Collective  Leased Properties in accordance with the terms hereof
other than as security for a debt,  and the grantee or transferee of such of the
Collective  Leased Properties shall expressly assume all obligations of Landlord
hereunder  arising or  accruing  from and after the date of such  conveyance  or
transfer,  Landlord or such successor owner, as the case may be, shall thereupon
be released from all future  liabilities  and obligations of Landlord under this
Agreement with respect to such of the Collective  Leased Properties that were so
conveyed by Landlord or such successor owner, arising or accruing from and after
the date of such  conveyance or other  transfer and all such future  liabilities
and obligations shall thereupon be binding upon the new owner.
<PAGE>
                                      -83-

         22.8 Quiet  Enjoyment.  Provided  that no Event of  Default  shall have
occurred and be continuing,  Tenant shall  peaceably and quietly have,  hold and
enjoy the  Collective  Leased  Properties  for the Term,  free of  hindrance  or
molestation by Landlord or anyone  claiming by, through or under  Landlord,  but
subject to (a) any Encumbrance permitted under Article 20 or otherwise permitted
to be created by Landlord hereunder,  (b) all Permitted Encumbrances,  (c) liens
as to  obligations  of  Landlord  that are either not yet due or which are being
contested  in good  faith and by proper  proceedings,  provided  the same do not
materially  interfere  with Tenant's  ability to operate the Hotel and (d) liens
that have been consented to in writing by Tenant.  Except as otherwise  provided
in this Agreement,  no failure by Landlord to comply with the foregoing covenant
shall give  Tenant any right to cancel or  terminate  this  Agreement  or abate,
reduce  or make a  deduction  from or offset  against  the Rent or any other sum
payable  under this  Agreement,  or to fail to perform any other  obligation  of
Tenant hereunder.

         22.9 Memorandum of Lease. Neither Landlord nor Tenant shall record this
Agreement.  However, Landlord and Tenant shall promptly, upon the request of the
other,  enter into a short form memorandum of this  Agreement,  in form suitable
for recording  under the laws of the State in which reference to this Agreement,
and all options contained herein, shall be made. The parties shall share equally
all costs and expenses of recording such memorandum.

         22.10  Notices.

                  (a) Any and all notices, demands, consents, approvals, offers,
         elections  and other  communications  required or permitted  under this
         Agreement shall be deemed  adequately  given if in writing and the same
         shall  be  delivered   either  in  hand,  by  telecopier  with  written
         acknowledgment  of  receipt,  or by mail or Federal  Express or similar
         expedited commercial carrier, addressed to the recipient of the notice,
         postpaid and registered or certified with return receipt  requested (if
         by mail), or with all freight charges prepaid (if by Federal Express or
         similar carrier).
<PAGE>
                                      -84-

                  (b) All notices  required or  permitted  to be sent  hereunder
         shall be deemed to have been given for all  purposes of this  Agreement
         upon  the date of  acknowledged  receipt,  in the  case of a notice  by
         telecopier,  and,  in all  other  cases,  upon the date of  receipt  or
         refusal,  except that whenever  under this Agreement a notice is either
         received  on a day which is not a  Business  Day or is  required  to be
         delivered on or before a specific day which is not a Business  Day, the
         day of receipt or required delivery shall  automatically be extended to
         the next Business Day.

                  (c)  All such notices shall be addressed,

         if to Landlord to:

                  c/o Hospitality Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attn:  Mr. John G. Murray
                  [Telecopier No. (617) 969-5730]

         with a copy to:

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attn:  Jennifer B. Clark, Esq.
                  [Telecopier No. (617) 338-2880]

         if to Tenant to:

                  c/o HMH HPT Courtyard LLC
                  Host Marriott Corporation
                  10400 Fernwood Road
                  Bethesda, Maryland  20817
                  Attn: Chief Operating Officer
                  [Telecopier No. (301) 380-6338]
<PAGE>
                                      -85-

           with a copy to:

                  Host Marriott Corporation
                  10400 Fernwood Road
                  Bethesda, Maryland  20817
                  Attn: General Counsel
                  [Telecopier No. (301)380-3588]

                  (d) By notice given as herein provided, the parties hereto and
         their  respective  successor and assigns shall have the right from time
         to time and at any time  during  the term of this  Agreement  to change
         their respective  addresses effective upon receipt by the other parties
         of such  notice and each shall have the right to specify as its address
         any other address within the United States of America.

         22.11 Construction;  Nonrecourse.  Anything contained in this Agreement
to the contrary notwithstanding,  all claims against, and liabilities of, Tenant
or Landlord  arising  prior to any date of  termination  or  expiration  of this
Agreement with respect to the Collective  Leased  Properties  shall survive such
termination  or  expiration.  In no  event  shall  Landlord  be  liable  for any
consequential  damages  suffered  by  Tenant  as the  result of a breach of this
Agreement by Landlord.  Neither this  Agreement nor any provision  hereof may be
changed,  waived,  discharged or  terminated  except by an instrument in writing
signed  by the  party  to be  charged.  All the  terms  and  provisions  of this
Agreement  shall be binding upon and inure to the benefit of the parties  hereto
and their  respective  successors  and  assigns.  Each term or provision of this
Agreement  to be  performed  by  Tenant  shall be  construed  as an  independent
covenant and  condition.  Time is of the essence with respect to the exercise of
any rights of Tenant under this Agreement. Except as otherwise set forth in this
Agreement,  any  obligations  of  Tenant  (including  without  limitation,   any
monetary, repair and indemnification obligations) and Landlord shall survive the
expiration or sooner  termination of this Agreement.  Whenever it is provided in
this Agreement  that Tenant shall direct the Manager to take any action,  Tenant
shall not be deemed to have satisfied such  obligation  unless Tenant shall have
exhausted  all  applicable  rights and  remedies of Tenant as "Owner"  under the
Management  Agreements.  Except as otherwise  expressly provided with respect to
the Retained Funds (as such term is defined in the Purchase Agreement),  nothing

<PAGE>
                                      -86-

contained in this Agreement (including,  without limitation,  Section 3.5) shall
be  construed to create or impose any  liabilities  or  obligations  and no such
liabilities  or  obligations  shall be  imposed  on any of the  shareholders  or
beneficial owners, direct or indirect, of Landlord or Tenant (including, but not
limited,  Host) for the payment or performance of the obligations or liabilities
of Landlord or Tenant hereunder.

         22.12 Counterparts;  Headings. This Agreement may be executed in two or
more counterparts,  each of which shall constitute an original,  but which, when
taken together,  shall  constitute but one instrument and shall become effective
as of the date hereof when copies hereof,  which, when taken together,  bear the
signatures  of each of the parties  hereto shall have been  signed.  Headings in
this  Agreement are for purposes of reference only and shall not limit or affect
the meaning of the provisions hereof.

         22.13  Applicable  Law,  Etc.  This  Agreement  shall  be  interpreted,
construed,  applied  and  enforced in  accordance  with the laws of the State of
Maryland  applicable to contracts between residents of the State which are to be
performed  entirely within the State,  regardless of (i) where this Agreement is
executed or delivered;  or (ii) where any payment or other performance  required
by this  Agreement is made or required to be made;  or (iii) where any breach of
any  provision  of this  Agreement  occurs,  or any  cause of  action  otherwise
accrues;  or (iv) where any action or other proceeding is instituted or pending;
or (v) the nationality,  citizenship,  domicile, principal place of business, or
jurisdiction of organization or  domestication of any party; or (vi) whether the
laws of the forum jurisdiction  otherwise would apply the laws of a jurisdiction
other than the State of Maryland;  or (vii) any  combination  of the  foregoing.
Notwithstanding  the  foregoing,  the  laws of the  State in  which  any  Leased
Property is located shall apply to the perfection and priority of liens upon and
the disposition of such Leased Property.

         To the  maximum  extent  permitted  by  applicable  law,  any action to
enforce,  arising out of, or relating  in any way to, any of the  provisions  of
this  Agreement may be brought and prosecuted in such court or courts located in
the State of  Maryland as is  provided  by law;  and the parties  consent to the
jurisdiction  of
<PAGE>
                                      -87-

said court or courts  located in the State of  Maryland  and to
service of process by registered mail, return receipt requested, or by any other
manner provided by law.

         22.14 Right to Make  Agreement.  Each party  warrants,  with respect to
itself,  that neither the execution of this Agreement,  nor the  consummation of
any transaction  contemplated hereby, shall violate any provision of any law, or
any judgment,  writ,  injunction,  order or decree of any court or  governmental
authority having  jurisdiction  over it; nor 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; nor require any consent, vote or approval
which has not been given or taken,  or at the time of the  transaction  involved
shall not have 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.

         22.15  Nonliability of Trustees.  THE DECLARATION OF TRUST ESTABLISHING
EACH ENTITY COMPRISING LANDLORD,  A COPY OF WHICH,  TOGETHER WITH ALL AMENDMENTS
THERETO (EACH A "DECLARATION"), IS DULY FILED WITH THE DEPARTMENT OF ASSESSMENTS
AND  TAXATION  OF THE STATE OF  MARYLAND,  PROVIDES  THAT THE NAME  "HOSPITALITY
PROPERTIES  TRUST" or "HPTCY  PROPERTIES  TRUST" (AS  APPLICABLE)  REFERS TO THE
TRUSTEES  UNDER THE APPLICABLE  DECLARATION  COLLECTIVELY  AS TRUSTEES,  BUT NOT
INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER, SHAREHOLDER,  EMPLOYEE
OR AGENT  OF  LANDLORD  SHALL  BE HELD TO ANY  PERSONAL  LIABILITY,  JOINTLY  OR
SEVERALLY,  FOR ANY  OBLIGATION  OF, OR CLAIM  AGAINST,  LANDLORD.  ALL  PERSONS
DEALING WITH LANDLORD, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF LANDLORD FOR
THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

<PAGE>
                                      -88-

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

                                    LANDLORD:

                                    HOSPITALITY PROPERTIES TRUST

                                    By: /s/ Thomas M. O'Brien
                                       Its Treasurer

                                    HPTCY PROPERTIES TRUST

                                    By: /s/ Thomas M. O'Brien
                                        Its (Vice) President

                                    TENANT:

                                    HMH HPT COURTYARD LLC

                                    By: /s/
                                       Its (Vice) President

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