<PAGE>
EXHIBIT 99.1
COMBINED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
NOBLE INVESTMENTS HOTELS
DECEMBER 31, 1998 AND JULY 31, 1999
<PAGE>
Noble Investments Hotels
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS
COMBINED BALANCE SHEETS AS OF DECEMBER 31, 1998
AND JULY 31, 1999 4
COMBINED STATEMENTS OF OPERATIONS FOR THE YEAR
ENDED DECEMBER 31, 1998 AND THE SEVEN MONTHS
ENDED JULY 31, 1999 5
COMBINED STATEMENTS OF SHAREHOLDERS'/PARTNERS'
EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 1998
AND THE SEVEN MONTHS ENDED JULY 31, 1999 6
COMBINED STATEMENTS OF CASH FLOWS FOR THE YEAR
ENDED DECEMBER 31, 1998 AND THE SEVEN MONTHS
ENDED JULY 31, 1999 7
NOTES TO COMBINED FINANCIAL STATEMENTS 8
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Hersha Hospitality Trust
We have audited the accompanying combined balance sheets of the Noble
Investments Hotels as of December 31, 1998 and July 31, 1999, and the related
combined statements of operations, shareholders'/partners' equity (deficit) and
cash flows for the year ended December 31, 1998 and the seven months ended July
31, 1999. These financial statements are the responsibility of the management of
the Noble Investments Hotels. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted accounting
principles. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the combined financial statements referred to above present
fairly, in all material respects, the combined financial position of the Noble
Investments Hotels as of December 31, 1998 and July 31, 1999, the combined
results of their operations and their combined cash flows for the year ended
December 31, 1998 and the seven months ended July 31, 1999, in conformity with
generally accepted accounting principles.
Baltimore, Maryland
April 1, 2000
-3-
<PAGE>
Noble Investments Hotels
COMBINED BALANCE SHEETS
December 31, 1998 and July 31, 1999
<TABLE>
<CAPTION>
1998 1999
----------- -----------
<S> <C> <C>
ASSETS
INVESTMENT IN HOTEL PROPERTIES
Land $ 1,248,649 $ 1,248,649
Building and improvements 8,750,951 8,775,659
Furniture and equipment 1,601,136 1,698,176
----------- -----------
11,600,736 11,722,484
Less accumulated depreciation 1,443,953 1,713,982
----------- -----------
Net investment in hotel properties 10,156,783 10,008,502
OTHER
Cash 209,676 261,510
Accounts receivable 139,231 134,642
Due from affiliate 1,448,843 1,530,045
Prepaid expenses 10,734 11,076
Escrows 212,205 303,837
Other assets 7,200 7,200
Other deferred costs, net of accumulated amortization of
$77,090 and $83,034 16,012 6,557
Mortgage costs, net of accumulated amortization of
$30,071 and $43,592 334,329 320,808
Franchise fees, net of accumulated amortization of
$15,666 and $18,194 91,249 88,721
----------- -----------
$12,626,262 $12,672,898
=========== ===========
LIABILITIES AND SHAREHOLDERS'/PARTNERS' EQUITY (DEFICIT)
LIABILITIES
Mortgages payable $12,518,378 $12,382,460
Loans payable - affiliates 692,189 712,189
Accounts payable and accrued expenses 394,933 491,119
Capital leases payable 44,355 35,322
----------- -----------
13,649,855 13,621,090
----------- -----------
SHAREHOLDERS'/PARTNERS' EQUITY (DEFICIT)
Common Stock, no par value, 67,667 shares authorized,
issued and outstanding 110,000 110,000
Accumulated deficit (1,200,745) (1,157,268)
Partners' equity 67,152 99,076
----------- -----------
Total shareholders'/partners' equity (deficit) (1,023,593) (948,192)
----------- -----------
$12,626,262 $12,672,898
=========== ===========
</TABLE>
See Notes to combined financial statements
-4-
<PAGE>
Noble Investments Hotels
COMBINED STATEMENTS OF OPERATIONS
Year ended December 31, 1998 and the
seven months ended July 31, 1999
1998 1999
----------- -----------
Revenue
Room revenue $ 5,401,932 $ 3,368,314
Telephone revenue 137,649 88,866
Other revenue 101,019 58,420
----------- -----------
Total revenue 5,640,600 3,515,600
----------- -----------
Expenses
Salaries and wages 1,293,935 812,323
Operating expense 415,887 250,404
Management fee 251,800 203,910
General and administrative 433,223 234,192
Advertising 84,696 58,035
Utilities 208,033 116,280
Repairs and maintenance 130,858 80,765
Insurance 57,248 22,127
Real estate taxes 197,893 58,149
Franchise fees 442,810 286,695
Interest expense 1,069,696 633,914
Depreciation and amortization 538,157 295,534
Lease expense 65,421 35,656
----------- -----------
Total expenses 5,189,657 3,087,984
----------- -----------
NET INCOME $ 450,943 $ 427,616
=========== ===========
See notes to combined financial statements
-5-
<PAGE>
Noble Investments Hotels
COMBINED STATEMENTS OF
SHAREHOLDERS'/PARTNERS' EQUITY (DEFICIT)
Year ended December 31, 1998 and the
seven months ended July 31, 1999
<TABLE>
<CAPTION>
Shareholders'/ Total
Common Accumulated Partners' Equity
Stock Deficit Equity (Deficit)
------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Balance, December 31, 1997 $ 110,000 $ (370,344) $ 142,318 $ (118,026)
Distributions - (1,073,010) (283,500) (1,356,510)
Net income - 242,609 208,334 450,943
------------- ----------------- ----------------- -----------------
Balance, December 31, 1998 110,000 (1,200,745) 67,152 (1,023,593)
Distributions - (146,000) (206,215) (352,215)
Net income - 189,477 238,139 427,616
------------- ----------------- ----------------- -----------------
Balance, July 31, 1999 $ 110,000 $ (1,157,268) $ 99,076 $ (948,192)
============= ================= ================= =================
</TABLE>
See notes to combined financial statements
-6-
<PAGE>
Noble Investments Hotels
COMBINED STATEMENTS OF CASH FLOWS
Year ended December 31, 1998 and the
seven months ended July 31, 1999
<TABLE>
<CAPTION>
1998 1999
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities $ 450,943 $ 427,616
Net income
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation and amortization 538,157 295,534
Changes in assets and liabilities
(Increase) decrease in accounts receivable (23,843) 4,589
Decrease (increase) in prepaid expenses (5,640) (342)
(Decrease) increase in accounts payable and accrued expenses (137,487) 96,185
Increase (decrease) in due from affiliates 290,411 (81,202)
--------------- ---------------
Net cash provided by operating activities 1,112,541 742,380
--------------- ---------------
Cash flow from investing activities
Net change in escrow deposits (103,110) (91,632)
Investment in hotel property (492,356) (121,748)
--------------- ---------------
Net cash used in investing activities (595,466) (213,380)
--------------- ---------------
Cash flow from financing activities
Payment of mortgage costs (176,997) -
Payment of capital leases (25,512) (9,033)
Proceeds from mortgage payable 4,200,000 -
Principal payments on mortgage payable (3,000,627) (135,918)
Decrease (increase) in loans payable - affiliates (258,921) 20,000
Distributions to partners (1,356,510) (352,215)
--------------- ---------------
Net cash used in financing activities (618,567) (477,166)
--------------- ---------------
NET (DECREASE) INCREASE IN CASH (101,492) 51,834
Cash, beginning 311,168 209,676
--------------- ---------------
Cash, ending $ 209,676 $ 261,510
=============== ===============
Supplemental disclosures of cash flow information
Cash paid during the year for interest $ 1,069,696 $ 633,914
=============== ===============
</TABLE>
See notes to combined financial statements
-7-
<PAGE>
Noble Investments Hotels
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 1998 and July 31, 1999
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Noble Investments Hotels combined financial statements include the balance
sheets and statements of operations, and shareholders'/partners' equity
(deficit) and cash flows of four properties owned and operated by various
corporations and partnerships under common management (collectively the Owners).
On July 31, 1999, the Owners sold all the hotel properties to Noble Investments
Group, Ltd. The hotel properties combined in these financial statements, consist
of the following:
<TABLE>
<CAPTION>
Hotel Date Opened Rooms Location
----- ----------- ----- --------
<S> <C> <C> <C>
Hampton Inn June 1996 91 Newman, Georgia
Holiday Inn Express July 1996 68 Duluth, Georgia
Hampton Inn July 1994 61 Peachtree City, Georgia
Comfort Suites July 1996 85 Duluth, Georgia
</TABLE>
Use of Estimates
----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported accounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.
Investment in Hotel Properties
------------------------------
The hotel properties are stated at cost. Depreciation is provided for in amounts
sufficient to relate the costs of depreciable assets to operations by use of the
straight-line and accelerated methods over estimated useful lives:
Building and improvements ......................... 15 - 40 years
Furniture and equipment ........................... 3 - 7 years
-8-
<PAGE>
Noble Investments Hotels
NOTES TO COMBINED FINANCIAL STATEMENTS - CONTINUED
December 31, 1998 and July 31, 1999
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Maintenance and repairs are charged to operations as incurred. Additions and
major improvements are capitalized. Upon sale or disposition, both the asset
and related accumulated depreciation are relieved and the related gain or loss
is included in operations.
The Owners evaluate long-lived assets for potential impairment by analyzing
the operating results, trends and prospects for the properties and considering
any other events and circumstances which might indicate potential impairment.
Mortgage Costs
--------------
Mortgage costs are amortized over the terms of the debt using the straight-
line method which approximates the effective interest method.
Franchise Fees
--------------
The Hampton Inn Hotels are operate under a franchise agreement with Promus
Hotels, Inc. The Comfort Suites Hotel was operated under a franchise agreement
with Choice Hotels International, Inc. The Holiday Inn Hotel was operated
under a franchise agreement with Holiday Inns Franchising, Inc. Franchise fees
are amortized over the term of the agreement using the straight-line method.
Other Deferred Fees
-------------------
Other deferred fees are amortized over the term of their respective agreements
using the straight-line method.
Revenue Recognition
-------------------
Room and other revenue are recognized as earned. Ongoing credit evaluations
are performed and accounts deemed uncollectible are charged to operations.
-9-
<PAGE>
Noble Investments Hotels
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 1998 and July 31, 1999
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Advertising Costs
-----------------
Advertising costs are expensed as incurred, including costs incurred under the
terms of the franchise agreements.
Income Taxes
------------
No provision or benefit for income taxes has been included in the combined
financial statements for the Owners since taxable income or loss passes
through to, and is reportable by, the parent corporation, shareholders and
Partners individually.
NOTE B - MORTGAGES PAYABLE
Mortgages payable at December 31, 1998 and July 31, 1999, consisted of the
following:
<TABLE>
<CAPTION>
1998 1999
------------- ------------
<S> <C> <C>
Hampton Inn - Peachtree City, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $23,189 bearing interest at 9.43%
per annum. The mortgage matures in June 2017. $2,427,872 $2,398,229
Holiday Inn Express - Duluth, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $11,115 bearing interest at prime
plus 1% per annum (9.5% at 7/31/99). The mortgage
matures in December 2006. 1,289,277 1,272,189
</TABLE>
-10-
<PAGE>
Noble Investments Hotels
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 1998 and July 31, 1999
NOTE B - MORTGAGES PAYABLE (Continued)
<TABLE>
<CAPTION>
1998 1999
------------ ------------
<S> <C> <C>
Mortgage payable in equal monthly installments of
principal and interest of $8,374 bearing interest at
7.217% per annum. The mortgage matures in January 2017. $ 950,830 $ 950,830
Comfort Suites - Duluth Georgia
Mortgage payable in equal monthly installments of
principal and interest of $32,589 bearing interest
at 8.00% per annum. The mortgage matures on April 1, 2008. 4,169,751 4,127,775
Hampton Inn - Newman, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $33,284, bearing interest
at 8.70% per annum. The mortgage matures in August 2017. 3,680,648 3,633,437
------------ -----------
$ 12,518,378 $12,382,460
============ ===========
</TABLE>
The mortgages are secured by the hotel properties and guaranteed by the Owners.
-11-
<PAGE>
Noble Investments Hotels
NOTES TO COMBINED FINANCIAL STATEMENTS
December 31, 1998 and July 31, 1999
Annual principal payments on the mortgages for each of the next five years
following December 31, 1998 and July 31, 1999 are as follows:
1998 1999
-------- --------
1999 $222,893 $ -
2000 $247,874 $239,237
2001 $269,905 $260,496
2002 $293,901 $283,652
2003 $320,044 $308,578
2004 $ - $336,360
NOTE C - CAPITAL LEASES
The hotels lease certain equipment under capital leases. At December 31, 1998
and July 31, 1999, the future minimum lease payments were as follows:
NOTE D - RELATED PARTY TRANSACTIONS
Due from Affiliates
-------------------
Due from affiliates consists of operating advances to related parties which
are unsecured, non-interest bearing and payable on demand.
Loans Payable from Affiliates
-----------------------------
Loans from affiliates consist of development and operating advance from
related parties which are unsecured, non-interest bearing and payable on
demand.
-12-
<PAGE>
FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
NOBLE INVESTMENTS HOTELS
DECEMBER 31, 1999
<PAGE>
Noble Investments Hotels
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS
BALANCE SHEET AS OF DECEMBER 31, 1999 4
STATEMENT OF OPERATIONS FOR THE FIVE MONTHS
ENDED DECEMBER 31, 1999 5
STATEMENT OF PARTNERS' EQUITY FOR THE FIVE MONTHS
ENDED DECEMBER 31, 1999 6
STATEMENT OF CASH FLOW FOR THE FIVE MONTHS ENDED
DECEMBER 31, 1999 7
NOTES TO FINANCIAL STATEMENTS 8
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Hersha Hospitality Trust
We have audited the accompanying balance sheet of the Noble Investments
Hotels as of December 31, 1999, and the related statements of operations,
partners' equity and cash flows for the period from August 1, 1999 (date of
acquisition) through December 31, 1999. These financial statements are the
responsibility of the management of the Noble Investments Hotels. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Noble Investments Hotels
as of December 31, 1999, the results of its operations, the changes in partners'
equity and its cash flows for the period from August 1, 1999 (date of
acquisition) through December 31, 1999, in conformity with generally accepted
accounting principles.
Baltimore, Maryland
April 1, 2000
<PAGE>
Noble Investments Hotels
BALANCE SHEET
December 31, 1999
<TABLE>
ASSETS
<S> <C>
INVESTMENT IN HOTEL PROPERTIES
Land $ 1,248,649
Building and improvements 18,859,147
Furniture and equipment 872,122
-------------------
20,979,918
Less accumulated depreciation 344,955
-------------------
Net investment in hotel properties 20,634,963
OTHER
Cash 202,333
Accounts receivable 108,682
Prepaid expenses 773
Escrows 278,410
Other assets 7,200
Other deferred costs, net of accumulated amortization of $4,573 6,597
Mortgage costs, net of accumulated amortization of $10,484 310,129
Franchise fees, net of accumulated amortization of $2,133 83,222
-------------------
$ 21,632,309
===================
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Mortgages payable $ 12,264,532
Accounts payable and accrued expenses 254,298
Capital leases payable 31,060
-------------------
12,549,890
PARTNERS' EQUITY 9,082,419
-------------------
$ 21,632,309
===================
</TABLE>
See Notes to financial statements
-4-
<PAGE>
Noble Investments Hotels
STATEMENT OF OPERATIONS
Period from August 1, 1999 (date of acquisition)
through December 31, 1999
Revenue
Room revenue $2,226,542
Telephone revenue 49,955
Other revenue 27,660
----------
Total revenue 2,304,157
----------
Expenses
Salaries and wages 557,031
Operating expense 174,569
Management fee 108,511
General and administrative 151,537
Advertising 17,335
Utilities 90,105
Repairs and maintenance 50,706
Insurance 15,760
Real estate taxes 124,872
Franchise fees 192,030
Interest expense 471,337
Depreciation and amortization 362,146
Lease expense 28,392
----------
Total expenses 2,344,331
----------
NET LOSS $ (40,174)
==========
See Notes to financial statements
-5-
<PAGE>
Noble Investments Hotels
STATEMENT OF PARTNERS' EQUITY
Period from August 1, 1999 (date of acquisition)
through December 31, 1999
Balance, August 1, 1999 (inception) $ -
Contributions 9,122,593
Net loss (40,174)
----------
Balance, December 31, 1999 $9,082,419
==========
See notes to financial statements
-6-
<PAGE>
Noble Investments Hotels
STATEMENT OF CASH FLOWS
Period from August 1, 1999 (date of acquisition)
through December 31, 1999
<TABLE>
<CAPTION>
<S> <C>
Cash flows from operating activities
Net loss $ (40,174)
Adjustments to reconcile net loss to net cash provided by
operating activities
Depreciation and amortization 362,146
Changes in assets and liabilities
Decrease in accounts receivable 25,960
Decrease in prepaid expenses 10,303
Decrease in accounts payable and accrued expenses (240,731)
----------------
Net cash provided by operating activities 117,504
----------------
Cash flow from investing activities
Net change in escrow deposits 25,427
Investment in hotel property (79,918)
----------------
Net cash used in investing activities (54,491)
----------------
Cash flow from financing activities
Payment of capital leases (4,262)
Principal payments on mortgage payable (117,928)
----------------
Net cash used in financing activities (122,190)
----------------
NET DECREASE IN CASH (59,177)
Cash, beginning 261,510
----------------
Cash, ending $ 202,333
================
Supplemental disclosures of cash flow information
Cash paid during the year for interest $ 471,337
================
Supplemental disclosure of non-cash investing and financing activities During
1999, the Partnership acquired 4 hotels in exchange for units in the
operating partnership, the assets acquired and liabilities assumed at
fair value are as follows:
Fair value of hotel properties acquire $ 20,900,000
Fair value of other assets acquired 1,135,403
Fair value of liabilities assumed (530,350)
Fair value of debt assumed (12,382,460)
----------------
$ 9,122,593
================
</TABLE>
See notes to financial statements
-7-
<PAGE>
Noble Investments Hotels
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUTING POLICIES
The financial statements include the balance sheet and statements of
operations, partners' equity and cash flows of four hotel properties acquired
on August 1, 1999 (date of acquisition) by Noble Investments Group, Ltd.
(Noble). The properties have been under common ownership and management since
the date of acquisition. The acquisition has been recorded as a purchase in
accordance with Accounting Principles Board Opinion No. 16, "Business
Combinations", and consequently the financial statements include the hotels'
operations from the date of acquisition. On December 30, 1999, Noble
Investments Hotels (Noble) entered into agreements to sell the hotel
properties to Hersha Hospitality Limited Partnership. The sales agreements do
not extend to any other assets or liabilities of Noble. The hotel properties
included in these financial statements consist of the following:
Hotels Date Opened Rooms Locations
------ ----------- ----- ---------
Hampton Inn June 1996 91 Newman, Georgia
Holiday Inn Express July 1996 68 Duluth, Georgia
Hampton Inn July 1994 61 Peachtree City, Georgia
Comfort Suites July 1996 85 Duluth, Georgia
Use of Estimates
----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported accounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
Investment in Hotel Properties
------------------------------
The hotel properties are stated at cost. Depreciation is provided for in
amounts sufficient to relate the costs of depreciable assets to operations by
use of the straight-line and accelerated methods over estimated useful lives:
Building and improvements ......................... 15 - 40 years
Furniture and equipment ........................... 3 - 7 years
-8-
<PAGE>
Noble Investments Hotels
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUTING POLICIES (Continued)
Maintenance and repairs are charged to operations as incurred. Additions and
major improvements are capitalized. Upon sale or disposition, both the asset
and related accumulated depreciation are relieved and the related gain or loss
is included in operations.
Management evaluates long-lived assets for potential impairment by analyzing
the operating results, trends and prospects for the properties and considering
any other events and circumstances which might indicate potential impairment.
Mortgage Costs
--------------
Mortgage costs are amortized over the terms of the debt using the straight-
line method which approximates the effective interest method.
Franchise Fees
--------------
The Hampton Inn Hotels are operate under a franchise agreement with Promus
Hotels, Inc. The Comfort Suites Hotel was operated under a franchise agreement
with Choice Hotels International, Inc. The Holiday Inn Hotel was operated
under a franchise agreement with Holiday Inns Franchising, Inc. Franchise fees
are amortized over the term of the agreement using the straight-line method.
Other Deferred Fees
-------------------
Other deferred fees are amortized over the term of their respective agreements
using the straight-line method.
Revenue Recognition
-------------------
Room and other revenue are recognized as earned. Ongoing credit evaluations
are performed and accounts deemed uncollectible are charged to operations.
Advertising Costs
-----------------
Advertising Costs are expensed as incurred, including costs incurred under the
terms of the franchise agreements.
Income Taxes
------------
No provision or benefit for income taxes has been included in the financial
statements since taxable income or loss passes through to, and is reportable
by, partners individually.
-9-
<PAGE>
Noble Investments Hotels
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
NOTE B - MORTGAGES PAYABLE
Mortgages payable at December 31, 1999, consisted of the following:
Hampton Inn - Peachtree City, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $23,189, bearing interest
at 9.43% per annum. The mortgage matures in June
2017. $ 2,376,170
Holiday Inn Express - Duluth, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $11,115, bearing interest
at the prime rate plus 1% (9.5% at December 31, 1999).
The mortgage matures in December 2006. 1,257,836
Mortgage payable in equal monthly installments of
principal and interest $8,374, bearing interest at 7.217%
per annum. The mortgage matures in January 2017. 924,084
Comfort Suites - Duluth, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $32,589, bearing interest at
8.00% per annum. The mortgage matures on April 1, 2008. 4,110,102
Hampton Inn - Newman, Georgia
Mortgage payable in equal monthly installments of
principal and interest of $33,284, bearing interest at
8.70% per annum. The mortgage matures in August 2017. 3,596,340
------------
$ 12,264,532
============
The mortgages are secured by the hotel properties.
-10-
<PAGE>
Noble Investment Hotels
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
NOTE B - MORTGAGES PAYABLE (Continued)
Annual principal payments on the mortgages for each of the five years
following December 31, 1999, are as follows:
December 31,
--------------
2000 $ 247,874
2001 $ 267,905
2002 $ 293,901
2003 $ 320,044
2004 $ 297,835
NOTE C - CAPITAL LEASES
The hotels lease certain equipment under capital leases. At December 31, 1999,
the future minimum leases payments were as follows:
December 31,
--------------
2000 $ 20,134
2001 11,476
2002 -
2003 -
2004 -
----------
Less amount representing interest 31,610
550
----------
$ 31,060
==========
-11-
