<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 1997
Commission File Number 2-67456
SUPER 8 MOTELS NORTHWEST I
(Exact name of registrant as specified in its charter)
WASHINGTON 91-1101310
- --------------------------------------- ---------------------
(State or other jurisdiction of IRS Employer
incorporation or organization) Identification Number
7515 Terminal St. S.W., Tumwater, WA 98501
- --------------------------------------- --------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (360) 943-8000
Securities registered pursuant to section 12 (g) of the Act:
TITLE OF CLASS
-------------------------
Limited Partnership Units
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes ( X ) No ( )
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in
<PAGE> 2
definitive proxy or information statements incorporated by reference in Part III
of this Form I0-K or any amendment to this Form 10-K. (X)
There has been no market for limited partnership units since the initial
offering of limited partnership units was completed in 1982, therefore the
market value of limited partnership units is unknown.
DOCUMENTS INCORPORATED BY REFERENCE
Partnership's Audited Financial Statements.
Partnership's January, 1998 newsletter to limited partners.
Also incorporated by reference are the partnership agreement, franchise
agreement and property management agreements to which the Partnership is a party
and which were included with and/or described in the original offering materials
for the Partnership, as well as all appropriate exhibits delineated in Part III
hereof.
PAGE 2
<PAGE> 3
PART I
ITEM 1.
Business
(a) General Development of Business
Super 8 Motels Northwest I is a Washington limited partnership (the
"Partnership") which was formed to invest in and operate two "economy" motels
located in the state of Washington (the "Motels"). The Partnership operates the
Motels as a franchise of Super 8 Motels, Inc., the national franchiser of the
"Super 8" tradename. The General Partner of the Partnership is Gerald L.
Whitcomb.
The Partnership was formed in March 1980. The Limited Partnership Units of the
Partnership (the "Units") were offered and sold by selected broker-dealers on a
best efforts basis in the states of Washington, Oregon, Montana, Idaho and
Alaska.
The Partnership's total offering of $6,000,000 (6,000 Units at $1,000 each) was
fully subscribed and the offering closed in February 1982.
(b) Financial Information About Industry Segments.
Not applicable as the registrant operates in a single industry (motels) and
within that industry only in the economy motel category. For financial
information generally, see "Financial Statements."
(c) Narrative Description of Business.
The motel properties were developed and are being operated as economy motels in
the locations indicated below. Both properties are franchisees of the national
"Super 8" motel chain. The economy motel concept provides for a clean,
comfortable average-size motel room that has all the basic amenities required by
the traveling public at a price lower than that of most surrounding motel
properties of equal quality.
All guest rooms are equipped with direct-dial telephone, color television and
tub/shower combination, and are fully carpeted, sound proofed and insulated.
Guests are allowed to use major national credit cards and cash checks with
V.I.P. Club membership. Vending machines are also available.
Each property has interior hallways, a lobby with a manager's office, an
employee lounge, and in-house laundry. No restaurants are located on either
property.
The 119-room Super 8 Motel at Sea-Tac is located near the Seattle/Tacoma
International Airport and provides additional special services to the traveling
public: long-term parking privileges, airport courtesy telephone, and free
transportation to and from the airport.
PAGE 3
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The 90-room Super 8 Motel at Federal Way provides a special parking area for
commercial trucks, guest laundry facilities and a travelers lounge. Adjacent to
the property are two family style restaurants owned and operated by non
affiliated companies. Both motels historically experience seasonal fluctuations
in occupancy, the low point occurring in the winter months and peaking in late
summer.
The motels provide full or part-time employment for approximately 45 people
(Sea-Tac 28, Federal Way 17).
(d) Financial Information About Foreign and Domestic Operations and Export
Sales.
The Partnership operates only in one geographic area, the Puget Sound region of
Washington State. For financial information generally, see "Financial
Statements."
ITEM 2
Properties
(a) Location and General Characteristics.
The Partnership owns two parcels of real property, both purchased during the
year ended December 31, 1981. The Sea-Tac property is located at 192nd Street at
Old Highway 99 in King County, Washington. Construction commenced on the Sea-Tac
parcel in August 1981 and it opened in March 1982. The Federal Way property is
located at 348th Street and 16th Avenue in Federal Way, King County, Washington.
Construction commenced on the Federal Way property in March 1982 and was
completed in September 1982.
Both motels are of frame construction with stucco exteriors, tile roofs and have
full fire alarm systems. Heating and cooling is by individual room through the
wall heat pumps.
The approximate size of the buildings is as follows:
Sea-Tac 43,850 square feet
Federal Way 37,800 square feet
Both motels underwent major renovations in 1987 at an aggregate approximate
total cost of $328,000. An approximately $1,000,000 renovation of the Sea-Tac
property commenced in February 1995, with one-half of the property closed for a
substantial period of time. The Sea-Tac renovation was completed in February,
1996.
Both motels are in operation as economy motels. For utilization of these
properties see Item 7.
See Item 1 (c) for further information on each property.
PAGE 4
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ITEM 3
Legal Proceeding
The Partnership is not party to any material legal proceedings.
ITEM 4
Submission of Matters to a Vote of Security Holders
None.
PAGE 5
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PART II
ITEM 5.
Market for the Registrant's Common Stock and
Related Security Holder Matters
The Units are owned by approximately 1,050 investors.
There is no established public trading market for the units and no significant
transactions in units between a willing buyer and a willing seller have occurred
since the original offering of limited partnership units. Because of this, the
Partnership is unable to determine a fair market value for the units.
Distributions of cash to the Limited Partners made during 1997, 1996 an 1995
were $600,000 for each year.
ITEM 6.
Selected Financial Data*
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Total Sales $2,980,665 $2,975,925 $2,319,042 $2,415,274 $2,329,668
Net Income (Loss)* $1,089,393 $948,910 $132,423 $783,376 $666,072
Net Income (Loss)* per Unit $154.33 $134.43 $18.76 $110.98 $94.36
Total Assets** $4,449,796 $4,637,276 $4,389,769 $3,875,570 $3,895,056
Long-Term Debt* $1,284,675 $1,937,139 $1,985,797 $1,023,788 $1,224,831
Cash Distribution Per Unit $100.00 $100.00 $100.00 $100.00 $100.00
</TABLE>
*In filings prior to the year ended December 31, 1994, with the United States
Securities and Exchange Commission (the "SEC"), and in the Partnership's prior
years' financial statements, the Partnership did not accrue unpaid property
management fees due to the uncertainty of payment. During the year ended
December 31, 1994, the Partnership changed its method of accounting for such
fees and the above information was restated for 1993 to account for such fees so
that Net Income, Long Term Debt and Net Income Per Unit was revised to accrue
the expense when incurred and reflect the associated liability on the balance
sheet.
**Net of amortization and depreciation
Detailed financial data is provided in the form of audited Financial Statements
as of December 31, 1997 and 1996 and for each of the three years ended December
31, 1997, 1996 and 1995. These statements show the results of operations,
changes in partners' equity, cash flows and additional financial disclosures.
PAGE 6
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ITEM 7.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
At December 31, 1997, the Partnership's current assets exceeded its current
liabilities by $320,855 which was $93,233 less than the difference between
current assets and current liabilities on December 31, 1996. This decrease is
largely attributable to lower fourth quarter occupancy figures in the Federal
Way motel. Additionally, accrued property management fees attributable to
previous years were paid off during 1997. As in the recent past, because the
months of January, February, and March are the slowest season of occupancy, the
Partnership must carefully manage its cash during those months.
The interest rate on the Partnership's primary mortgage was 8.5% in 1997 and
1996. This adjustable rate loan provides for an interest rate adjustment each
year based an amount equal to the monthly median cost of funds index for FSLIC
insured savings and loan associations plus 3.575%; or, if less, 1% plus such
amount
The interest rate on the long term loan funding the Sea-Tac renovation is
variable, based on the lender's prime rate plus 1% per annum and is payable in
monthly payments of $9,768 plus interest. The bank's prime rate of interest at
December 31, 1997, is 8.50% per annum.
<TABLE>
<CAPTION>
Balance Sheet data 1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Current Assets $528,881 $615,507 $296,905
Current Liabilities $208,026 $201,419 $248,103
Current Ratio 2.54:1 3.06:1 1.20:1
</TABLE>
At December 31, 1997, both the Sea-Tac and Federal Way properties completed
their fifteenth full years of operation.
Comparative operational statistics follow:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Sea-Tac
Occupancy 65% 66% 52%
Rented rooms 28,264 28,696 22,411
Gross room rate* $65.28 $62.46 $56.77
Federal Way
Occupancy 64% 70% 64%
Rented rooms 21,030 22,944 21,183
Gross room rate* $45.62 $46.13 $44.73
Total
Occupancy 65% 68% 57%
Rented rooms 49,294 51,640 43,594
Gross room rate* $57.96 $55.37 $50.92
</TABLE>
*"Gross Room Rate" is defined as total room revenue divided by total rooms sold.
PAGE 7
<PAGE> 8
Total 1997 Room sales revenue decreased $2,096 to $2,857,164 down from
$2,859,260 in 1996. A decrease in average occupancy level for the year was
largely offset by the increase in room rates resulting in relatively static
revenue figures. Total rented rooms decreased to 49,294 a decrease of 2,346
rented rooms from the previous year figure of 51,640. Gross room rates rose from
$55.37 per room in 1996 to $57.96 in 1997, a 4.6% increase.
Net income in 1997 increased $140,483 to $1,089,393 up from $948,910 in 1996.
The increase was primarily due to the decrease in supplies and maintenance
expenses because no major renovations were undertaken during 1997. Supplies and
maintenance will increase dramatically with the completion of a major renovation
in Federal Way scheduled to begin in February, 1998.
Direct operating expenses in 1997 decreased $103,507 to $869,464 down from
$972,971 in 1996. Higher payroll and related expenses were offset by the
decrease in supplies and maintenance expenses. Indirect operating expenses
remained relatively flat, increasing $9,445 to $289,502 in 1997.
An increase in labor rates in Washington coupled with increased staffing levels
resulted in higher administrative service fees and caused total Administrative
and General expenses to increase $12,808 in 1997 to $519,333.
The $28,364 decrease in fixed charges resulted from decreases in depreciation
and interest expense.
As discussed in Item 1, the partnership operates the motels as a franchise of
Super 8 Motels, Inc. Nationwide the Super 8 motel chain continues to grow,
increasing the name familiarity of the chain.
<TABLE>
<CAPTION>
As of December 31, Number of Super 8 Motels Increase
------------------ ------------------------ --------
<S> <C> <C>
1997 1,614 122
1996 1,492 92
1995 1,400 180
1994 1,220 159
1993 1,060 119
1992 941 78
</TABLE>
The Super 8 "Superline" national reservation system and "VIP Club"
(approximately 5,000,000 members) continue to be improved.
Prior to 1985, the Partnership had been accruing the Motels' property management
fees. Even though the obligation to pay those fees exists, the terms of the
partnership agreement of the Partnership did not allow them to be paid until
such time as the limited partners have received a cumulative annual 10% return
on their adjusted capital investment. In previous filings with the United States
Securities and Exchange Commission (the "SEC"), and in the Partnership's prior
years' financial statements, the Partnership's accounting policy regarding these
fees was to
PAGE 8
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expense them when paid (instead of when incurred) and to not accrue unpaid
property management fees as a liability on the face of the balance sheet.
In 1994, the Partnership changed its accounting policy for property management
fees to reflect, on the Partnership's income statement, the expense when the
obligation to pay the fee was incurred and to accrue the corresponding liability
on the face of the Partnership's balance sheet. Thus, the financial information
contained in this report conforms with that reporting position. Previously
incurred but unpaid management fees totaling approximately $605,000 were paid in
1997. Attention is directed to Note 6 in the Partnership's Financial Statements,
for a discussion of property management fees. Additionally, see the discussion
in Part II, Item 6, "Selected Financial Data" of this report.
Year 2000 Compliance Issue
Currently, motel reservations, and credit card approvals are handled by
equipment and software provided respectively by Super 8 Motels, Inc. and the
individual banking institutions with which the properties do business.
Currently, internal accounting (with the exception of call accounting) is
completed manually. Pursuant to the POWER-UP program being designed, instituted
and paid for by Super 8 Motels, Inc., all motels will be provided a PC-based
Property Management System which integrates all reservations, credit card
approvals, call accounting, security and motel accounting into a single system.
This fully integrated system is to be in place at every motel within the Super 8
System by the third quarter of 1999. The equipment and software is new and has
been designed and developed by the Franchisor, and the franchisee will be
required to utilize it. The Partnership has been assured by Super 8 Motels, Inc.
that the total system will be year 2000 compliant. The total cost of this
conversion which may be borne by the motels owned by the partnership should not
exceed $5,000 per motel.
Internally, the general partner of Super 8 Motels Northwest I and the affiliated
management company have undertaken the task of totally replacing the current
corporate accounting system to ensure that it will fully integrate with the new
Property Management System being installed by Super 8 Motels, Inc. It is
anticipated that this conversion will be completed by the year end 1998. Part of
the hardware and software will be provided by the POWER-UP initiative at no cost
to the company. For those systems purchased by the general partner or
affiliates, all software, hardware and systems vendors will be required to
certify that their products are year 2000 compliant. The cost attributed to each
motel in the partnership for this conversion should not exceed $5,000 per motel.
ITEM 8
Financial Statements and Supplementary Data
See Independent Auditors Report and Financial Statements, pages 2 through 13,
for financial statements incorporated herein by reference; and Item 14 for a
list of the Financial Statement Schedules filed as a part of this report.
PAGE 9
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ITEM 9
Disagreements on Accounting and Financial Disclosure
None.
PAGE 10
<PAGE> 11
PART III
ITEM 10.
Directors and Executive Officers of the Registrant
The sole General Partner of the Partnership is Gerald L. Whitcomb.
Gerald L. Whitcomb, age 54, was educated at the University of Nebraska with
majors in economics and business finance and obtained a JD. in Law. He practiced
law from 1969 to 1979. Since 1979, he has been involved in the management of the
Peninsula Group, Inc., (formerly known as Super 8 Motels Northwest, Inc.) and
its affiliates.
Mr. Whitcomb is the principal organizer and stockholder of The Peninsula Group
Incorporated and its subsidiaries. Mr. Whitcomb is the general partner of Super
8 Motels Northwest I, a limited partnership whose limited partnership units were
registered under the Securities Act of 1933. He is also a partner in Super 8
Motel Developers, which is General Partner of Super 8 Motel of Lacey Associates,
a General Partner of Super 8 Motels Northwest II, Juneau Motel Associates,
Anchorage Motel Associates and Peninsula Motel Associates, all Washington
limited partnerships. Mr. Whitcomb is the Managing Partner of Tongass Motel
Associates, an Alaska general partnership, Mr. Whitcomb is a partner in
Peninsula Properties Partnership, a Washington general partnership.
Due to a change in management of the Partnership's General Partner's offices
where the individual responsible for ensuring that appropriate filings are made
with the SEC, some recently required filings on Forms 3, 4 or 5 appear not to
have been timely made. The Partnership is working closely with its counsel to
promptly rectify any such delinquent filings.
ITEM 11.
Executive Compensation
The General Partner received no salary or bonus compensation from the
Partnership during the fiscal year ended December 31, 1997. See Item 13.
ITEM 12.
Security Ownership of Certain Beneficial Owners and Management
<TABLE>
<CAPTION>
Title Name Percent
----- ---- -------
<S> <C> <C>
General Partner Gerald L. Whitcomb 1
Limited Partners Various 99
</TABLE>
PAGE 11
<PAGE> 12
As of December 31, 1997, the General Partner, together with family members, owns
forty of the Limited Partnership Units in addition to his General Partner
Interest. See Note 3 of Notes to the "Financial Statements" for a discussion of
distributions and allocations of profits and losses.
ITEM 13.
Certain Relationships and Related Transactions
See the Notes to the Partnership's Financial Statements.
PAGE 12
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PART IV
ITEM 14.
Exhibits, Financial Statement Schedules, and Reports on form 8-K
Exhibits incorporated by reference
1.2 Subscription Agreement (which is filed as Exhibit B to the
Prospectus).
3.1 Certificate and Agreement of Limited Partnership of the Registrant
(which is filed as Exhibit "A" to the Prospectus).
6.1 Opinion of Counsel to the Partnership.
Exhibits filed herewith.
Financial Statements of the Registrant for the years ended December 31, 1997,
1996 and 1995.
Financial Statements and supplemental schedules include:
Report of Independent Public Accountants
Balance Sheet
Statement of Income
Statement of Changes in Partners' Equity
Statement of Cash Flows
Notes to Financial Statements
January, 1998 Partnership newsletter mailed to limited partners.
There were no reports filed on Form 8-K during 1997.
Financial Data Schedule for the year ended December 31, 1997
PAGE 13
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SIGNATURES
Pursuant to the requirements of Section 13 of 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized:
Gerald L. Whitcomb
- ------------------------------------ ------------------------
GERALD L. WHITCOMB Date
General Partner
PAGE 14
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SUPER 8 MOTELS NORTHWEST I
INDEPENDENT AUDITOR'S REPORT
AND
FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
<PAGE> 16
CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Balance sheet 2 - 3
Statement of income 4
Statement of changes in partners' equity 5
Statement of cash flows 6 - 7
Notes to financial statements 8 - 14
</TABLE>
<PAGE> 17
INDEPENDENT AUDITOR'S REPORT
To the General and Limited Partners
Super 8 Motels Northwest I
We have audited the accompanying balance sheets of Super 8 Motels Northwest I as
of December 31, 1997 and 1996, and the related statements of income, changes in
partners' equity, and cash flows for the three years ended December 31, 1997,
1996 and 1995. These financial statements are the responsibility of the
partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits 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 audits provide 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 Super 8 Motels Northwest I as
of December 31, 1997 and 1996, and the results of its operations and its cash
flows for the three years ended December 31, 1997, 1996 and 1995, in conformity
with generally accepted accounting principles.
Tacoma, Washington
January 29, 1998
1
<PAGE> 18
SUPER 8 MOTELS NORTHWEST I
BALANCE SHEET
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
DECEMBER 31,
----------------------------------------
1997 1996
----------------- -------------------
CURRENT ASSETS
<S> <C> <C>
Cash $ 463,238 $ 544,684
Accounts receivable, trade 10,623 21,518
Accounts receivable, affiliates 5,932 --
Inventory 43,931 42,093
Prepaid expenses 5,157 7,212
----------------- -------------------
Total current assets 528,881 615,507
----------------- -------------------
PROPERTY AND EQUIPMENT, at cost
Land 2,036,056 2,053,409
Land improvements 79,671 79,671
Buildings 2,836,155 2,836,155
Equipment, furniture and fixtures 1,021,108 1,021,108
----------------- -------------------
5,972,990 5,990,343
Less accumulated depreciation (2,105,168) (2,022,417)
----------------- -------------------
Total property and equipment 3,867,822 3,967,926
----------------- -------------------
OTHER ASSETS
Loan fees 15,000 15,000
Franchise fees 30,000 30,000
----------------- -------------------
45,000 45,000
Less accumulated amortization (30,000) (25,500)
----------------- -------------------
15,000 19,500
Deposits 38,093 34,343
----------------- -------------------
Total other assets 53,093 53,843
----------------- -------------------
$4,449,796 $4,637,276
================= ===================
</TABLE>
2 The accompanying notes are an integral part of these financial statements.
<PAGE> 19
SUPER 8 MOTELS NORTHWEST I
BALANCE SHEET
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' EQUITY
DECEMBER 31,
----------------------------------------
1997 1996
----------------- -------------------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable, trade $ 34,373 $ 37,503
Accounts payable, affiliates 36,432 29,609
Accounts payable, partners 88,221 88,307
Current portion of long-term debt 49,000 46,000
----------------- -------------------
Total current liabilities 208,026 201,419
----------------- -------------------
LONG-TERM DEBT, net of current portion
shown above 1,284,675 1,331,791
----------------- -------------------
ACCRUED PROPERTY MANAGEMENT FEES -- 605,348
----------------- -------------------
COMMITMENTS (Notes 7 and 9)
PARTNERS' EQUITY
General partner's equity 461,460 329,065
Limited partners' equity (authorized, issued and
outstanding 6,000 units) 2,495,635 2,169,653
----------------- -------------------
2,957,095 2,498,718
----------------- -------------------
$4,449,796 $4,637,276
================= ===================
</TABLE>
The accompanying notes are an integral part of these financial statements. 3
<PAGE> 20
SUPER 8 MOTELS NORTHWEST I
STATEMENT OF INCOME
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1997 1996 1995
------------------ -------------------- --------------------
<S> <C> <C> <C>
SALES
Rooms $2,857,164 $ 2,859,260 $ 2,219,855
Other 123,501 116,665 99,187
------------------ -------------------- --------------------
2,980,665 2,975,925 2,319,042
------------------ -------------------- --------------------
DIRECT OPERATING EXPENSES
Payroll and related expenses 548,646 497,037 474,549
Supplies and maintenance 124,634 285,864 598,914
Utilities 159,214 154,073 142,569
Other 36,970 35,997 30,761
------------------ -------------------- --------------------
869,464 972,971 1,246,793
------------------ -------------------- --------------------
INDIRECT OPERATING EXPENSES
Taxes (principally property taxes) and fees 133,364 124,915 126,524
Advertising and promotion 71,101 68,958 94,555
Bank and credit card charges 46,005 46,174 35,972
Insurance 29,501 29,144 29,250
Other 9,531 10,866 10,718
------------------ -------------------- --------------------
289,502 280,057 297,019
------------------ -------------------- --------------------
ADMINISTRATIVE AND GENERAL EXPENSES
Administrative service fees 171,741 159,779 152,275
Property management fees 149,011 148,864 115,938
Franchise fees 113,167 114,192 88,894
Professional services 42,471 49,386 66,574
Other 42,943 34,304 20,710
------------------ -------------------- --------------------
519,333 506,525 444,391
------------------ -------------------- --------------------
FIXED CHARGES
Depreciation 82,752 106,116 103,390
Interest expense 123,416 128,631 88,797
Amortization 4,500 4,500 2,251
Current Lease 40,385 40,170 13,725
------------------ -------------------- --------------------
251,053 279,417 208,163
------------------ -------------------- --------------------
INCOME FROM OPERATIONS 1,051,313 936,955 122,676
OTHER INCOME 38,080 11,955 9,747
------------------ -------------------- --------------------
NET INCOME $1,089,393 $ 948,910 $ 132,423
================== ==================== ====================
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 154.33 $ 134.43 $ 18.76
================== ==================== ====================
</TABLE>
4 The accompanying notes are an integral part of these financial statements.
<PAGE> 21
SUPER 8 MOTELS NORTHWEST I
STATEMENT OF CHANGES IN PARTNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
---------------- ------------------- -------------------
<S> <C> <C> <C>
BALANCE, December 31, 1994 $178,987 $2,450,520 $2,629,507
Distributions paid (6,061) (600,000) (606,061)
Net income 19,863 112,560 132,423
---------------- ------------------- -------------------
BALANCE, December 31, 1995 192,789 1,963,080 2,155,869
Distributions paid (6,061) (600,000) (606,061)
Net income 142,337 806,573 948,910
---------------- ------------------- -------------------
BALANCE, December 31, 1996 329,065 2,169,653 2,498,718
Distributions paid (31,016) (600,000) (631,016)
Net income 163,411 925,982 1,089,393
---------------- ------------------- -------------------
BALANCE, December 31, 1997 $461,460 $2,495,635 $2,957,095
================ =================== ===================
</TABLE>
The accompanying notes are an integral part of these financial statements. 5
<PAGE> 22
SUPER 8 MOTELS NORTHWEST I
STATEMENT OF CASH FLOWS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------------------------------------------------------
1997 1996 1995
------------------- ------------------- -------------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Revenues and other income received in cash $3,011,125 $2,985,522 $2,345,287
Operating expenses paid in cash (2,323,835) (1,847,462) (1,929,863)
Interest paid (123,539) (128,471) (89,744)
------------------- ------------------- -------------------
Net cash provided by operating activities 563,751 1,009,589 325,680
------------------- ------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment -- (43,332) (653,803)
Proceeds from sale of asset 29,935 3,000 --
------------------- ------------------- -------------------
Net cash provided by (used in) investing
activities 29,935 (40,332) (653,803)
------------------- ------------------- -------------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from loan -- -- 999,999
Payment of appraisal and loan fees -- -- (15,000)
Principal payments on long-term debt (44,116) (40,658) (86,990)
Distributions to:
Limited partners (600,000) (600,000) (600,000)
General partner (31,016) (6,061) (6,061)
------------------- ------------------- -------------------
Net cash (used in) provided by financing
activities (675,132) (646,719) 291,948
------------------- ------------------- -------------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (81,446) 322,538 (36,175)
CASH AND CASH EQUIVALENTS,
beginning of year 544,684 222,146 258,321
------------------- ------------------- -------------------
CASH AND CASH EQUIVALENTS, end of year $ 463,238 $ 544,684 $ 222,146
=================== =================== ===================
</TABLE>
6 The accompanying notes are an integral part of these financial statements.
<PAGE> 23
SUPER 8 MOTELS NORTHWEST I
STATEMENT OF CASH FLOWS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
------------------------------------------------------------
1997 1996 1995
------------------ ------------------ -----------------
<S> <C> <C> <C>
RECONCILIATION OF NET INCOME TO
NET CASH PROVIDED BY OPERATING
ACTIVITIES
Net income $1,089,393 $ 948,910 $132,423
------------------ ------------------ -----------------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 87,252 110,616 105,641
(Gain) loss on sale of asset (12,583) 1,444 --
Change in assets and liabilities
Accounts receivable 4,963 (2,358) 16,498
Inventory (1,838) 184 6,664
Prepaid expenses 2,055 6,110 (9,135)
Deposits (3,750) (633) (1,240)
Accounts payable 3,693 (58,692) 73,397
Accrued expenses (86) 4,008 1,432
Accrued management fees (605,348) -- --
------------------ ------------------ -----------------
(525,642) 60,679 193,257
------------------ ------------------ -----------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 563,751 $1,009,589 $325,680
================== ================== =================
</TABLE>
The accompanying notes are an integral part of these financial statements. 7
<PAGE> 24
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 1 - PARTNERSHIP OPERATIONS
Super 8 Motels Northwest I is a Washington limited partnership. The
partnership owns and operates two motels: one in Federal Way,
Washington, and one in the vicinity of the Seattle-Tacoma International
Airport.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH EQUIVALENTS - Cash equivalents are investments with maturity at
date of purchase of three months or less.
INVENTORY - Inventory consists of various operating supplies which have
been valued at cost.
PROPERTY AND EQUIPMENT - Property and equipment are stated at cost and
are depreciated using straight-line and accelerated methods over
estimated useful lives as follows:
<TABLE>
<CAPTION>
Years
-----
<S> <C>
Land improvements 28
Buildings 25 and 30
Equipment, furniture and fixtures 5 and 7
</TABLE>
LOAN FEES - Loan fees incurred in connection with financing for
remodeling the Sea-Tac motel are amortized over a 5 year period.
FRANCHISE FEES - Initial franchise fees are stated at cost;
amortization of this amount is provided using the straight-line method
over 20 years.
ACCRUED VACATION - It is the partnership's policy to expense vacation
pay as paid rather than as earned as required by generally accepted
accounting principles. The effect upon the financial statements is not
significant.
INCOME TAXES - No provision has been made in the accompanying financial
statements for federal or state income taxes as taxable income or loss
of the partnership is allocated to and included in the taxable income
of the partners. See Note 5 for additional discussion.
INCOME PER LIMITED PARTNERSHIP UNIT - Net income per limited
partnership unit is computed by dividing the limited partners' share of
net income by the limited partners' units outstanding for each year.
8
<PAGE> 25
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
CONCENTRATION OF CREDIT RISK - The partnership has bank deposits in
excess of federal deposit insurance limits. The partnership's
management does not anticipate any adverse effect on its financial
position resulting from the credit risk.
USE OF ESTIMATES - The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
NOTE 3 - DISTRIBUTIONS AND ALLOCATIONS OF PROFITS AND LOSSES
DISTRIBUTIONS - Under the partnership agreement, on a quarterly basis,
the general partner determines the amount, if any, of cash available
for distribution and distributes cash as follows:
- 1% to the general partner and 99% to the limited partners until
the limited partners have received a cumulative pretax return on
their adjusted capital investment equal to 10% per year through
the end of the partnership year for which the distribution is
being made, then:
- Payment of unpaid balance of property management fees, if any.
(See Note 6)
- Any remaining cash will be distributed 15% to the general partner
and 85% to the limited partners.
PROFIT AND LOSSES - Profits and losses are allocated 1% to the general
partner and 99% to the limited partners until the limited partners have
received a cumulative pretax return of 10% per year on their adjusted
capital investment; and thereafter, 15% to the general partner and 85%
to the limited partners. At the years ended December 31, 1997, 1996 and
1995, the limited partners received a cumulative pretax return of 10%
and the partnership's net income for these years has been allocated 15%
to the general partner and 85% to the limited partners.
9
<PAGE> 26
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 4 - LONG-TERM DEBT
Long-term debt at December 31, 1997 and 1996 consists of the following:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Note payable to bank, collateralized by real property; interest at 8.5%
for 1997 and 1996. The rate is adjustable each year based on an
amount equal to the monthly median cost of funds index for FSLIC
insured savings and loan associations plus 3.575%; or, if less, 1%
plus such amount; payable in monthly installments of $4,204
including interest; due January 2010. $ 380,193 $ 397,511
Line of credit, collateralized by deed of trust on real property. The
rate is variable at lender's prime rate plus 1%, monthly
installments of $9,768 plus interest; due February 2001. The bank's
prime rate of interest at December 31, 1997 is 8.5%.
953,482 980,280
---------- ----------
1,333,675 1,377,791
Less current portion 49,000 46,000
---------- ----------
$1,284,675 $1,331,791
========== ==========
</TABLE>
Based on the December 31, 1997 interest rates, principal payments
required on these notes during each of the next five years and
thereafter are as follows:
<TABLE>
<S> <C>
1998 $ 49,000
1999 52,000
2000 57,000
2001 62,000
2002 68,000
Thereafter 1,045,675
------------------
$1,333,675
==================
</TABLE>
10
<PAGE> 27
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 5 - INCOME TAXES
The cost of certain assets and the amount of certain expenses reported
for federal income tax purposes are different from the amounts reported
under generally accepted accounting principles in the accompanying
financial statements. The differences arise primarily from:
- Depreciating land improvements and buildings for financial
reporting purposes using the straight-line method over a 30 year
life, and for federal income tax purposes using the straight-line
method over 15, 18, or 31.5 year life.
- Depreciating furniture and equipment for financial reporting
purposes using accelerated and straight-line methods over a 5 or 7
year life, and for federal income tax purposes using the
accelerated cost recovery method or the modified accelerated cost
recovery method over a 5 or 7 year life.
- Deducting sales tax incurred prior to 1987 on property and
equipment acquisitions as an expense for federal income tax
purposes and capitalizing it for financial reporting purposes.
The following is a reconciliation of net income for financial reporting
purposes to net income for federal income tax reporting purposes:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Net income as shown in the statement of
income $ 1,089,393 $ 948,910 $ 132,423
Additional depreciation and amortization
for income tax purposes (6,116) (61,153) (59,171)
Accrued property management fees (605,348) -- --
Other 3,769 349 1,380
----------- ----------- -----------
Net income for federal income tax
reporting purposes $ 481,698 $ 888,106 $ 74,632
=========== =========== ===========
</TABLE>
11
<PAGE> 28
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 6 - RELATED-PARTY TRANSACTIONS
Transactions between the partnership and the general partner, Gerald L.
Whitcomb, and affiliates of the general partner are as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ----------------- ----------------
<S> <C> <C> <C>
Purchases of supplies and equipment $ 68,447 $ 279,632 $106,529
Administrative service fees $ 171,741 $ 159,779 $152,275
Property management fees $ 149,011 $ 148,864 $115,938
</TABLE>
The partnership has a management agreement with an affiliate of the
general partner to employ the affiliate for a period of 20 years as
manager of the motels owned by the partnership. The agreement provides
for payment of a property management fee to the affiliate equal to 5%
of the partnership's gross revenues from motel operations in addition
to reimbursement of certain out-of-pocket cost incurred by the
affiliate in connection with management of the property. The 5% base
fees are recorded as property management fees. The reimbursements of
out-of-pocket costs are recorded as administrative service fees.
Payment of property management fees is subordinated to receipt by the
limited partners of a cumulative, pretax return on their adjusted
capital investment of 10% per annum. This 10% was achieved during 1992.
Effective July 1, 1992, management began paying monthly the current
management fees. Unpaid management fees relating to 1990 and before
totaling $605,348 were paid in 1997.
NOTE 7 - COMMITMENTS
FRANCHISE AGREEMENTS - The partnership has purchased franchise rights
to provide motel services to the general public using a system commonly
known as Super 8 Motels. An initial franchise fee of $15,000 was paid
for each motel and the partnership is committed to pay additional fees
equal to 4% of gross room revenue for the 20 year term of the
respective agreements. In addition, 1% of gross room revenue is
remitted to Super 8 Motels for advertising and participation in the
national reservation system. This amount is included in advertising and
promotion.
LEASE COMMITMENTS - The partnership has an operating lease for
equipment at the Sea-Tac motel. The remaining term of the operating
lease is 1.5 years as of December 31, 1997.
12
<PAGE> 29
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
NOTE 7 - COMMITMENTS (CONTINUED)
Future minimum lease payments based on current rents are as follows:
<TABLE>
<S> <C>
1998 $ 37,126
1999 6,188
-----------------
$ 43,314
-----------------
</TABLE>
NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS
CASH AND CASH EQUIVALENTS - The carrying amount approximates fair value
because of the short-term maturity of those instruments.
LONG-TERM DEBT - The carrying amounts of the partnership's borrowings
under its long-term revolving credit agreement and notes payable
approximate fair value.
NOTE 9 - YEAR 2000 COMPLIANCE
Currently, motel reservations and credit card approvals are handled by
equipment and software provided respectively by Super 8 Motels, Inc.
and the individual banking institutions with which the properties do
business. Currently, internal accounting (with the exception of call
accounting) is completed manually. Pursuant to the POWER-UP program
being designed, instituted, and paid for by Super 8 Motels, Inc. all
motels will be provided a PC-based Property Management System which
integrates all reservations, credit card approvals, call accounting,
security, and motel accounting into a single system.
This fully integrated system is to be in place at every motel within
the Super 8 System by the third quarter of 1999. The new equipment and
software have been designed and developed by the franchisor, and the
franchisee will be required to utilize it. The partnership has been
assured by Super 8 Motels, Inc. that the total system will be year 2000
compliant. The total cost of this conversion, which may be borne by the
motels owned by the partnership, should not exceed $5,000 per motel.
Internally, the general partner and the affiliated management company
have undertaken the task of totally replacing the current corporate
accounting system to ensure that it will fully integrate with the new
Property Management Systems being installed by Super 8 Motels, Inc. It
is anticipated that this conversion will be completed by year end 1998.
Part of the hardware and software will be provided by the POWER-UP
initiative at no cost to the Company. For those systems purchased by
the general partner or affiliates, all software, hardware, and systems
vendors will be required to certify that their products are year 2000
compliant. The cost attributed to each motel in the partnership for
this
13
<PAGE> 30
SUPER 8 MOTELS NORTHWEST I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
- --------------------------------------------------------------------------------
conversion should not exceed $5,000 per motel.
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 463,238
<SECURITIES> 0
<RECEIVABLES> 16,555
<ALLOWANCES> 0
<INVENTORY> 43,931
<CURRENT-ASSETS> 528,881
<PP&E> 5,972,990
<DEPRECIATION> 2,105,168
<TOTAL-ASSETS> 4,449,796
<CURRENT-LIABILITIES> 208,026
<BONDS> 1,284,675
0
0
<COMMON> 0
<OTHER-SE> 2,957,095
<TOTAL-LIABILITY-AND-EQUITY> 4,449,796
<SALES> 0
<TOTAL-REVENUES> 2,980,665
<CGS> 0
<TOTAL-COSTS> 869,464
<OTHER-EXPENSES> 936,472
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 123,416
<INCOME-PRETAX> 1,089,393
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,089,393
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,089,393
<EPS-PRIMARY> 154.33
<EPS-DILUTED> 154.33
</TABLE>
<PAGE> 1
SUPER 8 MOTEL UPDATE
VOL. 17 NO. 4/JANUARY 31, 1998
SUPER 8 MOTELS NORTHWEST I
FOURTH QUARTER 1997
NATIONAL NEWS
PRESIDENT WELLER REPORTS ON 1997 ACCOMPLISHMENTS
In an open letter to franchisees in November, Super 8 Motels President Robert
Weller states, "With our rapid growth in diverse geographic areas, our loyal
guests are now able to find a Super 8 Motel almost anywhere they travel. With
over 1,600 motels now in operation, we are well on our way to reaching yet
another milestone with 100,000 rooms in the chain."
Weller also is quick to point out that while location is important to guests, so
too are attractive and modern buildings, room decor, and friendly service. Due
to the importance of both exterior and interior modernization, Super 8 continues
to assist and place emphasis on continued renovation of many of the older
facilities.
PROGRESS REPORT HFS PROJECT POWER UP
Investors will recall last quarter's announcement of the $75 million investment
that HFS is now making in state-of-the-art computer systems for all Super 8
Motels in the system.
A 20-week Phase One installation and training period commenced in January of
this year. Systems are being installed at a rate of about 25 properties per
week. Hardware, software, installation, and training are being closely monitored
and refined where necessary.
In April, 1998, an accelerated schedule calls for 100 installations per week.
Target date for completion of computer installation at all Super 8 Motels is
July 1, 1999.
Details on the enhancements available through the new system are numerous
and-include:
* Integration of inventory management with the central reservation system
* Improvement of yield management techniques and training
* On-line credit card processing
* Property-to-property direct reservations
* Usage of customer demographics for marketing and sales
* On-line training and operational manuals
Peninsula Management Northwest is currently negotiating with HFS to utilize one
of our Northwest locations as a test site for installation, prior to the summer
season of this year. Investors will be kept abreast of the project's results in
subsequent newsletters.
<PAGE> 2
INTERNET SITE INTEREST GROWING
www.super8.com
Super 8 guests and potential customers continue to discover and utilize the
website introduced in 1996. During the fourth quarter of 1997, over 471,000
visited the site, an increase of 2048% compared to the same time period in 1996.
Though this expanded usage is notable, the national marketing department
projects that these numbers will triple or even quadruple in the spring of 1998,
as travelers start mapping out their summer vacation lodging needs.
REGIONAL NEWS
WOODBURN, OREGON GRAND OPENING SIGNALS ROSEBURG DEVELOPMENT
After a successful November 21, 1997 Grand Opening for the Woodburn, Oregon
Super 8 Motel, development efforts are now being focused in the direction of The
Peninsula Group's Roseburg, Oregon site.
This site is at a highly visible location at a newly constructed I-5
interchange, located at the north end of the city of Roseburg. As site work is
still in the preliminary stages, an actual construction start date- and hence a
projected opening- will be announced in the April, 1998, edition of the Update.
The project consists of an 88-room Super 8 Motel with pool, spa, elevator and
conference room, as well as development pads for a family-style restaurant and
fuel/food mart.
PENINSULA MANAGEMENT NORTHWEST 1998 MOTEL BUSINESS
PLANS APPROVED BY BOARD OF DIRECTORS
Throughout the entire fourth quarter, all motel general managers, regional
managers, and divisional heads conducted individual market studies in
preparation for the 1998 motel business plans and budgets. Further, detailed
appraisals of past operational programs, marketing campaigns, and personnel
systems were written, as were finite inventories and inspections each motel's
physical plant.
This preparation resulted in a complete 1998 Motel Operations Plan for each of
the 26 motels operated by Peninsula Management Northwest, which plan was edited
by the general manager in conjunction with his or her regional manager. Included
are monthly guides and budgets for:
Staffing Marketing
Advertising Training
Outside Sales Maintenance
Renovation Quality Assurance
VIP Sales Inventory
Wage Scales Incentive Plans
Guest Satisfaction & Retention
The focus on the planning process is viewed by management as an important first
step in maintaining and gaining our full share of the Northwest marketplace, in
the face of ever increasing competition in the mid-tier budget motel industry.
Management now turns its efforts during the first quarter of 1998 towards
effective implementation of the plans at the local level, and to vigilant
measuring of each program's success.
<PAGE> 3
The business plans were approved, in concept, by the Board of Directors on
December 22, with the understanding that monthly reviews will trigger action
which adjusts or enhances plans towards the desired result.
SUPER 8 MOTELS NORTHWEST I
The SeaTac Super 8 Motel ended the year with a 65.1% overall occupancy and
within 1% of 1996. However, average daily rate increased by $2.82, or 4.5%, from
$62.46 to $65.28. Overall, room revenues increased by about $52,000, while other
revenue increased slightly.
In Federal Way, the motel had a mixed fourth quarter occupancy and was not able
to sustain its recovery. As a result, the property ended its year 5.6 occupancy
points below 1997. Average daily room rate for the year was $45.62, or $1.38
above 1996. Overall, the property had a decrease in room revenues of about
$61,000 compared to 1996. While these properties did not show the good growth
that they had experienced in 1996, both finished the year with occupancies and
average daily rates higher than the Super 8 national average.
The enclosed unaudited year-end financial statements show that Total Sales in
the partnership increased by only $4,000 over 1996. In examining the various
expense categories, you will note that Payroll and Related Expenses increased
overall disproportionately to revenues, principally as a result of the minimum
wage increase in Washington and the extremely tight labor market which tends to
drive wages and salaries upward in order to attract qualified people. Supplies
and Maintenance are lower because no major renovations were undertaken during
1997 at either property. Supplies and Maintenance will increase dramatically
with the completion of the major renovation in Federal Way, which is scheduled
to begin in February.
Other direct expenses include the costs of outside security services being hired
for the Federal Way property as a result of several robberies during the summer,
as well as some additional expenses for interim management at SeaTac during a
manager change this past summer. The balance of the Expense categories, both
Indirect and Administrative, remained pretty much in line.
The result is that on essentially flat revenues, Net Income rose to $1,078,968,
or an increase of $107,000, principally as a result of the variance in the
Supplies and Maintenance area. The cash position of the partnership remains
strong. All accrued (but previously unpaid) management fees have been paid in
full, and the partners' capital equity increased during 1997.
The fourth quarter 1997 distribution check is in the amount of $30.00 per
partnership unit. This distribution equals a 12% annualized distribution for the
quarter based upon your original capital contribution of $1,000 per unit. This
check brings your total distributions for 1997 to $105.00 per partnership unit,
or 10.5% per annum on each $1,000 invested.
You will find comparative occupancy and room rate charts enclosed, along with
unaudited year-end financial statements. The CPA firm of Moss Adams is currently
performing the 1997 year-end audit of the partnership books. It is not expected
that there will be significant audit adjustments based upon the year-end audit.
A copy of the audited statements will be sent to you, along with your first
quarter 1998 statements, in the April 30, 1998 newsletter.
<PAGE> 4
Two items for your calendars:
1. You should receive your 1997 income tax information during the first
several days in March. As always, it will be mailed not later than February
28. Should you not receive your information within a few days after
February 28, please call the corporate office at 360-943-8000. You only
need to leave your name, partnership interest, and proper address with the
receptionist and she will forward the information to the Investor Relations
Administrator.
Please do not call for the information prior to the above noted date. The
information is mailed to you immediately upon receipt from the tax preparer and
we do not have the information before that date. Thank you for your help in this
matter.
2. The annual Partnership Informational Meetings will be held as follows-.
DATE: Tuesday, May 19, 1998
TIME: 7:00 p.m.
LOCATION: SeaTac Super 8 Motel
3100 South 192nd
SeaTac, Washington
-OR-
DATE: Thursday, May 21, 1998
TIME: 8:00 p.m.
LOCATION: Portland Airport Super 8 Motel
11011 N.E. Holman
Portland, Oregon
Thank you for your continuing support. If you have travel plans coming up, be
sure to THINK SUPER 8 and call 1-800-800-8000 for your room reservations at any
Super 8 located in Canada and the United States.
THE OFFICIAL PUBLICATION OF THE PENINSULA GROUP INCORPORATED
7515 Terminal St. SW, Tumwater, WA 98501 / (360) 943-8000
Owners and operators of America's finest economy lodging
serving 26 convenient Northwest locations:
ALASKA: Anchorage - Fairbanks - Juneau - Ketchikan OREGON: Ashland - Bend -
Corvallis - Grants Pass - Klamath Falls Portland International Airport - Redmond
- - *Roseburg - Salem - Wilsonville - Woodburn WASHINGTON: Bremerton - Ellensburg
- Federal Way Ferndale - Kelso - Kennewick - Moses Lake - Olympia/Lacey - Port
Angeles - Sea-Tac International Airport - Walla Walla - Yakima
*Coming soon
