($ in thousands)

2000

1999

1998

Cash flows from operating activities:

     Net income

$

15,055

$

16,901

$

19,526

         Adjustments to reconcile net income to net cash 

         provided by operating activities:

              Minority interest

625

1,026

1,349

              Depreciation

21,092

20,565

16,389

              Amortization

933

834

465

              Unearned compensation amortization

458

321

197

              Loss of sale on properties

850

239

--

        Changes in assets and liabilities:

              Lease revenue receivable

484

42

(1,971)

              Prepaid expenses and other assets

(1,137)

(1,497)

(1,792)

              Deferred lease revenue

499

--

--

              Accounts payable and accrued expenses

730

1,521

442

                         Net cash provided by operating activities

39,589

39,952

34,605

Cash flows from investing activities:

    Note receivable

(1,080)

--

--

    Investment in joint ventures

(6,999)

(183)

--

    Deferred acquisition costs

(240)

(85)

(448)

    Sale of hotel properties and land parcel

5,461

3,789

445

    Investment in hotel properties

(7,373)

(16,179)

(135,395)

                        Net cash used in investing activities

(10,231)

(12,658)

(135,398)

Cash flows from financing activities:

    Purchase of interest rate cap agreement

--

(57)

--

    Fees paid to register additional common shares

(32)

(49)

(45)

    Fees paid in connection with new financing facilities

(91)

(1,388)

(2,125)

    Proceeds from GE Capital Corporation loan

--

--

71,000

    Proceeds from various demand notes

--

--

34,385

    Net proceeds from issuance of common stock

--

--

600

    Payment of distributions to shareholders

(25,839)

(25,248)

(24,886)

    Payment of distributions to minority interest

(1,454)

(1,947)

(1,886)

    Long term debt payments

(1,103)

(1,025)

--

    Net increase (decrease) in line of credit borrowing

(700)

2,415

23,619

            Net cash provided by (used in) financing activities

(29,219)

(27,299)

100,662

Net increase (decrease) in cash

139

(5)

(131)

Cash at beginning of period

28

33

164

Cash at end of period

$

167

$

28

$

33

Supplemental disclosure:

              Cash paid for interest

$

12,896

$

12,339

$

9,575

Summary of non-cash investing and financing activities:

    Contribution of land parcel to joint venture

$

1,518

$

--

$

--

    Distributions declared but not paid

6,828

6,806

6,789

    Issuance of shares in exchange for partnership units

--

3,868

151

    Adjustment to minority interest due to issuance of common stock 

    and conversion of minority interest units to common stock 

(19)

1,426

193

    Deferred equity compensation

705

535

401

The accompanying notes are an integral part of the financial statements.