New Hampshire Outlook

1. Rachel J. Roginsky, ISHC Matthew R. Arrants Pinnacle Advisory Group 76 Canal Street Boston, MA 02114 Telephone: 617-722-9916 Fax: 617-722-9917 rroginsky@pinnacle-advisory.com marrants@pinnacle-advisory.com New Hampshire Outlook Pinnacle Realty Investments Pinnacle Advisory Group

2. Total United StatesRoom Supply/Demand Percent Change12 Month Moving Average To August 2003 Source: Smith Travel Research

3. Total United StatesOccupancy / ADR Percent Change12 Month Moving Average To August 2003 Source: Smith Travel Research

4. Total United StatesOccupancy and ADR12 Month Moving Average To August 2003 Source: Smith Travel Research

5. Total U.S.Monthly OccupancyYear-Over-Year Aug 2001 – Aug 2003 Source: Smith Travel Research

6. Total U.S.Monthly ADRYear-Over-Year Aug 2001 – Aug 2003 Source: Smith Travel Research

7. Total U.S.Monthly RevParYear-Over-Year Aug 2001 – Aug 2003 Source: Smith Travel Research

8. Total U.S.Daily Occupancy*Sep 13 YTD 2000 - 2003 *Excluding Sunday

9. Total U.S.Average Daily Room Revenue (M)Sep 13 YTD 2000 - 2003 In Millions *Excluding Sunday

10. Total United StatesSupply/Demand Percent Change1998 – 2004P Source: Smith Travel Research

11. Total United StatesOccupancy Percent1998 – 2004P Source: Smith Travel Research

12. Total United StatesADR Percent Change1998 – 2004P Source: Smith Travel Research

13. Total U.S.Estimated ADR ChangeImpact of 3rd Party Intermediaries

14. Total U.S.Estimated Lost Room Revenue3rd Party Intermediaries In Millions

15. New England Lodging Market

16. New England Occupancy - 2002 Source: Smith Travel Research / Pinnacle Advisory Group

17. New England Average Daily Rate – 2002 Source: Smith Travel Research / Pinnacle Advisory Group

18. New England RevPAR – 2002 Source: Smith Travel Research / Pinnacle Advisory Group

19. New England Change in Performance - 2002 Source: Smith Travel Research / Pinnacle Advisory Group

20. New England Change in Performance – YTD August 2003 Source: Smith Travel Research / Pinnacle Advisory Group

21. New Hampshire Lodging Market

22. Year-to-date Occupancy – August Major Markets vs. Statewide Average Source: Smith Travel Research / Pinnacle Advisory Group

23. Year-to-date Average Rate – August Major Markets vs. Statewide Average Source: Smith Travel Research / Pinnacle Advisory Group

24. Year-to-date RevPAR – August Major Markets vs. Statewide Average Source: Smith Travel Research / Pinnacle Advisory Group

25. Change In Performance by Market YTD Aug 2003 Source: Smith Travel Research / Pinnacle Advisory Group

26. Portsmouth Lodging Market

27. Portsmouth Year To Date Occupancy (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

28. Portsmouth Year To Date Avg. Rate (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

29. Portsmouth Year To Date RevPAR (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

30. Portsmouth - Factors Affecting Market Performance • Lack of Scandals (Cabletron/Tyco) • New Supply • Wentworth • 2 Hotels in Zoning • Developer Interest • Improving economy? • Cautious Optimism

31. Nashua / Merrimack Lodging Market

32. Nashua / Merrimack Year To Date Occupancy (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

33. Nashua / Merrimack Year To Date Avg. Rate (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

34. Nashua / Merrimack Year To Date RevPAR (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

35. Nashua - Factors Affecting Market Performance • Improving Business Travel • Increases in Group Demand • No New Supply • Cautious Optimism

36. Manchester Lodging Market

37. Manchester Year To Date Occupancy (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

38. Manchester Year To Date Avg. Rate (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

39. Manchester Year To Date RevPAR (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

40. Manchester - Factors Affecting Market Performance • New Supply • New Supply • New Supply

41. Manchester – New Supply • Springhill Suites – 3/02 • Holiday Express – 3/03 • Hampton Inn and Suites – 10/03 • Homewood Suites – 10/03 • Residence Inn - 2005? • Hilton Garden Inn – 2005?

42. Concord Lodging Market

43. Concord Year To Date Occupancy (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

44. Concord Year To Date Avg. Rate (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

45. Concord Year To Date RevPAR (Aug) Source: Smith Travel Research / Pinnacle Advisory Group

46. Concord - Factors Affecting Market Performance • No New Supply • Changes at the Hampton Inn Bow • Departure of Allegro • Some Modest Growth

47. White Mountains and Lakes Region

48. White Mountains and Lakes Region – Market Performance • Rates are Up Occupancy is down • Overall, markets are relatively flat but there are winners and losers • Short Booking Window • Shorter Lengths of Stay • Outlook for corporate and tour groups looks good for 2004

49. Conclusion / Summary • Signs are positive for Most Markets • Group Pace for 04 is ahead of 03 • More Stable Geopolitical Situation • Improving Economy • Overall – Cautious Optimism

50. 2004 Projections* • White Mountains and Lakes Region • Occupancy up 3 Points • Rates up 2 Percent • Portsmouth • Occupancy up 1 point • Rates up 3 percent • Nashua - Merrimack • Occupancy up 2 points • Rates up 2 percent • Manchester • Occupancy down 2 points • Rates Flat • Concord • Occupancy up 2 points • Rates up 2 percent *(Do not reflect impact of Primaries)