Buckhead America Corp

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International Guild of Hospitality & Restaurant Managers

7000 Central Parkway
Suite 850
Atlanta , GA 30328

Phone: (770 ) 393-2662
Fax:: (770 ) 393-2480

Buckhead America Corporation, incorporated in December 1992, operates in the hospitality industry. Its principal holdings include hotels, leasehold interests in hotels, loans and other investments secured by hotels, franchising rights, hotel management contracts and other related assets. Its principal product is the Country Hearth Inn mid-priced hotel chain, which the Company acquired in May 1994. The primary activities of the Company involve the expansion of the Country Hearth Inn chain. Expansion of the Country Hearth Inn chain has been effected through direct acquisition and conversion of existing hotels, new construction and through franchise sales.

In August 2000, the Company acquired a 40-unit all-suites property in Grand Rapids , Michigan , and a 42-unit all-suites property in Dublin , Ohio . Both properties were immediately converted to operate under the Country Hearth Inn franchise system. The Dublin property is owned by a limited partnership in which the Company holds an approximate 74% interest. The Grand Rapids property is owned by an LLC in which the Company holds a 20% interest. The Company leases (triple-net basis) the property from the LLC. The Dublin property is under contract for sale and the Company is conducting negotiations for the lease termination and sale of the Grand Rapids property.

In September 1997, Buckhead acquired eight 40-room hotel properties located primarily in smaller communities of Kentucky (five) and Missouri (three). All eight were converted to operate as Country Hearth Inns. From 1998 through 2000, the Company constructed five additional properties of similar design in Kentucky (two), Ohio (two) and Indiana (one). Generally, these properties are interior corridor 40-room facilities located in smaller communities. During 2001, five of these properties were sold. The remaining eight properties are held for sale. The Company granted leasehold interests in two of the properties and the related agreements also included purchase options for the properties, one of which was executed in March 2002.

The Company had entered into several long-term triple-net lease agreements relating to 40-room properties to be constructed in smaller communities in Georgia and Tennessee , four of which became effective during 2001. Generally, each lease had an initial term of 15 years and options for up to an additional 15 years. During 2001, several of these leases were terminated and of the six leases that remained as of December 31, 2001 , one was terminated in January 2002. The Company is conducting negotiations for the termination of the remaining leases.

During 1997 and 1998, the Company, in two separate transactions, entered into long-term lease agreements for eight hotel properties owned by Host Funding, Inc. During 2001, the Company negotiated the termination of six of these leases. During the first quarter of 2002, the Company completed negotiations for the termination of the remaining two leases.

In addition to the leased properties, the Company leases three other limited-service hotels all of which are located in Ohio . All three properties operate as Country Hearth Inns. Lease terms range from 10 to 30 years with options to renew at varying terms. Certain of the leases provide for contingent payments based upon a percentage of revenues. Two of these leasehold interests are being marketed for sale.

The Company sold, or is in the process of selling, a number of hotel properties. The Mason, Ohio Country Hearth Inn, a 93-room hotel that was constructed in 1996 and 1997 and opened in June 1997, was sold in March 2002. The Company's 186-room Northwest Inn in St. Louis , Missouri was sold in February 2002. The Norcross, Georgia Country Hearth Inn is a 121-room hotel that was acquired by the Company in 1998 and was converted to operate as a Country Hearth Inn in 1999. This property is held for sale and is listed with a broker.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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