Janus Hotels and Resorts

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International Guild of Hospitality & Restaurant Managers

2300 Corporate Blvd., N.W., Suite 232
Boca Raton , FL 33431
Phone: (561) 997-2325
Fax: (561) 994-5331

Janus Hotels and Resorts, Inc. is in the business of operating and managing hotels. The Company has ownership interests in 14 hotels (the Owned Hotels). As of March 15, 2002 , the Company also managed, but did not own, an additional 39 hotels (Managed Hotels).

In April 1997, the Company entered the hotel business by acquiring certain assets relating to the hospitality business. These comprised six hotels and an 85% interest in a partnership that owns one hotel (the minority interest was acquired in 2001); a hotel management company; a management fee-sharing arrangement with Summit Hotel Management Company, which has since been terminated, and two loans, one of which is secured by a first mortgage on a hotel, which was subsequently terminated based on a merger, and the other of which is secured by a first mortgage on a campground.

In August 1998, the Company acquired four hotels near Cleveland , Ohio , (the Cornerstone Hotel Group) from an unrelated party. Effective January 1, 1999, the Company acquired, by merger, Beck Hospitality, Inc. II, which owned six hotels and a 75% interest in another hotel.

Franchise Agreements

The Company has entered into non-exclusive multi-year franchise, licensing or membership agreements, which allow it to utilize the franchise brand name of the franchiser or licensor for the hotels. The Company has franchise or membership relationships with Bass Hotels (Holiday Inn), Days Inn, Best Western, Choice Hotels (Comfort Inn), Ramada Inn and Red Roof. Through the Managed Hotels, the Company has additional relationships with other franchisers, including Howard Johnson, Ramada, Wingate and Radisson.

Owned Hotels

The Owned Hotels are located in five states and operate under franchise or membership agreements that provide for the use of the brand names Days Inn, Best Western, Holiday Inn and Comfort Inn. One of the Owned Hotels is located adjacent to the Paramount Kings Dominion amusement park near Richmond , Virginia . The remaining Owned Hotels are located near office parks, interstate highways, airports or tourist attractions in Ohio , Florida and North Carolina . The Owned Hotels generally offer remote control cable television, a swimming pool and, in many cases, restaurants. Some of them offer meeting and banquet facilities and room service.

Managed Hotels

The Company operates the Managed Hotels pursuant to management agreements (the Management Agreements) with the owners of such hotels. Managed Hotels are operated primarily under nationally recognized brand names. Four Managed Hotels are non-franchised properties.

Janus is responsible for all matters relating to the day-to-day operations of the Managed Hotels, and is required to prepare an annual operating budget, market the hotels and ensure compliance with the terms of applicable franchise agreements. The Company is also responsible for the retention and supervision of personnel necessary for the operation of the hotel. The Company has a contract with a third party for this purpose.

Under the terms of the Management Agreements, management fees either are a fixed amount or are based on a percentage of a property's total revenues, ranging from 3% to 5%, and/or incentive payments based upon net operating income. Additional fees are generated from accounting services. The Management Agreements generally have terms of one year to five years and are automatically renewed for successive similar terms, unless either party decides not to renew prior to the expiration of the current term. Either party may terminate a Management Agreement for cause prior to a stated expiration date, except in the case of two Management Agreements, which permit termination at any time without cause. Generally, the owner of a property has the right to terminate a Management Agreement upon sale of the hotel to an unrelated third party, subject to the payment of a termination fee to the Company.

The Company competes with franchisers of Six Continent Hotels (Holiday Inn), Days Inn, Knights Inn, Best Western, Choice Hotels (Comfort Inn) and Red Roof Inn .

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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