Exhibit 99.1

BPG/CGV Hotel Partners IX, LLC

Financial Statements

Year Ended December 31, 2005

Table of Contents

Independent Auditor’s Report

To the Members

BPG/CGV Hotel Partners IX, LLC

Washington, DC

We have audited the accompanying balance sheet of BPG/CGV Hotel Partners IX, LLC (the Company) as of December 31, 2005, and the related statements of operations, changes in members’ capital, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides 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 BPG/CGV Hotel Partners IX, LLC as of December 31, 2005, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Snyder, Cohn, Collyer, Hamilton & Associates, P.C.

March 24, 2006

1

BPG/CGV Hotel Partners IX, LLC

Balance Sheet

December 31, 2005

See Accompanying Notes

2

BPG/CGV Hotel Partners IX, LLC

Statement of Operations

For the year ended December 31, 2005

See Accompanying Notes

3

BPG/CGV Hotel Partners IX, LLC

Statement of Changes in Members’ Capital

For the year ended December 31, 2005

See Accompanying Notes

4

BPG/CGV Hotel Partners IX, LLC

Statement of Cash Flows

For the year ended December 31, 2005

See Accompanying Notes

5

BPG/CGV Hotel Partners IX, LLC (the “Company”) (a Delaware limited liability company) was formed on September 19, 2000 for the purpose of designing, developing, constructing and operating an approximately 293,000 square foot, 273 room hotel and a parking garage (the Project) on a ground leased parcel in East Boston, Massachusetts. The Company is managed by DDODE Associates, LLC (DDODE) and BPG Hotel Partners IX, LLC (BPG) (collectively, the Members). The Members contributed their entire interests, in and to the Project, to the Company. On February 28, 2001 and November 1, 2002, the Members amended and restated the Company’s operating agreement to reflect their contributions to the Company’s capital made to date, and to modify the manner in which available cash flow is distributed to the members. Construction began during May 2001, and was completed in February 2003. The hotel opened for business February 14, 2003 as an Embassy Suites. The Company has no specific date of dissolution.

Basis of presentation - The financial statements include all the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents - For purposes of preparing the statement of cash flows, the Company considers all investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash and funds held in escrow accounts not readily available for use are not considered as cash and cash equivalents.

Restricted escrows - The senior loan agreement requires that the hotel maintain reserve accounts for property taxes, insurance and replacement reserves.

Accounts receivable - trade - Accounts receivable represent amounts due from customers. Management reviews open accounts monthly and takes appropriate steps for collection. When needed an allowance for bad debts is recorded to reflect management’s determination of the amount deemed uncollectible. At December 31, 2005 it was determined that all open accounts receivable were collectible. Therefore no provision for bad debts has been recorded.

Inventories - Inventories of food, beverages, linens and guest supplies are stated at the lower of cost or market as determined by the first-in, first-out method.

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Income taxes - The Company has elected to be taxed as a partnership for income tax reporting purposes. The Company does not pay federal or state corporate income taxes on its taxable income (nor are they allowed a net operating loss carryback or carryover as a deduction). Instead, the members report their proportionate share of the Company’s taxable income (or loss), deductions and tax credits on their personal income tax returns. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements.

Property and equipment - Property and equipment are recorded at cost. Maintenance, repairs and other expenses that do not enhance the value or increase the basic useful lives of the assets are charged to current operations. Building and improvement costs are being depreciated on a straight-line basis over lives ranging from 15 to 40 years. Furniture and equipment are being depreciated on a straight-line basis over five to ten years, which approximates the useful life of the asset involved. Depreciation expense for the year ended December 31, 2005 was $2,091,260.

Concentration of credit risk - Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and temporary cash investments. The Company places its cash and money market accounts with highly rated financial institutions and national brokerage firms. Cash on hand at federally insured institutions may exceed insurance limits from time to time. The Company has not experienced any losses in such accounts, and monitors the credit worthiness of the financial institutions with which it conducts business.

Deferred costs - Financing costs have been capitalized, and are being amortized using the straight-line method over the term of the related financing. Initial franchise fees are being amortized using the straight-line method over 60 months.

Revenue - Revenue is generally recognized as hotel services are provided to guests.

Advertising - The cost of advertising is generally expensed as incurred. Total expenses for the year ended December 31, 2005 were $198,557.

Interest rate caps - The Company has entered into interest rate cap agreements related to its mortgage notes payable. The Company records these derivative instruments on the balance sheet as either an asset or liability measured at their fair value. Changes in the derivative instruments’ fair value are recognized currently in earnings. The Company has recorded an unrealized gain on its interest rate caps of $66,329 for the year ended December 31, 2005.

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Fair value of financial instruments - The fair value of financial instruments is determined by reference to market data and other valuation techniques, as appropriate. The Company’s financial instruments consist of cash and cash equivalents, mortgages payable and interest rate cap agreements. Unless otherwise disclosed, the fair value of the financial instruments approximates their recorded values.

Financing costs totaling $1,382,051 incurred in obtaining financings have been capitalized, and are being amortized using the straight-line method over the term of the related financing. Amortization of deferred financing costs totaled $455,431 for the year ended December 31, 2005.

The initial franchise fee deposit of $21,500 is being amortized using the straight-line method over 60 months. Amortization of the franchise fees totaled $4,300 for the year ended December 31, 2005.

At December 31, 2005 estimated amortization expense is as follows:

Allocations of profits and losses are made in accordance with the provisions of Section 704(b) of the Internal Revenue Code.

Distributions of cash shall be applied or distributed (i) first, to the extent and in proportion to any accrued and unpaid interest on each Member’s shortfall loans, as defined, if any, (ii) second, to the extent of and in proportion to each Member’s unrecovered shortfall loan amounts, (iii) third, to the Members who have made construction shortfall contributions, as defined, pro rata, in proportion to their unrecovered construction shortfall contributions, until Members have received their construction shortfall preferred return, as defined, (iv) fourth, to the Members who have made construction shortfall contributions, pro rata, in proportion to their unrecovered construction shortfall contributions, (v) fifth, to the Members, pro rata, in proportion to their unrecovered contributions, as defined, excluding the DDODE subordinated initial contribution, as defined, until the Members have received cumulative distributions equal to a cumulative 12% per annum return, compounded annually on their unrecovered contributions, (vi) sixth, to the Members to the extent of and in proportion to each Member’s unrecovered contributions, excluding the

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DDODE subordinated initial contribution, (vii) seventh, to DDODE, until DDODE has received cumulative distributions equal to a cumulative 12% per annum return, compounded annually on its DDODE subordinated initial contribution, (viii) eighth, to DDODE to the extent of any unrecovered DDODE subordinated initial contribution, (ix) ninth, to DDODE, in the amount of $250,000, if BPG fails to make any additional contributions, and (x) tenth, to the Members in proportion to their respective percentage interests.

Except for the obligations of BPG regarding the contribution of capital, under provisions of the operating agreement, no member shall be obligated personally for any debt, obligation or liability of the Company, or any other member, solely by reason of being a member of the Company. Additionally, no member shall have any responsibility to restore negative capital account balances or to contribute to, or in respect of, the liabilities or obligations of the Company.

Senior debt

On March 19, 2004, the Company entered into two new loans with proceeds used to pay outstanding balances on the existing debt. The first loan, in the amount of $32,000,000, is with Greenwich Capital Financial Products, Inc. The loan, which is secured by a first mortgage on the property, bears interest at a variable rate set by the adjusted LIBOR rate (as defined) plus 3.86% (8.17% at December 31, 2005), and requires monthly payments of interest only through April 1, 2007, the maturity date. In addition to the monthly payment of interest, if the loan is extended, as defined in the loan agreement, then commencing on May 1, 2007, the Company shall make monthly payments of $175,000 through the extended maturity date. Interest incurred under the loan amounted to $2,302,773 for the year ended December 31, 2005.

The loan is secured by a first mortgage on the property to Greenwich Capital Financial Products, Inc. and certain guarantees given by principals of the Members.

On March 16, 2004, the Company entered into a three-year interest rate cap with SMBC Derivative Products Limited at a cost of $235,000 and fair value of $231,468 as of December 31, 2005.

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Junior debt

The second loan, in the amount of $15,000,000, is with Ashford Hospitality Finance LP. The loan, which is secured by a mortgage on the property, bears interest at a variable rate set by the adjusted LIBOR rate (as defined) plus 10.25% (14.54% at December 31, 2005), and requires monthly payments of interest only through April 7, 2007, the maturity date. Interest incurred under the loan amounted to $2,034,714 for the year ended December 31, 2005.

The note is also secured by certain guarantees given by principals of the Members.

On March 16, 2004, the Company entered into a three-year interest rate cap with SMBC Derivative Products Limited at a cost of $69,000 and fair value of $19,432 as of December 31, 2005.

Under the provisions of the Senior debt and Junior debt loan agreements discussed above, the Company is required to maintain a minimum debt yield. As the result of the Company’s net operating loss, the Company’s debt yield did not meet this requirement during 2005. As a result, the lenders of the Senior debt and Junior debt loans have the right but not the obligation to call on the letters of credit that are pledged by the owners as additional collateral. The Company has not received any notices from its lenders indicating their intent to draw on the letters of credit.

The hotel operates as an Embassy Suites Hotel under a licensing agreement with Hilton Hotels Corporation. Under this agreement, the hotel pays royalty fees, marketing fees and reservation fees in exchange for brand identification and marketing. This agreement expires on November 12, 2019.

During 2005, the hotel was obligated on various operating leases for transportation and office equipment. Operating lease expense for the year was $142,653.

On November 27, 1997, DDODE entered into a ninety-nine year ground lease, for land located at the intersection of Cottage Street and Porter Street, in East Boston, Massachusetts, upon which, as described in Note 1, the Company constructed a hotel. On September 26, 2000, DDODE assigned its interest in the ground lease to the Company.

The ground lease provides for monthly rental payments of $50,000.

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In addition to rents stated above, the ground lease provides for semiannual payments of 1.25% of gross revenues, as defined, for the prior six-month period. This provision is to commence on January 1, 2010, and continues to the end of the term of the lease.

Future minimum lease payments on all leases are as follows for the years ending December 31:

The Company entered into a Management Agreement, dated September 15, 2000, with Pollin/Miller Hospitality Strategies, Inc. (PMHS), an affiliate of BPG, for management services and accounting services in connection with the operation of the Project upon issuance of a certificate of occupancy after completion of the construction and development of the Project. During 2005, $434,949 was earned by PMHS for management and accounting fees. In addition to management services, the Company reimburses PMHS for salaries and related benefits allocable to the hotel, which totaled $3,781,782 for the year ended December 31, 2005. At December 31, 2005, the total amount due to PMHS was $157,609.

On November 6, 2001, the Company made a noninterest-bearing advance of $25,000 to BS/CGCC, an affiliate of CGV, for working capital. These funds were refunded to the Company during 2005.

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BPG/CGV Hotel Partners IX LLC

Financial Statements

Year Ended December 31, 2004

Contents

Report of Independent Auditors

The Members of

BPG/CGV Hotel Partners IX LLC

We have audited the accompanying balance sheet of BPG/CGV Hotel Partners IX LLC (the Company) as of December 31, 2004, and the related statements of operations, changes in members’ capital, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides 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 BPG/CGV Hotel Partners IX LLC at December 31, 2004, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming that BPG/CGV Hotel Partners IX LLC will continue as a going concern. As more fully described in Note 2, the Company has incurred recurring operating losses. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plan in regard to this matter is also described in Note 2. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

/s/ Ernst & Young LLP

April 29, 2005

1

BPG/CGV Hotel Partners IX LLC

Balance Sheet

December 31, 2004

See accompanying notes.

2

BPG/CGV Hotel Partners IX LLC

Statement of Operations

For the Year Ended December 31, 2004

See accompanying notes.

3

BPG/CGV Hotel Partners IX LLC

Statement of Changes in Members’ Capital

For the Year Ended December 31, 2004

See accompanying notes.

4

BPG/CGV Hotel Partners IX LLC

Statement of Cash Flows

For the Year Ended December 31, 2004

5

BPG/CGV Hotel Partners IX LLC

Statement of Cash Flows (continued)

For the Year Ended December 31, 2004

See accompanying notes.

6

BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 1 – BUSINESS FORMATION AND OPERATIONS

BPG/CGV Hotel Partners IX LLC (the Company), a Delaware limited liability company, was formed on September 19, 2000 for the purpose of designing, developing, constructing and operating an approximately 293,000 square foot, 273 room hotel and a parking garage (the Project) on a ground leased parcel in East Boston, Massachusetts. The Company is managed by DDODE Associates LLC (DDODE) and BPG Hotel Partners IX LLC (BPG) (collectively, the Members). The Members contributed their entire interests, in and to the Project, to the Company. On February 28, 2001 and November 1, 2002, the Members amended and restated the Company’s operating agreement to reflect their contributions to the Company’s capital made to date, and to modify the manner in which available cash flow is distributed to the members. Construction began during May 2001, and was completed in February 2003. The hotel opened for business February 14, 2003 as an Embassy Suites.

The Company has no specific date of dissolution.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements include all the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes

The Company has elected to be taxed as a partnership for income tax reporting purposes and, as such, no income tax expense or liability is presented, as such amounts are the responsibility of the members and not the Company.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Property and Equipment

Property and equipment are recorded at cost. Building and improvement costs are being depreciated on a straight-line basis over lives ranging from 20 to 40 years. Furniture and equipment are being depreciated on a straight-line basis over ten years, which approximates the useful life of the asset involved.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Restricted Escrows

The senior loan agreement requires that the hotel maintain reserve accounts for property taxes, insurance and replacement reserves.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and temporary cash investments. The Company places its cash and money market accounts with highly rated financial institutions and national brokerage firms. Cash on hand at federally insured institutions may exceed insurance limits from time to time. The Company has not experienced any losses in such accounts, and monitors the credit worthiness of the financial institutions with which it conducts business.

Deferred Costs

Financing costs totaling $1,382,051 incurred in obtaining financings have been capitalized, and are being amortized using the straight-line method over the term of the related financing. Amortization of deferred financing costs totaled $372,974 for the year ended December 31, 2004.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Inventories

Merchandise and supplies are stated at the lower of cost (first-in/first-out method) or market.

Revenue

Revenue is generally recognized as hotel services are provided to guests.

Advertising

The cost of advertising is generally expensed as incurred.

Interest Rate Caps

The Company has entered into interest rate cap agreements related to its mortgage notes payable. The Company records these derivative instruments on the balance sheet as either an asset or liability measured at its fair value. Changes in the derivative instruments’ fair value are recognized currently in earnings. The Company has recorded an unrealized loss on its interest rate caps of $133,529 for the year ended December 31, 2004.

Fair Value of Financial Instruments

The fair value of financial instruments is determined by reference to market data and other valuation techniques, as appropriate. The Company’s financial instruments consist of cash and cash equivalents, mortgages payable and interest rate cap agreements. Unless otherwise disclosed, the fair value of the financial instruments approximates their recorded values.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has reported negative cash flows from operating activities of $2,907,105 and a net loss totaling $5,705,499 (net loss of $3,062,282 adjusted from noncash items such as depreciation, amortization, loss on early extinguishment of debt and unrealized loss on interest rate cap) for the year ended December 31, 2004.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company’s continuation as a going concern is dependent upon its ability to significantly improve cash flows from operations and the Members’ ability to provide sufficient contributions to allow the Company to satisfy its obligations on a timely basis. Management’s plan to improve cash flows from operations includes increasing occupancy significantly to improve revenues and implementing cost containment measures to reduce certain operating expenses in 2005. Management believes that the increase in cash flows from operations, combined with the Members’ intent and ability to provide additional capital contributions, should provide the Company with sufficient resources to meet its near-term cash requirements.

These factors indicate that the Company may be unable to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might result should the Company be unable to continue as a going concern.

NOTE 3 – ALLOCATIONS OF PROFITS AND LOSSES AND DISTRIBUTIONS

Allocations of profits and losses are made in accordance with the provisions of Section 704(b) of the Internal Revenue Code.

Distributions of cash shall be applied or distributed (i) first, to the extent and in proportion to any accrued and unpaid interest on each Member’s Shortfall Loans, as defined, if any, (ii) second, to the extent of and in proportion to each Member’s unrecovered Shortfall Loan amounts, (iii) third, to the Members who have made Construction Shortfall Contributions, as defined, pro rata, in proportion to their unrecovered Construction Shortfall Contributions, until Members have received their Construction Shortfall Preferred Return, as defined, (iv) fourth, to the Members who have made Construction Shortfall Contributions, pro rata, in proportion to their unrecovered Construction Shortfall Contributions, (v) fifth to the Members, pro rata, in proportion to their Unrecovered Contributions, as defined, excluding the DDODE Subordinated Initial Contribution, as defined, until the Members have received cumulative distributions equal to a cumulative 12% per annum return, compounded annually on their Unrecovered Contributions, (vi) sixth, to the Members to the extent of and in proportion to each Member’s Unrecovered Contributions, excluding the DDODE Subordinated Initial Contribution, (vii) seventh, to DDODE, until DDODE has received cumulative

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 3 – ALLOCATIONS OF PROFITS AND LOSSES AND DISTRIBUTIONS (continued)

distributions equal to a cumulative 12% per annum return, compounded annually on its DDODE Subordinated Initial Contribution, (viii) eighth, to DDODE to the extent of any unrecovered DDODE Subordinated Initial Contribution, (ix) ninth, to DDODE, in the amount of $250,000, if BPG fails to make an Additional Contribution, as defined, when it is required and DDODE has made all of its required Additional Contributions, and (x) tenth, to the Members in proportion to their respective Percentage Interests.

Except for the obligations of BPG regarding the contribution of capital, under provisions of the operating agreement, no member shall be obligated personally for any debt, obligation or liability of the Company, or any other member, solely by reason of being a member of the Company. Additionally, no member shall have any responsibility to restore negative capital account balances or to contribute to, or in respect of, the liabilities or obligations of the Company.

NOTE 4 – MORTGAGE DEBT

Senior Debt

On March 19, 2004, the Company entered into two new loans with proceeds used to pay outstanding balances on the Fleet Debt and Fidelity Debt. The first loan, in the amount of $32,000,000, is with Greenwich Capital Financial Products, Inc. The loan, which is secured by a first mortgage on the property, bears interest at a variable rate of the adjusted LIBOR rate (as defined) plus 3.86% (6.735% at December 31, 2004), and requires monthly payments of interest only through April 1, 2007, the maturity date. In addition to the monthly payment of interest, if the loan is extended, as defined in the loan agreement, then commencing on May 1, 2007, the Company shall make monthly payments of $175,000 through the extended maturity date. Interest incurred under the loan amounted to $1,442,858 for the year ending December 31, 2004.

The loan is secured by a first mortgage on the property to Greenwich Capital Financial Products, Inc. and certain guarantees given by principals of the Members.

On March 16, 2004, the Company entered into a three-year Interest Rate Cap with SMBC Derivative Products Limited at a cost of $235,000 and fair value of $156,222 as of December 31, 2004.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 4 – MORTGAGE DEBT (continued)

Junior Debt

The second loan, in the amount of $15,000,000, is with Ashford Hospitality Finance LP. The loan, which is secured by a mortgage on the property, bears interest at a variable rate of the adjusted LIBOR rate (as defined) plus 10.25% (12.53% at December 31, 2004), and requires monthly payments of interest only through April 7, 2007, the maturity date. Interest incurred under the loan amounted to $1,386,008 for the year ending December 31, 2004.

The note is also secured by certain guarantees given by principals of the Members.

On March 16, 2004, the Company entered into a three-year Interest Rate Cap with SMBC Derivative Products Limited at a cost of $69,000 and fair value of $28,349 as of December 31, 2004.

Under the provisions of the Senior Debt and Junior Debt loan agreements discussed above, the Company is required to maintain a minimum debt yield. As the result of the Company’s net operating loss, the Company’s debt yield did not meet this requirement during 2004. Due to market conditions, the Company does riot anticipate satisfying the minimum debt yield requirement for all of 2005. As a result, the lenders of the Senior Debt and Junior Debt loans have the right but not the obligation to call on the letters of credit that are pledged as additional collateral. The Company has not received any notices from its lenders indicating their intent to draw on the letters of credit.

On March 19, 2004, the following debt was paid off via refinancing with the above Senior and Junior notes.

Fleet Debt

On February 28, 2001, the Company entered into a construction and interim loan agreement with Fleet National Bank, as agent for itself and other co-lenders (Fleet), in the amount of $28,000,000. On February 28, 2002, Fleet agreed to increase the principal amount of the note to $29,500,000 to fund development costs. Under the terms of this loan, advances did not commence until all of the proceeds from the sale of the Junior Debt described below were advanced to and expended by the Company. At the option of the Company, the loan bore interest at a variable rate, based on Fleet’s prime rate plus 1/2%, or the adjusted LIBOR Rate (as defined) plus 2.75%. Interest incurred under the loan amounted to $318,258 for the year ending December 31, 2004.

The outstanding balance of $29,039,383 was paid in full on March 19, 2004, via refinancing with the above mortgages.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 4 – MORTGAGE DEBT (continued)

Fidelity Debt

On February 28, 2001, the Company entered into a securities purchase agreement with and issued a promissory note to Fidelity Real Estate Growth Fund, L.P. (Fidelity) in the amount of $14,000,000. The promissory note bore interest at 22% per annum, compounded monthly. Prior to March 14, 2004, if there was not sufficient cash flow, as defined, to pay interest in full, payment could be deferred to the extent of the insufficiency. The note was secured by a second mortgage on the property and certain guarantees given by the managing members to Fidelity. Interest incurred under the loan amounted to $369,675 for the year ending December 31, 2004.

The outstanding balance of $22,002,857 was paid in full on March 19, 2004, via refinancing with the above mortgages.

NOTE 5 – FRANCHISE AGREEMENT

The hotel operates as an Embassy Suites Hotel under a licensing agreement with Hilton Hotels Corporation. Under this agreement, the hotel pays royalty fees, marketing fees and reservation fees in exchange for brand identification and marketing. This agreement expires on November 12, 2019.

NOTE 6 – COMMITMENTS

During 2004, the hotel was obligated on various operating leases for transportation and office equipment. Operating lease expense for the year was $145,012.

On November 27, 1997, DDODE entered into a ninety-nine-year ground lease for land located at the intersection of Cottage Street and Porter Street, in East Boston, Massachusetts, upon which, as described in Note 1, the Company constructed a hotel. On September 26, 2000, DDODE assigned its interest in the ground lease to the Company.

The ground lease provides for monthly rental payments of $25,000 for the first 27 months of the lease and $50,000 thereafter.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 7 – COMMITMENTS (continued)

In addition to rents stated above, the ground lease provides for semi-annual payments of 1.25% of gross revenues, as defined, for the prior six-month period. This provision is to commence on January 1, 2010, and continues to the end of the term of the lease.

Future minimum lease payments are as follows:

NOTE 7 – RELATED PARTIES

The Project developers are Congress Group Ventures, Inc. (CGV), an affiliate of DDODE, and The Buccini/Pollin Group (Buccini/Pollin), an affiliate of BPG, (collectively, the Developers). Pursuant to the Development Agreement dated September 15, 2000 between the Company and the Developers, the Developers provided all services reasonably required in connection with the Project, including design, construction, marketing and financing, and received a fee for their services, payable in monthly installments over the construction period.

The Company entered into a Management Agreement, dated September 15, 2000, with Pollin/Miller Hospitality Strategies, Inc. (PMHS), an affiliate of BPG, for management services and accounting services in connection with the operation of the Project upon issuance of a certificate of occupancy after completion of the construction and development of the Project. During 2004, $398,940 was earned by PMHS for management and accounting fees. In addition to management services, the Company reimburses PMHS for salaries and related benefits allocable to the hotel, which totaled $3,778,397 for the year ending December 31, 2004. At December 31, 2004, the total amount due to PMHS was $486,353.

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BPG/CGV Hotel Partners IX LLC

Notes to Financial Statements

December 31, 2004

NOTE 8 – RELATED PARTY (continued)

On November 6, 2001, the Company made a noninterest-bearing advance of $25,000 to BS/CGCC, an affiliate of CGV, for working capital. These funds will be refunded in total to the Company upon dissolution of BS/CGCC.

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BPG/CGV Hotel Partners IX LLC

Financial Statements

For the Period Ended June 30, 2006

(unaudited)

Contents

Financial Statements (unaudited)

BPG/CGV Hotel Partners IX, LLC

Balance Sheet (Unaudited)

See Accompanying Notes

1

BPG/CGV Hotel Partners IX, LLC

Statement of Operations (Unaudited)

See Accompanying Notes

2

BPG/CGV Hotel Partners IX, LLC

Statement of Changes in Members’ Capital (Unaudited)

For the period ended June 30, 2006

See Accompanying Notes

3

BPG/CGV Hotel Partners IX, LLC

Statement of Cash Flows (Unaudited)

See Accompanying Notes

4

BPG/CGV Hotel Partners IX, LLC

Unaudited (Amounts in $000s)

BPG/CGV Hotel Partners IX, LLC (the “Company”) (a Delaware limited liability company) was formed on September 19, 2000 for the purpose of designing, developing, constructing and operating an approximately 293,000 square foot, 273 room hotel and a parking garage (the Project) on a ground leased parcel in East Boston, Massachusetts. The Company is managed by DDODE Associates, LLC (DDODE) and BPG Hotel Partners IX, LLC (BPG) (collectively, the Members). The Members contributed their entire interests, in and to the Project, to the Company.

Basis of presentation – The financial statements include all the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents – For purposes of preparing the statement of cash flows, the Company considers all investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash and funds held in escrow accounts not readily available for use are not considered as cash and cash equivalents.

Restricted escrows – The senior loan agreement requires that the hotel maintain reserve accounts for property taxes, insurance and replacement reserves.

Accounts receivable – trade – Accounts receivable represents amounts due from customers. Management reviews open accounts monthly and takes appropriate steps for collection. When needed an allowance for bad debts is recorded to reflect management’s determination of the amount deemed uncollectible. No provision for bad debts has been recorded.

Inventories – Inventories of food, beverages, linens and guest supplies are stated at the lower of cost or market as determined by the first-in, first-out method.

Income taxes – The Company has elected to be taxed as a partnership for income tax reporting purposes. The Company does not pay federal or state corporate income taxes on its taxable income (nor are they allowed a net operating loss carryback or carryover as a deduction). Instead, the members report their proportionate share of the Company’s taxable income (or lose), deductions and tax credits on their personal income tax returns. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements.

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BPG/CGV Hotel Partners IX, LLC

Unaudited (Amounts in $000s)

Property and equipment – Property and equipment are recorded at cost. Maintenance, repairs and other expenses that do not enhance the value or increase the basic useful lives of the assets are charged to current operations. Building and improvement costs are being depreciated on a straight-line basis over lives ranging from 15 to 40 years. Furniture and equipment are being depreciated on a straight-line basis over five to ten years, which approximates the useful life of the asset involved. Depreciation expense for the six months ended June 30, 2006 and 2005, respectively was $1.3 million and $2.1 million.

Deferred costs – Financing costs have been capitalized, and are being amortized using the straight-line method over the term of the related financing. Initial franchise fees are being amortized using the straight-line method over 60 months.

Revenue – Revenue is generally recognized as hotel services are provided to guests.

Advertising – The cost of advertising is generally expensed as incurred. Total expenses for the six months ended June 30, 2006 and 2005, respectively was $223 and $198.

Interest rate caps – The Company has entered into interest rate cap agreements related to its mortgage notes payable. The Company records these derivative instruments on the balance sheet as either an asset or liability measured at their fair value. Changes in the derivative instruments’ fair value are recognized currently in earnings.

Fair value of financial instruments – The fair value of financial instruments is determined by reference to market data and other valuation techniques, as appropriate. The Company’s financial instruments consist of cash and cash equivalents, mortgages payable and interest rate cap agreements. Unless otherwise disclosed, the fair value of the financial instruments approximates their recorded values.

Financing costs totaling $1.4 million incurred in obtaining financing have been capitalized, and are being amortized using the straight-line method over the term of the related financing. Amortization of deferred financing costs for the six months ended June 30, 2006 and 2005, respectively was $205 and $236.

The initial franchise fee deposit of $21,500 is being amortized using the straight-line method over 60 months. Amortization of the franchise fees for the six months ended June 30, 2006 and 2005, respectively was $2 and $2.

Allocations of profits and losses are made in accordance with the provisions of Section 704(b) of the Internal Revenue Code.

Distributions of cash shall be applied or distributed (i) first, to the extent and in proportion to any accrued and unpaid interest on each Member’s shortfall loans, as defined, if any, (ii) second, to the extent of and in proportion to each Member’s unrecovered shortfall loan amounts, (iii) third, to the Members who have made construction shortfall contributions, as defined, pro rata, in proportion to their unrecovered construction shortfall contributions, until Members have received their construction shortfall preferred return, as defined, (iv) fourth, to the Members who have made construction shortfall contributions, pro rate, in proportion

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BPG/CGV Hotel Partners IX, LLC

Unaudited (Amounts in $000s)

to their unrecovered construction shortfall contributions, (v) fifth, to the Members, pro rata, in proportion to their unrecovered contributions, as defined, excluding the DDODE subordinated initial contribution, as defined, until Members have received cumulative distributions equal to a cumulative 12% per annum return, compounded annually on their unrecovered contributions, (vi) sixth, to the Members to the extend of and in proportion to each Member’s unrecovered contributions, excluding the DDODE subordinated initial contribution, (vii) seventh, to DDODE, until DDODE has received cumulative distributions equal to cumulative 12% per annum return, compounded annually on its DDODE subordinated initial contribution, (viii) eighth, to DDODE to the extend of any unrecovered DDODE subordinated initial contribution, (ix) ninth, to DDODE, in the amount of $250,000, if BPG fails to make any additional contributions, and (x) tenth, to the Members in proportion to their respective percentage interests.

Except for the obligations of BPG regarding the contribution of capital, under provisions of the operating agreement, no member shall be obligated personally for any debt, obligation or liability of the Company, or any other member, solely by reason of being a member of the Company. Additionally, no member shall have any responsibility to restore negative capital account balances or to contribute to, or in respect of, the liabilities or obligations of the Company.

Senior debt

On March 19, 2004, the Company entered into two new loans with proceeds used to pay outstanding balances on the existing debt. The first loan, in the amount of $32,000,000 is with Greenwich Capital Financial Products, Inc. The loan, which is secured by a first mortgage on the property, bears interest at a variable rate set by the adjusted LIBOR rate (as defined) plus 3.86% (8.17% at December 31, 2005), and requires monthly payments of interest only through April 1, 2007, the maturity date. In addition to the monthly payment of interest, if the loan is extended, as defined in the loan agreement, then commencing on May 1, 2007, the Company shall make monthly payments of $175 through the extended maturity date. Interest incurred under the loan for the six months ended June 30, 2006 and 2005, respectively, was $1.3 million and $1.1 million.

The loan is secured by a first mortgage on the property to Greenwich Capital Financial Products, Inc. and certain guarantees given by principals of the Members.

On March 16, 2004, the Company entered into a three-year interest rate cap with SMBC Derivative Products Limited at a cost of $235 and fair value of $224 as of June 30, 2006.

Junior debt

The second loan, in the amount of $15,000,000 is with Ashford Hospitality Finance LP. The loan, which is secured by a mortgage on the property, bears interest at a variable rate set by the adjusted LIBOR rate (as defined) plus 10.25% (14.54% at December 31, 2005), and requires monthly payments of interest only through April 7, 2007, the maturity date. Interest incurred under the loan for the six months ended June 30, 2006 and 2005, respectively, was $1.1 million and $1.0 million.

The note also secured by certain guarantees given by principals of the Members.

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BPG/CGV Hotel Partners IX, LLC

Unaudited (Amounts in $000s)

On March 16, 2004, the Company entered into a three-year interest rate cap with SMBC Derivative Products Limited at a cost of $69 and fair value of $50 as of June 30, 2006. Under the provisions of the Senior debt and Junior debt loan agreements discussed above, the Company is required to maintain a minimum debt yield. As the result of the Company’s net operating loss, the Company’s debt yield did not meet this requirement during 2005. As a result, the lenders of the Senior debt and Junior debt loans have the right but not the obligation to call on the letters of credit that are pledged by the owners as additional collateral. The Company has not received any notices from its lenders indication their intent to draw on the letters of credit.

The hotel operates as an Embassy Suites Hotel under a licensing agreement with Hilton Hotels Corporation. Under this agreement, the hotel pays royalty fees, marketing fees and reservation fees in exchange for brand identification and marketing. This agreement expires on November 12, 2019.

The hotel was obligated on various operating leases for transportation and office equipment. Operating lease expense for the six months ended June 30, 2006 and 2005, respectively was $74 and $70.

On November 27, 1997, DDODE entered into a ninety-nine year ground lease, for land located at the intersection of Cottage Street and Porter Street, in East Boston, Massachusetts, upon which, as described in Note 1, the Company constructed a hotel. On September 26, 2000, DDODE assigned its interest in the ground lease to the Company.

The ground lease provides for monthly rental payments of $50,000

In addition to rents stated above, the ground lease provides for semiannual payments of 1.25% of gross revenues, as defined, for the prior six-month period. This provision is to commence on January 1, 2010, and continues to t he end of the term of the lease.

Future minimum lease payments on all leases are as follows for the years ending December 31:

The Company entered into a Management Agreement, dated September 15, 2000, with Pollin/Miller Hospitality Strategies, Inc. (PMHS), an affiliate of BPG, for management services and accounting services in connection with the operation of the Project upon issuance of a certificate of occupancy after completion of the construction and development of the Project. For the six months ended June 30, 2006 and 2005, respectively $157 and $140 was earned by PMHS for management and accounting fees. At June 30, 2006, the total amount due to PMHS was $209.

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