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Marketing:	We have included an amount of $400 per available room for this
expenditure at the stabilized occupancy level. This reflects the level of expenditure we think will be necessary to properly promote and maintain the project.
Marketing expenses for the 10 year pro forma were budgeted at $400 for the first year, or 3% per cent of sales to allow for the marketing necessary to penetrate the overall potential market.
This expense category normally includes all costs associated with the efforts needed to obtain and retain customers. In this instance, the classification includes wages and salaries for marketing staff, advertising costs, internal merchandising expenses, association dues, telephone costs, postage and other costs associated with the operation of a marketing department.
Property Operations and Maintenance:	The amount allocated for property
operations and maintenance, also estimated at $790 per available room, includes the salaries of experienced indiviudals capable of adequately maintaining the property as well as an amount for the required supplies.
Because repairs and maintenance in a rehabilitated property are substantially less in the early years of operation, we have estimated the amount necessary to maintain the property in first-class condition on a per available room basis of 3% of gross effective income.
These expenses tend to increase as the property ages. It should be noted here that this expense category does not include any expenditure for the replacement of furniture, fixtures, and equipment.
Energy Costs:	The expense amounts allocated in our projections for energy
costs reflect the trend of comparable operations for utilities expense. We estimate such expense at $625 per available room per year at the stabilized occupancy level. This level of expenditure will be significantly affected by conversion to an energy efficient building and by the possible use of alternate energy sources.
Energy costs estimates were adjusted for occupancy levels and increased at rates equal to the estimated growth rate in line with past experience.
Statements of Estimated Annual Operating Results
Our statements of estimated annual operating results for both the stabilized year and for the years one through ten appear on the following pages.