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<SEC-DOCUMENT>0000950123-11-004177.txt : 20110120
<SEC-HEADER>0000950123-11-004177.hdr.sgml : 20110120
<ACCEPTANCE-DATETIME>20110120172022
ACCESSION NUMBER:		0000950123-11-004177
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20110120
DATE AS OF CHANGE:		20110120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DiamondRock Hospitality Co
		CENTRAL INDEX KEY:			0001298946
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-161298
		FILM NUMBER:		11539418

	BUSINESS ADDRESS:	
		STREET 1:		6903 ROCKLEDGE DRIVE
		STREET 2:		SUITE 800
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20817
		BUSINESS PHONE:		240-744-1150

	MAIL ADDRESS:	
		STREET 1:		6903 ROCKLEDGE DRIVE
		STREET 2:		SUITE 800
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20817
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>w81141b5e424b5.htm
<DESCRIPTION>424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount to be registered/ Proposed<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of each class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>maximum offering price per unit/<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>securities to be registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Proposed maximum offering price</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount of registration fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock, par value $0.01 per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $133,650,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $15,517(1)
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    (1)&#160;&#160;</TD>
    <TD align="left">
    This filing fee is calculated in accordance with
    Rule&#160;457(r) and relates to the Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    <FONT style="white-space: nowrap">(No.&#160;333-161298)</FONT>
    filed by DiamondRock Hospitality Company on August&#160;12, 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUPPLEMENT</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times"> Filed
    Pursuant to Rule&#160;424(b)5</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-family: 'Times New Roman', Times">&#160;(To
    Prospectus dated August&#160;12, 2009)</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times">
    Registration
    <FONT style="white-space: nowrap">No.&#160;333-161298</FONT></FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">11,000,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="w81141b5z8114101.gif" alt="(DIAMONDROCK LOGO)"><B><FONT style="font-size: 14pt">
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 18pt">DiamondRock Hospitality
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    DiamondRock Hospitality Company is offering
    11,000,000&#160;shares of its common stock. Our common stock is
    traded on the New York Stock Exchange under the symbol
    &#147;DRH.&#148; The last reported sale price of our common
    stock on the New York Stock Exchange on January 18, 2011, was
    $12.54 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are organized and conduct our operations to qualify as a real
    estate investment trust, or REIT, for federal income tax
    purposes. To assist us in complying with certain federal income
    tax requirements applicable to REITs, our charter contains
    certain restrictions relating to the ownership and transfer of
    our stock, including an ownership limit of 9.8% on our common
    stock.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in our common stock involves risks. See &#147;Risk
    Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-4</FONT>
    of this prospectus supplement and page&#160;10 of our Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2009, as well as in the
    other periodic reports we file from time to time with the
    Securities and Exchange Commission, or SEC, which are
    incorporated by reference herein.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Price to Public
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,650,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    880,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to DiamondRock Hospitality Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    132,770,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have granted the underwriter a
    <FONT style="white-space: nowrap">30-day</FONT>
    option to purchase up to an additional 1,650,000&#160;shares of
    common stock from us at the initial public offering price less
    the underwriting discount if the underwriter sells more than
    11,000,000&#160;shares of common stock in this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>None of the SEC, any state securities commission, or any
    other regulatory body has approved or disapproved of these
    securities or determined if this prospectus supplement is
    truthful or complete. Any representation to the contrary is a
    criminal offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter expects to deliver the shares on or about
    January&#160;21, 2011.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 16pt">Goldman, Sachs &#038;
    Co.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The date of this prospectus supplement is January&#160;18, 2011.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUPPLEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About This Prospectus Supplement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Our Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>The Offering</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Supplement to Federal Income Tax
    Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    S-21
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Our Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    About This Prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk Factors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Forward-Looking Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Use of Proceeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ratio of Earnings to Combined Fixed Charges and Preferred
    Dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Capital Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Common Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Preferred Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Depositary Shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Restrictions on Ownership And Transfer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Book Entry Securities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Certain Material Provisions of Maryland Law, Our
    Charter and Our Bylaws
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of the Partnership Agreement of Diamondrock
    Hospitality Limited Partnership
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Investment Policies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Federal Income Tax Considerations Related to Our Reit Election
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Plan of Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal Matter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Experts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Where You Can Find More Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Incorporation of Certain Documents by Reference
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This document is in two parts. The first part is this prospectus
    supplement, which describes the specific terms of this offering.
    The second part, the accompanying prospectus, gives more general
    information, some of which may not apply to this offering. You
    should read this entire document, including the prospectus
    supplement, the accompanying prospectus and the documents
    incorporated herein by reference. In the event that the
    description of the offering varies between this prospectus
    supplement and the accompanying prospectus, you should rely on
    the information contained in this prospectus supplement. To the
    extent the information included or incorporated by reference in
    this prospectus supplement differs or varies from the
    information included or incorporated by reference in the
    accompanying prospectus, the information included or
    incorporated by reference in this prospectus supplement updates
    and supersedes such information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement and the accompanying prospectus
    contain, or incorporate by reference, forward-looking
    statements. Such forward-looking statements should be considered
    together with the cautionary statements and important factors
    included or referred to in this prospectus supplement, the
    accompanying prospectus and the documents incorporated herein by
    reference. Please see &#147;Forward-Looking Statements&#148; in
    this prospectus supplement and &#147;Forward-Looking
    Statements&#148; in the accompanying prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    References in this prospectus to &#147;we,&#148;
    &#147;our,&#148; &#147;us&#148; and &#147;our company&#148;
    refer to DiamondRock Hospitality Company, including, as the
    context requires, DiamondRock Hospitality Limited Partnership,
    our operating partnership, as well as our other direct and
    indirect subsidiaries, including our taxable REIT subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained or
    incorporated by reference in this prospectus supplement and the
    accompanying prospectus. Neither we nor the underwriter have
    authorized any other person to provide you with different or
    additional information. If anyone provides you with different or
    additional information, you should not rely on it. This
    prospectus supplement and the accompanying prospectus are not an
    offer to sell or the solicitation of an offer to buy any
    securities other than the registered shares to which they
    relate, nor is this prospectus supplement or the accompanying
    prospectus an offer to sell or the solicitation of an offer to
    buy securities in any jurisdiction to any person to whom it is
    unlawful to make such offer or solicitation in such
    jurisdiction. You should assume that the information contained
    or incorporated by reference in this prospectus supplement and
    the accompanying prospectus is accurate only as of their
    respective dates. Our business, financial condition, results of
    operations and prospects may have changed since those dates.
</DIV>

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain statements in this prospectus supplement and the
    accompanying prospectus include and incorporate by reference
    &#147;forward-looking statements&#148; within the meaning of the
    Private Securities Litigation Reform Act of 1995,
    Section&#160;27A of the Securities Act of 1933 and
    Section&#160;21E of the Securities Exchange Act of 1934.
    Statements regarding estimates, projections, our business plans,
    objectives, expected operating results, and the assumptions upon
    which those statements are based, are forward-looking
    statements. These forward-looking statements generally are
    identified by the words &#147;believes,&#148;
    &#147;project,&#148; &#147;expects,&#148;
    &#147;anticipates,&#148; &#147;estimates,&#148;
    &#147;intends,&#148; &#147;strategy,&#148; &#147;plan,&#148;
    &#147;may,&#148; &#147;will,&#148; &#147;would,&#148; &#147;will
    be,&#148; &#147;will continue,&#148; &#147;will likely
    result,&#148; and similar expressions. Forward-looking
    statements are based on current expectations and assumptions
    that are subject to risks and uncertainties which may cause
    actual results to differ materially from the forward-looking
    statements. A detailed discussion of these and other risks and
    uncertainties that could cause actual results and events to
    differ materially from such forward-looking statements is
    included in Item&#160;1A &#147;Risk Factors&#148; of our Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2009 and in our other
    reports we file from time to time with the SEC and incorporate
    by reference in this prospectus supplement. We undertake no
    obligation to update or revise publicly any forward-looking
    statements, whether as a result of new information, future
    events or otherwise.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">OUR
    COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are a lodging-focused real estate company that, as of the
    date of this prospectus, owns a portfolio of 23&#160;premium
    hotels and resorts that contain 10,743 guestrooms and a senior
    mortgage loan secured by another hotel. We are an owner, as
    opposed to an operator, of the 23 hotels in our portfolio. As an
    owner, we receive all of the operating profits or losses
    generated by our hotels after we pay fees to the hotel managers,
    which are based on the revenues and profitability of the hotels.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our vision is to be the premier allocator of capital in the
    lodging industry. Our mission is to deliver long-term
    stockholder returns through a combination of dividends and
    long-term capital appreciation. Our strategy is to utilize
    disciplined capital allocation and focus on acquiring, owning,
    and measured recycling of high quality, branded lodging
    properties in North America with superior long-term growth
    prospects in markets with high
    <FONT style="white-space: nowrap">barriers-to-entry</FONT>
    for new supply. In addition, we are committed to enhancing the
    value of our platform by being open and transparent in our
    communications with investors, monitoring our corporate overhead
    and following sound corporate governance practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Consistent with our strategy, we continue to focus on
    opportunistically investing in premium full-service hotels and,
    to a lesser extent, premium urban limited-service hotels located
    throughout North America. Our portfolio of 23 hotels is
    concentrated in key gateway cities and in destination resort
    locations. All of our owned hotels operate under a brand owned
    by one of the leading global lodging brand companies (Marriott
    International, Inc. (&#147;Marriott&#148;), Starwood
    Hotels&#160;&#038; Resorts Worldwide, Inc.
    (&#147;Starwood&#148;) or Hilton Worldwide (&#147;Hilton&#148;)).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We differentiate ourselves from our competitors because of our
    adherence to three basic principles:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    high-quality urban- and destination resort-focused branded hotel
    real estate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conservative capital structure;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    thoughtful asset management.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our properties are concentrated in five key gateway cities (New
    York City, Los Angeles, Chicago, Boston and Atlanta) and in
    destination resort locations (such as the U.S.&#160;Virgin
    Islands and Vail, Colorado). We believe that gateway cities and
    destination resorts will achieve higher long-term growth because
    they are attractive business and leisure destinations. We also
    believe that these locations are better insulated from new
    supply due to relatively high
    <FONT style="white-space: nowrap">barriers-to-entry,</FONT>
    including expensive construction costs and limited prime hotel
    development sites.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe that higher quality lodging assets create more
    dynamic cash flow growth and superior long-term capital
    appreciation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, a core tenet of our strategy is to leverage global
    hotel brands. We strongly believe in the value of powerful
    global brands because we believe that they are able to produce
    incremental revenue and profits compared to similar unbranded
    hotels. Dominant global hotel brands typically have very strong
    reservation and reward systems and sales organizations, and all
    of our owned hotels are operated under a brand owned by one of
    the top global lodging brand companies (Marriott, Starwood or
    Hilton) and all but three of our owned hotels are managed by the
    brand company directly. Generally, we are interested in owning
    hotels that are currently operated under, or can be converted
    to, a globally recognized brand.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Agreement
    to Purchase a New York City Hotel</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On January&#160;18, 2011, we entered into a purchase and sale
    agreement to acquire, upon completion, a hotel property under
    development on West 42nd&#160;Street in Times Square,
    New&#160;York City. Upon completion by the third&#160;party
    developer, the hotel is expected to contain approximately 250 to
    300&#160;guest rooms.  The contractual purchase price will range
    from approximately $112.5&#160;million to $135&#160;million,
    depending upon the number of guest rooms, or approximately
    $450,000&#160;per guest room. If certain required&#160;permits,
    approvals and consents are obtained, the number of guest rooms
    could be increased to approximately 400&#160;guest rooms, which
    would result in the contractual purchase price increasing to
    approximately $178&#160;million, or $445,000&#160;per guest
    room. The purchase and sale agreement is for a fixed-price
    (which varies only by total guest rooms built and the completion
    date for the
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    hotel, and we are not assuming any construction risk (including
    not assuming the risk of construction cost overruns).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The site of the to-be-developed hotel is at the intersection of
    42nd&#160;Street and Broadway, directly across from the Conde
    Nast building and less than one block from Bryant Park. We
    believe the hotel will attract both business and leisure
    travelers visiting New&#160;York City due to its location in
    Times Square, as well as its close proximity to the many
    businesses located near the hotel, including the Bank of America
    Tower located at One Bryant Park and the Verizon Building at
    1095&#160;Avenue of the Americas. In addition, we believe this
    acquisition will further our strategy of enhancing our
    full-service portfolio with urban select service hotels in top
    MSAs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Upon entering into the purchase and sale agreement, we committed
    to make a $20.0&#160;million deposit. Upon the completion of
    certain construction milestones, we will be required to make an
    additional deposit of $5.0&#160;million. If
    certain&#160;permits, approvals and consents necessary for the
    hotel to contain more than 250&#160;guest rooms are obtained, we
    will be required to make an additional deposit equal to
    $45,000&#160;per guest room for each guest room in excess of
    250. All deposits will be interest bearing. We will forfeit our
    deposits if we do not close on the acquisition of the hotel upon
    substantial completion of construction, unless we do not close
    as a result of the seller failing to meet certain conditions,
    including substantial completion of the hotel within a specified
    time frame and construction of the hotel within the contractual
    scope.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will submit a franchise application to one of the global
    hotel operating companies and expect to brand the hotel with a
    well known upscale select service brand following our
    acquisition of the hotel, subject to negotiation of a
    satisfactory franchise agreement. An affiliate of the
    third-party developer is expected to operate the hotel upon
    completion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We currently expect that the development of the hotel will take
    approximately 24 to 30&#160;months with an anticipated opening
    date in&#160;2013. We cannot assure you that we will acquire the
    hotel as our acquisition of the hotel is subject to the
    satisfaction of certain closing conditions, including the
    substantial completion of the hotel by the third-party
    developer, construction of the hotel within the contractual
    scope and other customary closing conditions. <I>See</I>
    &#147;Risk&#160;Factors.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Acquisition
    Pipeline</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have access to and are actively pursuing a pipeline of
    potential acquisitions consistent with our investment strategy.
    As of the date of this prospectus, we have identified and are in
    various stages of either reviewing, bidding on
    <FONT style="white-space: nowrap">and/or</FONT>
    negotiating several potential hotel acquisition opportunities.
    We cannot assure you that we will acquire any of the hotel
    properties that we are currently in the process of reviewing,
    bidding on
    <FONT style="white-space: nowrap">and/or</FONT>
    negotiating to acquire. <I>See </I>&#147;Risk Factors.&#148;
</DIV>
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    <BR>
    S-3
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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investment in our common stock offered pursuant to this
    prospectus supplement involves risks. You should carefully
    consider the risk factors and other information contained in
    this prospectus supplement and the accompanying prospectus, as
    well as the risk factors and other information included in our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2009, which is incorporated
    by reference herein, and the other information contained in, or
    incorporated by reference into, this prospectus supplement and
    accompanying prospectus, as updated by our subsequent filings
    under the Securities Exchange Act of 1934, as amended, before
    acquiring any of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not acquire any of the hotel properties in our current
    acquisition pipeline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We currently intend to use a substantial portion of the net
    proceeds from this offering to acquire one or more hotel
    properties in our acquisition pipeline. We cannot assure you
    that we will acquire any of the hotel properties in our
    acquisition pipeline because the acquisition of any hotel
    property in our pipeline is subject to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our negotiating and executing with the seller a mutually
    acceptable definitive and binding purchase and sale agreement
    with respect to the hotel property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to negotiate and execute a new management agreement
    and franchise agreement, or assume the existing agreements, for
    the hotel property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our completion of satisfactory due diligence with respect to the
    hotel property;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    satisfaction of customary closing conditions, including the
    receipt of third-party consents and approvals.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There can be no assurance that the sellers will be willing to
    proceed with a transaction, that we will be able to negotiate
    and execute a satisfactory definitive purchase and sale
    agreement with the sellers, that we will be able to negotiate
    and execute new management agreements and franchise agreements
    (or assume the existing agreements), that our due diligence will
    be satisfactory, or that the conditions to closing will be
    satisfied.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have no immediate designated use for a substantial portion of
    the net proceeds of this offering.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have not yet committed a substantial portion of the net
    proceeds of this offering to the acquisition of specific hotel
    properties, and you will be unable to evaluate the economic
    merits of investments we make with the net proceeds before
    making an investment decision to purchase our common stock in
    this offering. As a result, we will have broad authority to
    invest a substantial portion of the net proceeds of this
    offering in real estate investments that we may identify in the
    future, and we may use those proceeds to make investments with
    which you may not agree. In addition, our investment policies
    may be amended or revised from time to time at the discretion of
    our board of directors, without a vote of our stockholders.
    These factors increase the uncertainty, and thus the risk, of an
    investment in our common stock. Our failure to apply a
    substantial portion of the net proceeds of this offering
    effectively or to find suitable hotel properties to acquire in a
    timely manner or on acceptable terms could result in returns
    that are substantially below expectations or result in losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until appropriate investments can be identified, we may invest a
    substantial portion of the net proceeds of the offering in
    interest-bearing short-term securities or money-market accounts
    that are consistent with our intention to qualify as a REIT.
    These investments are expected to provide a lower net return
    than we seek to achieve from future hotel property acquisitions.
    We may also use a portion of the proceeds for general working
    capital purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to acquire any of the hotel properties in our
    acquisition pipeline, we may experience delays in locating and
    securing attractive alternative investments.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may not be able to acquire hotel properties in our
    acquisition pipeline that we have identified, which are in
    various stages of review and negotiation, including the
    to-be-developed hotel that we currently have under contract to
    purchase. In addition, the to-be-developed hotel that we have
    entered into an agreement to acquire upon substantial completion
    is not expected to be completed and acquired for approximately
    24 to 30&#160;months. If we are unable to acquire any of these
    hotel properties, we may experience delays in locating and
    securing attractive alternative real estate investments. In
    addition, these potential acquisitions, whether or not they are
    successful,
</DIV>
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    require substantial time and attention from our management. In
    addition, we will incur significant expenses in connection with
    our review and negotiation, including expenses for due diligence
    and legal fees. To the extent we do not acquire hotel properties
    that we are currently reviewing and negotiating to acquire,
    these expenses will not be offset by revenues from these hotel
    properties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face risks associated with the development of a hotel by a
    third-party developer.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are exposed to the risks associated with the failure of the
    third-party developer to complete the development, as we expect,
    of the to-be-developed hotel described under &#147;Our
    Company&#160;&#151; Recent Developments&#148;. These include the
    risk that the third-party developer will default on its
    obligations under the purchase and sale agreement with us or
    default on an obligation to a lender, which may have a security
    interest in the property senior to us. In either of these cases,
    we may lose the opportunity to acquire the hotel and may have no
    recourse to the developer. In addition, the hotel is not
    expected to be opened for approximately 24 to 30 months. If we
    acquire this hotel, there can be no assurance that the market
    where it is located will not be experiencing a downturn when the
    acquisition is completed in approximately 24 to 30&#160;months
    and the hotel may not perform as we expect.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    do not complete the acquisition of the to-be-developed hotel
    that we have entered into an agreement to acquire upon
    completion, we will have incurred substantial expenses without
    our stockholders realizing the expected benefits.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we are unable to complete the acquisition of the
    to-be-developed hotel described under &#147;Our
    Company&#160;&#151; Recent Developments&#148;, we may incur
    significant legal, accounting and other transaction costs in
    connection with this acquisition without our stockholders
    realizing the expected benefits. We cannot assure you that we
    will acquire this hotel because the proposed acquisition is
    subject to a variety of factors, including substantial
    construction completion of the hotel by the third-party
    developer and construction of the hotel within the contractual
    scope. In addition, even if we complete the acquisition of the
    hotel, we cannot assure you that the hotel will contain more
    than 250 guest rooms because the additional rooms are subject to
    the receipt of required permits, approvals and consents.
</DIV>
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    S-5
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    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFERING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
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<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Issuer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    DiamondRock Hospitality Company
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock Offered by Us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    11,000,000&#160;shares(1)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock to be Outstanding after this Offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    165,570,543&#160;shares(1)(2)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    NYSE Symbol
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    DRH
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



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    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes 1,650,000&#160;shares issuable upon exercise of the
    underwriter&#146;s option to purchase additional shares.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 154,570,543&#160;shares of common stock outstanding as
    of January&#160;18, 2011. Excludes 1,548,698 unvested restricted
    shares of our common stock issued to our executive officers and
    other employees pursuant to our equity incentive plan,
    4,880,173&#160;shares available for future issuance under our
    equity incentive plan and 15,306 vested deferred common stock
    units outstanding as of January&#160;18, 2011 issued pursuant to
    our equity incentive plan to our non-employee directors.</TD>
</TR>

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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We expect that the net proceeds from this offering will be
    approximately $132.5&#160;million after deducting underwriting
    discounts and our estimated expenses of approximately $250,000
    (or approximately $152.4&#160;million if the underwriter
    exercises its option to purchase additional shares in full).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We expect to contribute the net proceeds from the sale of the
    common stock pursuant to this prospectus supplement to our
    operating partnership. Our operating partnership will
    subsequently use $20.0&#160;million to pay the deposit required
    under the purchase and sale agreement for the to-be-developed
    hotel that we have under contract to purchase upon completion of
    development and the remainder for investment in future
    acquisitions of hotel properties or other assets in accordance
    with our investment policies and for general working capital
    purposes. Except as disclosed herein, we have not entered into
    any definitive agreements regarding future acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the full investment of the net proceeds in future
    acquisitions, we intend to invest the net proceeds in
    interest-bearing, short-term investment grade securities or
    money-market accounts that are consistent with our intention to
    maintain our qualification as a REIT. Such investments may
    include, for example, government and government agency
    certificates, interest-bearing bank deposits and mortgage loan
    participations. These initial investments are expected to
    provide a lower net return than we will seek to achieve from
    future acquisitions. In the event the underwriter exercises any
    or all of its option to purchase additional shares, we expect to
    use the additional net proceeds for general corporate purposes,
    which may include investment in hotel properties and other
    assets consistent with our investment policies.
</DIV>
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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SUPPLEMENT
    TO FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following summary outlines certain U.S.&#160;federal income
    tax considerations relating to an investment in our common
    stock, including the federal income tax consequences under
    current law that are likely to be material to a purchaser of our
    common stock in this offering who is a
    &#147;U.S.&#160;stockholder&#148; (as hereinafter defined) and
    who will hold its shares as a capital asset. This summary does
    not contain a complete discussion of the federal tax aspects of
    the investment that may be important to you. Moreover, it does
    not address any foreign, state or local tax consequences of an
    investment in our common stock. The provisions of the Internal
    Revenue Code of 1986, as amended, or the Code, concerning the
    federal income tax treatment of a REIT and its stockholders are
    highly technical and complex; the following discussion sets
    forth only certain aspects of those provisions. This summary is
    intended to provide you with general information only and is not
    intended as a substitute for careful tax planning. The
    discussion below assumes that you will hold our common stock as
    a capital asset. We do not address the federal income tax
    consequences that may be relevant to stockholders subject to
    special treatment under the Code, including, without limitation,
    insurance companies, regulated investment companies, financial
    institutions, broker-dealers, tax-exempt or
    <FONT style="white-space: nowrap">non-U.S.&#160;investors</FONT>
    (except as specifically discussed below), foreign governments,
    stockholders that hold our stock as a hedge, part of a straddle,
    conversion transaction, or other arrangement involving more than
    one position, or through a partnership or other pass-through
    entity, or U.S.&#160;expatriates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is based on provisions of the Code, applicable
    final and temporary Treasury Regulations, judicial decisions and
    administrative rulings and practice, all in effect as of the
    date of this prospectus supplement, and should not be construed
    as legal advice. No assurance can be given that future
    legislative or administrative changes or judicial decisions will
    not affect the accuracy of the descriptions or conclusions
    contained in this summary. In addition, any such changes may be
    retroactive and apply to transactions entered into prior to the
    date of their enactment, promulgation or release. We do not
    expect to seek a ruling from the Internal Revenue Service, or
    IRS, regarding any of the federal income tax issues discussed in
    this prospectus supplement, and no assurance can be given that
    the IRS will not challenge any of the positions we take and that
    such a challenge will not succeed. <B><I>Prospective purchasers
    of our stock are urged to consult their own tax advisors prior
    to any investment in our common stock concerning the potential
    federal, state, local and foreign tax consequences of the
    investment with specific reference to their own tax situations.
    </I></B>This summary supplements and should be read together
    with the general discussion of the tax considerations relating
    to our qualification as a REIT described in the accompanying
    prospectus under the title &#147;Federal Income Tax
    Considerations Related to Our REIT Election.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Certain Debt Instruments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may, from time to time, opportunistically invest in
    non-performing or distressed debt secured by real estate assets
    with a view to subsequently taking control of the properties.
    Interest income constitutes qualifying mortgage interest for
    purposes of the 75% gross income test applicable to REITs to the
    extent that the obligation upon which such interest is paid is
    secured by a mortgage on real property. See &#147;Federal Income
    Tax Considerations Related to Our REIT Election
    &#151;&#160;Qualification as a REIT&#160;&#151; Income
    Tests&#148; in the accompanying prospectus for a discussion of
    the gross income tests applicable to REITs. If we receive
    interest income with respect to a mortgage loan that is secured
    by both real property and other property, and the highest
    principal amount of the loan outstanding during a taxable year
    exceeds the fair market value of the real property on the date
    that we committed to acquire, or agreed to modify in a manner
    that is treated as an acquisition for U.S.&#160;federal income
    tax purposes, the mortgage loan, then the interest income will
    be apportioned between the real property and the other
    collateral, and our income from the loan will qualify for
    purposes of the 75% gross income test only to the extent that
    the interest is allocable to the real property. For purposes of
    the preceding sentence, however, under recently issued IRS
    guidance we do not need to redetermine the fair market value of
    real property in connection with a loan modification that is
    occasioned by a default or made at a time when we reasonably
    believe the modification to the loan will substantially reduce a
    significant risk of default on the original loan. Even if a loan
    is not secured by real property, or is undersecured, the income
    that it generates may nonetheless qualify for purposes of the
    95% gross income test. To the extent that we derive interest
    income from a mortgage loan where all or a portion of the amount
    of interest payable is contingent, such income generally will
    qualify for purposes of the gross income tests only if it is
    based upon the gross receipts or sales, and not the net income
    or profits, of the borrower.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, if the outstanding principal balance of a mortgage
    loan exceeds the fair market value of the real property securing
    the loan at the time we commit to acquire, or agree to modify in
    a manner that is treated as an acquisition for U.S.&#160;federal
    income tax purposes, the mortgage loan, then a portion of such
    loan may not be a qualifying real estate asset for purposes of
    the 75% asset test applicable to REITs. See &#147;Federal Income
    Tax Considerations Related to Our REIT Election
    &#151;&#160;Qualification as a REIT&#160;&#151; Asset
    Tests&#148; in the accompanying prospectus for a discussion of
    the asset tests applicable to REITs. However, under current law
    it is not clear how to determine what portion of such a loan
    will be treated as a qualifying real estate asset. Under
    recently issued guidance, the IRS has stated that it will not
    challenge a REIT&#146;s treatment of a loan as being in part a
    real estate asset for purposes the 75% asset test if the REIT
    treats the loan as being a real estate asset in an amount that
    is equal to the lesser of the fair market value of the real
    property securing the loan on the date we agreed to acquire the
    loan, as described in the preceding paragraph, and the fair
    market value of the loan. In addition to being a nonqualifying
    asset for purposes of the 75% asset test, the nonqualifying
    portion may be treated as a security for purposes of the 25%
    securities test, the 5% value test, and the 10% value test
    described in &#147;Federal Income Tax Considerations Related to
    Our REIT Election&#160;&#151; Qualification as a
    REIT&#160;&#151; Asset Tests&#148; in the accompanying
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The application of the REIT provisions of the Code to mezzanine
    loans, which are loans secured by equity interests in an entity
    that directly or indirectly owns real property rather than by a
    direct mortgage of the real property, is not entirely clear. A
    safe harbor in IRS Revenue Procedure
    <FONT style="white-space: nowrap">2003-65</FONT>
    provides that if a mezzanine loan meets certain requirements
    then it will be treated by the IRS as a real estate asset for
    purposes of the REIT asset tests and interest income derived
    from it will be treated as qualifying mortgage interest for
    purposes of the 75% gross income test. However, to the extent
    that mezzanine loans do not meet all of the requirements for
    reliance on the safe harbor set forth in Revenue Procedure
    <FONT style="white-space: nowrap">2003-65,</FONT>
    such loans may not be real estate assets and the interest income
    derived therefrom may not be qualifying income for purposes of
    the 75% gross income test, which could adversely affect our REIT
    qualification if we acquired such loans. As such, the REIT
    provisions of the Code may limit our ability to acquire
    mortgage, mezzanine or other loans that we might otherwise
    desire to acquire.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Temporary
    Reduction in the Holding Period to Avoid Tax on C Corporation
    Built-in Gains</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As discussed in &#147;Federal Income Tax Considerations Related
    to Our REIT Election&#160;&#151; Taxation of Our Company&#148;
    of the accompanying prospectus, we may be subject to a tax at
    the highest regular corporate rate on the gain we recognize from
    the disposition of an asset acquired from a C corporation in a
    transaction in which we took the C corporation&#146;s tax basis
    to the extent of the appreciation in the asset at the time we
    acquired it from the C&#160;corporation. In general, this tax
    applies for a period of 10&#160;years beginning with the first
    day of the first taxable year that a C corporation is treated as
    a REIT, or the day the property of a C corporation is
    transferred to a REIT, as applicable (the &#147;recognition
    period&#148;). For tax years beginning in 2011, the recognition
    period is reduced to 5&#160;years.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of U.S. Stockholders Holding Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The term &#147;U.S.&#160;stockholder&#148; means an investor
    that, for U.S.&#160;federal income tax purposes, is (i)&#160;a
    citizen or resident of the United States, (ii)&#160;a
    corporation or other entity treated as a corporation, created or
    organized in or under the laws of the United States, any of its
    states or the District of Columbia, (iii)&#160;an estate, the
    income of which is subject to U.S.&#160;federal income taxation
    regardless of its source, or (iv)&#160;a trust, (a)&#160;if a
    court within the United States is able to exercise primary
    supervision over the administration of the trust and one or more
    U.S.&#160;persons have the authority to control all substantial
    decisions of the trust or (b)&#160;that has a valid election in
    effect under the applicable Treasury Regulations to be treated
    as a U.S.&#160;person under the Code. In addition, as used
    herein, the term U.S.&#160;stockholder does not include any
    entity that is subject to special treatment under the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions by us, other than capital gain dividends, will
    constitute ordinary dividends to the extent of our current or
    accumulated earnings and profits as determined for federal
    income tax purposes. In general, these dividends will be taxable
    as ordinary income and will not be eligible for the
    dividends-received deduction for corporate stockholders. Our
    ordinary dividends generally will not qualify as &#147;qualified
    dividend income&#148; taxed as net capital gain for
    U.S.&#160;stockholders that are individuals, trusts, or estates.
    However, dividends to U.S.&#160;stockholders that are
    individuals, trusts, or estates generally will constitute
    qualified dividend income taxed as net capital gains if the
    U.S.&#160;stockholder satisfies certain holding period
    requirements, we designate the dividends as qualified dividend
    income and the dividends are attributable to (i)&#160;qualified
    dividend income we receive from other corporations, such
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    as Bloodstone TRS, Inc. and potentially certain other taxable
    REIT subsidiaries, during the taxable year, or (ii)&#160;our
    undistributed earnings or built-in gains taxed at the corporate
    level during the preceding taxable year. The preferential
    treatment of qualified dividend income is applicable for taxable
    years beginning on or before December&#160;31, 2012, unless
    extended by Congress. We do not anticipate distributing a
    significant amount of qualified dividend income. The discussion
    in this section applies equally to distributions payable in cash
    and taxable stock distributions. See &#147;Taxation of Certain
    Stock Dividends&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the extent that we make a distribution in excess of our
    current and accumulated earnings and profits (a &#147;return of
    capital distribution&#148;), the distribution will be treated
    first as a tax-free return of capital, reducing the tax basis in
    a U.S.&#160;stockholder&#146;s shares. To the extent a return of
    capital distribution exceeds a U.S.&#160;stockholder&#146;s tax
    basis in its shares, the distribution will be taxable as capital
    gain realized from the sale of such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dividends declared by us in October, November or December and
    payable to a stockholder of record on a specified date in any
    such month shall be treated both as paid by us and as received
    by the stockholder on December 31 of the year, provided that the
    dividend is actually paid by us during January of the following
    calendar year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will be treated as having sufficient earnings and profits to
    treat as a dividend any distribution up to the amount required
    to be distributed in order to avoid imposition of the 4% excise
    tax generally applicable to REITs if certain distribution
    requirements are not met. Moreover, any deficiency dividend will
    be treated as an ordinary or a capital gain dividend, as the
    case may be, regardless of our earnings and profits at the time
    the distribution is actually made. As a result, stockholders may
    be required to treat certain distributions as taxable dividends
    that would otherwise result in a tax-free return of capital.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Gain Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions that are properly designated as capital gain
    dividends will be taxed as long-term capital gains (to the
    extent they do not exceed our actual net capital gain for the
    taxable year) without regard to the period for which the
    stockholder has held its shares. However, corporate stockholders
    may be required to treat up to 20% of certain capital gain
    dividends as ordinary income. In addition,
    U.S.&#160;stockholders may be required to treat a portion of any
    capital gain dividend as &#147;unrecaptured Section&#160;1250
    gain,&#148; taxable at a maximum rate of 25%, if we incur such
    gain. Capital gain dividends are not eligible for the
    dividends-received deduction for corporations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The REIT provisions do not require us to distribute our
    long-term capital gain, and we may elect to retain and pay
    income tax on our net long-term capital gains received during
    the taxable year. If we so elect for a taxable year, our
    stockholders would include in income as long-term capital gains
    their proportionate share of such portion of our undistributed
    long-term capital gains for the taxable year as we may
    designate. A U.S.&#160;stockholder would be deemed to have paid
    its share of the tax paid by us on such undistributed capital
    gains, which would be credited or refunded to the stockholder.
    The U.S.&#160;stockholder&#146;s basis in its shares would be
    increased by the amount of undistributed long-term capital gains
    (less the capital gains tax paid by us) included in the
    U.S.&#160;stockholder&#146;s long-term capital gains.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Passive
    Activity Loss and Investment Interest Limitations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our distributions and gain from the disposition of our shares
    will not be treated as passive activity income and, therefore,
    U.S.&#160;stockholders will not be able to apply any
    &#147;passive losses&#148; against such income. With respect to
    non-corporate U.S.&#160;stockholders, our distributions (to the
    extent they do not constitute a return of capital) that are
    taxed at ordinary income rates will generally be treated as
    investment income for purposes of the investment interest
    limitation; however, net capital gain from the disposition of
    our shares (or distributions treated as such), capital gain
    dividends, and dividends taxed at net capital gains rates
    generally will be excluded from investment income except to the
    extent the U.S.&#160;stockholder elects to treat such amounts as
    ordinary income for federal income tax purposes.
    U.S.&#160;stockholders may not include on their own federal
    income tax returns any of our tax losses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sale
    or Disposition of Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In general, any gain or loss realized upon a taxable disposition
    of shares of our common stock by a stockholder that is not a
    dealer in securities will be a long-term capital gain or loss if
    the shares have been held for more than one
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    year and otherwise will be a short-term capital gain or loss.
    However, any loss upon a sale or exchange of the shares by a
    stockholder who has held such stock for six months or less
    (after applying certain holding period rules) will be treated as
    a long-term capital loss to the extent of our distributions or
    undistributed capital gains required to be treated by such
    stockholder as long-term capital gain. All or a portion of any
    loss realized upon a taxable disposition of shares may be
    disallowed if other shares are purchased within 30&#160;days
    before or after the disposition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Medicare
    Tax on Unearned Income</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under recently-enacted U.S.&#160;federal income tax legislation,
    for taxable years beginning after December&#160;31, 2012, a
    U.S.&#160;stockholder that is an individual is subject to a 3.8%
    tax on the lesser of (1)&#160;his or her &#147;net investment
    income&#148; for the relevant taxable year or (2)&#160;the
    excess of his or her modified gross income for the taxable year
    over a certain threshold (between $125,000 and $250,000
    depending on the individual&#146;s U.S.&#160;federal income tax
    filing status). A similar regime applies to certain estates and
    trusts. Net investment income generally would include dividends
    on our stock and gain from the sale of our stock. If you are a
    U.S.&#160;stockholder that is an individual, an estate or a
    trust, you are urged to consult your tax advisors regarding the
    applicability of this tax to your income and gains in respect of
    your investment in our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Unrelated
    Business Taxable Income</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">In
    General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In general, a tax-exempt organization is exempt from federal
    income tax on its income, except to the extent of its
    &#147;unrelated business taxable income&#148; or UBTI, which is
    defined by the Code as the gross income derived from any trade
    or business which is regularly carried on by a tax-exempt entity
    and unrelated to its exempt purposes, less any directly
    connected deductions and subject to certain modifications. For
    this purpose, the Code generally excludes from UBTI any gain or
    loss from the sale or other disposition of property (other than
    stock in trade or property held primarily for sale in the
    ordinary course of a trade or business), dividends, interest,
    rents from real property, and certain other items. However, a
    portion of any such gains, dividends, interest, rents, and other
    items generally is UBTI to the extent derived from debt-financed
    property, based on the amount of &#147;acquisition
    indebtedness&#148; with respect to such debt-financed property.
    <B><I>Before making an investment in shares of our common stock,
    a tax-exempt stockholder should consult its own tax advisors
    with regard to UBTI and the suitability of the investment in our
    shares.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions we make to a tax-exempt employee pension trust or
    other domestic tax-exempt stockholder or gains from the
    disposition of our shares held as capital assets generally will
    not constitute UBTI unless the exempt organization&#146;s shares
    are debt-financed property (e.g., the stockholder has borrowed
    to acquire or carry its shares). This general rule may not
    apply, however, to distributions to certain pension trusts that
    are qualified trusts (as defined below) and that hold more than
    10% (by value) of our shares. For these purposes, a qualified
    trust is defined as any trust described in Section&#160;401(a)
    of the Code and exempt from tax under Section&#160;501(a) of the
    Code. If we are treated as a &#147;pension-held REIT,&#148; such
    qualified trusts will be required to treat a percentage of their
    dividends received from us as UBTI if we incur UBTI. We will be
    treated as a pension-held REIT if (i)&#160;we would fail the
    requirement that, during the last half of each taxable year, no
    more than 50% in value of our stock may be owned, directly or
    indirectly, by or for five or fewer individuals (the &#147;5/50
    Test&#148;) if qualified trusts were treated as
    &#147;individuals&#148; for purposes of the 5/50 Test and
    (ii)&#160;we are &#147;predominantly held&#148; by qualified
    trusts. Stock ownership for purposes of the 5/50 Test is
    determined by applying the constructive ownership provisions of
    Section&#160;544(a) of the Code, subject to certain
    modifications. The term &#147;individual&#148; for purposes of
    the 5/50 Test includes a private foundation, a trust providing
    for the payment of supplemental unemployment compensation
    benefits, and a portion of a trust permanently set aside or to
    be used exclusively for charitable purposes. A qualified trust
    described in Section&#160;401(a) of the Code and exempt from tax
    under Section&#160;501(a) of the Code generally is not treated
    as an individual; rather, shares held by it are treated as owned
    proportionately by its beneficiaries. We will be
    &#147;predominantly held&#148; by qualified trusts if either
    (i)&#160;a single qualified trust holds more than 25% by value
    of our stock or (ii)&#160;one or more qualified trusts, each
    owning more than 10% by value of our stock, hold in the
    aggregate more than 50% by value of our stock.
</DIV>
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    <BR>
    S-11
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event we are a pension-held REIT, a qualified trust
    owning 10% or more of our shares should expect to recognize UBTI
    as a result of its investment, and we cannot assure you that we
    will never be treated as a pension-held REIT. The percentage of
    any dividend received from us treated as UBTI would be equal to
    the ratio of (a)&#160;the gross UBTI (less certain associated
    expenses) earned by us (treating us as if we were a qualified
    trust and, therefore, subject to tax on UBTI) to (b)&#160;our
    total gross income (less certain associated expenses). A <I>de
    minimis </I>exception applies where the ratio set forth in the
    preceding sentence is less than 5% for any year; in that case,
    no dividends are treated as UBTI. Our gross UBTI for these
    purposes would include the rent we receive from Bloodstone TRS,
    Inc. and, therefore, could be substantial.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Special
    Issues</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Social clubs, voluntary employee benefit associations,
    supplemental unemployment benefit trusts, and qualified group
    legal services plans that are exempt from taxation under
    paragraphs (7), (9), (17), and (20), respectively, of
    Section&#160;501(c) of the Code are subject to different UBTI
    rules, which generally will require them to characterize
    distributions from us as UBTI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting Requirements and Backup Withholding Tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will report to our U.S.&#160;stockholders and to the IRS the
    amount of distributions paid during each calendar year, and the
    amount of tax withheld, if any. Under the backup withholding
    rules, a U.S.&#160;stockholder may be subject to backup
    withholding at the current rate of 28% with respect to
    distributions paid, unless such stockholder (i)&#160;is a
    corporation or other exempt entity and, when required, proves
    its status or (ii)&#160;certifies under penalties of perjury
    that the taxpayer identification number the stockholder has
    furnished to us is correct and the stockholder is not subject to
    backup withholding and otherwise complies with the applicable
    requirements of the backup withholding rules. A
    U.S.&#160;stockholder that does not provide us with its correct
    taxpayer identification number also may be subject to penalties
    imposed by the IRS. Any amount paid as backup withholding will
    be creditable against the stockholder&#146;s income tax
    liability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Stockholders</FONT>
    Holding Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The rules governing U.S.&#160;federal income taxation of our
    stockholders who are beneficial owners of our common stock and
    who are not U.S.&#160;stockholders or entities treated as
    partnerships for federal income tax purposes, such as
    nonresident alien individuals, foreign corporations, and foreign
    trusts and estates
    <FONT style="white-space: nowrap">(&#147;non-U.S.&#160;stockholders&#148;),</FONT>
    are complex. This section is only a summary of such rules.
    <B><I>We urge prospective
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders</FONT>
    to consult their own tax advisors to determine the impact of
    federal, state, local and foreign income tax laws on their
    ownership of our common stock, including any reporting
    requirements.</I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Distributions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    that receives a distribution that is not attributable to gain
    from our sale or exchange of &#147;United States real property
    interests&#148; (as defined below) and that we do not designate
    as a capital gain dividend or retained capital gain generally
    will recognize ordinary income to the extent that we pay the
    distribution out of our current or accumulated earnings and
    profits. A withholding tax equal to 30% of the gross amount of
    the distribution ordinarily will apply unless an applicable tax
    treaty reduces or eliminates the tax. Under some treaties, lower
    withholding rates do not apply to dividends from REITs. However,
    if a distribution is treated as effectively connected with the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    conduct of a U.S.&#160;trade or business, the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    generally will be subject to federal income tax on the
    distribution at graduated rates (in the same manner as
    U.S.&#160;stockholders are taxed on distributions) and also may
    be subject to the 30% branch profits tax in the case of a
    corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder.</FONT>
    We plan to withhold U.S.&#160;income tax at the rate of 30% on
    the gross amount of any distribution paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    that is neither a capital gain dividend nor a distribution that
    is attributable to gain from the sale or exchange of
    &#147;United States real property interests&#148; unless either
    (i)&#160;a lower treaty rate applies and the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    files with us any required IRS
    <FONT style="white-space: nowrap">Form&#160;W-8</FONT>
    (for example, an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN)</FONT>
    evidencing eligibility for that reduced rate or (ii)&#160;the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    files with us an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    claiming that the distribution is effectively connected income.
</DIV>
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    <BR>
    S-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    generally will not incur tax on a return of capital distribution
    in excess of our current and accumulated earnings and profits
    that is not attributable to the gain from our disposition of a
    &#147;United States real property interest&#148; if the excess
    portion of the distribution does not exceed the adjusted basis
    of the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    common stock. Instead, the excess portion of the distribution
    will reduce the adjusted basis of that common stock. However, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will be subject to tax on such a distribution that exceeds both
    our current and accumulated earnings and profits and the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    adjusted basis in the common stock, if the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    otherwise would be subject to tax on gain from the sale or
    disposition of its common stock, as described below. Because we
    generally cannot determine at the time we make a distribution
    whether the distribution will exceed our current and accumulated
    earnings and profits, we normally will withhold tax on the
    entire amount of any distribution at the same rate as we would
    withhold on a dividend. However, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may obtain a refund of amounts that we withhold if we later
    determine that a distribution in fact exceeded our current and
    accumulated earnings and profits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may be required to withhold 10% of any distribution that
    exceeds our current and accumulated earnings and profits.
    Consequently, although we intend to withhold at a rate of 30% on
    the entire amount of any distribution that is neither
    attributable to the gain from our disposition of a &#147;United
    States real property interest&#148; nor designated by us as a
    capital gain dividend, to the extent that we do not do so, we
    will withhold at a rate of 10% on any portion of a distribution
    not subject to withholding at a rate of 30%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the exception discussed below for 5% or smaller
    holders of regularly traded classes of stock, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will incur tax on distributions that are attributable to gain
    from our sale or exchange of &#147;United States real property
    interests&#148; under special provisions of the Foreign
    Investment in Real Property Tax Act of 1980, or FIRPTA. The term
    &#147;United States real property interests&#148; includes
    interests in U.S.&#160;real property and shares in
    U.S.&#160;corporations at least 50% of whose assets consist of
    interests in U.S.&#160;real property. Under those rules, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    is taxed on distributions attributable to gain from sales of
    United States real property interests as if the gain were
    effectively connected with the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    conduct of a U.S.&#160;trade or business. A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    thus would be taxed on such a distribution at the normal capital
    gain rates applicable to U.S.&#160;stockholders, subject to
    applicable alternative minimum tax and a special alternative
    minimum tax in the case of a nonresident alien individual. A
    corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    not entitled to treaty relief or exemption also may be subject
    to the 30% branch profits tax on such a distribution. We
    generally must withhold 35% of any distribution subject to these
    rules that we could designate as a capital gain distribution
    (&#147;35% FIRPTA Withholding&#148;). A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may receive a credit against its tax liability for the amount we
    withhold.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    that owns no more than 5% of our common stock at all times
    during the one-year period ending on the date of a distribution
    will not be subject to 35% FIRPTA Withholding with respect to
    such distribution that is attributable to gain from our sale or
    exchange of United States real property interests, provided that
    our common stock continues to be regularly traded on an
    established securities market in the United States. Instead, any
    such distributions made to such
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will be subject to the general withholding rules discussed
    above, which generally impose a withholding tax equal to 30% of
    the gross amount of each distribution (unless reduced by treaty).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dispositions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the gain on the sale of our common stock were taxed under
    FIRPTA, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    would be taxed on that gain in the same manner as
    U.S.&#160;stockholders with respect to that gain, subject to
    applicable alternative minimum tax, and a special alternative
    minimum tax in the case of nonresident alien individuals. A
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    generally will not incur tax under FIRPTA on a sale or other
    disposition of our stock if we are a &#147;domestically
    controlled qualified investment entity,&#148; which means that,
    during the five-year period ending on the date of the
    distribution or disposition,
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders</FONT>
    held, directly or indirectly, less than 50% in value of our
    shares. We cannot assure you that we are or will be in the
    future a domestically controlled qualified investment entity.
    Alternatively, the gain from a sale of our common stock by a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will not be subject to tax under FIRPTA if (i)&#160;our common
    stock is considered regularly traded under applicable Treasury
    Regulations on an established securities market, such as the New
    York Stock Exchange, and (ii)&#160;the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    owned, actually or constructively, 5% or less of our common
    stock at all times during a specified testing period. Since the
    completion of our initial public offering, we believe our common
    stock has been regularly traded on an established
</DIV>
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    <BR>
    S-13
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    securities market. Accordingly, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    should not incur tax under FIRPTA with respect to gain on a sale
    of our common stock unless it owns, or has owned during the
    applicable testing period, actually or constructively, more than
    5% of our common stock provided that our common stock continues
    to be regularly traded on an established securities market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, even if we are a domestically controlled qualified
    investment entity, upon a disposition of our common stock, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may be treated as having gain from the sale or exchange of a
    United States real property interest if the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    (i)&#160;disposes of an interest in our common stock during the
    <FONT style="white-space: nowrap">30-day</FONT>
    period preceding the ex-dividend date of a distribution, any
    portion of which, but for the disposition, would have been
    treated as gain from the sale or exchange of a United States
    real property interest and (ii)&#160;directly or indirectly
    acquires, enters into a contract or option to acquire, or is
    deemed to acquire, other shares of our common stock within
    30&#160;days before or after such ex-dividend date. The
    foregoing rule does not apply if the exception described above
    for distributions to 5% or smaller holders of regularly traded
    classes of stock is satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Furthermore, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    generally will incur tax on gain not subject to FIRPTA if
    (i)&#160;the gain is effectively connected with the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    U.S.&#160;trade or business, in which case the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will be subject to the same treatment as U.S.&#160;stockholders
    with respect to such gain, or (ii)&#160;the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    is a nonresident alien individual who was present in the United
    States for 183&#160;days or more during the taxable year and has
    a &#147;tax home&#148; in the United States, in which case the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    will generally incur a 30% tax on his or her net
    U.S.&#160;source capital gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Purchasers of our stock from a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    generally will be required to withhold and remit to the IRS 10%
    of the purchase price unless at the time of purchase
    (i)&#160;any class of our stock is regularly traded on an
    established securities market in the United States (subject to
    certain limits if the shares sold are not themselves part of
    such a regularly traded class) or (ii)&#160;we are a
    domestically controlled qualified investment entity. The
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may receive a credit against its tax liability for the amount
    withheld.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Certain Stock Dividends</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have in the past and we may again in the future distribute
    taxable dividends that are payable in cash and shares of our
    common stock at the election of each stockholder. Under IRS
    Revenue Procedure
    <FONT style="white-space: nowrap">2010-12,</FONT> up
    to 90% of any such taxable dividend with respect to the taxable
    years 2008 through 2011 could be payable in our stock. Taxable
    stockholders receiving such dividends are required to include
    the full amount of the dividend as ordinary income to the extent
    of our current or accumulated earnings and profits for
    U.S.&#160;federal income tax purposes. As a result,
    U.S.&#160;stockholders may be required to pay income taxes with
    respect to such dividends in excess of the cash dividends
    received. Accordingly, U.S.&#160;stockholders receiving a
    distribution of our shares may be required to sell shares
    received in such distribution or may be required to sell other
    stock or assets owned by them, at a time that may be
    disadvantageous, in order to satisfy any tax imposed on such
    distribution. If a U.S.&#160;stockholder sells the stock that it
    receives as a dividend in order to pay this tax, the sales
    proceeds may be less than the amount included in income with
    respect to the dividend, depending on the market price of our
    stock at the time of the sale. With respect to certain
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders,</FONT>
    we may be required to withhold U.S.&#160;tax with respect to
    such dividends, including in respect of all or a portion of such
    dividend that is payable in stock, by withholding or disposing
    of part of the shares in such distribution and using the
    proceeds of such disposition to satisfy the withholding tax
    imposed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Further, while Revenue Procedure
    <FONT style="white-space: nowrap">2010-12</FONT>
    applies only to taxable dividends payable by us in a combination
    of cash and stock with respect to the taxable years 2008 through
    2011, it is unclear whether and to what extent we will be able
    to pay taxable dividends in cash and stock in later years.
    Moreover, various tax aspects of such a taxable cash/stock
    dividend are uncertain and have not yet been addressed by the
    IRS. No assurance can be given that the IRS will not impose
    additional requirements in the future with respect to taxable
    cash/stock dividends, including on a retroactive basis, or
    assert that the requirements for such taxable cash/stock
    dividends have not been met.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Changes in U.S. Federal Income Tax Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Recently-enacted U.S.&#160;federal income tax legislation
    imposes withholding taxes on certain types of payments made
    after December&#160;31, 2012 to foreign financial institutions
    and certain other
    <FONT style="white-space: nowrap">non-U.S.&#160;entities.</FONT>
    The withholding tax of 30% would apply to dividends and the
    gross proceeds of a disposition of our stock paid to
    U.S.&#160;stockholders
</DIV>
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    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    who own their stock through foreign accounts or foreign
    intermediaries and certain foreign entities unless various
    information reporting requirements are satisfied. For these
    purposes, a foreign financial institution generally is defined
    as any
    <FONT style="white-space: nowrap">non-U.S.&#160;entity</FONT>
    that (i)&#160;accepts deposits in the ordinary course of a
    banking or similar business, (ii)&#160;is engaged in the
    business of holding financial assets for the account of others,
    or (iii)&#160;is engaged or holds itself out as being engaged
    primarily in the business of investing, reinvesting, or trading
    in securities, partnership interests, commodities, or any
    interest in such assets. If payment of withholding taxes is
    required,
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders</FONT>
    that are otherwise eligible for an exemption from, or reduction
    of, U.S.&#160;withholding taxes will be required to seek a
    refund from the IRS to obtain the benefit of such exemption or
    reduction. We will not pay any additional amounts in respect of
    any amounts withheld. Prospective investors are encouraged to
    consult their tax advisors regarding the implications of this
    legislation on their investment in our stock, as well as the
    status of any related federal regulations and any other
    legislative proposals that may pertain to ownership and
    disposition of our stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Legislative
    or other actions affecting REITs</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The rules dealing with U.S.&#160;federal income taxation are
    constantly under review by persons involved in the legislative
    process and by the IRS and the U.S.&#160;Treasury Department. No
    assurance can be given as to whether, when, or in what form, the
    U.S.&#160;federal income tax laws applicable to us and our
    stockholders may be enacted. Changes to the federal tax laws and
    interpretations of federal tax laws could adversely affect an
    investment in our common stock.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the terms and conditions contained in an underwriting
    agreement among us and Goldman, Sachs &#038; Co., we have agreed
    to sell to the underwriter, and the underwriter has agreed to
    purchase from us, 11,000,000  shares of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter has agreed to purchase all of the shares sold
    under the underwriting agreement if any of those shares are
    purchased, other than those shares covered by the option to
    purchase additional shares described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed to indemnify the underwriter and its controlling
    persons against specified liabilities in connection with this
    offering, including liabilities under the Securities Act, or to
    contribute to payments the underwriter may be required to make
    in respect of those liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter is offering the shares, subject to prior sale,
    when, as and if issued to and accepted by it, subject to
    approval of legal matters by counsel and other conditions. The
    underwriter reserves the right to withdraw, cancel or modify
    this offer and to reject orders in whole or in part.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Commissions
    and Discounts</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter has advised us that it proposes initially to
    offer the shares to the public at the public offering price
    appearing on the cover page of this prospectus supplement. After
    this offering, the public offering price and other selling terms
    may be changed. Sales of shares made outside of the United
    States may be made by affiliates of the underwriter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table shows the public offering price,
    underwriting discount and proceeds before expenses to us. This
    information assumes either no exercise or full exercise by the
    underwriter of the option to purchase additional shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,650,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    153,697,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    880,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,012,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    132,770,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    152,685,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The expenses of the offering, exclusive of the underwriting
    discount, are estimated at approximately $250,000 and are
    payable by us.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Option to
    Purchase Additional Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have granted a one-time option to the underwriter to purchase
    up to 1,650,000 additional shares at the public offering price
    listed on the cover page of this prospectus supplement, less the
    underwriting discount. The underwriter may exercise this option
    for 30&#160;days from the date of this prospectus supplement.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-16
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">No Sales
    of Similar Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We and each of our directors and executive officers have agreed
    not to sell or transfer any common stock, with limited
    exceptions, for 45&#160;days after the date of this prospectus
    supplement without first obtaining the written consent of the
    underwriter. Specifically, we and each of our directors and
    executive officers have agreed, subject to certain exceptions,
    not to, directly or indirectly:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    offer, pledge, sell or contract to sell any common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sell any option or contract to purchase any common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    purchase any option or contract to sell any common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    grant any option, right or warrant for the sale of any common
    stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lend or otherwise dispose of or transfer any common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any swap or other agreement or any transaction that
    transfers, in whole or in part, directly or indirectly, the
    economic consequence of ownership of any common stock, whether
    any such swap or transaction is to be settled by delivery of
    common stock or other securities, in cash or otherwise;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    file with the SEC a registration statement under the Securities
    Act relating to any additional shares of common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This lockup provision applies to common stock and to securities
    convertible into or exchangeable or exercisable for common
    stock. The lockup applies to common stock owned now or acquired
    later by the person executing the agreement or for which the
    person executing the agreement later acquires the power of
    disposition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event that we notify the underwriter in writing that we
    do not intend to proceed with this offering, if the underwriting
    agreement does not become effective, or if the underwriting
    agreement is terminated prior to payment for and delivery of our
    common stock, the lockup provisions will be released.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">New York
    Stock Exchange Listing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common stock is listed on the New York Stock Exchange under
    the symbol &#147;DRH.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Price
    Stabilization and Short Positions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until the distribution of the shares is completed, SEC rules may
    limit the ability of the underwriter to bid for or purchase our
    common stock. However, the underwriter may engage in
    transactions that stabilize the price of our common stock, such
    as bids or purchases to peg, fix or maintain that price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the underwriter creates a short position in the common stock
    in connection with the offering, i.e., if it sells more shares
    than are listed on the cover of this prospectus supplement, the
    underwriter may reduce that short position by purchasing shares
    in the open market. The underwriter may also elect to reduce any
    short position by exercising all or part of the option to
    purchase additional shares described above. Purchases of the
    common stock to stabilize its price or to reduce a short
    position may cause the price of the common stock to be higher
    than it might be in the absence of those purchases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Neither we nor the underwriter make any representation or
    prediction as to the direction or magnitude of any effect that
    the transactions described above may have on the price of our
    common stock. In addition, neither we nor the underwriter make
    any representation that the underwriters will engage in those
    transactions or that those transactions, once commenced, will
    not be discontinued without notice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Compliance
    with
    <FONT style="white-space: nowrap">Non-U.S.</FONT>
    Laws and Regulations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter intends to comply with all applicable laws and
    regulations in each jurisdiction in which it acquires, offers,
    sells or delivers shares of our common stock or has in its
    possession or distributes this prospectus supplement or the
    accompanying prospectus.
</DIV>
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    <BR>
    S-17
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Relationships</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriter and its affiliates are full service financial
    institutions engaged in various activities, which may include
    securities trading, commercial and investment banking, financial
    advisory, investment management, investment research, principal
    investment, hedging, financing and brokerage activities. The
    underwriter and its affiliates have engaged in, and may in the
    future engage in, investment banking, commercial banking and
    other commercial dealings in the ordinary course of business
    with us and our affiliates, for which they have received and may
    continue to receive customary fees and commissions. An affiliate
    of the underwriter in this offering acts as lender and/or agent
    under our credit facility and may receive a portion of the
    proceeds from this offering.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the ordinary course of their various business activities, the
    underwriter and its affiliates may make or hold a broad array of
    investments and actively trade debt and equity securities (or
    related derivative securities) and financial instruments
    (including bank loans) for their own account and for the
    accounts of their customers, and such investment and securities
    activities may involve securities and/or instruments of the
    issuer.   The underwriter and its affiliates may also make
    investment recommendations and/or publish or express independent
    research views in respect of such securities or instruments and
    may at any time hold, or recommend to clients that they acquire,
    long and/or short positions in such securities and instruments.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in the EEA</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive (each, a
    &#147;Relevant Member State&#148;) an offer to the public of any
    securities which are the subject of the offering contemplated by
    this prospectus supplement (the &#147;Shares&#148;) may not be
    made in that Relevant Member State, except that an offer to the
    public in that Relevant Member State of any Shares may be made
    at any time under the following exemptions under the Prospectus
    Directive, if they have been implemented in that Relevant Member
    State:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;to legal entities which are authorised or regulated to
    operate in the financial markets or, if not so authorised or
    regulated, whose corporate purpose is solely to invest in
    securities;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;to any legal entity which has two or more of
    (1)&#160;an average of at least 250&#160;employees during the
    last financial year; (2)&#160;a total balance sheet of more than
    &#128;43,000,000 and (3)&#160;an annual net turnover of more
    than &#128;50,000,000, as shown in its last annual or
    consolidated accounts;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;by the underwriter to fewer than 100 natural or legal
    persons (other than qualified investors as defined in the
    Prospectus Directive) subject to obtaining the prior consent of
    the underwriter for any such offer;&#160;or
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (d)&#160;in any other circumstances falling within
    Article&#160;3(2) of the Prospectus Directive,
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    provided that no such offer of Shares shall result in a
    requirement for the publication by us or any underwriter of a
    prospectus pursuant to Article&#160;3 of the Prospectus
    Directive.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any person making or intending to make any offer of securities
    within the EEA should only do so in circumstances in which no
    obligation arises for us or the underwriter to produce a
    prospectus for such offer. Neither we nor the underwriter have
    authorized, nor do they authorize, the making of any offer of
    securities through any financial intermediary, other than offers
    made by the underwriter which constitute the final offering of
    securities contemplated in this prospectus supplement.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For the purposes of this provision, the expression an
    &#147;offer to the public&#148; in relation to any Shares in any
    Relevant Member State means the communication in any form and by
    any means of sufficient information on the terms of the offer
    and any Shares to be offered so as to enable an investor to
    decide to purchase any Shares, as the same may be varied in that
    Member State by any measure implementing the Prospectus
    Directive in that Member State and the expression
    &#147;Prospectus Directive&#148; means Directive 2003/71/EC and
    includes any relevant implementing measure in each Relevant
    Member State.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each person in a Relevant Member State who receives any
    communication in respect of, or who acquires any securities
    under, the offer of securities contemplated by this prospectus
    supplement will be deemed to have represented, warranted and
    agreed to and with us and the underwriter that:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (A)&#160;it is a &#147;qualified investor&#148; within the
    meaning of the law in that Relevant Member State implementing
    Article&#160;2(1)(e) of the Prospectus Directive;&#160;and
</DIV>
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    <BR>
    S-18
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (B)&#160;in the case of any securities acquired by it as a
    financial intermediary, as that term is used in
    Article&#160;3(2) of the Prospectus Directive, (i)&#160;the
    securities acquired by it in the offering have not been acquired
    on behalf of, nor have they been acquired with a view to their
    offer or resale to, persons in any Relevant Member State other
    than &#147;qualified investors&#148; (as defined in the
    Prospectus Directive), or in circumstances in which the prior
    consent of the underwriter has been given to the offer or
    resale; or (ii)&#160;where securities have been acquired by it
    on behalf of persons in any Relevant Member State other than
    qualified investors, the offer of those securities to it is not
    treated under the Prospectus Directive as having been made to
    such persons.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, in the United Kingdom, this document is being
    distributed only to, and is directed only at, and any offer
    subsequently made may only be directed at persons who are
    &#147;qualified investors&#148; (as defined in the Prospectus
    Directive) (i)&#160;who have professional experience in matters
    relating to investments falling within Article&#160;19
    (5)&#160;of the Financial Services and Markets Act 2000
    (Financial Promotion) Order 2005, as amended (the
    &#147;Order&#148;)
    <FONT style="white-space: nowrap">and/or</FONT>
    (ii)&#160;who are high net worth companies (or persons to whom
    it may otherwise be lawfully communicated) falling within
    Article&#160;49(2)(a) to (d)&#160;of the Order (all such persons
    together being referred to as &#147;relevant persons&#148;).
    This document must not be acted on or relied on in the United
    Kingdom by persons who are not relevant persons. In the United
    Kingdom, any investment or investment activity to which this
    document relates is only available to, and will be engaged in
    with, relevant persons.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in Switzerland</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The shares offered by this prospectus supplement (the
    &#147;Shares&#148;) may not be publicly offered in Switzerland
    and will not be listed on the SIX Swiss Exchange
    (&#147;SIX&#148;) or on any other stock exchange or regulated
    trading facility in Switzerland. This document has been prepared
    without regard to the disclosure standards for issuance
    prospectuses under art. 652a or art. 1156 of the Swiss Code of
    Obligations or the disclosure standards for listing prospectuses
    under art. 27 ff. of the SIX Listing Rules or the listing rules
    of any other stock exchange or regulated trading facility in
    Switzerland. Neither this document nor any other offering or
    marketing material relating to the Shares or the offering may be
    publicly distributed or otherwise made publicly available in
    Switzerland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Neither this document nor any other offering or marketing
    material relating to the offering, the issuer, the Shares have
    been or will be filed with or approved by any Swiss regulatory
    authority. In particular, this document will not be filed with,
    and the offer of Shares will not be supervised by, the Swiss
    Financial Market Supervisory Authority FINMA
    (&#147;FINMA&#148;), and the offer of Shares has not been and
    will not be authorized under the Swiss Federal Act on Collective
    Investment Schemes (&#147;CISA&#148;). The investor protection
    afforded to acquirers of interests in collective investment
    schemes under the CISA does not extend to acquirers of Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in the Dubai International Financial
    Centre</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement relates to an Exempt Offer in
    accordance with the Offered Securities Rules of the Dubai
    Financial Services Authority (&#147;DFSA&#148;). This prospectus
    supplement is intended for distribution only to persons of a
    type specified in the Offered Securities Rules of the DFSA. It
    must not be delivered to, or relied on by, any other person. The
    DFSA has no responsibility for reviewing or verifying any
    documents in connection with Exempt Offers. The DFSA has not
    approved this prospectus supplement nor taken steps to verify
    the information set forth herein and has no responsibility for
    the prospectus supplement. The securities to which this
    prospectus supplement relates may be illiquid
    <FONT style="white-space: nowrap">and/or</FONT>
    subject to restrictions on their resale. Prospective purchasers
    of the securities offered should conduct their own due diligence
    on the securities. If you do not understand the contents of this
    prospectus supplement you should consult an authorized financial
    advisor.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in Hong Kong</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The shares may not be offered or sold by means of any document
    other than (i) in circumstances which do not constitute an offer
    to the public within the meaning of the Companies Ordinance
    (Cap.32, Laws of Hong Kong), or (ii) to &#145;professional
    investors&#145; within the meaning of the Securities and Futures
    Ordinance (Cap.571, Laws of Hong Kong) and any rules made
    thereunder, or (iii) in other circumstances which do not result
    in the document being a &#145;prospectus&#145; within the
    meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong),
    and no advertisement, invitation or document relating to the
    shares may be issued or may be in the possession of any person
    for the purpose of issue (in each case whether in Hong Kong or
    elsewhere), which is directed at, or the contents of which are
    likely to
</DIV>
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    <BR>
    S-19
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    be accessed or read by, the public in Hong Kong (except if
    permitted to do so under the laws of Hong Kong) other than with
    respect to shares which are or are intended to be disposed of
    only to persons outside Hong Kong or only to &#145;professional
    investors&#145; within the meaning of the Securities and Futures
    Ordinance (Cap. 571, Laws of Hong Kong) and any rules made
    thereunder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in Singapore</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus has not been registered as a prospectus with the
    Monetary Authority of Singapore. Accordingly, this prospectus
    and any other document or material in connection with the offer
    or sale, or invitation for subscription or purchase, of the
    shares may not be circulated or distributed, nor may the shares
    be offered or sold, or be made the subject of an invitation for
    subscription or purchase, whether directly or indirectly, to
    persons in Singapore other than (i) to an institutional investor
    under Section 274 of the Securities and Futures Act, Chapter 289
    of Singapore (the &#145;SFA&#145;), (ii) to a relevant person,
    or any person pursuant to Section 275(1A), and in accordance
    with the conditions, specified in Section 275 of the SFA or
    (iii) otherwise pursuant to, and in accordance with the
    conditions of, any other applicable provision of the SFA. Where
    the shares are subscribed or purchased under Section 275 by a
    relevant person which is: (a) a corporation (which is not an
    accredited investor) the sole business of which is to hold
    investments and the entire share capital of which is owned by
    one or more individuals, each of whom is an accredited investor;
    or (b) a trust (where the trustee is not an accredited investor)
    whose sole purpose is to hold investments and each beneficiary
    is an accredited investor, shares, debentures and units of
    shares and debentures of that corporation or the
    beneficiaries&#146; rights and interest in that trust shall not
    be transferable for 6 months after that corporation or that
    trust has acquired the shares under Section 275 except: (1) to
    an institutional investor under Section 274 of the SFA or to a
    relevant person, or any person pursuant to Section 275(1A), and
    in accordance with the conditions, specified in Section 275 of
    the SFA; (2) where no consideration is given for the transfer;
    or (3) by operation of law.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in Japan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The securities have not been and will not be registered under
    the Financial Instruments and Exchange Law of Japan (the
    Financial Instruments and Exchange Law) and each underwriter has
    agreed that it will not offer or sell any securities, directly
    or indirectly, in Japan or to, or for the benefit of, any
    resident of Japan (which term as used herein means any person
    resident in Japan, including any corporation or other entity
    organized under the laws of Japan), or to others for re-offering
    or resale, directly or indirectly, in Japan or to a resident of
    Japan, except pursuant to an exemption from the registration
    requirements of, and otherwise in compliance with, the Financial
    Instruments and Exchange Law and any other applicable laws,
    regulations and ministerial guidelines of Japan.
</DIV>

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain legal matters will be passed upon for us by Goodwin
    Procter LLP and for the underwriter by Hunton&#160;&#038;
    Williams LLP.
</DIV>

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The consolidated financial statements and schedules of
    DiamondRock Hospitality Company as of December&#160;31, 2009 and
    2008 and for each of the years in the three-year period ended
    December&#160;31, 2009 and management&#146;s assessment of
    internal control over financial reporting as of
    December&#160;31, 2009 have been incorporated by reference in
    this prospectus supplement and the accompanying prospectus and
    in the registration statement of which this prospectus
    supplement and the accompanying prospectus are a part, in
    reliance upon the reports of KPMG LLP, independent registered
    public accounting firm, incorporated by reference herein and
    upon the authority of said firm as experts in accounting and
    auditing.
</DIV>

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We file annual, quarterly and special reports, proxy statements
    and other information with the SEC. Our SEC&#160;filing number
    is
    <FONT style="white-space: nowrap">001-32514.</FONT>
    You may read and copy any document we file with the SEC at the
    SEC&#146;s public reference room at
</DIV>
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    <BR>
    S-20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    100&#160;F&#160;Street, N.E. Room&#160;1580,
    Washington,&#160;D.C. 20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information about the public reference room. The SEC
    also maintains a website that contains reports, proxy and
    information statements and other information regarding
    registrants that file electronically with the SEC&#160;at
    <I><FONT style="white-space: nowrap">http://www.sec.gov</FONT>
    </I>. You can inspect reports and other information we file at
    the offices of the NYSE, 20&#160;Broad Street, New York, New
    York 10005. In addition, we maintain a website that contains
    information about us at <I>www.drhc.com </I>. The information
    found on, or otherwise accessible through, our website is not
    incorporated into, and does not form a part of, this prospectus
    supplement or any other report or documents we file with or
    furnish to the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    (File
    <FONT style="white-space: nowrap">No.&#160;333-161298),</FONT>
    of which this prospectus supplement is a part, including
    exhibits, schedules and amendments filed with, or incorporated
    by reference in, this registration statement, under the
    Securities Act, with respect to the shares of our common stock
    registered hereby. This prospectus supplement does not contain
    all of the information set forth in the registration statement
    and exhibits and schedules to the registration statement. For
    further information with respect to our company and the shares
    of our common stock offered hereby, reference is made to the
    registration statement, including the exhibits to the
    registration statement. Statements contained in this prospectus
    supplement as to the contents of any contract or other document
    referred to, or incorporated by reference, in this prospectus
    supplement are not necessarily complete and, where that contract
    is an exhibit to the registration statement, each statement is
    qualified in all respects by the exhibit to which the reference
    relates. Copies of the registration statement, including the
    exhibits and schedules to the registration statement, may be
    examined at the SEC&#146;s public reference rooms at
    100&#160;F&#160;Street, N.E. Room&#160;1580, Washington, DC
    20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference rooms. Copies of
    all or a portion of the registration statement can be obtained
    from the public reference room of the SEC upon payment of
    prescribed fees. This registration statement is also available
    to you on the SEC&#146;s web site,
    <I><FONT style="white-space: nowrap">http://www.sec.gov</FONT></I>.
</DIV>

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC allows us to &#147;incorporate by reference&#148; in
    this prospectus supplement certain information we file with the
    SEC, which means that we may disclose important information in
    this prospectus supplement by referring you to the document that
    contains the information. The information incorporated by
    reference is considered to be a part of this prospectus
    supplement, and the information we file later with the SEC will
    automatically update and supersede this information. We
    incorporate by reference the documents listed below that we
    filed with the SEC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;26, 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended June&#160;18, 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;10, 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Definitive Proxy Statement on Schedule&#160;14A filed on
    March&#160;19, 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on January&#160;12, 2010; January&#160;29, 2010;
    March&#160;9, 2010; March&#160;29, 2010 (solely with respect to
    Item&#160;8.01 thereof); April&#160;30, 2010; May&#160;20, 2010;
    May&#160;25, 2010; May&#160;27, 2010 and August&#160;9, 2010
    (solely with respect to Items 1.01 and 2.03 thereof);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the description of our common stock, $0.01&#160;par value per
    share, contained in our Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on May&#160;25, 2005, including any amendment or report
    filed for the purpose of updating such description (file number
    <FONT style="white-space: nowrap">001-32514);&#160;and</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all documents filed by us pursuant to Section&#160;13(a), 13(c),
    14 or 15(d) of the Securities Exchange Act of 1934 from the date
    of this prospectus and prior to the termination of this
    offering; provided, however, that we are not incorporating by
    reference any additional documents or information furnished and
    not filed with the SEC.
</TD>
</TR>

</TABLE>
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    <BR>
    S-21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You may request a copy of these documents, and any exhibits we
    have specifically incorporated by reference as an exhibit in
    this prospectus supplement, at no cost by writing us at the
    following address or calling us at the telephone number listed
    below:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: 'Times New Roman', Times">DiamondRock
    Hospitality Company<BR>
    3 Bethesda Metro Center, Suite&#160;1500<BR>
    Bethesda, MD 20814<BR>
    Attention: Investor Relations<BR>
    <FONT style="white-space: nowrap">(240)&#160;744-1150</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Readers should rely on the information provided or incorporated
    by reference in this prospectus supplement. Readers should not
    assume that the information in this prospectus supplement is
    accurate as of any date other than the date on the front cover
    of the document.
</DIV>
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    <BR>
    S-22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="w81141b5x8114101.gif" alt="(DIAMONDROCK LOGO)"><B> </B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock, Preferred Stock,
    Depositary Shares and Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under this prospectus, we may offer, from time to time, in one
    or more series or classes, the following securities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares of our preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    depositary shares representing shares of our preferred
    stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    warrants exercisable for our common stock, preferred stock or
    depositary shares representing preferred stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We refer to our common stock, preferred stock, depositary shares
    and warrants collectively as the &#147;securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may offer the securities separately or together, in separate
    series or classes and in amounts, at prices and on terms
    described in one or more supplements to this prospectus. The
    applicable prospectus supplement also will contain information,
    where applicable, about U.S.&#160;federal income tax
    considerations relating to, and any listing on a securities
    exchange of, the securities covered by the prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may offer the securities directly to investors, through
    agents designated from time to time by them or us, or to or
    through underwriters or dealers. For more detailed information,
    see &#147;Plan of Distribution&#148; beginning on page&#160;33.
    No securities may be sold without delivery of a prospectus
    supplement describing the method and terms of the offering of
    those securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is listed on the New York Stock Exchange, or
    NYSE, under the symbol &#147;DRH.&#148;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should read this entire prospectus, the documents that
    are incorporated by reference in this prospectus and any
    prospectus supplement carefully before you invest in any of
    these securities.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in our securities involves risks. See &#147;Risk
    Factors&#148; on page&#160;1 for risks relating to an investment
    in our securities.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is dated August&#160;12, 2009
</DIV>
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</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>OUR COMPANY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
    PREFERRED DIVIDENDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>DESCRIPTION OF CAPITAL STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>DESCRIPTION OF COMMON STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>DESCRIPTION OF PREFERRED STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>DESCRIPTION OF DEPOSITARY SHARES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>DESCRIPTION OF WARRANTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>RESTRICTIONS ON OWNERSHIP AND TRANSFER</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>BOOK-ENTRY SECURITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>DESCRIPTION OF CERTAIN MATERIAL PROVISIONS OF
    MARYLAND LAW, OUR CHARTER AND OUR BYLAWS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>DESCRIPTION OF THE PARTNERSHIP AGREEMENT OF
    DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>INVESTMENT POLICIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>FEDERAL INCOME TAX CONSIDERATIONS RELATED TO OUR
    REIT ELECTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>PLAN OF DISTRIBUTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>INCORPORATION OF CERTAIN DOCUMENTS BY
    REFERENCE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information provided or incorporated
    by reference in this prospectus or any applicable prospectus
    supplement. We have not authorized anyone to provide you with
    different or additional information. We are not making an offer
    to sell these securities in any jurisdiction where the offer or
    sale of these securities is not permitted. You should not assume
    that the information appearing in this prospectus or any
    applicable prospectus supplement or the documents incorporated
    by reference herein or therein is accurate as of any date other
    than their respective dates. Our business, financial condition,
    results of operations and prospects may have changed since those
    dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    References in this prospectus to &#147;we,&#148;
    &#147;our,&#148; &#147;us&#148; and &#147;our company&#148;
    refer to DiamondRock Hospitality Company, including, as the
    context requires, DiamondRock Hospitality Limited Partnership,
    our operating partnership, as well as our other direct and
    indirect subsidiaries, including our existing taxable REIT
    subsidiaries.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OUR
    COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a lodging focused real estate company. We are committed
    to maximizing stockholder value through investing in premium
    full-service hotels and, to a lesser extent, premium urban
    select-service hotels located throughout the United States. We
    believe we have been organized and have operated in a manner
    that allows us to qualify for taxation as a real estate
    investment trust, or REIT, under the Internal Revenue Code of
    1986, as amended, or the Code, commencing with our taxable year
    ended December&#160;31, 2005.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Structure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were formed as a Maryland corporation in May 2004. We conduct
    our business through a traditional umbrella partnership REIT, or
    UPREIT, in which our hotel properties are owned by DiamondRock
    Hospitality Limited Partnership, our operating partnership,
    limited partnerships, limited liability companies or other
    subsidiaries of our operating partnership. We are the sole
    general partner of our operating partnership and currently own,
    either directly or indirectly, all of the limited partnership
    units of our operating partnership. In the future, we may issue
    limited partnership units to third parties from time to time in
    connection with acquisitions of hotel properties. In order for
    the income from our hotel property investments to constitute
    &#147;rents from real properties&#148; for purposes of the gross
    income tests required for REIT qualification, the income we earn
    cannot be derived from the operation of any of our hotels.
    Therefore, we lease each of our hotel properties to a
    wholly-owned subsidiary of Bloodstone TRS, Inc., a taxable REIT
    subsidiary, or TRS, except for the Frenchman&#146;s
    Reef&#160;&#038; Morning Star Marriott Beach Resort, which is
    owned by a United States Virgin Islands corporation that we have
    elected to be treated as a TRS. As a result, we do not utilize a
    lease structure for that hotel. We refer to these subsidiaries
    of Bloodstone TRS, Inc. as our TRS lessees. We may form
    additional TRSs and TRS lessees in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Principal Office</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our corporate headquarters is located at 6903 Rockledge Drive,
    Suite&#160;800, Bethesda, MD 20817. Our telephone number is
    <FONT style="white-space: nowrap">(240)&#160;744-1150.</FONT>
    Our Internet address is
    <FONT style="white-space: nowrap">http://www.drhc.com.</FONT>
    The information found on or accessible through our website is
    not incorporated into and does not constitute a part of this
    prospectus or any other report or document we file with or
    furnish to the Securities and Exchange Commission, or SEC.
</DIV>

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement that we
    filed with the SEC utilizing a &#147;shelf&#148; registration
    process. This prospectus provides you with a general description
    of the offered securities. Each time we sell any of the offered
    securities we will provide a prospectus supplement and attach it
    to this prospectus. The prospectus supplement will contain
    specific information about the method and terms of that
    offering. The prospectus supplement may also add, update or
    change information contained in this prospectus. If there is any
    inconsistency between the information in this prospectus and a
    prospectus supplement, you should rely on the information in
    that prospectus supplement. You should read both this prospectus
    and the applicable prospectus supplement, together with any
    additional information described under the heading &#147;Where
    You Can Find More Information.&#148;
</DIV>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investment in any securities offered pursuant to this prospectus
    involves risks. You should carefully consider the risk factors
    in this prospectus and the risk factors incorporated by
    reference to our most recent Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    and our subsequent Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    and the other information contained in this prospectus, as
    updated by our subsequent filings under the Securities Exchange
    Act of 1934, as amended, or the Exchange Act, and the risk
    factors and other information contained in the applicable
    prospectus supplement before acquiring any of such securities.
    The occurrence of any of these risks might cause you to lose all
    or part of your investment in the offered securities. Please
    also refer to the section below entitled &#147;Forward-Looking
    Statements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The market price of our common shares could be volatile and
    could decline, resulting in a substantial or complete loss on
    our common stockholders&#146; investment.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price of our common stock has been highly volatile,
    and investors in our common stock may experience a decrease in
    the value of their shares, including decreases unrelated to our
    operating performance or prospects. In the past, securities
    class action litigation has often been instituted against
    companies following periods of volatility in their stock price.
    This type of litigation could result in substantial costs and
    divert our management&#146;s attention and resources.
</DIV>

<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We make statements in this prospectus that are forward-looking
    statements within the meaning of the federal securities laws. In
    particular, statements pertaining to our capital resources,
    portfolio performance and results of operations contain
    forward-looking statements. Likewise, all of our statements
    regarding anticipated market condition and demographics are
    forward-looking statements. You can identify forward-looking
    statements by the use of forward-looking terminology such as
    &#147;believe,&#148; &#147;expect,&#148; &#147;may,&#148;
    &#147;will,&#148; &#147;should,&#148; &#147;seek,&#148;
    &#147;approximately,&#148; &#147;intend,&#148; &#147;plan,&#148;
    &#147;estimate&#148; or &#147;anticipate&#148; or the negative
    of these words and phrases or similar words or phrases which are
    predictions of or indicate future events or trends and which do
    not relate solely to historical matters. You can also identify
    forward-looking statements by discussions of strategy, plans,
    market statistics or intentions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements involve numerous risks and
    uncertainties and you should not rely on them as predictions of
    future events. Forward-looking statements depend on assumptions,
    data or methods that may be incorrect or imprecise and we may
    not be able to realize them. The following factors, among
    others, could cause actual results and future events to differ
    materially from those set forth or contemplated in the
    forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financing risks, including the risk of over leverage and the
    corresponding risk of default on our mortgage loans and other
    debt and potential inability to refinance existing indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse economic or real estate developments in our markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    national and local economic, business, real estate and other
    market conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the degree and nature of our competition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased interest rates and operating costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in identifying properties to acquire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in completing acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    availability of and our ability to retain qualified personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to maintain our status as a REIT for federal income
    tax purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in our business or investment strategy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    availability, terms and deployment of capital;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general volatility of the capital markets and the market price
    of our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmental uncertainties and risks related to natural
    disasters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in real estate and zoning laws and increases in real
    property tax rates;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the other risk factors identified in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2008, as well as in
    our other reports we file from time to time with the SEC.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While forward-looking statements reflect our good faith beliefs,
    they are not guarantees of future performance. You should
    carefully consider this risk when you make an investment
    decision concerning our common stock. Except to the extent
    required by applicable law, we do not intend and disclaim any
    obligation to publicly update or revise any forward-looking
    statement or the &#147;Risk Factors&#148; to reflect changes in
    underlying assumptions or factors, of new information, data or
    methods, future events or other changes. For a further
    discussion of these and other factors that could impact our
    future results, performance or transactions, see the section
    above entitled &#147;Risk Factors.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise described in the applicable prospectus
    supplement to this prospectus used to offer specific securities,
    we intend to use the net proceeds from the sale of securities
    under this prospectus for general corporate purposes, which may
    include acquisitions of additional properties as suitable
    opportunities arise, the repayment of outstanding indebtedness,
    capital expenditures, the expansion, redevelopment
    <FONT style="white-space: nowrap">and/or</FONT>
    improvement of properties in our portfolio, working capital and
    other general purposes. Pending application of cash proceeds, we
    may use the net proceeds to temporarily reduce borrowings under
    our revolving credit facility or we will invest the net proceeds
    in interest-bearing accounts and short-term, interest-bearing
    securities which are consistent with our intention to qualify as
    a REIT for federal income tax purposes. Further details
    regarding the use of the net proceeds of a specific series or
    class of the securities will be set forth in the applicable
    prospectus supplement.
</DIV>

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RATIO OF
    EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
    DIVIDENDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the ratio of earnings to combined
    fixed charges and preferred dividends for the periods indicated
    below (in thousands).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>May&#160;6, 2004<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Quarter Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Inception) to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;19,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Earnings:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    (Loss) Income from Continuing Operations Before Income Taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (862
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,272
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,700
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Fixed Charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Amortization of Capitalized Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Capitalized Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (259
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (604
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (128
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    77,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,840
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Fixed Charges:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Interest Expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,404
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Portion of Rent Related to Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    706
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,432
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Capitalized Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    604
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Fixed Charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Preferred Stock Dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Combined Fixed Charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    54,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Ratio of Earnings to Combined Fixed Charges and Preferred
    Dividends</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.3
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Deficiency</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The ratio of earnings to combined fixed charges and preferred
    dividends was computed by dividing earnings by combined fixed
    charges and preferred dividends. For purposes of computing the
    ratio of earnings to combined fixed charges and preferred
    dividends, earnings have been calculated by adding fixed charges
    to income (loss) before income taxes, plus amortization of
    capitalized interest, minus interest capitalized. Fixed charges
    consist of interest costs, whether expensed or capitalized, and
    amortization of financing costs. Combined fixed charges and
    preferred dividends consist of fixed charges and preferred
    dividends paid or accrued for each respective period. However,
    we have never issued any preferred stock, and therefore we had
    no preferred dividends during any such period.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary of the terms of our capital stock does
    not purport to be complete and is subject to and qualified in
    its entirety by reference to Maryland law and our charter and
    bylaws, copies of which have been previously filed with the SEC.
    See &#147;Where You Can Find More Information.&#148;</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our charter provides that we may issue up to
    200,000,000&#160;shares of common stock, $.01&#160;par value per
    share, and 10,000,000&#160;shares of preferred stock,
    $.01&#160;par value per share. A majority of our board of
    directors may, without any action by the stockholders, amend our
    charter from time to time to increase or decrease the aggregate
    number of shares of stock or the number of shares of stock of
    any class or series that we have authority to issue. Under
    Maryland law, stockholders generally are not liable for the
    corporation&#146;s debts or obligations. As of August&#160;10,
    2009, there were 110,348,122&#160;shares of common stock
    outstanding and no shares of preferred stock outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Power to
    Issue Additional Shares of Common Stock and Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the power of our board of directors to issue
    additional authorized but unissued shares of common stock or
    preferred stock and to classify or reclassify unissued shares of
    common stock or preferred stock and thereafter to cause us to
    issue such classified or reclassified shares of stock will
    provide us with increased flexibility in structuring possible
    future financings and acquisitions and in meeting other needs of
    our company that might arise. The additional classes or series,
    as well as the common stock, will be available for issuance
    without further action by our stockholders, unless such action
    is required by applicable law or the rules of any stock exchange
    or automated quotation system on which our securities may be
    listed or traded. Although our board of directors has no
    intention at the present time of doing so, it could authorize us
    to issue a class or series of common stock or preferred stock
    that could have the effect of delaying, deferring or preventing
    a transaction or a change in control of our company that might
    involve a premium price for holders of our common stock or
    otherwise be in their best interests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restrictions
    on Ownership of Our Capital Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To assist us in complying with certain federal requirements
    applicable to REITs, among other purposes, we have adopted
    certain restrictions related to the ownership and transfer of
    our stock. See &#147;Restrictions on Ownership and
    Transfer.&#148; These ownership limitations could delay, defer
    or prevent a transaction or a change in control that might
    involve a premium price for the shares of our stock or otherwise
    be in the best interest of our stockholders.
</DIV>

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of our common stock currently outstanding are listed
    for trading on the NYSE. We intend to apply to the NYSE to list
    the additional shares of common stock to be sold pursuant to any
    prospectus supplement, and we anticipate that such shares will
    be so listed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of our common stock sets forth certain
    general terms and provisions of our common stock to which any
    prospectus supplement may relate, including a prospectus
    supplement providing that common stock will be issuable upon
    conversion or exchange of our preferred stock or upon the
    exercise of warrants to purchase our common stock. The
    statements below describing our common stock are in all respects
    subject to and qualified in their entirety by reference to the
    applicable provisions of our charter and bylaws and the Maryland
    General Corporate Law, or MGCL.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the preferential rights of any other class or series
    of stock and to the provisions of our charter regarding the
    restrictions on ownership and transfer of stock, holders of
    shares of our common stock are entitled to receive dividends on
    such stock if, as and when authorized by our board of directors
    and declared by us out of assets legally available therefor and
    to share ratably in the assets of our company legally available
    for distribution to our stockholders in the event of our
    liquidation, dissolution or winding up after payment of or
    adequate provision for all of our known debts and liabilities.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the provisions of our charter regarding the
    restrictions on ownership and transfer of stock, each
    outstanding share of our common stock entitles the holder to one
    vote on all matters submitted to a vote of stockholders,
    including the election of directors and, except as provided with
    respect to any other class or series of stock, the holders of
    such shares will possess the exclusive voting power. There is no
    cumulative voting in the election of directors, which means that
    the holders of a majority of the outstanding shares of our
    common stock can elect all of the directors then standing for
    election and the holders of the remaining shares will generally
    not be able to elect any directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of shares of our common stock have no preference,
    conversion, exchange, sinking fund or redemption rights and have
    no preemptive rights, which means they do not have the right to
    acquire any additional securities that we may issue at a
    subsequent date. Subject to the provisions of our charter
    regarding the restrictions on transfer of stock and to the power
    of our board of directors to create common stock with differing
    voting rights, shares of our common stock will have equal
    dividend, liquidation and other rights. Holders of shares of our
    common stock listed on a national securities exchange or any
    automated quotation system on which our securities may be listed
    or traded will not have appraisal rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our charter authorizes our board of directors to reclassify any
    unissued shares of common stock into other classes or series of
    classes of stock and to establish the number of shares in each
    class or series and to set the preferences, conversion and other
    rights, voting powers, restrictions, limitations as to dividends
    or other distributions, qualifications or terms or conditions of
    redemption for each such class or series.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar of our common stock is American
    Stock Transfer&#160;&#038; Trust&#160;Company.
</DIV>

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF PREFERRED STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following description sets forth certain general terms
    and provisions of the preferred stock to which any prospectus
    supplement may relate. This description and the description
    contained in any prospectus supplement are not complete and are
    in all respects subject to and qualified in their entirety by
    reference to our charter, the applicable articles supplementary
    that describe the terms of the related class or series of
    preferred stock and our bylaws, copies of which have been
    previously filed with the SEC. See &#147;Where You Can Find More
    Information.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors may authorize the issuance of up to
    10,000,000&#160;shares of preferred stock from time to time, in
    one or more classes or series. Our charter authorizes our board
    of directors to classify any unissued shares of preferred stock
    and to reclassify any previously classified but unissued shares
    of any class or series, as authorized by our board of directors.
    Prior to the issuance of shares of each class or series, our
    board of directors is required by the MGCL and our charter to
    set, subject to the provisions of our charter regarding the
    restrictions on ownership and transfer of stock, the terms,
    preferences, conversion or other rights, voting powers,
    restrictions, limitations as to dividends or other
    distributions, qualifications and terms and conditions of
    redemption for each such class or series. Thus, our board of
    directors could authorize the issuance of a class or series of
    preferred stock with terms and conditions which could have the
    effect of delaying, deferring or preventing a transaction or a
    change in control of our company that might involve a premium
    price for holders of our common stock or otherwise be in their
    best interests. In addition, our board of directors may afford
    the holders of any class or series of preferred stock, powers
    and rights, voting or otherwise, senior to the rights of holders
    of shares of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement relating to the class or series of
    preferred stock being offered thereby will describe the specific
    terms of such securities, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the title and stated value of such preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of such preferred stock offered, the
    liquidation preference per share and the offering price of such
    preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the dividend rate(s), period(s)
    <FONT style="white-space: nowrap">and/or</FONT>
    payment date(s) or method(s) of calculation thereof applicable
    to such preferred stock;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether dividends shall be cumulative or non-cumulative and, if
    cumulative, the date from which dividends on such preferred
    stock shall accumulate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the provisions for a sinking fund, if any, for such preferred
    stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the provisions for redemption, if applicable, of such preferred
    stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preemptive rights, if any;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the terms and conditions, if applicable, upon which such
    preferred stock will be convertible into our common stock,
    including the conversion price (or manner of calculation
    thereof) and conversion period;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any voting rights of such preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the relative ranking and preferences of such preferred stock as
    to dividend rights and rights upon our liquidation, dissolution
    or winding up;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any limitations on issuance of any class or series of preferred
    stock ranking senior to or on a parity with such class or series
    of preferred stock as to dividend rights and rights upon our
    liquidation, dissolution or winding up;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in addition to those limitations described below, any other
    limitations on actual and constructive ownership and
    restrictions on transfer;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other specific terms, preferences, rights, limitations or
    restrictions of such preferred stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the prospectus supplement relating to the class or
    series of preferred stock being offered thereby will describe
    any listing of such preferred stock on any securities exchange
    and will provide a discussion of any material United States
    federal income tax considerations applicable to such preferred
    stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rank</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specified in the prospectus supplement relating
    to a particular class or series of preferred stock, the
    preferred stock will, with respect to dividend rights and rights
    upon our liquidation, dissolution or winding up, rank:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    senior to all classes or series of our common stock, and to all
    equity securities ranking junior to such preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on a parity with all equity securities issued by us the terms of
    which specifically provide that such equity securities rank on a
    parity with the preferred stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    junior to all equity securities issued by us the terms of which
    specifically provide that such equity securities rank senior to
    the preferred stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of our preferred stock generally will not have any
    voting rights, except as otherwise required by law from time to
    time or as indicated in the applicable prospectus supplement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms and conditions, if any, upon which shares of any class
    or series of preferred stock are convertible into our common
    stock will be set forth in the applicable prospectus supplement
    relating thereto. Such terms will include the number of shares
    of common stock into which the preferred stock is convertible,
    the conversion price (or manner of calculation thereof), the
    conversion period, provisions as to whether conversion will be
    at the option of the holders of the preferred stock or at our
    option, the events requiring an adjustment of the conversion
    price and provisions affecting conversion in the event of the
    redemption of such preferred stock.
</DIV>
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    <BR>
    6
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restrictions
    on Ownership and Transfer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To assist us in complying with certain federal income tax
    requirements applicable to REITs, among other purposes, we have
    adopted certain restrictions relating to the ownership and
    transfer of our stock. The applicable prospectus supplement will
    specify any additional ownership limitation relating to such
    class or series. See &#147;Restrictions on Ownership and
    Transfer.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The registrar and transfer agent for a particular series of
    preferred stock will be set forth in the applicable prospectus
    supplement.
</DIV>

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF DEPOSITARY SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This section outlines some of the provisions of the deposit
    agreement, the depositary shares and the depositary receipts.
    This information may not be complete in all respects and is
    qualified entirely by reference to the relevant deposit
    agreement and depositary receipts with respect to the depositary
    shares relating to any particular series of preferred stock. The
    specific terms of any series of depositary shares will be
    described in the prospectus supplement. If so described in the
    prospectus supplement, the terms of that series of depositary
    shares may differ from the general description of terms
    presented below.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may, at our option, elect to offer depositary shares rather
    than full shares of preferred stock. Each depositary share will
    represent a fractional interest of a share of a particular
    series of preferred stock, as specified in the applicable
    prospectus supplement. Shares of preferred stock of each series
    represented by depositary shares will be deposited under a
    separate deposit agreement (each, a &#147;deposit
    agreement&#148;) among us, the depositary named therein and the
    holders from time to time of the depositary receipts. Subject to
    the terms of the applicable deposit agreement, each owner of a
    depositary receipt will be entitled, in proportion to the
    fractional interest of a share of a particular series of
    preferred stock represented by the depositary shares evidenced
    by such depositary receipt, to all the rights and preferences of
    the preferred stock represented by such depositary shares
    (including dividend, voting, conversion, redemption and
    liquidation rights).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary shares will be evidenced by depositary receipts
    issued pursuant to the applicable deposit agreement. Immediately
    following the issuance and delivery of the preferred stock by us
    to a preferred stock depositary, we will cause such preferred
    stock depositary to issue, on our behalf, the depositary
    receipts. Copies of the applicable form of deposit agreement and
    depositary receipt may be obtained from us upon request, and the
    statements made hereunder relating to the deposit agreement and
    the depositary receipts to be issued thereunder are summaries of
    certain anticipated provisions thereof and do not purport to be
    complete and are subject to, and qualified in their entirety by
    reference to, all of the provisions of the applicable deposit
    agreement and related depositary receipts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Deposit
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of the preferred stock underlying any depositary
    shares will be deposited under a separate deposit agreement
    between us and a bank or trust company acting as depositary with
    respect to the those shares of preferred stock. The depositary
    will have its principal office in the United States and have a
    combined capital and surplus of at least $50,000,000. The
    prospectus supplement relating to a series of depositary shares
    will specify the name and address of the depositary. Under the
    deposit agreement, each owner of a depositary share will be
    entitled, in proportion of its fractional interest in a share of
    the preferred stock underlying that depositary share, to all the
    rights and preferences of that preferred stock, including
    dividend, voting, redemption, conversion, exchange and
    liquidation rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depositary shares will be evidenced by one or more depositary
    receipts issued under the deposit agreement.
</DIV>
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    <BR>
    7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Other Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preferred stock depositary will distribute all cash
    dividends or other cash distributions received in respect of the
    preferred stock to the record holders of depositary receipts
    evidencing the related depositary shares in proportion to the
    number of such depositary receipts owned by such holders,
    subject to certain obligations of holders to file proofs,
    certificates and other information and to pay certain charges
    and expenses to the preferred stock depositary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of a distribution other than in cash, the preferred
    stock depositary will distribute property received by it to the
    record holders of depositary receipts entitled thereto, subject
    to certain obligations of holders to file proofs, certificates
    and other information and to pay certain charges and expenses to
    the preferred stock depositary, unless the preferred stock
    depositary determines that it is not feasible to make such
    distribution, in which case the preferred stock depositary may,
    with our approval, sell such property and distribute the net
    proceeds from such sale to such holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No distribution will be made in respect of any depositary share
    to the extent that it represents any preferred stock which has
    been converted into or exchanged for other securities before the
    record date for such distribution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Withdrawal
    of Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon surrender of the depositary receipts at the corporate trust
    office of the applicable preferred stock depositary (unless the
    related depositary shares have previously been called for
    redemption or converted into other securities), the holders
    thereof will be entitled to delivery at such office, to or upon
    such holder&#146;s order, of the number of whole or fractional
    shares of the preferred stock and any money or other property
    represented by the depositary shares evidenced by such
    depositary receipts. Holders of depositary receipts will be
    entitled to receive whole or fractional shares of the related
    preferred stock on the basis of the proportion of preferred
    stock represented by each depositary share as specified in the
    applicable prospectus supplement, but holders of such shares of
    preferred stock will not thereafter be entitled to receive
    depositary shares therefor. If the depositary receipts delivered
    by the holder evidence a number of depositary shares in excess
    of the number of depositary shares representing the number of
    shares of preferred stock to be withdrawn, the preferred stock
    depositary will deliver to such holder at the same time a new
    depositary receipt evidencing such excess number of depositary
    shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whenever we redeem shares of preferred stock held by the
    preferred stock depositary, the preferred stock depositary will
    redeem as of the same redemption date the number of depositary
    shares representing shares of the preferred stock so redeemed,
    provided we shall have paid in full to the preferred stock
    depositary the redemption price of the preferred stock to be
    redeemed plus an amount equal to any accrued and unpaid
    dividends thereon to the date fixed for redemption. The
    redemption price per depositary share will be equal to the
    corresponding proportion of the redemption price and any other
    amounts per share payable with respect to the preferred stock.
    If fewer than all the depositary shares are to be redeemed, the
    depositary shares to be redeemed will be selected pro rata (as
    nearly as may be practicable without creating fractional
    depositary shares) or by any other equitable method determined
    by us that will not result in a violation of the ownership
    restrictions in our charter applicable to owners of our capital
    stock. See &#147;Restrictions on Ownership and Transfer.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From and after the date fixed for redemption, all dividends in
    respect of the shares of preferred stock so called for
    redemption will cease to accrue, the depositary shares so called
    for redemption will no longer be deemed to be outstanding and
    all rights of the holders of the depositary receipts evidencing
    the depositary shares so called for redemption will cease,
    except the right to receive any moneys payable upon such
    redemption and any money or other property to which the holders
    of such depositary receipts were entitled upon such redemption
    and surrender thereof to the preferred stock depositary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    Preference</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of our liquidation, dissolution or winding up,
    whether voluntary or involuntary, the holders of each depositary
    receipt will be entitled to the fraction of the liquidation
    preference accorded each share of preferred stock
</DIV>
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    <BR>
    8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    represented by the depositary shares evidenced by such
    depositary receipt, as set forth in the applicable prospectus
    supplement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt of notice of any meeting at which the holders of
    the applicable preferred stock are entitled to vote, the
    preferred stock depositary will mail the information contained
    in such notice of meeting to the record holders of the
    depositary receipts evidencing the depositary shares which
    represent such preferred stock. Each record holder of depositary
    receipts evidencing depositary shares on the record date (which
    will be the same date as the record date for the preferred
    stock) will be entitled to instruct the preferred stock
    depositary as to the exercise of the voting rights pertaining to
    the amount of preferred stock represented by such holder&#146;s
    depositary shares. The preferred stock depositary will vote the
    amount of preferred stock represented by such depositary shares
    in accordance with such instructions, and we will agree to take
    all reasonable action which may be deemed necessary by the
    preferred stock depositary in order to enable the preferred
    stock depositary to do so. The preferred stock depositary will
    abstain from voting the amount of preferred stock represented by
    such depositary shares to the extent it does not receive
    specific instructions from the holders of depositary receipts
    evidencing such depositary shares. The preferred stock
    depositary will not be responsible for any failure to carry out
    any instruction to vote, or for the manner or effect of any such
    vote made, as long as any such action or non-action is in good
    faith and does not result from negligence or willful misconduct
    of the preferred stock depositary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary shares, as such, are not convertible into our
    common stock or any of our other securities or property.
    Nevertheless, if so specified in the applicable prospectus
    supplement relating to an offering of depositary shares, the
    depositary receipts may be surrendered by holders thereof to the
    preferred stock depositary with written instructions to the
    preferred stock depositary to instruct us to cause conversion of
    the preferred stock represented by the depositary shares
    evidenced by such depositary receipts into whole shares of
    common stock, other shares of our preferred stock or other
    shares of stock, and we have agreed that upon receipt of such
    instructions and any amounts payable in respect thereof, we will
    cause the conversion thereof utilizing the same procedures as
    those provided for delivery of preferred stock to effect such
    conversion. If the depositary shares evidenced by a depositary
    receipt are to be converted in part only, a new depositary
    receipt or receipts will be issued for any depositary shares not
    to be converted. No fractional shares of common stock will be
    issued upon conversion, and if such conversion would result in a
    fractional share being issued, an amount will be paid in cash by
    us equal to the value of the fractional interest based upon the
    closing price of the common stock on the last business day prior
    to the conversion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    and Termination of Deposit Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The form of depositary receipt evidencing the depositary shares
    which represent the preferred stock and any provision of the
    deposit agreement may at any time be amended by agreement
    between us and the preferred stock depositary. However, any
    amendment that materially and adversely alters the rights of the
    holders of depositary receipts or that would be materially and
    adversely inconsistent with the rights granted to the holders of
    the related preferred stock will not be effective unless such
    amendment has been approved by the existing holders of a
    majority of the applicable depositary shares evidenced by the
    applicable depositary receipts then outstanding. No amendment
    shall impair the right, subject to certain exceptions in the
    deposit agreement, of any holder of depositary receipts to
    surrender any depositary receipt with instructions to deliver to
    the holder the related preferred stock and all money and other
    property, if any, represented thereby, except in order to comply
    with law. Every holder of an outstanding depositary receipt at
    the time any such amendment becomes effective shall be deemed,
    by continuing to hold such depositary receipt, to consent and
    agree to such amendment and to be bound by the deposit agreement
    as amended thereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The deposit agreement may be terminated by us upon not less than
    30&#160;days&#146; prior written notice to the preferred stock
    depositary if (i)&#160;such termination is necessary to preserve
    our status as a REIT or (ii)&#160;a majority of the holders of
    each series of preferred stock affected by such termination
    consent to such termination, whereupon the preferred stock
    depositary will deliver or make available to each holder of
    depositary receipts, upon surrender of the depositary receipts
    held by such holder, such number of whole or fractional shares
    of preferred stock as are
</DIV>
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    <BR>
    9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    represented by the depositary shares evidenced by such
    depositary receipts together with any other property held by the
    preferred stock depositary with respect to such depositary
    receipts. In addition, the deposit agreement will automatically
    terminate if (i)&#160;all outstanding depositary shares
    thereunder shall have been redeemed, (ii)&#160;there shall have
    been a final distribution in respect of the related preferred
    stock in connection with our liquidation, dissolution or winding
    up and such distribution shall have been distributed to the
    holders of depositary receipts evidencing the depositary shares
    representing such preferred stock or (iii)&#160;each share of
    the related preferred stock shall have been converted into our
    securities not so represented by depositary shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Charges
    of Preferred Stock Depositary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay the fees and expenses of the preferred stock
    depositary in connection with the performance of its duties
    under the deposit agreement. Holders of depositary receipts will
    be required to pay any other transfer and other taxes and
    governmental charges and any other charges expressly provided
    for in the deposit agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resignation
    and Removal of Depositary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preferred stock depositary may resign at any time by
    delivering to us notice of its election to do so, and we may at
    any time remove the preferred stock depositary, any such
    resignation or removal to take effect upon the appointment of a
    successor preferred stock depositary. A successor preferred
    stock depositary must be appointed within 60&#160;days after
    delivery of the notice of resignation or removal and must be a
    bank or trust company having its principal office in the United
    States and having a combined capital and surplus of at least
    $50,000,000.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Miscellaneous</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preferred stock depositary will forward to holders of
    depositary receipts any reports and communications that we send
    to the preferred stock depositary with respect to the related
    preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither the preferred stock depositary nor our company will be
    liable if it is prevented from or delayed in, by law or any
    circumstances beyond its control, performing its obligations
    under the deposit agreement. The obligations of our company and
    the preferred stock depositary under the deposit agreement will
    be limited to performing their duties thereunder in good faith,
    and our company and the preferred stock depositary will not be
    obligated to prosecute or defend any legal proceeding in respect
    of any depositary receipts, depositary shares or shares of
    preferred stock represented thereby unless satisfactory
    indemnity is furnished. We and the preferred stock depositary
    may rely on written advice of counsel or accountants, or
    information provided by persons presenting shares of preferred
    stock represented thereby for deposit, holders of depositary
    receipts or other persons believed in good faith to be competent
    to give such information, and on documents believed in good
    faith to be genuine and signed by a proper party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the preferred stock depositary shall receive
    conflicting claims, requests or instructions from any holders of
    depositary receipts, on the one hand, and us, on the other hand,
    the preferred stock depositary shall be entitled to act on such
    claims, requests or instructions received from us.
</DIV>

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF WARRANTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may issue warrants for the purchase of our common stock,
    preferred stock or depositary shares representing preferred
    stock. We may issue warrants separately or together with any
    other securities offered by means of this prospectus, and the
    warrants may be attached to or separate from such securities.
    Each series of warrants will be issued under a separate warrant
    agreement (each, a &#147;warrant agreement&#148;) to be entered
    into between us and a warrant agent specified therein. The
    warrant agent will act solely as our agent in connection with
    the warrants of such series and will not assume any obligation
    or relationship of agency or trust for or with any holders or
    beneficial owners of warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The applicable prospectus supplement will describe the following
    information, where applicable, regarding the warrants in respect
    of which this prospectus is being delivered:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the title and issuer of such warrants;
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the aggregate number of such warrants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the price or prices at which such warrants will be issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the currencies in which the price or prices of such warrants may
    be payable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation, amount and terms of the securities purchasable
    upon exercise of such warrants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and terms of the other securities with which
    such warrants are issued and the number of such warrants issued
    with each such security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if applicable, the date on and after which such warrants and the
    securities purchasable upon exercise of such warrants will be
    separately transferable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the price or prices at which and currency or currencies in which
    the securities purchasable upon exercise of such warrants may be
    purchased;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date on which the right to exercise such warrants shall
    commence and the date on which such right shall expire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the minimum or maximum amount of such warrants which may be
    exercised at any one time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    information with respect to book-entry procedures, if any;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any anti-dilution protections;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a discussion of material federal income tax
    considerations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other material terms of such warrants, including terms,
    procedures and limitations relating to the exchange and exercise
    of such warrants.
</TD>
</TR>

</TABLE>

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RESTRICTIONS
    ON OWNERSHIP AND TRANSFER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary with respect to restrictions on
    ownership and transfer of our capital stock sets forth certain
    general terms and provisions of our charter to which any
    prospectus supplement may relate. This summary does not purport
    to be complete and is subject to and qualified in its entirety
    by reference to our charter, including any articles
    supplementary relating to any issuance of preferred stock
    pursuant to this prospectus. A copy of our charter is filed with
    the SEC. Any amendment or supplement to our charter relating to
    an issuance of securities pursuant to this prospectus shall be
    filed with the SEC and shall be incorporated by reference as an
    exhibit to the applicable prospectus supplement. See &#147;Where
    You Can Find More Information.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order for us to qualify for and maintain our status as a REIT
    under the Code, our shares of stock must be beneficially owned
    by 100 or more persons during at least 335&#160;days of a
    taxable year of twelve months or during a proportionate part of
    a shorter taxable year. Also, not more than 50% of the value of
    the outstanding shares of stock may be owned, directly or
    indirectly, by five or fewer individuals (as defined in the Code
    to include certain entities such as qualified pension plans)
    during the last half of a taxable year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order for us to qualify as a REIT under the Code, our
    charter, subject to certain exceptions, contains restrictions on
    the number of shares of our capital stock that a person may
    beneficially own. Our charter provides that, subject to some
    exceptions, no person may beneficially own, or be deemed to own
    by virtue of the attribution provisions of the Code, more than
    9.8% (in value or in number of shares, whichever is more
    restrictive) of our common stock or of the value of the
    aggregate outstanding shares of our capital stock (the
    &#147;Ownership Limit&#148;), except that certain &#147;look
    through entities,&#148; such as mutual funds, may beneficially
    own up to 15% (in value or in number of shares, whichever is
    more restrictive) of our common stock or of the value of the
    aggregate outstanding shares of our capital stock (the
    &#147;Look-Through Ownership Limit&#148;). Our board of
    directors has waived this ownership limitation for certain
    investors in the past. Our bylaws provide that our board of
    directors will exempt any person from the Ownership Limit and
    the Look-Through Ownership Limit, provided that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such person shall not beneficially own shares of capital stock
    that would cause an &#147;individual&#148; (within the meaning
    of Section&#160;542(a)(2) of the Code, but not including a
    &#147;qualified trust&#148; (as defined in Code
</TD>
</TR>

</TABLE>
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    <BR>
    11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Section&#160;856(h)(3)(E)) subject to the look-through rule of
    Code Section 856(h)(3)(A)(i)) to beneficially own
    (i)&#160;shares of capital stock in excess of 9.8% in value of
    the aggregate of the outstanding shares of our stock or
    (ii)&#160;in excess of 9.8% (in value or in number of shares,
    whichever is more restrictive) of the aggregate of the
    outstanding shares of our common stock;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the board of directors obtains such representations,
    undertakings and agreements from such person as are reasonably
    necessary to ascertain that such person&#146;s ownership of such
    shares of capital stock will not now or in the future jeopardize
    our ability to qualify as a REIT under the Code;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such person agrees that any violation or attempted violation of
    any of the foregoing restrictions or any such other restrictions
    that may be imposed by our board of directors will result in the
    automatic transfer of the shares of stock causing such violation
    to the Trust (as defined below).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amendment, alteration or repeal of this provision of our
    bylaws shall be valid only if approved by the affirmative vote
    of a majority of votes cast by stockholders entitled to vote
    generally in the election of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our charter also prohibits any person from (a)&#160;owning
    shares of our capital stock if such ownership would result in
    our being &#147;closely held&#148; within the meaning of
    Section&#160;856(h) of the Code, (b)&#160;transferring shares of
    our capital stock if such transfer would result in our capital
    stock being owned by fewer than 100&#160;persons,
    (c)&#160;owning shares of our capital stock if such ownership
    would cause any of our income that would otherwise qualify as
    rents from real property to fail to qualify as such, including
    as a result of any of our hotel management companies failing to
    qualify as &#147;eligible independent contractors&#148; under
    the REIT rules and (d)&#160;owning shares of our capital stock
    if such ownership would result in our failing to qualify as a
    REIT for federal income tax purposes. Any person who acquires or
    attempts or intends to acquire beneficial ownership of shares of
    our capital stock that will or may violate any of these
    restrictions on transferability and ownership will be required
    to give notice immediately to us and provide us with such other
    information as we may request in order to determine the effect
    of such transfer on our status as a REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of directors may require a ruling from the Internal
    Revenue Service or an opinion of counsel, in either case in form
    and substance satisfactory to the board of directors in its sole
    discretion, in order to determine or ensure our status as a
    REIT. The foregoing restrictions on transferability and
    ownership will not apply if our board of directors determines
    that it is no longer in the best interests of the company to
    attempt to qualify, or continue to qualify, as a REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any transfer of shares of our capital stock or other event
    occurs which, if effective, would result in any person
    beneficially or constructively owning shares of our capital
    stock in excess or in violation of the above transfer or
    ownership limitations (a &#147;Prohibited Owner&#148;), then
    that number of shares of our capital stock the beneficial or
    constructive ownership of which otherwise would cause such
    person to violate such limitations (rounded to the nearest whole
    share) shall be automatically transferred to a trust (the
    &#147;Trust&#148;) for the exclusive benefit of one or more
    charitable beneficiaries (the &#147;Charitable
    Beneficiary&#148;), and the Prohibited Owner shall not acquire
    any rights in such shares. Such automatic transfer shall be
    deemed to be effective as of the close of business on the
    Business Day (as defined in our charter) prior to the date of
    such violative transfer. Shares of stock held in the Trust shall
    be issued and outstanding shares of our capital stock. The
    Prohibited Owner shall not benefit economically from ownership
    of any shares of stock held in the Trust, shall have no rights
    to dividends or other distributions and shall not possess any
    rights to vote or other rights attributable to the shares of
    stock held in the Trust. The trustee of the Trust (the
    &#147;Trustee&#148;) shall have all voting rights and rights to
    dividends or other distributions with respect to shares of stock
    held in the Trust, which rights shall be exercised for the
    exclusive benefit of the Charitable Beneficiary. Any dividend or
    other distribution paid prior to the discovery by us that shares
    of stock have been transferred to the Trustee shall be paid by
    the recipient of such dividend or distribution to the Trustee
    upon demand, and any dividend or other distribution authorized
    but unpaid shall be paid when due to the Trustee. Any dividend
    or distribution so paid to the Trustee shall be held in trust
    for the Charitable Beneficiary. The Prohibited Owner shall have
    no voting rights with respect to shares of stock held in the
    Trust and, subject to Maryland law, effective as of the date
    that such shares of stock have been transferred to the Trust,
    the Trustee shall have the authority (at the Trustee&#146;s sole
    discretion) (i)&#160;to rescind as void any vote cast by a
    Prohibited Owner prior to the discovery by us that such shares
    have been transferred to the Trust and (ii)&#160;to recast such
    vote in accordance with the desires of the Trustee acting for
</DIV>
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    <BR>
    12
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    the benefit of the Charitable Beneficiary. However, if we have
    already taken irreversible corporate action, then the Trustee
    shall not have the authority to rescind and recast such vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 20&#160;days of receiving notice from us that shares of
    our capital stock have been transferred to the Trust, the
    Trustee shall sell the shares of stock held in the Trust to a
    person, designated by the Trustee, whose ownership of the shares
    will not violate the ownership limitations set forth in our
    charter. Upon such sale, the interest of the Charitable
    Beneficiary in the shares sold shall terminate and the Trustee
    shall distribute the net proceeds of the sale to the Prohibited
    Owner and to the Charitable Beneficiary as follows. The
    Prohibited Owner shall receive the lesser of (i)&#160;the price
    paid by the Prohibited Owner for the shares or, if the
    Prohibited Owner did not give value for the shares in connection
    with the event causing the shares to be held in the Trust (e.g.,
    a gift, devise or other such transaction), the Market Price (as
    defined in the charter) of such shares on the day of the event
    causing the shares to be held in the Trust and (ii)&#160;the
    price per share received by the Trustee from the sale or other
    disposition of the shares held in the Trust. Any net sale
    proceeds in excess of the amount payable to the Prohibited Owner
    shall be paid immediately to the Charitable Beneficiary. If,
    prior to the discovery by us that shares of stock have been
    transferred to the Trust, such shares are sold by a Prohibited
    Owner, then (i)&#160;such shares shall be deemed to have been
    sold on behalf of the Trust and (ii)&#160;to the extent that the
    Prohibited Owner received an amount for such shares that exceeds
    the amount that such Prohibited Owner was entitled to receive
    pursuant to the aforementioned requirement, such excess shall be
    paid to the Trustee upon demand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, shares of our capital stock held in the Trust shall
    be deemed to have been offered for sale to us, or our designee,
    at a price per share equal to the lesser of (i)&#160;the price
    per share in the transaction that resulted in such transfer to
    the Trust (or, in the case of a devise or gift, the Market Price
    at the time of such devise or gift) and (ii)&#160;the Market
    Price on the date we, or our designee, accept such offer. We
    shall have the right to accept such offer until the Trustee has
    sold the shares of stock held in the Trust. Upon such a sale to
    us, the interest of the Charitable Beneficiary in the shares
    sold shall terminate and the Trustee shall distribute the net
    proceeds of the sale to the Prohibited Owner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, until the completion of our initial public
    offering, at which time our common stock became
    &#147;publicly-offered securities&#148; for purposes of certain
    regulations promulgated under ERISA by the U.S.&#160;Department
    of Labor, or the Plan Assets Regulation, our charter limited
    equity participation by &#147;benefit plan investors&#148; to
    less than 25% in the aggregate so that such participation in any
    class of our equity securities by such &#147;benefit plan
    investors&#148; would not be deemed &#147;significant.&#148; For
    such purposes, the terms &#147;benefit plan investors&#148; and
    &#147;significant&#148; are determined by reference to the Plan
    Assets Regulation. We believe that, under the Plan Assets
    Regulation, our common stock should be considered
    &#147;publicly-offered securities&#148; after our initial public
    offering and therefore this 25% limitation is no longer
    applicable to our common stock. However, &#147;benefit plan
    investors&#148; are prohibited from owning any class of our
    capital stock that does not qualify as &#147;publicly-offered
    securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All certificates representing shares of common stock and
    preferred stock, if any, will bear a legend referring to the
    restrictions described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each stockholder shall provide to us such information as we may
    request, in good faith, in order to determine our status as a
    REIT and to comply with the requirements of any taxing authority
    or governmental authority or to determine such compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These ownership limits could delay, defer or prevent a
    transaction or a change in control of our company that might
    involve a premium price for the common stock or otherwise be in
    the best interests of our stockholders.
</DIV>

<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BOOK-ENTRY
    SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may issue the securities offered by means of this prospectus
    in whole or in part in book-entry form, meaning that beneficial
    owners of the securities will not receive certificates
    representing their ownership interests in the securities, except
    in the event the book-entry system for the securities is
    discontinued. If securities are issued in book-entry form, they
    will be evidenced by one or more global securities that will be
    deposited with, or on behalf of, a depositary identified in the
    applicable prospectus supplement relating to the securities.
    Unless otherwise mentioned in the prospectus supplement, the
    Depository Trust&#160;Company will serve as depository. Unless
    and until it is exchanged in whole or in part for the individual
    securities represented thereby, a global security may not be
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    transferred except as a whole by the depository for the global
    security to a nominee of such depository or by a nominee of such
    depository to such depository or another nominee of such
    depository or by the depository or any nominee of such
    depository to a successor depository or a nominee of such
    successor. Global securities may be issued in either registered
    or bearer form and in either temporary or permanent form. The
    specific terms of the depositary arrangement with respect to a
    class or series of securities that differ from the terms
    described here will be described in the applicable prospectus
    supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated in the applicable prospectus
    supplement, we anticipate that the following provisions will
    apply to depository arrangements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the issuance of a global security, the depository for the
    global security or its nominee will credit on its book-entry
    registration and transfer system the respective principal
    amounts of the individual securities represented by such global
    security to the accounts of persons that have accounts with such
    depository, who are called &#147;participants.&#148; Such
    accounts shall be designated by the underwriters, dealers or
    agents with respect to the securities or by us if the securities
    are offered and sold directly by us. Ownership of beneficial
    interests in a global security will be limited to the
    depository&#146;s participants or persons that may hold
    interests through such participants. Ownership of beneficial
    interests in the global security will be shown on, and the
    transfer of that ownership will be effected only through,
    records maintained by the applicable depository or its nominee
    (with respect to beneficial interests of participants) and
    records of the participants (with respect to beneficial
    interests of persons who hold through participants). The laws of
    some states require that certain purchasers of securities take
    physical delivery of such securities in definitive form. Such
    limits and laws may impair the ability to own, pledge or
    transfer beneficial interest in a global security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as the depository for a global security or its nominee
    is the registered owner of such global security, such depository
    or nominee, as the case may be, will be considered the sole
    owner or holder of the securities represented by such global
    security for all purposes under the applicable instrument
    defining the rights of a holder of the securities. Except as
    provided below or in the applicable prospectus supplement,
    owners of beneficial interest in a global security will not be
    entitled to have any of the individual securities of the series
    represented by such global security registered in their names,
    will not receive or be entitled to receive physical delivery of
    any such securities in definitive form and will not be
    considered the owners or holders thereof under the applicable
    instrument defining the rights of the holders of the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payments of amounts payable with respect to individual
    securities represented by a global security registered in the
    name of a depository or its nominee will be made to the
    depository or its nominee, as the case may be, as the registered
    owner of the global security representing such securities. None
    of us, our officers and directors or any trustee, paying agent
    or security registrar for an individual series of securities
    will have any responsibility or liability for any aspect of the
    records relating to or payments made on account of beneficial
    ownership interests in the global security for such securities
    or for maintaining, supervising or reviewing any records
    relating to such beneficial ownership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that the depository for a series of securities offered
    by means of this prospectus or its nominee, upon receipt of any
    payment of principal, premium, interest, dividend or other
    amount in respect of a permanent global security representing
    any of such securities, will immediately credit its
    participants&#146; accounts with payments in amounts
    proportionate to their respective beneficial interests in the
    principal amount of such global security for such securities as
    shown on the records of such depository or its nominee. We also
    expect that payments by participants to owners of beneficial
    interests in such global security held through such participants
    will be governed by standing instructions and customary
    practices, as is the case with securities held for the account
    of customers in bearer form or registered in &#147;street
    name.&#148; Such payments will be the responsibility of such
    participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a depository for a series of securities is at any time
    unwilling, unable or ineligible to continue as depository and a
    successor depository is not appointed by us within 90&#160;days,
    we will issue individual securities of such series in exchange
    for the global security representing such series of securities.
    In addition, we may, at any time and in our sole discretion,
    subject to any limitations described in the applicable
    prospectus supplement relating to such securities, determine not
    to have any securities of such series represented by one or more
    global securities and, in such event, will issue individual
    securities of such series in exchange for the global security or
    securities representing such series of securities.
</DIV>
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<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CERTAIN MATERIAL PROVISIONS<BR>
    OF MARYLAND LAW, OUR CHARTER AND OUR BYLAWS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following is a summary of certain provisions of our
    charter and bylaws and Maryland law, does not purport to be
    complete and is subject to and qualified in its entirety by
    reference to Maryland law and our charter and bylaws, copies of
    which have been previously filed with the SEC. See &#147;Where
    You Can Find More Information.&#148;</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Number,
    Election and Removal of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our charter and bylaws provide that the number of directors may
    be set only by our board of directors, but may never be less
    than the minimum number required by the MGCL. Our bylaws provide
    that a plurality of all the votes cast at a meeting of
    stockholders duly called and at which a quorum is present shall
    be sufficient to elect a director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have elected to be subject to the provision of Subtitle 8 of
    Title&#160;3 of the MGCL regarding the filling of vacancies on
    the board of directors. Accordingly, except as may be provided
    by the board of directors in setting the terms of any class or
    series of preferred stock, any and all vacancies on the board of
    directors may be filled only by the affirmative vote of a
    majority of the remaining directors in office, even if the
    remaining directors do not constitute a quorum, and any director
    elected to fill a vacancy shall serve for the remainder of the
    full term of the directorship in which such vacancy occurred and
    until a successor is elected and qualified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The charter provides that a director may be removed with or
    without cause by the affirmative vote of holders of at least
    two-thirds of the votes entitled to be cast in the election of
    directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Charter
    Amendments and Extraordinary Corporate Actions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the MGCL, a Maryland corporation generally cannot
    dissolve, amend its charter, merge, sell all or substantially
    all of its assets, engage in a share exchange or engage in
    similar transactions outside the ordinary course of business
    unless approved by the affirmative vote of stockholders entitled
    to cast at least two-thirds of the votes entitled to be cast on
    the matter unless a lesser percentage (but not less than a
    majority of all of the votes entitled to be cast on the matter)
    is set forth in the corporation&#146;s charter. Our charter
    generally provides that, if such amendment or action is declared
    advisable by the board of directors and approved by at least 75%
    of the continuing directors (as defined in the charter), such
    amendment or action may be approved by the affirmative vote of
    stockholders entitled to cast at least a majority of the votes
    entitled to be cast on the matter. If such amendment or action
    is declared advisable by the board of directors, but does not
    receive the continuing director approval referred to above, such
    amendment or action must be approved by stockholders entitled to
    cast at least two-thirds of the votes entitled to be cast on the
    matter.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    of Bylaws</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws provide that, with the exception of provisions in our
    bylaws relating to the business combination and control share
    provisions of the MGCL and the waiver of the ownership
    limitations set forth in our charter, which provisions may not
    be amended without stockholder approval, our board of directors
    has the exclusive power to adopt, alter or repeal any provision
    of the bylaws and to make new bylaws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    Combinations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the MGCL, certain &#147;business combinations&#148;
    (including a merger, consolidation, share exchange or, in
    certain circumstances, an asset transfer or issuance or
    reclassification of equity securities) between a Maryland
    corporation and any person who beneficially owns ten percent or
    more of the voting power of the corporation&#146;s shares or an
    affiliate or associate of the corporation who, at any time
    within the two-year period prior to the date in question, was
    the beneficial owner of ten percent or more of the voting power
    of the then-outstanding voting stock of the corporation (an
    &#147;Interested Stockholder&#148;) or an affiliate of such an
    Interested Stockholder are prohibited for five years after the
    most recent date on which such Interested Stockholder becomes an
    Interested Stockholder. Thereafter, any such business
    combination must be recommended by the board of directors of
    such corporation and approved by the affirmative vote of at
    least (a)&#160;80% of the votes entitled to be cast by holders
    of outstanding shares of voting stock of the corporation and
    (b)&#160;two-thirds of the votes entitled to be cast by holders
    of voting stock
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of the corporation other than shares held by the Interested
    Stockholder with whom (or with whose affiliate) the business
    combination is to be effected or held by an affiliate or
    associate of the Interested Stockholder, unless, among other
    conditions, the corporation&#146;s common stockholders receive a
    minimum price (as defined in the MGCL) for their shares and the
    consideration is received in cash or in the same form as
    previously paid by the Interested Stockholder for its shares.
    These provisions of the MGCL do not apply, however, to business
    combinations that are approved or exempted by the board of
    directors of the corporation prior to the time that the
    Interested Stockholder becomes an Interested Stockholder. A
    person is not an Interested Stockholder under the statute if the
    board of directors approved in advance the transaction by which
    he otherwise would have become an Interested Stockholder.
    However, in approving a transaction, the board of directors may
    provide that its approval is subject to compliance with any
    terms and conditions determined by the board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has adopted a resolution opting out of
    the business combination provisions of the MGCL. This resolution
    provides that any alteration or repeal of the resolution by the
    board of directors shall be valid only if approved, at a meeting
    duly called, by the affirmative vote of a majority of votes cast
    by stockholders entitled to vote generally for directors and the
    affirmative vote of a majority of continuing directors. Our
    bylaws provide that any such alteration or repeal of the
    resolution will be valid only if approved, at a meeting duly
    called, by the affirmative vote of a majority of votes cast by
    stockholders entitled to vote generally for directors and the
    affirmative vote of a majority of continuing directors. If this
    resolution is repealed, the statute may discourage others from
    trying to acquire control of us and increase the difficulty of
    consummating any offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Control
    Share Acquisitions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The MGCL provides that &#147;control shares&#148; of a Maryland
    corporation acquired in a &#147;control share acquisition&#148;
    have no voting rights except to the extent approved by a vote of
    two-thirds of the votes entitled to be cast on the matter,
    excluding shares of stock owned by the acquiror, by officers or
    by directors who are employees of the corporation. &#147;Control
    Shares&#148; are voting shares of stock which, if aggregated
    with all other such shares of stock owned by the acquiror or in
    respect of which the acquiror is able to exercise or direct the
    exercise of voting power (except solely by virtue of a revocable
    proxy), would entitle the acquiror to exercise voting power in
    electing directors within one of the following ranges of voting
    power: (i)&#160;one-tenth or more but less than one-third,
    (ii)&#160;one-third or more but less than a majority, or
    (iii)&#160;a majority or more of all voting power. Control
    shares do not include shares the acquiring person is then
    entitled to vote as a result of having previously obtained
    stockholder approval. A &#147;control share acquisition&#148;
    means the acquisition of control shares, subject to certain
    exceptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A person who has made or proposes to make a control share
    acquisition, upon satisfaction of certain conditions (including
    an undertaking to pay expenses), may compel the board of
    directors of the corporation to call a special meeting of
    stockholders to be held within 50&#160;days of demand to
    consider the voting rights of the shares. If no request for a
    meeting is made, the corporation may itself present the question
    at any stockholders meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If voting rights are not approved at the meeting or if the
    acquiring person does not deliver an acquiring person statement
    as required by the statute, then, subject to certain conditions
    and limitations, the corporation may redeem any or all of the
    control shares (except those for which voting rights have
    previously been approved) for fair value determined, without
    regard to the absence of voting rights for the control shares,
    as of the date of the last control share acquisition by the
    acquiror or of any meeting of stockholders at which the voting
    rights of such shares are considered and not approved. If voting
    rights for control shares are approved at a stockholders meeting
    and the acquiror becomes entitled to vote a majority of the
    shares entitled to vote, all other stockholders may exercise
    appraisal rights. The fair value of the shares as determined for
    purposes of such appraisal rights may not be less than the
    highest price per share paid by the acquiror in the control
    share acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The control share acquisition statute does not apply (a)&#160;to
    shares acquired in a merger, consolidation or share exchange if
    the corporation is a party to the transaction or (b)&#160;to
    acquisitions approved or exempted by the charter or bylaws of
    the corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws contain a provision exempting from the control share
    acquisition statute any and all acquisitions by any person of
    shares of our capital stock. Our board of directors has the
    exclusive power to amend, alter or repeal this provision of our
    bylaws. There can be no assurance that such provision will not
    be amended or eliminated at any time in the future.
</DIV>
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    <BR>
    16
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    <B><FONT style="font-family: 'Times New Roman', Times">Subtitle
    8</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subtitle 8 of Title&#160;3 of the MGCL permits a Maryland
    corporation with a class of equity securities registered under
    the Exchange Act and at least three independent directors to
    elect to be subject, by provision in its charter or bylaws or a
    resolution of its board of directors and notwithstanding any
    contrary provision in the charter or bylaws, to any or all of
    five provisions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a classified board,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a two-thirds vote requirement for removing a director,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a requirement that the number of directors be fixed only by vote
    of the directors,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a requirement that a vacancy on the board be filled only by the
    remaining directors and for the remainder of the full term of
    the class of directors in which the vacancy occurred,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a majority requirement for the calling of a special meeting of
    stockholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through provisions in our charter and bylaws unrelated to
    Subtitle 8, we already (a)&#160;require a two-thirds vote for
    the removal of any director from the board and (b)&#160;vest in
    the board the exclusive power to fix the number of
    directorships. Additionally, our charter provides, under
    <FONT style="white-space: nowrap">Section&#160;3-802(b)</FONT>
    of the MGCL, that, except as may be provided by the board of
    directors in setting the terms of any class or series of stock,
    any and all vacancies on the board of directors may be filled
    only by the affirmative vote of a majority of the remaining
    directors in office, even if the remaining directors do not
    constitute a quorum, and any director elected to fill a vacancy
    shall serve for the remainder of the full term of the
    directorship in which such vacancy occurred.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Advance
    Notice of Director Nominations and New Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws provide that (a)&#160;with respect to an annual
    meeting of stockholders, nominations of persons for election to
    the board of directors and the proposal of business to be
    considered by stockholders may be made only (i)&#160;pursuant to
    our notice of the meeting, (ii)&#160;by the board of directors
    or (iii)&#160;by a stockholder who is entitled to vote at the
    meeting and has complied with the advance notice procedures set
    forth in the bylaws and (b)&#160;with respect to special
    meetings of stockholders, only the business specified in our
    notice of meeting may be brought before the meeting of
    stockholders and nominations of persons for election to the
    board of directors may be made only (i)&#160;pursuant to our
    notice of the meeting, (ii)&#160;by the board of directors or
    (iii)&#160;provided that the board of directors has determined
    that directors shall be elected at such meeting, by a
    stockholder who is entitled to vote at the meeting and has
    complied with the advance notice provisions set forth in the
    bylaws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-takeover
    Effect of Certain Provisions of Maryland Law and of the Charter
    and Bylaws</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the applicable board resolution is repealed, the business
    combination provisions and, if the applicable provision in the
    bylaws is rescinded, the control share acquisition provisions of
    the MGCL, the provisions of the charter relating to removal of
    directors and the advance notice provisions of the bylaws, among
    others, could delay, defer or prevent a transaction or a change
    in control of our company that might involve a premium price for
    holders of our common stock or otherwise be in their best
    interests.
</DIV>
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    <BR>
    17
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<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF THE PARTNERSHIP AGREEMENT OF<BR>
    DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following is a summary of the material terms of the
    agreement of limited partnership of our operating partnership,
    which we refer to as the Partnership Agreement. This summary
    does not purport to be complete and is subject to and qualified
    in its entirety by reference to the Partnership Agreement, a
    copy of which we have previously filed with the SEC. See
    &#147;Where You Can Find More Information.&#148; Because, and so
    long as, we own all of the partnership interests in our
    operating partnership, we will be able to amend the Partnership
    Agreement of our operating partnership and we may, from time to
    time, modify the agreement so that it varies from the
    description set forth herein.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    of the Operating Partnership</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DiamondRock Hospitality Limited Partnership is a Delaware
    limited partnership that was formed on May&#160;26, 2004. As
    sole general partner of the operating partnership, we exercise
    exclusive and complete responsibility and discretion in our
    operating partnership&#146;s
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management and control. We can cause our operating partnership
    to enter into certain major transactions including acquisitions,
    developments and dispositions of properties and refinancings of
    existing indebtedness. Currently, our wholly-owned subsidiary,
    DiamondRock Hospitality, LLC is the only limited partner of our
    operating partnership. Generally, limited partners may not
    transact business for, or participate in the management
    activities or decisions of, our operating partnership, except as
    provided in the Partnership Agreement and as required by
    applicable law. Certain restrictions under the Partnership
    Agreement restrict our ability to engage in a business
    combination as more fully described in
    &#147;&#151;&#160;Extraordinary Transactions&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of any conflict in the duties owed by us to our
    stockholders under applicable law and the fiduciary duties owed
    by us, as general partner of our operating partnership, to the
    limited partners, we may act in the best interests of our
    stockholders without violating our fiduciary duties to the
    limited partners or being liable for any resulting breach of our
    duties to the limited partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Partnership Agreement provides that our operating
    partnership is empowered to do any and all acts and things for
    the furtherance and accomplishment of our business, including
    all activities pertaining to the acquisition and operation of
    our properties, provided that our operating partnership shall
    not take, and will refrain from taking, any action which, in our
    judgment could adversely affect our ability to qualify as a REIT.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Removal
    of the General Partners; Transfer of the General Partner&#146;s
    Interest</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Partnership Agreement provides that the limited partners may
    not remove us as general partner of the operating partnership.
    We may not transfer any of our interests as a general or limited
    partner in the operating partnership except (i)&#160;in
    connection with certain extraordinary transactions as described
    below; (ii)&#160;if the limited partners holding more than 50%
    of the units held by limited partners (other than limited
    partnership units held by us) consent to such transfer; or
    (iii)&#160;to certain of our affiliates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendments
    of the Partnership Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amendments to the Partnership Agreement may only be proposed by
    us as general partner. Generally, the Partnership Agreement may
    be amended with our approval and the approval of the limited
    partners holding a majority of all outstanding limited partner
    units (including limited partner units held by us). Certain
    amendments that would, among other things, convert a limited
    partner&#146;s interest into a general partner&#146;s interest,
    modify the limited liability of a limited partner in a manner
    adverse to such limited partner, alter the rights of a partner
    to receive distributions or allocations, alter or modify the
    redemption right of a partner in a manner adverse to such
    partner, or cause the termination of the partnership prior to
    the time set forth in the Partnership Agreement must be approved
    by each partner that would be adversely affected by such
    amendment.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, we will have the power, without
    the consent of the limited partners, to amend the Partnership
    Agreement as may be required to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    add to our obligations or surrender any right or power granted
    to us or any of our affiliates for the benefit of the limited
    partners;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reflect the admission, substitution, termination or withdrawal
    of partners in accordance with the Partnership Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    set forth and reflect in the Partnership Agreement the
    designations, rights, powers, duties and preferences of the
    holders of any additional partnership units issued pursuant to
    the Partnership Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reflect a change that is of an inconsequential nature and does
    not adversely affect the limited partners in any material
    respect, or to cure any ambiguity, correct or supplement any
    provision in the Partnership Agreement not inconsistent with law
    or with other provisions, or make other changes with respect to
    matters arising under the Partnership Agreement that will not be
    inconsistent with law or with the provisions of the Partnership
    Agreement;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    satisfy any requirements, conditions, or guidelines contained in
    any order, directive, opinion, ruling or regulation of a federal
    or state agency or contained in federal or state law.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain provisions affecting our rights and duties as general
    partner (e.g., restrictions relating to certain extraordinary
    transactions involving us or the operating partnership) may not
    be amended without the approval of a majority of the limited
    partnership units (excluding limited partnership units held by
    us).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption&#160;Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the current partnership agreement, limited partners have
    the right, commencing on or after the first anniversary of the
    issuance of the units to the limited partners, to require our
    operating partnership to redeem all or a portion of their units
    for cash or, at our option, shares of common stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis, subject to adjustment in the event of stock splits, stock
    dividends, issuance of stock rights, specified extraordinary
    distributions and similar events. The cash redemption amount per
    unit is based on the market price of our common stock at the
    time of redemption. We presently anticipate that we would elect
    to issue shares of our common stock in exchange for units in
    connection with each redemption request, rather than having our
    operating partnership redeem the units for cash. With each
    redemption or exchange, we would increase our percentage
    ownership interest in our operating partnership. Limited
    partners who hold units may exercise this redemption right from
    time to time, in whole or in part, subject to certain
    limitations, unless delivery of shares of common stock to a
    limited partner pursuant to the redemption right would be
    prohibited by our charter or prohibited by federal or state
    securities laws or regulations. At this time, no limited
    partnership units have been issued (other than to us), and that
    we may issue limited partnership units with rights, preferences
    and privileges different from those described in this paragraph
    or in this registration statement of which this prospectus is a
    part.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    of Additional Units, Common Stock or Convertible
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As sole general partner, we have the ability to cause our
    operating partnership to issue additional partnership units to
    the partners (including to us). These additional units may be
    issued in one or more classes, or one or more series of any of
    such classes, with such designations, preferences, rights,
    powers and duties as we may determine in our sole and absolute
    discretion. In addition, we may issue additional shares of our
    common stock or rights, options, warrants or convertible or
    exchangeable securities, but only if it causes our operating
    partnership to issue, to us, partnership units or rights,
    options, warrants or convertible or exchangeable securities of
    the operating partnership having designations, preferences and
    other rights, so that the economic interests of the operating
    partnership&#146;s units issued are substantially similar to the
    securities that we have issued. Unless expressly granted by the
    operating partnership, no limited partner will have preemptive,
    preferential or similar rights with respect to additional
    capital contributions to the operating partnership or the
    issuance or sale of any partnership units.
</DIV>
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    <BR>
    19
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As the general partner, we are the tax matters partner of our
    operating partnership and, as such, have authority to make tax
    elections under the Code on behalf of our operating partnership.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Extraordinary
    Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Partnership Agreement provides that we may not generally
    engage in any merger, consolidation, or other combination with
    any other person or sale of all or substantially all of our
    assets, or any reclassification, recapitalization or change of
    outstanding shares of our common stock or adopt a plan of
    liquidation and dissolution (an &#147;extraordinary
    transaction&#148;) unless the holders of units will receive, or
    have the opportunity to receive, at least the same consideration
    per unit as holders of our common stock receive per share of
    common stock in the transaction. If holders of units will not be
    treated in this manner in connection with a proposed
    extraordinary transaction, we cannot engage in such a
    transaction unless limited partners (other than us) holding more
    than 50% of the units held by limited partners vote to approve
    the extraordinary transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may also engage in an extraordinary transaction without the
    consent or approval of the limited partners if we engage in a
    merger, or other combination of assets with another entity and:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    substantially all of the assets of the surviving entity are held
    directly or indirectly by the operating partnership or another
    limited partnership or limited liability company which is the
    surviving partnership of a merger, consolidation or combination
    of assets with the operating partnership;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the rights, preferences and privileges of such unit holders in
    the surviving partnership are at least as favorable as those in
    effect immediately prior to the consummation of the transaction
    and as those applicable to any other limited partners or
    non-managing members of the surviving partnership;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the limited partners may exchange their units in the surviving
    partnership for either the same consideration per unit as
    holders of our common stock receive per share of common stock in
    the transaction, or if the ultimate controlling person of the
    surviving partnership has common equity securities, at an
    exchange ratio based on the relative fair market value of those
    securities and our common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Term</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The operating partnership will continue in full force and effect
    until 2104, or until sooner dissolved in accordance with the
    terms of the Partnership Agreement or as otherwise provided by
    law.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exculpation
    and Indemnification of the General Partner</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Partnership Agreement generally provides that we will incur
    no liability to the operating partnership or any limited partner
    for losses sustained or liabilities incurred as a result of
    errors in judgment or mistakes of fact or law or of any act or
    omission unless we acted in bad faith and the act or omission
    was material to the matter giving rise to the loss or liability.
    In addition, we are not responsible for any misconduct or
    negligence on the part of our agents, provided we appointed our
    agents in good faith. We may consult with legal counsel,
    accountants, appraisers, management consultants, investment
    bankers and other consultants and advisors, and any action we
    may take or omit to take in reliance upon the opinion of such
    persons, as to matters that we reasonably believe to be within
    such persons&#146; professional or expert competence, shall be
    conclusively presumed to have been done or omitted in good faith
    and in accordance with such opinion. The Partnership Agreement
    also provides for indemnification of us, our directors and
    officers, limited partners and such other persons as we may from
    time to time designate against any losses, claims, damages,
    judgments, penalties, fines, settlements and reasonable expenses
    actually incurred by such person in connection with the
    preceding unless it is established that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the act or omission of the indemnitee was material to the matter
    giving rise to the proceeding and either was committed in bad
    faith or was the result of active and deliberate dishonesty;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the indemnitee actually received an improper personal benefit in
    money, property or services;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of any criminal proceeding, the indemnitee had
    reasonable cause to believe that the act or omission was
    unlawful.
</TD>
</TR>

</TABLE>
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    <BR>
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<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    POLICIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a discussion of our investment policies. These
    policies may be amended or revised from time to time at the
    discretion of our board of directors, without a vote of our
    stockholders. Any change to any of these policies by our board,
    however, would be made only after a thorough review and analysis
    of that change, in light of then-existing business and other
    circumstances, and then only if, in the exercise of its business
    judgment, our board of directors believes that a change is in
    our and our stockholders&#146; best interests. We cannot assure
    you that our investment objectives will be attained.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Real Estate or Interests in Real Estate</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a lodging-focused real estate company that owns premium
    hotels and resorts, located throughout the United States. We
    conduct our business through a traditional umbrella partnership
    REIT, or UPREIT, in which our hotels are owned by subsidiaries
    of our operating partnership. We are the sole general partner of
    our operating partnership and currently own, either directly or
    indirectly, all of the limited partnership units of our
    operating partnership. We seek to invest in assets primarily for
    current income generation; however, during the current
    recession, our corporate goals and objectives are focused on
    preserving and enhancing our liquidity. In general, our primary
    investment objectives are to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enhance stockholder value over time by generating strong
    risk-adjusted returns on invested capital;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay distributions to our stockholders, where such distributions
    do not conflict with our liquidity strategy;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    achieve long-term appreciation in the value of our hotel
    property investments through innovative investment management
    strategies, such as rebranding, renovating and repositioning our
    hotels.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are no limitations on the amount or percentage of our
    total assets that may be invested in any one hotel property.
    Additionally, no limits have been set on the concentration of
    investments in any one location or by brand, type of market or
    other limits. Furthermore, other than the financial covenants
    under our corporate credit facility or property-level debt,
    there are no limitations on the number of mortgages that may be
    placed on any one piece of property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additional criteria with respect to our hotel property
    investments is described in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2008 under the
    caption &#147;Our Business.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Real Estate Mortgages, Structured Financings and Other
    Lending Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have no current intention of investing in loans secured by
    properties or making loans to persons. However, we do not have a
    policy limiting our ability to invest in loans secured by
    properties or to make loans to other persons. In the future, we
    may acquire first mortgages on hotel properties and invest in
    other mortgage-related instruments such as subordinated or
    mezzanine loans to hotel owners and operators. In addition, we
    may invest in hotel properties and lease them back to their
    existing owners. We may also consider offering purchase money
    financing in connection with the sale of properties where the
    provision of that financing will increase the value to be
    received by us for the property sold. We may make loans to joint
    ventures in which we may participate in the future. However, we
    do not intend to engage in significant lending activities. Any
    such lending or financing activities would be subject to
    restrictions applicable to REITs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Securities of or Interests in Persons Primarily Engaged in
    Real Estate Activities and Other Issuers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, we do not expect to engage in any significant
    investment activities with other entities, although we may
    consider joint venture investments with other investors. We may
    also invest in the securities of other issuers in connection
    with acquisitions of indirect interests in hotel properties
    (normally general or limited partnership units in special
    purpose partnerships owning properties). We may in the future
    acquire some, all or substantially all of the securities or
    assets of other REITs or similar entities where that investment
    would be consistent with our investment policies and the REIT
    qualification requirements. There are no limitations on the
    amount or percentage of our total assets that may be invested in
    any one issuer, other than those imposed by the gross income and
    asset tests that we
</DIV>
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    <BR>
    21
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    must satisfy to qualify as a REIT. However, we do not anticipate
    investing in other issuers of securities for the purpose of
    exercising control or acquiring any investments primarily for
    sale in the ordinary course of business or holding any
    investments with a view to making short-term profits from their
    sale. In any event, we do not intend that our investments in
    securities will require us to register as an &#147;investment
    company&#148; under the Investment Company Act of 1940, and we
    intend to divest securities before any registration would be
    required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not intend to engage in trading, underwriting, agency
    distribution or sales of securities of other issuers.
</DIV>

<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FEDERAL
    INCOME TAX CONSIDERATIONS RELATED TO OUR REIT ELECTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary outlines certain U.S.&#160;federal income
    tax considerations related to our REIT status which we
    anticipate to be material to holders of our securities. This
    summary does not attempt to address any aspects of federal
    income taxation that may be relevant to your ownership of our
    securities. Instead, the material federal income tax
    considerations relating to your ownership and sale or other
    disposition of our securities will be provided in the applicable
    prospectus supplement that relates to those securities. Your tax
    treatment will vary depending upon the terms of the specific
    securities that you acquire, as well as your particular
    situation. Moreover, this summary does not address any foreign,
    state, or local tax consequences of our election to be taxed as
    a REIT. The provisions of the Code concerning the federal income
    tax treatment of a REIT are highly technical and complex; the
    following discussion sets forth only certain aspects of those
    provisions. This summary is intended to provide you with general
    information only and is not intended as a substitute for careful
    tax planning.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based on provisions of the Code, applicable
    final and temporary Treasury Regulations, judicial decisions,
    and administrative rulings and practice, all in effect as of the
    date of this prospectus, and should not be construed as legal
    advice. No assurance can be given that future legislative or
    administrative changes or judicial decisions will not affect the
    accuracy of the descriptions or conclusions contained in this
    summary. In addition, any such changes may be retroactive and
    apply to transactions entered into prior to the date of their
    enactment, promulgation or release. We do not expect to seek a
    ruling from the Internal Revenue Service, or IRS, regarding any
    of the federal income tax issues discussed in this prospectus,
    and no assurance can be given that the IRS will not challenge
    any of the positions we take and that such a challenge will not
    succeed. <B><I>Prospective purchasers of our securities are
    urged to consult their own tax advisors prior to any investment
    in our securities concerning the potential federal, state,
    local, and foreign tax consequences of the investment with
    specific reference to their own tax situations. Prospective
    purchasers also are urged to refer to the applicable prospectus
    supplement for any amendments or changes to this summary.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise noted, references in this discussion of
    &#147;Federal Income Tax Considerations Related to Our REIT
    Election&#148; to &#147;we,&#148; &#147;our,&#148;
    &#147;us&#148; and &#147;our company&#148; refer to DiamondRock
    Hospitality Company and not our taxable REIT subsidiaries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Our Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have elected to be taxed as a REIT starting with the calendar
    year ended December&#160;31, 2005 and for subsequent taxable
    years. We decided to be taxed as a C corporation for 2004 and
    defer the REIT election until 2005. Beginning January&#160;1,
    2005, we believe we have qualified as a REIT, and except as
    otherwise noted, the following discussion assumes that we
    qualify as a REIT effective January&#160;1, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this filing, we will receive an opinion of
    Goodwin Procter LLP that, commencing with our taxable year ended
    December&#160;31, 2005, we have been organized and operated in
    conformity with the requirements for qualification and taxation
    as a REIT under the Code and our current and proposed ownership
    and operations will allow us to satisfy the requirements for
    qualification and taxation as a REIT under the Code for
    subsequent taxable years. The opinion of Goodwin Procter LLP
    will be based on various assumptions and on our representations
    to Goodwin Procter LLP concerning our current and continuing
    organization, our prior, current and proposed ownership and
    operations, and our stockholders&#146; current and future
    relationships with our hotel management companies, and other
    matters relating to our ability to qualify as a REIT. The
    opinion will be expressly conditioned upon the accuracy of such
    assumptions and representations, which Goodwin Procter LLP will
    not verify. Moreover, our qualification and taxation as a REIT
    will depend upon our ability to meet, through actual annual
    operating
</DIV>
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    22
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    results, distribution levels, diversity of stock ownership and
    the absence of prohibited relationships with our hotel
    management companies, the various and complex REIT qualification
    tests imposed under the Code, the results of which will not be
    reviewed or verified by Goodwin Procter LLP. See
    &#147;&#151;&#160;Qualification as a REIT&#148; below.
    Accordingly, no assurance can be given that we will in fact
    satisfy such requirements. The opinion of Goodwin Procter LLP
    will be based upon current law, which is subject to change
    either prospectively or retroactively. Changes in applicable law
    could modify the conclusions expressed in the opinion. Moreover,
    unlike a ruling from the IRS, an opinion of Goodwin Procter LLP
    is not binding on the IRS, and no assurance can be given that
    the IRS could not successfully challenge our status as a REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we qualify as a REIT, we generally will be allowed to deduct
    dividends paid to our stockholders, and, as a result, we
    generally will not be subject to federal income tax on that
    portion of our ordinary income or net capital gain that we
    currently distribute to our stockholders. We expect to make
    distributions to our stockholders on a regular basis as
    necessary to avoid material federal income tax and to comply
    with the REIT requirements. See &#147;&#151;&#160;Qualification
    as a REIT&#160;&#151; Annual Distribution Requirements&#148;
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, even if we qualify for taxation
    as a REIT, we nonetheless may be subject to federal income tax
    in certain circumstances, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will be required to pay federal income tax on our
    undistributed taxable income, including net capital gain;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We may be subject to the &#147;alternative minimum tax;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We may be subject to tax at the highest corporate rate on
    certain income from &#147;foreclosure property&#148; (generally,
    property acquired by reason of default on a lease or
    indebtedness held by us);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will be subject to a 100% federal income tax on net income
    from &#147;prohibited transactions&#148; (generally, certain
    sales or other dispositions of property, sometimes referred to
    as &#147;dealer property,&#148; held primarily for sale to
    customers in the ordinary course of business) unless such
    property has been held by us for two years (four years if such
    property was sold before July&#160;30, 2008)&#160;and certain
    other requirements are satisfied or the gain is realized in a
    TRS;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If we fail to satisfy the 75% gross income test or the 95% gross
    income test (discussed below), but nonetheless maintain our
    qualification as a REIT pursuant to certain relief provisions,
    we will be subject to a 100% federal income tax on the greater
    of (i)&#160;the amount by which we fail the 75% gross income
    test or (ii)&#160;the amount by which we fail the 95% gross
    income test, multiplied by a fraction intended to reflect our
    profitability;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If we fail to satisfy any of the asset tests, other than the 5%
    or the 10% asset tests that qualify under the De Minimis
    Exception, and the failure qualifies under the General
    Exception, as described below under
    &#147;&#151;&#160;Qualification as a REIT&#160;&#151; Asset
    Tests,&#148; then we will have to pay an excise tax equal to the
    greater of (i)&#160;$50,000 and (ii)&#160;an amount determined
    by multiplying the net income generated during a specified
    period by the assets that caused the failure by the highest
    federal income tax applicable to corporations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If we fail to satisfy any REIT requirements other than the
    income test or asset test requirements, described below under
    &#147;&#151;&#160;Qualification as a REIT&#160;&#151; Income
    Tests&#148; and &#147;&#151;&#160;Qualification as a
    REIT&#160;&#151; Asset Tests,&#148; respectively, and we qualify
    for a reasonable cause exception, then we will have to pay a
    penalty equal to $50,000 for each such failure;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will be subject to a 4% excise tax if certain distribution
    requirements are not satisfied;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Because we were a C corporation for our taxable year ended
    December&#160;31, 2004, we generally will be subject to a
    corporate-level tax on a taxable disposition of any appreciated
    asset we hold as of the effective date of our REIT election,
    which was January&#160;1, 2005. Specifically, if we dispose of a
    <FONT style="white-space: nowrap">built-in-gain</FONT>
    asset in a taxable transaction prior to tenth anniversary of the
    effective date of our REIT election, we would be subject to tax
    at the highest regular corporate rate (currently 35%) on the
    lesser of the gain recognized and the asset&#146;s
    <FONT style="white-space: nowrap">built-in-gain;</FONT>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If we dispose of an asset acquired by us from a C corporation in
    a transaction in which we took the C corporation&#146;s tax
    basis in the asset, we may be subject to tax at the highest
    regular corporate rate on the appreciation inherent in such
    asset as of the date of acquisition by us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will be required to pay a 100% tax on any redetermined rents,
    redetermined deductions, and excess interest. In general,
    redetermined rents are rents from real property that are
    overstated as a result of services furnished to any of our
    non-TRS tenants by one of our TRSs. Redetermined deductions and
    excess interest generally represent amounts that are deducted by
    a TRS lessee or other TRS for amounts paid to us that are in
    excess of the amounts that would have been deducted based on
    arm&#146;s-length negotiations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Income earned by our TRS lessees, Bloodstone TRS, Inc. and
    certain other TRSs will be subject to tax at regular corporate
    rates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No assurance can be given that the amount of any such federal
    income taxes will not be substantial. We note that the assets we
    acquired during 2004 were acquired on or after October&#160;27,
    2004, and we do not believe the
    <FONT style="white-space: nowrap">built-in</FONT>
    gain in such assets as of January&#160;1, 2005 was material.
    Accordingly, we do not expect to be subject to significant
    corporate tax liabilities if we decide to sell an asset we
    acquired in 2004 within the
    <FONT style="white-space: nowrap">10-year</FONT>
    period following the effective date of our REIT election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Qualification
    as a REIT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">In
    General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The REIT provisions of the Code apply to a domestic corporation,
    trust, or association (i)&#160;that is managed by one or more
    trustees or directors, (ii)&#160;the beneficial ownership of
    which is evidenced by transferable shares or by transferable
    certificates of beneficial interest, (iii)&#160;that properly
    elects to be taxed as a REIT, (iv)&#160;that is neither a
    financial institution nor an insurance company, (v)&#160;that
    uses a calendar year for federal income tax purposes and
    complies with applicable recordkeeping requirements, and
    (vi)&#160;that meets the additional requirements discussed below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ownership
    Tests</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Commencing with our second REIT taxable year, which was the
    calendar year ended December&#160;31, 2006, (i)&#160;the
    beneficial ownership of our common stock must be held by 100 or
    more persons during at least 335&#160;days of a
    <FONT style="white-space: nowrap">12-month</FONT>
    taxable year (or during a proportionate part of the taxable year
    of less than 12&#160;months) for each of our taxable years and
    (ii)&#160;during the last half of each taxable year, no more
    than 50% in value of our stock may be owned, directly or
    indirectly, by or for five or fewer individuals (the &#147;5/50
    Test&#148;). Stock ownership for purposes for the 5/50 Test is
    determined by applying the constructive ownership provisions of
    Section&#160;544(a) of the Code, subject to certain
    modifications. The term &#147;individual&#148; for purposes of
    the 5/50 Test includes a private foundation, a trust providing
    for the payment of supplemental unemployment compensation
    benefits, and a portion of a trust permanently set aside or to
    be used exclusively for charitable purposes. A qualified trust
    described in Section&#160;401(a) of the Code and exempt from tax
    under Section&#160;501(a) of the Code generally is not treated
    as an individual; rather, shares held by it are treated as owned
    proportionately by its beneficiaries. However, if
    (i)&#160;treating qualified trusts as individuals would cause us
    to fail the 5/50 Test and (ii)&#160;we are &#147;predominantly
    held&#148; by qualified trusts, we will be treated as a
    &#147;pension-held REIT.&#148; We will be &#147;predominantly
    held&#148; by qualified trusts if either (i)&#160;a single
    qualified trust holds more than 25% by value of our stock or
    (ii)&#160;one or more qualified trusts, each owning more than
    10% by value of our stock, hold in the aggregate more than 50%
    by value of our stock. In the event we are a pension held REIT,
    a qualified trust owning 10% or more of our shares should expect
    to recognize UBTI as a result of its investment. We cannot
    assure you that we will never be treated as a pension held REIT.
    Before making an investment in shares of our common stock, a
    tax-exempt stockholder should consult its own tax advisors with
    regard to UBTI and the suitability of the investment in our
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe we have issued sufficient common stock to satisfy the
    above ownership requirements. In addition, our charter restricts
    ownership and transfers of our stock that would violate these
    requirements, although these restrictions may not be effective
    in all circumstances to prevent a violation. We will be deemed
    to have satisfied the
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5/50 Test for a particular taxable year if we have complied with
    all the requirements for ascertaining the ownership of our
    outstanding stock in that taxable year and have no reason to
    know that we have violated the 5/50 Test.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Tests</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to maintain qualification as a REIT, we must annually
    satisfy two gross income requirements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1)&#160;First, at least 75% of our gross income (excluding gross
    income from prohibited transactions and certain other income and
    gains as described below) for each taxable year must be derived,
    directly or indirectly, from investments relating to real
    property or mortgages on real property or from certain types of
    temporary investments (or any combination thereof). Qualifying
    income for the purposes of this 75% gross income test generally
    includes: (a)&#160;rents from real property, (b)&#160;interest
    on debt secured by mortgages on real property or on interests in
    real property, (c)&#160;dividends or other distributions on, and
    gain from the sale of, shares in other REITs, (d)&#160;gain from
    the sale of real estate assets (other than gain from prohibited
    transactions), (e)&#160;income and gain derived from foreclosure
    property, and (f)&#160;income from certain types of temporary
    investments;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2)&#160;Second, in general, at least 95% of our gross income
    (excluding gross income from prohibited transactions and certain
    other income and gains as described below) for each taxable year
    must be derived from the real property investments described
    above and from other types of dividends and interest, gain from
    the sale or disposition of stock or securities that are not
    dealer property, or any combination of the above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the 75% and the 95% gross income tests, we are
    treated as receiving our proportionate share of our operating
    partnership&#146;s gross income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to satisfy one or both of the 75% or the 95% gross
    income tests, we may nevertheless qualify as a REIT for a
    particular year if we are entitled to relief under certain
    provisions of the Code. Those relief provisions generally will
    be available if our failure to meet such tests is due to
    reasonable cause and not due to willful neglect and we file a
    schedule describing each item of our gross income for such
    year(s) in accordance with the applicable Treasury Regulations.
    It is not possible, however, to state whether in all
    circumstances we would be entitled to the benefit of these
    relief provisions. As discussed above in
    &#147;&#151;&#160;Taxation of Our Company,&#148; even if these
    relief provisions were to apply, we would be subject to federal
    income tax with respect to our excess net income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreclosure property.</I>&#160;&#160;Foreclosure property is
    real property (including interests in real property) and any
    personal property incident to such real property (1)&#160;that
    is acquired by a REIT as a result of the REIT having bid in the
    property at foreclosure, or having otherwise reduced the
    property to ownership or possession by agreement or process of
    law, after there was a default (or default was imminent) on a
    lease of the property or a mortgage loan held by the REIT and
    secured by the property, (2)&#160;for which the related loan or
    lease was made, entered into or acquired by the REIT at a time
    when default was not imminent or anticipated and (3)&#160;for
    which such REIT makes an election to treat the property as
    foreclosure property. REITs generally are subject to tax at the
    maximum corporate rate (currently 35%) on any net income from
    foreclosure property, including any gain from the disposition of
    the foreclosure property, other than income that would otherwise
    be qualifying income for purposes of the 75% gross income test.
    Any gain from the sale of property for which a foreclosure
    property election has been made will not be subject to the 100%
    tax on gains from prohibited transactions described above, even
    if the property is held primarily for sale to customers in the
    ordinary course of a trade or business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Hedging transactions.</I>&#160;&#160;We may enter into
    hedging transactions with respect to one or more of our assets
    or liabilities. Hedging transactions could take a variety of
    forms, including interest rate swaps or cap agreements, options,
    futures contracts, forward rate agreements or similar financial
    instruments. Except to the extent as may be provided by future
    Treasury Regulations, any income from a hedging transaction
    which is clearly identified as such before the close of the day
    on which it was acquired, originated or entered into, including
    gain from the disposition or termination of such a transaction,
    will not constitute gross income for purposes of the 95% and 75%
    gross income tests, provided that the hedging transaction is
    entered into after July&#160;30, 2008 (i)&#160;in the normal
    course of our business primarily to manage risk of interest rate
    or price changes or currency fluctuations with respect to
    indebtedness incurred or to be incurred by us to acquire or
    carry real estate assets or (ii)&#160;primarily to manage the
    risk of currency fluctuations with respect to any item of income
    or gain that would be qualifying income under the 75% or 95%
    income tests (or any property which generates such income or
    gain). To the extent we enter into other types of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    hedging transactions, the income from those transactions is
    likely to be treated as non-qualifying income for purposes of
    both the 75% and 95% gross income tests. Prior to July&#160;30,
    2008, the rules applicable to hedging transactions were more
    restrictive. We intend to structure any hedging transactions in
    a manner that does not jeopardize our ability to qualify as a
    REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreign Currency Gains.</I>&#160;&#160;In addition to the
    Frenchman&#146;s Reef&#160;&#038; Morning Star Marriott Beach
    Resort, we may acquire other properties located outside of the
    United States in the future, through a taxable REIT subsidiary
    or otherwise. We do not have any foreign currency gains in
    connection with our investment in Frenchman&#146;s
    Reef&#160;&#038; Morning Star Marriott Beach Resort. Any foreign
    currency gains recognized after July&#160;30, 2008, to the
    extent attributable to specified assets or items of qualifying
    income or gain for purposes of the 75% or 95% gross income test,
    generally will not constitute gross income for purposes of the
    applicable test, and therefore will be exempt from such test,
    provided we do not deal in or engage in substantial and regular
    trading in securities, which we do not intend to do.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Hotels</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Operating revenues from our hotels are not qualifying income for
    purposes of either the 75% or the 95% gross income test.
    Accordingly, in order for us to generate qualifying income with
    respect to our hotel investments under the REIT rules, we must
    master-lease our hotels. Specifically, our operating partnership
    has formed a subsidiary, Bloodstone TRS, Inc., that has elected
    to be treated as our TRS and may, in the future, form other
    subsidiaries that elect to be treated as our TRSs. Bloodstone
    TRS, Inc. has formed subsidiaries (each a &#147;TRS
    lessee&#148;) that master-lease hotels from the operating
    partnership (or subsidiaries of the operating partnership). We
    expect to form additional TRS lessees (under Bloodstone TRS,
    Inc. or other of our TRSs) as we acquire additional properties.
    In certain instances we may own a hotel through a TRS. For
    example, we have elected to treat DiamondRock Frenchman&#146;s
    Owner, Inc., through which we hold the Frenchman&#146;s
    Reef&#160;&#038; Morning Star Marriott Beach Resort, as a TRS
    and we may hold other
    <FONT style="white-space: nowrap">non-U.S.&#160;investments</FONT>
    through TRSs. One or more hotel management companies will manage
    the hotels leased to each TRS lessee or owned by a TRS. We also
    may lease a hotel to an unrelated lessee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, rent paid by a related party tenant, such as a TRS
    lessee, is not qualifying &#147;rents from real property&#148;
    for purposes of the REIT gross income tests, but rent paid by a
    TRS lessee to our operating partnership with respect to a lease
    of a &#147;qualified lodging facility&#148; from the operating
    partnership can be qualifying rents from real property under the
    REIT rules as long as such TRS lessee does not directly or
    indirectly operate or manage any hotel or provide rights to any
    brand name under which any hotel is operated. Instead, the hotel
    must be operated on behalf of the TRS lessee by a person who
    qualifies as an &#147;eligible independent contractor,&#148;
    defined as an &#147;independent contractor&#148; who is, or is
    related to a person who is, actively engaged in the trade or
    business of operating &#147;qualified lodging facilities&#148;
    for any person unrelated to us and the TRS lessee. See
    &#147;&#151;&#160;Investments in Taxable REIT Subsidiaries&#148;
    below for a further discussion of the issue and a discussion of
    the definition of an &#147;independent contractor&#148; and the
    qualification of Marriott (or another hotel management company)
    as an &#147;eligible independent contractor.&#148; A
    &#147;qualified lodging facility&#148; is a hotel, motel, or
    other establishment more than one-half of the dwelling units in
    which are used on a transient basis, provided that wagering
    activities are not conducted at or in connection with such
    facility by any person who is engaged in the business of
    accepting wagers and who is legally authorized to engage in such
    business at or in connection with such facility. A
    &#147;qualified lodging facility&#148; includes customary
    amenities and facilities operated as part of, or associated
    with, the lodging facility as long as such amenities and
    facilities are customary for other properties of a comparable
    size and class owned by other unrelated owners. We believe that
    our hotels are qualified lodging facilities. Rent paid by a TRS
    lessee that failed to qualify as rents from real property under
    the REIT rules would be non-qualifying income for purposes of
    the REIT gross income tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two other limitations may affect our ability to treat rent paid
    by a TRS lessee or other lessee as qualifying rents from real
    property under the REIT rules. If the rent attributable to
    personal property leased by the TRS lessee (or other lessee) in
    connection with a lease of real property is greater than 15% of
    the total rent under the lease, then the portion of the rent
    attributable to such personal property will not qualify as rents
    from real property. Also, an amount received or accrued will not
    qualify as rents from real property for purposes of either the
    75% or the 95% gross income test if it is based in whole or in
    part on the income or profits derived by any person from such
    property. However, an amount received or accrued will not be
    excluded from rents from real property solely by reason of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    being based on a fixed percentage or percentages of receipts or
    sales. To comply with the limitation on rents attributable to
    personal property, a TRS lessee may acquire furnishings,
    equipment,
    <FONT style="white-space: nowrap">and/or</FONT>
    personal property used in hotel, at least to the extent that
    they exceed this 15% limit. To comply with the prohibition on
    rent based on net income, the leases will provide that each TRS
    lessee is obligated to pay our operating partnership a minimum
    base rent together with a gross percentage rent, at rates
    intended to equal market rental rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, rent paid by a TRS lessee or other lessee that
    leases a hotel from our operating partnership will constitute
    rents from real property for purposes of the REIT gross income
    tests only if the lease is respected as a true lease for federal
    income tax purposes and is not treated as a service contract,
    joint venture, or some other type of arrangement. The
    determination of whether a lease is a true lease depends upon an
    analysis of all the surrounding facts and circumstances. We
    believe that the leases with our TRS lessees should be treated
    as true leases. However, that there are no controlling
    regulations, published administrative rulings, or judicial
    decisions involving leases with terms substantially similar to
    the leases between our operating partnership and the TRS lessees
    that discuss whether the leases constitute true leases for
    federal income tax purposes. Thus, there can be no assurance
    that the IRS will not assert a contrary position and that a
    court will not sustain such a challenge. If any leases between
    our operating partnership and a TRS lessee are re-characterized
    as service contracts or partnership agreements, rather than as
    true leases, part or all of the payment that we receive from
    such TRS lessee would not be considered rent or would otherwise
    fail the various requirements for qualification as rents from
    real property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Finally, for rents received by or attributed to us to qualify as
    rents from real property, we generally must not furnish or
    render any services to tenants, other than through a TRS or an
    independent contractor from whom we derive no income, except
    that we and our operating partnership may directly provide
    services that are &#147;usually or customarily rendered&#148; in
    connection with the rental of properties for occupancy only, or
    are not otherwise considered rendered to the occupant &#147;for
    his convenience.&#148; Neither we nor our operating partnership
    provides, or intends to provide, any services to our TRSs, TRS
    lessees or any other tenants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that, for purposes of both the 75% and the 95% gross
    income tests, our operating partnership&#146;s investments in
    hotels generally give rise to qualifying income in the form of
    rents from real property, and that gains on the sales of the
    hotels will also constitute qualifying income. However, no
    assurance can be given that either the rents or the gains will
    constitute qualifying income. In that case, we may not be able
    to satisfy either the 75% or the 95% gross income test and, as a
    result, could lose our REIT status.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We hold the Frenchman&#146;s Reef&#160;&#038; Morning Star
    Marriott Beach Resort through a Cayman Islands corporation that
    holds a U.S.&#160;Virgin Islands corporation that we have
    elected to be treated as our TRS. In the case of hotels owned,
    rather than leased, by a TRS, dividends paid by such TRS out of
    its earnings and gains from the sale of stock of such a TRS
    would not be qualifying income for purposes of the 75% gross
    income test, although such dividends and gains would be
    qualifying income for purposes of the 95% gross income test.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    Tests</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the close of each quarter of our taxable year, we must also
    satisfy four tests relating to the nature of our assets. First,
    real estate assets, cash and cash items, and government
    securities must represent at least 75% of the value of our total
    assets. Second, not more than 25% of our total assets may be
    represented by securities other than those in the 75% asset
    class. Third, of the investments that are not included in the
    75% asset class and that are not securities of our TRS lessees
    or other TRSs, (i)&#160;the value of any one issuer&#146;s
    securities owned by us may not exceed 5% of the value of our
    total assets and (ii)&#160;we may not own more than 10% by vote
    or by value of any one issuer&#146;s outstanding securities. For
    purposes of the 10% value test, debt instruments issued by a
    partnership are not classified as &#147;securities&#148; to the
    extent of our interest as a partner in such partnership (based
    on our proportionate share of the partnership&#146;s equity
    interests and certain debt securities) or if at least 75% of the
    partnership&#146;s gross income, excluding income from
    prohibited transactions, is qualifying income for purposes of
    the 75% gross income test. For purposes of the 10% value test,
    the term &#147;securities&#148; also does not include debt
    securities issued by another REIT, certain &#147;straight
    debt&#148; securities (for example, qualifying debt securities
    of a corporation of which we own no more than a de minimis
    amount of equity interest), loans to individuals or estates, and
    accrued obligations to pay rent. Fourth, securities of our TRS
    lessees or other TRSs cannot represent more than 25% (20% for
    taxable years beginning before July&#160;31, 2008)&#160;of our
    total assets. Although we believe that we have met and intend to
    continue to
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    meet these asset tests, no assurance can be given that we will
    be able to do so. For purposes of these asset tests, we are
    treated as holding our proportionate share of our operating
    partnership&#146;s assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will monitor the status of our assets for purposes of the
    various asset tests and will endeavor to manage our portfolio in
    order to comply at all times with such tests. If we fail to
    satisfy the asset tests at the end of a calendar quarter, we
    will not lose our REIT status if one of the following exceptions
    applies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We satisfied the asset tests at the end of the preceding
    calendar quarter, and the discrepancy between the value of our
    assets and the asset test requirements arose from changes in the
    market values of our assets and was not wholly or partly caused
    by the acquisition of one or more non-qualifying assets;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We eliminate any discrepancy within 30&#160;days after the close
    of the calendar quarter in which it arose.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if we fail to satisfy the asset tests at the end of a
    calendar quarter during a taxable year, we will not lose our
    REIT status if one of the following additional exceptions
    applies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>De Minimis Exception:</I>&#160;&#160;The failure is due to a
    violation of the 5% or 10% asset tests referenced above and is
    &#147;de minimis&#148; (meaning that the failure is one that
    arises from our ownership of assets the total value of which
    does not exceed the lesser of 1% of the total value of our
    assets at the end of the quarter in which the failure occurred
    and $10&#160;million), and we either dispose of the assets that
    caused the failure or otherwise satisfy the asset tests within
    6&#160;months after our identification of the failure;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>General Exception:</I>&#160;&#160;All of the following
    requirements are satisfied: (i)&#160;the failure is not due to a
    &#147;de minimis&#148; violation of the 5% or 10% asset tests
    (as defined above), (ii)&#160;the failure is due to reasonable
    cause and not willful neglect, (iii)&#160;we file a schedule in
    accordance with Treasury Regulations providing a description of
    each asset that caused the failure, (iv)&#160;we either dispose
    of the assets that caused the failure or otherwise satisfy the
    asset tests within 6&#160;months after the last day of the
    quarter in which our identification of the failure occurred, and
    (v)&#160;we pay an excise tax as described above in
    &#147;&#151;&#160;Taxation of Our Company.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Annual
    Distribution Requirements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to qualify as a REIT, we must distribute dividends
    (other than capital gain dividends) to our stockholders in an
    amount at least equal to (A)&#160;the sum of (i)&#160;90% of our
    &#147;REIT taxable income&#148; (determined without regard to
    the dividends paid deduction and by excluding any net capital
    gain) and (ii)&#160;90% of the net income (after tax), if any,
    from foreclosure property, minus (B)&#160;the sum of certain
    items of non-cash income. We generally must pay such
    distributions in the taxable year to which they relate, or in
    the following taxable year if declared before we timely file our
    tax return for such year and if paid on or before the first
    regular dividend payment after such declaration. We may satisfy
    our distribution requirement in part by paying a taxable stock
    dividend.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that we do not distribute all of our net capital
    gain and REIT taxable income, we will be subject to tax on the
    undistributed amount at corporate capital gains and ordinary tax
    rates, respectively. Furthermore, if we should fail to
    distribute during each calendar year at least the sum of
    (i)&#160;85% of our ordinary income for such year, (ii)&#160;95%
    of our capital gain net income for such year, and (iii)&#160;any
    undistributed ordinary income and capital gain net income from
    prior periods, we will be subject to a 4% nondeductible excise
    tax on the excess of such required distribution over the amounts
    actually distributed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, we may be able to rectify a failure
    to meet the distribution requirement for a year by paying
    &#147;deficiency dividends&#148; to our stockholders in a later
    year that may be included in our deduction for dividends paid
    for the earlier year. Thus, we may be able to avoid being taxed
    on amounts distributed as deficiency dividends; however, we will
    be required to pay interest based upon the amount of any
    deduction taken for deficiency dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, dividends we pay must not be preferential. If a
    dividend is preferential, it will not qualify for the dividends
    paid deduction. To avoid paying preferential dividends, we must
    treat every stockholder of the class of stock with respect to
    which we make a distribution the same as every other stockholder
    of that class, and we must not treat any class of stock other
    than according to its dividend rights as a class.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may retain and pay income tax on net long-term capital gains
    we received during the tax year. To the extent we so elect,
    (i)&#160;each stockholder must include in its income (as
    long-term capital gains) its proportionate share of our
    undistributed long-term capital gains, (ii)&#160;each
    stockholder&#146;s basis in its shares of our stock is increased
    by the included amount of the undistributed long-term capital
    gains, and (iii)&#160;each stockholder is deemed to have paid,
    and receives a credit for, its proportionate share of the tax
    paid by us on the undistributed long-term capital gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To qualify as a REIT, we may not have, at the end of any taxable
    year, any undistributed earnings and profits accumulated in any
    non-REIT taxable year. Our non-REIT earnings and profits include
    any earnings and profits we accumulated before the effective
    date of our REIT election, which was January&#160;1, 2005. We
    distributed sufficient earnings and profits before
    December&#160;31, 2005 to eliminate any non-REIT earnings and
    profits, which distributions were in addition to distributions
    we were required to make to satisfy the 90% distribution test
    (as discussed above) and avoid incurring tax on our
    undistributed income.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to Qualify</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to qualify as a REIT and such failure is not an asset
    test or income test failure, we generally will be eligible for a
    relief provision if the failure is due to reasonable cause and
    not willful neglect and we pay a penalty of $50,000 with respect
    to such failure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to qualify for taxation as a REIT in any taxable year
    and no relief provisions apply, we generally will be subject to
    tax (including any applicable alternative minimum tax) on our
    taxable income at regular corporate rates. Distributions to our
    stockholders in any year in which we fail to qualify as a REIT
    will not be deductible by us nor will they be required to be
    made. In such event, to the extent of current or accumulated
    earnings and profits, all distributions to our stockholders will
    be taxable as dividend income. Subject to certain limitations in
    the Code, corporate stockholders may be eligible for the
    dividends received deduction, and individual, trust and estate
    stockholders may be eligible to treat the dividends received
    from us as qualified dividend income taxable as net capital
    gains, under the provisions of Section&#160;1(h)(11) of the
    Code, through the end of 2010. Unless entitled to relief under
    specific statutory provisions, we also will be ineligible to
    elect REIT status again prior to the fifth taxable year
    following the first year in which we failed to qualify as a REIT
    under the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our qualification as a REIT for federal income tax purposes will
    depend on our continuing to meet the various requirements
    summarized above governing the ownership of our outstanding
    shares, the nature of our assets, the sources of our income, and
    the amount of our distributions to our stockholders. Although we
    intend to operate in a manner that will enable us to comply with
    such requirements, there can be no certainty that such intention
    will be realized. In addition, because the relevant laws may
    change, compliance with one or more of the REIT requirements may
    become impossible or impracticable for us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Qualified
    REIT Subsidiaries and Disregarded Entities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we own a corporate subsidiary that is a &#147;qualified REIT
    subsidiary&#148; (&#147;QRS&#148;), or if we or our operating
    partnership own 100% of the membership interests in a limited
    liability company or other unincorporated entity that does not
    elect to be treated as a corporation for federal income tax
    purposes, the separate existence of the QRS, limited liability
    company or other unincorporated entity generally will be
    disregarded for federal income tax purposes. Generally, a QRS is
    a corporation, other than a TRS, all of the stock of which is
    owned by a REIT. A limited liability company or other
    unincorporated entity 100% owned by a single member that does
    not elect to be treated as a corporation for federal income tax
    purposes generally is disregarded as an entity separate from its
    owner for federal income tax purposes. All assets, liabilities,
    and items of income, deduction, and credit of the QRS or
    disregarded entity will be treated as assets, liabilities, and
    items of income, deduction, and credit of its owner. If we own a
    QRS or a disregarded entity, neither will be subject to federal
    corporate income taxation, although such entities may be subject
    to state and local taxation in some states.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of the Operating Partnership</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operating partnership currently is a disregarded entity
    because we own 100% of the interests in it, directly or through
    other disregarded entities. If we admit other limited partners,
    our operating partnership will be treated as a partnership for
    tax purposes, as described below.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Code, a partnership is not subject to federal income
    tax, but is required to file a partnership tax information
    return each year. In general, the character of each
    partner&#146;s share of each item of income, gain, loss,
    deduction, credit, and tax preference is determined at the
    partnership level. Each partner is then allocated a distributive
    share of such items in accordance with the partnership agreement
    and is required to take such items into account in determining
    the partner&#146;s income. Each partner includes such amount in
    income for any taxable year of the partnership ending within or
    with the taxable year of the partner, without regard to whether
    the partner has received or will receive any cash distributions
    from the partnership. Cash distributions, if any, from a
    partnership to a partner generally are not taxable unless and to
    the extent they exceed the partner&#146;s basis in its
    partnership interest immediately before the distribution. Any
    amounts in excess of such tax basis will generally be treated as
    a sale of such partner&#146;s interest in the partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If and when our operating partnership becomes taxable as a
    partnership, rather than a disregarded entity, we generally will
    be treated for federal income tax purposes as contributing our
    properties to the operating partnership at such time. If our
    properties are appreciated at such time, we could recognize a
    smaller share of tax depreciation, and a larger share of tax
    gain on sale, from such properties subsequent to that deemed
    contribution, as compared to our percentage interest in the
    operating partnership. This deemed contribution also could
    trigger tax gain in some circumstances, but we expect to
    structure the admission of outside partners in a manner that
    should avoid any such gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As noted above, for purposes of the REIT income and asset tests,
    we are treated as holding or receiving our proportionate share
    of our operating partnership&#146;s income and assets,
    respectively. We control, and intend to continue to control, our
    operating partnership and intend to operate it consistently with
    the requirements for our qualification as a REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may use our operating partnership to acquire hotels in
    exchange for operating partnership units, in order to permit the
    sellers of such properties to defer recognition of their tax
    gain. In such a transaction, our initial tax basis in the hotels
    acquired generally will be less than the purchase price of the
    hotels. Consequently, our depreciation deductions for such
    properties may be less, and our tax gain on a sale of such
    properties may be more, than the deductions or gain,
    respectively, that we would have if we acquired these properties
    in taxable transactions. In addition, we may issue equity
    compensation to employees in the form of interests in our
    operating partnership that provides for capital gain treatment
    to the employees but does not generate a corresponding deduction
    for our operating partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The discussion above assumes that our operating partnership will
    be treated as a &#147;partnership&#148; for federal income tax
    purposes once it is no longer treated as a disregarded entity.
    Generally, a domestic unincorporated entity such as our
    operating partnership with two or more partners is treated as a
    partnership for federal income tax purposes unless it
    affirmatively elects to be treated as a corporation. However,
    certain &#147;publicly traded partnerships&#148; are treated as
    corporations for federal income tax purposes. Once our operating
    partnership is no longer a disregarded entity for federal income
    tax purposes, we intend to comply with one or more exceptions
    from treatment as a corporation under the publicly traded
    partnership rules. Failure to qualify for such an exception
    would prevent us from qualifying as a REIT.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Taxable REIT Subsidiaries</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and each subsidiary intended to qualify as a TRS have made
    (or will make, as applicable) a joint election for such
    subsidiary to be treated as our taxable REIT subsidiary. A
    domestic TRS (or a foreign TRS with income from a
    U.S.&#160;business) pays federal, state, and local income taxes
    at the full applicable corporate rates on its taxable income
    prior to payment of any dividends. Thus, for example, Bloodstone
    TRS, Inc. generally will pay U.S.&#160;corporate tax on key
    money and yield support when it is paid, notwithstanding the
    treatment of key money and yield support payments for accounting
    purposes. A TRS owning or leasing a hotel outside of the U.S.,
    such as DiamondRock Frenchman&#146;s Owner, Inc., may pay
    foreign taxes. The taxes owed by our TRSs could be substantial.
    To the extent that our TRSs are required to pay federal, state,
    local, or foreign taxes, the cash available for distribution by
    us will be reduced accordingly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A TRS is permitted to engage in certain kinds of activities that
    cannot be performed directly by us without jeopardizing our REIT
    status. A TRS is subject to limitations on the deductibility of
    payments made to us which
</DIV>
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    30
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    could materially increase its taxable income and also is subject
    to prohibited transaction taxes on certain other payments made,
    directly or indirectly, to us. We will be subject to a 100% tax
    on the amounts of any rents from real property, deductions, or
    excess interest received from a TRS that would be reduced
    through reapportionment under Section&#160;482 of the Code in
    order to more clearly reflect the income of the TRS. In
    particular, this 100% tax would apply to our share of any rent
    paid by a TRS lessee that was determined to be in excess of a
    market rate rent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed above in &#147;&#151;&#160;Qualification as a
    REIT&#160;&#151; Income Tests,&#148; Bloodstone TRS, Inc.,
    through our TRS lessees, leases qualified lodging facilities
    from our operating partnership (or its affiliates) and a TRS may
    own hotels (such as DiamondRock Frenchman&#146;s Owner, Inc.
    that owns Frenchman&#146;s Reef&#160;&#038; Morning Star
    Marriott Beach Resort). However, a TRS may not directly or
    indirectly operate or manage any hotel or provide rights to any
    brand name under which any hotel is operated. Specifically,
    rents paid by a TRS lessee can qualify as rents from real
    property only so long as the property is operated and managed on
    behalf of the TRS lessee by an &#147;eligible independent
    contractor,&#148; which is a person (or entity) that satisfies
    the following requirements: (i)&#160;such person is, or is
    related to a person who is, actively engaged in the trade or
    business of operating qualified lodging facilities for any
    person unrelated to us or the TRS lessee; (ii)&#160;such person
    does not own, directly or indirectly, more than 35% of our
    stock; and (iii)&#160;not more than 35% of such person is owned,
    directly or indirectly, by one or more persons owning 35% or
    more of our stock. For purposes of determining whether these
    ownership limits are satisfied, actual ownership as well as
    constructive ownership under the rules of Section&#160;318 of
    the Code (with certain modifications) is taken into account. For
    example, (a)&#160;interests owned by a partnership are also
    treated as owned proportionately by its partners,
    (b)&#160;interests held by a partner with a 25% or greater share
    of partnership capital interests or profits interests are also
    treated as owned by the partnership, (c)&#160;interests held by
    a 10% or greater stockholder are also treated as held by the
    corporation, and (d)&#160;interests held by a corporation are
    also treated as held by a 10% or greater stockholder (in the
    proportion that such stockholder&#146;s stock bears to all the
    stock of the corporation). However, if any class of our stock or
    the stock of a person attempting to qualify as an eligible
    independent contractor is regularly traded on an established
    securities market, only persons who own, directly or indirectly,
    more than 5% of such class of stock shall be taken into account
    as owning any of the stock of such class for purposes of
    applying the 35% limitation described in clause&#160;(iii)
    above. In addition, the IRS has ruled to the effect that an
    advisor or similar fiduciary to a REIT cannot also qualify as an
    eligible independent contractor with respect to the REIT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each TRS lessee (and any other of our TRSs that owns an interest
    in our hotels) has hired (or will hire) a hotel management
    company that we believe qualifies as an eligible independent
    contractor to manage and operate the hotels leased by (or owned
    through) the TRS. We believe that Marriott has qualified, and
    Marriott intends to continue to qualify, as an eligible
    independent contractor. In that regard, constructive ownership
    under Section&#160;318 of the Code resulting, for example, from
    relationships between Marriott and our other stockholder could
    impact Marriott&#146;s ability to satisfy the applicable
    ownership limit. Because of the broad scope of the attribution
    rules of Section&#160;318 of the Code, it is possible that not
    all prohibited relationships will be identified and avoided. The
    existence of such a relationship would disqualify Marriott (or
    another hotel management company) as an eligible independent
    contractor, which would in turn disqualify us as a REIT. Our
    charter restricts ownership and transfer of our shares in a
    manner intended to facilitate continuous qualification of
    Marriott (or another hotel management company) as an eligible
    independent contractor, but no assurances can be given that such
    transfer and ownership restrictions have or will ensure that
    Marriott (or another hotel management company), in fact, has
    been or will be an eligible independent contractor. As noted
    above, Goodwin Procter LLP&#146;s opinion as to REIT
    qualification is based upon our representations and covenants as
    to the absence of such relationships. Marriott&#146;s failure to
    qualify as an eligible independent contractor does not give us
    the right to terminate the management agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">State,
    Local, and Foreign Tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be subject to state, local and foreign tax in states,
    localities and foreign countries in which we do business or own
    property. The tax treatment applicable to us and our
    stockholders in such jurisdictions may differ from the federal
    income tax treatment described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Stockholders should consult the applicable prospectus
    supplement, as well as their own tax advisers, for further
    information about federal, state, local, and other tax
    consequences of investing in the securities offered by the
    applicable prospectus supplement.</I></B>
</DIV>
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    <BR>
    31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may sell the securities offered by means of this prospectus
    domestically or abroad, in one or more transactions, including
    block transactions and transactions on the NYSE or on a delayed
    or continuous basis:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through underwriters or dealers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through agents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    directly to one or more purchasers, including our affiliates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    directly to stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through a combination of any of these methods of sales;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in any manner, as provided in the applicable prospectus
    supplement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we may issue the securities as a dividend or
    distribution to our existing securities holders. The prospectus
    supplement relating to the offer and sale of such securities
    will include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the name or names of any underwriters, dealers or agents and the
    amounts of securities underwritten or purchased by each of them;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the initial public offering price of the securities and the
    proceeds to us and any discounts, commissions, or concessions
    allowed or reallowed or paid to dealers;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any securities exchange on which the securities may be issued.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The securities may be sold at (i)&#160;a fixed price or prices
    which may be changed, (ii)&#160;market prices prevailing at the
    time of sale, (iii)&#160;prices related to the prevailing market
    prices at the time of sale, or (iv)&#160;negotiated prices. The
    consideration may be cash or another form negotiated by the
    parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we use underwriters for a sale of securities, the securities
    will be acquired by the underwriters for their own account and
    may be resold from time to time in one or more transactions. The
    securities may be offered to the public through underwriting
    syndicates represented by managing underwriters, or directly by
    the underwriters. Generally, the underwriters&#146; obligation
    to purchase the securities will be subject to certain conditions
    precedent. The underwriters will be obligated to purchase all of
    the securities if they purchase any of the securities. In
    connection with the sale of securities, underwriters may receive
    compensation from us or from purchasers of securities for whom
    the underwriters may acts as agents. Their compensation may be
    in the form of discounts, concessions or commissions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Underwriters may sell the securities to or through dealers, and
    such dealers may receive compensation in the form of discounts,
    concessions or commissions (which may be changed from time to
    time) from the underwriters
    <FONT style="white-space: nowrap">and/or</FONT> from
    the purchasers for whom they act as agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may agree to sell the securities to an underwriter for a
    delayed public offering and may further agree to adjustments
    before the public offering to the underwriters&#146; purchase
    price for the securities based on changes in the market value of
    the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Offers to purchase the securities may be solicited by agents
    designated by us from time to time. Any such agent involved in
    the offer or sale of securities will be set forth in the
    prospectus supplement, and any commission payable by us to such
    agent will be set forth in the prospectus supplement. Unless
    otherwise indicated in the prospectus supplement, any such agent
    will be acting on a best efforts basis for the period of its
    appointment. Any such agent may be deemed to be an underwriter,
    as that term is defined in the Securities Act, of the securities
    so offered and sold.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Offers to purchase securities may be solicited directly by us
    and sales thereof may be made by us directly to institutional
    investors or others. The terms of any such sales, including the
    terms of any bidding or auction prices, if utilized, will be
    described in the proxy supplement related thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may from time to time engage a firm to act as our agent for
    one or more offerings of our securities. We sometimes refer to
    this agent as our &#147;offering agent.&#148; If we reach
    agreement with an offering agent with respect to a
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    specific offering, including the number of securities and any
    minimum price below which sales may not be made, than the
    offering agent will try to sell such securities on the agreed
    terms. The offering agent could make sales in privately
    negotiated transactions or any other method permitted by law,
    including sales deemed to be an
    <FONT style="white-space: nowrap">&#147;at-the-market&#148;</FONT>
    offering as defined in Rule&#160;415 promulgated under the
    Securities Act, including sales made directly on the NYSE, or
    sales made to or through a market maker other than on an
    exchange. The offering agent will be deemed to be an
    &#147;underwriter&#148; within the meaning of the Securities Act
    with respect to any sales effected through an &#147;at the
    market&#148; offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If so indicated in a prospectus supplement, we will authorize
    agents, underwriters or dealers to solicit offers by certain
    institutional investors to purchase offered securities for
    payment and delivery on a future date specified in such
    prospectus supplement. There may be limitations on the minimum
    amount which may be purchased by any such institutional investor
    or on the portion of the aggregate principal amount of the
    particular offered securities which may be sold pursuant to such
    arrangements. Institutional investors to which such offers may
    be made, when authorized, include commercial and savings banks,
    insurance companies, pension funds, investment companies,
    educational and charitable institutions and such other
    institutions as may be approved by us. The obligations of any
    purchaser under these contracts will be subject to the condition
    that the purchase of the offered securities shall not at the
    time of delivery be prohibited under the laws of the
    jurisdiction to which the purchaser is subject.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless we specify otherwise in the applicable prospectus
    supplement, any series of securities issued hereunder will be a
    new issue with no established trading market (other than our
    common stock, which is listed on the NYSE). If we sell any
    shares of our common stock pursuant to a prospectus supplement,
    such shares will be listed on the NYSE, subject to official
    notice of issuance. We may elect to list any other securities
    issued hereunder on any exchange, but we are not obligated to do
    so. Any underwriters or agents to or through whom such
    securities are sold by us for public offering and sale may make
    a market in such securities, but such underwriters or agents
    will not be obligated to do so and may discontinue any market
    making at any time without notice. We cannot assure you as to
    the liquidity of the trading market for any such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To facilitate the offering of securities, certain persons
    participating in the offering may engage in transactions that
    stabilize, maintain or otherwise affect the price of the
    securities. This may include over-allotments or short sales of
    the securities, which involves the sale by persons participating
    in the offering of more securities than we sold to them. In
    these circumstances these persons would cover the
    over-allotments or short positions by making purchases in the
    open market or by exercising their over-allotment option. In
    addition, these persons may stabilize or maintain the prices of
    the securities by bidding for or purchasing securities in the
    open market or by imposing penalty bids whereby selling
    concessions allowed to dealers participating in the offering may
    be reclaimed if securities sold by them are repurchased in
    connection with stabilization transactions. The effect of these
    transactions may be to stabilize or maintain the market price of
    the securities at a level above that which might otherwise
    prevail in the open market. These transactions may be
    discontinued at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Underwriters, dealers and agents participating in the
    distribution of the offered securities may be deemed to be
    underwriters, and any discounts or commissions received by them
    and any profit realized by them upon the resale of the offered
    securities may be deemed to be underwriting discounts and
    commissions, under the Securities Act. If such dealers or agents
    were deemed to be underwriters, they may be subject to statutory
    liabilities under the Securities Act. Underwriters, dealers and
    agents may be entitled, under agreements entered into with us,
    to indemnification against and contribution toward certain civil
    liabilities, including liabilities under the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of the underwriters, dealers or agents and their
    affiliates and associates may engage in transactions with and
    perform services for us in the ordinary course of their business
    for which they receive compensation.
</DIV>

<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the securities offered hereby will be passed
    upon for us by Goodwin Procter
    <FONT style="font-variant: SMALL-CAPS">llp</FONT>. Goodwin
    Procter <FONT style="font-variant: SMALL-CAPS">llp</FONT> has
    also issued an opinion to us regarding certain tax matters
    described under &#147;Federal Income Tax Considerations Related
    to Our REIT Election.&#148;
</DIV>
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    <BR>
    33
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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements and schedule of
    DiamondRock Hospitality Company as of December&#160;31, 2008 and
    2007, and for each of the years in the three-year period ended
    December&#160;31, 2008, and management&#146;s assessment of the
    effectiveness of internal control over financial reporting as of
    December&#160;31, 2008 have been incorporated by reference
    herein and in the registration statement in reliance upon the
    reports of KPMG LLP, independent registered public accounting
    firm, incorporated by reference herein, and upon the authority
    of said firm as experts in accounting and auditing.
</DIV>

<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and special reports, proxy statements
    and other information with the SEC. You may read and copy any
    document we file with the SEC at the SEC&#146;s public reference
    room at 100&#160;F&#160;Street, N.E. Room&#160;1580,
    Washington,&#160;D.C. 20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information about the public reference room. The SEC
    also maintains a website that contains reports, proxy and
    information statements and other information regarding
    registrants that file electronically with the SEC at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    You can inspect reports and other information we file at the
    offices of the NYSE, 20&#160;Broad Street, New York, NY 10005.
    In addition, we maintain a website that contains information
    about us at www.drhc.com. The information found on, or otherwise
    accessible through, our website is not incorporated into, and
    does not form a part of, this prospectus or any other report or
    documents we file with or furnish to the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a &#147;shelf&#148; registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    under the Securities Act relating to the securities that may be
    offered by this prospectus. This prospectus is a part of that
    registration statement, but does not contain all of the
    information in the registration statement. We have omitted parts
    of the registration statement in accordance with the rules and
    regulations of the SEC. For more detail about us and any
    securities that may be offered by this prospectus, you may
    examine the registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    and the exhibits filed with it at the locations listed in the
    previous paragraph.
</DIV>

<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; in
    this prospectus certain information we file with the SEC, which
    means that we may disclose important information in this
    prospectus by referring you to the document that contains the
    information. The information incorporated by reference is
    considered to be a part of this prospectus, and the information
    we file later with the SEC will automatically update and
    supersede this information. We incorporate by reference the
    documents listed below that we filed with the SEC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;27, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended June&#160;19, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Definitive Proxy Statement on Schedule&#160;14A filed on
    March&#160;4, 2009, as amended by additional definitive proxy
    materials filed on March&#160;6, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on April&#160;15, 2009 and July&#160;27, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The description of our common stock, $0.01&#160;par value per
    share, contained in our Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on May&#160;25, 2005, including any amendment or report
    filed for the purpose of updating such description (file number
    <FONT style="white-space: nowrap">001-32514);&#160;and</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all documents filed by us with the SEC pursuant to Section
    13(a), 13(c), 14 or 15(d) of the Securities Exchange Act from
    the date of this prospectus and prior to the termination of the
    offering of the underlying securities; provided, however, that
    we are not incorporating by reference any additional documents
    or information furnished and not filed with the SEC.
</TD>
</TR>

</TABLE>
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    <BR>
    34
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may request a copy of these documents, and any exhibits we
    have specifically incorporated by reference as an exhibit in
    this prospectus, at no cost by writing us at the following
    address or calling us at the telephone number listed below or
    via the Internet at the website listed below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times"> DiamondRock
    Hospitality Company<BR>
    6903 Rockledge Drive, Suite&#160;800<BR>
    Bethesda, MD 20817<BR>
    Attention: Investor Relations<BR>
    <FONT style="white-space: nowrap">(240)&#160;744-1150</FONT><BR>
    Internet Website: www.dhrc.com
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Readers should rely on the information provided or incorporated
    by reference in this prospectus or in the applicable supplement
    to this prospectus. Readers should not assume that the
    information in this prospectus and the applicable supplement is
    accurate as of any date other than the date on the front cover
    of the document.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information contained on our website does not constitute a
    part of this prospectus, and our website address supplied above
    is intended to be an inactive textual reference only and not an
    active hyperlink.
</DIV>
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    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 24pt">DiamondRock Hospitality
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">11,000,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 31%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>January&#160;18, 2011</B>
</DIV>

<CENTER style="font-size: 1pt; width: 31%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 20pt">Goldman, Sachs &#038;
    Co.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

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