The hotel has received more than $11 million in upgrades since 1998 and is in excellent physical condition. We plan to continue to enhance upon its current high quality with approximately $3.5 million of additional improvements over the next several years.

The Algonquin is our first Manhattan property, and marks our fourth acquisition in 2005, with several more pending. The hotel, built in 1902, has always been on the cutting edge of guest comfort and social awareness. It was the first leading hotel in New York to receive ladies traveling alone, and the first to have electronic door locks, smoke detectors and air conditioning in all of its rooms. The Algonquin is an extraordinary hotel, and our goal is to live up to its past and further enhance its legend.

HEI acquired more than $1.5 billion in hotels over the past 36 months. We believe the outlook for hotel investment remains quite positive. Our most recent fund, which will allow us to acquire approximately $1.5 billion in assets over the next 36 months, was originally targeted at $350 million, but became over-subscribed.

Industry experts forecast a positive outlook for the hotel industry for at least the next several years. We have been one of the largest private acquirers of hotel real estate in the past three years, and we expect to continue that pace into the foreseeable future. Our strategy is to be a long-term owner combined with strong property management. We will seek to maximize profits through strategic investments in our hotels to keep them among the most competitive within their respective submarkets. We also recently significantly strengthened what already was a first-class hotel management team to provide even greater focus on superior guest satisfaction.

HEI acquired more than $1.5 billion in hotels over the past 36 months. We believe the outlook for hotel investment remains quite positive. Our most recent fund, which will allow us to acquire approximately $1.5 billion in assets over the next 36 months, was originally targeted at $350 million but became over-subscribed. We continue to target investing approximately $500 million per year and are gratified by our investor's confidence in us.

We believe the long-term outlook for hotel investment remains quite attractive. While we are not driven by a specific timetable, our over- arching objective is to strategically invest $500 million annually over the next several years in the acquisition and development of primarily hotel- related opportunities. We have carefully assembled a first class investment team over the last several years, and our depth in this area continues to fuel a very active pipeline of prospective investment opportunities. HEI now has 13 professionals, with more than 185 years of collective experience, driving its acquisition and development effort with several additional positions to be filled in the coming months.