A centralized accounting and control system that minimizes costs at the hotel level is possible because of JHM's substantial investment in the following:

• Financial Reporting & Management Systems
• Extensive and Experienced Support Staff

Effective control of expenses is one of JHM's core competencies. Labor costs are tightly controlled via a highly developed labor management system. Detailed reports are generated and posted to the Company's intranet site each day so that managers can precisely align labor costs to occupancy and budget.

Discretionary expenses are controlled through bottom line management with an Owner's perspective. Line item costs and overall performance are benchmarked against hotels within the Company's portfolio, and against peer group averages. Purchases from vendors are placed through a centralized purchasing department resulting in improved efficiency at the hotel, and better execution through negotiated pricing and volume discounts. All contracts are aggressively negotiated to attain the best possible pricing.

The bottom line is a better bottom line: JHM properties consistently post higher operating margins than its competitive set.