Lakeview Hotel REIT and Lakeview Management Inc. jointly manage the hotels owned by Lakeview Hotel REIT through a management partnership. Lakeview Hotel REIT receives 25% of the management fees generated by the management partnership. This joint management structure provides Lakeview Hotel REIT with an ongoing source of management fee revenue and lessens Lakeview Hotel REIT’s requirements for employees and office space. Management services provided to the REIT by Lakeview Management Inc. include:

• »  Day to day supervision of and communication with the property manager;
• »  Ensuring compliance with franchise standards, policies and programs;
• »  Coordinating equipment and purchasing supplies when economies can be achieved or uniform specifications must be maintained;
• »  Coordination of maintenance programs at property level;
• »  Coordination of advertising, marketing and sales for individual properties or cooperatively for multiple properties when practical, which can lead to certain economies of scale;
• »  Administration of all accounting functions for the property;
• »  Communication with independent auditors, as required;
• »  Human resource management;
• »  Reporting to regulatory agencies on behalf of a given property, as required
• »  Providing for operating and capital budgets in concert with property manager;
• »  Providing for legal services (excluding litigation) for issues originating at property level. All external legal fees will be charged back to respective hotels as incurred;
• »  Negotiating comprehensive insurance coverage for the property;
• »  Negotiating equipment leases or rentals, as required; and
• »  All other matters normally associated with first class hotel management.