GlobeSt.com: The Highland portfolio deal was pretty complex, can you break down how Ashford gained ownership?

Bennett: When we originally made the loan on the Highland portfolio, we made it and we were happy that it was a loan and were happy to collect our interest payments on it. When the world started to turn, we saw that position might be in danger of getting wiped out by the more senior lenders and that was just not acceptable to us. It happened to our position on the Extended Stay portfolio, we weren’t going to let it happen again. So we spent a lot of time, my team of David Brooks, Derrick Eubanks and Doug Kessler, spent 14 months working on that Highland transaction with the senior lenders, the borrower at the time and with our partner, Prudential, in order to bring about a consensual foreclosure and restructure. With five or seven parties involved and to do it with consensus, was very difficult and complex, but our team was up to it and they got it done with some very favorable metrics. About $158,000 price per key, at a price that is about the same as what the Highland management team bought those assets for back in the first part of the last hotel cycle. And significantly below what JER paid for them in 2007, so that was a unique opportunity for us, it was a of size which was great for us. We needed that.

We’re looking for other opportunities like that. That mezz position we already happened to be in, there’s another mezz position we’re already in and we’re seeing if that restructure will work and we’re out looking for others, but they’re hard to come by.

We have to find some ways besides these great bidding wars, because we just don’t think that’s in the best interest of our shareholders because of our cost of capital.

GlobeSt.com: Is this a model that you can repeat or is it a one-off strategy?

Bennett: It’s not a model so much, because we make loans so they perform. If we buy a position where a loan’s in trouble, then it might be a model, but it’s difficult to find those opportunities. So we’re on the look-out, we’ll see if we’re able to find another one. There is another mezz loan we have on the books where the borrower has filed for bankruptcy and we’re in discussion with parties about restructuring that and maybe coming out with an ownership interest in that portfolio, but that’s very early in the process and we’ll see if that comes out or not.

It’s going to be difficult to originate loans with that objective, it’s something we wouldn’t do. There may be opportunities to work the existing ones we have or we can go out and buy some loans that we could affect that strategy.

GlobeSt.com: Is there an asset class or region or city where you want a little more exposure right now?

Bennett: We generally like to have a diversified exposure. We like to have the percentage of our rooms line up with the same percentages of how the rooms are distributed around the country. Within that set, we’d certainly like to be in more urban centers, particularly because our investors like that, but it really comes down to pricing. Right now you can pay quite a premium for that urban location, so right now, the economics might be better for the suburban location. And so, generally I’d say we’re agnostic. We’ll look at most deals, because there’s different paths to success for an asset depending on its location.

GlobeSt.com: How do you see 2011 and 2012 panning out?

Bennett: You know we’re hopeful. The industry has been very strong these first few months of the year and has actually increased over the first months, it’s stronger. The growth is stronger. The economy is frail and we’re concerned about that. But other than just being careful and watching expenses, we have to keep plowing on, so we’re hopeful that the rest of the year for the industry and next year will be even better. We’ll see what the future holds. I don’t think anybody has seen any indication in the hotel industry, a softening, but I hope that holds true. But so far, so good. And we’ll keep plowing away, but we’re pretty optimistic.

GlobeSt.com: Group travel is on its way back, do you see leisure coming back any time soon?

Bennett: Yes, leisure will come back, it’s been back. Group is growing. I think one of the under-reported areas is transient corporate business. There’s been a lot of focus on the group because of the higher rate that group will produce compared to transient leisure, and rightfully so, and it’s coming back, but corporate transient produces even higher rates than group does, and it has a lot of opportunity to come back as well. And that could be a real driver for the industry and for us in particular, we have a higher percentage of corporate transient than most of our peers do and that will be a great driver for us. So we’re keeping our fingers crossed.