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Charlotte Lebioda grew up in the hotel business. Her parents owned and operated a 100-room limited service hotel for 20 years. When Charlotte graduated from

Charlotte Lebioda grew up in the hotel business. Her parents owned and operated a 100-room limited service hotel for 20 years. When Charlotte graduated from hospitality school, her parents retired, turning the business over to Charlotte. Her hotel has an appraised value of $6,000,000 and total mortgage debt of $2,000,000, and her initial owners' equity was $4,000,000. The franchisor with which Charlotte's property is associated has approached her to see if Charlotte would like to develop a second property that would be located 10 miles from her current hotel. The franchisor is proposing a 100-room property, which can be built at a cost of $8,000,000. In addition, the franchisor has indicated that a special financing arrangement has been put in place that allows existing franchisees to obtain 100% financing if their current properties score in the top 10% of the franchisor's annual inspection program. Charlotte's property qualifies for the special financing offer

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