As at March 31, 2007, the Company employed approximately 340 full and part-time employees at its properties. Approximately 70% of the Company’s employees are represented by labour unions. Labour relations with these unions are governed by two collective agreements, one of which expired on January 31, 2006 and the other expires on December 31, 2007. The collective agreement which expired January 31, 2006 is currently under negotiation and the Company does not anticipate any major problems in reaching an agreement with the union.

There can be no assurance that the Company will not experience job action including strikes and / or labour stoppages, or any other type of conflict with unions and employees, which could have a material adverse effect on the Company’s business, operating results and financial condition.

The Company believes its labour relations are good and management does not anticipate any events which may significantly impact the day-to-day operations of its hotel properties.

One of the Company’s hotels is located in Edmonton, Alberta and the high price of crude oil has increased the activity in the tar sands projects north of the city. This, coupled with the general strength of the Alberta economy, has significantly reduced the available labour pool. The Company offers competitive wages and a safe and friendly work environment in a bid to secure the necessary workforce to maintain the high service levels demanded of a Crowne Plaza hotel property, but there is a risk that suitably qualified persons may not be available to fill vacant positions, resulting in a potential drop in service levels