1378453--3/2/2009--TRAVELCENTERS_OF_AMERICA

related topics

{cost, operation, labor}

{investment, property, distribution}

{customer, product, revenue}

{cost, regulation, environmental}

{capital, credit, financial}

{system, service, information}

{condition, economic, financial}

{provision, law, control}

{control, financial, internal}

{gas, price, oil}

{financial, litigation, operation}

{property, intellectual, protect}

Our operations have consistently produced losses. Our financial results are being affected by the current recession in the U.S. economy and the state of the credit market. Reduced consumer spending has resulted in less imported consumer goods into the U.S. and less business at our travel centers; protectionist legislation could materially reduce imports and reduce our business. Fuel price increases and fuel price volatility negatively affect our business. Our labor costs are difficult to control. Our properties require regular and expensive maintenance and capital investments. Our operating margins are narrow. An interruption in our fuel supplies would materially adversely affect our business. We are involved in litigation which is expensive and may have adverse impacts upon our business. We rely upon trade creditors for a significant amount of our working capital and the availability of alternative sources of financing may be limited in light of the current turmoil in the global credit markets. Our customers may become unable to pay us when we extend credit. Our storage and dispensing of petroleum products create the potential for environmental damages, and compliance with environmental laws is often expensive. Our franchisees may become unable to pay our rents and royalties and we have limited control of our franchisees. We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business Risks arising from our formation and certain relationships We have been recently reorganized. We are obligated to pay material amounts of rent to Hospitality Trust. Our business is subject to possible conflicts of interest with Hospitality Trust and Reit Management. We are dependent upon Reit Management and the management services it provides us. Ownership limitations and anti-takeover provisions may prevent you from receiving a takeover premium. We may be unable to meet financial reporting and internal control standards for a publicly owned company.

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1378453--3/2/2009--TRAVELCENTERS_OF_AMERICA_LLC