This excerpt taken from the LGN 10-K filed Mar 15, 2007.
Our current joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on joint venture partners financial condition and performance, and any disputes that may arise between us and our joint venture partners.
We currently have an ownership interest in three of our hotels through joint ventures. We generally will not be in a position to exercise sole decision-making authority regarding the hotels owned through such joint ventures. Investments in joint ventures may, under certain circumstances, involve risks not present when a third party is not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their share of required capital contributions. Joint venture partners may have business interests, strategies or goals that are inconsistent with our business interests, strategies or goals. Joint venture investments also entail a risk of impasse on decisions, such as acquisitions or sales. Any disputes that may arise between us and our joint venture partners may result in litigation or arbitration that could increase our expenses and could prevent our officers and/or directors from focusing their time and effort exclusively on our business strategies. Consequently, actions by or disputes with our joint venture partners might result in subjecting hotels owned by the joint venture to additional risks. In addition, we may in certain circumstances be liable for the actions of our third-party joint venture partners.