FOR SALE CALL FOR OFFERS. Pacific Marina Inn - Honolulu 2628 Waiwai Loop Honolulu, Hawaii Thursday, Oct. 16, 2014 Call for Details

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1 FOR SALE Pacific Marina Inn - Honolulu 2628 Waiwai Loop Honolulu, Hawaii $20,000, rooms 8.25% Cap Rate (YE Forecast) Fee Simple Honolulu (updated October 8, 2014) CALL FOR OFFERS Thursday, Oct. 16, 2014 Call for Details An Exclusive Offering For further information please contact: Ron Watanabe Harry Pflueger Jack Carr (808) (949) (949) Hawaii License #RB Oahu Market, RevPAR improvements over the past several years, bright outlook for continued growth Limited Competition serving the market Strong, Stable Cash Flow Fee Simple, while most local hotels are located on leasehold land Unencumbered by Management or Affiliation High Barriers to Entry due to land cost and high cost of development

2 INVESTMENT HIGHLIGHTS \ Maxim Hotel Brokerage, Inc. is pleased to present the 119-room Pacific Marina Inn, located at 2628 Waiwai Loop, Honolulu, Hawaii. This is an excellent opportunity for an investor to purchase a hotel on fee simple land with a strong return in one of nation s most desirable recreation and tourism markets. OVERVIEW Pacific Marina Inn is a three-story exterior-corridor full-service hotel located near the Honolulu Airport. It is positioned as the low-cost provider for lodging near the Honolulu Airport, the primary gateway for travel to/ from Hawaii. The Property benefits from extremely high barriers to entry. Please consider the following highlights: Desirable Market Oahu is the primary island for Hawaiian tourism, Waikiki is located 20 minutes from the hotel, and is the primary tourist destination resort area within Hawaii. Tourism has reached record levels and prospects for continued growth are strong due to burgeoning growth in Asian tourism. Strong and Stable Cash Flow - Trailing NOI of $1.54 million and 2014 projected NOI (actual/forecast) of nearly $1.65 million. Fee Simple Site unusual for hotels located in the market. Most hotels, including the two primary competitors at the airport, are on leasehold land. Stable Demand Demand near the airport is more diversified compared to the competitive tourism locations. The airport market gets demand from local commercial/industrial business, airport related business, and military in addition to budget-oriented tourism/transient demand. Pearl Harbor and several area attractions are proximate to this location. Limited Competition - Pacific Marina Inn is one of three hotels serving the airport market, and is positioned as the low cost provider of lodging for the market.

3 INVESTMENT HIGHLIGHTS \ Major Barriers to Entry - Due to high land cost, limited availability of land, and high cost of construction there are extremely high barriers to entry in this market. Positioning Upside- Although occupancy is typically in the 80% range, opportunity exists to renovate the Property, earn better guest reviews and improve ADR as the Oahu market continues to improve and thrive. The hotel ranked #81 of 82 on TripAdvisor for all Oahu hotels. VALUE ENHANCEMENT OPPORTUNITIES Complete a renovation of the guestrooms and public space to improve the hotel s curb appeal and positioning within the market. An owner/operator with a hands-on approach should be able to drive revenues and control expenses in an improving market. The hotel does not currently have an elevator. Addition of an elevator would improve the guest experience as part of a repositioning strategy. STRONG, STABLE CASH FLOW The hotel achieved Net Operating Income (NOI), after deductions for management and reserves, of $1.54 million for Trailing-12-months through September, The 2014 Actual/Forecast anticipates improvement in NOI to $1.65 million. Despite the Property s strong cash flow, it is still operating well below the RevPAR for the competitive set of hotels, indicating upside to improve. Further, the demand base at the airport is diversified, including not only tourism, but also military demand as well as demand created by the airport and surrounding commercial/industrial users. The diversified demand, coupled with high barriers to entry, ensure the stability of this cash flow. MARKET PERFORMANCE Waikiki is located only 20 minutes from the airport, and comprises Oahu s primary hotel market; the other markets generally follow Waikiki s overall trends. Waikiki s occupancy increased from 79.5% in 2010 to 85.2% in ADR increased at a compound annual rate of 11.9% to $209 in 2013 and RevPAR increased $59 during this time to $178. Increased airlift and rising visitor counts combined with a supply constrained market position ensure continued growth in the Waikiki market performance. While ADR for the airport market is considerably lower than Waikiki, the high rates in Waikiki allow the airport ADR to continue to rise. Mature Landscaping - South View

4 PROPERTY OVERVIEW SUMMARY OF FACILITIES Address 2628 Waiwai Loop Honolulu, Hawaii Guestrooms 119 Food & Beverage Restaurant (Lagoon Chinese) is leased; and lounge (Canoe Hut), with liquor license, is operated by hotel ownership Meeting Facilities None Other Amenities, Facilities Outdoor courtyard pool, sundeck Building Area 32,435 SF Construction Commercial Laundry Management Foundation poured reinforced concrete perimeter footings and column pads Construction hollow tile masonry and some wood framing Roof - flat with waterproof membrane cover. The restaurant/lounge building has a pitched roof with wood shingles. Three commercial washers (two-40 lb, one-20 lb), four-20 lb gas dryers Self-managed, though the hotel contracts with Castle Hotels for sales, marketing and reservation services (terminable). Number of Stories Hotel Site 3, exterior corridors 1.13 acre site Assessor s Parcel Number Ownership Interest Fee simple Year Built 1960 Zoning Parking HVAC Windows Guest Laundry I-2 Industrial (legal non-conforming use) 57± spaces Through-wall PTAC units, rooftop unit for lobby and restaurant/lounge Single pane Two washers and two dryers Phone System Mitel switch installed in 2006 Front Desk PMS Room Master software Partial Water View from Third Story Corridor Keehi Laggon Park in Foreground Leases 2011 Ford 150 van

5 PROPERTY OVERVIEW