STAYBRIDGE SUITES COVINGTON 140 Holiday Blvd Covington, LA 70433

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1 140 Holiday Blvd Covington, LA

2 EXECUTIVE SUMMARY VITAL DATA MARCH 2017 T-12 YEAR 1 Price $6,500,000 CAP Rate 7.83% 8.45% Net Operating Income $518,544 $549,481 Down Payment 30.71% / $1,996,351 Net Cash Flow After Debt Service 8.45% / $168, % / $199,568 Loan Amount $4,635,050 Total Return 12.74% / $254, % / $285,199 Loan Type Proposed New Interest Rate / Amortization 5.75% / 25 Years Price/Room $65,000 Ownership Type Fee Simple Number of Rooms 100 Rentable Square Feet 126,324 Number of Buildings 1 Number of Stories 4 Year Built 2009 Lot Size 2.9 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES GE 2,002 ST TAMMANY PARISH HOSPITAL 1,519 Chevron 1,500 Florida Marine LLC 900 Lakeview Rgnal Med Ctr Aux Inc 800 Hos 700 Saint Tammany Prsh Hsptl Svc 560 Consolidated Grain & Barge Inc 550 St Tammany Parish Government 529 Winn-Dixie 498 Walmart 491 Trinity Marine Products Inc 400 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 4,301 30,860 78, Census Pop 3,967 28,645 72, Estimate HH 1,732 12,003 29, Census HH 1,595 11,098 27,663 Median HH Income $71,053 $69,141 $71,244 Per Capita Income $41,127 $37,686 $38,634 Average HH Income $102,108 $96,842 $100,603 # 2

3 INVESTMENT OVERVIEW The Staybridge Suites located in Covington, Louisiana, exclusively marketed by Marcus & Millichap, offers investors an opportunity at a premier upper scale extended stay brand. This IHG-branded asset, constructed in 2009, is offered well below replacement costs at $65,000 per room. The subject property, with absentee ownership, is offered unencumbered currently operated by an out-of-state Third Party management company. On the contrary, savvy investors will notice this property ($92.06) has consistently fallen below the comp set ($97.21) in ADR despite its upper scale amenities. Ultimately, this disparity results in a RevPar gap ($62.98) vs the comp set ($64.35). The Staybridge Suites is currently being offered for sale at $6.5M. Based on TTM March 2017 Net Operating Income of approximately $ , this represents a capitalization rate of 8%. New Ownership will be required to complete IHG PIP...see agent for details. Demand Generators: Staybridge Suites is ideally located off Hwy 190, near Interstate 12, which allows guests easy access to many of the local focal points of the area. This area continues to be one of the fastest growing communities in the nation. Close proximity to New Orleans (35 miles), transportation accessibility (Interstate 10, 12, 59), low business costs, availability of labor, excellent school system, low crime rate and world class medical facilities are important factors as to why companies are gravitating towards this part of the state. Furthermore, the unique scenic views of local bayous blended with the talents of local artists allow this area to be a continued hot spot for the leisure traveler. INVESTMENT HIGHLIGHTS 100-Room, Upscale Residential Style Hotel with Resort Style Amenities Priced below Replacement Costs - $65,000 / key Perfectly Located Off Interstate 12 (60 miles E of Baton Rouge, 35 miles N of NOLA) Multiple Demand Generators including NEW Versailles Business Center (92 Acres) 2009 Construction - Priced Below Replacement Cost ($65,000/ Key) Part of IHG Family of Hotels - World's Largest Hotel Loyalty Program 3

4 PROPERTY OVERVIEW Marcus & Millichap is proud to present the Staybridge Suites by IHG in Covington, Louisiana. This 100-room, upscale, extended stay property offers notable amenities such as wireless high-speed Internet, business center, outdoor pool with patio, fitness center, guest laundry, and a 9-seat theater (media) room. Furthermore, this hotel offers a full American Breakfast bar with dining area, a Weekday (Monday to Wednesday) Evening Social and 24 Hour Sundry Shop This resort-style hotel is ideally located right off Interstate 12 in close proximity to both Baton Rouge (65 miles) and New Orleans (35 Miles) features a 2250 sq ft Conference Center that can be separated in 3 individual production spaces. The IHG Advantage Staybridge Suites by IHG is known for being more elaborate than the typical hotel investment. Since 1998, Staybridge Suites has been the fastest growing upscale extended stay brand to reach the 50 and 100 hotel milestones. As of today, the brand has nearly 200 locations and their commitment to an impressive home-like comfort that continues to further the brand's growth. As a result, the Staybridge Suites caters to travelers who stay at least 5 nights per week. Also 80% of the clientele are business travelers. In addition, this property has the ability to leverage IHG, the world's largest Hotel Loyalty Program and the IHG operating system designed to drive consumers to the individual properties. Common Area Amenities 9 Seat Theater Room (Media Room) Outdoor Pavilion Putting Green Full American Breakfast/ Evening Social Hour Additional Recreational Storage Units As the Year 2020 approaches, reports indicate that over 50% of ALL travelers will be millennials, born between Also, it is anticipated that this growing demographic will travel more than any past generation. However, these travelers are looking fulfill unique cultural experience recommended by utilizing social networks. The Staybridge Suites in Covington has the distinct advantage to cater to these generation of travelers given it unparalleled amenities, superior brand and prime location. Guest Room Amenities Apartment Style Refrigeration with Ice Maker Full Furnished Kitchen Dishwasher Pizza Oven Microwave # 4

5 PROPERTY SUMMARY THE OFFERING Property Staybridge Suites Covington Price $6,500,000 Property Address 140 Holiday Blvd, Covington, LA Assessors Parcel Number SITE DESCRIPTION Number of Rooms 100 ADA Rooms 6 Number of Stories 4 Year Built/Renovated 2009 Ownership Type LLC Lot Size 2.9 Acres Parking 130 Location Highway CONSTRUCTION Foundation Post Tension Framing Wood Exterior Stucco / Hardy Siding / Stone Parking Surface Yes Roof Shingle MECHANICAL HVAC 2 AON Units (Dry Air) - 25 tons in Public Area Elevators 2 Fire Protection R 13 Sprinklered CHANGE TO FRANCHISE Application Fee $50,000 Parent Company InterContinental Hotels Group Term 15 year (10 year window) ROOM TYPES NUMBER OF ROOMS ROOM TYPE 6 ADA Compliant 60 Queen 9 King 14 Double 5

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7 PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. FOR MORE INFROMATION CALL: Manish Sthanki Associate, National Hospitality Group Office: (225) Mobile: (225)