BAYMONT INN & SUITES LONGVIEW 502 S Access Rd Longview, TX 75602

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1 502 S Access Rd Longview, TX

2 EXECUTIVE SUMMARY VITAL DATA CURRENT YEAR 1 Price $2,100,000 CAP Rate 11.81% 12.68% PIP $0 Net Operating Income $248,029 $266,315 Down Payment 20% / $420,000 Net Cash Flow After Debt Service 28.13% / $118, % / $136,424 Loan Amount $1,680,000 Total Return 35.25% / $148, % / $166,329 Loan Type Proposed New Interest Rate / Amortization 6.00% / 25 Years Price/Room $20,000 Ownership Type Fee Simple Number of Rooms 105 Rentable Square Feet 41,228 Number of Buildings 2 Number of Stories 2 Year Built 1983 Lot Size 2.99 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Joy Glbal Lngview Oprtions LLC 1,001 Aaon 965 Davis Donna Phipps MD 825 Letourneau Tech Stl Pdts 800 Letourneau University 765 Westlake Chemical Corporation 600 Gregg Indus Insulators Inc 441 Clark Enterprises Inc 429 Walmart 375 Champion Ems 356 Neiman Marcus National Svc Ctr 350 Tcim Services Inc 350 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2017 Estimate Pop 1,958 17,469 35, Census Pop 1,915 17,456 35, Estimate HH 723 5,556 12, Census HH 710 5,565 12,025 Median HH Income $27,724 $33,307 $36,569 Per Capita Income $13,804 $15,533 $19,102 Average HH Income $37,290 $46,131 $53,177 # 2

3 INVESTMENT OVERVIEW The Baymont Inn & Suites is offered significantly below replacement cost at $2,100,000 or at $20,000 per Key. According to the June 2017 STAR Report, the Baymont Inn & Suites is under performing its competitive set with a RevPAR penetration of just 47.1 percent. A new investor should immediately be able to improve the hotels existing performance through marketing efforts and by improving online reviews. Alternatively, a new investor may convert the Baymont Inn & Suites into a Red Roof Inn & Suites. By doing so a new investor should be able to immediately increase the hotels performance. According to a recent market survey a newly converted Red Roof Inn & Suites should be able to produce an ADR of $59 and room occupancy of 38 percent in its first year. This would result in year-one room revenues of just under $860K which is the basis for our Pro-Forma Profit & Loss statement. INVESTMENT HIGHLIGHTS 105-room, 1984 construction, Exterior Corridor, Two-Story Baymont Inn & Suites Priced Significantly Below Replacement Cost - $20,000 Per Key Upside Potential With Possible Conversion to Red Roof Inn & Suites Great Highway Location with Direct Access and Visibility from Interstate-20 3

4 PROPERTY OVERVIEW Property Overview: The Baymont Inn & Suites In Longview, Texas is a 105-room, economy hotel conveniently located off Interstate Highway 20. The two-story hotel has an exterior corridor and was built in The hotel offers several common area amenities such as RV/bus/truck/car parking, business center, 400 square feet of meeting space, outdoor pool, and cribs available. The guest rooms also feature a flat screen television, microwave, and refrigerator. Location Overview: Longview, Texas, is located in East Texas, where Interstate 20 and U.S. Highways 80 and 259 meet just north of the Sabine River. The city offers entertainment, attractions and ongoing seasonal festivals such as the Great Texas Balloon Race in July, the Zonta Antique Show and Sale in March, and the East Texas Boat, RV and Camping Expo in January. Nearby businesses include Eastman Kodak, Dana Corporation, SYSCO and TCIM. Good Shepherd Medical Center is eight miles away from the Baymont Inn Express & Suites Longview. Downtown Longview is just six miles from the hotel's location. Common Area Amenities RV/Bus/Truck/Car Parking Business Center 400 Square Feet Meeting Room Cribs Available Outdoor Pool Guest Room Amenities Flat Screen Television Microwave Refrigerator Iron and Ironing Board Work Desk # 4

5 PROPERTY SUMMARY THE OFFERING Property Baymont Inn & Suites Longview Price $2,100,000 Property Address 502 S Access Rd, Longview, TX SITE DESCRIPTION Number of Rooms 105 Number of Stories 2 Year Built/Renovated 1984 Ownership Type Fee Simple Parking Ample Location Highway CONSTRUCTION Foundation Concrete Framing Wood Exterior Stucco Parking Surface Concrete Roof Angled Shingles MECHANICAL HVAC PTAC Elevators No Fire Protection Fire Alarm / Sprinkler System CHANGE TO FRANCHISE Application Fee $26,000 Mimimum Parent Company Wyndham Hotel Group Term (Term) Royalty / Marketing Fee 5% of GRR / 3.5% of GRR NUMBER OF ROOMS ROOM TYPES ROOM TYPE 77 Queen 27 King 1 Suite/Kitchenette FIRST TRUST DEED PROPOSED FINANCING Loan Amount $1,680,000 Loan Type Proposed New Interest Rate 6.00% Amortization Loan Term 25 Years 25 Years Loan to Value 80% Debt Coverage Ratio 2.05 SECOND TRUST DEED Loan Type All Cash 5

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7 PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. FOR MORE INFROMATION CALL: Skyler Cooper Vice President, National Hospitality Group Office: (303) Mobile: (540) Joseph Jaques Associate, National Hospitality Group Office: (972) Mobile: (979)