HOLIDAY INN EXPRESS & SUITES CARTHAGE 2295 SE Loop Carthage, TX 75633

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1 2295 SE Loop Carthage, TX

2 EXECUTIVE SUMMARY VITAL DATA CURRENT YEAR 1 Price $5,400,000 CAP Rate 13.37% 12.48% Net Operating Income $721,851 $673,841 Down Payment 20% / $1,080,000 Net Cash Flow After Debt Service 35.91% / $387, % / $339,835 Loan Amount $4,320,000 Total Return 43.03% / $464, % / $416,733 Loan Type Proposed New Interest Rate / Amortization 6.00% / 25 Years Price/Room $78,261 Ownership Type Fee Simple Number of Rooms 69 Rentable Square Feet 38,442 Number of Buildings 1 Number of Stories 3 Year Built 2008 Lot Size 1.92 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Sunland Field Services Inc 920 Tyson 730 Ritter Construction Company 625 Courtney Construction 265 Louisiana-Pacific Corporation 250 Smith Equipment Rental & Svcs 233 Pinnergy Ltd 222 East Texas Med Center-Carthage 200 Genpak Southwest LP 180 Ivan Smith Furniture Co LLC 160 H-E-B Food Store Koch Industries Inc 135 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 675 7,420 9, Census Pop 673 7,426 9, Estimate HH 275 2,880 3, Census HH 276 2,893 3,583 Median HH Income $44,763 $47,265 $49,488 Per Capita Income $22,405 $26,619 $26,117 Average HH Income $53,244 $66,940 $67,086 # 2

3 INVESTMENT OVERVIEW The Holiday Inn Express & Suites is priced at $5.4M which is 3.08 times the 2017 anticipated year-end room revenue. The anticipated 2017 capitalization rate is expected to be 12.2 percent, based off the 2017 Annualized Profit & Loss statement. The Formula Blue Property Improvement Plan is anticipated to cost a new investor roughly $800K. After completion of the Formula Blue Property Improvement Plan a new investor can expect over a 35 percent cash-on-cash return, assuming a new investor leverages a 20 percent equity down payment for a new loan with a 6 percent interest rate, amortized over 25 years. INVESTMENT HIGHLIGHTS 69-Room, Interior Corridor, Limited-Service Hotel Priced at 3.08 Times Anticipated 2017 Year-End Room Revenue 12.2 Percent Capitalization Rate Based Off 2017 Annualized P&L Highway Frontage Location with Accessibility Directly Off Highway 59 Less than Three Miles from Panola College 3

4 PROPERTY OVERVIEW The Holiday Inn Express & Suites is a 69-room, interior corridor, three-story hotel located in Carthage, Texas. Built in 2008, the hotel has a wood frame and a stucco and brick exterior with a pitched roof. Amenities at the hotel include an outdoor pool and spa, fitness center, business center, and coined laundry and vending machines. The guest rooms include a refrigerator, microwave, double glazed windows, individually controlled air conditioning, and a flat screen television. LOCATION OVERVIEW Carthage is at the intersection of US Highways 59 and 79, 42 miles west of Shreveport, Louisiana, near the center of Panola County. The discovery of oil and gas created an economic boom for Panola County that still pays dividends to the area today. Also known as the Gas Capital of the U.S., oil and gas interests remain a vital part of the economy for Carthage and Panola County. Other industries tapping into the natural resources of the area include timber, logging and wood processing facilities. Other manufacturing and processing plants also enhance the economic base of the area. Panola College, located in Carthage, hosts annual sporting events and rodeo events on campus, which contributes to increased demand for lodging in the area. Common Area Amenities Business Center Computer & Printer Fitness Center Outdoor Swimming Pool & Spa Dining Area Guest Room Amenities Refrigerator Microwave Double Glazed Windows Individually Controlled Air Conditioning Flat Screen Television # 4

5 PROPERTY SUMMARY THE OFFERING Property Holiday Inn Express & Suites Carthage Price $5,400,000 Property Address 2295 SE Loop, Carthage, TX SITE DESCRIPTION Number of Rooms 69 Year Built/Renovated 2008 Ownership Type Fee Simple Lot Size 1.92 acre(s) CONSTRUCTION Foundation Concrete Framing Wood Exterior Stucco and Stone Parking Surface Concrete Roof Angled Shingles MECHANICAL HVAC PTAC Elevators Yes Fire Protection Fire Sprinkler System CHANGE TO FRANCHISE Application Fee $50,000 Minimum Parent Company IHG Royalty / Marketing Fee 6% of GRR / 3% of GRR ROOM TYPES NUMBER OF ROOMS ROOM TYPE 26 King 25 Queen 15 Suite/Kitchenette 3 ADA Compliant 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)