SAN ANTONIO SELECT-SERVICE PORTFOLIO

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1 O FFE R IN G S UMMA RY Hampton Inn Hampton Inn & Suites / Fairfield Inn & Suites NE/

2 INVESTMENT OVERVIEW Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker ( HFF ) is pleased to offer on an exclusive basis the opportunity to acquire fee-simple interest three recent vintage, Hilton and Marriott-branded hotels located in, Texas ( Portfolio, Properties or Hotels ), totaling 313 guestrooms and suites. The Hotels, which opened between 2000 and 2009, are strategically located along major traffic arteries in the /Austin corridor, providing great visibility and accessibility. This opportunity provides potential investors immediate scale in one of the highest growth areas in the region with premium select-service brand families. The Portfolio is being sold unencumbered of management, offering substantial operational upside to a new owner/operator. PROPERTY OVERVIEW Hampton Inn Hampton Inn & Suites / Hampton Inn & Suites / Fairfield Inn & Suites NE/ Address 2127 Gold Canyon Dr IH-35 North, TX 78232, TX Corridor Loop, TX Year Opened Guestrooms Site Area +/ acres +/ acres +/ acres Land Ownership Fee simple Fee simple Fee simple Major Amenities - Business center - Fitness room - Outdoor pool SF meeting room - Complimentary breakfast - Business center - Fitness room - Outdoor pool SF meeting room - Complimentary breakfast - Business center - Fitness room - Outdoor pool/whirlpool - 1,288-SF meeting room - Complimentary breakfast Fairfield Inn & Suites NE/ Page 2

3 INVESTMENT HIGHLIGHTS UNENCUMBERED OF MANAGEMENT The Hotels are currently self-managed by the original developer and sole owner, Barshop & Oles Company, a prominent regional retail developer. As the owner s only lodging assets, the Properties perform well but offer tremendous upside potential to an experienced hotel owner/operator who can integrate a streamlined cost structure and more aggressive revenue management. SUPERIOR CONSTRUCTION AND PHYSICAL QUALITY Given their recent vintage, premium concrete and steel construction, and consistent investment of capital, the Hotels are currently in excellent physical condition. The Properties maintain strong competitive advantages due to their premium quality and are expected to require minimal capital maintenance for the foreseeable future. STRONG LOCATIONS ALONG MAJOR THOROUGHFARES The Properties each benefit from highly visible, ideal hotel locations along Interstate 35 ( properties) and at the major intersection of US 281 and Loop 1604 ( property) surrounded by prime demand generators within their respective markets. This /Austin corridor represents one of the nation s strongest and fastest growing economic regions. Hampton Inn Hampton Inn & Suites / Fairfield Inn & Suites NE/ Page 3

4 INVESTMENT HIGHLIGHTS STRENGTH OF HILTON/MARRIOT BRAND AFFILIATION The Hotels benefit tremendously from their franchise affiliation with the highly desired Hilton and Marriott select-service premium brands. The access to these top loyalty programs and strong worldwide distribution systems are a major competitive advantage to the Properties. BOOMING TEXAS ECONOMY The Texas economy, a shining star on the national level, continues to outpace the rest of the country and is projected to maintain its surging growth over the long term. Home to an unemployment rate well below the national average (5.1%), nation-leading job and population increases, and the country s most Fortune 500 HQs (52), Texas continues to be the nation s top state for business and investment. EAGLE FORD SHALE EXPLOSION The Eagle Ford Shale is the most active and largest oil/gas development in the world by capital expenditures and contributed almost $90 billion to the Texas economy in Located across a 21-county region in South Texas lining the area, the Eagle Ford Shale s influence as a major economic growth engine only continues to increase for this region of the state. Hampton Inn & Suites / Hampton Inn Fairfield Inn & Suites NE/ Page 4

5 SM Camp Bullis Natural Bridge Caverns Schlitterbahn Water Park Friedrich Park Six Flags Fiesta Texas UNIV. OF TEXAS- Stone Oak Tesoro Corp McAllister Park Intl. Airport Natural Bridge Wildlife Ranch Rolling Oaks Mall Forum at Olympia Pkwy Retama Park Amazon Randolph Air Force Base GE Oil & Gas Sysco 12 miles to New Braunfels Ingram Park Mall Sea World TRINITY UNIV. Fort Sam Houston AT&T Center Kelly Lackland LOCATION OVERVIEW AFB AFB is Texas top tourist destination, with over 26 million visitors annually attracted to the market s rich cultural history, the Alamo, famous River Walk, the Brooks 630,000-square-foot Henry G. Gonzalez Convention Center, Air SeaWorld, Force Six Flags Fiesta Texas, and an array of restaurants, shops and nightlife venues. The metro s Base lodging market boasts consistently strong weekend and weekday demand patterns because of the extensive mix of leisure, business, and group meeting attractions the city offers. also benefits from a large base of drive-in demand, which has reduced seasonality and made the city a more affordable convention destination for large regional groups. Additionally, the broader economy continues to be one of the most stable with an unemployment rate well below the national average. Home to five Speedway Fortune 500 companies Valero Energy, Tesoro Corporation, USAA, CST Brands and Clear Channel Communications as well as the HEB Grocery, the 15th largest private U.S. company, enjoys a diverse industry portfolio that continues to expand. The metro is also home to three key U.S. military bases Randolph AFB, Lackland AFB and Fort Sam Houston which together account for nearly 80,000 jobs. Hampton Inn is adjacent to the Stone Oak/Sonterra area, an affluent region of north central that has seen tremendous residential and commercial development in recent years. With two major area hospitals, the 132-bed Methodist Stone Oak Hospital and 240-bed North Central N Baptist Hospital, the area just northwest of the Hotel has become another medical center hub for the metro. Tesoro Corporation, a $37-billion oil and gas firm ranking #75 on the Fortune 500, is headquartered less than a mile north of the Property, and CST Brands, the retail spin-off from Valero Energy and Fortune 500 firm, will be relocating its corporate headquarters just northeast of the Hotel., the third largest city and major suburb of the -New Braunfels MSA, has seen remarkable population and employment growth which has been boosted by investments from corporations such as GE, Caterpillar, Amazon and Sysco as well as a substantial U.S. military presence. One of s three major military facilities, Randolph AFB which employs over 10,600 workers, is located in just south of the Hotels. Page 5

6 CBD International Airport Alamo Heights Alamo Quarry Market Thousand Oaks Stone Oak/ Sonterra < 1mile Shopping Center 693K SF Regional Power Center < 1mile OFFERING FORMAT FORMAT: OFFERING MATERIALS: FINANCING: PROPERTY TOURS: Offers for the Portfolio as well as individual offers for each hotel will be considered. A due diligence website, which includes HFF s Offering Memorandum and pertinent source documents, is available to prospective purchasers upon agreement to and signing of HFF s confidentiality agreement. The Portfolio will be sold on an all-cash basis without contingency for financing. However, HFF is actively discussing the transaction with lenders and can provide additional insight regarding potential financing terms for the Properties. HFF strongly recommends scheduling tours of the Properties, which are available upon request with a member of the transaction team. Page 6

7 CBD 1.2M SF Regional Power Center International Airport 882K SF Regional Mall Randolph Air Force Base SM ROY RICHARD DRIVE NATURAL BRIDGE CAVERNS ROAD 12 miles New Braunfels ADDITIONAL INFORMATION JOHN E. BOURRET, JR. Managing Director AUSTIN BROOKS Senior Analyst DEBT CONTACT: MICHAEL COSBY Associate Director hfflp.com 2323 Victory Avenue, Suite 1200 Dallas, TX USA TEL: FAX: Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker ( HFF ) HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.