Burlington Colchester, Vermont OFFERING SUMMARY

Burlington Colchester, Vermont OFFERING SUMMARY

the offering Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to offer, on an exclusive basis, the fee simple interest in the 187-room Hampton Inn Burlington (the Hotel or Property ). The Hotel is conveniently located at the intersection of Route 2 and Interstate 89 in Colchester, Vermont just five miles north of Downtown Burlington and 20 miles west of Stowe Mountain Resort. The Hampton Inn Burlington features 187 guest rooms and suites, the Lighthouse Restaurant and Lounge (leased), 6,000 square feet of meeting space recently branded as the Vermont Event Center, as well as additional on-site guest amenities. The Hotel is in excellent physical condition having completed a $4 million ($21,390 per room) guest room, guest bathroom, meeting space and public space renovation in May 2015. Burlington, Vermont s largest city and economic anchor, benefits from numerous educational institutions and healthcare facilities, as well as major corporations and strong year-round tourism. Located only 45 miles south of the U.S.- Canadian border, 95 miles south of Montreal, 215 miles northwest of Boston and 300 miles north of New York, the Greater Burlington area has become a premier, year-round leisure destination for New Englanders and Canadians alike. The Greater Burlington area has no shortage of leisure attractions/ activities including a blossoming craft beer scene, contemporary farm-totable dining and all-season outdoor activities. Burlington is also home to the popular Church Street Marketplace, University of Vermont, Champlain College, University of Vermont Medical Center and major corporations including Global Foundries, Keurig Green Mountain, United Health Group, UnitedTechnologies, General Electric, GE Healthcare, Dealer.com, Burton Snowboards, and Seventh Generation. The Hampton Inn Burlington presents investors with the opportunity to acquire a recently-renovated, Hilton-branded, limited-service hotel with strong inplace cash flow and additional upside as a result of the $4 million renovation completed in May 2015. In the trailing twelve months as of August 2016, the Hotel achieved a net operating income of over $1.4 million at a 22.5% margin. The Hotel is forecasted to achieve a net operating income of nearly $1.7 million in the full-year 2016. The Hampton Inn Burlington is being offered unencumbered by both existing management and debt. hampton inn burlington Address: Acreage: Ownership Structure: Guestroom Mix: 42 Lower Mountain View Drive Colchester, Vermont 05446 6.01 Acre Hotel Parcel 0.57 Acre Front Parcel (Available Separately) Fee Simple - 2 Two-Room Suites - 8 King Suites - 2 Family Suites - 76 King Rooms - 99 Double Rooms - 187 Total Rooms Open Date: June 1990 Renovation Year: Amenities: Meeting and Event Space: 2015 Guestroom, Guest Bathroom, Meeting Space and Public Space Renovation - Free Hot Breakfast - Lighthouse Restaurant and Lounge (Leased) - Indoor Saltwater Swimming Pool - Free Burlington International Airport Shuttle - Free Wi-Fi - Fitness Center - Pavilion Pantry Market - Guest Laundry 6,000 Square Feet, Recently Branded as the Vermont Event Center EXECUTIVE SUMMARY 2

investment highlights Strategic Location, Diverse Lodging Market. The Hampton Inn Burlington is strategically located at the intersection of Route 2 and Interstate 89, just five miles north of Downtown Burlington, Vermont, 20 miles west of Stowe Mountain Resort, and approximately 90 miles south of Montreal, Canada. Burlington is Vermont s largest city and economic center. The Hotel offers easy access to the area s diverse lodging demand drivers including year-round leisure attractions, multiple colleges and universities, leading medical facilities, government institutions and national corporations. Recently-Renovated, Limited-Service Hotel. The Hampton Inn Burlington is in excellent physical condition having completed a $4 million ($21,390 per room) renovation program in May 2015. The renovation included guest room, guest bathroom and meeting space improvements including Hampton Inn s Forever Young décor package. As a result, the change of ownership property improvement plan is expected to be minimal. The Hampton Inn Burlington features 187 guest rooms and suites, a business center, a gift shop, a fitness center, an indoor saltwater pool, free hot breakfast, free Wi-Fi and free local shuttle service. Food & Beverage Operations. The Hampton Inn Burlington also features 6,000 square feet of meeting space, recently branded as the Vermont Event Center, that is located within the Hotel as well as the Lighthouse Restaurant and Lounge (leased) that is located adjacent to the Hotel. The Vermont Event Center, an ideal location for corporate meetings and social functions, is forecasted to generate $677,814 of revenue in 2016. The Lighthouse Restaurant and Lounge will generate an additional $78,000 of lease income in 2016. The food and beverage operations are competitive advantages for the Hotel and offer a new owner significant ancillary revenue. Leading Brand Affiliation. Hilton Worldwide is one of the largest and fastest growing hospitality companies in the world. Hampton by Hilton is its awardwinning, upper midscale hotel brand with over 2,100 properties in 20 countries around the world. Hampton by Hilton is renowned for its consistent guest experience and tremendous value. The Hampton Inn Burlington benefits from the Hilton reservations system and the 40 million member Hilton HHonors loyalty program. EXECUTIVE SUMMARY 3

investment highlights Discount to Replacement Cost. The Hampton Inn Burlington is being offered at a very attractive basis and a significant discount to replacement cost. The recent hotel development projects in Burlington which include Homewood Suites by Hilton Burlington, Hilton Garden Inn Burlington Downtown and Hotel Vermont all have estimated project costs between $170,000 and $250,000 per key. Strong In-Place Cash Flow with Upside. The Hampton Inn Burlington has a proven track record for generating substantial operating results. In the trailing twelve months as of August 2016, the Hotel achieved an occupancy of 68.0%, an average daily rate of $121.87, a RevPAR of $82.90 and total revenue of nearly $6.4 million. The Hotel is forecasted to achieve nearly $1.7 million of net operating income at a 24.2% margin in the full-year 2016. A new owner will benefit from continued increases in revenue and profit following the comprehensive renovation completed in May 2015. Additional Value-Add. The current owner razed a single family home on the property creating an excess land parcel that is also available for sale. The opportunity exists to create value by acquiring and developing the excess land parcel, most likely for retail use. Unencumbered by Management and Debt. The Hampton Inn Burlington is being offered unencumbered by both existing management and debt. A new owner will have complete flexibility as it relates to ongoing management strategy, including implementation of new revenue management and cost saving initiatives. EXECUTIVE SUMMARY 4

2 MONTREAL l oc ati on m ap (95 MILES) 15 LAKE CHAMPLAIN STOWE RESORT (20 MILES) BURLINGTON INTERNATIONAL AIRPORT 2 189 7 89 NEW YORK CITY (300 MILES) BOSTON (215 MILES) PROPERTY OVERVIEW 5

2016 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 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 www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff. Holliday Fenoglio Fowler, L.P. ( HFF ) has been engaged by the owner of the property to market it for sale. Information concerning the property 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. If you have any questions or require additional information, please contact any of the HFF professionals below: DENNY MEIKLEHAM Managing Director 617.848.1560 dmeikleham@hfflp.com ALAN SUZUKI Director 617.848.1575 asuzuki@hfflp.com MATTHEW ENRIGHT Senior Analyst 617.848.1851 menright@hfflp.com FINANCING CONTACT: JENNIFER KELLER Director 617.848.5855 jkeller@hfflp.com BROKER OF RECORD JAIME FINK Senior Managing Director 312.528.3683 jfink@hfflp.com Vermont License #081096202 www.hfflp.com ONE POST OFFICE SQUARE, SUITE 3500 BOSTON, MASSACHUSETTS 02109 P 617.338.0990 F 617.338.2150