Executive Summary NAPLES NORTH BONITA SPRINGS PORTFOLIO PRESENTED BY

Executive Summary NAPLES NORTH BONITA SPRINGS PORTFOLIO PRESENTED BY

THE PLASENCIA GROUP has been retained as exclusive agent to present the 106-key Homewood Suites by Hilton Bonita Springs (the Homewood Suites ) and the 92-key Hampton Inn Bonita Springs/Naples-North (the Hampton Inn ), for your investment consideration. Separated by fewer than two miles on the Tamiami Trail (U.S. Highway 41), both assets are located in idyllic Bonita Springs, Florida, an emerging live-work-play community 20 miles south of downtown Fort Myers and 15 miles north of downtown Naples. The hotels are located less than ten minutes from Barefoot Beach in North Naples, a pristine stretch of fine white sand which is regularly ranked as one of the top five beaches in the United States. Fresh off of comprehensive renovations, both assets are primed to capture the higher end of the diverse demand emanating from the greater Fort Myers-Naples market. This investment offering represents a unique opportunity to acquire the fee simple interest in two premium-branded, freshly renovated select service assets in a key Southwest Florida coastal destination. Ownership strongly prefers to sell the Homewood Suites and the Hampton Inn in one transaction. 2 Investment Summary Address Homewood Suites Bonita Springs 8901 Highland Woods Blvd. Bonita Springs, FL 34135 Year Opened 2001 1996 Guestrooms 106 92 Hampton Inn Bonita Springs Naples North 27900 Crown Lake Blvd. Bonita Springs, FL 34135 Building Area & Parcel Size 75,578 Square Feet / 2.65 Acres 44,160 Square Feet / 2.01 Acres Building Height Four Stories Three Stories Brand Family Hilton Worldwide Hilton Worldwide Management McKibbon Hotel Management (unencumbered) McKibbon Hotel Management (unencumbered) Food & Beverage Complimentary Breakfast and Evening Social Complimentary Breakfast Parking 119 Complimentary Spaces 112 Complimentary Spaces Property Amenities Fitness Center, Pool, Patio, Business Center, Coin Laundry, Suite Shop, Pet Friendly Fitness Center, Pool, Patio, Business Center, Coin Laundry, Pavilion Pantry Market Additional Considerations Fee Simple, Non-Union Fee Simple, Non-Union

Investment Highlights RECORD-SETTING FLORIDA TOURISM Known for its beaches, theme parks, friendly business climate, and cultural attractions, the State of Florida remains an undisputed international destination in travel and tourism. Buoyed by continued year-over-year growth in overseas travelers, Florida has set new visitation records for several consecutive years, eclipsing 113 million travelers in 2016. While not yet finalized, preliminary data indicate that Florida paced ahead of that total in 2017. Many of the State s rival warm-weather leisure travel markets in the Florida Tourism Millions of Out-of-State and International Visitors 120 4.9% CAGR 100 80 60 91.5 93.7 87.3 80.9 82.3 98.8 106.6 113.4 85.4 88.2 EXECUTIVE SUMMARY 3 Caribbean are facing long-term disruption from the impact of Hurricanes Irma and Maria. Florida remains a natural surrogate destination for displaced 40 demand, which should further bolster visitation for years to come. 20 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 YTD 3Q17 YTD AFFLUENT, GROWING MARKET With a growing list of demand generators and an ever-increasing airlift, the Southwest Florida lodging market has become a year-round destination. Consistently anchored by strong leisure transient demand that emanates from the area s world renowned beaches, the region has built up a critical mass of commerce, catalyzed by rapid population growth, a business-friendly local government, and the lack of a state income tax. The recent relocation of the corporate headquarters of Fortune-500 car rental giant Hertz to nearby Estero, Florida (just a few miles north of the Homewood Suites and the Hampton Inn), headlines a list of recent economic boons to the market. On weekends, the area is abuzz with national youth sports and professional golf competitions. The market is served by Southwest Florida International Airport (RSW) in nearby Fort Myers, which tallied a record 8.8 million travelers in 2017. Located just south of the hotels, Naples has developed a reputation as a refined beach destination for the world s most affluent travelers, and boasts the second-highest ratio of millionaires per capita in the country. The vibrant, walkable city offers world-class shopping, dining, golf, beaches, healthcare, and financial services. Lee County, in which Bonita Springs sits, has ranked among the fastest growing counties nationally. Rapid market expansion, coupled with a very limited number of new hotel rooms in the market, has made for a stable and growing local lodging environment. The Bonita Springs submarket s 2017 RevPAR growth of 7.8% significantly outpaced the rest of the state (5.9%) and the country (3.0%). Caption

Homewood Suites Front Desk EXECUTIVE SUMMARY 4 HIGHLY CONVENIENT LOCATIONS The Homewood Suites and the Hampton Inn sit less than two miles apart from one another on the Tamiami Trail, which, as its name suggests, connects Tampa and Miami along Florida s Gulf Coast, and which locally serves as a key conduit between Fort Myers and Naples. The properties afford convenient access to Bonita Beach Road, an east-west boulevard connecting Interstate 75 with Barefoot Beach and the area s other famous coastal communities. The Homewood Suites and the Hampton Inn are situated less than 20 miles away from the rapidly expanding Southwest Florida International Airport, which is one of the top fifty airports in the country in terms of passenger traffic and offers flights to and from nearly fifty locations around the world.

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6 FRESHLY RENOVATED HOTELS Both hotels have benefitted from the strong stewardship of their institutional owner. Fully renovated in 2016, the Homewood Suites was the beneficiary of $2.1 million (approximately $19,000/key) in capital expenditures, and the Hampton Inn received more than $2.5 million (approximately $27,000/key). Neither hotel is expected to require a significant change of ownership PIP, allowing a new owner to avoid the disruption of renovation and immediately capitalize on its investment. Post-renovation, both properties have seen significant growth in RevPAR, driven by both ADR and Occupancy, as well as improved efficiency at their bottom lines. Hampton Inn Double Queen Guestroom

7 OUTSTANDING TRACK RECORDS Since emerging from their comprehensive renovations in 2016, the Homewood Suites and the Hampton Inn have experienced exceptional growth in revenues, overall efficiency, and in their bottom lines. As of year-end 2017, the Homewood Suites boasted a RevPAR of nearly $105 and an NOI margin of 35%, while the Hampton Inn achieved a RevPAR of $96 and an NOI margin of 37%. Moreover, the Homewood Suites and the Hampton Inn are poised to benefit from ongoing market growth, a limited competitive supply pipeline, and the hotels continued ramp-up from their renovations. Homewood Suites Lounge Seating

8 FURTHER UPSIDE POTENTIAL Notwithstanding the hotels current performance and condition, areas of operational upside remain at the properties. While the two hotels currently share a sales and marketing platform, further complexing of executive positions could materially reduce costs. There is also significant additional revenue potential for the assets. The hotels continue to ramp up from their 2016 renovations and are now fully primed to capitalize on the region s strong demand and robust population growth. Both properties will also benefit from the emergence of the recently-opened Southwest Florida Event Center on nearby Bonita Beach Road, which features 20,000 square feet of flexible function space. Homewood Suites Pool

9 PRIME HILTON FLAGS The Homewood Suites and Hampton Inn brands are international powerhouses associated with Hilton s renowned reward and distribution system. The combination of brands is ideally suited for the hotels location proximate to such a diverse mix of leisure attractions and corporate bases. The Hilton network includes 14 lodging brands and over 5,100 properties in 103 countries. The Hilton brand enjoys one of the largest and most powerful guest loyalty programs, with over 69 million members worldwide. Fresh off their recent renovations, the hotels boast the most updated Hilton-branded accommodations in the market. Hampton Inn Outdoor Sitting Area

10 MANAGEMENT AVAILABILITY The Homewood Suites and the Hampton Inn are offered free and clear of their current management agreements, providing the ability to immediately and directly control operations. Given the properties proximity to each other, the implementation of a complexing program should not only further reduce operating expenses, but should also provide accretive synergies to the properties top lines. Homewood Suites Bathroom

11 DISCOUNT TO REPLACEMENT COST Featuring a combined 198 recently renovated guestrooms of varying layouts, prime Hilton brands, and highly convenient locations within an affluent Florida coastal community, the Naples North-Bonita Springs portfolio can be acquired at a price considerably lower than the cost to produce the current product. Homewood Suites Two-bedroom Suite Living Area

NAPLES Barefoot Beach Gulf of Mexico BONITA SPRINGS Tamiami Trail Bonita Beach Road CONTACT INFORMATION For additional information regarding the Naples North Bonita Springs Portfolio investment opportunity, please contact: LOU PLASENCIA Chief Executive Officer lplasencia@tpghotels.com (813) 932-1234 NICK PLASENCIA Vice President nplasencia@tpghotels.com (813) 445-8276 CHRIS PLASENCIA Vice President cplasencia@tpghotels.com (813) 445-8259 One North Dale Mabry Highway, Suite 1000, Tampa, Florida 33609 (813) 932-1234 tpghotels.com Copyright 2018, United States of America