INVESTMENT HIGHLIGHTS

RESIDENCE INN & TOWNEPLACE SUITES CHATTANOOGA NEAR HAMILTON PLACE

Value-Add Opportunity through Completion of Change-of-Ownership PIPs: While both Hotels have been well-maintained under institutional ownership and present in clean physical condition, they offer a clear value-add opportunity through the completion of brand-mandated change-of-ownership PIPs. These upgrades will further enhance the guest experience and elevate the competitive positioning of each asset within the Chattanooga market. With refreshed interiors and modernized offerings, the Hotels are well-positioned to command ADRs above current in-place levels, allowing a new owner to unlock meaningful top-line growth and capitalize on Chattanooga’s strong extended-stay demand.

Operational Upside through Revamped Management Approach: The Portfolio is currently operated under institutional third-party management, providing a new owner with a clear opportunity to enhance profitability through more localized, hands-on oversight. A shift to owner-management or a more cost-efficient operator may allow for tighter expense controls, improved labor efficiency, and more dynamic revenue management practices. With both Hotels operating under the same roofline and benefiting from shared infrastructure, the implementation of a leaner, more engaged management strategy presents a compelling path to margin expansion and long-term operational gains.

Operational Synergies Across Co-Located Assets: The Residence Inn and TownePlace Suites are located within the same parking lot, creating meaningful opportunities for shared operations and cost efficiencies across both Hotels. Key departments such as housekeeping, maintenance, and sales can be streamlined to reduce overhead, while unified staffing and scheduling allow for greater labor flexibility and responsiveness. This co-location also enables cross-training and shared resources, maximizing productivity without compromising service quality. These synergies support stronger operational performance and present a unique advantage rarely found in standalone hotel investments.

Offered Below Replacement Cost in a High-Growth Market: The Residence Inn and TownePlace Suites Chattanooga Near Hamilton Place represent a rare opportunity to acquire two Marriott-branded, extended-stay assets at a significant discount to replacement cost in one of Tennessee’s fastest-growing markets. Chattanooga has attracted over $4.5 billion in capital investment since 2019. Anchored by major employers such as Volkswagen, BlueCross BlueShield, and Erlanger Health System, the city continues to experience rapid expansion across the automotive, logistics, healthcare, and technology sectors. With elevated land, labor, and construction costs, the cost to develop comparable product would be substantially higher, making this offering a cost-advantaged entry into a market poised for long-term demand growth.

FAIRFIELD INN & SUITES JACKSONVILLE WEST CHAFFEE POINT

Strategic Location Adjacent to Major Industrial Development: The Fairfield Inn & Suites Jacksonville West Chaffee Point is ideally located off I-10, offering direct access to one of Jacksonville’s most important economic engines—Cecil Commerce Center. This 17,000-acre development is projected to deliver up to 31 million square feet of industrial space and is home to Amazon, Boeing, GE, Bridgestone, and more. The adjacent Cecil Airport, a licensed horizontal launch spaceport, supports over 100,000 aircraft operations annually and further enhances demand for lodging in the area.

Post-Renovation and Operational Upside: The Fairfield Inn & Suites Jacksonville West Chaffee Point offers attractive upside through both physical repositioning and operational optimization. The Hotel ranked 3 of 5 in its competitive set with a 99.2% RevPAR Penetration Index for the trailing twelve months ending April 2025, reflecting strong in-place performance with additional room for growth. With a targeted renovation and refreshed positioning, the asset is well-suited to drive ADR gains and capture greater market share. A shift to owner-management or a more cost-efficient operator may allow for tighter expense controls, improved labor efficiency, and more dynamic revenue management practices—presenting a clear path to margin expansion and long-term cash flow growth.

Limited New Supply in a High-Growth Corridor: No new hotels are under construction within a 5-mile radius, positioning the Fairfield Inn & Suites Jacksonville West Chaffee Point to capture future demand generated by the area’s continued industrial expansion. Key catalysts include the 17,000-acre Cecil Commerce Center, a master-planned development projected to deliver up to 31 million square feet of industrial space, as well as Boeing’s recently announced $90 million expansion and Southeast Toyota Distributors’ 12-building logistics campus. The Hotel’s strategic location adjacent to these major developments reinforces its long-term demand potential.