HIGH PERFORMING HOTEL WITH DURABLE CASH FLOWS

As a result of its strong location, all suite product, Marriott affiliation and consistent investment in property upkeep, the Sheraton Suites has consistently generated strong top-line figures and offers a new owner/operator substantial upside. As of May 2025 T12, the Hotel’s RevPAR is approaching $100, a notable uptick from 2024 and robust 127% penetration index (2 of 8 within the competitive set). The Hotel has consistently generated $11M - $12M in total topline revenue historically, and with continued market growth and record-breaking forecasted airport traffic, the Sheraton Suites is well positioned for sustained and significant performance gains.

NEXT DOOR TO GROWING PHILADELPHIA INTERNATIONAL AIRPORT

The PHL Airport, less than a five-minute drive from the Hotel, is in the midst of major upgrades throughout its entire infrastructure. As part of an ongoing, $1.8 billion commitment in approved funding, PHL is currently investing nearly $500 million in terminal upgrades, landside improvements, and taxiway renovations, among many other open projects. Along with the Northeast Philadelphia Airport (a non-commercial, General Aviation Reliever Airport 20 miles northeast of the city), PHL contributes an estimated $18.7 billion impact to the regional economy.

Passenger traffic has been climbing back quickly in recent years. In 2024, total traffic reached 30.9 million passengers, a 9.8% increase over 2023 numbers. City officials expect 2025 volume to return to pre-pandemic levels (2019 experienced a record 33.0 million passengers), and for 2026 to reach new heights. The positive momentum surrounding the airport and passenger traffic in one of America’s top gateway cities point to an accelerated performance for the Sheraton Suites.

PROXIMITY TO PHILADELPHIA’S TOP DEMAND GENERATORS

The Hotel, surrounded by more than 49.8 million square feet of office and industrial space, is less than a 10-minute drive away from some of the city’s largest and newest demand generators. This includes the city’s stadium district - home to Lincoln Financial Field (NFL’s Philadelphia Eagles), Citizen Bank Park (MLB’s Philadelphia Phillies), Wells Fargo Center (NBA’s and NHL’s Philadelphia 76ers and Flyers), and FDR Park – as well as Philadelphia’s most ambitious development project in recent years, the Navy Yard. The Navy Yard is a 1,200-acre transformation of a former U.S. Navy Shipyard, encompassing nearly $1.7 billion in development to date, and over $8 billion at full build out.

ROBUST UPCOMING EVENT CALENDAR

Philadelphia is expecting a tremendous economic impact from major events scheduled to take place in the city over the next two years. The six FIFA World Cup matches alone are expected to generate approximately $770 million for Greater Philadelphia, create 6,600 jobs, produce more than $51 million in tax revenue, and bring more than 500,000 attendees, providing the largest financial boost from a single sporting event or celebration ever recorded in Pennsylvania. Prior to the World Cup, Philadelphia is hosting the 2025 FIFA Club World Cup, where some of Europe and South America’s elite soccer powerhouses (Real Madrid, Chelsea, Manchester City, etc.) are coming to compete in a first-of-its-kind tournament.

In 2026, the city is also hosting the MLB All Star Game, a citywide event celebrating the 250th anniversary of the signing of the Declaration of Independence, and numerous other regularly occurring events. Philadelphia is going to be put at the forefront of the international spotlight for years to come.