INVESTMENT HIGHLIGHTS

POSITIONED FOR THE NEXT GENERATION OF TRAVEL

Over the past few years, the outdoor hospitality industry has experienced significant growth as travelers increasingly seek nature-based experiences, flexible travel options, and unique accommodations. Over 2.2 million people tried outdoor hospitality for the first time in 2025, a 23% increase over 2015. The rise of glamping has transformed traditional outdoor hospitality into a more accessible and upscale experience, appealing to millennials and Gen Z consumers looking for comfort and adventure at the same time. As a result, the industry has evolved from a niche travel segment into a major part of the broader tourism and lodging industry. Expenditures from outdoor hospitality surpassed $66 billion in 2025, a 67% increase from $44 billion in 2021. Daily expenditures continue to increase across consecutive generations, with Boomers, Gen X, Millennials, and Gen Z spending $134, $171, $250, and $320 respectively. El Rancho Robles is ideally positioned to capitalize on this growth with its proximity to Oracle State Park and variety of amenities including a newly developed luxury pool, offering travelers a nature-focused, elevated outdoor experience that today’s travelers are seeking.

A future owner could pursue a phased repositioning strategy that preserves the historic guest ranch while layering in higher-rated outdoor hospitality accommodations, such as luxury tents, cabins, wellness suites, or curated retreat spaces. This approach would allow the Property to maintain its existing guest room and events business while adding new inventory and programming that speaks to growing demand for nature-based, design-forward, and wellness-adjacent travel experiences. The result could be a rare Arizona desert retreat that combines the authenticity of a 1920s guest ranch with the revenue upside of modern experiential lodging.

WELLNESS TOURISM TAILWINDS SUPPORT FUTURE REPOSITIONING

As consumers seek out opportunities to reset, digitally detox, and enhance their well-being, El Rancho Robles is uniquely positioned to benefit from the continued rise of health and wellness tourism. According to McKinsey, 84% of U.S. consumers now say wellness is a “top” or “important” priority and nearly 30% of Gen Z prioritize wellness “a lot more” compared to one year ago. As a result, Gen Z and millennials outspend the overall average on health and wellness purchases, generationally shifting toward proactive health management. Wellness is now a primary driver of outdoor hospitality, offering consumers the opportunity to organically recharge through nature-orientated facilities.

As the global wellness economy continues to expand - reaching an estimated $6.8 trillion in 2024, with wellness tourism among the strongest post-pandemic growth sectors - El Rancho Robles provides a rare platform to pair its existing boutique resort and events business with future wellness programming, outdoor hospitality, glamping, guided recreation, yoga retreats, spa-oriented amenities, and group experiences centered around nature and restoration.

THE EMERGENCE OF GLAMPING

Glamping has emerged as one of the fastest-growing segments within the United States outdoor hospitality industry. According to Kampgrounds of America, the number of households staying in glamping or cabin accommodations reached 12.9 million in 2024, an 88% increase from 2019. The U.S. glamping market reached approximately $738 million in 2024 and is projected to surpass $1.5 billion by 2030, growing at a compound annual growth rate of 12.8%, roughly double the pace of the broader outdoor hospitality industry. Glamping has become increasingly institutional with Marriott, Hilton, and Hyatt all entering the space through acquisitions or brand partnerships in 2024. This shift signals that institutional hospitality capital now views the sector as a durable, margin-rich complement to traditional lodging.

RISE IN GROUP TRAVEL

Group travel continues to rise as a more prominent area of hospitality bookings with the shifting of corporate culture and work-from-home policies. Through the emergence of remote work, the industry saw a surge of group bookings worldwide in 2024 and 2025, with this trend continuing to strengthen. According to the Global Business Travel Association, corporate travel spending reached $1.4 trillion globally in 2023, with group bookings representing approximately 31% of total expenditure. The trend toward hybrid work models has paradoxically increased demand for periodic in-person gatherings, as organizations seek to maintain culture and collaboration among distributed teams. This trend is especially relevant for experiential resort assets like El Rancho Robles, where the layout naturally supports full-property buyouts, multigenerational trips, wedding weekends, wellness retreats, corporate offsites, and curated group programming.