Historically Strong Room Revenue with Opportunity to Improve NOI Flowthroughs

The Hotel has consistently generated over $1.6 million in room revenue annually since 2020 and has historically achieved NOI flowthroughs exceeding 27% in 2020, 2021, and 2022. New ownership has the opportunity to implement cost control initiatives to enhance cash flow and further improve profitability.

Significant RevPAR Upside Following Completion of Change-of-Ownership PIP

The Hotel is currently underperforming in ADR market penetration and will require a standard change-of-ownership PIP upon acquisition. Renovating the Property to current HomeTowne Studios’ standards will allow a new owner to increase the rate and further penetrate the market.

Premium Location

This extended stay property’s location, across the street from Boeing’s BDS complex and less than a mile from the Lambert - St. Louis International Airport, provides the Hotel with a unique demand opportunity as both BDS and STL recently broke ground on significant developments, totaling just under $5 billion in nearby construction. The Hotel is well positioned to benefit from these projects both during construction, as lodging for laborers, and as long-term corporate accommodations for traveling employees. Additionally, the Hotel is proximate to I-270, I-170 and U.S. 67, offering guests convenient access to the greater St. Louis Metropolitan Area.

Recent Developments

As St. Louis is prioritizing an increase in development, including a $3 billion airport expansion, Boeing’s $1.8 billion Advanced Combat Aircraft Facility, enhancements to Union Station and a new $1.2 billion construction project in Downtown, a new owner can expect to receive dividends in both Occupancy and ADR from both leisure and corporate demand during and following the project’s completion.

Extended Reach Brand Affiliation

Red Roof, an award-winning leader in the economy lodging industry, is recognized for creating the innovative upscale economy segment, serving millions of guests each year. With coast-to-coast locations, Red Roof has over 550 properties in the U.S. and has expanded internationally to Brazil and Japan. HomeTowne Studios, Red Roof’s newest sub-brand, offers guests the “Basic Essentials for a Long-Term Stay” and benefits from the increasing demand for extended-stay products in addition to Red Roof’s strong brand equity, attributes, and proven support system.

Fee Simple Assets Offered at a Discount to Replacement Cost

The acquisition of the Hotel represents an opportunity for investors to acquire the fee simple interest in the economy-branded extended stay hotel, well below replacement cost.

Offered Unencumbered by Management and Debt

The Property is offered free and clear of a management contract and unencumbered by debt. A new owner/operator has the opportunity to revamp the operational strategies of the Hotel, implement new marketing and strategic cost control initiatives, and employ more aggressive revenue management strategies.