REVPAR LEADER

The DoubleTree has demonstrated strong and consistent performance as the RevPAR leader amongst its competitive set for the past six consecutive years. The Property’s 2024 year-end RevPAR Index is a remarkable 153.1%, primarily driven by an occupancy premium of 16 points over the competitive set. The Property notably bests a recently renovated, 1999-vintage Marriott in RevPAR, a testament to the DoubleTree’s physical quality and location.

STRATEGIC LOCATION NEAR DURABLE DEMAND

The Property is prominently positioned near the intersection of Interstate 459 and Highway 280, and within the Perimeter Park office park that consists of approximately 350,000 square feet of Class A office space. The DoubleTree is proximate to a diverse mix of demand that include the durable and expanding sectors of manufacturing, healthcare, and higher education, as well as a multitude of corporate and leisure drivers. Birmingham’s well-developed network of highways provide easy access to all parts of the city, including downtown Birmingham and Birmingham-Shuttlesworth Airport which are a 15 and 20-minute drive from the Property, respectively.

EXCELLENT PHYSICAL CONDITION + RENOVATION UPSIDE

In 2018, the DoubleTree received an extensive $13.5 million renovation that transformed nearly every aspect of the Property including guest rooms, meeting facilities, lobby, restaurant, fitness center, as well as significant MEP work. Since then, ownership has spent more than $2.0 million to meticulously maintain the Hotel. Looking ahead, the DoubleTree stands to benefit from a guest-facing renovation upon a change in ownership. The pending renovation will allow the Hotel to further cement its superior market position and will be a catalyst for outsized rate growth in the coming years.

THRIVING HOTEL SUBMARKET

The COVID-19 pandemic was not nearly as impactful to the Birmingham market as it was to most lodging markets across the U.S. The past few years of recovery have been marked with impressive growth with rate leading the way and 2024 RevPAR being 14.5% higher than the 2019 figure.

POWER OF HILTON

Hilton is one of the most recognized and respected names in the hospitality industry. With over 100 years of experience, Hilton has established a reputation for delivering top guest experiences. With a collection of 22 distinct brands, Hilton provides exceptional stays in more than 7,500 worldwide locations, providing a vast network that attracts both leisure and business travelers. Its rewards program, Hilton Honors, is a powerful loyalty tool that boasts nearly 190 million members globally, driving repeat business and customer loyalty.

CLEAN INVESTMENT OPPORTUNITY

The Hotel is offered unencumbered of debt and management, offering a high degree of operational and financing flexibility.

ATTRACTIVE FINANCING PROFILE

As the capital markets environment begins to improve, the Property is positioned to receive the best financing options available given its institutional maintenance, robust cash flow, and strong in-place debt yield, which can be further improved upon with the right sponsorship and lending relationships.

ABILITY TO ACQUIRE BELOW REPLACEMENT COST

Based upon the pricing guidance and capital expenditure estimates, a new investor will be able to acquire the Hotel at a significant discount to current development costs for delivering a full-service hotel in Birmingham, creating a buffer against directly competitive new supply.