econo lodge | idaho falls...idaho falls idaho temple and idaho falls greenbelt are local landmarks,...

ECONO LODGE | IDAHO FALLS888 N HOLMES AVE | IDAHO FALLS, ID 83401

Offering Memorandum

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by

the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and

to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income

or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and

improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the

physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions

to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we

believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus

& Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy

or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package.

The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said

corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and

is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


O F F I C ES N AT I O N W I D E A N D TH R O U G H O UT C A N A D A

WWW.MARCUSMILLICHAP.COM

EXCLUSIVELY LISTED BY

EDDY NEVAREZAssociate Director

National Hospitality GroupCell: 818.339.6506

Office: [email protected]

License: CA 01960485

07 INVESTMENT OVERVIEWSECTION 1

19 FINANCIAL ANALYSISSECTION 2

3931

MARKET OVERVIEWSECTION 4

MARKET COMPETITORSSECTION 3

TABLE OF CONTENTS

EXCLUSIVELY LISTED BY:


This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of theinformation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate


ECONO LODGE | IDAHO FALLS

7

INVESTMENTOVERVIEW

8

EXECUTIVE SUMMARY

OFFERING SUMMARY

VITAL DATA

Current Year 1

Price $4,100,000 Cap Rate 13.61% 12.27%

PIP $0 NOI $558,205 $571,502

Down Payment 35% / $1,435,000Net Cash FlowAfter Debt Service

34.58% / $380,383 35.75% / $393,261

Loan Amount $2,665,000 Total Return 40.35% / $443,899 41.53% / $456,776

Loan Type Proposed New

Interest Rate 5.0% / 30 Years

Price / Room $44,565

Ownership Type Fee Simple

Number of Rooms 92

Number of Buildings 5

Number of Stories 2

Year Built 1960

Lot Size 3.64 Acres

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Barrett Business Services Inc 5,002Idaho National Laboratory 3,761

Eastern Idaho Regional 1,530

Walmart 800Intermountain Natural LLC 597

READYCARE 420

Idahoan Foods 281Channel Blend LLC 250

Fred Meyer Jewelers 00156 250

Energy Idaho Operations Office 231City of Idaho Falls 218

Morningstar Senior MGT LLC 207

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles2019 Estimate Pop 12,159 60,704 99,542

2010 Census Pop 11,676 55,907 89,062

2019 Estimate HH 4,758 23,281 35,8602010 Census HH 4,480 21,117 31,737

Median HH Income $38,328 $56,108 $61,686

Per Capita Income $20,598 $28,260 $28,253Average HH Income $50,880 $72,977 $77,873

9

INVESTMENT OVERVIEW

Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale the EconoLodge, a Choice hotel. The 92 room hotel was recently branded and fully renovated in 2017-2018. Seller spent over $650,000.00 on extensive renovations and PIP requirements to convert into a Choice Hotel Brand. Seller finalized fully renovations and PIP end of 2018.

Hotel facilities and amenities include a breakfast dinning area, guest laundry, a seasonal outdoor pool, an indoor whirlpool, a fitness room, vending areas, as well as a 2,352 square foot meeting room. Along with a restaurant, this hotel has a bar/lounge. The restaurant currently is a leased income property.

EconoLodge near Snake Rive in Idaho Falls, is conveniently located just off Route 26, close to a variety of attractions around historic downtown Idaho Falls, Yellowstone and Grand Teton National Parks, which are each less than a 2-hour drive away. Idaho Falls Idaho Temple and Idaho Falls Greenbelt are local landmarks, and some of the area’s attractions include Blast Off and Wes Deist Aquatic Center. Yellowstone National Park is a major income producing income for tourist and visitors.

• Gateway to Yellowstone and Grand Teton National Park

• Near local Idaho Landmarks

• Idaho Temple is minutes away

• Walking distance to Idaho Falls Civic Auditoriumand other attractions

INVESTMENT HIGHLIGHTS

PROPERTY SUMMARY

THE OFFERING

Property Econo Lodge Idaho Falls

Price $4,100,000

Property Address888 N Holmes Ave,

Idaho Falls, ID

Parcel Number RPA0420002001A

Zoning

COMMERCIAL / RESTAURANT, BAR,

FOOD SERVICES

SITE DESCRIPTION

Number of Rooms 92

ADA Rooms 1

Number of Stories 2

Year Built / Renovated 1960

Ownership Type Fee Simple

Lot Size 3.64 acre(s)

PROPOSED FINANCING

FIRST TRUST DEED

Loan Amount $2,665,000

Loan Type Proposed New

Interest Rate 5.0%

Amortization 30 Years

Loan Term 10 years

Loan to Value 65%

Debt Coverage Ratio 3.25

Second Trust Deed

Loan Type All Cash

MECHANICAL

Fire Protection Sprinklers

CHANGE TO FRANCHISE

Parent Company Choice Hotels

ROOM TYPES

NUMBER OF ROOMS ROOM TYPE

57 Double

35 King

11

REGIONAL MAPN


12

LOCAL MAP N


13

AERIAL PHOTO

N


19

FINANCIAL ANALYSIS

20

STRFINANCIAL ANALYSIS

Monthly Performance at a Glance - My Property vs. Competitive Set

My Prop Comp Set Index (MPI) My Prop Comp Set Index (ARI) My Prop Comp Set Index (RGI)

Current Month 48.6 21.6 224.8 37.37 51.79 72.1 18.17 11.20 162.2

Year To Date 41.0 33.0 124.1 37.22 58.05 64.1 15.25 19.17 79.5

Running 3 Month 42.2 31.5 133.8 36.99 57.27 64.6 15.62 18.07 86.4

Running 12 Month 57.5 54.3 105.9 54.13 75.60 71.6 31.15 41.09 75.8

My Prop Comp Set Index (MPI) My Prop Comp Set Index (ARI) My Prop Comp Set Index (RGI)

Current Month -8.3 -60.0 129.3 -15.9 -25.6 13.0 -22.9 -70.3 159.1

Year To Date 3.2 -26.5 40.3 -9.2 -7.3 -2.0 -6.3 -31.8 37.4

Running 3 Month -4.4 -33.1 43.0 -10.6 -9.9 -0.7 -14.5 -39.8 42.0

Running 12 Month 6.2 -9.0 16.6 -10.9 0.1 -11.0 -5.4 -8.9 3.8

April 2020

April 2020 vs. 2019 Percent Change (%)

Occupancy (%)

This STR Report is a publication of STR, LLC and STR Global, Ltd., CoStar Group companies, and is intended solely for use by paid subscribers. The information in the STR Report is provided on an “as is” and “as available” basis and should not be construed as investment, tax, accounting or legal advice. Reproduction or distribution of this STR Report, in whole or part, without written permission is prohibited and subject to legal action. If you have received this report and are NOT a subscriber to this STR Report, please contact us immediately. Source: 2020 STR, LLC / STR Global, Ltd. trading as “STR”. © CoStar Realty Information, Inc.

ADR RevPAROccupancy

ADR RevPAR

My Property vs. Comp Set and Industry Segments

48.6 -8.3 41.0 3.2 42.2 -4.4 57.5 6.2 0.0 0.8 1.1 0.5

22.6 -63.9 40.4 -25.1 38.5 -33.0 59.3 -6.7 -7.7 -1.7 -2.4 0.0

29.6 -43.7 36.6 -19.1 36.7 -24.3 53.2 -6.8 -2.9 -0.5 -0.8 0.1

22.1 -62.4 37.5 -25.9 35.6 -33.7 57.6 -6.6 -7.3 -1.1 -1.8 0.3

26.7 -45.1 32.4 -21.7 32.0 -27.5 51.5 -6.5

21.6 -60.0 33.0 -26.5 31.5 -33.1 54.3 -9.0

-3.4

0.0

-0.7

0.0

-1.0

0.0

-0.1

0.0

37.37 -15.9 37.22 -9.2 36.99 -10.6 54.13 -8.3 4.0 -3.3 6.8

70.18 -28.4 91.62 -4.2 90.76 -6.1 107.46 -66.7 -26.4 -34.6 -6.6

55.90 -17.8 61.20 -6.2 61.04 -7.4 76.51 -45.3 -19.5 -24.9 -6.7

68.39 -23.9 84.86 -3.8 84.01 -5.5 97.86

-10.9

2.4

0.7

1.1 -65.2 -26.7 -34.8 -6.4

50.09 -15.7 52.97 -6.3 52.58 -7.4 67.02 -47.0 -22.3 -28.3 -6.6

51.79 -25.6 58.05 -7.3 57.27 -9.9 75.60

-1.3

0.1 -60.0 -26.5 -33.1 -9.0

18.17 -22.9 15.25 -6.3 15.62 -14.5 31.15 -5.4 -22.9 -5.6 -13.5 -4.9

15.87 -74.2 37.03 -28.3 34.99 -37.1 63.69 -4.5 -76.2 -29.5 -38.6 -4.4

16.54 -53.7 22.38 -24.1 22.42 -30.0 40.68 -6.1 -55.0 -24.5 -30.5 -6.0

15.14 -71.4 31.84 -28.7 29.92 -37.3 56.33 -5.6 -73.5 -29.4 -38.4 -5.4

13.38 -53.7 17.14 -26.7 16.82 -32.9 34.54 -7.7 -55.3 -27.2 -33.6 -7.8

11.20 -70.3 19.17 -31.8 18.07 -39.8 41.09 -8.9 -70.3 -31.8 -39.8 -8.9

Rooms Rooms

22503 16346 Properties

6592 2828 6

8384 5937

1297 1242

366 311

Submarket Scale: Economy Chains

Submarket: Idaho South Area

Market Class: Economy Class

Market: Idaho

YTD % ChgRun 12 Mon

% Chg

Run 3 Mon %

Chg

Supply

Econo Lodge Near Snake River Idaho Falls

Occupancy (%)

% Chg

Competitive Set: Competitors






Market: Idaho



Market: Idaho





207623533

Rooms Properties RoomsMarket: Idaho



Rooms

% Chg

Census

Current

Month

Year to Date

Demand

Month %

Chg

Month %

ChgYTD % Chg

Run 3 Mon %

Chg

Run 12 Mon

% Chg

Market: Idaho

Revenue

Pipeline

Month %

ChgYTD % Chg

Run 3 Mon %

Chg

Run 12 Mon

% Chg


% ChgRunning 12

Month

RevPAR

Current

Month% Chg Year to Date % Chg

Running 3

Month

175

70.8

72.6

See Help page for pipeline definitions.

Under ConstructionProperties

4

16

Planning

42.9

5

332

128

17

Properties

67

38

85.0

95.8

% Chg Year to Date

Sample %


Sample

149

% ChgCurrent

Month% Chg

% Chg

Average Daily Rate

Running 3

Month% Chg

Running 12

Month

Running 3

Month% Chg

Running 12

Month% Chg

Census/Sample - Properties & Rooms

21

22

Competitive Set Report

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2018 2019 2020 2018 2019 2020 2018 2019 2020

My Property 31.4 24.9 27.1 34.5 44.2 53.0 65.8 84.6 85.0 71.0 76.2 56.5 41.8 45.0 37.4 35.6 42.2 48.6 21.8 39.7 41.0 23.8 44.1 42.2 33.8 54.2 57.5

Competitive Set 38.0 38.6 38.4 39.2 47.7 54.1 73.9 81.6 77.5 70.2 79.4 54.5 39.3 42.1 37.3 36.5 36.7 21.6 41.7 44.9 33.0 45.2 47.2 31.5 57.5 59.7 54.3

Index (MPI) 82.6 64.5 70.5 88.1 92.6 98.1 89.1 103.6 109.6 101.1 96.0 103.7 106.5 106.7 100.3 97.6 115.0 224.8 52.4 88.5 124.1 52.6 93.5 133.8 58.9 90.8 105.9

Rank 5 of 6 5 of 6 5 of 6 4 of 6 4 of 6 4 of 6 5 of 6 3 of 6 2 of 6 2 of 6 4 of 6 3 of 6 3 of 6 3 of 5 4 of 6 4 of 6 3 of 6 1 of 5 5 of 6 5 of 6 2 of 6 5 of 6 4 of 6 2 of 6 6 of 6 5 of 6 2 of 6

% Chg

My Property 66.1 47.6 69.4 91.0 137.3 54.1 -10.8 -1.1 5.8 -8.3 2.6 30.7 33.2 80.6 38.2 3.0 -4.4 -8.3 120.9 82.1 3.2 116.5 85.6 -4.4 22.6 60.1 6.2

Competitive Set 1.7 21.1 22.1 19.4 9.5 -7.5 -1.6 -4.2 0.6 -3.1 3.4 9.1 -2.9 -7.0 -60.0 -3.0 7.8 -26.5 -1.2 4.4 -33.1 -0.1 3.9 -9.0

Index (MPI) 63.3 21.9 38.7 59.9 116.7 66.6 -9.4

-9.7

9.4 10.4

-9.4

1.3 2.0 34.9 28.9 65.5 42.4 10.7

-23.0

24.1 129.3 127.8 68.9 40.3 119.2 77.9 43.0 22.8 54.2 16.6



My Property 40.02 37.94 39.30 39.06 39.39 44.45 54.74 85.73 74.65 62.38 52.30 41.61 37.97 37.33 37.96 37.22 36.40 37.37 44.06 41.00 37.22 45.43 41.36 36.99 66.41 60.76 54.13

Competitive Set 58.00 55.72 59.35 58.87 60.40 69.63 73.61 97.14 93.75 90.06 78.18 63.62 60.65 58.76 59.96 58.25 59.51 51.79 63.03 62.63 58.05 63.27 63.57 57.27 80.50 75.52 75.60

Index (ARI) 69.0 68.1 66.2 66.3 65.2 63.8 74.4 88.3 79.6 69.3 66.9 65.4 62.6 63.5 63.3 63.9 61.2 72.1 69.9 65.5 64.1 71.8 65.1 64.6 82.5 80.5 71.6


% Chg

My Property -6.7 -4.6 3.3 1.7 8.2 -10.9 -23.3 -21.6 -4.7 -7.6 -15.9 1.3 -7.0 -9.2 3.1 -10.6 39.9 -8.5

Competitive Set -3.4 -4.2

-6.3

3.2

-12.5

1.7

-21.8

0.2 5.2

-0.3

2.0 -1.6 -0.4 -5.4

-5.1

4.6

-1.6

5.4

-3.4

1.0 -1.1 -1.5 1.1 -0.6 -7.3 1.0

-9.0

0.5 -9.9 8.4 -6.2

-10.9

0.1

Index (ARI) -3.4 -0.5

-4.3

8.0

-2.4

4.2 -9.2 -13.9 -21.9 2.9 -2.3 -9.5 -22.9 -17.1 -9.3 -6.7 -4.4 -3.7 -6.2

-25.6

13.0 0.3 -6.4 -2.0 2.1 -9.4 -0.7 29.1 -2.5 -11.0



My Property 12.57 9.45 10.64 13.49 17.40 23.58 36.04 72.53 63.44 44.27 39.85 23.52 15.89 16.78 14.20 13.24 15.37 18.17 9.61 16.29 15.25 10.80 18.25 15.62 22.47 32.92 31.15

Competitive Set 22.06 21.51 22.79 23.08 28.81 37.67 54.37 79.31 72.67 63.22 62.06 34.69 23.84 24.74 22.35 21.23 21.85 11.20 26.25 28.13 19.17 28.60 29.99 18.07 46.27 45.08 41.09

Index (RGI) 57.0 43.9 46.7 58.5 60.4 62.6 66.3 91.5 87.3 70.0 64.2 67.8 66.6 67.8 63.5 62.4 70.3 162.2 36.6 57.9 79.5 37.8 60.9 86.4 48.6 73.0 75.8


% Chg

My Property 55.0 40.8 75.1 94.2 122.3 34.9 -30.3 6.9 5.5 -18.3 2.6 26.4 77.7 33.5 -1.9 -11.7 -22.9 123.9 69.5 -6.3 123.4 69.0 -14.5 71.6 46.5 -5.4

Competitive Set -1.8 16.0 16.9 16.5 13.0 -5.9 -1.4 -5.0 -10.8

-21.3

0.1 -8.4 8.1 15.0 -1.9 -70.3 -2.0 7.2 -31.8 -0.2 4.9 -39.8 8.2 -2.6 -8.9

Index (RGI) 57.8 21.3 49.8 66.7 96.7 43.4 -29.3 12.6

-2.3

7.9 -8.3 -21.4 11.9 17.0 54.4 36.1

-8.0

6.7

-24.2

16.4 159.1 128.5 58.1 37.4 123.8 61.2 42.0 58.5 50.4 3.8

Rank 1 of 6 2 of 6 1 of 6 1 of 6 1 of 6 2 of 6 6 of 6 2 of 6 2 of 6 5 of 6 6 of 6 1 of 6 2 of 6 1 of 5 1 of 6 2 of 6 2 of 6 1 of 5 1 of 6 1 of 6 2 of 6 1 of 6 1 of 6 2 of 6 1 of 6 1 of 6 3 of 6Exchange Rate

Running 12 Month


2018

2018

2018

2019

2019

2019

2020

2020

2020 Running 12 Month

Running 12 Month

RevPAR

Running 3 Month

Running 3 Month

Year To DateADR

Year To Date

Occupancy (%)Running 3 MonthYear To Date

39597999

119139159179199219

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Monthly Indexes

Occupancy Index (MPI) ADR Index (ARI) RevPAR Index (RGI) 100 %

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

5

Year to Date Running 3 Month Running 12 Month

RevPAR Percent Change

My Property Competitive Set

23

Response Report

This Year

Apr 9th - First Day of PassoverApr 10th - Good FridayApr 12th - Easter SundayApr 23rd - First Day of Ramadan

Last Year

Apr 19th - First Day of PassoverApr 19th - Good FridayApr 21st - Easter Sunday

STR# Name City, State Zip Phone May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

16428 Econo Lodge Near Snake River Idaho Falls Idaho Falls, ID 83401-2625 (208) 523-5993 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●4105 Rodeway Inn Idaho Falls Idaho Falls, ID 83402-3313 (208) 523-8000 ● ● ● ● ● ● ● ● ○ ● ● ● ● ● ● ● ● ● ● ● ● ●6400 Motel 6 Idaho Falls Idaho Falls, ID 83402-2636 (208) 522-0112 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●8605 Super 8 Idaho Falls Idaho Falls, ID 83402-1821 (208) 881-0355 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●45299 Fairfield Inn & Suites Idaho Falls Idaho Falls, ID 83402-3348 (208) 552-7378 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●53727 Motel 6 Idaho Falls Snake River Idaho Falls, ID 83402 (208) 529-5400 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Data received:

○ = Monthly Only● = Monthly & Daily

2020

458


198405

2414

2112

92 195706

2518

2215 16

2826

152221

2018 2019

5 62 411 12 1318

27

3

2016

30

1925 26

April 2020 (This Year)

4321

19

5

ThuWed

9

23

91

April 2019 (Last Year)Sun Mon Tue Wed Thu Fri SatSatMonSun

10 117

Tue

6 8

Fri

87 10

2327

17

2928 3020 24

171413

81 200210

62

89

19700779

200808

55

Rooms

197406

Open Date

29

24

FINANCIAL ANALYSIS Day of Week and Weekday / Weekend Report

Day of Week Time Period % Chg % Chg % Chg % Chg % Chg % Chg % Chg % Chg % Chg

Sunday Current Month 49.5 17.7 -55.5 279.6 106.5 37.75 -16.6 50.11 -21.7 75.3 6.5 18.67 -23.4 8.86 -65.2 210.7 120.0Year To Date 38.7

-8.10.3 28.1 -18.6 137.5 23.2 37.34 -8.2 54.38 -6.5 68.7 -1.8 14.44 -7.9 15.30 -23.9 94.4 21.1

Running 3 Month 40.6 26.6 -26.0 152.6 29.3 37.26 -9.7 54.17 -7.7 68.8 -2.1 15.11 -13.6 14.39 -31.7 105.0 26.6Running 12 Month 52.8

-4.39.2 44.3 -8.7 119.3 19.6 51.89 -11.2 69.82 -2.1 74.3 -9.3 27.39 -3.0 30.89 -10.5 88.7 8.5

Monday Current Month 45.4 -20.6 19.4 -63.1 233.9 115.0 36.66 -17.8 51.61 -28.5 71.0 14.9 16.63 -34.8 10.01 -73.6 166.1 147.1Year To Date 38.9 -9.8 32.8 -25.2 118.6 20.6 36.24 -11.8 59.29 -9.4 61.1 -2.6 14.11 -20.4 19.46 -32.2 72.5 17.4Running 3 Month 39.9 31.0 -32.3 128.7 23.0 35.69 -14.1 59.03 60.5 -3.3 14.23 -28.5 18.29 -39.8 77.8 18.9Running 12 Month 54.2

-16.82.9 53.6 -6.9 101.0 10.5 52.22 -12.3 78.10

-11.12.5 66.9 -14.4 28.29 -9.7 41.88 -4.5 67.5 -5.4

Tuesday Current Month 46.2 -13.6 21.9 -61.1 210.8 122.0 37.59 -13.4 53.32 -27.2 70.5 18.9 17.37 -25.2 11.68 -71.7 148.7 163.9Year To Date 38.2 -8.8 34.9 -25.4 109.4 22.2 36.95 -9.8 62.89 -6.3 58.8 -3.7 14.10 -17.7 21.94 -30.0 64.3 17.6Running 3 Month 39.5 -17.5 32.8 -35.1 120.6 27.2 36.56 -11.6 61.28 59.7 -1.9 14.46 -27.0 20.09 -41.5 72.0 24.8Running 12 Month 55.9 -0.3 56.5 -8.4 98.9 8.9 52.74 -11.5 79.18

-9.93.4 66.6 -14.4 29.46 -11.7 44.70 -5.3 65.9 -6.8

Wednesday Current Month 47.6 -15.4 23.9 -56.7 198.9 95.6 37.04 -15.5 51.60 -28.2 71.8 17.7 17.64 -28.5 12.35 -68.9 142.8 130.1Year To Date 39.8 -2.6 34.4 -25.4 115.7 30.6 37.19 -6.8 60.69 -5.7 61.3 14.80 -9.2 20.87 -29.6 70.9 29.0Running 3 Month 41.5 33.0 -32.1 125.8 31.0 36.98 -7.9 58.66 63.1

-1.23.6 15.34 -18.1 19.33 -39.7 79.3 35.8

Running 12 Month 57.4-11.1

3.9 58.2 -7.4 98.7 12.3 56.65 -8.6 78.45-11.1

1.8 72.2 -10.2 32.53 -5.0 45.63 -5.7 71.3 0.8

Thursday Current Month 48.5 3.1 24.3 -56.6 199.8 137.4 37.70 -16.5 51.24 -25.7 73.6 12.3 18.27 -13.9 12.43 -67.7 147.0 166.5Year To Date 39.3 8.8 33.1 -26.8 118.4 48.8 37.57 -8.8 57.28 -7.1 65.6 -1.8 14.75 -0.7 18.99 -32.0 77.7 46.1Running 3 Month 41.3 3.9 32.9 -31.1 125.7 50.8 37.31 -10.1 56.78 -9.4 65.7 -0.8 15.41 -6.6 18.66 -37.6 82.6 49.6Running 12 Month 54.6 1.3 54.1 -12.8 100.8 16.1 53.73 -15.4 74.43 -1.2 72.2 -14.4 29.31 -14.3 40.30 -13.8 72.7 -0.6

Friday Current Month 50.3 0.5 19.8 -69.7 253.6 232.1 37.48 -14.1 52.21 -27.0 71.8 17.7 18.84 10.35 -77.9 182.0 290.8Year To Date 45.7 17.8 35.7 -31.7 127.8 72.6 37.85 -7.9 56.87 -9.4 66.6 1.7 17.28

-13.68.6 20.31 -38.1 85.1 75.4

Running 3 Month 45.8 8.5 33.1 -39.3 138.6 78.8 37.33 -9.4 56.02 -11.3 66.6 2.2 17.11 18.52 -46.2 92.4 82.7Running 12 Month 63.4 11.0 59.5 -9.9 106.6 23.2 55.69 -9.7 75.31 -2.8 73.9 -7.1 35.28

-1.70.2 44.77 -12.4 78.8 14.4

Saturday Current Month 53.3 1.6 23.1 -56.6 230.2 133.8 37.29 -18.1 52.38 -15.6 71.2 -3.0 19.86 12.12 -63.3 163.9 126.8Year To Date 46.5 20.1 32.0 -29.5 145.4 70.4 37.26 -11.7 53.89 -6.4 69.1 -5.7 17.34

-16.86.1 17.25 -34.0 100.5 60.8

Running 3 Month 47.2 12.4 31.7 -33.1 148.6 68.0 37.67 -11.5 54.23 -7.8 69.4 -4.0 17.76 17.21 -38.3 103.2 61.3Running 12 Month 64.6 15.1 54.3 -8.4 119.0 25.6 55.26 -8.5 72.53 -1.5 76.2 -7.1 35.69

-0.55.3 39.37 -9.8 90.7 16.8

Weekday Current Month 47.5 -11.6 21.7 -58.4 219.0 112.8 37.36 -15.9 51.61 -26.9 72.4 15.1 17.74 -25.6 11.19 -69.6 158.5 144.9(Sun-Thu) Year To Date 39.0 -2.8 32.7 -24.6 119.2 28.8 37.07 -9.0 59.10 -7.2 62.7 -2.0 14.45 -11.6 19.33 -30.0 74.8 26.2

Running 3 Month 40.6 31.2 -31.5 129.8 31.7 36.77 -10.7 58.12 63.3 -0.6 14.91 -19.5 18.15 -38.5 82.1 30.9Running 12 Month 55.0

-9.83.3 53.3 -8.8 103.0 13.3 53.51 -11.8 76.29

-10.11.1 70.1 -12.7 29.42 -8.9 40.70 -7.9 72.3 -1.1

Weekend Current Month 51.8 1.1 21.5 -63.8 241.0 179.3 37.38 -16.2 52.30 -22.2 71.5 7.8 19.35 11.23 -71.9 172.2 201.1(Fri-Sat) Year To Date 46.1 19.0 33.9 -30.7 136.1 71.7 37.55 -9.8 55.46 -8.1 67.7 -1.9 17.31

-15.37.3 18.78 -36.3 92.2 68.5

Running 3 Month 46.5 10.5 32.4 -36.5 143.7 74.0 37.51 -10.4 55.11 -9.9 68.1 -0.6 17.45 17.84 -42.7 97.8 72.9Running 12 Month 64.0 13.1 56.9 -9.2 112.5 24.5 55.47 -9.1 73.98 -2.2 75.0 -7.0 35.49

-1.02.8 42.07 -11.2 84.3 15.7

Total Current Month 48.6 21.6 -60.0 224.8 129.3 37.37 -15.9 51.79 -25.6 72.1 13.0 18.17 -22.9 11.20 -70.3 162.2 159.1Year To Date 41.0

-8.33.2 33.0 -26.5 124.1 40.3 37.22 -9.2 58.05 -7.3 64.1 -2.0 15.25 -6.3 19.17 -31.8 79.5 37.4

Running 3 Month 42.2 31.5 -33.1 133.8 43.0 36.99 -10.6 57.27 64.6 -0.7 15.62 -14.5 18.07 -39.8 86.4 42.0Running 12 Month 57.5

-4.46.2 54.3 -9.0 105.9 16.6 54.13 -10.9 75.60

-9.90.1 71.6 -11.0 31.15 -5.4 41.09 -8.9 75.8 3.8

Weekday/Weekend

My Property Competitive Set

Occupancy (%) Average Daily Rate RevPAR

My Property Competitive Set Index (MPI)


My Property Index (RGI)Competitive Set Index (ARI)

13

23

33

43

53

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Weekday Weekend

Current Month Occupancy

My Property

Competitive Set

32

37

42

47

52

57

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Weekday Weekend

Current Month ADR

25

Daily Data for the Month

We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We ThApril

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

My Property 52.2 54.3 51.1 55.4 50.0 44.6 51.1 48.9 45.7 53.3 54.3 52.2 52.2 48.9 47.8 48.9 42.4 47.8 43.5 44.6 42.4 44.6 45.7 54.3 55.4 52.2 40.2 42.4 44.6 47.8

Competitive Set 27.0 22.5 19.6 23.2 17.7 19.4 24.8 23.8 22.2 17.4 20.9 13.9 17.7 16.4 21.5 21.9 21.9 23.2 18.6 19.0 19.6 21.9 25.4 19.1 23.8 19.3 20.3 25.4 23.5 27.3

Index (MPI) 193.2 241.5 260.5 239.4 282.7 229.7 206.3 205.6 205.8 306.7 260.0 374.4 295.0 298.4 222.0 223.7 193.9 206.6 233.1 234.9 216.1 203.8 179.7 284.2 233.0 270.4 198.5 166.9 189.9 175.0

% Chg

My Property -7.7 28.2 2.2 6.3 -4.2 -16.3 -4.1 -11.8 -23.6 -19.7 31.6 60.0 33.3 36.4 18.9 55.2 25.8 0.0 -24.5 -18.0 -15.2 -38.8 -16.0 8.7 -19.0 -28.4 -50.0 -40.9 20.6 -12.0

Competitive Set -53.1 -56.4 -59.9 -43.9 -57.1 -61.6 -54.9 -56.7 -69.2 -81.3 -64.1 -69.3 -62.4 -68.6 -58.9 -58.1 -62.8 -55.9 -36.8 -65.6 -61.2 -61.2 -46.6 -68.9 -61.1 -55.0 -66.1 -64.8 -65.8 -58.3

Index (MPI) 97.0 194.1 154.8 89.3 123.6 118.0 112.8 103.7 148.3 329.8 266.4 420.8 254.3 334.1 189.6 270.4 238.0 126.6 19.4 138.6 118.5 57.5 57.2 249.4 108.2 59.3 47.7 67.8 252.3 111.1

April

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

My Property 37.01 36.56 36.05 36.81 36.61 35.44 36.50 36.66 35.34 36.82 37.35 37.09 36.54 37.18 37.48 38.41 37.57 38.53 37.71 36.83 38.17 34.60 38.09 39.39 36.65 39.53 37.97 38.81 39.48 40.14

Competitive Set 52.79 53.49 52.25 51.58 49.30 47.09 53.62 49.75 49.54 47.61 53.60 46.72 49.13 55.51 51.56 49.72 56.80 52.46 53.24 52.61 51.05 50.00 49.79 51.25 52.17 50.40 57.33 53.50 53.84 53.52

Index (ARI) 70.1 68.4 69.0 71.4 74.3 75.2 68.1 73.7 71.3 77.3 69.7 79.4 74.4 67.0 72.7 77.3 66.1 73.4 70.8 70.0 74.8 69.2 76.5 76.9 70.3 78.4 66.2 72.5 73.3 75.0

% Chg

My Property -6.4 -19.5 -16.2 -16.8 -10.1 -9.2 -5.1 -8.3 -15.2 -16.4 -15.3 -10.8 -21.3 -20.4 -23.7 -23.4 -10.0 -22.3 -21.6 -20.6 -13.8 -26.7 -17.1 -12.3 -17.6 -17.6 -24.8 -21.8 -25.9 -23.3

Competitive Set -20.1 -22.0 -15.0 -5.5 -22.9 -43.7 -37.2 -35.1 -31.1 -45.1 -17.7 -26.9 -30.3 -29.5 -29.6 -27.1 -8.4 -17.4 -17.2 -22.1 -28.2 -30.2 -24.1 -21.5 -17.0 -21.1 -17.3 -21.3 -21.8 -18.0

Index (ARI) 17.1 3.2 -1.5 -12.0 16.5 61.4 51.2 41.4 23.0 52.5 2.9 22.0 12.9 13.0 8.4 5.1 -1.7 -6.0 -5.2 2.0 20.1 5.0 9.3 11.8 -0.8 4.5 -9.1 -0.5 -5.3 -6.4

April

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

My Property 19.31 19.87 18.42 20.41 18.31 15.79 18.65 17.93 16.13 19.61 20.30 19.35 19.06 18.18 17.92 18.79 15.93 18.43 16.40 16.41 16.18 15.42 17.39 21.41 20.32 20.63 15.27 16.45 17.59 19.20

Competitive Set 14.26 12.04 10.25 11.94 8.72 9.14 13.28 11.84 10.99 8.27 11.20 6.51 8.69 9.10 11.11 10.87 12.42 12.14 9.93 9.98 10.01 10.93 12.65 9.80 12.41 9.72 11.61 13.59 12.64 14.63

Index (RGI) 135.4 165.0 179.7 170.9 210.0 172.9 140.5 151.5 146.8 237.2 181.2 297.3 219.4 199.8 161.4 172.8 128.2 151.7 165.1 164.5 161.6 141.0 137.5 218.4 163.7 212.1 131.5 121.1 139.2 131.2

% Chg

My Property -13.6 3.2 -14.4 -11.6 -13.9 -24.0 -9.0 -19.1 -35.3 -32.8 11.4 42.7 4.9 8.6 -9.3 18.9 13.2 -22.3 -40.8 -34.9 -26.9 -55.1 -30.3 -4.6 -33.3 -40.9 -62.4 -53.8 -10.6 -32.5

Competitive Set -62.6 -66.0 -65.9 -47.0 -66.9 -78.4 -71.7 -71.9 -78.8 -89.7 -70.4 -77.5 -73.8 -77.9 -71.1 -69.5 -65.9 -63.5 -47.7 -73.2 -72.1 -72.9 -59.5 -75.6 -67.7 -64.5 -72.0 -72.3 -73.2 -65.8

Index (RGI) 130.7 203.5 151.0 66.6 160.5 251.9 221.7 188.0 205.3 555.2 276.9 535.5 300.0 390.3 214.0 289.4 232.2 113.0 13.2 143.2 162.3 65.4 71.8 290.6 106.5 66.4 34.2 66.9 233.8 97.6


ADR

RevPAR

Occupancy (%)

61

111

161

211

261

311

361

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Daily Indexes for the Month of April

Occupancy Index (MPI) ADR Index (ARI) RevPAR Index (RGI) 100 %

26

FINANCIAL ANALYSIS

HISTORICAL P&L

2018 2019

Rooms 92 92

Available Rooms 33,580 33,580

Rooms Sold 16,219 19,141

Occupancy 48.3% 57.0%

ADR $63.66 $55.15

RevPAR $30.75 $31.44

Revenue/Room $12,540 $12,829

Income

Room Revenue 1,006,615 87.3% $1,048,556 88.8%

Lounge $64,491 5.6% $59,690 5.1%

Restaurant Lease $72,000 6.2% $72,000 6.1%

Other Income - Misc. $10,597 0.9% $0 0.0%

Total Revenue $1,153,703 100.0% $1,180,246 100.0%

27

2018 2019Departmental Expenses

Rooms $295,444 25.6% $326,271 27.6%

Food & Beverage $0 0.0% $0 0.0%

Other Operated Depts & Rentals $187,457 16.2% $50,687 4.3%

Total Departmental Expenses $482,901 41.9% $376,958 31.9%

Gross Operating Income $1,358,018 57.9% $1,387,889 57.9%

Undistributed Operating ExpensesAdministration & General $62,305 5.4% $49,963 4.2%

Marketing $3,096 0.3% $0 0.0%

Franchise Fees $50,000 4.3% $39,212 3.3%

Utility Costs $22,561 2.0% $39,129 3.3%

Property Operations & Maintenance $59,605 5.2% $21,453 1.8%

Total Undistributed Operating Expenses $197,567 17.1% $149,757 12.7%

Gross Operating Profit $473,235 41.0% $653,531 55.4%

Fixed ExpensesProperty Taxes $23,280 2.0% $25,716 2.2%

Insurance $687 0.1% $6,153 0.5%

Total Fixed Charges $23,967 2.1% $31,869 2.7%

Total Expenses $704,435 61.1% $558,584 47.3%

Amount Available for Debt Service & Other Fixed Charges

$449,268 38.9% $621,662 52.7%

Capital Replacement Reserve $30,198 2.6% $31,457 2.7%

Management Fee $32,000 2.8% $32,000 2.7%

Net Operating Income (EBITDA) $387,070 33.6% $558,205 47.3%

28

FINANCIAL ANALYSIS

5 YEAR PROFORMA

2019 Year 1 Year 2 Year 3 Year 4 Year 5

Rooms 92 92 92 92 92 92

Available Rooms 33,580 33,580 33,580 33,580 33,580 33,580

Rooms Sold 19,443 18,471 19,210 19,786 20,182 20,585

Occupancy 57.9% 55.0% 57.2% 58.9% 60.1% 61.3%

ADR $55.00 $51.15 $53.71 $55.32 $56.43 $57.55

RevPAR $31.85 $28.14 $30.72 $32.59 $33.91 $35.28

Revenue / Room $12,829 $11,704 $12,747 $13,495 $13,982 $14,485

Income

Room Revenue $1,048,556 88.8% $944,775 87.7% $1,031,695 88.0% $1,094,525 88.2% $1,138,744 88.5% $1,184,749 88.9%

F&B Revenue $59,690 5.1% $54,000 5.0% $60,000 5.1% $63,000 5.1% $63,600 4.9% $63,900 4.8%

Events & Catering $72,000 6.1% $72,000 6.7% $72,000 6.1% $72,000 5.8% $72,000 5.6% $72,000 5.4%

Other Dept Rentals / Misc

$0 0.0% $6,000 0.6% $9,000 0.8% $12,000 1.0% $12,000 0.9% $12,000 0.9%

Total Revenue $1,180,246 100.0% $1,076,775 100.0% $1,172,695 100.0% $1,241,525 100.0% $1,286,344 100.0% $1,403,326 100.0%

29

2019 Proforma Year1 Year2 Year 3 Year 4 Year 5Departmental Expenses

Rooms $326,271 27.6% $258,590 24.0% $270,854 23.1% $280,958 22.6% $292,632 22.7% $308,777 23.2%

Food & Beverage $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0%

Other Operated Depts & Rentals

$50,687 4.3% $46,177 4.3% $50,905 4.3% $54,411 4.4% $55,499 4.3% $56,609 4.2%

Total Departmental Expenses $376,958 31.9% $304,766 28.3% $321,759 27,4% $335,369 27.0% $348,131 27.1% $365,386 27.4%

Gross Operating Income $803,288 68.1% $772,009 71.7% $850,935 72.6% $906,156 72.6% $938,213 72.9% $967,263 72.6%

Undistributed Operating ExpensesAdministration & General $49,963 4.2% $46,800 4.3% $51,660 4.4% $51,720 4.2% $51,780 4.0% $51,840 3.9%

Marketing $0 0.0% $6,000 0.6% $6,000 0.5% $6,000 0.5% $6,000 0.5% $6,000 0.5%

Franchise Fees $39,212 3.3% $37,791 3.5% $41,268 3.5% $43,781 3.5% $45,550 3.5% $47,390 3.6%

Utility Costs $39,129 3.3% $32,324 3.0% $34,577 2.9% $36,604 2.9% $38,345 3.0% $40,141 3.0%

Property Operations & Maintenance

$21,453 1.8% $36,941 3.4% $43,221 3.7% $45,507 3.7% $47,427 3.7% $49,404 3.7%

Total Undistributed Operating Expenses

$149,757 12.7% $159,856 14.8% $176,726 15.1% $183,612 14.8% $189,101 14.7% $194,775 14.6%

Gross Operating Profit $653,531 55.4% $612,153 56.9% $674,209 57.5% $722,544 58.2% $749,111 58.2% $772,487 58.0%

Fixed ExpensesProperty Taxes $25,716 2.2% $27,000 2.2% $27,000 2.3% $27,000 2.2% $27,000 2.1% $27,000 2.0%

Insurance $6,153 0.5% $6,600 0.6% $6,600 0.6% $6,600 0.5% $6,600 0.5% $6,600 0.5%

Total Fixed Charges $31,869 2.7% $33,600 3.1% $33,600 2.9% $33,600 2.7% $33,600 2.6% $33,600 2.5%

Total Expenses $558,584 47.3% $498,222 46.3% $532,086 45.4% $552,581 44.5% $570,832 44.4% $593,761 44.6%

Amount Available for Debt Service & Other Fixed Charges

$621,662 52.7% $578,553 53.7% $640,609 54.6% $688,944 55.5% $715,511 55.6% $738,887 55.4%

Capital Replacement Reserve

$31,457 2.7% $43,071 4.0% $46,908 4.0% $49,661 4.0% $51,454 4.0% $53,306 4.0%

Management Fee $32,000 2.7% $32,303 3.0% $35,181 3.0% $37,246 3.0% $38,590 3.0% $39,979 3.0%

Net Operating Income (EBITDA)

$558,205 47.3% $503,179 46.7% $558,520 47.6% $602,037 48.5% $625,467 48.6% $645,602 48.4%


31

MARKET COMPETITORS

32

MARKET COMPETITORS

Address Sale Price Price Per Room Number of Keys Sale Date

TownePlace Suites | Marriot2376 Via Caporatti DrPocatello, ID 83201

$10,400,000 $111,827 93 12/13/13

AmeriTel Inn1440 Bench RdPocatello, ID 83201

$9,719,379 $65,671 148 8/6/12

Best Western1415 Bench RdPocatello, ID 83201

$7,800,000 $52,348 149 11/17/16

Clarion Inn1399 Bench RdPocatello, ID 83201

$7,300,000 $37,244.89 196 8/26/19

Red Lion Hotel | Pocatello(Part of Portfolio)1555 Pocatello Creek RdPocatello, ID 83201

$7,090,484 $47,269 150 7/31/98

Clarion Inn1399 Bench RdPocatello, ID 83201

$6,250,000 $31,887 196 8/17/17

Best Western1415 Bench RdPocatello, ID 83201

$5,600,000 $37,583 149 10/27/13

Ramada Inn133 W Burnside AvePocatello, ID 83201

$4,160,000 $35,862 116 9/20/07

Averages: $7,289,983 $52,461 - -

39

CENSUS/SAMPLE - PROPERTIES & ROOMS PIPELINE

CENSUS SAMPLE SAMPLE % MARKET: Idaho

Properties Rooms Properties Rooms Rooms UNDER CONSTRUCTION PLANNING

Market: Idaho 351 24,578 189 18,099 73.6 Properties Rooms Properties Rooms

Market Class: Upper Midscale Class

94 8,745 81 8,158 93.3 6 572 22 2,030


137 9,229 73 6,628 71.8

Submarket Scale: Midscale Chains

49 4,494 46 4,321 96.2

Competitive Set: Competitors 5 593 5 593 100.0

34

MARKET COMPETITORS

Address:Red Lion Hotel | Pocatello1555 Pocatello Creek Rd

Pocatello, ID 83201

Sale Price $6,400,000

Price Per Room $42,667

Number of Keys 150

Sale Date -

Address:TownePlace Suites | Marriot

2376 Via Caporatti DrPocatello, ID 83201



Number of Keys 93

Sale Date 12/13/13

Address:AmeriTel Inn

1440 Bench RdPocatello, ID 83201



Number of Keys 148

Sale Date 8/6/12

Subject Property

35

Address:Best Western




Number of Keys 149

Sale Date 11/17/16

Address:Clarion Inn



Price Per Room $37,244.89

Number of Keys 196

Sale Date 8/26/19

Address:

Red Lion Hotel | Pocatello(Part of Portfolio)

1555 Pocatello Creek RdPocatello, ID 83201



Number of Keys 150

Sale Date 7/31/98

Subject Property

36

MARKET COMPETITORS

Address:Best Western




Number of Keys 149

Sale Date 10/27/13

Address:Clarion Inn




Number of Keys 196

Sale Date 8/17/17

Address:Ramada Inn

133 W Burnside AvePocatello, ID 83201



Number of Keys 116

Sale Date 9/20/07


39

MARKET OVERVIEW

40

MARKET OVERVIEW

NORTHWEST

Smaller Markets Drive Regional Gains; Property Values Climb to Record Levels

Hotel demand heightens in the Rocky Mountains and Great Plains while supply pressure persists in the region’s primary metros. The Northwest recorded sizable ADR and RevPAR growth from 2011 to 2017 as hotel demand significantly escalated in the region. While gains have moderated since, daily rates and hotel performance metrics sat at historically high levels entering 2020, supported by improving annual occupancy rates in four of the region’s five states in 2019. During that 12-month span, Wyoming recorded a 510-basis-point jump, while annual occupancy dipped slightly in Washington as increased construction activity weighed on demand. Similar conditions are projected for this year as Seattle and Portland continue to be impacted by new supply, with 3.8 percent and 5.9 percent of each metro’s inventory underway, respectively. Heightened development in these markets will impact hotel performance in Washington and Oregon, yet occupancy and RevPAR in the Northwest will improve, as increased traffic to national parks and ski resorts in Wyoming, Montana, and Idaho bolster regional fundamentals.

Buyer pool expands as double-digit returns and solid fundamentals drive deal flow. Heightened investor competition for independent and limited service hotels in rural locales and larger cities has positively impacted asset values, with average pricing in the region up by nearly 20 percent over the past year. While property valuations have risen rapidly, hotels with less than 100 rooms remain available for $1 million to $3 million in Idaho, Montana, and Wyoming. Here, lodging facilities near recreational activities, colleges, and major transportations routes provide buyers with 12 percent-plus yields. Buyers seeking a greater mix of property types in more urban areas comb the Seattle and Portland metros, accepting cap rates in the high-4 and mid-5 percent range for limited and select service assets.

States: Idaho, Montana, Oregon, Washington, Wyoming

2020 Demand Growth2.5% Year-Over-Year Room Nights

41

NORTHWEST

2020 REGIONAL HIGHLIGHTS

2.6%100bps11%

Percent of Inventory Under construction as of December 2019

• In June, British Airways will offer nonstop flights from London toPortland five days a week. These arrivals should increase the metro’sinternational visitor count, aiding local hotels.

• The Port of Seattle extended its 2020 cruise season from April 1 toOctober 19. As part of this expansion, Norwegian Cruise Line willbring a third ship, the Norwegian Sun, to the port. The vessel will sail11-day Alaskan cruises, bringing additional visitors to the city.

• Rapid population growth and the proximity to luxury ski resortsand Yellowstone National Park has triggered an uptick in Bozeman,Montana, hotel development. Marriott, Residence Inn and Hilton areeach constructing or planning properties in the city.

• A 1.4 million-square-foot expansion of the Washington StateConvention Center in Seattle is underway and estimated to becompleted before the end of 2021.

Five-Year Occupancy Growth 2015-2020

Five-Year RevPAR Growth

* 2019 = recent openings; 2020 = under construction as of December 2019Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics

42

NORTHWEST

MARKET OVERVIEW

2020 REGION FORECAST

More than 7,300 rooms are under construction throughout the region and an additional 10,500 rooms are expected to break ground within the next 12 months. Roughly 55 percent of the rooms currently underway are in either the Seattle or Portland metros.

Supplyup 1.7%

Occupancyup to 50 bps

ADR down 0.3%

RevPARup 0.4%

Investment

Following a 70-basis-point increase last year, annual occupancy in the Northwest climbs to 65.4 percent in 2020.

The average daily rate adjusts nominally for a third straight year, dipping to $121.81. In 2019, a rise of 0.4 percent was recorded.

Steady improvements in occupancy and a stable average daily rate will lift RevPAR to $81.63. This slight uptick will trail last year’s gain of 1.2 percent.

Montana’s Glacier Park International Airport recorded a 15 percent rise in passengers last year, warranting the $100 million terminal expansion slated to break ground in 2020. Future increases in flights and passenger numbers should heighten investor competition for smaller hotels along Highway 93. * Forecast

Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics

43

CREATED IN JULY 2019

DEMOGRAPHICS

Population 1 Mile 3 Mile 5 Mile2023 Projection

Total Population 12,014 62,057 105,166

2018 Estimate


2010 Census


2000 Census


Daytime Population

2018 Estimates 18,911 92,984 124,194

Households 1 Miles 3 Miles 5 Miles2023 Projection

Total Households 4,732 23,944 38,105

2018 Estimate


Average (Mean) Household Size 2.43 2.60 2.77

2010 Census


2000 Census


Housing Units 1 Miles 3 Miles 5 MilesOccupied Units

2023 Projects 4,732 23,944 38,105

2018 Estimate 4,953 23,694 36,265

Households by Income 1 Mile 3 Mile 5 Mile2018 Estimate

$200,000 or More 1.45% 3.57% 4.00%

$150,000 - $199,000 1.32% 3.84% 4.03%

$100,000 - $149,000 6.52% 12.82% 14.31%

$75,000 - $99,999 10.18% 14.27% 15.57%

$50,000 - $74,999 17.22% 19.02% 20.36%

$35,000 - $49,999 17.38% 14.02% 13.46%

$25,000 - $34,999 14.30% 10.99% 9.72%

$15,000 - $24,999 14.62% 10.34% 8.98%

Under $15,000 17.00% 11.11% 9.58*

Average Household Income $50,648 $72,884 $77,658

Median Household Income $37,546 $54,503 $59,957

Per Capita Income $20,312 $27,935 $27,883

Population Profile 1 Mile 3 Mile 5 MilePopulation 25+ by Education Level

2018 Estimate Population Age 25+ 7,477 37,008 58,660

Elementary (0-8) 2.94% 2.07% 2.07%

Some High School (9-11) 10.53% 6.73% 6.01%

High School Graduate (12) 36.72% 27.79% 26.99%

Some College (13-15) 24.81% 25.91% 25.72%

Associate Degree Only 7.45% 9.21% 9.64%

Bachelors Degree Only 11.76% 18.07% 19.53%

Graduate Degree 3.99% 8.98% 9.01%

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DEMOGRAPHICS

POPULATIONIn 2019, the population in your selected geography is 12,079. The population has changed by 2.49% since 2000. It is estimated that the population in your area will be 12,014.00 five years from now, which represents a change of -0.54% from the current year. The current population is 50.70% male and 49.30% female. The median age of the population in your area is 31.08, compare this to the US average which is 37.95. The population density in your area is 3,835.92 people per square mile.

RACE & ETHNICITYThe current year racial makeup of your selected area is as follows: 83.48% White, 1.05% Black, 0.19% Native American and 0.41% Asian/Pacific Islander. Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19% Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are counted independently of race.

People of Hispanic origin make up 21.23% of the current year population in your selected area. Compare this to the US average of 18.01%.

HOUSEHOLDSThere are currently 4,679 households in your selected geography. The number of households has changed by 4.30% since 2000. It is estimated that the number of households in your area will be 4,732 five years from now, which represents a change of 1.13% from the current year. The average household size in your area is 2.43 persons.

INCOMEIn 2019, the median household income for your selected geography is $37,546, compare this to the US average which is currently $58,754. The median household income for your area has changed by 35.26% since 2000. It is estimated that the median household income in your area will be $42,932 five years from now, which represents a change of 14.35% from the current year.

The current year per capita income in your area is $20,312, compare this to the US average, which is $32,356. The current year average household income in your area is $50,648, compare this to the US average which is $84,609.

EMPLOYMENTIn 2019, there are 5,688 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 52.74% of employees are employed in white-collar occupations in this geography, and 48.11% are employed in blue-collar occupations. In 2019, unemployment in this area is 5.35%. In 2000, the average time traveled to work was 18.00 minutes.

HOUSINGThe median housing value in your area was $115,446 in 2019, compare this to the US average of $201,842. In 2000, there were 2,627 owner occupied housing units in your area and there were 1,859 renter occupied housing units in your area. The median rent at the time was $367.

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PRESENTED BYEddy NevarezAssociate DirectorNational Hospitality GroupCell: 818.339.6506Office: 818.212.2690Fax: [email protected] License: CA 01960485www.marcusmillichap.com

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