property summary — gmi-af, lp hampton inn & suites, … · 2020-01-30 · the segment,...

PROPERTY SUMMARY — GMI-AF, LP HAMPTON INN & SUITES, ANNAPOLIS, MD & HILTON GARDEN INN, FREDERICKSBURG, VA

GMC_PS_FNT_COV_CMYK.pdf 1 10/20/16 5:47 PM

The information contained herein has been obtained from sources believed to be reliable; however, Gentry Mills Capital makes no representation or warranty as to the accuracy of such information. See sources used to gather information on the last page of this document.

www.gentrymillscapital.com

TABLE OF CONTENTS SECTION I EXECUTIVE SUMMARY

• Overview 1 1

• Overview 2 2

SECTION II PROPERTY AND MARKET INFORMATION

Property Information 1

• Hampton Inn & Suites – Annapolis, MD 4

• Aerials 5

• Maps 7

Market Information

• Annapolis, MD 9

• Anne Arundel County 10

• Higher Education 10

• Healthcare 11

• Tourism 11

• Ft. George Meade 12

• Economic Impact 12

• Major Developments 12

• Employment Information 13

• Transportation 14

• Competitive Set 15

Property Information 2

• Hilton Garden Inn – Fredericksburg, VA 16

• Aerials 17

• Maps 18

Market Information

• Fredericksburg, VA 20

• Fredericksburg Expo & Conference Center 20

• Higher Education 21

• Healthcare 22

TABLE OF CONTENTS


SECTION II PROPERTY AND MARKET INFORMATION CONTINUED

• Tourism & Sports 22

• Logistics, Transportation & Trade 23

• Employment Information 23

• Competitive Set 24

SECTION III DEVELOPMENT TEAM

• Project Partner 25

• Management Group 29

SECTION IV FINANCIAL INFORMATION

SECTION V SPONSOR

• About Gentry Mills Capital 35

• Sources 40


TABLE OF CONTENTS


Overview - Property 1 – Hampton Inn & Suites Annapolis About The Hotel

The Hampton Inn and Suites Annapolis is located at 124 Womack Drive, Annapolis, Anne Arundel County, MD and is within 6 miles of the U. S. Naval Academy, 5 miles from historic downtown and 4.8 miles from St. John’s College. The 117-room, 5-story hotel was built in 1997 and offers a 950 sq. ft. meeting room. The hotel will undergo a $2.9 million renovation ($20,000 per key) as required by Hilton in order to maintain the Hilton brand standards and to keep the property as a market leader.

About Annapolis, Maryland

Annapolis, founded in 1649, is the capital of the state of Maryland, as well as the county seat of Anne Arundel County. It is situated on the Chesapeake Bay at the mouth of the Severn River, 25 miles south of Baltimore and about 30 miles east of Washington DC. It is part of the Baltimore-Washington metropolitan area. Annapolis is home to the United States Naval Academy and St. John’s College.

About The Hampton Inn & Suites Brand

Hampton® Hotels, part of Hilton Worldwide, Inc., is an award winning leader in the mid-priced hotel segment which include Hampton Inn, Hampton Inn & Suites and Hampton by Hilton. Hampton Hotels serve the value-conscious and quality-driven travelers with approximately 2,108 properties totaling 200,000+ rooms in 16 countries. Hampton Hotels offers high-quality accommodations and amenities and delivers excellent customer service defined as “Hamptonality” which is backed by the 100% Hampton Guarantee. Hampton Hotels have been ranked No. 1 on Entrepreneur Magazine’s 2015 Franchise 500 list for the 4th time in the past 5 years.

About Hilton Worldwide

Hilton Worldwide operates 13 brands in 100 countries with 4,610 hotels, resorts and timeshare properties comprising 758,502 rooms countries making them one of the world’s leading hospitality companies. For 95 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. Hilton’s Brand portfolio ranges from iconic luxury properties to innovative, focused-service hotels and is one of the highest performing and most diverse in the industry. Brands included in the Hilton portfolio are: Waldorf Astoria, Conrad, Canopy by Hilton, Curio – A Collection by Hilton, DoubleTree, Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites, Homewood Suites, Home 2 and Hilton Grand.

About Anne Arundel County

The county of Anne Arundel, which is adjacent to the City of Baltimore and Baltimore County, is included in the Baltimore-Columbia-Towson, MD Metropolitan Statistical Area, which is also included in the Washington-Baltimore-Arlington, DC-MD-VA-WV-PA Combined Statistical Area. The county seat of Anne Arundel County is Annapolis which is also the capital of the State.

Anne Arundel County is located on the Chesapeake Bay and has over 534 miles of coastline and is known for boating, fishing, crabbing, water skiing, sailing and swimming. It is located in close proximity to not only Baltimore but also Washington D.C.

EXECUTIVE SUMMARY

Annapolis Annapolis Annapolis

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Overview – Property 2 – Hilton Garden Inn Fredericksburg

About Hilton Worldwide

Hilton Worldwide operates 13 brands in 100 countries with 4,610 hotels, resorts and timeshare properties comprising 758,502 rooms countries making them one of the world’s leading hospitality companies. For 95 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. Hilton’s Brand portfolio ranges from iconic luxury properties to innovative, focused-service hotels and is one of the highest performing and most diverse in the industry. Brands included in the Hilton portfolio are: Waldorf Astoria, Conrad, Canopy by Hilton, Curio – A Collection by Hilton, DoubleTree, Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites, Homewood Suites, Home 2 and Hilton Grand.

About the Hotel

The Hilton Garden Inn is located at 1060 Hospitality Lane in Fredericksburg, VA. The 148-room, 5-story hotel was built in 2005 on approximately 3 acres of land and just completed a $2 million (approximately $13,500 per key) PIP (property improvement plan) in February of 2016. It will undergo an additional PIP of $1.5 million.

The hotel is located adjacent to the Fredericksburg Expo & Conference Center which offers 80,000 sq. ft. of exhibit hall space. It is less than 3 miles from the Medicorp Health System and Mary Washington Hospital and 3.8 miles from Mary Washington University. The hotel is also less than a mile from the Central Park Shopping Center which is the largest shopping center on the East Coast with more than 200 retailers.

About The Hilton Garden Inn & Suites Brand

The Hilton Garden Inn is a select service brand of Hilton Worldwide, Inc. (“Hilton Worldwide”). Hilton Garden Inns are considered to be upscale, mid-priced hotels that are designed for both business and leisure travelers. This hotel brand is similar to the Courtyard by Marriott brand, a key competitor. In 2012, Hilton Garden Inn received the distinguished “Highest Guest Satisfaction Among Mid-Scale Hotel Chains with Full Service” award in the J. D. Power and Associates North America Hotel Guest Satisfaction Index Study. This marks the 10th time out of the last eleven years Hilton Garden Inn received the highest ranking in the segment, outranking all other mid-scale, full-service brands. Hilton Garden Inn has grown to over 668 properties as of December 31, 2015. Hilton Garden Inn is also backed by Hilton’s guest loyalty program, Hilton HHonors, and enjoys brand benefits from the wide array of resources the Hilton Family of Hotels has to offer.

About Fredericksburg, VA

Fredericksburg is an independent city in the Commonwealth of Virginia and is located 47 miles south of Washington, D.C. and 53 miles north of Richmond, Virginia. Richmond is part of the Northern Virginia region and is included in the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area.

Fredericksburg Fredericksburg

EXECUTIVE SUMMARY

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Overview – Project Partner and Management Company

About Excel Group – Project Partner

The Excel Group is a skilled real estate investment and asset management firm. With a focus on hospitality, they innovate and execute strategies that are aligned with shifts in economic cycles.

The Excel Group is a privately held firm focused on disciplined, cycle-appropriate hotel real estate acquisitions and asset management. Headquartered in Washington, D. C., the group owns and manages 15 hotels valued from $2 million to $25 million. They specialize in fee simple assets and hotel loans in the Eastern U. S. Their fully integrated platform enables them to achieve risk-adjusted returns that consistently outperform industry averages.

Their Executive Team consists of Shoham Amin, Managing Partner, Daniel Linn, Vice President and Tom Driggers, Corporate Controller. They value performance, relationships, transparency and integrity. Their “bigger and broader mission” is “doing right by their investor partners”.

With progressive strategies, they pace themselves one step ahead of the curve. Because of this, they are able to leverage cyclical growth as well as identify and execute on opportunities presented by plateaus and downturns in the market.

About OTO – Property Management Company

OTO Development was established in 2004 by world-class entrepreneurs with long histories of success in rapid growth organizations. Builders of world-class organizations and a rich history in lodging, the founders created OTO Development with the mission to maximize the value of investments in both people and product. With an emphasis on quality, reliability, service, and value, their goal was to develop a portfolio of great hotels managed by exceptional people.

In 2004, less than a year after it’s founding, OTO Development was awarded “Outstanding Achievement Award” presented by Hampton. In 2005, OTO was recognized by Hilton as “Hampton Developer of the Year”. Over the years, numerous development and operations awards from Hilton, Marriott, and Hyatt have followed. In 2009, OTO was recognized by Hyatt as Developer of the Year and by Marriott with the “Spirit to Preserve” award in 2010 for exemplifying commitment to environmental sustainability in hotel development and operations. Marriott also presented OTO with its highest honor, Partnership Circle Award winner. OTO Development has continued to achieve brand recognition with Developer of the Year awards in 2010 and 2011 from the Hilton Garden Inn brand and Hampton Inn brands respectively.

EXECUTIVE SUMMARY

Fredericksburg Fredericksburg

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Property Information – Property 1

The Hampton Inn & Suites Annapolis

The Hampton Inn & Suites is an upper-midscale hotel situated in close proximity to the US Naval Academy. The physical address of the hotel is 124 Womack Drive, Annapolis, Anne Arundel County, MD. The hotel offers a 575 square foot guest meeting area, the Perfect Mix Lobby, a social gathering area. Guests can enjoy a complimentary breakfast, exercise in the gym, or in the outdoor pool. The hotel also offers 950 sq. ft. of meeting space which can seat 60 people in a theatre setting.

A Property Improvement Plan (PIP) bringing the hotel up to Hilton’s current brand standards will be completed at a cost of $2.9 MM ($20,000 per key). The plan includes the following:

v Guest Rooms & Guest Bathrooms

Upgrades include furniture replacements of desk chair, lamps, vanity mirror, mattresses, box spring, case-goods and upholstery goods. Wall coverings and window treatments to be repainted and/or replaced.

Replace artwork, mirrors, tub surrounds, toilet seats, tub chrome, bathroom doors, towel bars, carpets.

v Lobby, Breakfast Room, Business Center, Meeting Room, Corridors

Replace carpeting, wall coverings, window treatments, lighting in meeting rooms

v Outdoor Pool

Install a saline based generator system; renovations include the replacement of pool furniture and restoration of pool deck.

v Infrastructure

Elevators: replace wall furnishes, flooring and art. Parking Lot: repave and re-stripe Façade/Curtain Wall: All exterior must be modified to meet the current Hilton Forever Young initiative standards.

The guestroom breakdown is 37 Kings, 31 King Suites, 43 Double Queen and 6 ADA Accessible. The hotel features a 50+ seat breakfast area that serves the signature Hampton complimentary hot breakfast as well as a 24-hour pantry market.

Currently, no new hotels are planned or under development in the Annapolis market. This is largely due to Annapolis being a historic town from the 18th century. There are more 18th century buildings in Annapolis than any other city in the nation, which makes new development in the city very difficult due to a strict zoning and planning committee.

PROPERTY AND MARKET INFORMATION Hampton Inn & Suites - Annapolis

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Market Information – Property 1

Annapolis, MD

As previously mentioned, Annapolis is the capital of Maryland and one of the oldest cities in America founded in 1649. The U. S. Census Bureau estimates the city has a population of roughly 48,000 people making it the 25th most populated city in Maryland. The city is situated on the Chesapeake Bay at the mouth of the Severn River. The city has won many awards and accolades. In 2014, The National Trust for Historic Preservation declared the city of Annapolis “A National Treasure”.

As the capital of Maryland, home of the Naval Academy and St. John’s College, Annapolis is considered to be a highly stable market. The presence of the two universities and the local and state government, allows the market to be somewhat insulated from downturns that impact other larger markets throughout the United States.

The city’s economy is built around the United States Naval Academy. Just east of the academy sits the Saint John’s College, a small private liberal arts school founded in 1696. In addition to the universities, Downtown Annapolis brings in many tourists each year who are attracted to the historic feel for the city as well as for the harbor. Annapolis has been nicknamed “America’s Sailing Capital”.

Annapolis presents a very diverse population for such a small town. The two universities in the city allow for Annapolis to have young adults aged between 18 to 23 constantly flowing through the city. In addition, Annapolis has been frequently rated as a top destination in which to retire. According to the Census Bureau, roughly 12% of the population is 65 or older. Lastly, roughly half the population of Annapolis is married. This diverse demographic attracts different types of visitors throughout the year.

Unemployment rates in Anne Arundel County from 2010 through 2015 were lower than unemployment rates for the State of Maryland and the United States. See chart below:

Unemployment Rate Origin 2010 2014 Aug 2015

Anne Arundel County 6.90% 5.20% 4.50%

Maryland 7.70% 5.80% 5.10%

Nationally (U.S.) 9.60% 5.60% 5.10%

Source: US Department of Labor Bureau of Labor Statistics


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Anne Arundel County

Not only is Annapolis the capital of Maryland, it is also the county seat of Anne Arundel which is included in the Baltimore-Columbia-Towson, MD Metropolitan Statistical Area, which is also included in the Washington-Baltimore-Arlington, DC-MD-VA-WV-PA Combined Statistical Area. According to the 2010 census, the population of Anne Arundel County was 537,656 with an estimated population of 564,195 as of 2015. The medium income for a household in the county as of 2014 was $89,031 and median income for a family was $97,557.

The top employer in Anne Arundel County is Fort George G. Meade (including the NSA) with more than 53,000 employees, followed by Northrop Grumman and the Anne Arundel Health System.

Anne Arundel County is adjacent to the City of Baltimore and Baltimore County.

United States Naval Academy St. John’s College


Higher Education

United States Naval Academy located in Annapolis, MD, was founded in 1845 and is the second oldest of the United States service academies. The campus sits on over 300 acres at the confluence of the Severn River and the Chesapeake Bay and is commonly referred to as “The Yard”. Despite the Naval Academy being a college campus, the campus is also a National Historic Landmark, making it the number one attraction in Annapolis.

In 2012, U. S. News and World Report ranked the U S Naval Academy as the number 1 Public Liberal Arts College in the Nation with approximately 4,525 students. Annapolis enrolls roughly 1,200 students, referred to as midshipmen each year in their four year coeducational federal service academy. Upon graduating, each midshipman has to serve a minimum of five years after being commissioned.

St. John’s College is a private liberal arts college with two campuses across America; the original campus is located in Annapolis, MD and the newest campus is located in Santa Fe, NM. The school is known for its distinctive curriculum centered on the Great Books of Western Civilization. St. John’s College has an approximate enrollment of 500 students.

The campus is located in the Historic Annapolis district, just one block away from The Naval Academy. St. John’s student body for the Annapolis campus sits at roughly 500 students.

Graduation Day at the U S Naval Academy

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Healthcare

Ann Arundel Medical Center

Anne Arundel Medical Center (AAMC), a regional health system headquartered in Annapolis, MD., serves an area of more than one million people. Founded in 1902, AAMC includes a not-for-profit hospital, a medical group, imaging services, a substance use treatment center, and other health enterprises. In addition to a 57-acre Annapolis campus, AAMC has outpatient pavilions in Bowie, Kent Island, Pasadena, Odenton and Waugh Chapel.

AAMC is nationally recognized for its joint replacement center, emergency heart attack response and cancer care. A leader in women’s services, AAMC ranks second in Maryland for number of births annually and has a Level III neonatal intensive care unit.

With more than 1,000 medical staff members, 3,900 employees and 750 volunteers, AAMC consistently receives awards for quality, patient satisfaction and innovation.

Tourism

The tourism industry brings in roughly $1.4 billion each year, and accounts for 12,000 jobs. Tourists visit the Historic Downtown Annapolis, Maryland State House, U. S. Naval Academy, St. John’s College, Sandy Point State Park, other parks, museums, boat tours, walking tours, sight-seeing, theaters, art galleries, dining and other attractions. Throughout the year there are more than 40 scheduled festivals, live music events, celebrations, holiday events, cultural events and sporting events held in Annapolis.

Tourists visit Historic Downtown Annapolis not only for the dining and the Naval Academy, but also for the 17th and 18th century architecture which is displayed across Downtown. The old style architecture along with a vibrant downtown area, attracts visitors from all around the world. The street is filled with many unique boutique shops, a wide variety of dining options, historic inns and local pubs. At the end of Main Street sits the City Dock. Many tourists come here to watch the sailboats move along the Chesapeake Bay.

Maryland State House is one of the largest attractions in Downtown Annapolis. It is the oldest state house that has been in use since the late 1700’s. It currently houses the Maryland General Assembly and the offices of the Governor and Lieutenant Governor. The building is considered a National Historic Landmark. Many visitors are attracted to this attraction because it is the only state house to have served as the Nation’s Capital.

Chesapeake Bay runs for 200 miles; the northern bay is the portion that runs through Maryland. The Chesapeake Bay offers a host of recreational opportunities such as boating, fishing, kayaking, canoeing, windsurfing, and of course, sailing. Because the Bay runs along Historic Annapolis, there are many sightseeing cruises available to tour the city. In addition, water taxis are a popular way to see the city of Annapolis.


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http://www.aahs.org/pathways/



Tourism Continued

Quiet Waters Park, situated between the South River and Harness Creek, provides a wide variety of activities. Visitors walk, jog or bike on over 6 miles of paved trails winding through hardwood forests and past grassy fields, play at the multi-level children’s playground, enjoy the vistas of the South River promenade and scenic overlook, or picnic among 340 acres of beautiful parkland. The Park includes formal gardens, art galleries and public restrooms. Pavilions are often rented out for large outdoor parties and cook-outs. The park’s indoor facility, Blue Heron Center, is available for weddings, parties and business meetings.

The Chesapeake Bayhawks are a Major League Lacrosse team based out of Annapolis, Maryland. The Bayhawks are the MLL’s second most winningest team since the League’s inception having won five championships and four division titles. The MLL season runs from the beginning of April to the beginning of August.

Fort George G. Meade

Fort George G. Meade is a U. S. Army installation that includes the Defense Information School, the Defense Media Activity, the United States Army field Bank, and the headquarters of United States Cyber Command, the National Security Agency the Defense Courier Service and Defense Information Systems Agency headquarters. It is named for George G. Meade, a general from the U. S. Civil War, who served as commander of the Army of the Potomac. The fort’s smaller census-designated place (CDP), Fort Meade, includes support facilities such as schools, housing, and the offices of the Military Intelligence Civilian Excepted Career Program (MICECP).

Fort George G. Meade is bordered by the Baltimore – Washington Parkway on the west and is about 5 miles east of Interstate 95. It is located between Washington, DC and Baltimore.

Fort George G. Meade, with the inclusion of the NSA; is the largest employer of Anne Arundel County according to the Maryland Department of Business and Economic Development as of November 2014. Approximately 16,000 military personnel (including 6,000 family members) are housed on the base and 150,000 military retirees live in the area.

TOP AREA EMPLOYERS

Ft. George Meade Army 53,733

Anne Arundel Country Public Schools Education 14,000

State of Maryland Government 12,434

BWI Thurgood Marshall Airport Transportation 9,717

Northrop Grumman Security 7,725

Anne Arundel County Government Government 5,190

Anne Arundel Health System Health Care 4,000

Southwest Airlines Transportation 3,200

Maryland Live Casino Gaming 3,000

University of MD Baltimore Washington Medical Center Health Care 2,900

U S Naval Academy Navy 2,340

Boze Allen Hamilton Consulting 2,100

Source: HREC Investment Advisors’ Broker Package

Economic Impact

The economy of Annapolis is largely dominated by the federal, state and local government largely because it’s a state capital and its proximate location to our nation’s capital, Washington D. C. In recent years, a rapidly growing industry is high tech industrial development. The main industries in this category revolve around naval equipment due to the proximity of the Naval Academy. Annapolis is seeing production in radar electronic equipment and underwater military devises. In addition to the naval equipment, some other items and goods being produced are seafood processing, small boats, concrete products, plastics and beverages.

Major Developments

The one major development in Annapolis, is the Crystal Springs mixed-use development being built

at Forest Drive and Spa Road. The primary use for this development is a retirement community known as “The Village at Crystal Springs – A National Lutheran Community. The retirement community will consist of 362 independent living cottages and apartments, several dining venues, a chapel and a healthcare center with 52 private rooms as well as 126 townhouses.


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Market Information – Property 1 LARGEST EMPOYERS OF ANNE ARUNDEL COUNTY MARYLAND

Industry Employer Number of Employees

Federal Government Ft. George G. Meade 53,733

Manufacturing Northrop Grumman 7,725

Healthcare Anne Arundel Health System 4,000

Transportation & Warehousing Southwest Airlines 3,200

Arts, Entertainment, Recreation Maryland Live! Casino 3,000

Health Care University of Maryland Baltimore Washington Medical Center 2,901

Educational Services U. S. Naval Academy/Naval Support Activity 2,340

Retail Trade Walmart/Sam’s Club 2,106

Professional Services Booz Allen Hamilton 2,100

Educational Services Anne Arundel Community College 1,849

Administrative Services Allegis Group 1,500

Professional Services (IT) CSC 1,229

Retail Trade Giant Food` 1,220

Retail Trade Target 1,050

Professional Services (Software) Lockheed Martin 925

Information – Telecommunications Verizon 844

Professional Services (Software) L-3 Communications 818

Retail Trade Safeway 800

Retail Trade Food Lion 790

Professional Services Rockwell Collins 773

Information – Telecommunications AT&T Services 700

Professional Services (IT) KEYW 683

Professional Services – Wireless Software TeleCommunication Systems 650

Health Care – Medical Services Johns Hopkins Health Care 625

Retail Trade Shoppers Food Warehouse 625

Manufacturing Under Armour 617

Arts, Entertainment, and Recreation Maryland Jockey Club/Laurel Park 616

Professional Services – Networking Services Ciena 600

Federal Government Navy Enterprise Resource Planning (ERP) 600

Federal Government U. S. Coast Guard Yard 598

Retail Trade Home Depot 597 Note: Excludes post offices, state and local governments; includes public higher education institutions. Employee Counts for federal and military facilities exclude contractors to the extend possible; embedded contractors may be included. Source: Anne Arundel Economic Development Corporation and Maryland Department of Commerce, October 2015

PROPERTY AND MARKET INFORMATION Hampton Inn & Suites – Annapolis

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Baltimore Washington International Thurgood Marshall Airport

Transportation

Highway: The Hampton Inn Annapolis sits adjacent to two highways; Route 665 (Aris T. Allen Blvd.) and U. S. Route 301. Route 665 is a state highway that runs from U. S. Route 50 and U. S. Route 301 in Parole, MD east to Bywater Road and Forest Drive in Annapolis, MD. U. S. 301 is a major highway that runs from Delaware to the Governor Harry W. Nice Memorial Bridge into Virginia. It passes through the Eastern Shore, The Baltimore-Washington Metropolitan Area, and Southern Maryland.

Bus: The Annapolis Department of Transportation (“ADOT”) offers eight routes that go around Annapolis. The ADOT services the city by offering transportation to the city’s recreational areas, shopping centers, education, and medical facilities. In addition to the ADOT, there are several Maryland Transit Administration commuter buses that allow for access throughout the DMV area.

Airport: The Baltimore Washington International Thurgood Marshall Airport (“BWI”) is located roughly 24 miles away from Annapolis. The airport hub for AirTrain Airways and a focus city for Southwest Airlines.

Baltimore Washington International Thurgood Marshall Airport

Baltimore Washington International Thurgood Marshall Airport is the largest, by passenger count, of three major airports serving the Baltimore Washington Metropolitan Area. The other two are Ronald Reagan Washington National Airport and Washington Dulles International Airport. It is commonly referred to as BWI or BWI Marshall. Located next to the CDP Linthicum Heights in northern unincorporated Anne Arundel County, Maryland, the airport is about 10 miles south of Baltimore and 32 miles northeast of Washington, D. C. The airport is named after Thurgood Marshall a Baltimore native who was the first African American to serve on the Supreme Court of the United States.

In 2010 BWI was ranked as the best airport of its size (15 – 25 million passengers) in the world by the Airports Council International based on its 2009 Airport Service Quality Survey. The airport won second place for North American airports in the “Best Food and Beverage Program” of the 2010 Richard A. Griesbach Excellence in Airport Concessions Contest, sponsored by the Airports Council International. In 2015, 23,823,532 passengers flew out of BWI with an economic impact of over $5 billion.

BWI Rail Station is located about 1 mile from the airport terminal and a free shuttle bus connects the train station and airport terminals. The station is served by Amtrak Northeast Corridor trains including the partially high-speed Aceta Express and the MARC Penn Line. The Maryland Transit Administration’s Light Rail line has a stop just outside the entrance to the airport’s International Terminal.

The Airport recently announced in 2013 it is launching a three-year, $125 million construction project that will set the table for more international flights from BWI. The project would modernize Concourse D and create a secure connection to international gates on Concourse E at BWI. Construction is expected to be completed by fall 2016. In 2014, BWI generated over $5 billion in business revenue for the state of Maryland.


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Competitive Set


See map above for the name and location of the competitive set of hotels for the Hampton Inn & Suites – Annapolis. The competitive set consist of 6 properties totaling 676 guestrooms.

STR Report May 2016 OCCUPANCY (%) ADR RevPAR

My Prop Comp Set

Index (MPI)

My Prop Comp Set

Index (ARI)

My Prop Comp Set

Index (MPI)

Current Month 87.5 79.2 110.5 $135.33 $127.19 $106.40 $118.43 $100.69 $117.60

Year to Date 76.0 70.4 107.9 $106.82 $106.53 $100.30 $81.14 $75.01 $108.20

Running 3 Month 83.6 78.0 107.2 $115.77 $112.77 $102.70 $96.84 $88.00 110.00

Running 12 Month 79.9 73.8 108.3 $113.87 $113.80 $100.10 $91.02 $83.97 $108.40

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The Hilton Garden Inn – Fredericksburg, VA

The 148-room Hilton Garden Inn is located off Interstate 95, the main north-south highway for the eastern United States. Ideally situated less than an hour north of Richmond VA, and less than an hour south of Washington, D.C., the hotel has excellent highway visibility and ingress/egress from the exit making it a popular choice for guests who want convenient interstate access. The hotel is also located next to the Fredericksburg Expo and Conference Center.

The hotel was built in 2005 on approximately 3.04 acres. Amenities include: a restaurant, market pantry, vending area, fitness center, indoor pool, indoor whirlpool, business center and guest laundry room.

Guest rooms in the Hilton Garden Inn are luxurious and equipped with upscale amenities and modern décor. All rooms include adjustable beds, spacious work desks with Herman Miller Mirra ergonomic chairs, high-definition flat screen televisions, irons and ironing boards, hairdryers and complimentary internet access. Additionally, rooms are equipped with a mini-refrigerator, microwave and coffee/tea maker. The Hilton Garden Inn also offers suites that include comfortable seating area for extra space. The Hilton Garden Inn contains 85 King rooms, 55 Double Double rooms, 4 King Suites, 3 Double Queen Suites and 1 President Suite.

The Hilton Garden Inn serves breakfast, lunch and dinner in the Great American Grill. The full-service restaurant features classic American fare in a casual atmosphere or guests can opt for room service for evening meals. In addition, beverages are served in the cozy Pavilion Lounge, which operates a full bar. The Pavilion Pantry is the hotel’s sundry store and offers snacks, beverages, and ready-to-cook meals, which guests can prepare in their rooms’ microwave ovens. Catering is available for meetings and events.

The hotel offers 2,700 sq. ft. of meeting space consisting of two large rooms; the Madison and the Washington. The Madison room can be partitioned off into two separate rooms to accommodate groups of smaller sizes. The maximum capacity of the Madison room is 150 people, large enough for weddings, rehearsal dinners, parties and other events.

From 2011 to 2016, the hotel underwent renovations/updates totaling $2,216,701. The change of ownership PIP (Property Improvement Plan) will be minimal due to the recent renovation in 2016.

PROPERTY AND MARKET INFORMATION Hilton Garden Inn - Fredericksburg

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Fredericksburg, Virginia

Fredericksburg is an independent city in the Commonwealth of Virginia. As of 2013, the population was approximately 28,132. Fredericksburg is a part of the Metropolitan Statistical Area (MSA) that includes Washington D. C., Arlington and Alexandria, which is the 6th largest MSA in the United States. Fredericksburg is the main city between Richmond, VA and Washington D. C. and acts as both a commuter city and a main destination for travelers who stay outside of either destination.

Fredericksburg is located 47 miles south of Washington, D. C. and 53 miles north of Richmond. It is located near where the Rappahannock River crosses the Fall Line. Fredericksburg is known for its rich history and boyhood home of George Washington. The downtown area of the city contains many elements of Colonial America and civil war era architecture.

Due to the fact that the city is positioned almost centrally between Washington D. C. and Richmond, it is an ideal location for people to live who work in these areas and want to lower their cost of living. Fredericksburg ranked as the 2nd fasted growing city in Virginia in 2014 and has continued to see consistent growth in recent years. The city brings in 1.5 million visitors annually who tour its battlefields, museums, and many other historic sites. The population also has access to the University of Washington, a highly regarded 4-year university offering a variety of different concentrations along with Masters and PHD programs. Fredericksburg is also home to the Central Park Shopping Center, which is the largest shopping center on the East Coast with more than 200 retailers. Another major commercial center in the area is Spotsylvania Towne Centre located in Spotsylvania County adjacent to the city line. Major employers include the University of Mary Washington, Mary Washington Healthcare and GEICO.

Many Fredericksburg-area residents commute to work by car, bus and rail to Washington D. C. and Richmond, as well as the counties of Fairfax, Prince William and Arlington.

Downtown Fredericksburg Fredericksburg Expo & Conference Center

The Hilton Garden Inn is located adjacent to the Fredericksburg Expo & Conference Center. The Expo and Conference Center offers 80,000 square feet of exhibit hall space that can be reserved for a variety of different events. Some of the largest events that take place at the center each year include the Fredericksburg Home Show, Fredericksburg Gun Show, and the American Veterans Ball. These events bring in thousands of visitors every year, which provides the hospitality sector with an abundance of business, especially for hotels within walking distance such as the Hilton Garden Inn.

Inside the Fredericksburg Expo Center Fredericksburg Expo Center

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Higher Education

Higher education institutions are boons to hotel demand and frequently create sold-out weekends during events such as graduation, parent’s weekend, alumnae celebrations and move-in and move-out weekends.

The University of Mary Washington is the 16th ranked university in the southern region of the U. S. and boasts excellent undergraduate and graduate programs. There is a total enrollment in excess of 5,000 students, making it a significant presence within the city. The most popular programs include Business Management, Education, English, Psychology, Biology and History. The wide variety of degrees obtained assist in fueling the future of the industries present in Fredericksburg. The student base represents more than 40 states and many foreign countries, which presents opportunity for hotels.

Germanna Community College was established in 1970 and is a community college and a member of the Virginia Community College System with campuses located in Locust Grove, Fredericksburg, Stafford and Culpeper. It is a 2-year public institution of higher education and is accredited by the Southern Association of Colleges and Schools.

The Fredericksburg Area Campus is located on seventy (70) acres donated by the John T. Hazel family in Spotsylvania County near the intersection of Interstate 95 and Routes 1 and 17 South.

University of Mary Washington Eagle Landing Residence Hall at the University of Mary Washington

Germanna Community College Germanna Community College

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Healthcare

Mary Washington Hospital is located in the City of Fredericksburg and is a 437-bed full service regional medical center offering advanced services. It is a Level II Trauma Center and is one of only 15 in Virginia to achieve Magnet Status for its exceptional nursing care. There are more than 400 physicians and health professionals representing 45 medical specialties.

Its Centers of Excellence offer specialized advanced care in five key specialty areas:

Ø Virginia Heart and Vascular Institute Ø Comprehensive Oncology Services Ø The Human Motion Institute Ø The Neuroscience Center Ø The Women’s Health Institute

Mary Washington Hospital has an impressive list of advanced certifications and has teamed up with internationally renowned Children’s National Medical Center in Washington D. C. to provide world class pediatric care to infants, children and adolescents. MWH has also teamed with the University of Virginia Health System to provide open heart surgery and stereotactic radiosurgery (SRS). MWH is one of only 30 cancer centers in the world to offer this sophisticated level of cancer treatment.

MWH has received numerous awards and designations for its care, including:

Ø Gold Plus Performance Achievement Award to the MWH Primary Stroke Center from the American Hospital Association Ø Virginia Hospital and Healthcare Association’s 2011 Community Benefit Award to the Virginia Heart & Vascular Institute’s

Heart Failure Clinic

Numerous additional services are available through the hospital’s parent organization Mary Washington Healthcare.

Tourism and Sports

Fredericksburg has a wide variety of tourist attractions and sports teams which make it a popular regional tourist destination. The city itself sees thousands of visitors every year whether it be for specific events or simply the culture and history that is always present. One of the most popular tourist attractions is George Washington’s boyhood home, which can be viewed with or without a tour guide. The home has been kept in its original state and tells the story of one of the most influential people in the history of this nation. Fredericksburg is well known for its pristine golf courses and wineries. It is also the home to the largest shopping center on the East Coast with over 200 retailers. This top shopping destination attracts many people from near and far. The Central Park Shopping Center is also home to many different restaurants, making it a true all-round tourist destination.

Although the city may not be host to any professional sports teams, the college sports teams of Mary Washington University bring in a lot of attention. The school fields 21 different sports teams and competes within the NCAA’s Division III Capital Athletics Conference. The university has received the CAC All-Sports Awards 12 times, which is given to the best overall athletics program. These teams help attract in hotel room demand from visiting teams, family and fans.

Mary Washington Hospital – Heart & Vascular Mary Washington Hospital Emergency Center

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Nearby Airports

Fredericksburg is located about 50 miles from both Washington Reagan National Airport and Richmond International Airport. Washington Dulles and Baltimore-Washington International Airports also provide excellent national and international travel choices for city residents.

The Stafford Regional Airport, located just eight miles north of the city, serves business air traffic. It includes a 5,000-foot ILS runway with full parallel taxiways, Jet-A and Av-Gas fuel storage facilities and 25 acres of paved aircraft parking aprons.

Shannon Airport, located just 2 miles south of Fredericksburg, is utilized for small business and recreational air traffic. It has a 3,000-foot runway.


Logistics, Transportation and Trade

Fredericksburg is in close proximity to both Washington D. C. and Richmond. These cities are reachable by road using the I-95 corridor that runs directly through Fredericksburg. Both cities are a little less than an hour’s drive away. This highway connects the city to other major American cities such as Baltimore, Philadelphia, New York and Boston. Beyond the convenient road connection Fredericksburg is also directly served by Amtrak, which provides high speed rail travel to the cities listed above and many others. Low cost alternatives, such as Greyhound bus service are also available. Regional airports within 10 minutes provide some airfare connections, but the Richmond and Washington D. C. airports are the main providers. All of these travel options make Fredericksburg very accessible and allow for tourism to thrive and make it a more convenient location to live.

TOP AREA EMPLOYERS IN THE Fredericksburg MSA

Company Employees Sector Headquarters

Mary Washington Hospital 1000+ Healthcare Fredericksburg, VA

University of Mary Washington 1000+ Higher Education Fredericksburg, VA

Fredericksburg City Public Schools 500-999 Public Education Fredericksburg, VA

City of Fredericksburg 500-999 Government Fredericksburg, VA

Medicorp Health system 500-999 Healthcare Management Fredericksburg, VA

Walmart 250-499 Retail Bentonville, AR

Wegmans 250-499 Retail Rochester, NY

Snowden Services 250-499 Healthcare Fredericksburg, VA

Free Lance Star Publishing, Inc. 250-499 Media/Publishing Fredericksburg, VA

Rappahannock Area Community Services Board 100-249 Human Resources Fredericksburg, VA

Sources: City of Fredericksburg Economic Development

Employment

Given the city’s rich history and culture, several companies have chosen to do business in Fredericksburg. The city is home to employers from all different industries, ranging from retail to healthcare. With its central location between Washington D. C. and Richmond, it is a great strategic location for companies that want to avoid high rents, while still being in close proximity to those cities. Fredericksburg’s unemployment rate is 4.5% which is significantly lower than the national average showing that there is a competent and stable workforce in place.

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Competitive Set


STR Report May 2016 OCCUPANCY (%) ADR RevPAR

My Prop Comp Set

Index (MPI)

My Prop Comp Set

Index (ARI)

My Prop Comp Set

Index (MPI)

Current Month 82.1 70.3 116.7 $112.42 $94.28 $119.20 $92.28 $66.31 $139.20

Year to Date 77.2 66.9 115.3 $101.46 $88.12 $115.10 $78.29 $58.95 $132.80

Running 3 Month 84.6 75.1 112.6 $106.20 $90.90 $116.80 $89.86 $68.28 $131.60

Running 12 Month 76.5 66.5 115.1 $100.92 $88.62 $113.90 $77.19 $58.91 $131.00

See map above for the name and location of the competitive set of hotels for the Hilton Garden Inn – Fredericksburg.

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Project Partner

ABOUT THE EXCEL GROUP

CULTURE & VALUES

Everything they do is aligned with the bigger and broader mission of doing right by their investor partners. First and foremost, this includes calibration of their values and their goals. They view the alignment of objectives between their investors, management company partners, employees, brands, capital partners, and themselves as the only way to be successful.

VALUES

PERFORMANCE-ORIENTED: nimble and dynamic by design, their goal is to deliver above industry-average investment returns.

RELATIONSHIPS: they believe that trust, respect and a desire to achieve mutual success are the foundations of strong relationships. Long term relationships lead to long term success.

TRANSPARENCY: complete transparency is the cornerstone of their firm. They insist on transparency across all stakeholders, so they can deliver it to their investors and partners.

INTEGRITY: they hold themselves to the highest integrity at all times; and in turn expect a high level of integrity from each partner and stakeholder.

SHARED OBJECTIVES: they view the alignment between themselves, their investors, partners, the brands, their management company partners, contractors, third party service providers, and other stakeholders in the investment as the only way to be successful.

Excel Group is a Washington, D.C.-based private equity firm that owns and asset manages 11 hotels in high-growth markets across the Eastern U.S. Focused on disciplined, cycle-appropriate hotel real estate acquisitions and asset management, the firm specializes in value-add fee simple assets, and hotel loans. The team’s in-house expertise includes investment sourcing, structured finance, asset management, capital planning, project management and complex financial and legal restructuring. They leverage this fully-integrated platform to identify and execute innovative value creation opportunities and consistently deliver above industry-average returns

They differentiate themselves by timing acquisitions correctly, achieving an attractive basis for investment, implementing multiple creative real estate strategies to drive value, achieving an aligned vision with all stakeholders, and by maintaining their agility so that they can move quickly to execute on their business plans and deliver superior returns.

And, they pace themselves one step ahead of the curve – with progressive strategies that evolve with each phase of the economic cycle. Because of this, they are able to leverage cyclical growth as well as identify and execute on opportunities presented by plateaus and downturns in the market.

PROJECT TEAM

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Project Partner Continued

CORE COMPETENCIES

DEAL SOURCING: Ability to source off-market transactions and close at a significant discount to replacement cost and at attractive cap rates on in-place cash flow.

ASSET MANAGEMENT: Proven track record and ability to pursue aggressive asset management to significantly enhance cash flow and asset value.

BRANDING: Current portfolio comprised of well-branded assets in strong markets with limited new supply.

BRAND RELATIONSHIPS: Established and growing relationship with major brands – approved franchisee and ownership group with Hilton, Intercontinental Hotels Group, and Choice Hotels.

ECONOMIES OF SCALE: Renovations across similar and “family of brands” provides purchasing power and economies of scale that benefit each individual investment.

EXPERIENCED TEAM: Combined hospitality and real estate sector experience of over 40 years in key functional areas of acquisitions, dispositions, litigation, and asset management, brand management, construction and project management.

OPERATIONAL FLEXIBILITY: Assets unencumbered by long-term management agreements, thereby providing enhanced operational flexibility and creating significant upside value potential at exit.

RETURNS DRIVEN: Portfolio positioned for significant value enhancement and meeting or exceeding investor return thresholds.

See more at www.excelgp.com

PROJECT TEAM

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Project Partner Continued

JEFF BARTHOLOMEW, Vice President - Development

Jeff leads the firm’s development and project management functions at Excel Group. He is a versatile development, asset management and construction professional with experience in the hospitality, multi-family, residential, and retail real estate sectors. Proven success in driving complex projects to completion while ensuring high quality outcomes, cost control and guest/resident satisfaction. Prior to joining Excel Group, he worked with Lendlease, one of the nation’s largest commercial real estate development and construction companies as a Development Manager overseeing the $2.0 Billion PAL program consisting of the installation of over 14,000 rooms over 41 US Army bases. His responsibilities included overseeing the new construction of various hotels to major hotel rehabilitation projects. Prior to Lendlease, Jeff worked for various firms including Price Waterhouse Coopers, IBM consulting and Zapolski + Rudd in both the development and finance roles. He is an MBA graduate from the University of North Carolina and a BA in Economics graduate from Cornell University.

DANIEL LIN, Vice President

Daniel is an accomplished hotel asset manager with well rounded experience in value enhancement, market positioning, valuation, and due diligence. Prior to joining Excel Group Mr. Lin asset managed a $500M portfolio with HotelAVE and a $300M portfolio at Host Hotels & Resorts. He developed strategic plans – underwriting ROI/repositioning projects, spearheading a focused approach to capital planning, and working closely with management teams – to achieve targeted benchmark goals in revenue, cost and margins.

Through his experience at Hotel AVE, Host Hotels and HVS International, Mr. Lin has developed a broad background in multiple U.S. markets as well as Canada and Europe, covering various brands and property types – urban/suburban/resort; select service/upper upscale/luxury. He is a graduate of Cornell University's School of Hotel Administration.

EXECUTIVE TEAM

SHOHAM AMIN, Managing Partner

Since launching Excel, Mr. Amin has overseen the acquisition of more than $200 Million of hotel and hotel debt instruments, and has completed numerous multi-million dollar hotel renovation projects. His expertise includes extensive litigation strategy, hospitality asset management, and acquisitions leading to the repositioning of numerous hotel assets. He is well versed in complex real estate litigation and is experienced in initiating, managing and successfully completing foreclosure and bankruptcy actions. Additionally, Shoham leads the charge in overseeing an institutional quality portfolio and asset management platform, developing brand and management company relationships, and overseeing the firm’s capital planning and execution, due diligence and underwriting functions.

Prior to launching Excel, he spent nearly two years partnering with Delshah Capital, a boutique distressed real estate private equity firm based in Manhattan, leading their team as Vice President. While at Delshah Capital, he helped the firm source and acquire in excess of $150 million of distressed loans and assets from various lenders and helped lead the litigation strategy to create an optimal resolution which included restructuring, discounted payoffs, and completion of foreclosure/bankruptcy to obtain fee simple ownership. His prior ventures include the acquisition, ground up construction and gut renovation of residential and hotel assets in the Northeast. Prior to starting his own firm, he worked with the Acquisition and Development group at Sunrise Senior Living. At Sunrise Senior Living, he worked on nearly $2.5 billion of transactions that included the underwriting of one of the largest publicly traded Senior Living REITs and completed the acquisition, refinance, recapitalization and development of over $1 billion of transactions.

Shoham is a graduate with distinction from New York University, having obtained a Masters in Real Estate Finance. His prior education and degrees come from George Washington University of Virginia, and City University of London.

PROJECT TEAM

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Project Partner Continued BRAND RELATIONSHIPS

HILTON WORLDWIDE Hilton Worldwide is a leading global hospitality company, spanning the lodging sector from luxury and full-service hotels and resorts to extended-stay suites and focused-service hotels. For 95 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The company’s portfolio of twelve world-class global brands is comprised of approximately 4,362 managed, franchised, owned and leased hotels and timeshare properties, with nearly 720,701 rooms in 94 countries and territories, including Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, Canopy by Hilton, Curio – A Collection by Hilton, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The company also manages an award-winning customer loyalty program, Hilton HHonors®. Learn more at www.hiltonworldwide.com.

CHOICE HOTELS Choice Hotels International (NYSE: CHH) is one of the largest and most successful lodging companies in the world. Choice currently franchises more than 6,300 hotels, representing more than 500,000 rooms, in more than 30 countries and territories. Ranging from limited service to full service hotels in the economy, mid-scale and upscale segments, Choice-branded properties provide business and leisure travelers with a range of high-quality, high-value lodging options throughout the United States and internationally. For more information on Choice Hotels, visit the company’s Website at www.choicehotels.com.

IHG (INTERCONTINENTAL HOTELS GROUP) IHG (Intercontinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is an international hotel company whose goal is to create Great Hotels Guests Love. With nine brands, more than 687,000 rooms in 4,700 hotels across 100 countries and territories, IHG offers individual consumers and business customers a broad array of hospitality products and services as well as various accommodation alternatives and price ranges through a premier portfolio of world-renowned brands including: InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites®, EVEN™ Hotels and HUALUXE™ Hotels & Resorts. Learn more about Intercontinental Hotels Group.

BEST WESTERN INTERNATIONAL Best Western International consists of over 4,000 independently owned hotels in 100 countries and territories worldwide. The membership-based brand focuses on offering customers value, quality, and superior customer service while maintaining local charm and appeal for each of its hotels. Learn more about Best Western International.

HYATT HOTELS CORPORATION Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company’s subsidiaries develop, own, operate, manage, franchise, license or provide services to hotels, resorts, branded residences and vacation ownership properties, including under the Hyatt(r), Park Hyatt(r), Andaz(r), Grand Hyatt(r), Hyatt Centric(tm), Hyatt Regency(r), Hyatt Place(r), Hyatt House(r), Hyatt Zilara(tm), Hyatt Ziva(tm), Hyatt Residences(r) and Hyatt Residence Club(r) brand names and have locations on six continents. As of March 31, 2015, the Company’s worldwide portfolio consisted of 599 properties in 50 countries. For more information, please visit www.hyatt.com.

PROJECT TEAM

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Hotel Management Company

OTO Development - Hotel Development and Hospitality Management

OTO Development LLC (www.otodevelopment.com/company.com) was established with a business plan to manage great select-service hotels with the best brands in the top markets of the United States. Founders of OTO Development were George Dean Johnson, Jr. - , H. Wayne Huizenga, Corry W. Oakes III and Todd R. Turner; all of which were formerly part of the leadership at Extended Stay America. They all left Extended Stay America to form OTO Development LLC when Extended Stay America was sold to Blackstone Group for over $3 billion in May of 2004. Currently, Corry Oakes serves as CEO & Founder and Todd Turner serves as Vice President of Real Estate & Founder.

OTO Development’s mission is to maximize the value of investments in both people and product. With an emphasis on quality, reliability, service, and value, their goal is to develop a portfolio of great hotels managed by exceptional people.

OTO Development has been honored by Hilton Worldwide, Marriott International and Global Hyatt with numerous awards and recognitions. By the end of 2004, less than a year after it’s founding, OTO Development was awarded its first development award, the “Outstanding Achievement Award” presented by Hampton. During the award ceremony, Hilton leadership remarked that they could not remember another company in their history that had started with such rapid growth. Another prestigious award came only one year later in 2005 when OTO Development was recognized by Hilton as “Hampton Developer of the Year”. Over the years, numerous development and operations awards from Hilton, Marriott, and Hyatt have followed.

In 2009, Hyatt recognized OTO Development as Developer of the Year. OTO was recognized by Marriott with the “Spirit to Preserve” award in 2010 for exemplifying commitment to environmental sustainability in hotel development and operations, the first award of its kind. OTO Development was also named a “Partnership Circle Award” winner, Marriott’s highest honor. During the presentation, Marriott executives noted the award had never been given to such a young company, quite an accomplishment for an organization with only a few years in existence. OTO Development has continued to achieve brand recognition with Developer of the Year awards in 2010 and 2011 from the Hilton Garden Inn brand and Hampton Inn brands respectively.

OTO Development currently manages over 40 upscale, mid-scale, and extended stay properties located in key markets throughout the United States. An award-winning hotel management company, OTO delivers excellence through a multi-faceted strategic management approach. With an aggressive top line focus, they have a strong track record of consistently providing industry-leading returns for their investors. The strength of their leadership at all layers is due to the cultivation of a supportive and entrepreneurial environment for their team members. The end result of their efforts is a high-quality product delivered within brand and property requirements that culminates in exceptional experiences for their customers.

Hyatt Place Downtown Chicago, Illinois – Managed by OTO Development

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Hotel Management Company Continued In addition to owned assets, OTO’s portfolio includes hotels management for two institutional companies, a NYSE-listed REIT and one of the largest private equity companies in the world. They manage for others with an owner’s perspective because they are owners. Each market and hotel is unique. Successful performance requires a strategic plan, an action-oriented approach, a focus on continuous improvement and a high degree of accountability to results to ensure they maximize the performance of their assets and build value for owners.

Hotels Managed by OTO Development

Fairfield Inn & Suites – New York City – Madison Sq. Garden – Penn State, Manhattan, NY SpringHill Suites Irving – John Wayne Airport, Irving, CA

Residence Inn Herndon – Dulles Airport, Herndon, VA Hyatt Place Los Angeles International Airport, El Segundo, CA

Sheraton Herndon Dulles Airport, Herndon, VA Hyatt Place Garden City, Garden City, NJ

Residence Inn & Suites Birmingham-Hoover, Hoover, AL Residence Inn & Suites – San Diego, San Marcus, CA

PROJECT TEAM

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About Gentry Mills Capital Gentry Mills Capital, LLC is a real estate investment firm whose purpose is to seek out, package and provide quality commercial real estate investment opportunities to investors represented by investment professionals in the financial services industry.

Gentry Mills Capital, LLC, previously known as Gentry Mills Consulting, LLC, was originally formed in 1997. Gentry Mills Consulting, LLC was formed and operated as a consulting entity and as the owner and manager of commercial real estate investments.

In June of 2006 the name of the firm was changed to Gentry Mills Capital, LLC. The purpose of the name change was to broaden the original intent of the firm to allow it to become the sponsor of a series of securities offerings involved in the ownership and or financing of commercial real estate. Gentry Mills Capital offerings will be sold through FINRA registered Broker Dealer firms.

Team Members

Gentry Mills Capital is very proud of the talented team of real estate professionals it has been able to assemble. GMC team members have total combined team experience in the commercial real estate and securities industry that extends beyond 150 years.

William P. “Billy” Glass, Managing Partner

In 1990, Mr. Glass began working as an external wholesaler and consultant, raising equity and debt capital for business enterprises and commercial real estate developments located throughout the United States. Between 1990 and 2006 Mr. Glass raised in excess of $250,000,000 through the broker dealer community via Regulation D, Private Placement Offerings.

In 2006, Gentry Mills Consulting, LLC, originally formed in 1997, was renamed Gentry Mills Capital, LLC. Gentry Mills Capital is a real estate investment firm whose purpose is to seek out, package and provide quality commercial real estate investment opportunities to investors represented by investment professionals in the financial services industry. From 2006 to October of 2015, Mr. Glass has raised in excess of $100,000,000 for Gentry Mills Capital investment programs.

Mr. Glass formerly served on the Board of Directors for Special Olympics of Texas currently serves on the Board of Directors for Behind the Walls Prison Ministries. Mr. Glass attended Baylor University and is a licensed Real Estate Broker. Mr. Glass resides in Southlake, Texas with his wife Laura. They have three grown children and 3 grandchildren.

Mr. Glass has been involved in the Commercial Real Estate business for more than 35 years. Mr. Glass began his career with Hank Dickerson & Company, a Dallas based commercial real estate brokerage and development company, where he received extensive training in all facets of the commercial real estate industry and quickly became one of the firm’s sales leaders. It was while working at Hank Dickerson & Company that Mr. Glass was first exposed to the utilization and structure of Real Estate Partnerships.

In the fall of 1983, Mr. Glass started his own commercial real estate company, raising capital for income-producing, commercial real estate projects as well as land development. He completed 60 real estate related joint ventures and raised in excess of $30,000,000 before selling the firm in 1989 to a publicly traded company based in Atlanta, Georgia.

Robert S. “Scott” Palmer, Partner

Mr. Palmer began his career as a real estate salesman for Hank Dickerson and Company for eight years then spent another ten years as Mr. Dickerson’s partner in an entity focusing on opportunistic real estate investments until Mr. Dickerson’s death in 1996. Mr. Palmer then spent the next nine years at Macfarlan Real Estate Services specializing in opportunistic acquisitions while also serving on Macfarlan’s Investment Committee. Mr. Palmer left Macfarlan in July 2006 to form Gentry Mills Capital with Mr. Glass, where his focus is creating value through the innovative structure of real estate acquisitions and dispositions. Mr. Palmer attended the University of Texas and is a Dallas native where he lives with his wife and two daughters.

SPONSOR

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Rebecca L. “Becky” Welch, Sr. Vice President

Ms. Welch entered the commercial real estate industry in 1983 with the Henry S. Miller Company. In 1993, she began her career in the securities industry as the Investor Relations Manager at Sovereign Credit Corporation. Ms. Welch managed the “back-office” procedures of the Investor Relations Department (investor database, correspondence, reporting, distributions, customer service and sales assistance.)

In 2003 Ms. Welch joined Macfarlan Real Estate Services ( now Macfarlan Capital Group) as Investor Relations Sales Manager where she managed the “back office” procedures of the Investor Relations Department and provided sales assistance to financial advisors and customer service to their clients. Ms. Welch also coordinated and managed all 1031 exchange closings.

In 2006 Ms. Welch left MacFarlan Real Estate Services when Mr. William Glass formed Gentry Mills Capital, LLC. Ms. Welch joined Gentry Mills Capital as Sr. Vice President and has 33 years of experience in the commercial real estate industry and 23 years experience working with Red D offerings (Alternative Investments) in the securities industry. Ms. Welch is part of the Sales Team marketing Gentry Mills Capital investment programs to registered representative in the Broker Dealer community. In addition to sales, Ms. Welch also manages the due diligence process for each investment offering as well as the development of marketing material to communicate effectively with advisors within the broker dealer community when bringing new investment products to market. Ms. Welch attended Cedar Valley College, has 1 grown daughter and resides in Waxahachie, Texas.

Terry C. “Chris” Reeves, Investor Relations Associate

Mr. Reeves joined Gentry Mills Capital as the Investor Relations Associate in July of 2012. Mr. Reeves spent 13 years working for Ben E. Keith Company, the 9th largest broad line foodservice distributor and 4th largest beverage distributor in the nation. During his tenure with Ben E. Keith, Mr. Reeves served as a National Salesman and Special Events Manager where building relationships and customer service were of the upmost importance. Mr. Reeves manages all “back office” procedures at Gentry Mills Capital. He receives all subscription documents from investors investing in GMC sponsored programs and reviews for accuracy and suitability. Additionally, Mr. Reeves maintains the investor database, sends out investor correspondence, reports, distributions and serves as the transfer agent. Most importantly, Mr. Reeves takes great pride in providing superior client service support to advisors and their clients. Mr. Reeves attended Tarleton State University and resides in Mesquite, Texas.

Joshua P. “Josh” Glass, Sales Associate

Mr. Glass joined Gentry Mills Capital in March of 2015 as a Sales Associate after working five years with the nationally-known, non-profit organization, Behind the Walls Prison Ministries, where he assisted the founder in raising funds from various high net worth individuals and corporate sponsors. Mr. Glass is part of the Sales Team marketing Gentry Mills Capital investment programs to registered representatives in the Broker Dealer community to raise debt and equity capital.

Mr. Glass is a graduate of Baylor University and resides in Keller, Texas with his wife and 2 children.

SPONSOR

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Residence Inn By Marriott Austin, Texas

Bay Vista Apartments – Phase I Corpus Christi, Texas

Bay Vista Point Apartments – Phase II Corpus Christi, Texas

Hampton Inn & Suites Atlanta, Georgia

GMC Property Portfolio

The Sam Houston Hotel formerly the Alden Hotel

Downtown Houston, Texas

Plantation Apartments I Mission/McAllen, Texas

Plantation Apartments II Mission/McAllen, Texas

Fairfield Inn & Suites Cambridge, Ohio

GEN 4 Prototype Rendering Aloft Hotel Broomfield Denver

Broomfield, Colorado

Embassy Suites Hotel, located in Downtown Houston, Texas Hilton Garden Inn located in the Energy Corridor, Houston, Texas

SPONSOR

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Element Hotel Palmdale, California

GMC Property Portfolio

Hilton Garden Inn O’Fallon, Illinois

Courtyard by Marriott Ronkonkoma, Long Island, New York

Hampton Inn & Suites Orlando, Florida

Hilton Garden Inn Overland Park, Kansas

Hampton Inn & Suites Lake Mary, Florida

Aloft by Westin Hotel Linthicum Heights, Maryland

Baltimore Washington International Airport

Hilton Garden Inn Fredericksburg, Virginia

Hampton Inn & Suites Annapolis, Maryland

SPONSOR

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Contact Information

The Overlook at Las Colinas

251 N. O’Connor Ridge Blvd, Suite 100 • Irving, Texas 75038

Main: (972) 759-8725 • Fax: (972) 759-8490

gentrymillscapital.com

SPONSOR

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Sources

SOURCES

https://en.wikipedia.org/wiki/Annapolis,_Maryland Investment Offering Memorandum provided by HREC Investment Advisors Sources noted in Investment Offering Memorandum: U. S. Department of Labor Bureau of Labor Statistics Investment Offering provided by Excel Group Monthly STAR Report: Hampton Inn Suites Annapolis – STR #34275 created June 17, 2016 for the month of May https://en.wikipedia.org/wiki/Fredericksburg,_Virginia Offering Memorandum provided by Hunter Hotel Advisors Sources noted in Investment Offering Memorandum: City of Fredericksburg Economic Development Financing Offering provided by Excel Group Monthly STAR Report: Hilton Garden Inn Fredericksburg – STR #53849 created June 17, 2016 for the month of May

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https://en.wikipedia.org/wiki/Annapolis,_Maryland

https://en.wikipedia.org/wiki/Fredericksburg,_Virginia

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