Operational Upside Potential for a Robust Operator

• During its initial ramp-up period after opening, ownership experienced issues with multiple management companies, employee retention, and sales efforts. Collectively, these matters contributed to the decline in revenues and cash flow.

• Prior to 2021, there was not an active sales presence, and the hotel did not have a strong base of corporate business, instead relying strictly on the IHG brand presence.

Strong Historical Top-Line Performance and Market Rebound

• Not including its 2020 performance, the hotel has averaged top-line rooms revenue of $2,200,000 (rounded) since its opening.

• Rooms revenue reached $2,400,000 (rounded) in 2021, reflecting the hotel’s best year, and this positive trend is anticipated to continue in 2022.

Well-Maintained, High-Quality Physical Product with Minimal PIP Expected

• The hotel opened in 2017, and ownership has maintained the physical asset well; thus, a minimal change-of-ownership PIP is expected.

• Upon approval from the franchise, an investor can expect a new, 15-year license agreement with InterContinental Hotels Group (IHG). This presents a new owner with the opportunity to operate a Hotel with one of IHG’s most prominent limited-service products.

Excellent Location Among Attractive Guest Amenities and Demand Generators

• The property is the only hotel within the Houston Premium Outlets outdoor retail development. The numerous dining, retail, and entertainment options are positive attributes for both business and transient guests.

• Corporate demand generators in the area include Daikin North America, HCA Houston Healthcare North Cypress Hospital, Weiser Air Park, McKesson Medical-Surgical, Wyman-Gordon, RTIC Coolers, Enerflex Energy Systems, Siemens Energy, Gyrodata, Northwest Lake Business Park, and Aberdeen Business Park.

• The property also benefits from its location near multiple wedding venues in the area, including Lindsay Lakes, Windveil Manor, Bridal Oaks Weddings & Events, and Enchanted Cypress, among others.