Excellent Location in Houston's Chinatown

• The property benefits from very good visibility off the frontage road along the Sam Houston Tollway, near numerous dining, retail, and entertainment options in the Chinatown area, which is a positive attribute for both business and transient guests.

• The Comfort Suites is the closest midscale hotel to Chinatown and has been able to capitalize on the strong leisure visitation to the area.

• Earlier this year, a local developer broke ground on the Asian City Center—a new, 4.5-acre mixed-use commercial development along Beltway 8 and Bellaire Boulevard about one mile from the property. The development will include luxury high-rise residential units, retail outlets, and office space.

Well-Maintained, High-Quality Physical Product

• The Hotel opened in 2013, and ownership has maintained the physical asset well; it is currently ranked 7 out of 468 hotels in the Houston area on TripAdvisor.

Strong Historical Top-Line Performance and Market Rebound

• Rooms revenue reached $1,600,000 (rounded) in 2021, reflecting a 45.0% increase compared to 2019.

• Despite the slow start that some other Houston hotels are facing this year, the Hotel achieved a 27.4% increase in rooms revenue through the first two months of 2022, compared to the same period last year.

• The hotel dominates the competitive set, as evidenced by the 147.6% RevPAR penetration index as of February 2022 for the trailing-twelve-month period.

Upside Potential for a Robust Owner/Operator

• Per the year-end 2021 profit-and-loss (P&L) statement, the Hotel achieved a house profit (GOP) of 36.4%, with an NOI flow-through of 24.9%, including 4.0% FF&E reserves.We see multiple opportunities for improvement that could lead to a collective decrease in rooms expense, specifically in the payroll department.

• The hotel is operated with a full staff, and there is no onsite sales presence, making this an ideal investment for an aggressive owner/operator.