Historically Strong-Performing Asset with Operational Upside Potential

• The hotel's three-year-average rooms revenue from 2021 through 2023 equated to $1,922,386, with its peak performance recorded in calendar 2022 at $2,802,048.

• The hotel asset is priced at a 3.82x rooms revenue multiplier (RRM) based on the June 2024 trailing-twelve-month (TTM) revenue, which amounted to $1,100,082.47.

Onsite Owner's Apartment

• Located directly above the lobby is a 2-bedroom, 2.5-bathroom owner's apartment.

Proven Resilience Amid Challenges Faced by Comp Set

• Despite the New Orleans economy experiencing a slower-than-expected start to the year, the May 2024 STR Report indicates that the hotel’s RevPAR declined only 0.3% in the year-to-date (YTD) period, compared to the same YTD period last year, while the competitive set faced a significant YTD decline of 19.5%, compared to the YTD 2023 figures.

• As of May 2024, the comp set realized a 11.1% decrease in YTD occupancy, whereas the hotel achieved a 5.0% increase in occupancy, with property management having reduced the hotel’s average daily rate (ADR) 4.4% less than the comp set as a whole.

Excellent Location and Visibility off Interstate 10 near Strong Leisure & Corporate Demand Generators

• The property is conveniently located along the Interstate 10 (I-10) Service Road, providing easy access to the interstate; it is located within ten miles of New Orleans’ most popular tourist attractions, such as the French Quarter District, Jackson Square, St. Louis Cathedral, and Bourbon Street, and just a 15-minute drive to/from Downtown New Orleans.

• The property is situated approximately 15 miles from the Port of New Orleans, which is undergoing a $1.8-billion expansion project that is expected to create over 17,000 jobs and bolster the regional economy.

Developments in the City of New Orleans Fueling Revenue Growth Potential

• New Orleans is allocating approximately $50 million to complete over 500 infrastructure projects ahead of Super Bowl LIX, providing a steady influx of demand from construction workers through February 2025.

• Located within four miles of the property, Bayou Phoenix is moving forward with its nearly $900-million plan to redevelop the abandoned Six Flags property in New Orleans East into sports fields, waterparks, restaurants, and shops. Completion is expected in either 2026 or 2027, depending on when the project breaks ground.

• In addition to its many tourist attractions and ongoing demand for labor, New Orleans has a promising five-year outlook, as it is continuously able to attract new and diverse events to support the local economy and hospitality industry.

Discount Pricing Compared to Replacement Cost with Minimal Change-of-Ownership PIP Expected

• The hotel asset is priced at $32,307 per key, significantly below the cost of constructing a similar asset with comparable amenities.

• The property was fully renovated in 2020, offering an incoming investor the opportunity to enhance its bottom line with minimal upfront capital required for brand-mandated PIP renovations.