Owned by a REIT, Significant Upside for Strong Operator to Reduce Expenses

• The asset has been institutionally owned by a REIT since January 2020. The hotel is operated by a management company, with a full staff in place.

• Based on the trailing-twelve-month (TTM) August 2025 financial statement, the hotel’s gross operating profit (GOP) was 41.8%, with a net operating income (NOI) flow-through of about $908,000 (rounded).

• Based on a selection of similar vintage Fairfield Inn & Suites by Marriott operating statements, the hotel should achieve a stabilized GOP margin between 44.0% and 50.0%.

• We see multiple opportunities for improvement that could lead to a collective decrease in rooms expense, specifically in the payroll department.

Consistently Strong Rooms Revenue and Market Leading Hotel

• Since 2022, the hotel has consistently generated strong rooms revenue, averaging over $3,157,000 (rounded).

• The hotel’s rooms revenue for the TTM period through August 2025 equated to $3,172,000 (rounded).

• RevPAR and demand for the running-three-month period through August 2025 increased by 2.9% and 2.8%, respectively, compared to the same period last year.

• Per the August 2025 STR report, out of seven competitive hotels, the hotel ranked second in terms of occupancy and average daily rate (ADR) and first in terms of revenue per available room (RevPAR), registering a 127.3% RevPAR penetration index.

• Per the STR data, the hotel achieved an average RevPAR penetration level of 124.8% over the last three years, reflecting dominant market performance.

Exceptional Construction Quality, Featuring Custom Design Elements

• The property was built with custom design elements. Following the hotel’s opening in August 2017, it was awarded Marriott's 2018 “Development Project of the Year” for the Fairfield Inn & Suites brand in North America.

• Custom design elements include Buddy Holly artwork throughout the hotel, a spacious lobby area with a bar, and an expansive outdoor area with a covered patio, swimming pool, large-screen television, rocking chairs, and hammocks.

Excellent Location Within Canyon West

• The property benefits from excellent visibility and accessibility off the frontage road along Marsha Sharp Freeway/Milwaukee Avenue within the Canyon West shopping center.

• The property is one of only two hotel properties that are located within Canyon West.

• Canyon West is anchored by national retailers, including Target, Sam’s Club, Ross, Office Depot, DSW, and Ulta, creating a dominant neighborhood retail node.

• Milwaukee Avenue reportedly experiences traffic volumes of over 50,000 vehicles per day.

• Additional local demand drivers include Covenant Medical Center, University Medical Center, National Ranching Heritage Center, the Depot District (Lubbock’s entertainment hub), Buddy Holly Center, American Wind Power Center & Museum, and South Plains Mall.

Fairfield Inn & Suites by Marriott Franchise

• Twelve years remain on the hotel’s existing franchise license with Marriott.

• Given the strong performance and construction quality, Marriott is expected to grant a new, long-term franchise agreement of 15 years.

• Current ownership will order a change-of-ownership property improvement plan (PIP) during the due-diligence period once a buyer is selected; the initial estimate of the PIP is $10,000 per key.

• Fairfield by Marriott’s over 30-year legacy of performance offers owners and franchisees a highly efficient economic model that delivers strong results. As the second-largest Marriott International brand, Fairfield by Marriott is a proven performer and is growing rapidly.

• The brand consistently exceeds goals across key metrics, including guest satisfaction, RevPAR, Marriott-channel contribution, and owner satisfaction.

• The award-winning Marriott Bonvoy loyalty program is one of the largest in the hotel industry, offering members access to more than 8,000 hotels across 30 brands and about 200 million enrolled members, making it a powerful driver of repeat bookings and brand loyalty.

Management Availability

• The hotel is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the current operator.