Well-Maintained Physical Assets with Minimal Deferred Maintenance

• Current ownership has proactively invested in both cosmetic and mechanical enhancements, ensuring that the properties remain in exceptionally good condition; modernized systems and mechanical upgrades help optimize energy efficiency and reduce long-term maintenance costs.

• Ongoing renovations and upkeep have helped maintain the properties' image and appeal, contributing to strong guest satisfaction, supporting positive reviews and repeat business.

• With minimal deferred maintenance, new ownership could seamlessly take over operations without the need for significant capital expenditures.

• The seasonality of this southeastern North Carolina market allows ownership to schedule renovations during offseason months, minimizing disruption to operations and maximizing peak-season revenue potential.

• New ownership would have the ability to acquire these assets and implement its own creative vision, curating a beachfront paradise for guests to enjoy uninterrupted ocean views.

Upside Potential for a Robust Operator to Realize Portfolio Growth

• The two Kure Beach properties, the Admiral’s Quarters and Sand Dunes Motel, present an opportunity for operational synergies by implementing shared management and reducing costs while optimizing revenue-management strategies to drive topline performance.

• Recently renovated and renamed, The Starlite Inn offers an investor the chance to capitalize on its upward trajectory, unlocking its full revenue-generating potential. Furthermore, a one-bedroom king suite is currently serving as the management office, offering the potential for additional revenue if the room were to be brought back into inventory and rented out at a premium rate.

• The Beach House Inn & Suites also has one guestroom that is currently being used for storage, which could also be added to the inventory as a rentable room, further increasing total revenue potential.

• Portfolio revenue is projected to increase by 8.0% in 2025, driven by strategic rate increases made possible by recent property updates and ongoing demand for beachfront accommodations.

• Upon stabilization (2027/28), it is estimated that the Portfolio will earn $4,000,000+ in gross rooms revenue. Any further property upgrades that a buyer decides to complete will only benefit the portfolio and its future success.

• Continued improvements and strong market fundamentals, coupled with invaluable locations, position the portfolio for further revenue growth, enhancing profitability for a new investor.

• Recent and proposed upgrades to similar beachfront assets have produced a movement to upscale boutique redevelopment and excellent investment returns for investors.

High-Barriers-to-Entry Market with Beach Access

• Both Carolina Beach and Kure Beach are characterized by limited developable oceanfront land and strict zoning regulations, creating a high-barriers-to-entry market.

• The properties benefit from irreplaceable locations, with a highly desirable beachfront presence that provides a significant competitive advantage in their respective submarkets.

Proven Historical Top-line Performance

• Since acquiring the Portfolio in 2022/23, current ownership has maintained an annual average revenue level exceeding $3,300,000, demonstrating consistent demand and operational stability.

• The Portfolio consistently commands a blended average daily rate (ADR) of $225 during peak season (June–August), providing a stable foundation for strong revenue performance, with the three beachfront properties supporting rates of approximately $240 (rounded) during this period.

• Strong ADRs are still recorded during the spring shoulder months of March–May and the fall shoulder months of September–November, with a combined ADR averaging $175 (rounded).

Highly Desirable Assets Among Strong Leisure Demand Generators

• The Sand Dunes Motel and Admiral’s Quarters Kure Beach are situated side by side directly on the beaches of Pleasure Island, steps away from the Kure Beach Pier (one of the oldest on the East Coast) and multiple dining options.

• The Beach House Inn & Suites benefits from its beachfront location, across the street from Stress Reelief Fishing Charters and less than one mile from Carolina Beach’s dining and retail options.

• Despite being the only non-beachfront asset in this portfolio, The Starlite Inn is strategically positioned on one of the most sought-after street corners in Carolina Beach, benefiting from high visibility and walkability, just steps from the Carolina Beach Boardwalk & Amusement Park, as well as numerous dining and retail options.