Absentee-Owned Asset

• The absentee-owned asset operates with a full staff in place. Great upside exists for a more hands-on owner/operator to restructure the hotel’s operations and increase net operating income (NOI) flow-through.

Upside Potential for a Robust Owner/Operator

• Per the trailing-twelve-month (TTM) August 2025 profit-and-loss statement, the hotel registered a gross operating profit (GOP) of 21.6%. Comparable operating statements for similar hotel assets indicate that the average GOP should be between 44.0% and 50.0%.

• There are multiple opportunities for improvement that could lead to a collective decrease in rooms expense and administrative & general (A&G) expenses, specifically within the payroll department, allowing for stronger cash flow.

Attractive Rooms Revenue Multiplier of 3.0x

• Based on the pricing guidance and the hotel’s TTM August 2025 rooms revenue of $1,500,000 (rounded), the deal underwrites to an attractive 3.0x rooms revenue multiplier (RRM).

Priced Below Replacement Cost

• This offering provides an investor with the opportunity to acquire an InterContinental Hotels Group (IHG)-branded hotel asset at less than $60,000 per key, prior to consideration of the brand-mandated property improvement plan (PIP).

PIP Available

• The change-of-ownership PIP report is available and has been uploaded to the virtual deal room (VDR).

• The Formula Blue PIP is expected to cost approximately $1,600,000, or $20,000 per key (rounded), resulting in an all-in basis that remains well below current development costs for comparable upper-midscale, limited-service hotel assets.

Underperforming Hotel, Significant Rooms Revenue Growth Expected

• Per the August 2025 STR data, the hotel ranked third out of five competitors in terms of RevPAR, registering an 87.4% penetration index and underscoring strong potential for rate growth.

• Post renovation, upside exists for an experienced operator to implement more-aggressive sales strategies to improve both occupancy and top-line performance.

• Based on HVS pro-forma projections, following the completion of the PIP, stabilized rooms revenue in 2028/29 is anticipated to exceed $1,700,000 ($61.00 RevPAR), with an NOI flow-through of $550,000 (rounded).

Holiday Inn Express & Suites Franchise, 15-Year Franchise License Term Available

• Upon approval from the franchisor and completion of the brand-mandated change-of-ownership PIP, an investor can expect a new, 15-year license agreement with InterContinental Hotels Group (IHG).

• The award-winning IHG® Rewards Club loyalty program is one of the largest in the hotel industry, offering members more choices to redeem their points than any other hotel loyalty program in the world. Serving over 100 million enrolled members worldwide, IHG Rewards Club is an effective tool for driving customers to IHG hotels and creating brand loyalty.

Located within Eagle Ford Shale Region Oil & Gas Market

• Cuero lies in the Eagle Ford Shale region, one of the most prolific oil and gas plays in the United States, generating consistent hotel demand from exploration and production companies, oilfield service crews, pipeline contractors, and midstream infrastructure workers.

• While this region’s economy is largely anchored by the O&G industry and energy sector (with more than 1,350 producing leases and 40 operators in DeWitt County), Cuero Community Hospital, Cuero Independent School District, and the Texas Department of Criminal Justice represent a few key employers in the area that contribute directly to the local economy.

• Local and regional manufacturers and agribusinesses, including Brookshire Brothers, Amherst Manufacturing, and Nest Fresh Eggs, alongside traditional agriculture (cattle, dairy, cottonseed, and pecans), further support the economy and lodging demand.

Near Major Texas Metros

• The property is strategically located along U.S. Highway 183, north of U.S. Highway 87, providing direct access to the heart of Cuero and convenient regional connectivity to such cities as Victoria, San Antonio, Corpus Christi, and Houston.

• Cuero is situated approximately 90 miles southeast of San Antonio (1.5-hour drive) and 130 miles southwest of Houston (2-hour drive), placing it within easy reach of major Texas population centers and transportation corridors.

Management Availability

• The hotel is being offered free and clear of any management encumbrances, providing an investor with the flexibility to install its preferred management company or to self-operate.