Ideal Opportunity for an Experienced Operator

• The 125-key property offers investors the opportunity to acquire a custom-built, well-maintained, IHG-branded asset with consistent cash flow.

• New ownership can benefit from immediate in-place cash flow while pursuing additional upside through active revenue management and operating efficiencies.

Value-Add Opportunity with NOI Growth Potential

• Per the 2025 profit-and-loss (P&L) summary, the hotel generated approximately $2.94 million in total revenue and approximately $785,000 in net operating income (NOI) flow-through, representing a 26.7% margin and providing a meaningful opportunity for margin enhancement.

• From 2023 through 2025, the hotel’s NOI increased 18.4%, demonstrating a positive growth trend of cash flow across varying top-line environments.

• The pro forma projects NOI to exceed $1.0 million by 2028, reflecting meaningful upside, as revenue growth, operating efficiencies, and tighter expense controls should drive further margin expansion.

Positive 2026 Revenue Pacing, Sustained ADR Growth, & Improving Competitive Positioning

• The hotel’s annual ADR increased from approximately $90 in 2023 to $99 in 2024 and $102 in 2025, reaching approximately $107 in the year-to-date (YTD) period through June 2026.

• Per the May 2026 STR report, the hotel’s YTD ADR increased 3.1% to approximately $106, outpacing the competitive set by 4.9%; moreover, the hotel’s ADR penetration index improved 5.0%, and its RevPAR penetration index improved 6.4%.

Highly Sought-After Holiday Inn Express & Suites by IHG Franchise; New, 15-Year FLA Expected

• The hotel qualifies for a new, 15-year franchise license agreement (FLA) with IHG at closing, subject to brand approval.

Well-Maintained, Custom-Built, 2016-Vintage IHG Asset; PIP Recently Ordered

• The custom-built, four-story property comprises 125 keys on approximately 2.80 acres and features 34 suites, an outdoor swimming pool, a fitness center, and approximately 1,152 square feet of meeting space.

• IHG’s October 2025 Quality Evaluation reported scores of 100.0% in terms of Brand Safety Standards and Brand Standard Major Performance, with scores of 98.5% in the Brand Standard Important category, 94.1% in the Condition category, and 97.9% in the Cleanliness category.

• The change-of-ownership PIP has been recently ordered and will be uploaded to the VDR upon receipt.

Suite-Heavy Configuration

• The property’s 34 suites comprise more than one-quarter of the guestroom inventory, providing multiple room configurations for corporate, extended-stay, group, and family-oriented travelers.

Strategic Highway 290/Cypress Location Within Diversified Demand Corridor

• The property is located off U.S. Highway 290 at Huffmeister Road within the Highway 290/Cypress corridor, offering convenient access throughout Northwest Houston and the broader metropolitan area.

• Historical production reports reflect demand across corporate, business-travel, government, healthcare, education, and extended-stay segments, illustrating a diversified demand base beyond transient leisure.

Key Corridor Developments Fueling Demand Growth

• The Houston Texans have announced the development of the Toro District, an 83-acre sports and entertainment destination in nearby Bridgeland, to be anchored by the team's new global headquarters and training complex and to be developed in partnership with Harris County and Howard Hughes. The project is expected to generate an estimated $34 billion in economic impact and to create approximately 17,000 jobs across the region following its anticipated completion in 2029.

• The Highway 290 corridor is absorbing a significant wave of industrial investment, including H-E-B’s 500-acre distribution campus, Grainger’s 1.2-million-square-foot distribution center (opening in 2026), and Prologis Legacy Point, a five-million-square-foot logistics park projected to create 2,000 to 3,000 jobs.

• Two major hospital expansions in the area should provide durable medical demand for the hotel. Memorial Hermann Cypress has broken ground on a $277.5-million tower that will add roughly 200 beds upon completion, and Houston Methodist Cypress has announced a $104-million expansion that is anticipated to add approximately 80 beds.

• Surrounding master-planned communities, including Bridgeland, Jubilee, and Sunterra, continue to add thousands of new homes, generating construction, relocation, and visiting-family room-night demand.

Offered Below Estimated Replacement Cost

• The offering provides the opportunity to acquire a custom-built, 2016-vintage, IHG asset well below estimated replacement cost, which exceeds $150,000 per key for comparable, new limited-service hotel construction in the Houston market.

• Elevated construction and financing costs continue to constrain new development, thereby insulating the hotel’s competitive positioning over a typical hold period.

Fully Unencumbered by Management

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