High-Cash-Flow Asset

• Based on the 2024 rooms revenue of $2,071,503, the hotel’s net operating income (NOI) for the year was $977,641, at a capitalization rate of 12.22%.

Strong Historical Revenue

• The hotel has recorded a stable revenue average of $2,122,123 annually over the last three years, reflecting steady market demand.

• Per the December 2024 STR data, the hotel ranked third among six competitive hotels in terms of RevPAR, having registered a RevPAR penetration index of 132.0%.

• The hotel’s rooms revenue for the year-to-date (YTD) period through March 2025 increased by 2.0%, compared to the same period last year.

Strategic, Central Location in Robust Oil & Gas Market

• Kenedy is centrally located among the cities of San Antonio, Corpus Christi, and Victoria in the rapidly growing region of South Texas. It is at the epicenter of the Eagle Ford Shale, one of the largest oil-drilling regions in the nation, which produces about 1.1 million barrels of crude oil daily and accounts for 9.0% of U.S. oil production.

• The presence of the Eagle Ford Shale attracts workers and business travelers, boosting demand for lodging accommodations.

Other Local Highlights

• Aside from the O&G industry, Kenedy’s economic drivers include agriculture, transportation and logistics, and construction, with these sectors also contributing to lodging demand.

• Held on the third Saturday of each month, Kenedy Market Days offer a platform for local farmers and artisans to showcase their products. These events stimulate local commerce and foster community engagement, contributing to the area's cultural vibrancy.

Highly Desirable Extended-Stay Hotel Operation

• The Candlewood Suites brand has a strong reputation in the industry as one of the leading midscale extended-stay products; moreover, extended-stay hotels are highly desirable assets to own and have proven their resilience during downturns.

• The all-suite design promotes guest independence, which yields to lower housekeeping costs and potentially higher profits. The brand also features a low-cost operating model that allows a typical Candlewood Suites property to operate with twelve employees. This business model benefits an investor to operate an asset that yields high GOP margins and NOI flow-through.

• 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.