Recently Renovated Asset

• In 2023/24, ownership completed an extensive property-wide renovation related to the brand’s Comfort Rise & Shine design scheme.

• Given the recent renovation, a minor change-of-ownership property improvement plan (PIP) is expected upon transfer.

Ideal Opportunity for an Experienced Owner/Operator

• This is an ideal opportunity for a more hands-on owner/operator to ramp up the hotel’s operations post renovation, offering new ownership a blank slate to increase both revenues and NOI flow-through.

Absentee-Owned Hotel Operated by Third-Party Management Company

• The hotel is absentee owned and operated by a third-party management company with a full staff in place. Great upside exists for a more hands-on owner/operator to restructure the hotel’s operations and implement cost controls.

• Per the 2023 and 2024 profit-and-loss (P&L) statements, the hotel registered an average gross operating profit (GOP) level of 23.9%. Comparable operating statements for similar hotel assets indicate that the average GOP should be between 44.0% and 50.0%.

Underperforming Hotel, Significant Rooms Revenue Growth Expected

• Due to the extensive renovation last year, which affected guestroom inventory, management was unable to renew any corporate long-term contracts and missed out on some potential revenue opportunities.

• Per the February 2025 STR trailing-twelve-month (TTM) data, the hotel ranked fifth (out of six) among its competitors in terms of occupancy and fifth in terms of RevPAR, registering a 67.5% RevPAR penetration index.

Increasing Revenue Trend Post Renovation

• Year-to-date rooms revenues through March 2025 are up 18.1%, compared to the same period last year. This trend is expected to continue as the hotel ramps up post renovation and recaptures its market share.

• Based upon HVS’s pro-forma projections, stabilized rooms revenue is anticipated to surpass $2.3 million, with an NOI flow-through of $780,000 (rounded).

Excellent Location near U.S. Highways 71 and 183

• The property benefits from its strategic location along the frontage road near the intersection of U.S. Highways 71 and 183, proximate to numerous dining, retail, and entertainment options.

• Corporate demand generators in the area include Oracle, Tesla Gigafactory, Tokyo Electron, MetCenter Business Park, and Advanced Micro Devices (AMD), as well as The University of Texas.

• Leisure demand generators in the area include the Circuit of the Americas Racetrack, Colorado River Park, Zilker Metropolitan Park, Barton Springs Pool, and Downtown Austin.

Highly Desirable Asset in Austin, Texas

• Historically, it has been difficult to develop real estate in Austin because of higher land costs, extended entitlement periods, strict zoning laws, and delays from backlogged city officials.

• There are multiple year-round citywide events that attract over 27.4 million visitors each year, such as Austin City Limits (ACL), South by Southwest (SXSW), and Formula 1 racing at Circuit of the Americas. The University of Texas (UT) football games are major fall attractions, while events like the Austin Film Festival and Austin Food + Wine Festival showcase the city’s diverse cultural landscape.

• The Austin Convention Center is undergoing a $1.6-billion renovation to expand its capacity to 620,000 square feet of event space, along with new venues and modern amenities. The renovation is expected to start this year and is slated for completion by 2029. The expansion further supports the future growth of the city with capabilities to host larger events.

• Austin remains a major center for economic expansion, particularly within the technology sector. The city has experienced a 40% post-pandemic increase in tech jobs, attracting significant venture investments totaling $2.2 billion. Major companies, such as Tesla, SpaceX, Samsung, Google, Amazon, Meta, IBM, Intel, Apple, and PayPal, have established substantial operations in the area, contributing to Austin's reputation as a burgeoning tech hub.

Austin-Bergstrom International Airport (AUS)

• The property is located less than three miles from Austin-Bergstrom International Airport (AUS).

• The airport is currently undergoing a multibillion-dollar renovation and expansion project as part of the "Journey with AUS" multi-year development program, designed to enhance the airport’s facilities and increase its capacity with addition of a new, 20-gate concourse and connector tunnel; a new, 370,000-square-foot arrivals/departures hall; and a new, 7,000-space parking garage, among other facility upgrades. The phased project is scheduled for completion by 2030 and is expected to drive increased lodging demand in the surrounding area.

• The AUS 2040 Master Plan anticipates passenger traffic doubling to over 31 million annual passengers. The expansion projects are strategically designed to meet this projected demand, ensuring the airport's infrastructure aligns with Austin's rapid growth.

Management Availability

• The hotel asset is being offered free and clear of any management encumbrances.