Distressed-Asset Opportunity, Likely to Trade Below Current Debt Level

• This is a lender authorized short sale with a highly motivated seller, creating a rare opportunity for a buyer to acquire an asset below its current debt level.

Absentee-Owned Hotel Asset with Immediate Upside Potential

• The hotel asset is absentee owned and has been managed by a third party since 2022, offering a more hands-on owner the opportunity to improve operations.

• Per the February 2025 STR report, the hotel ranked last in its competitive set (fifth out of five) in ADR, occupancy, and RevPAR.

• If the hotel were to achieve the market RevPAR of $51, rooms revenue would reach $1,450,000 (rounded), equating to a rooms revenue multiplier (RRM) of 2.26x based on the pricing guidance.

Consistent Rooms Revenue

• Since 2022, the hotel has averaged rooms revenue of $1,020,000 (rounded), demonstrating a solid baseline of historical performance.

Proximity to One of the Largest Refineries in the United States

• ExxonMobil’s Baton Rouge refinery is one of the largest oil refineries in the United States and the second largest within Exxon’s global portfolio. This complex, which includes the refinery, various plants, and research centers, employs over 6,500 workers and contractors, generating project-based and long-term lodging demand.

• The property’s proximity to this complex offers a built-in base of non-seasonal, extended-stay business, especially for a value-driven, limited-service brand like Sonesta Essentials.

Centrally Located to Capture Diverse Travel Segments

• Situated just minutes from Baton Rouge Metropolitan Airport (BTR), the hotel is ideally positioned to capture steady demand from transient travelers.

• Louisiana State University (LSU) is one of the largest universities in the region and generates consistent room-night demand from visiting travelers, especially during football season and university events.

• Raising Cane’s River Center houses three venues, including a convention center, theater, and arena, that host conventions, concerts, tournaments, and exhibitions year-round, contributing to robust weekend and group demand.

Recent Capital Improvements, Minor PIP Expected for New Ownership

• The property underwent select renovations in 2024 as part of its conversion; updates included new flooring and fresh paint throughout, a new water boiler, and exterior updates, such as new signage and the re-striping of the parking lot.

• Thus, a minor change-of-ownership property improvement plan (PIP) is expected upon transfer.

Priced Below Replacement Cost at $42,800 Per Key

• The hotel asset is available at a price below its replacement cost at $42,800 per key (rounded), presenting a cost-effective investment opportunity.

Expanding Baton Rouge Market, Over $10 Billion in Investment Since 2020

• According to Baton Rouge Area Chamber, 39 companies have invested over $10 billion in relocations and expansions in the market area since 2020, creating 3,900 new jobs. BASF, CF Industries, ExxonMobil, and Renewable Energy Group, among many others, have contributed to 45 economic development projects.