Operational Upside Potential for a Robust Operator

• In 2024, the hotel’s operating profit (GOP) was 33.2%, resulting in approximately $344,000 (rounded) in net operating income (NOI) flow-through.

• Significant upside exists for a more hands-on operator to streamline labor, tighten expense controls, and enhance overall NOI flow-through.

• Based on a selection of operating statements from similar hotels, the hotel should achieve a stabilized GOP margin between 40.0% and 42.0%.

• The property features 3,000 square feet of flexible meeting space, providing an additional revenue stream and an opportunity to drive higher group and corporate business under more active management.

Stable Rooms Revenue History Despite Absentee Ownership

• The hotel’s running-three-year average rooms revenue equated to $1,415,000 (rounded).

• Consistent and steady room-night demand in the market has allowed current ownership to operate in a largely hands-off manner while maintaining stable top-line performance.

Profitable Onsite Bar

• Over the last three years, the onsite bar has generated an average of approximately $150,000 (rounded) in revenue.

• In 2024, bar profit totaled roughly $88,000 (rounded). With focused management, the bar represents a strong opportunity to further enhance NOI flow‑through.

Attractive Rooms Revenue Multiplier (RRM): 3.0x

• Based on the $4,250,000 pricing guidance, the property underwrites to an attractive 3.0x RRM based on the trailing-twelve-month (TTM) November 2025 rooms revenue of approximately $1,387,000 (rounded).

Ideal Location in Strong-Performing Oil & Gas (O&G) Market

• Consistent O&G demand in the post-pandemic economy has supported stable hotel performance over the past three years.

• Seminole is located in the Delaware Basin within the larger Permian Basin, one of the most active extraction regions in North America.

Diverse Mix of Demand Sources

• The hotel is well positioned to capture group business from local educational institutions, energy companies, agricultural operations, and regional organizations, supported further by its 3,000 square feet of meeting space.

• Proximity to larger population centers such as Hobbs, Midland/Odessa, Lubbock, and Amarillo, makes the property a natural hub for transient business throughout the Permian Basin.

• Energy-sector demand from upstream, midstream, and service-industry travel helps maintain occupancy throughout the year.

• Gaines County’s significant peanut and cotton production generates seasonal lodging demand during harvest periods.

• Additional leisure demand stems from nearby attractions, including the Gaines County Museum, Gaines County Golf Course, and rodeo events, as well as the Zia Park Casino & Racetrack in Hobbs, New Mexico.

Discount to Replacement Cost at $48,000 Per Key

• This offering presents an investor with the ability to acquire the property at a price well below replacement cost, at $48,000 (rounded) per key.