Year-over-Year Rooms Revenue Growth with Meaningful RevPAR Upside

• The hotel has demonstrated a consistent upward trend in rooms revenue since 2023, increasing from $863,000 (2023) to $1,048,000 (2024) and $1,115,000 (2025), representing a 13.7% compound annual growth rate (CAGR), despite operating at a well-below-market RevPAR penetration level.

• Per the December 2025 STR report, the hotel’s RevPAR penetration index was 63.2%, significantly underperforming its competitive set, which indicates that material upside exists through improved rate strategy and active management.

• If the hotel were to match its market RevPAR, rooms revenue would reach over approximately $1,765,000, translating to a rooms revenue multiplier (RRM) of 2.49x, further representing the meaningful top-line upside without reliance on new supply or market growth.

Two Onsite Apartments & Twelve Kitchenette Rooms

• The property consists of 71 total keys, of which 66 are currently rentable.

• Five guestrooms are configured as two onsite apartments:

  • One apartment represents a fully-built-out, two-bedroom, one-bath unit (occupying four guestrooms) with full kitchen and living area, currently occupied by the manager.

  • The other is a single-room apartment unit that is currently used by staff.

• The property also features 12 kitchenette rooms, enhancing the hotel’s ability to capture extended-stay and workforce lodging demand, particularly attractive for energy-, construction-, and project-based travelers requiring longer-term accommodations.

Property Renovations & Capital Improvements

• The property has undergone significant renovations since 2021, including the following:

  • New LVT flooring throughout all public areas and first-floor guestrooms (2021)

  • Installation of brand-approved carpet in 33 second-floor guestrooms (2021)

  • New vanities and vanity mirrors in all guestrooms (2021)

  • Replacement of all mattresses (2021/22)

  • New washers and dryers in the guest laundry room (2022)

  • New in-room refrigerators, microwaves, and FF&E (within the last four years)

  • Upgraded furniture and design elements in the lobby and breakfast area (2021/22)

  • Full replacement of the roofing system (2019/20)

Additional Revenue-Stream Optionality: Event Space and F&B

• The property features a large banquet/conference hall, allowing for the ability to host corporate meetings, training sessions, local events, and/or private functions, and providing incremental revenue opportunities beyond traditional rooms revenue.

• The property also contains the infrastructure of a former full-service bar and kitchen, previously operated by past ownership, offering new ownership the option to reactivate the limited food-and-beverage (F&B) operation, lease the space, or reposition it for alternative use.

Stable Interstate Demand with Diverse Local Economic Drivers

• Transient Interstate Business

  • As noted previously, the property benefits from strong visibility and accessibility along I-20. According to TxDOT, over 27,000 vehicles travel this segment daily.

  • Located at the primary eastbound exit serving Eastland, the property captures pass-through leisure and commercial traffic traveling between Abilene and the Dallas-Fort Worth Metroplex, as well as long-haul I-20 corridor travelers.

• Local and Regional Economic Drivers

  • Eastland supports a stable base of local commercial activity driven by healthcare services, regional construction activity, energy-related businesses, and industrial employers.

  • The diversified demand profile provides consistent weekday occupancy support, complementing transient interstate-related volume.

Proven Market Revenue Levels Support Upside Opportunity

• The Eastland lodging market has demonstrated strong and consistent revenue performance among branded competitors.

  • The Best Western Eastland reported rooms revenue of $2.76 million (rounded) in 2025, with an average of over $2.44 million annually recorded since 2022.

  • La Quinta Inn & Suites by Wyndham Eastland reported approximately $2.01 million (rounded) in rooms revenue in 2025, averaging roughly $2.02 million annually since 2022.

  • The only other branded hotel in the market, the 30-key Super 8 Eastland, features exterior corridors and operates as an economy-class, budget-oriented hotel.

• The sustained performance of the interior-corridor hotel assets demonstrates the depth of lodging demand within Eastland and supports continued rate growth potential. Given the hotel’s 63.2% RevPAR penetration index, there remains meaningful opportunity to increase market share through improved revenue management and active ownership.