Recently Renovated to Formula Blue 2.0 Protype, Minor Change-of-Ownership PIP Expected

• Current ownership completed the Formula Blue 2.0 design scheme in June 2024, investing approximately $2,000,000 in property upgrades and renovations, including a new roofing system.

Market Leader, with Strong Revenue and RevPAR Trend

• The hotel’s annual rooms revenue averaged $1,270,000 (rounded) over the last three years.

• In 2025, the hotel earned $1,286,230 in rooms revenue at an average RevPAR level of $50.54.

• The hotel has outperformed and consistently dominated its competitive set, having registered a RevPAR penetration index of 202.9% in 2025, per the latest available data.

Robust Petrochemical & Energy Market

• Based upon a report published by the Southeast Texas Economic Development Foundation (SETEDF), approximately $41 billion of petrochemical expansion projects are either underway or have been recently completed; ongoing projects are expected to be completed by 2030.

• Winnie benefits from continued investment driven by nearby large-scale industrial and infrastructure projects, including petrochemical processing expansions, advanced recycling facilities, energy infrastructure, and regional storm-protection improvements.

Ideal Opportunity for Experienced Owner/Operator at a Discount to Replacement Cost

• Opened in 2009, this is an ideal opportunity for an experienced owner/operator looking to acquire a relatively new lodging facility in an active market. New ownership will have a blank slate to ramp up the hotel’s operations and the ability to increase both revenues and net operating income (NOI) flow-through.

• The asset is priced at an attractive discount to replacement cost of $87,121 per key.

Key Developments Fueling Market Expansion

• Cormorant Clean Energy Project: The $1.2-billion, ultra-low-carbon ammonia plant, Cormorant Clean Energy, is under construction near State Highway 73 and West Port Arthur Road. This plant will be the first commercial-scale deployment of 8RH2 technology and will create over 1,000 new construction jobs from 2024 to 2027, as well as several hundred permanent positions upon completion.

• Entergy Texas is constructing a $1.19-billion, 1,215-megawatt OCAPS, a dual-fuel combined cycle power facility designed to utilize both natural gas and hydrogen. Located near Bridge City, Texas, this state-of-the-art plant aims to power over 230,000 homes, replacing aging infrastructure and enhancing grid reliability. Construction began in early 2023, with completion scheduled for 2026. An economic impact analysis estimates the creation of over 7,000 direct construction jobs, as well as 27 permanent positions upon operation.

• Additionally, Entergy Texas announced plans to develop the 754 MW Legend Power Station, a hydrogen-capable and carbon capture-enabled power facility in Port Arthur. The $1.46-billion project is slated for completion by 2028 as part of Entergy’s Southeast Texas Energy Plan. Construction is expected to generate hundreds of local jobs, contributing significantly to the regional economy while supporting grid reliability and clean energy goals.

• The HFPP is a multibillion-dollar, multi-phase initiative to strengthen the region’s defenses against coastal storm surges and flooding. As of 2025, over $500 million in contracts had been awarded, including a recent $400-million, design-build contract for major floodwall replacements and levee elevations. Construction is scheduled to begin in 2026 and continue into the early 2030s. The project aims to protect over 100,000 residents and critical infrastructure, while supporting long-term job creation and economic resilience.

• Chevron is planning a $5.0-billion, blue hydrogen and ammonia production facility as part of federally supported hydrogen-hub initiatives. The project is expected to break ground in 2027, with operations targeted to commence in the early 2030s, and will reportedly support over 1,700 construction jobs and 100 permanent operational positions.

Excellent I-10 Location Among Strong Corporate & Leisure Demand Generators

• The property benefits from its strategic location along Interstate 10 (I-10), proximate to a multitude of corporate demand drivers, including the expanding ExxonMobil refinery, Chevron, Motiva Enterprises, Sunoco Logistics, BASF, Total Petrochemicals, Valero, Port of Beaumont, Conns Appliances, Lamar University, and Ford Park.

• A well-established healthcare sector, inclusive of Riceland Medical Center, Coastal Gateway Health Center, and Arboretum of Winnie Nursing & Rehabilitation Center, as well as consistent demand for local retail, dining, and housing, support the area’s economic stability.

• Winnie features a mix of leisure-related amenities, including community parks, local wineries, recurring events and markets, and access to nearby wildlife and bird-watching destinations. These attractions and events draw regional visitors and support local restaurants, retail outlets, and hospitality activity.

• The multi-purpose Ford Arena (located 30 minutes east of Winnie) can host a variety of events including banquets, conventions, sporting tournaments, concerts, and family shows. The facility boasts a 9,737-seat, multi-purpose arena; 34,000 square feet of exhibit floor space; a 2,448-square-foot VIP Club; and a 1,107-square-foot patio. Ford Midway is home to the South Texas State Fair, which draws an attendance of over 400,000 each year.