Stable Revenue Trend

• The hotel’s total gross revenue has demonstrated consistent business, averaging $1,223,000 (rounded) over the last three years.

• Performance continued to accelerate into 2026, with March results trending 23.2% higher than the amount earned during the same period last year, indicating demand growth and supporting a positive near-term revenue outlook.

• Limited hotel supply and steady transient demand should continue to support performance continuity.

Diverse Local Economics

• RevPAR performance in the Junction market has remained relatively stable, supported by a diverse mix of leisure, highway-oriented, and healthcare-related demand.

• Junction serves as a central crossroads for travelers moving between West and Central Texas along Interstate 10 (east/west), U.S. Highway 377 (northeast/southwest), and/or U.S. Highway 83 (northwest/southeast), as these thoroughfares meet here. Thus, the city benefits from consistent transient demand generated by motorists, truck drivers, and commercial travelers.

• Kimble County boasts a robust hunting and outdoor recreation economy, supported by the convergence of the North and South Llano Rivers. The area attracts visitors for fishing, kayaking, hunting, and camping, providing a meaningful source of lodging demand throughout the year.

Attractive Rooms Revenue Multiplier (RRM): 3.4x

• Based on the $4,200,000 pricing guidance, the deal underwrites at an attractive 3.4x RRM in consideration of the hotel’s three-year-average rooms revenue of $1,223,000 (rounded).

• Given the hotel’s recent growth trajectory and continued momentum into 2026, this valuation presents an opportunity for investors to acquire a growing cash-flowing asset at an attractive basis with upside through operational improvements.

Absentee-Owned Hotel Asset

• The currently absentee-owned asset creates a compelling opportunity for a hands-on buyer to unlock additional upside through improved day-to-day management, operational efficiencies, and enhanced revenue optimization.

• With a manageable 52-room footprint, the acquisition would be ideal for a hands-on owner/operator or a first-time investor seeking lower overhead.

Automatic Transfer Eligible

• Qualifying for Best Western’s automatic transfer, and in consideration of the property’s very good condition, buyers can expect minor improvement requirements from the brand.