HOTEL WILMINGTON, DELAWARE OFFERING SUMMARY

HOTEL WILMINGTON, DELAWARE OFFERING SUMMARY

THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to offer, on an exclusive basis, the fee simple interest in the 244-room DoubleTree by Hilton Hotel Wilmington (the Hotel or Property ) located approximately 1.5 miles north of the AstraZeneca North American headquarters, 5 miles north of Downtown Wilmington and 17 miles from Philadelphia International Airport. The Hotel features 244 guestrooms, 11,000 square feet of meeting space, a full-service restaurant and lounge, a business center, an indoor heated pool and hot tub, a fitness center, and additional on-site amenities. The seven-story Hotel completed a comprehensive $5.1 million ($20,900 per room) renovation in 2015. Wilmington s economy is based on its status as the most populous and easily accessible city in the State of Delaware, a state which made itself attractive to corporations with businessfriendly financial laws and a longstanding reputation for a fair and effective judicial system. Notable industries include credit card issuers, insurance, retail banking, and legal services. In addition, the city is the corporate domicile of more than 50% of the publicly traded companies in the United States and over 60% of the Fortune 500. Notable corporations that drive significant room night demand to the Hotel include AstraZeneca, DuPont, and JPMorgan Chase & Co. The DoubleTree by Hilton Hotel Wilmington presents investors with the opportunity to acquire a high-quality, full-service Hotel at a significant discount to replacement cost. The Wilmington market is poised for significant short and long term growth as AstraZeneca aims to increase headcount and DuPont stabilizes following its merger with Dow. A new owner will benefit from an industry leading brand, strong in-place cash flow, and additional upside from a growing market and a recently completed renovation. In the trailing twelve months as of February 2017, the Hotel achieved over $9.6 million of total revenue and over $3.3 million of net operating income. The Hotel is being offered unencumbered by management. 2

INVESTMENT HIGHLIGHTS Superior Location & Accessibility: Strategically located directly off of the Route 202 corridor and easily accessible from I-95, the Hotel benefits from its close proximity to Downtown Wilmington, Philadelphia International Airport, the Concord Mall, and a myriad of corporate demand drivers. Excellent Proximity to Corporate Demand Generators: The Hotel benefits from its excellent proximity to Wilmington s largest corporate lodging demand generators. AstraZeneca is the largest corporate account in the market and it s North American headquarters are located on Route 202, within 1.5 miles of the Hotel. JPMorgan Chase & Co. recently acquired two office buildings directly adjacent to the AstraZeneca campus and relocated nearly 2,000 of its employees. DuPont s global headquarters are also located in suburban Wilmington. Other corporate lodging demand generators include Accenture, Deloitte, Incyte Corporation, and Chubb. Strong Cash Flow with Attractive Yield: The Hotel offers a new owner a strong current yield, RevPAR, and in-place cash flow, as well as further topline improvement by capturing additional market share. The Hotel generated NOI of $3.3 million in the trailing twelve months as of February 2017 and achieved a RevPAR index of 110.8 over the same time period. The Hotel s location along the Route 202 corridor, as well as its recent renovation, should allow the Hotel to maintain its existing performance while also capturing additional market share. Recently-Renovated, High-Quality, Full-Service Hotel: Completely renovated in 2015, the Hotel is the most recently renovated full-service hotel within the Wilmington market. After a $5.1 million investment in capital expenditures by the current owner, the Hotel is in pristine condition and will require minimal capital investment. The DoubleTree by Hilton Hotel Wilmington is the only full-service hotel on the Route 202 corridor, benefiting from over 11,000 square feet of competitively superior meeting space. Industry Leading Brand: DoubleTree by Hilton has quickly become a favorite of institutional investors due to its compact full-service structure with higher margins and lower operating costs. The DoubleTree by Hilton Hotel Wilmington is the premier Hilton hotel in the market and benefits from access to over 44 million Hilton Honors members. Unencumbered of Management: The Property is offered unencumbered of existing management, providing flexibility to retain or replace the operator. Address: Acreage: Guest Rooms: 244 Construction Date: Renovation Date: 2015 Food & Beverage: Function & Meeting Space: Amenities: Ownership Structure: Management: PROPERTY OVERVIEW 4727 Concord Pike, Wilmington, DE 19803 4.61 acres 1973 Concord Tower/1998 Brandywine Tower Palettes Restaurant & Lounge, Room Service 11,000 SF across six meeting rooms, including a 4,960 SF ballroom Business Center, Sundry Shop, Heated Indoor Pool and Hot Tub, Fitness Center, Complimentary WiFi, Complimentary Shuttle, Complimentary Self-Parking Fee Simple Unencumbered 3

LOCATION MAP DISTANCES TO: Downtown Wilmington: 5 Miles Philadelphia International Airport: 17 Miles Baltimore Washington International Airport: 50 Miles 4

LOCATION OVERVIEW DELAWARE RIVER 495 DOWNTOWN WILMINGTON 95 95 A. I. DuPont Hospital for Children 202 Inn at Wilmington CONCORD MALL 5

OFFERING FORMAT & PROCESS The Hotel is being offered on an as-is, where-is basis without any representations or warranties. Potential Purchasers are encouraged to thoroughly evaluate the merits of this investment opportunity and proactively review the Hotel prior to submitting a proposal. Following the distribution of Offering Materials, HFF is available to assist Potential Purchasers in the review of the information contained herein. All inquiries and requests, including arrangements for property and market tours, should be addressed to the HFF transaction team noted below. Owner and HFF reserve the right to alter the marketing process at their sole discretion. DUE DILIGENCE Upon execution of the confidentiality agreement, investors will be given access to an online archival bank of information containing property tax bills, third party reports, and other property information. The purpose of this information is to facilitate due diligence and depth of underwriting. TRANSACTION COSTS Each Prospective Purchaser shall be responsible for any and all costs and expenses (including legal fees) associated with their inspection and due diligence efforts pertaining to the Property. TERM SHEET A Potential Purchaser will be selected by Owner and HFF, in their sole and absolute discretion, on the basis of a complement of factors, including, but not limited to the Potential Purchaser s: Financial strength; Level of discretion to invest funds; Ability to close the transaction in a timely fashion; Experience in closing similar transactions; Reputation in the industry; and Due diligence completed prior to their purchase offer. HFF will notify Potential Purchasers as to the call for offers date as well as provide any specific terms and conditions of the transactions with which the Owner is prepared to proceed. On the to-be-determined call for offers date, HFF asks that all offers be submitted with, at a minimum, the key business terms noted below: Purchase price; Amount and timing of deposits; Length of due diligence and closing periods; Allocation of closing costs between buyer and seller; Description of the availability and source of both equity and debt funds for the acquisition; Explanation of due diligence completed to date; Explanation of acquisition approval process by pertinent individuals, boards, or committees if selected as a buyer; and Background information on the purchasing entity. 6

Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. If you have any questions or require additional information, please contact any of the HFF professionals below: DENNY MEIKLEHAM Managing Director 617.848.1560 dmeikleham@hfflp.com ALAN SUZUKI Director 617.848.1575 asuzuki@hfflp.com CYRUS VAZIFDAR Director 202.777.2311 cvazifdar@hfflp.com FINANCING CONTACT GREG LABINE Managing Director 617.848.1564 glabine@hfflp.com www.hfflp.com MATT ENRIGHT Associate 617.848.1851 menright@hfflp.com TAYLOR GOLUB Real Estate Analyst 202.777.2310 tgolub@hfflp.com CONNOR ALLEN Real Estate Analyst 617.848.1566 callen@hfflp.com ONE POST OFFICE SQUARE, SUITE 3500 BOSTON, MASSACHUSETTS 02109 P 617.338.0990 F 617.338.2150 *HFF has engaged Financial & Consulting Services, Inc. (DE broker license #RB0001876) as licensed co-broker for the offering.