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OFFERING MEMORANDUM www.APEX-CRE.com TABLE OF CONTENTS EXECUTIVE SUMMARY 3

PROPERTY OVERVIEW 6

AREA OVERVIEW 11

EXCLUSIVE INVESTMENT ADVISORS

TRENT BRIGHT Commercial Real Estate Advisor 0: 801.676.5700 C: 435.820.6801 [email protected]

DANIEL DAVIS Commercial Real Estate Advisor 0: 801.676.5700 C: 435.650.4294 [email protected]

COLE WATERFALL Commercial Real Estate Advisor 0: 801.676.5700 C: 385.347.2457 [email protected]

APEX-CRE.COM Baymont Inn and Suites MURRAY,

EXECUTIVE SUMMARY

3 Baymont Inn and Suites MURRAY, UTAH

PROPERTY SUMMARY

Asking Price $8,500,000

Address 4465 Century Dr. Murray, UT 84123

Year Built / Last 1975 Renovated Stories 2

Site 3.72 Acres

Rooms 127

Building Area 64,567 sf

Lot Area 162,043 sf

Zoning MGC

Executive Summary 4 Baymont Inn and Suites MURRAY, UTAH

Property & Investment Highlights

Brand Overview Wyndham Hotels and Resorts is an international hotel and resort chain based in the . It has locations in China, Canada, Mexico, Colombia, Ecuador, Turkey, Germany, the UK, the Caribbean, Indonesia and Margarita The 23rd Busiest Airport in the USA in 2018 Island in Venezuela. On June 1, 2018, Wyndham Worldwide spun-off Wyndham Hotels & Resorts as SLC is the 23rd busiest airport in North America and its own company, and Wyndham Worldwide was renamed Wyndham Destinations. As of December the 85th busiest in the world. More than 340 flights 31, 2018, it has 9,157 hotels, including 8,717 that depart daily to 95 nonstop destinations. SLC is are franchised, 438 that are managed and two that currently undergoing a $3.6 billion redevelopment are owned, and, as of March 31, 2019, it has program, the first phase of which will be completed in approximately 812,100 rooms, including 2020, while the second phase of the project will be approximately 745,300 that are franchised and complete in 2023/2024. approximately 66,800 that are managed, increased from the systemwide total of 809,933 rooms as of The airport plays an important role in supporting December 31, 2018. business and economic growth in the state. Its operations are a key component in providing affordable access to worldwide destinations for business and Strong Local Market Demand individuals. To that end, improved operations of the airport will offer more efficient access to global markets Business-friendly policy, a strong economy, and and an opportunity to continue to add value to Utah’s quality of life continue to draw outside interest into the market. In 2017, a record $2.2 billion economy by strengthening the ties of local institutions in investment sales was achieved along the to their global peers (such as universities, hospitals, , and development and demand hotels, the arts, etc.), sustaining existing business, levels across all market segments remain elevated. providing access to new business opportunities outside of the state and attracting new business to the state. Driven by a continued inflow of out-of-state and institutional funds, total investment sales volume in the market reached a record-breaking $2.2 billion in 2017.

Buyers remain active, demonstrating long-term confidence in the local market.

Source: CBRE Hotels Americas Research, Q1 2019 Executive Summary (DATA AVAILABLE UPON REQUEST ONLY) 5 Baymont Inn and Suites MURRAY, UTAH

The Baymont Inn and Suites is located at 4465 South upgrade the airport to better serve the more than 24 expected to range from 68.2% to 69.5% during the 5- Century Dr. Murray, Utah. Located only 11.4 miles million passengers that use the airport annually. This year forecast period. South of the International Airport (SLC) upgrade will create a more efficient airport that can and conveniently situated on I-15, 7.6 miles from better handle the growing demand and needs of both This is an exceptional opportunity to acquire a hotel and 20.7 miles passengers and the airlines it serves. with a unique freeway location that offers tremendous the . visibility for the property and the brand in an extremely Upper-priced hotels are projected to experience an strong airport market. The 2-story Baymont Inn By Wyndham features 127 ADR growth rate of 1.5%, along with a 1.7% loss in guest rooms. The property has outstanding access occupancy, resulting in a 0.3% RevPAR decline. and visibility, standing unobstructed along exit 297 on Looking towards 2020, Salt Lake City RevPAR is , where approximately 219,021 cars pass expected to grow 0.9%. This is better than the rate of each day. growth in 2019. Unlike 2019, prospects for RevPAR growth in the upper priced segment (positive 2.0%) Salt Lake City is currently underway with a $3.6 billion are better than in the lower priced segment (negative redevelopment program to help modernize and 0.4%). Salt Lake City market occupancy levels are

Executive Summary 6 Baymont Inn and Suites MURRAY, UTAH

AREA OVERVIEW

7 Baymont Inn and Suites MURRAY, UTAH

Salt Lake City 2026-2030 Olympic Bid & Economic Impact

The International Olympic Committee recently made a dual award of upcoming Summer Olympics — giving 2024 to Paris and 2028 to Los Angeles — Utah’s Olympic leaders anticipate a similar approach may be used to pick sites for the indicator, would be consistent with past 2026 and 2030 Winter Games. There is a major differences between the 2002 Games and the 2030 Games. experience. The 2002 Olympic Winter Games visibility and awareness. Since 2002, the Winter Olympics have added enlarged the Utah economy and left sports, which means more athletes and Given these comparisons, we conservatively a lasting economic legacy. This This policy brief provides Utah viewers. We estimate the 2030 Olympic estimate the 2026/2030 Olympics will create legacy continues to grow and decision-makers with a high-level Winter Games will be approximately eight at least as large an economic impact as the change as the Utah economy summary of Utah’s living economic percent larger than 2002 in terms of tickets 2002 Olympic Winter Games. This impact will matures in each subsequent year Olympic legacy and considers the sold and, with more attendees and increases occur as new money is brought into the state since the Games. economic prospects of a potential in spending patterns, visitor spending is circulates throughout the economy creating 2026/2030 . indirect and induced economic effects. The initial impact includes the estimated to be over 40 percent higher (inflation-adjusted dollars). We also expect Further, Utah’s travel and industry injection of outside funds that paid The economic impacts of the 2002 will benefit from infrastructure investment for the operation of the Games, new Olympic Winter Games include the the number of event days and television viewership to be 19-35 percent larger. Other and the increased visibility from hosting the infrastructure, visitor spending, and regional economic impact (direct, Olympic Games. The five to nine percent skier other benefits. In the years following indirect, and induced effects1 of new things being equal, this growth in sports, events and viewers will create a larger visit displacement observed in 2002 could be the Salt Lake City Olympics, other money spent in the state), new mitigated with advanced marketing and economic benefits take hold as the infrastructure that remains in place economic footprint in Utah than the 2002 planning. infrastructure from that time remains after the Games and serves Games. in service to residents and visitors residents and visitors, the surplus alike, the surplus/endowment from leftover from the Games that Additionally, based on our analysis of Utah’s Finally, the intangible benefits of Utah’s the Games is spent, the travel and benefits the local economy, travel travel and tourism industry before and after continuing ascension as a winter sports tourism industry expands, and and tourism impacts, and intangible the 2002 Olympic Winter Games, we expect capital (home to world class events and elite Utah’s sports’ industry grows. In a impacts, most noticeably, the skier visits, national park recreation visits, athletes), business development like manner, many intangible positioning of Utah as a winter sports accommodation taxable sales, airport opportunities, increased visibility and benefits foster additional economic capital, business development, and passengers, and private leisure and awareness, and other intangibles further growth as Utah develops as a winter increased visibility and awareness hospitality employment to continue a strengthens the economic impact of hosting sports capital, attracts businesses about Utah. positive growth trajectory after another another Olympic Games. related to the Olympics, and other Olympic Winter Games. A growth trend of 25- intangibles such as increased 60 percent over 14 years, depending on the Source: Utah’s Olympic Economic Legacy, Policy Institute Area Overview 13 Baymont Inn and Suites MURRAY, UTAH

Salt Lake City International Airport (SLC)

SLC is the 23rd busiest airport in North America and the 85th busiest in the VIDEOS world. More than 340 flights depart daily to 95 nonstop destinations. SLC is currently undergoing a $3.6 billion redevelopment program, the first phase of 1. The New SLC (Project Description) which will be completed in 2020. 2. Timelapse Video Fast Facts

SLC’s total number of passengers increased year- over-year by more than 5% in 2018, marking the sixth consecutive year of growth at the airport. The strong growth in traffic can be attributed to one of the fastest growing populations in the country with Utah’s population growing over 14% since 2010.

Year to date March 2019 passenger activity is up month to month from last year by an average of 4.8% and the future outlook for passenger activity at SLC continues to appear positive.

Source: https://www.slcairport.com Area Overview 14 Baymont Inn and Suites MURRAY, UTAH

LODGING MARKET OVERVIEW

Regional Economic Summary Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of mid-February through March. Conditions in the labor market remained tight, hiring activity remained generally stable, and wage growth was moderate. Price inflation was unchanged on balance. Sales of retail goods increased modestly, while activity in consumer and business services increased moderately. Conditions in the manufacturing sector improved modestly, and conditions in agriculture deteriorated somewhat. Contacts reported that residential real estate market activity expanded moderately, and commercial activity was robust. Lending activity was mixed.

Activity in the consumer and business services sectors increased moderately on balance. Demand for passenger and cargo air transportation expanded solidly. Activity in the quick service restaurant segment was slightly stronger on a year-over-year basis. A contact in the hospitality sector in Southern noted that hotel bookings declined noticeably, driven by fewer reservations at more affordable properties.

Hotel Market Summary RevPAR increase of 0.3%. This is the result of an estimated decline in occupancy of 1.5% and a 1.8% gain in average daily room rates (ADR). The 0.3% advance in Salt Lake City RevPAR is less than the national projection of a 2.0% increase.

Leading the way in 2019 RevPAR change is the lower-priced segment of Salt Lake City. The properties in this category are forecast to attain a 3.0% gain in ADR, but suffer a 1.2% decrease in occupancy, resulting in a 1.7% RevPAR increase. Upper-priced hotels are projected to experience an ADR growth rate of 1.5%, along with a 1.7% loss in occupancy, resulting in a 0.3% RevPAR decline.

Looking towards 2020, Salt Lake City RevPAR is expected to grow 0.9%. This is better than the rate of growth in 2019. Unlike 2019, prospects for RevPAR growth in the upper priced segment (positive 2.0%) are better than in the lower priced segment (negative 0.4%). Salt Lake City market occupancy levels are expected to range from 68.2% to 69.5% during the 5-year forecast period.

Area Overview 15 Baymont Inn and Suites MURRAY, UTAH

The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2014 to 2023. Used as a relative benchmark, each market segment is plotted against a common index value of 2014 = 100. This method provides clear insight of how each market segment performed and is expected to perform in relation to others in the specified period. The charts on the right compare near-term historical compound annual growth rates (CAGR) to the CAGRs for the forecast period.

Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY) 16 Baymont Inn and Suites MURRAY, UTAH

Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY) 17 Baymont Inn and Suites MURRAY, UTAH

INVESTMENT CONTACTS

TRENT BRIGHT Commercial Real Estate Broker 0: 801.676.5700 C: 435.820.6801 [email protected]

DANIEL DAVIS Commercial Real Estate Agent 0: 435.650.4294 Baymont Inn and Suites MURRAY, UTAH [email protected]

COLE WATERFALL Commercial Real Estate Agent 0: 385.347.2457 [email protected]