Corporate Profile - 2019 EXECUTIVE SUMMARY

The Group (THG) is a national hotel investment and management company with it’s corporate headquarters in Seattle, WA and a regional office in Nashville, TN. Our deep and talented management team includes more than 30 corporate and regional members and 1,500 associates at our nearly 20 properties across 11 states.

Formed in 1984, the company’s operation experience includes: • Management and/or ownership of more than 125 properties in 25 states; • Design and development oversight of nearly 50 new ; • Multimillion dollar renovations of over 50 hotels; • Acquisition, ownership and divestment of 22 hotels; • Completion of nearly $460 million of asset management assignments for the Resolution Trust Corporation (RTC); and • Raising nearly $190 million in Opportunity Funds and Investment LLC’s to acquire twelve hotels.

“As an investor accountable to my Mission Statement own clients, I have an appreciation Our mission is to Serve our People & Properties; Inspire a culture of for the value, respect and integrity that THG demonstrates. Hospitality Greatness; and Deliver maximum investment value for

our Partners. They hold themselves accountable for the decisions that directly affect Fueled by this mission, THG has consistently demonstrated the unparalleled ability their investors, commanding the to assess a property not for what it is, but rather, for what it can be. The company utmost respect of their clients/ employees.” has regularly made market leaders out of historically poor performers. THG

maximizes return on investments and, along the way, attracts the industry’s finest - Jeff Flohr, Principal people to its ranks. Flohr Asset Management

DoubleTree by Hilton THG Leadership Advance Hilton Suites Billings, Montana Seattle, Washington Brentwood, TN 1 MANAGEMENT PORTFOLIO

The strength of THG is found in our team and track record, diversity and depth of experience, highlighted by our successful operation of more than 125 properties ranging from select-service hotels in small communities to full-service hotels in large metropolitan areas. We have triumphed with independent as well as franchised properties, and have established a network of personnel, operational, and technological resources to ensure a level of maximum performance at each property.

THG provides a wide range of flexible services geared towards the unique needs of our client partners, including ongoing hotel management, development and renovation oversight, receivership and turnaround of distressed assets, ownership and asset management. We utilize our substantial expertise in operations, marketing, revenue management, finance/accounting, human resources, guest services, and heart-of-the-house disciplines to achieve the objectives of our clients and provide a maximum return on their investment.

Hilton Garden Inn Homewood Suites by Hilton The Hotel Group - Corporate Office Marriott Bellevue, Washington Issaquah, Washington Seattle, Washington Kansas City, Missouri 2 The properties currently under management by THG are listed below:

Hotel Rooms Market Segment Location

Crowne Plaza 385 Downtown Upscale Kansas City, MO

Marriott 381 Airport Upscale Kansas City, MO

DoubleTree by Hilton 379 Downtown Upscale Cleveland, OH

Radisson BLU*** 326 Downtown Upper Upscale Anaheim, CA

DoubleTree by Hilton 289 Downtown Upscale Billings, MT

Hilton Garden Inn 254 Downtown Upscale Bellevue, WA

Homewood Suites by Hilton** 232 Airport Upscale Honolulu, HI

Hilton Suites 203 Suburban Upscale Brentwood, TN

Radisson RED*** 180 Downtown Upper Upscale Portland, OR

Hilton Garden Inn 179 Suburban Upscale Issaquah, WA

Hilton Garden Inn* 177 Suburban Upscale Redmond, WA

Hampton Inn & Suites by Hilton 167 Highway Upscale Northgate, WA

Tapestry by Hilton 142 Downtown Upper Upscale Seattle, WA

Holiday Inn Express Hotel & Suites 130 University Upper Midscale Pullman, WA

Residence Inn by Marriott** 125 Downtown Upscale Wenatchee, WA

Homewood Suites by Hilton 123 Suburban Upscale Issaquah, WA

Homewood Suites by Hilton 121 Suburban Upscale Draper, UT

Hampton Inn & Suites by Hilton** 115 University Upscale Pullman, WA

Towneplace Suites by Marriott** 110 University Upper Midscale Ellensburg, WA

Home2Suites by Hilton* 107 Suburban Upscale Yakima, WA

TOTAL ROOMS 4,175

*Under Construction **Under Development ***Asset Management

The Sound Hotel, a Tapestry by Hilton Radisson RED Home2Suites by Hilton 3 Seattle, Washington Portland, Oregon Yakima, Washington PRINCIPALS AND OFFICERS

THG’s Management Team combines in-depth experience and a broad range of skills to achieve property performance levels consistently higher than the industry average.

Edmond Lee, CPA Founder & Chairman As the company’s Chairman, Edmond Lee is responsible for the overall investment strategy, with an emphasis on hotel acquisitions and financial structuring. Before co-founding The Hotel Group in 1984, he worked for a national CPA firm as an audit manager and subsequently served as CFO for a national real estate investment company.

Douglas Dreher, CHA President & Chief Executive Officer Douglas Dreher has held the position of President since 2002 and was promoted to CEO in 2009. Mr. Dreher is responsible for all facets of the company, including overseeing the company-wide portfolio, real estate acquisitions and dispositions, investor relations, business development, capital, and strategic planning. Before joining THG in 1989 he worked for Westin Hotels & Resorts in various management positions. Mr. Dreher has supervised over 100 hotels in 25 states and Canada, overseen nearly 50 new developments, and gained background experience with the major franchise companies such as , , InterContinental Hotels Group, and Wyndham Hotels & Resorts. Mr. Dreher holds a Bachelor of Arts Degree from the School of Hospitality Business Management at Washington State University, where he has served as a guest lecturer and received a 75th Anniversary Honoree Recognition Award. Mr. Dreher sits on the Board of Directors for the American Hotel & Lodging Association (AHLA) and is a current member of the Lodging Industry Investment Council (LIIC), a think tank comprised of leading hotel and real estate executives which disseminates investment trends to the hospitality industry. He formerly held a position within AHLA’s Executive Committee and was also Chairman of the Board for the Washington State Hotel & Lodging Association.

Randy Meyer, CPA, CHA, CHTP Chief Financial Officer Randy Meyer is responsible for a wide variety of functions within the company, including responsibility for all enterprise accounting functions, compliance, financing, banking and investor relations, and risk management. He has been intimately involved with over 60 acquisitions and dispositions of owned and managed properties and instrumental in the structuring of numerous hotels’ financing. Prior to joining The Hotel Group (THG), Mr. Meyer was employed as an Asset Manager for Pacific Select Management Incorporated, a specialist in the turnaround of financially distressed properties for institutional investors. Mr. Meyer is a CertifiedPublic Accountant and a member of the American Institute of Certified Public Accountants, Washington Society of Certified Public Accountants, and Hospitality Financial & Technology Professionals. He currently holds positions on client advisory boards for M-3 Accounting and Analytics and Marsh Insurance. He is a founding member of the Washington Lodging Association’s Retro Steering Committee. Mr. Meyer holds a Bachelor of Science Degree in Accounting from City University of Seattle, as well as certification from the American Hotel and Lodging Association as a Certified Hotel Administrator and a CertifiedHospitality Technical Professional.

“THG has some of the most capable and qualified professionals in the industry. The trust we have in them gives us the ability to focus our time and efforts on growing other areas of our business.” – Mike Nielson, West77, President & CEO

4 THG LEADERSHIP TEAM

Robert Avila, Senior Vice President of Operations Robert Avila works directly with the general managers and their teams at THG property’s, focusing on customer service and internal associate satisfaction. With his attention on the day-to-day operations, as well as working with the sales and revenue teams, he strives to achieve and exceed the property budgeted goals. Robert has been with THG since 2006, and has more than 30 years of industry experience, including working for brands such as Hilton, Marriott International and Wyndham Hotels & Resorts.

Brian Latture, Senior Vice President of Operations Brian Latture applies his extensive experience in operating hotels to the variety of challenges faced inthe hotel industry. He provides leadership, guidance and support to general managers and team members, as well as oversees the necessary efforts to achieve budget results and operating plan goals on property. Brian has an extensive tenure in the hospitality industry, previously working for Marriott International and Hilton Worldwide in many regions such as the Pacific Northwest, Alaska, Midwest and East Coast.

Sam Johnson, Vice President of Operations As Vice President of Operations for the Pacific Northwest (PNW), Sam Johnson is responsible for overseeing the financial success of THG’s managed hotels and ensuring each property maintains brand compliance. An experienced hotel operator, Sam provides THG property’s with day-to-day support while challenging them to create unique and memorable opportunities to delight our guests. He brings first-hand knowledge of the PNW market and extensive leadership experience in luxury independent lifestyle hotels.

Eric McCarthy, CPA, CHAE Vice President of Hotel Accounting Eric McCarthy oversees THG’s hotel accounting operation, including day-to-day oversight of accounting functions, internal controls, and strategic planning. He works closely with the company’s operation, development and renovation teams providing guidance and support. He brings over two decades of experience in both hotel and corporate roles, having worked for companies such as Hotels & Resorts, Wyndham and Walt Disney World Resorts.

Neil Taylor, Senior Director of Project Management Neil Taylor provides operation and renovation support for hotel systems including repairs, property renovations and capital improvements. He also provides review and feedback of construction plans for all clients in the process of new hotel development, particularly relating to functionality and brand or operational needs.He coordinates and collaborates with associates to prepare and execute construction and renovation budgets that are meaningful, substantial, trackable and accountable to all parties.

Ed Ha, Director of Real Estate & Business Development Ed Ha works in all aspects of real estate and business development, including acquisitions for both THG and various capital partners, ground-up developments, management transitions, dispositions and various recapitalization methods. Ed oversees research, analysis and underwriting for any new THG owned or managed property’s, in addition to staying on top of local and prospective markets.

Stephanie Benadof, Corporate Director of Human Resources Bringing over 20 years of experience, Stephanie Benadof guides and manages the overall implementation and execution of our Human Resources policies and programs within THG. She supervises on property execution of HR policies such as performance management, recruitment and retention, team member orientation, training and development. Stephanie also directs all employee relations including communications, policy development, charitable giving, and employee health, safety and wellness.

“I have a history with this company for well over 20 years. Their effective management strategies stand well above other companies in this industry and bolster my trust in their ability to not only manage my investments, but to guide me through all economic times.” – Sidney Chan, President, Uniwell Corporation

5 THG LEADERSHIP TEAM

Robin Koetje, CHTP Director of Information and Technology Robin Koetje oversees all corporate and property IT initiatives. His department provides support for THG network servers and computers, and he works directly with IT system vendors to supply current hotels, as well as procure systems for newly constructed or purchased hotels. Robin joined the corporate team after having worked in the front office for one of THG’s Pacific Northwest hotels and boasts over 25 years inthe hospitality industry with THG.

Carol Lobaito, Corporate Director of Sales & Marketing With extensive knowledge in the Puget Sound and the Pacific Northwest region, Carol provides total property support of sales, marketing and revenue for our managed hotels. She works closely with owners and developers in the opening process of their hotels, by developing pre-opening budgets, marketing plans, market research and recruiting within the sales department. Carol brings 20 plus years of sales and marketing experience to THG, having worked in markets across the United States.

Theresa Benson, Corporate Director of Sales & Marketing Theresa Benson provides overall support for the on-property sales teams in all facets of sales, marketing and revenue generation, and is responsible for the total revenue goals. Besides being the link between the hotel, corporate management and ownership, she works to ensure her hotels develop and implement strategic marketing and sales plans and maintain consistent branding and promote property corporate image throughout all promotional materials, events and sales efforts.

Nicole Ragland, Director of Content Marketing Nicole Ragland ensures the THG properties are utilizing every available tool when it comes to online marketing and content. She works with the hotel teams to ensure that their property is visible, reaching guests in a meaningful way and adhering to brand standards on social media, their website and other marketing platforms.

Brandon White, Director of Revenue Management Brandon White specializes in revenue analysis and reporting, bringing to THG a decade of experience in revenue management. He is proficient in monitoring industry trends and forecasting property performance. Brandon examines the property growth through the well known STR hospitality reports and tracks new supply development in cities where THG owns or manages hotels.

Molly Bruder, Executive Assistant to the President and CEO Molly Bruder is the Executive Assistant to Douglas Dreher, THG’s President and CEO. In addition to managing several projects for the company, her key responsibilities include scheduling tasks and managing communications to ensure the internal chain of command operates efficiently. Molly is instrumentalin coordinating the diverse responsibilities of the corporate office with THG’s customers, owners, and employees.

Melissa Murphy, Executive Assistant to both THG’s Founder and THG’s CFO As Executive Assistant for both THG’s Founder, as well as our CFO, Melissa Murphy oversees the collaboration and final completion of THG’s insurance, licensing, investor documents, quarterly reports and tax filings. With a strong eye for detail, she manages the record keeping for THG and ensures thatall documents routing through accounting, business development and THG’s corporate office are completed in a timely and proper manner.

“THG’s deep and talented team has shown us time and time again that our asset is in very capable hands.” – Tom Timmons, Kinetic Capital Real Estate Group, Managing Director

5 CASE STUDIES

Since inception, THG has developed a sound reputation based on its ability to successfully open and operate a variety of hotels and resorts. It also has created an enviable track record for the turnaround of distressed properties. The following case studies are examples of both on-going and completed projects.

“With THG managing our Express, it has been the most positive economic success I’ve ever had! THG has guided us through all facets of a hotel’s life cycle and has given us a beautiful, well managed, profitable and award winning hotel.” -Dr. Wenzel Leff, Earthtone Properties, Hotel Owner

381-Room Kansas City Airport Marriott, Kansas City, Missouri

The only hotel on airport grounds, the subject property benefits from its strategic location at the main entrance of the Kansas City International Airport, one of the top five airports in the North American Airport Satisfaction Study by J.D. Power & Associates. Recently underwent a multi-million-dollar transformational renovation, which increased corporate bookings, hotel EBITDA and RevPAR.

2017 - 2018 2017 - 2018 Marriott EBITDA Increase RevPAR Increase Brand Renovation Award 483% 25% 2018

379-Room DoubleTree by Hilton, Cleveland, Ohio

Acquired in May 2007, the property underwent a transformational renovation and reopened as a DoubleTree by Hilton. THG was awarded “Developer of the Year” for the rebranding and renovation and watched as EBITDA and RevPAR increased dramatically post conversion.

2008 - 2018 2008 - 2010 DoubleTree EBITDA Increase RevPAR Increase Brand Conversion Award 1,214% 25% 2008

7 203-Room Hilton Suites Brentwood/Nashville, Tennessee

Replaced an institutional management company, translating into immediate incremental cash flow, the property was repositioned as a preferred upscale lodging facility following modest renova- tion and later a comprehensive renovation completed in May 2017.

6/2005 v. 5/2006* 6/2005 v. 5/2006* Hilton EBITDA Increase RevPAR Increase Voice of the Customer Award 35% 22% 2018

*First year of operations compared to previous ownership: 06/ 2005 - 05/2006

179-Room Hilton Garden Inn & Homewood Suites Issaquah/Seattle, Washington

THG selected as part of an elite team of project consultants - spearheading franchise relations, brand selection design consul- tation, purchasing and FF&E coordination to open and operate an upscale Hilton Garden Inn for a prominent Seattle developer’s first hotel venture, leading to the development of an adjacent Homewood Suites.

Hilton Garden Inn Homewood Suites Homewood Suites EBITDA Flow-Through* RevPAR Index* Connie Pride Award 29% 107% 2018 *Year-End 2018

130-Room & Suites, Pullman, Washington

Renovated in 2008 and again in 2014 and strategically located less than 1 mile away from Washington State University. The property is a multi-year IHG Torchbearer/Quality Assurance Award and TripAdvisor Certificate of Excellence award winner and maintains a nearly perfect TripAdvisor review rating of 4.5 out of 5.

YE 2018 YE 2018 Torchbearer & Quality EBITDA Flow-Through RevPAR Index Assurance Awards 39% 113% 1994 - 2018

8 THG’s MOST RECENT AWARDS

THG often wins awards for innovation, renovation and promotion. They are a clear and welcome confirmationof outstanding customer service in the market place and property achievement and development.

2018 Hilton Connie Pride Award The Homewood Suites by Hilton Seattle/Issaquah recognized with the Connie Pride Award from Hilton For the third year in a row, the Homewood Suites by Hilton Seattle-Issaquah, managed by The Hotel Group, was recognized with the 2017 Homewood Suites by Hilton Connie Pride Merit Award. The Hilton Award is given to the top 5% of properties within the brand who have excelled in all brand requirements. The award demonstrates the highest commitment to brand standards, guest satisfaction and loyalty.

2018 Teaching Kids to CARE Award The DoubleTree by Hilton Billings was recognized with the Teaching Kids to CARE award from Hilton The DoubleTree by Hilton Billings hotel was awarded the Teaching Kids to CARE award for hotels with 255 rooms and above. This award is given to hotels who are mentoring grade-schoolers with a goal of creating a mindset of sustainable change and encourages hotel teams to help kids stop and think about how they can impact the environment around them for the better (in little or big ways).

2018 Quality Excellence Award The Holiday Inn Express & Suites in Pullman was recognized with IHG’s Quality Excellence Award For the second year in a row, the Holiday Inn Express and Suites Pullman won the Quality Excellence Award which is given to hotels who have achieved the highest levels of excel- lence within the InterContinental Hotels Group.

2018 Marriott Renovation Excellence Award The Kansas City Airport Marriott was recognized with a Renovation Excellence Award Owned by THG’s Opportunity Funds, the Kansas City Airport Marriott was recognized with the Marriott Renovation Excellence Award at the 2018 MINA & Full Service Owners Conference in Washington DC. Awarded annually to a renovated hotel highlighting the industry’s most innovative design and impressive renovation, the Kansas City Airport Marriott features a complete upgrade in modern style for business and leisure travelers.

2017 Loved By Your Guests Award Homewood Suites by Hilton Draper named the Loved by Your Guests Award Winner The Homewood Suites by Hilton Draper/Salt Lake City, managed by The Hotel Group, recently was awarded with Hotels.com’s Loved by Guests award. This award is distributed to hotels who display exceptional levels of guest services.

9 EMPLOYEE INITIATIVES / COMMUNITY SERVICE

THG is committed to providing personal and professional growth opportunities for all of its employees. Throughout the year, THG presents Hospitality Greatness awards to exemplary individuals and top performing properties for their exceptional hospitality culture via Inspired Hospitality Greatness™. These winners are recognized for going the extra mile to build the THG team spirit and extending friendliness and a warm welcome to our guests during their stay.

Lead Us Toward Hospitality Greatness™ - THG’s Good Neighbor Program

The Edmonds Corporate Office in Edmonds, WA

In 2006, THG established the Good Neighbor Program to formalize its long standing commitment to partner with non-profit organizations in communities where THG operates hotels. Examples of this support include:

• Hotel employees volunteering their time to help local community non-profit organizations; • THG donating funds from renovation and salvage sales; • THG donating excess furniture, fixtures, televisions, etc. from hotels during renovations and upgrades; and • THG hotels collecting and donating “partially used” amenities to local shelters and other organizations.

10 Any inquiries regarding The Hotel Group should be directed to:

The Hotel Group Douglas Dreher, President & CEO 201 5th Avenue South, Suite 200 Edmonds, WA 98020 Telephone: (425) 771-1788 Facsimile: (425) 672-8280 www.thehotelgroup.com