VIA EMAIL

October 11, 2018

Mr. Andrew Derickson 1020 N. Fairfax Street Sr. Vice President and General Counsel Suite 320 EFG/DRA Heritage LLC Alexandria, VA 22314 4601 DTC Boulevard Phone: (703) 838-9707 Denver, CO 80237 Fax: (703) 838-9712

Email: [email protected] cc: [email protected]; [email protected]

Re: Proposed Hotel and Conference Center at The Village, Town of Poughkeepsie, NY

Dear Mr. Derickson:

In accordance with Component 1 of our proposal, the following letter summarizes our findings and conclusions relative to the development of a hotel within the proposed “The Village” mixed-use development in Poughkeepsie, New York.

Our findings and conclusions are based upon our present knowledge and information with respect to economic and demographic data, room night demand sources, and the status of the competitive hotel market at the completion of our fieldwork in May 2018, and subsequent analysis in September 2018. The delay in delivery is a direct result of the client extending the timing for us to collect hotel usage survey data from Marist College.

PRELIMINARY CONCLUSION Based on our analysis of the subject site, trade area, and the current and prospective hotel supply and demand trends in Poughkeepsie and the surrounding area, we are of the opinion that there is sufficient market support for a nationally-branded, upscale hotel with a small conference center at the subject site, which will be located in the center of the new The Village development in the Town of Poughkeepsie, New York. The proposed development, located on the site of the now closed Hudson River State Hospital, will be located just north (diagonally opposite) of Marist College, along U.S. Route 9 (US-9) and will offer significant retail, residential, and office space, in addition to the hotel (and conference center) project.

In the course of our analysis, we reviewed a variety of potential hotel brands and types, including independent, select, and full-service properties. Of all those, we believe that a nationally-branded upscale select-service hotel with roughly 8,000 square feet of meeting space is the best fit for the site. Such a product will allow the proposed hotel to attract both corporate and leisure transient guests, as well as group demand, while mitigating any visibility concerns, as the hotel site is set far back from the main roadway, along the eastern side of US-9. In our opinion, a Hilton Garden Inn is the most appropriate branding option at this time. Hilton Garden Inn is an upscale, select-service hotel brand that we believe will appeal to the sizable educational, technology, medical, leisure, and family-oriented travelers that are coming to the Poughkeepsie area seeking this type of accommodation. Moreover, the brand equity and loyalty associated with Hilton is significant, allowing the brand to operate consistently above fair share penetration levels, in terms of occupancy, average room rate, and RevPAR. Moreover, the proposed traffic generated by Marist College (which reports that they generate roughly 16,500 to 18,000 annual room nights) will further ensure a base level of room night demand to the hotel on a regular basis. The Hilton Garden Inn brand presently (as of 3rd quarter 2018) has 626 properties (encompassing 86,407 rooms) open and operating across the United States. We assumed that the subject hotel would be developed in time to permit a 1st quarter 2021 opening (although this could be accomplished sooner by mid-2020).

Based on this, we estimate that the proposed 150-room Hilton Garden Inn can achieve a 76 percent annual occupancy in a stabilized year, at a $146.00 average daily rate (ADR), equating to a RevPAR of $110.96

WASHINGTON, DC l MIAMI l DENVER EFG/DRA Heritage, LLC 2

(in current-value 2018 dollars). Stabilization is expected by its 3rd full year of operation, assumed to be 2023. In preparing statements of estimated operating results for the project, these performance indicators translate to total revenues and an EBITDA After Reserve of $7.3 million and $1.9 million, respectively, with an EBITDA After Reserve margin of 26.6 percent of total revenue. A detailed projection of the hotel’s operating performance is provided in the Projected Operating Performance section of this letter, with supporting cash flows contained in the Addenda. We suggest that you review your total development costs, as well as the return on investment yields, alongside these financial estimates prior to proceeding, to ensure financial objectives are being achieved.

The balance of our letter summarizes the above findings and conclusions.

OVERVIEW OF THE SITE AND AREA REVIEW The subject site is located along US-9, diagonally opposite to Marist College, about three miles north of downtown Poughkeepsie, 20 miles southeast of Kingston, 15 miles east of New Paltz, and 20 miles north of Newburgh. Relative to the broader area, the subject site is located 83 miles north of New York City and 72 miles south of Albany. The adjacent map identifies the location of the subject site within the broader area. As the map illustrates, the site is less than one quarter of a mile from Marist College’s main campus, and just two miles south of the Culinary Institute of America’s (CIA) campus in Hyde Park. Vassar College is four miles southeast of the subject site.

The proposed hotel site is centrally located with the 150- acre development known as The Village, currently improved with several buildings that used to encompass the Hudson River State Psychiatric Hospital in Poughkeepsie. Due to age, the hospital began closing various components of the facility throughout the 1980’s and 1990’s. Several of the remaining historic Victorian High Gothic buildings located throughout the property will remain (and will be refurbished as part of the new development), including what was the main hospital administrative building. The hotel and conference center are proposed to be located just north of the main building, which will include several retail and administrative uses for the development. To the south of the administrative building will be the proposed Art and Education Center. Ultimately, we would recommend flipping these two uses so that the hotel is the first to be accessed, since the main roadway will approach from the south side of the buildings, as can be seen from the site plan on the following page. The hotel and conference center should be contiguous within one building. The development is proposed to include the following key components:

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 Approximately 550 multi-family residential units;  A planned 55+ community;  Retail and restaurant outlets totaling over 100,000 square feet including a 65,000-square foot supermarket (estimated 90,000 monthly visits) grocery store;  A child care facility;  Educational spaces such as the Arts and Education Building;  A 40,000-square foot medical office and urgent care building; and  Various walking trails and an 18-acre great lawn, with several other amenities.

The Village will be considered an intergenerational educational and medical community, highly connected to its neighbors, Marist College and Healthquest, the area’s premier healthcare provider It will provide residential and entertainment spaces for both students, as well as retirees in a live-work-play community centered around a “Main Street” experience. All permits and approvals are in place, and the complete demolition of the buildings south of the great lawn will be completed by early to mid-2019. The site is located adjacent to US-9 at the intersection of Hudson View Drive, which is the main entrance into the property. The site is generally bordered by US-9 to the east; wooded areas to the west; retail shopping, restaurants and Fulton Avenue to the south; and the Fern Tor Nature Preserve, as well as the Hudson River, to the east.

The site features easy access from US-9, the primary north-south thoroughfare in the market, offering two separate entrances and two separate traffic signals into the development. Traveling from the northwest or southwest of the Hudson River, I-87 provides access via State Route 299 (Exit 18), over the Mid-Hudson Bridge, and then onto US-9 North. Travelers coming from the southeast or northeast on the Taconic Parkway can exit SR-55 and proceed to US-9 North, roughly 12 miles away. As previously mentioned, site lines of the proposed hotel from US-9 will be limited depending on the building height and which trees on the Great Lawn are left intact; however, there will be two large pylon signs located along US-9 that will identify and direct travelers to the hotel location. That said, ultimate visibility to travelers will also be dictated upon the siting of the building within the mixed-use development. The site increases gradually in elevation as you move further east from US-9. The site plan to the right highlights the major development components.

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The Poughkeepsie area is served by Stewart International Airport (SWF), located 28 miles southwest of the subject site via Interstate 84 (I-84) or US-9. Total passenger counts at SWF were nearly 450,000 in 2017, representing a significant increase of 13.2 percent compounded annually since 2014 when the airport handled roughly 310,000 passengers. The increase has been due to several factors including an increase in international travel with new flights from England and Scotland, and a $100-million modernization project to its runways in 2015. SWF is about to embark on a $20-million improvement/expansion project to its passenger terminal, which should be completed by 2020. However, area hoteliers indicated that most travelers to the market arrive primarily by car. Average daily traffic counts in front of the site along US-9 average roughly 30,000+ cars per day (last reported in 2015), a slight increase from five years prior to that. That number is anticipated to increase after the development of The Village to roughly 40,000+ cars per day.

The subject site’s proximity to area amenities is currently considered good, but will be excellent once the various retail and entertainment venues open as part of The Village development. Within one-half mile of the subject site, dining options include local restaurants, such as Applebee’s, McDonald’s, Starbucks, and Giacomo’s Pizza, to name a few. There are also several restaurants located closer to downtown Poughkeepsie, such as Cosimo’s, Palace Diner, Mahoney’s, and the Mill House Brewing Company, as well as River Station, Amici’s, and the Poughkeepsie Ice House along the waterfront. Just to the north of the site, the CIA offers several dining options on their campus. Further, there is a growing number of boutiques, retail shops, and entertainment venues to the east in the Arlington neighborhood of Poughkeepsie near Vassar College.

The site’s proximity to area demand generators is considered excellent. One of the most proximate sources of demand for the proposed hotel and conference center will be Marist College. Located less than a quarter mile south from the subject site, Marist College is a private, co-educational, liberal arts college offering bachelor’s and master’s degrees, along with numerous certifications for its 6,700 students (5,000 traditional undergraduate students). The 180-acre school was founded in 1905 as a Catholic Religious Institute of Brothers to prepare individuals for their vocation as educators. Marist College sponsors 23 Division I collegiate sports, a significant demand generator for opposing teams in the market. These teams have typically stayed in surrounding submarkets in the past, and would likely use the proposed hotel in the future given its proximity and ease of access. The college recently completed (or is in the process of completing) several projects including four new residential dormitories ($150 million), a new Arts Building ($26 million), and a new Science Building ($83 million), as well as the new Fashion Institute Building. Indeed, Marist College will be a key partner in The Village development as many graduate students, as well as students from several new medical programs being implemented at the College, will live, work and play within the new development. As previously mentioned, Marist College reports that they generate roughly 16,500 to 18,000 occupied room nights of hotel demand annually (~900 of those related to visiting athletic teams). In addition to athletics, several special events drive room night and meeting demand year-round including the May commencement, admissions/tours of the campus, October homecoming, September family weekend, and various summer conferences, to name a few.

Apart from Marist College, there are four other higher education institutions within five miles of the subject site, which have numerous athletic, cultural, and other special events throughout the year. The following table and paragraphs provide salient facts about each one.

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Summary of Area Universities Distance to 2018 Total Institution Location Public/Private Size (acres) Subject Site Enrollment Marist College Poughkeepsie Private ~0.5 miles 180 6,700 Vassar College Poughkeepsie Private ~4 miles 1,000 2,500 Culinary Institute of America Hyde Park Private ~5 miles 170 3,600 Dutchess Community College Poughkeepsie Public ~2 miles 100 10,200 Source: Various institutions; compiled by REVPAR International, Inc.

 Vassar College is four miles southeast of the subject site. This small liberal arts college was founded in 1861 as an all-women’s college and converted to a co-ed institution in 1969, after it declined to merge with Yale. The school features a 1,000-acre campus, including a 400-acre farm, and has an annual enrollment of roughly 2,500 students. It offers over 50 majors and multidisciplinary programs. Additionally, its athletics department is in Division III of the National Collegiate Athletic Association (NCAA). Two years ago, Vassar College completed and opened its new $125-million, 80,000-foot long skywalk. “The Bridge” spans two pieces of terrain across the Fonteyn Kill stream with a two- level skywalk, and connects with the current biology building. It is also the new home to the chemistry department, as well as labs for robotics, environmental science, and science visualization. Overall, its enrollment and campus construction can be characterized as stable for the short-to-medium term, with only modest, deliberate growth expected. According to the College’s CFO, a proposed 50-room hotel, which will be owned by Vassar College, is apparently moving forward, and will be discussed later in the report.  The CIA is a private, not-for-profit college specializing in culinary, baking, and pastry arts education located about two miles from the subject site. In addition to offering associate’s and bachelor’s degrees, the CIA offers continuing education for professionals in the industry, conferences, consulting services, and even recreational classes for non-professionals. Throughout the year, room night demand is generated by guest chefs, educators, students, and food and beverage-related companies doing training, recruiting, or team building classes. The CIA’s facilities are frequently utilized by visiting companies conducting events (285,000 visitors per year), and they offer over 30,000 square feet of meeting space as a result. Of note, CIA is currently marketing a potential 125 to 150-room hotel site (7 to 10 acres) on their campus along the Hudson River. The college would like potential developers to include 5,000 to 10,000 square feet of meeting space, a 125-seat full-service restaurant, and other amenities as part of the project, which will be executed on a 50-year non-subordinated ground lease.  Dutchess Community College is also part of SUNY, and maintains a student enrollment of roughly 10,000 throughout the year. It was developed in the late 1950’s, and offers a variety of two-year degree programs including Architecture, Nursing, Computer Science, and Exercise Science, to name a few. It holds several events and continuing education programs, which generate hotel room nights throughout the year.

According to local hoteliers, these institutions generate consistent, but varying, levels of room night demand. Commercial-oriented demand includes visiting professors, professionals, and vendors, amongst others. Friends, family, alumni, and relocation activities comprise leisure-oriented demand. Admissions for each school are a major source of room night demand, and events such as commencement and homecoming induce a high level of compression in the hotel market annually. Of note, Marist College, was using (prior to 2018) roughly 35 rooms per night in the Residence Inn for nine months of the year for the last several years for students. They have since removed this demand from the market given the new residential facilities they developed.

Until 2008, IBM’s “Main Plant” was situated in Poughkeepsie until IBM closed many of its facilities and relocated operations to other locations throughout the world. IBM still maintains its primary design and manufacturing center for its newest main frames and high-end Power Architecture servers in Poughkeepsie, as well as one of the major software development centers for other products. As such, these activities generate a sizable amount of room night demand for area hotels. During our interview process, it was noted

EFG/DRA Heritage, LLC 6 that IBM produces at least 15,000 to 16,000 room nights in the market. IBM’s facilities are located roughly five miles south of the proposed hotel; however, most other branded hotels in the market are located closer to the plant, and would likely capture the majority of this demand.

Vassar Brothers Medical Center (owned by Healthquest), located in Poughkeepsie, is under construction with a $545-million, 696,000-square foot expansion, with construction expected to be completed in the summer of 2019. This project is one of the largest in the history of Dutchess County and has created over 300 construction-related jobs, as well as a host of other types of specialists during the construction process. The new wing will include 264 private patient rooms, 30 critical care rooms, a 66-room emergency department, 12 surgical suites, a rooftop helipad, and a 300-seat conference center in a seven-floor facility. The facility expects to hire a significant number of new full-time staff upon the project’s completion.

Mid-Hudson Regional Hospital of Westchester Medical Center, also located in Poughkeepsie, is another facility that is continually expanding, with a particular emphasis on cancer treatment. In 2016, Westchester Medical, the owner of the hospital, spent millions of dollars on a deal with technology company Royal Phillip to provide new cancer care programs to affiliates in Dutchess County, including Mid-Hudson Regional Hospital. The treatment center upgrades are attracting new patients who often look outside of the county for treatment.

While the immediate Poughkeepsie market area is not home to many large commercial demand generators or office parks, other than IBM, there are several smaller companies scattered throughout the greater market area, as well as local government business. As a result, the market is considered deep in terms of its ability to generate room night demand throughout the year, and along with a significant, relatively affluent residential population, the market is anticipated to be stable for the foreseeable future.

Of note, a prominent mixed-use development that recently broke ground is the Bellefield at Hyde Park project. The Bellefield site is 339 acres and located roughly across from the CIA. T-REX Capital Group plans to develop a mix of uses, including two hotels (one recently broke ground), a 10,000-square foot conference center, medical office space, more than 559 residential units spread across four distinct neighborhoods, a small “town center” with a village green, restaurants, and an active farm and culinary production center. According to the CEO for T-REX , shovels are expected to be in the ground on the first phase of retail and residential parcels by the end of the year. The project is expected to take between eight and 10 years to complete.

Another notable development is the $18-million Hudson River waterfront redevelopment in which the state has provided a grant for $2 million to a group of local developers. The redevelopment of the riverfront near downtown will include luxury apartments, as well as a marina expansion, boat club, restaurant, and retail within the same development.

The city of New Paltz, located just west of Poughkeepsie along Interstate 87 (I-87), also attracts summer tourism with its variety of culinary attractions, event venues, cultural attractions, museums, equestrian activity, and numerous outdoor recreation opportunities. The leisure segment of demand is growing in popularity throughout the region, as the mid-Hudson Valley has experienced a resurgence, particularly as a destination from New York City. This has been driven by ease of access and relatively low cost of real estate (second homes) and lodging, which has spurred interest in local farm-to-table dining, craft beer, wine, and spirits, as well as the aforementioned activities. Small downtowns throughout the area, including New Paltz, Beacon, Hyde Park, Rhinebeck, Hudson, and more, have become increasingly vibrant.

Also near to the subject site is the Walkway Over the Hudson, a linear pedestrian walkway spanning the Hudson River with dramatic views and draws nearly 600,000 annual visitors (per the Walkway Over the Hudson website). Other area leisure attractions include the Vanderbilt Mansion National Historic Site (Vanderbilt Estate) and the Home of Franklin D. Roosevelt National Historic Site (the FDR Estate). The FDR Estate is a flagship destination for Hyde Park and contains President Roosevelt’s 35-room home,

EFG/DRA Heritage, LLC 7 named Springwood, and the Roosevelt Library, the first of 13 Presidential libraries built in the United States. According to the National Park Service, about 193,000 tourists visited the FDR Estate in 2017, which represents an eight percent increase from 2010. Moreover, according to the Dutchess County Tourism, roughly 700 tour buses visit the Vanderbilt Estate and the FDR Estate annually for both day and overnight trips.

According to Woods & Poole Economics, the population of Dutchess County has increased minimally from 2007 to 2017, or by 0.1 percent. This growth is lower than the MSA and the state of New York, which grew at 0.5 and 0.4 percent, respectively, during this time period, but much less than the nation, which grew at a rate of 0.8 percent during this same period, reflective of more limited residential development in comparison. From 2017 to 2027, the population is expected to grow in the county at a rate of 0.5 percent, similar to the state and MSA, and below the nation at 0.9 percent. Retail sales followed a similar trend as population. Dutchess County’s retail sales increased 0.4 percent from 2007 to 2017, while the MSA and state posted increases of 1.1 and 0.9 percent, respectively. During this time period, the national retail sales also increased 0.9 percent. Future projections indicate that retail spending will increase similarly in all areas from 2017 to 2027. Dutchess County sales are projected to increase by 1.2 percent, while the state will increase by 1.0 percent, and national retail sales will increase by 1.6 percent.

According to the U.S. Census Bureau, the number of housing permits issued for Dutchess County increased roughly 2,000 between 2010 and 2016 (latest data available) from approximately 117,000 to 119,000, respectively, or by 1.7 percent. A comparably low amount compared to other counties in the state; however, the residential development near downtown along the waterfront, as well as those planned for The Village and Bellefield, should accelerate this rate of growth in the near future.

Overall, the subject site is well positioned over the long-term for hotel use, given its excellent location in proximity to Marist College, as well as the other aforementioned higher education, medical, commercial, and leisure demand generators. Its location within the proposed The Village development will be a benefit as well.

Based on our review of the area economic indicators, as well as discussions with people familiar with the local economy, market growth is expected to be positive into the future, as long as the commercial, educational, and medical sectors continue to grow. Accordingly, the underlying catalysts for growth exist, so positive trends, albeit modest, should continue into the foreseeable future, barring any other unforeseen natural, economic, or political events.

COMPETITIVE LODGING AND CONFERENCE FACILITIES

For purposes of our analysis, we Competitive Hotel Supply identified four hotels that would Year Mileage from Competitive Hotels # Rooms compete, to varying degrees, with the Opened Subject proposed hotel at the subject site. The Courtyard by Marriott 149 1988 ~4 miles table to the right provides a summary of Residence Inn 128 2004 ~4.5 miles the defined competitive lodging supply. Hampton Inn and Suites 129 2008 ~6 miles Holiday Inn Express 121 1967 ~4 miles Total 527 ‐‐ ‐‐ Source: REVPAR International, Inc.

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The competitive set is comprised of hotels in the Poughkeepsie market, within six miles of the subject site. Overall, these hotels offer a high- quality product, as well as national chain affiliations, and for the most part provide a high price-value relationship to travelers in the area. The map to the right illustrates the location of the competitive hotels relative to the subject. Please click on the link to view an interactive version of the map.

In general, the hotels in the competitive set are the only hotels located in the Poughkeepsie market. The most direct competitors to the proposed subject hotel are those that offer nationally recognized brands, and include the aging Courtyard by Marriott, which is scheduled for a full renovation in 2019, and the Holiday Inn Express, which is currently being offered for sale. We note that the only purpose-built, extended-stay, branded lodging facility in the immediate market area is the Residence Inn which, along with the Hampton Inn and Suites, is one of two hotel products introduced into the market within the last 14 years. As all of these hotels are located south of downtown Poughkeepsie, the subject hotel will be ideally situated to accommodate demand that is generated to the north such as Marist College, CIA, and Healthquest, to name a few.

In addition to the hotels noted in the table, there were several other properties not included in the competitive set, due to size, condition, market orientation, and pricing. A number of small, independent properties, with fewer than 30 rooms, were also excluded. Despite the fact that the Poughkeepsie Grand recently went through a full renovation, and offers the majority of hotel meeting space in the area (~15,000 square feet), we have discounted it from our analysis given its quality level and location in downtown Poughkeepsie. The owners also control several other catering venues in the market (Shadows on the Hudson and The Grandview), and as a result can offer potential clients several different venues as a single point of contact, which is especially appealing to leisure/wedding demand. The Poughkeepsie Grand offers much lower room rates than other hotels as it is located in downtown Poughkeepsie, which is viewed as more economically depressed than other areas along US-9. Of note, according to several hoteliers, AirBnB is becoming more and more a factor in the lodging market, especially in accommodating weekend leisure demand.

For purposes of our analysis, and to better understand the meetings and events market, we also interviewed other pertinent meeting venues in the market. In many instances, outside of local companies, these venues Key Area Conference/Meeting Facilities reported some difficulties in attracting outside Facility/Location ~Size (Sq Ft) (especially corporate) catering demand to Poughkeepsie Poughkeepsie Grand Hotel 15,000 for various reasons including a dearth of quality hotel Mid‐Hudson Civic Center 16,000 Dutchess Community College 12,000 rooms, as well as the perception that the downtown The Grandview 12,000 Poughkeepsie market is depressed, opting instead for Shadows on the Hudson 8,000 other areas in the greater region. Several mentioned the Marriott Pavilion CIA 31,000 need for another hotel with contiguous conference space Total 79,000 under one roof. The table to the right provides a Source: REVPAR International, Inc. summary of these key meeting/conference facilities in

EFG/DRA Heritage, LLC 9 the area. As indicated, the facilities vary drastically in scope and type. For example, the Mid-Hudson Civic Center (located adjacent to the Poughkeepsie Grand) is more of an event venue versus a traditional conference center, and the meeting space at Dutchess Community College, as well as the other educational institutions in the market, are widely dispersed throughout campus in several buildings versus in one contiguous facility, and thus are typically only utilized by the College in which it operates. We asked Marist College for a breakdown of its meeting space, but were not provided any details.

HISTORICAL MARKET PERFORMANCE A summary of the historical performance of the defined competitive set is included in the following table.

Historical Operating Performance of the Competitive Market Available Room Occupied Room Annual Average Daily Year RevPAR Nights Nights Occupancy Rate 2012 192,355 132,480 68.9% $124.67 $85.86 2013 192,355 127,032 66.0% $128.49 $84.86 2014 192,355 138,181 71.8% $131.67 $94.59 2015 192,355 142,432 74.0% $138.10 $102.26 2016 192,355 144,052 74.9% $139.67 $104.60 2017 192,355 133,430 69.4% $132.98 $92.24 2018 (1) 192,355 144,210 75.0% $130.29 $97.68 CAG (2) 0.0% 1.4% ‐‐ 0.7% 2.2% Notes: (1) Projected year‐end results based on year‐to‐date data through July. (2) Compound Annual Growth. Source: REVPAR International, Inc.

Over the last seven years, the room night supply has remained unchanged, while demand has fluctuated but increased moderately overall, equating to 1.4 percent annually on a compound annual basis, resulting in a nearly six-point increase in occupancy. Annual occupancy levels for the competitive set ranged from the mid-60 to mid-70 percentile between 2012 and projected year-end 2018. Apart from 2013, when occupancy declined slightly due to renovation activity at both the Courtyard by Marriott and Holiday Inn Express, the competitive set has steadily accommodated growing levels of demand. Last year, the market dropped due to Marist College pulling the rooms out of the Residence Inn, and corporate international travel (especially to IBM) reduced as international employees were challenged in obtaining visas. That demand has since been replaced into 2018 from several other sources, pointing to the market’s relative strength and depth. Occupancy growth has been driven by increased medical and educational demand, including construction from the hospital and university expansions, as well as tourism growth increases in the area. The strongest (branded) hotels in the market all exceed a 70 percent annual occupancy, with the Residence Inn estimated to lead the competitive set.

Between 2012 and projected year-end 2018, the competitive set’s ADR increased by 0.7 percent compounded annually, or by about $6. Every hotel in the competitive set had been able to increase room rates until last year, when the Marist College demand (which was highly rated) left the Residence Inn, causing it to drop its corporate rates to quickly replace the demand. It had a cascading affect, that caused some of the other hotels such as the Courtyard by Marriott and the Hampton Inn and Suites to drop rates to compete. Also, some key vendors and corporate accounts (that carried a higher negotiated rate) related to IBM left the market. At the same time, the Holiday Inn Express was undergoing another renovation in preparation for sale, which impacted its ability to drive rate as well. Into the future, we anticipate this trend to reverse itself, and the market to continue growing rate, especially with the introduction of newer and improved hotel product, but still, the trend is concerning.

RevPAR, a statistic that illustrates the performance of all available rooms in the competitive set, increased 2.2 percent compounded annually over this same time period, due to the aforementioned increases in both occupancy and ADR.

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HISTORICAL MARKET SEGMENTATION A summary of the historical market segmentation for the competitive set is provided in the following table.

Historical Market Mix for the Competitive Supply 2012 2018 (1) Compound Market Segment Total Occupied Percentage of Total Occupied Percentage of Annual Growth Rooms Total Rooms Total Corporate/Gov’t 60,151 45% 66,005 46% 1.6% Leisure 25,247 19% 28,087 19% 1.8% Group 17,601 13% 19,171 13% 1.4% Extended‐Stay 29,481 22% 30,947 21% 0.8% Total 132,480 100% 144,210 100% 1.4% Note: (1) Projected year‐end results based on year‐to‐date data through July. Source: REVPAR International, Inc.

In 2018, the market segmentation of the overall competitive set is projected to be 46 percent corporate/government transient, 19 percent leisure transient, 13 percent group, and 21 percent extended- stay. As illustrated in the table, the accommodated demand is relatively well diversified. However, the corporate/government transient segment has the greatest influence on demand patterns in the market, as it represents the largest source of room night demand to area hotels. Of note, IBM (or IBM-related) represents roughly 11 percent of total demand.

Overall, occupied room nights for all segments have increased by a compound annual growth rate of 1.4 percent between 2012 and projected year-end 2018. Corporate, leisure, and group have all grown at a similar rate. The increase in group demand is largely due to its diverse nature, with growth in collegiate sports and activities at the various institutions; weddings and social events; as well as corporate, government, and commercial demand driving the segment. Both corporate and leisure transient demand increased 1.6 percent and 1.8 percent, respectively, from 2012 to projected year-end 2018. Corporate demand increases are largely due to an uptick in business travel to the educational and medical demand generators in the market, as well as the numerous smaller sources of corporate and government demand in the area, much of which is related to the strengthening of the local and regional economy. The increase in the leisure segment is a result of increased popularity of the area for tourists visiting many of the attractions noted in our overview of the market.

SEASONALITY Room night demand for the defined lodging market is seasonal, with occupancies typically declining from November through March, due to a drop in commercial and leisure business. Comparatively, April through October is the strongest period due to increased commercial demand throughout the week, and leisure demand emanating from New York City on weekends. Of note, July and August represent the peak leisure period in this market, due to the dynamic mix of area attractions, including the aforementioned Walkway Over the Hudson, one of the most popular leisure attractions in the region.

FUTURE ADDITIONS TO SUPPLY During the course of our research and analysis, which included discussions with representatives from the hotel brands and local planning/CVB officials, we identified several hotel projects planned for the defined market area, as outlined in the following table.

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Summary of Hotels Under Construction or Proposed # of Projected Proposed Project Developer Location Rooms Opening Date Included in Analysis Subject Hotel EFG/DRA Heritage Poughkeepsie 150 1Q 2021 Hyatt Place MVK Enterprises Poughkeepsie 93 4Q 2018 Homewood Suites The Briad Group Poughkeepsie 113 2Q 2019 T‐REX Capital Group/ Residence Inn Bellefield Hyde Park 131 2Q 2020 Shaner Hotels Vassar College Hotel Vassar College Poughkeepsie 50 2Q 2021 Speculative (Not Included in Analysis) T‐REX Capital Group/Shaner Second Bellefield Hotel (Autograph Collection) Hyde Park 125 TBD Hotels Vassar Extended‐Stay Hotel Paz Management Poughkeepsie 110 TBD Boutique Hotel at CIA TBD Hyde Park 125 TBD Mercury Grand Hotel Local Developer Poughkeepsie 153 TBD Poughkeepsie Inn Site TBD Poughkeepsie 100 TBD Sources: Developers and municipal planning and zoning officials; compiled by REVPAR International, Inc.

A map identifying the location of the proposed future supply relative to the competitive set and subject site is provided in the Addenda. Please click on the link to view an interactive version of the map.

The 93-room Hyatt Place should be completed by the end of this year and is located roughly seven miles south of the subject site at the intersection of US-9 and Sheafe Road. It is an odd location behind a self- storage facility. The 113-room Homewood Suites is due to open next year directly across from the Residence Inn. Also, Vassar College has long planned a small, upper-upscale inn on its campus and, according to their CFO, the project is moving forward into the development phase; however, they do not anticipate opening until 2021. T-REX Capital Group recently broke ground on a 131-room Residence Inn at Bellefield across from the CIA, and is planning at least one more hotel in their mixed-use project, likely a Marriott Autograph Collection. However, timing for this second hotel remains uncertain and thus speculative

Other speculative projects include a potential mid-scale extended-stay hotel near Vassar College and a boutique hotel at CIA, as well as a redevelopment of the shuttered Mercury Grand Hotel to a Best Western and a redevelopment of the old Poughkeepsie Inn, but we did not include these projects in our projections due to their speculative nature.

Several other hotel projects are proposed for other areas in cities such as New Paltz and Newburgh, plus a Legoland Hotel in Goshen; however, due to the location across the Hudson River or further south, as well as the significantly greater distance from the site, these properties were not considered as additions to competitive supply. Based on the foregoing, we have included 537 rooms as additional inventory in our future estimates of room night supply.

Should additional competitive hotel rooms open, it could impact our projections for the subject.

In terms of new meeting space in Poughkeepsie, the proposed hotel at CIA, if developed, is expected to offer 5,000 to 10,000 square feet, and the Bellefield development is expected to construct a freestanding 10,000-square foot conference center adjacent to their second hotel. Both will be located in close proximity to the subject, and will compete for area meeting demand if developed. The Inn at Vassar College is expected to offer 2,500 square feet, but will predominantly accommodate demand from the College.

EFG/DRA Heritage, LLC 12

MARIST COLLEGE ONLINE SURVEY With the cooperation of Marist College, REVPAR International administered an online survey from April to May 2018. The survey was completed by three individuals at the College who were tasked with obtaining the requested data from all pertinent departments at the college and aggregating the results. We received the final response in early September 2018, five months after initially distributing the survey. The demand survey was undertaken in an effort to better understand the volume of Marist College-related business that is currently being generated and/or could prospectively be generated by the various departments. The highlights of our findings are provided below, while a copy of the survey results is provided in the Addenda.

It is important to note that the survey and the data provided do not represent, nor should they be construed as, a statistically valid survey sample. Rather, the data provides an (estimated) indication of the amount of demand for hotel rooms and conference space, both presently and prospectively, generated by Marist College departments based upon the responses to the survey. To this end, these findings should be viewed as “order of magnitude” rather than definitive. For our purposes, the data was used to suggest whether or not there is adequate demand for a hotel, the volume and frequency, the potential price threshold of the users, and the potential for Marist College personnel to use it, rather than definitively “prove” there is sufficient demand for a hotel at a specific price. Given that only three responses were provided, REVPAR asked for clarification/follow-up on a number of items, but has yet to receive any feedback from Marist College as of the issuing of this report. Given the challenges with this approach, as well as what was submitted in the survey responses, we are unable to verify the 16,500 to 18,000 room nights that Marist College states that it generates throughout the year. We do not dispute the amount, only that we cannot qualify or quantify it from the date provided.

As part of our research, we also reviewed the performance of several other university/college-owned hotels and conference centers similar in size and scope to Marist College as a check to the below survey results. With that said, the following is a summary of the survey results:

Hotel (Rooms) Demand  The three respondents report an estimated 80 to 100 events per year, but it’s unclear as to whether or not this is representative of all of the events generated at the College;  Based on specific data provided, we extrapolated and estimated the overall room night demand into a range of roughly 6,000 to 7,000 occupied room nights, prior to factoring in any notable latent demand as a result of a new nationally-branded hotel and conference center opening at The Village;  Hotel rates paid by the college vary between $126 to $200;  Average length of stay is 1 to 2 days;  The hotels reported in the competitive set along US-9 are the most used; and  The three most often cited decision factors in choosing a specific hotel by the decision maker was proximity to College or meeting place, quality of facilities, and price.

Banquet/Catering/Conference Demand  Most events are held on campus as they are convenient and cost effective;  Obstacles to booking events in Poughkeepsie include facility size too small and meeting space configuration;  Average event sizes range from 31 to 300 (average estimated at around 75 attendees), with one event exceeding 1,000 individuals;  F&B spend varies widely from $16 to $75; and  Most departments expect to hold more events in the future.

Just as important, our interviews suggest that there is a moderate to significant latent demand factor associated with the development of a conference center hotel at The Village. Latent demand is best

EFG/DRA Heritage, LLC 13 described as demand that is not currently present in the market, but would come if the hotel was constructed at a certain quality level, price point, and/or offer certain facilities, and/or if a specific brand-affiliation was offered. Given that we are unable to get more detailed data from Marist College at this juncture, we reached out to a few meeting planners in the area to discuss the meetings and events market. Most reported that while there is some concern (on the corporate side) with booking events into Poughkeepsie, a development of the quality and level of amenities of The Village would go a long way to change any negative perceptions. They did confirm that the size of most events in the area ranges from 50 to 200, with the average being around 75.

Overall, the survey’s results provided a modest baseline level of insight to the Marist College functions that are most likely to positively impact the proposed hotel.

SUPPLY AND DEMAND PROJECTIONS Future growth in room night demand for the competitive set is based on historical trends and future economic growth prospects of the local hotel market, which is primarily a function of the growth associated with educational, medical, commercial, and leisure travel. The following table summarizes our supply and demand growth projections for the defined competitive market.

Summary of Future Supply and Demand Growth Competitive Market Area Supply Demand Market Year Room Nights % Change Room Nights % Change Occupancy 2018 192,400 ‐‐ 144,200 ‐‐ 75% 2019 257,300 0 172,500 19.6% 67% 2020 303,300 17.9% 196,900 14.1% 65% 2021 384,000 26.6% 238,800 21.3% 62% 2022 388,400 1.1% 254,700 6.7% 66% 2023 388,400 0 262,300 3.0% 68% 2024 388,400 0 268,900 2.5% 69% 2025 388,400 0 268,900 0 69% CAG (1) 10.6% ‐‐ 9.3% ‐‐ ‐‐ Note: (1) Compound Annual Growth. Source: REVPAR International, Inc.

Between 2018 and 2025, room night supply is estimated to grow at a compound annual growth rate of 10.6 percent, due to the subject hotel and the previously-noted additions to supply, while demand is projected to increase at a compound annual rate of 9.3 percent, partly the result of latent demand associated with the opening of new supply. In addition, we expect underlying or organic growth to continue, given numerous growing sectors of demand in the local market, highlighted by several notable mixed-use projects, and construction at the Vassar Brothers Medical Center and the Mid-Hudson Regional Hospital, amongst other factors.

After peaking at 75 percent this year in 2018, occupancy is projected to decrease with the opening of the Hyatt Place later this year, and the subject hotel in 2021. However, occupancy is expected to begin to increase again in 2022, as demand continues to grow and the market absorbs the new supply. Occupancy is expected to return to the upper-60 percent level, and is anticipated to gradually recover and stabilize at 69 percent in 2024.

ZERO‐BASED BUILD‐UP MODEL (CONFERENCE CENTER) It should be noted that our zero-based build-up model focuses solely on the estimates of room night contribution from the group/catering segment; it does not attempt to quantify demand generated from the transient segments; this was done through a traditional market penetration analysis (as provided in the Addenda).

EFG/DRA Heritage, LLC 14

Our zero-based build-up model reviewed the demand contributions from both internal (demand related to Marist College) to external non-Marist College related demand in the group segment in a stabilized year in terms of the number of attendees, events, and hotel room nights. Our group projections were estimated from looking at a hypothetical schedule of conferences, meetings, and events that the proposed facility could realistically expect to capture. This approach allowed us to determine with more certainty the number and size of meeting rooms within the proposed conference center.

Based on our hypothetical zero-based build-up model, the following table summarizes the estimated number of events and corresponding attendees and occupied room nights by segment for the proposed hotel and conference center at The Village in a stabilized year of operation. For purposes of our analysis, we have determined the proposed hotel would open in the 1st quarter of 2021 and stabilize in its 3rd year of operation or 2023. It is important to note that these statistics represent group demand in the hotel that is utilizing the conference space versus those events that are booked as “guestrooms only” group demand.

Summary of Events and Attendees by Segment for a Stabilized Year of Operation Proposed 150‐unit Hotel, Poughkeepsie, NY Events Attendees Occupied Room Nights Segment # of Events % of Total # of Attendees % of Total Total ORN % of Total External 240 55% 17,980 55% 3,596 52% Internal (Marist) 195 45% 14,600 45% 3,285 48% Total 434 100% 32,580 100% 6,881 100% Source: REVPAR International, Inc.

PROPOSED FACILITY RECOMMENDATIONS In the course of our research, we considered branded and independent/boutique hotels, ranging from limited to full-service, for the subject site. Considering the current and planned products in the market area, coupled with the attributes of the subject site and the nature of demand occurring in the immediate market area, we determined that the subject hotel should be a branded, upscale, select-service product. Given the site’s location along US-9 and the proximity to and planned partnership with Marist College, the subject site appears best-suited for development of such a product.

Separately, we also considered an independent hotel either partially or fully owned by Marist College given the proximity, as well as the amount of annual demand they generate. Many universities and colleges across the county own hotels either on or near their campuses, and see significant benefits to hotel ownership such as a living laboratory for business students, a preferred location for meetings and visiting professors/speakers, and a location to further promote and market the College. The location at The Village presents a unique opportunity for the College; however, absent their involvement (ownership), which would further drive occupancy to the hotel and mitigate some of the risks for potential developers, we opted to recommend a Hilton Garden Inn at this time. Should Marist College want to pursue an independent hotel, we could alter our projections to investigate that option, and more closely review a set of university/college- owned hotels as comparables in the future.

Regardless, an upscale select-service brand such as Hilton Garden Inn is an excellent fit for the subject site based upon our analysis of the market area and the performance (especially pricing) of the existing hotels in the market. Benefits of the Hilton affiliation include brand recognition; a national marketing and advertising campaign; and inclusion in the Hilton Honors guest loyalty program. The Hilton Garden Inn brand will benefit from its upscale positioning and allow it to compete for room night demand emanating from travelers seeking high quality lodging facilities within the defined trade area, as well as draw demand to it from the greater market area.

In researching the attributes of the local market, we found that there is sufficient market support for an upscale hotel of 150 units. Moreover, based on our research and our zero-based build-up model presented above, we recommend that an 8,000-square foot conference center be included in the design. With the

EFG/DRA Heritage, LLC 15 foregoing in mind, the proposed 150-unit Hilton Garden Inn should be comprised of the following room mix:

 135 standard rooms (90 percent of room inventory);  12 junior suites (eight percent of room inventory);  Three one-bedroom suites (two percent of room inventory).

In addition, we recommend the following facilities and services should be available at the hotel:

 Roughly 8,000 square feet of meeting/conference space configured as follows: - One 4,500-square foot ballroom/meeting room (divisible by three) that will accommodate up to 300 seated guests; - One 1,000-square foot meeting room (divisible by two); - Two 500-square foot boardroom/breakout rooms; - Roughly 1,500 square feet of pre-function space; and - Small business center and dedicated Wi-Fi.  Restaurant and Pavilion Lounge;  24-hour complimentary hot tea/coffee station;  An outdoor gazebo (with gas fireplace) and event lawn area for social events;  Complimentary shuttle service to local corporations, Marist College, and restaurants and amenities within a three-mile radius;  Business center;  An indoor swimming pool to complement the significant level of leisure demand;  Fitness center;  Guest laundry facility and valet service;  Complimentary wired and wireless high-speed internet access throughout the hotel; and  Adequate free guest parking.

Guestrooms at the subject Hilton Garden Inn should be approximately 65 percent king-bedded rooms and 35 percent double queen-bedded rooms. Specifically, the complement of king-bedded rooms is recommended to serve the mid-week commercial demand that travels throughout the market, while double queens will be suited for families, SMERF, weekend leisure, and event-driven group-based demand in the market. Due to the select-service orientation of the proposed hotel, it is assumed that in-room amenities will include a computer-ready worktable, a flat-screen TV, coffee maker, mirrors, artwork, sitting area with easy chair and ottoman or sofa bed, telephones with voicemail, a clock radio with smartphone docking station, hair dryer, bathroom toiletries, an iron with ironing board, and lamps. An appropriate portion of the units will be handicapped accessible. Along with a restaurant and bar, the hotel will offer the “Pavilion Pantry”, where travelers can purchase snacks, beverages, and sundries.

We believe that the foregoing facilities and amenities will position the Hilton Garden Inn to compete effectively in the subject market.

ESTIMATED OPERATING PERFORMANCE Based on the foregoing assumptions, REVPAR International prepared statements of estimated operating results for the hotel. For the purpose of this analysis, we assumed that the hotel would open in 1st quarter 2021 and prepared the projections on a calendar year basis.

EFG/DRA Heritage, LLC 16

Proposed 150‐unit Hilton Garden Inn, Poughkeepsie, NY Projected Operating Results 2021 – 2026 Average EBITDA After Reserve Market Total Year Occupancy Daily Rate RevPAR Occupancy Revenue $ Amount % (1) Stabilized Year (2) 76% $146.00 $110.96 ‐‐ $7,276,000 $1,936,000 26.6% 2021 57% $154.00 $87.78 62% $5,813,000 $986,000 17.0% 2022 71% $164.00 $116.44 66% $7,644,000 $1,947,000 25.5% 2023 76% $169.00 $128.44 68% $8,424,000 $2,278,000 27.0% 2024 76% $174.00 $132.24 69% $8,674,000 $2,344,000 27.0% 2025 76% $179.00 $136.04 69% $8,924,000 $2,406,000 27.0% 2026 76% $184.00 $139.84 69% $9,177,000 $2,465,000 26.9% CAG (3) 6.0% 3.6% 9.8% ‐‐ 9.6% 20.1% ‐‐ Notes: (1) Average daily rate has been rounded to the nearest dollar. (2) Presented in 2018 dollars. (3) Compound Annual Growth. (4) CAG is based on occupied room nights. Source: REVPAR International, Inc.

Included in the Addenda is a copy of the market penetration analysis from which our occupancy estimates were derived, as well as complete financial pro-formas for the hotel.

Other significant assumptions pertaining to the above projections include the following:

 The hotel will be operated in a competent and efficient manner. To reflect this, we have deducted a base management fee of 3.0 percent of total revenue.  Affiliation with Hilton Garden Inn throughout the projection period. To reflect this, we have deducted the various franchise fees from total revenue which includes a royalty fee, marketing/program fees and miscellaneous fees. Fees for the loyalty program are included under sales and marketing expense;  A sales and marketing program would commence roughly three to four months prior to opening;  Insurance expenses are based on financial comparables;  Real estate taxes are based on current assessments of similar hotels in Poughkeepsie and the surrounding area and current tax rates for real estate; and,  A 4.0 percent reserve for replacement (of FF&E) has been deducted in accordance with industry standards.

Please note that there are other significant assumptions underlying these estimates.

NEXT STEPS Now that the market study has been completed, you may require further assistance in bringing the project to fruition. REVPAR International stands ready to act as an advisor on your behalf on any pertinent owner- related activities. Examples of these other advisory services include:

 Preparing ROI analysis based on financing structure and cost of construction;  Identification of and negotiation with potential hotel operators or brands;  Assistance in negotiating hotel management and franchise agreements;  Ongoing technical advisory services;  Assistance in management/ownership structure; and  Asset management/owner’s representative services.

These services can be defined and explained at the appropriate time. Once the scope of work is defined, we can provide our professional fees, which can be fixed, hourly, or a combination thereof, depending upon the nature of the work.

EFG/DRA Heritage, LLC 17

Please note that the estimates provided in this letter are preliminary in nature, and subject to change based on additional or new information. This letter has been prepared primarily to provide you an opinion as to the subject’s future operating performance under certain assumptions. The document was prepared primarily for your internal use, as it is an abbreviated letter report presenting limited information associated with the due diligence undertaken by our firm. As such, we caution you as to its distribution to 3rd parties, particularly any potential sources of financing.

Please feel free to contact us if you have any additional questions or comments.

Sincerely, REVPAR International, Inc.

ADDENDA

Future Supply Map MARKET PENETRATION ANALYSIS Proposed Hilton Garden Inn Poughkeepsie, NY

Year 2021 2022 2023 2024 2025 2026 2027

Available Rooms in Comp. Set 1,052 1,064 1,064 1,064 1,064 1,064 1,064

Available Room Nights Subject Hotel 54,750 54,750 54,750 54,750 54,750 54,750 54,750 Total Market 383,980 388,360 388,360 388,360 388,360 388,360 388,360 Subject's Fair Share 14.3% 14.1% 14.1% 14.1% 14.1% 14.1% 14.1%

Corporate Market Mix Market Mix Market Mix Market Mix Market Mix Market Mix Market Mix Total Segment Demand 107,300 114,400 117,800 120,700 120,700 120,700 120,700 Fair Share of Demand 15,299 16,128 16,607 17,016 17,016 17,016 17,016 Penetration Rate 85% 96% 97% 94% 94% 94% 94% Demand Captured 13,000 42% 15,500 40% 16,000 39% 16,000 39% 16,000 39% 16,000 39% 16,000 39%

Leisure Total Segment Demand 59,700 63,900 65,800 67,400 67,400 67,400 67,400 Fair Share of Demand 8,512 9,008 9,276 9,502 9,502 9,502 9,502 Penetration Rate 100% 111% 119% 116% 116% 116% 116% Demand Captured 8,500 27% 10,000 26% 11,000 27% 11,000 27% 11,000 27% 11,000 27% 11,000 27%

Group Total Segment Demand 36,800 39,400 40,500 41,500 41,500 41,500 41,500 Fair Share of Demand 5,247 5,555 5,710 5,851 5,851 5,851 5,851 Penetration Rate 124% 171% 184% 180% 180% 180% 180% Demand Captured 6,500 21% 9,500 24% 10,500 25% 10,500 25% 10,500 25% 10,500 25% 10,500 25%

Extended Stay Total Segment Demand 35,000 37,100 38,200 39,100 39,100 39,100 39,100 Fair Share of Demand 4,990 5,230 5,385 5,512 5,512 5,512 5,512 Penetration Rate 60% 76% 75% 73% 73% 73% 73% Demand Captured 3,000 10% 4,000 10% 4,000 10% 4,000 10% 4,000 10% 4,000 10% 4,000 10%

Total Demand Total Market Demand 238,800 254,700 262,300 268,900 268,900 268,900 268,900 Fair Share of Demand 34,049 35,907 36,978 37,909 37,909 37,909 37,909 Penetration Overall 91% 100% 109% 100% 112% 100% 109% 100% 109% 100% 109% 100% 109% 100% Demand Captured 31,000 39,000 41,500 41,500 41,500 41,500 41,500

Estimated Subject Occ. 57% 71% 76% 76% 76% 76% 76% Estimated Market Occ. 62% 66% 68% 69% 69% 69% 69% Demand Estimates-Attendees for a Stabilized Year

Event Types: Administrative (A), Workshop/Seminar (WS), Conference/Meeting (C), Breakfast/Luncheons, (L), Meeting/Presentation/Program (MP), Corporate Meetings(CM), Regional Meeting (RM), Youth Sports (YS), Social Event(S), Weddings (W), Training (T)

Month January February March April May June July August September October November December Total Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Attendees Type Day Period Week 1 External 80 L 150 CM, RM 200 CM, RM 250 CM, S 125 RM 225 RM, L 50 CM 225 CM, S 100 CM 150 RM, S 300 CM, RM 250 S, CM 2,105 Internal 175 WS 275 C, A 250 MP, L 200 C,T 250 C, T 200 T, L 50 T, S 100 A 200 YS, T 200 MP, C 200 T, WS 175 S, L 2,275 Week 2 External 50 CM, L 50 RM 200 CM, T 300 RM, T 350 RM, CM 200 RM, S 175 RM, L 200 YS, T 125 YS, CM 150 CM 300 L 200 CM, S, L 2,300 Internal 125 T, WS 150 S, WS 125 MP, L 50 MP, WS 125 T, WS 150 T 50 MP, L 50 A 125 WS, L 125 A, T 150 T, MP 125 S, WS 1,350 Week 3 External 75 L, CM 75 CM, RM 150 CM, RM 125 CM, T 250 RM 200 RM, L 150 CM 150 YS 375 CM 150 RM, L 250 CM, RM 225 S, CM 2,175 Internal 150 A 150 C, WS 200 MP, A 100 C, T 225 C, L 150 T, L 50 T, S 50 S, T 150 A, T 200 MP, C 200 T, WS 125 S, L 1,750 Week 4 External 75 CM 200 RM, L 200 CM 150 RM 150 L 50 CM 50 T, CM 250 CM 300 YS, S 300 RM, T 375 RM, CM 250 S, L 2,350 Internal 75 A, WS 125 T, A 150 S, A 50 T, WS 600 WS, MP 50 MP, T 50 T, L 50 MP, A 200 A, T 225 L, T 375 A 225 S, L 2,175 Week 5 External 275 CM 50 L, T 100 RM, L 50 S 475 Internal 200 S, T 50 WC, T 450 C, WS 50 S 750

Monthly Total - Day Period 805 1,175 1,950 1,225 2,075 1,325 625 1,075 2,125 1,500 2,150 1,675 17,705 % 4.5% 6.6% 11.0% 6.9% 11.7% 7.5% 3.5% 6.1% 12.0% 8.5% 12.1% 9.5% 100.0%

Evening Period Week 1 External 125 S 150 CM, T 150 RM 150 CM,S 100 W 100 CM, S 125 W 250 T, S 175 RM 125 W 300 CM, L 125 W 1,875 Internal 50 W 300 T, L 100 WS, A 150 S 375 A, S 50 L, A 50 S, T 50 A 25 S, T 100 S, T 250 T 50 S, T 1,550 Week 2 External 150 S, CM 125 W 175 C, S 175 CM 175 T, CM 100 W 150 S, RM 125 W 150 S, RM 325 RM 125 W 250 CM, S 2,025 Internal 50 T, A 175 RM 100 L, WS 175 A, WS 250 MP, A 50 MP, S 50 T, S 50 A, S 25 T, S 250 T 100 S 300 S 1,575 Week 3 External 100 W 125 S, RM 200 CM 125 W 150 CM 125 W 100 T, CM 175 RM, S 175 S 175 T, CM 225 CM, S 300 S 1,975 Internal 175 A, T 150 A, C 150 WS 75 C 50 C, A 50 S 50 C, A 50 -- 150 S 200 RM 275 S, T 275 S, A 1,650 Week 4 External 125 S 125 RM 125 W 275 RM 125 W 50 RM 125 W 125 W 125 W 175 CM, S 225 CM 375 S 1,975 Internal 150 S, T 150 T 50 A 50 S 50 MP 50 T, WS 50 T 50 A 225 A, S 50 S, T 250 A 250 S 1,375 Week 5 External 275 CM 50 T, S 350 RM 50 S 725 Internal 50 RM 50 T 0 -- 50 S 150

thly Total - Evening Period 925 1,300 1,375 1,175 1,275 675 700 875 1,400 1,400 1,750 2,025 14,875 % 6.2% 8.7% 9.2% 7.9% 8.6% 4.5% 4.7% 5.9% 9.4% 9.4% 11.8% 13.6% 100.0%

Monthly Total - Overall 1,730 2,475 3,325 2,400 3,350 2,000 1,325 1,950 3,525 2,900 3,900 3,700 32,580 % 5.3% 7.6% 10.2% 7.4% 10.3% 6.1% 4.1% 6.0% 10.8% 8.9% 12.0% 11.4% 100.00%

Totals Total Attendees % Day % Evening % External 17,980 55% 9,405 52% 8,575 48% Internal 14,600 45% 8,300 57% 6,300 43% Total 32,580 100% 17,705 54% 14,875 46% Demand Estimates-Events for a Stabilized Year

Event Types: Administrative (A), Workshop/Seminar (WS), Conference/Meeting (C), Breakfast/Luncheons, (L), Meeting/Presentation/Program (MP), Corporate Meetings(CM), Regional Meeting (RM), Youth Sports (YS), Social Event(S), Weddings (W), Training (T)

Month January February March April May June July August September October November December Total Events Type Events Type Events Type Events Type Events Type Events Type Events Type Events Type Events Type Events Type Events Type Events Type Day Period Week 1 External 1 L 2 CM, RM 3 CM, RM 3 CM, S 2 RM 3 RM, L 1 CM 3 CM, S 1 CM 2 RM, S 4 CM, RM 3 S, CM 28 Internal 2 WS 4 C, A 3 MP, L 3 C,T 3 C, T 3 T, L 1 T, S 1 A 3 YS, T 3 MP, C 3 T, WS 2 S, L 30 Week 2 External 1 CM, L 1 RM 3 CM, T 4 RM, T 5 RM, CM 3 RM, S 2 RM, L 3 YS, T 2 YS, CM 2 CM 4 L 3 CM, S, L 31 Internal 2 T, WS 2 S, WS 2 MP, L 1 MP, WS 2 T, WS 2 T 1 MP, L 1 A 2 WS, L 2 A, T 2 T, MP 2 S, WS 18 Week 3 External 1 L, CM 1 CM, RM 2 CM, RM 2 CM, T 3 RM 3 RM, L 2 CM 2 YS 5 CM 2 RM, L 3 CM, RM 3 S, CM 29 Internal 2 A 2 C, WS 3 MP, A 1 C, T 3 C, L 2 T, L 1 T, S 1 S, T 2 A, T 3 MP, C 3 T, WS 2 S, L 23 Week 4 External 1 CM 3 RM, L 3 CM 2 RM 2 L 1 CM 1 T, CM 3 CM 4 YS, S 4 RM, T 5 RM, CM 3 S, L 31 Internal 1 A, WS 2 T, A 2 S, A 1 T, WS 8 WS, MP 1 MP, T 1 T, L 1 MP, A 3 A, T 3 L, T 5 A 3 S, L 29 Week 5 External 4CM 1 L, T 1 RM, L 1S6 Internal 3 S, T 1 WC, T 6 C, WS 1S10

Monthly Total - Day Period 11 16 26 16 28 18 8 14 28 20 29 22 236 % 4.5% 6.6% 11.0% 6.9% 11.7% 7.5% 3.5% 6.1% 12.0% 8.5% 12.1% 9.5% 100.0%

Evening Period Week 1 External 2 S 2 CM, T 2 RM 2 CM,S 1 W 1 CM, S 2 W 3 T, S 2 RM 2 W 4 CM, L 2 W 25 Internal 1 W 4 T, L 1 WS, A 2 S 5 A, S 1 L, A 1 S, T 1 A 0 S, T 1 S, T 3 T 1 S, T 21 Week 2 External 2 S, CM 2 W 2 C, S 2 CM 2 T, CM 1 W 2 S, RM 2 W 2 S, RM 4 RM 2 W 3 CM, S 27 Internal 1 T, A 2 RM 1 L, WS 2 A, WS 3 MP, A 1 MP, S 1 T, S 1 A, S 0 T, S 3 T 1 S 4 S 21 Week 3 External 1 W 2 S, RM 3 CM 2 W 2 CM 2 W 1 T, CM 2 RM, S 2 S 2 T, CM 3 CM, S 4 S 26 Internal 2 A, T 2 A, C 2 WS 1 C 1 C, A 1 S 1 C, A 1 -- 2 S 3 RM 4 S, T 4 S, A 22 Week 4 External 2 S 2 RM 2 W 4 RM 2 W 1 RM 2 W 2 W 2 W 2 CM, S 3 CM 5 S 26 Internal 2 S, T 2 T 1 A 1 S 1 MP 1 T, WS 1 T 1 A 3 A, S 1 S, T 3 A 3 S 18 Week 5 External 4CM 1 T, S 5RM 1S10 Internal 1RM 1T 0-- 1S2

Monthly Total - Evening Period 12 17 18 16 17 9 9 12 19 19 23 27 198 % 6.2% 8.7% 9.2% 7.9% 8.6% 4.5% 4.7% 5.9% 9.4% 9.4% 11.8% 13.6% 100.0%

Monthly Total - Overall 23 33 44 32 45 27 18 26 47 39 52 49 434 % 5.3% 7.6% 10.2% 7.4% 10.3% 6.1% 4.1% 6.0% 10.8% 8.9% 12.0% 11.4% 100.0% Monthly Total - Overall Utilization Days 17 25 33 24 34 20 13 20 35 29 39 37 326

Totals Day % Evening % External 240 55% 125 52% 114 48% Internal 195 45% 111 57% 84 43% Total 434 100% 236 54% 198 46% Demand Estimates-Room Nights for a Stabilized Year

Event Types: Administrative (A), Workshop/Seminar (WS), Conference/Meeting (C), Breakfast/Luncheons, (L), Meeting/Presentation/Program (MP), Corporate Meetings(CM), Regional Meeting (RM), Youth Sports (YS), Social Event(S), Weddings (W), Training (T)

Month January February March April May June July August September October November December Total Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Room Nights Type Day Period Week 1 External 16 L 30 CM, RM 40 CM, RM 50 CM, S 25 RM 45 RM, L 10 CM 45 CM, S 20 CM 30 RM, S 60 CM, RM 50 S, CM 421 Internal 39 WS 62 C, A 56 MP, L 45 C,T 56 C, T 45 T, L 11 T, S 23 A 45 YS, T 45 MP, C 45 T, WS 39 S, L 512 Week 2 External 10 CM, L 10 RM 40 CM, T 60 RM, T 70 RM, CM 40 RM, S 35 RM, L 40 YS, T 25 YS, CM 30 CM 60 L 40 CM, S, L 460 Internal 28 T, WS 34 S, WS 28 MP, L 11 MP, WS 28 T, WS 34 T 11 MP, L 11 A 28 WS, L 28 A, T 34 T, MP 28 S, WS 304 Week 3 External 15 L, CM 15 CM, RM 30 CM, RM 25 CM, T 50 RM 40 RM, L 30 CM 30 YS 75 CM 30 RM, L 50 CM, RM 45 S, CM 435 Internal 34 A 34 C, WS 45 MP, A 23 C, T 51 C, L 34 T, L 11 T, S 11 S, T 34 A, T 45 MP, C 45 T, WS 28 S, L 394 Week 4 External 15 CM 40 RM, L 40 CM 30 RM 30 L 10 CM 10 T, CM 50 CM 60 YS, S 60 RM, T 75 RM, CM 50 S, L 470 Internal 17 A, WS 28 T, A 34 S, A 11 T, WS 135 WS, MP 11 MP, T 11 T, L 11 MP, A 45 A, T 51 L, T 84 A 51 S, L 489 Week 5 External 55 CM 10 L, T 20 RM, L 10 S 95 Internal 45 S, T 11 WC, T 101 C, WS 11 S 169

Monthly Total - Day Period 174 253 413 255 445 280 130 221 453 319 453 353 3,749 % 4.6% 6.7% 11.0% 6.8% 11.9% 7.5% 3.5% 5.9% 12.1% 8.5% 12.1% 9.4% 100.0%

Evening Period Week 1 External 25 S 30 CM, T 30 RM 30 CM,S 20 W 20 CM, S 25 W 50 T, S 35 RM 25 W 60 CM, L 25 W 375 Internal 11 W 68 T, L 23 WS, A 34 S 84 A, S 11 L, A 11 S, T 11 A 6 S, T 23 S, T 56 T 11 S, T 349 Week 2 External 30 S, CM 25 W 35 C, S 35 CM 35 T, CM 20 W 30 S, RM 25 W 30 S, RM 65 RM 25 W 50 CM, S 405 Internal 11 T, A 39 RM 23 L, WS 39 A, WS 56 MP, A 11 MP, S 11 T, S 11 A, S 6 T, S 56 T 23 S 68 S 354 Week 3 External 20 W 25 S, RM 40 CM 25 W 30 CM 25 W 20 T, CM 35 RM, S 35 S 35 T, CM 45 CM, S 60 S 395 Internal 39 A, T 34 A, C 34 WS 17 C 11 C, A 11 S 11 C, A 11 -- 34 S 45 RM 62 S, T 62 S, A 371 Week 4 External 25 S 25 RM 25 W 55 RM 25 W 10 RM 25 W 25 W 25 W 35 CM, S 45 CM 75 S 395 Internal 34 S, T 34 T 11 A 11 S 11 MP 11 T, WS 11 T 11 A 51 A, S 11 S, T 56 A 56 S 309 Week 5 External 55 CM 10 T, S 70 RM 10 S 145 Internal 11 RM 11 T 0-- 11 S 34

Monthly Total - Evening Period 196 279 286 246 273 141 145 180 291 295 372 428 3,133 % 6.2% 8.9% 9.1% 7.9% 8.7% 4.5% 4.6% 5.7% 9.3% 9.4% 11.9% 13.7% 100.0%

Monthly Total - Overall 370 532 699 501 718 421 275 401 744 614 825 781 6,881 % 5.4% 7.7% 10.2% 7.3% 10.4% 6.1% 4.0% 5.8% 10.8% 8.9% 12.0% 11.3% 100.00%

Totals Day % Evening % External 3,596 52% 1,881 52% 1,715 48% Internal 3,285 48% 1,868 57% 1,418 43% Total 6,881 100% 3,749 54% 3,133 46% Summary Operating Statement (in a Stabilized Year) Proposed Hilton Garden Inn, Poughkeepsie, NY

For a Representative Year in Current Value Dollars

Number of Rooms: 150 Annual # of Available Rooms: 54,750 Annual occupancy rate: 76% Annual # of Occupied Rooms 41,610 Average Daily Rate $146.00 RevPAR $110.96

Amount per Amount per Amount Ratio Avail. Rms. Occ. Rms. DEPARTMENTAL REVENUES Rooms $6,075,000 83.5% $40,500 $146.00 Food & Beverage $1,137,000 15.6% $7,580 $27.33 Other Operated Departments $64,000 0.9% $426 $1.54 TOTAL REVENUE $7,276,000 100.0% $48,506 $174.86

DEPARTMENTAL EXPENSES (1) Rooms $1,306,000 21.5% $8,707 $31.39 Food and Beverage $853,000 75.0% $5,687 $20.50 Other Operated Departments $85,000 132.8% $567 $2.04 TOTAL DEPARTMENTAL EXPENSES $2,244,000 30.8% $14,961 $53.93

TOTAL DEPARTMENTAL INCOME $5,032,000 69.2% $33,545 $120.93

UNDISTRIBUTED OPERATING EXPENSES Administrative and General $525,000 7.2% $3,500 $12.62 IT & Telecommunications $38,000 0.5% $253 $0.91 Sales and Marketing $1,013,000 13.9% $6,753 $24.35 Property Operations and Maintenance $285,000 3.9% $1,900 $6.85 Utilities $210,000 2.9% $1,400 $5.05 TOTAL UNDISTRIBUTED EXPENSES $2,071,000 28.5% $13,806 $49.77

GROSS OPERATING PROFIT $2,961,000 40.7% $19,739 $71.16

MANAGEMENT FEES $218,000 3.0% $1,453 $5.24

INCOME BEFORE FIXED CHARGES $2,743,000 37.7% $18,286 $65.92

FIXED CHARGES Property and Other Taxes $471,000 6.5% $3,140 $11.32 Insurance $45,000 0.6% $300 $1.08 TOTAL FIXED CHARGED $516,000 7.1% $3,440 $12.40

NET OPERATING INCOME $2,227,000 30.6% $14,846 $53.52

LESS: REPLACEMENT RESERVES $291,000 4.0% $1,940 $6.99

ADJUSTED NET OPERATING INCOME $1,936,000 26.6% $12,906 $46.53

Notes: (1) Departmental ratios reflect a percentage of department expenses to department revenues and will not add to total department expe (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization. Please note that columns may not add due to rounding. Summary Operating Statement Proposed Hilton Garden Inn, Poughkeepsie, NY

Year 1 Year 2 Year 3 Fiscal Year: 2021 2022 2023 Number of Rooms: 150 150 150 Annual # of Available Rooms: 54,750 54,750 54,750 Annual occupancy rate: 57% 71% 76% Annual # of Occupied Rooms 31,208 38,873 41,610 Average Daily Rate $154.00 $164.00 $169.00 RevPAR $87.78 $116.44 $128.44

Amount Ratio PAR POR Amount Ratio PAR POR Amount Ratio PAR POR DEPARTMENTAL REVENUES Rooms $4,806,000 82.7% $32,040 $154.00 $6,375,000 83.4% $42,500 $164.00 $7,032,000 83.5% $46,880 $169.00 Food & Beverage $938,000 16.1% $6,253 $30.06 $1,197,000 15.7% $7,980 $30.79 $1,318,000 15.6% $8,787 $31.68 Other Operated Departments $69,000 1.2% $460 $2.21 $72,000 0.9% $480 $1.85 $74,000 0.9% $493 $1.78 TOTAL REVENUE $5,813,000 100.0% $38,753 $186.27 $7,644,000 100.0% $50,960 $196.64 $8,424,000 100.0% $56,160 $202.45

DEPARTMENTAL EXPENSES (1) Rooms $1,095,000 22.8% $7,300 $35.09 $1,380,000 21.6% $9,200 $35.50 $1,514,000 21.5% $10,093 $36.39 Food and Beverage $780,000 83.2% $5,200 $24.99 $918,000 76.7% $6,120 $23.62 $989,000 75.0% $6,593 $23.77 Other Operated Departments $53,000 76.8% $353 $1.70 $55,000 76.4% $367 $1.41 $57,000 77.0% $380 $1.37 TOTAL DEPARTMENTAL EXPENSES $1,928,000 33.2% $12,853 $61.78 $2,353,000 30.8% $15,687 $60.53 $2,560,000 30.4% $17,066 $61.52

TOTAL DEPARTMENTAL INCOME $3,885,000 66.8% $25,900 $124.49 $5,291,000 69.2% $35,273 $136.11 $5,864,000 69.6% $39,094 $140.93

UNDISTRIBUTED OPERATING EXPENSES Administrative and General $602,000 10.4% $4,013 $19.29 $606,000 7.9% $4,040 $15.59 $609,000 7.2% $4,060 $14.64 IT & Telecommunications $44,000 0.8% $293 $1.41 $44,000 0.6% $293 $1.13 $44,000 0.5% $293 $1.06 Sales and Marketing $935,000 16.1% $6,233 $29.96 $1,102,000 14.4% $7,347 $28.35 $1,173,000 13.9% $7,820 $28.19 Property Operations and Maintenance $175,000 3.0% $1,167 $5.61 $255,000 3.3% $1,700 $6.56 $330,000 3.9% $2,200 $7.93 Utilities $172,000 3.0% $1,147 $5.51 $221,000 2.9% $1,473 $5.69 $243,000 2.9% $1,620 $5.84 TOTAL UNDISTRIBUTED EXPENSES $1,928,000 33.2% $12,853 $61.78 $2,228,000 29.1% $14,853 $57.32 $2,399,000 28.5% $15,993 $57.65

GROSS OPERATING PROFIT $1,957,000 33.7% $13,047 $62.71 $3,063,000 40.1% $20,420 $78.80 $3,465,000 41.1% $23,101 $83.27

MANAGEMENT FEES $174,000 3.0% $1,160 $5.58 $229,000 3.0% $1,527 $5.89 $252,000 3.0% $1,680 $6.06

INCOME BEFORE FIXED CHARGES $1,783,000 30.7% $11,887 $57.13 $2,834,000 37.1% $18,893 $72.91 $3,213,000 38.1% $21,421 $77.22

FIXED CHARGES Property and Other Taxes $515,000 8.9% $3,433 $16.50 $530,000 6.9% $3,533 $13.63 $546,000 6.5% $3,640 $13.12 Insurance $49,000 0.8% $327 $1.57 $51,000 0.7% $340 $1.31 $52,000 0.6% $347 $1.25 TOTAL FIXED CHARGED $564,000 9.7% $3,760 $18.07 $581,000 7.6% $3,873 $14.95 $598,000 7.1% $3,987 $14.37

NET OPERATING INCOME $1,219,000 21.0% $8,127 $39.06 $2,253,000 29.5% $15,020 $57.96 $2,615,000 31.0% $17,434 $62.85

LESS: REPLACEMENT RESERVES $233,000 4.0% $1,553 $7.47 $306,000 4.0% $2,040 $7.87 $337,000 4.0% $2,247 $8.10

ADJUSTED NET OPERATING INCOME (2) $986,000 17.0% $6,574 $31.59 $1,947,000 25.5% $12,980 $50.09 $2,278,000 27.0% $15,187 $54.75

Notes: (1) Departmental ratios reflect a percentage of department expenses to department revenues and will not add to total department expenses. (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization. Please note that columns may not add due to rounding. Source: REVPAR International, Inc. Summary Operating Statement Proposed Hilton Garden Inn, Poughkeepsie, NY

Year 4 Year 5 Year 6 Fiscal Year: 2024 2025 2026 Number of Rooms: 150 150 150 Annual # of Available Rooms: 54,750 54,750 54,750 Annual occupancy rate: 76% 76% 76% Annual # of Occupied Rooms 41,610 41,610 41,610 Average Daily Rate $174.00 $179.00 $184.00 RevPAR $132.24 $136.04 $139.84

Amount Ratio PAR POR Amount Ratio PAR POR Amount Ratio PAR POR DEPARTMENTAL REVENUES Rooms $7,240,000 83.5% $48,267 $174.00 $7,448,000 83.5% $49,653 $179.00 $7,656,000 83.4% $51,040 $183.99 Food & Beverage $1,358,000 15.7% $9,053 $32.64 $1,398,000 15.7% $9,320 $33.60 $1,440,000 15.7% $9,600 $34.61 Other Operated Departments $76,000 0.9% $507 $1.83 $78,000 0.9% $520 $1.87 $81,000 0.9% $540 $1.95 TOTAL REVENUE $8,674,000 100.0% $57,827 $208.46 $8,924,000 100.0% $59,493 $214.47 $9,177,000 100.0% $61,180 $220.55

DEPARTMENTAL EXPENSES (1) Rooms $1,560,000 21.5% $10,400 $37.49 $1,606,000 21.6% $10,707 $38.60 $1,655,000 21.6% $11,033 $39.77 Food and Beverage $1,018,000 75.0% $6,787 $24.47 $1,049,000 75.0% $6,993 $25.21 $1,080,000 75.0% $7,200 $25.96 Other Operated Departments $58,000 76.3% $387 $1.39 $60,000 76.9% $400 $1.44 $62,000 76.5% $413 $1.49 TOTAL DEPARTMENTAL EXPENSES $2,636,000 30.4% $17,574 $63.35 $2,715,000 30.4% $18,100 $65.25 $2,797,000 30.5% $18,646 $67.22

TOTAL DEPARTMENTAL INCOME $6,038,000 69.6% $40,253 $145.11 $6,209,000 69.6% $41,393 $149.22 $6,380,000 69.5% $42,534 $153.33

UNDISTRIBUTED OPERATING EXPENSES Administrative and General $627,000 7.2% $4,180 $15.07 $646,000 7.2% $4,307 $15.53 $665,000 7.2% $4,433 $15.98 IT & Telecommunications $45,000 0.5% $300 $1.08 $47,000 0.5% $313 $1.13 $48,000 0.5% $320 $1.15 Sales and Marketing $1,208,000 13.9% $8,053 $29.03 $1,243,000 13.9% $8,287 $29.87 $1,279,000 13.9% $8,527 $30.74 Property Operations and Maintenance $340,000 3.9% $2,267 $8.17 $351,000 3.9% $2,340 $8.44 $361,000 3.9% $2,407 $8.68 Utilities $251,000 2.9% $1,673 $6.03 $258,000 2.9% $1,720 $6.20 $266,000 2.9% $1,773 $6.39 TOTAL UNDISTRIBUTED EXPENSES $2,471,000 28.5% $16,473 $59.38 $2,545,000 28.5% $16,967 $61.16 $2,619,000 28.5% $17,460 $62.94

GROSS OPERATING PROFIT $3,567,000 41.1% $23,780 $85.72 $3,664,000 41.1% $24,426 $88.06 $3,761,000 41.0% $25,074 $90.39

MANAGEMENT FEES $260,000 3.0% $1,733 $6.25 $267,000 3.0% $1,780 $6.42 $275,000 3.0% $1,833 $6.61

INCOME BEFORE FIXED CHARGES $3,307,000 38.1% $22,047 $79.48 $3,397,000 38.1% $22,646 $81.64 $3,486,000 38.0% $23,241 $83.78

FIXED CHARGES Property and Other Taxes $562,000 6.5% $3,747 $13.51 $579,000 6.5% $3,860 $13.91 $597,000 6.5% $3,980 $14.35 Insurance $54,000 0.6% $360 $1.30 $55,000 0.6% $367 $1.32 $57,000 0.6% $380 $1.37 TOTAL FIXED CHARGED $616,000 7.1% $4,107 $14.80 $634,000 7.1% $4,227 $15.24 $654,000 7.1% $4,360 $15.72

NET OPERATING INCOME $2,691,000 31.0% $17,940 $64.67 $2,763,000 31.0% $18,419 $66.40 $2,832,000 30.9% $18,881 $68.06

LESS: REPLACEMENT RESERVES $347,000 4.0% $2,313 $8.34 $357,000 4.0% $2,380 $8.58 $367,000 4.0% $2,447 $8.82

ADJUSTED NET OPERATING INCOME (2) $2,344,000 27.0% $15,627 $56.33 $2,406,000 27.0% $16,039 $57.82 $2,465,000 26.9% $16,434 $59.24

Notes: (1) Departmental ratios reflect a percentage of department expenses to department revenues and will not add to total department expenses. (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization. Please note that columns may not add due to rounding. Source: REVPAR International, Inc. Summary Operating Statement Proposed Hilton Garden Inn, Poughkeepsie, NY

Year 7 Year 8 Year 9 Fiscal Year: 2027 2028 2029 Number of Rooms: 150 150 150 Annual # of Available Rooms: 54,750 54,750 54,750 Annual occupancy rate: 76% 76% 76% Annual # of Occupied Rooms 41,610 41,610 41,610 Average Daily Rate $190.00 $196.00 $201.00 RevPAR $144.40 $148.96 $152.76

Amount Ratio PAR POR Amount Ratio PAR POR Amount Ratio PAR POR DEPARTMENTAL REVENUES Rooms $7,906,000 83.5% $52,707 $190.00 $8,156,000 83.5% $54,373 $196.01 $8,364,000 83.4% $55,760 $201.01 Food & Beverage $1,483,000 15.7% $9,887 $35.64 $1,528,000 15.6% $10,187 $36.72 $1,574,000 15.7% $10,493 $37.83 Other Operated Departments $83,000 0.9% $553 $1.99 $85,000 0.9% $567 $2.04 $88,000 0.9% $587 $2.11 TOTAL REVENUE $9,472,000 100.0% $63,147 $227.64 $9,769,000 100.0% $65,127 $234.78 $10,026,000 100.0% $66,840 $240.95

DEPARTMENTAL EXPENSES (1) Rooms $1,704,000 21.6% $11,360 $40.95 $1,755,000 21.5% $11,700 $42.18 $1,808,000 21.6% $12,053 $43.45 Food and Beverage $1,112,000 75.0% $7,413 $26.72 $1,146,000 75.0% $7,640 $27.54 $1,180,000 75.0% $7,867 $28.36 Other Operated Departments $63,000 75.9% $420 $1.51 $65,000 76.5% $433 $1.56 $67,000 76.1% $447 $1.61 TOTAL DEPARTMENTAL EXPENSES $2,879,000 30.4% $19,193 $69.19 $2,966,000 30.4% $19,773 $71.28 $3,055,000 30.5% $20,367 $73.42

TOTAL DEPARTMENTAL INCOME $6,593,000 69.6% $43,954 $158.45 $6,803,000 69.6% $45,354 $163.49 $6,971,000 69.5% $46,473 $167.53

UNDISTRIBUTED OPERATING EXPENSES Administrative and General $685,000 7.2% $4,567 $16.46 $706,000 7.2% $4,707 $16.97 $727,000 7.3% $4,847 $17.47 IT & Telecommunications $50,000 0.5% $333 $1.20 $51,000 0.5% $340 $1.23 $53,000 0.5% $353 $1.27 Sales and Marketing $1,319,000 13.9% $8,793 $31.70 $1,360,000 13.9% $9,067 $32.68 $1,397,000 13.9% $9,313 $33.57 Property Operations and Maintenance $372,000 3.9% $2,480 $8.94 $383,000 3.9% $2,553 $9.20 $395,000 3.9% $2,633 $9.49 Utilities $274,000 2.9% $1,827 $6.58 $282,000 2.9% $1,880 $6.78 $291,000 2.9% $1,940 $6.99 TOTAL UNDISTRIBUTED EXPENSES $2,700,000 28.5% $18,000 $64.89 $2,782,000 28.5% $18,547 $66.86 $2,863,000 28.6% $19,086 $68.81

GROSS OPERATING PROFIT $3,893,000 41.1% $25,954 $93.56 $4,021,000 41.2% $26,807 $96.64 $4,108,000 41.0% $27,387 $98.73

MANAGEMENT FEES $284,000 3.0% $1,893 $6.83 $293,000 3.0% $1,953 $7.04 $300,000 3.0% $2,000 $7.21

INCOME BEFORE FIXED CHARGES $3,609,000 38.1% $24,061 $86.73 $3,728,000 38.2% $24,854 $89.59 $3,808,000 38.0% $25,387 $91.52

FIXED CHARGES Property and Other Taxes $615,000 6.5% $4,100 $14.78 $633,000 6.5% $4,220 $15.21 $652,000 6.5% $4,347 $15.67 Insurance $59,000 0.6% $393 $1.42 $60,000 0.6% $400 $1.44 $62,000 0.6% $413 $1.49 TOTAL FIXED CHARGED $674,000 7.1% $4,493 $16.20 $693,000 7.1% $4,620 $16.65 $714,000 7.1% $4,760 $17.16

NET OPERATING INCOME $2,935,000 31.0% $19,568 $70.54 $3,035,000 31.1% $20,234 $72.94 $3,094,000 30.9% $20,627 $74.36

LESS: REPLACEMENT RESERVES $379,000 4.0% $2,527 $9.11 $391,000 4.0% $2,607 $9.40 $401,000 4.0% $2,673 $9.64

ADJUSTED NET OPERATING INCOME (2) $2,556,000 27.0% $17,041 $61.43 $2,644,000 27.1% $17,627 $63.54 $2,693,000 26.9% $17,954 $64.72

Notes: (1) Departmental ratios reflect a percentage of department expenses to department revenues and will not add to total department expenses. (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization. Please note that columns may not add due to rounding. Source: REVPAR International, Inc. Summary Operating Statement Proposed Hilton Garden Inn, Poughkeepsie, NY

Year 10 Year 11 Year 12 Fiscal Year: 2030 2031 2032 Number of Rooms: 150 150 150 Annual # of Available Rooms: 54,750 54,750 54,750 Annual occupancy rate: 76% 76% 76% Annual # of Occupied Rooms 41,610 41,610 41,610 Average Daily Rate $208.00 $214.00 $220.00 RevPAR $158.08 $162.64 $167.20

Amount Ratio PAR POR Amount Ratio PAR POR Amount Ratio PAR POR DEPARTMENTAL REVENUES Rooms $8,655,000 83.5% $57,700 $208.00 $8,905,000 83.5% $59,367 $214.01 $9,154,000 83.4% $61,027 $220.00 Food & Beverage $1,621,000 15.6% $10,807 $38.96 $1,670,000 15.7% $11,133 $40.13 $1,720,000 15.7% $11,467 $41.34 Other Operated Departments $91,000 0.9% $607 $2.19 $93,000 0.9% $620 $2.24 $97,000 0.9% $647 $2.33 TOTAL REVENUE $10,367,000 100.0% $69,114 $249.15 $10,668,000 100.0% $71,120 $256.38 $10,971,000 100.0% $73,141 $263.66

DEPARTMENTAL EXPENSES (1) Rooms $1,862,000 21.5% $12,413 $44.75 $1,918,000 21.5% $12,787 $46.09 $1,976,000 21.6% $13,173 $47.49 Food and Beverage $1,216,000 75.0% $8,107 $29.22 $1,252,000 75.0% $8,347 $30.09 $1,290,000 75.0% $8,600 $31.00 Other Operated Departments $69,000 75.8% $460 $1.66 $71,000 76.3% $473 $1.71 $73,000 75.3% $487 $1.75 TOTAL DEPARTMENTAL EXPENSES $3,147,000 30.4% $20,980 $75.63 $3,241,000 30.4% $21,607 $77.89 $3,339,000 30.4% $22,260 $80.25

TOTAL DEPARTMENTAL INCOME $7,220,000 69.6% $48,134 $173.52 $7,427,000 69.6% $49,513 $178.49 $7,632,000 69.6% $50,881 $183.42

UNDISTRIBUTED OPERATING EXPENSES Administrative and General $749,000 7.2% $4,993 $18.00 $771,000 7.2% $5,140 $18.53 $794,000 7.2% $5,293 $19.08 IT & Telecommunications $54,000 0.5% $360 $1.30 $56,000 0.5% $373 $1.35 $57,000 0.5% $380 $1.37 Sales and Marketing $1,444,000 13.9% $9,627 $34.70 $1,486,000 13.9% $9,907 $35.71 $1,528,000 13.9% $10,187 $36.72 Property Operations and Maintenance $406,000 3.9% $2,707 $9.76 $419,000 3.9% $2,793 $10.07 $431,000 3.9% $2,873 $10.36 Utilities $299,000 2.9% $1,993 $7.19 $308,000 2.9% $2,053 $7.40 $318,000 2.9% $2,120 $7.64 TOTAL UNDISTRIBUTED EXPENSES $2,952,000 28.5% $19,680 $70.94 $3,040,000 28.5% $20,266 $73.06 $3,128,000 28.5% $20,853 $75.17

GROSS OPERATING PROFIT $4,268,000 41.2% $28,454 $102.57 $4,387,000 41.1% $29,247 $105.43 $4,504,000 41.1% $30,028 $108.24

MANAGEMENT FEES $311,000 3.0% $2,073 $7.47 $320,000 3.0% $2,133 $7.69 $329,000 3.0% $2,193 $7.91

INCOME BEFORE FIXED CHARGES $3,957,000 38.2% $26,381 $95.10 $4,067,000 38.1% $27,114 $97.74 $4,175,000 38.1% $27,835 $100.34

FIXED CHARGES Property and Other Taxes $672,000 6.5% $4,480 $16.15 $692,000 6.5% $4,613 $16.63 $712,000 6.5% $4,747 $17.11 Insurance $64,000 0.6% $427 $1.54 $66,000 0.6% $440 $1.59 $68,000 0.6% $453 $1.63 TOTAL FIXED CHARGED $736,000 7.1% $4,907 $17.69 $758,000 7.1% $5,053 $18.22 $780,000 7.1% $5,200 $18.75

NET OPERATING INCOME $3,221,000 31.1% $21,474 $77.41 $3,309,000 31.0% $22,061 $79.52 $3,395,000 30.9% $22,635 $81.59

LESS: REPLACEMENT RESERVES $415,000 4.0% $2,767 $9.97 $427,000 4.0% $2,847 $10.26 $439,000 4.0% $2,927 $10.55

ADJUSTED NET OPERATING INCOME (2) $2,806,000 27.1% $18,707 $67.44 $2,882,000 27.0% $19,214 $69.26 $2,956,000 26.9% $19,708 $71.04

Notes: (1) Departmental ratios reflect a percentage of department expenses to department revenues and will not add to total department expenses. (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization. Please note that columns may not add due to rounding. Source: REVPAR International, Inc. Discounted Cash Flow Analysis Proposed Hilton Garden Inn, Poughkeepsie, NY

Upon Opening Upon Stabilization 2021 2023 Net Present Value Net Present Value Year Operating Factor @ Present Value Year Operating Factor @ Present Value Income 0.0% Income 0.0%

1 $986,000 1.000000 $986,000 1 $2,278,000 1.000000 $2,278,000 2 $1,947,000 1.000000 $1,947,000 2 $2,344,000 1.000000 $2,344,000 3 $2,278,000 1.000000 $2,278,000 3 $2,406,000 1.000000 $2,406,000 4 $2,344,000 1.000000 $2,344,000 4 $2,465,000 1.000000 $2,465,000 5 $2,406,000 1.000000 $2,406,000 5 $2,556,000 1.000000 $2,556,000 6 $2,465,000 1.000000 $2,465,000 6 $2,644,000 1.000000 $2,644,000 7 $2,556,000 1.000000 $2,556,000 7 $2,693,000 1.000000 $2,693,000 8 $2,644,000 1.000000 $2,644,000 8 $2,806,000 1.000000 $2,806,000 9 $2,693,000 1.000000 $2,693,000 9 $2,882,000 1.000000 $2,882,000 10 $2,806,000 1.000000 $2,806,000 10 $2,956,000 1.000000 $2,956,000

Present Value of Cash Flows $23,125,000 Present Value of Cash Flows $26,030,000

Present Value of Reversion Present Value of Reversion #DIV/0! x 1.000000 #DIV/0! #DIV/0! x 1.000000 #DIV/0!

Calculation of Reversion Calculation of Reversion 11 Year Net Operating Income 11 Year Net Operating Income $2,882,000 capitalized @ 0.0% #DIV/0! $3,057,000 capitalized @ 0.0% #DIV/0! Less Cost of Sale/Refinance @ 0.0% #DIV/0! Less Cost of Sale/Refinance @ 0.0% #DIV/0! Net Reversion #DIV/0! Net Reversion #DIV/0!

TOTAL NET PRESENT VALUE #DIV/0! TOTAL NET PRESENT VALUE #DIV/0! Rounded #DIV/0! Rounded #DIV/0! Per Room #DIV/0! Per Room #DIV/0!

Source: REVPAR International, Inc. Range of Financial Comparables' Summary of Operating Statements

Comparables Min Max Average Number of Rooms 102 265 149 Occupancy 60.0% 80.0% 70.0% Average Daily Rate $110.00 $180.00 $145.00 RevPAR $66.00 $144.00 $101.50

Ratio to Sales Per Available Room Per Occ. Rm. Night Comparables Comparables Comparables Min Max Average Min Max Average Min Max Average Revenues Rooms 80.2% 94.0% 87.2% $29,120 $47,681 $37,902 $107.96 $178.95 $144.72 Food & Beverage 5.1% 16.8% 10.9% $1,927 $7,012 $4,662 $6.81 $31.49 $18.21 Other Operated Departments 0.4% 4.9% 1.8% $202 $2,667 $868 $0.77 $10.01 $3.39 Rentals and Other 0.0% 0.2% 0.0% $0 $56 $9 $0.00 $0.21 $0.03 Total 100.0% 100.0% 100.0% $34,580 $54,473 $43,441 $128.20 $204.44 $166.35

Departmental Expenses (1) Rooms 17.1% 26.4% 21.0% $6,483 $8,639 $7,788 $22.92 $37.49 $29.92 Food & Beverage 70.9% 126.9% 93.2% $2,092 $6,579 $4,211 $7.40 $29.55 $16.50 Other Operated Departments 22.7% 98.4% 66.7% $178 $1,657 $489 $0.66 $6.22 $1.85 Total 23.5% 36.5% 29.1% $8,841 $15,209 $12,488 $31.25 $68.31 $48.27

Departmental Income 63.5% 76.5% 70.9% $22,607 $40,931 $30,953 $83.81 $153.61 $118.08

Undistributed Operating Expenses Administrative and General 6.0% 9.1% 7.9% $2,626 $4,090 $3,398 $9.73 $16.88 $13.04 Sales and Marketing 11.5% 14.9% 13.5% $3,981 $6,681 $5,855 $14.76 $26.65 $22.44 Property Operations and Maintenance 2.4% 5.5% 4.6% $1,319 $2,477 $1,956 $4.95 $9.46 $7.51 Utilities 2.4% 3.7% 3.1% $1,160 $1,494 $1,317 $4.43 $5.75 $5.03 Total 23.7% 32.8% 29.1% $9,407 $14,733 $12,525 $34.87 $58.70 $48.02

Gross Operating Profit 32.1% 51.5% 41.8% $13,201 $28,027 $18,428 $48.94 $105.19 $70.06

Management Fee 2.5% 3.0% 2.8% $880 $1,634 $1,237 $3.26 $6.13 $4.74

Income Before Fixed Charges 29.1% 48.5% 39.0% $12,100 $26,393 $17,190 $45.68 $99.05 $65.32

Fixed Charges Rent 0.0% 0.6% 0.2% $0 $261 $77 $0.00 $0.96 $0.29 Property and Other Taxes 0.5% 12.9% 5.3% $285 $5,814 $2,264 $1.07 $21.27 $8.78 Insurance 0.6% 0.9% 0.7% $249 $344 $303 $0.92 $1.55 $1.16 Total 1.3% 14.2% 6.2% $702 $6,388 $2,644 $2.63 $23.37 $10.23

Net Operating Income 20.1% 47.2% 32.8% $8,369 $25,691 $14,546 $36.34 $96.42 $55.09

Less: Reserves for Replacement 4.0% 4.0% 4.0% $1,383 $2,179 $1,738 $5.13 $8.18 $6.65

Adjusted Net Operating Income (2) 16.1% 43.2% 28.8% $6,704 $23,512 $12,808 $29.77 $88.24 $48.43

Notes: (1) Departmental ratios reflect percentage of department expense to department revenues and will not add to total departmental expenses. (2) Net Operating Income defined as income before debt, taxes, depreciation and amortization.

Please note that columns may not add due to rounding.

Source: REVPAR International, Inc. Constant Contact Survey Results Survey Name: 1843 Marist College Hotel Survey Response Status: Partial & Completed Filter: None 9/6/2018 1:33 PM EDT

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To help REVPAR International understand and analyze the demand for both hotel rooms and conference, meeting and banquet space generated by your department's activities, we are requesting your assistance by completing this survey by Tuesday, May 15, 2018.

Please take a few minutes to complete this survey.

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SECTION A: HOTEL NEEDS

Does your department/program use any local area hotels for overnight stays during the year (for visiting professors, lectures/seminars, educational workshops, graduate students, recruiting, events, meetings, trade shows, etc.)? Number of Response Answer 0% 100% Response(s) Ratio Yes. If yes, please proceed 3 100.0 % with survey. No. If no, please go to 0 0.0 % Question # 13. No Response(s) 0 0.0 % Totals 3 100%

Page 1 How many visitors to your department/program stay overnight in a hotel? 1 = 0, 2 = 1-5, 3 = 6-10, 4 = 11-15, 5 = 16-20, 6 = 20+ Number of Rating Answer 1 2 3 4 5 6 Response(s) Score* Fall 3 6.0 Winter 3 5.0 Spring 3 4.7 Summer 3 4.7 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

What is the average length of stay (number of nights) for these visits? Number of Response Answer 0% 100% Response(s) Ratio 1 3 100.0 % 2 0 0.0 % 3 0 0.0 % 4 0 0.0 % 5+ 0 0.0 % No Response(s) 0 0.0 % Totals 3 100%

On average, do these guests typically stay in single or double occupancy rooms? Number of Response Answer 0% 100% Response(s) Ratio Single 0 0.0 % Double 1 33.3 % Either - depends on the 2 66.6 % need. Totals 3 100%

Page 2 Please select the hotels that your department/program typically uses or recommends. (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio None 0 0.0 % Courtyard by Marriott 3 100.0 % Holiday Inn Express 2 66.6 % Poughkeepsie Grand 1 33.3 % Residence Inn 2 66.6 % Hampton Inn & Suites 2 66.6 % Buttermilk Falls Inn & Spa 0 0.0 % Best Western Plus 1 33.3 % Quality Inn Hyde Park 1 33.3 % Hampton Inn New Paltz 1 33.3 % Days Inn 1 33.3 % Hotels in Fishkill 1 33.3 % Other 0 0.0 % Totals 3 100%

When booking accommodations locally, what room rate is typically paid? 1 = under $00, 2 = $101-$125, 3 = $126-$150, 4 = $151-$175, 5 = $176-$200, 6 = $201+, 7 = I don't know Number of Rating Answer 1 2 3 4 5 6 7 Response(s) Score* Fall 3 4.3 Winter 3 3.3 Spring 3 4.7 Summer 3 4.7 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Page 3 How often do you have the need for the following types of hotels? 1 = Never, 2 = Infrequently, 3 = Frequently, 4 = Almost Always Number of Rating Answer 1 2 3 4 Response(s) Score* Economy (ie, Best Western, 3 2.0 Quality Inn) Midscale, Limited-Service (ie, 3 3.3 Hampton Inn, Fairfield Inn) Upscale, Select-Service (ie, 3 3.3 Courtyard by Marriott, Hilton Garden Inn) Upscale, Full Service (ie, 3 2.7 Hilton, Marriott, Embassy Suites) Luxury (ie, Four Seasons, 2 2.0 Ritz Carlton) *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

What is the primary basis for selecting a hotel? (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio Proximity to Department at 3 100.0 % College Proximity to Purpose of Visit 3 100.0 % Price 2 66.6 % Quality of Facilities/Services 3 100.0 % Hotel Brand (Loyalty Points) 2 66.6 % Proximity to 3 100.0 % Restaurants/Entertainment Other 1 33.3 % Totals 3 100%

Page 4 Please select all the on-site amenities/services that you or your guests typically require when selecting a hotel. (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio Bar/Lounge 3 100.0 % Full-Service Restaurant 3 100.0 % Concierge 0 0.0 % Fitness Center 3 100.0 % Business Center 2 66.6 % Large Suite 0 0.0 % Meeting/Conference Space 1 33.3 % Self-Parking 2 66.6 % Valet Parking 1 33.3 % Pool 1 33.3 % Spa 1 33.3 % Free Breakfast 2 66.6 % Other 0 0.0 % Totals 3 100%

Page 5 What are the reasons that you or your department require hotel accommodations? (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio Baccalaureate / 1 33.3 % Commencement Executive Training 1 33.3 % Faculty/Staff Recruiting 2 66.6 % Prospective Students 2 66.6 % Social Events 1 33.3 % Special Events 3 100.0 % Sporting Events 2 66.6 % Symposium 0 0.0 % Visiting Professors/Lecturers 0 0.0 % Visiting Researchers/Project- 1 33.3 % Based Work Trustee or Board Meeting 2 66.6 % Interviewing 2 66.6 % Other 1 33.3 % Totals 3 100%

Are these responses just for what you (individual) are booking or for your entire department/program? Number of Response Answer 0% 100% Response(s) Ratio Just for Me 0 0.0 % Entire Department/Program 3 100.0 % No Response(s) 0 0.0 % Totals 3 100%

Are there other individuals in your department/program that book or generate hotel rooms? If so, please provide contact information in "Comment" box. Number of Response Answer 0% 100% Response(s) Ratio Yes 3 100.0 % No 0 0.0 % No Response(s) 0 0.0 % Totals 3 100%

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Page 6 SECTION B: MEETING/BANQUET SPACE NEEDS

Does your department/program host or plan meetings/special events that take place in the local market area? Number of Response Answer 0% 100% Response(s) Ratio Yes. If yes, please proceed 3 100.0 % with survey. No. If no, please go to 0 0.0 % Question # 30 No Response(s) 0 0.0 % Totals 3 100%

Are these events predominantly: Number of Response Answer 0% 100% Response(s) Ratio Business/College related 3 100.0 % Leisure/Social 0 0.0 % Both 0 0.0 % No Response(s) 0 0.0 % Totals 3 100%

What obstacles/constraints in booking meetings/events exist at these area facilities? (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio Facilities are too small 3 100.0 % Lack of breakout space 2 66.6 % Space configuration 3 100.0 % Lack of availability 1 33.3 % Lack of parking 2 66.6 % Quality of facility 1 33.3 % Poor location/difficult to 0 0.0 % access Other 0 0.0 % Totals 3 100%

Page 7 Please select the venues in the area where your meetings/events are held. (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio On-Campus Meeting Space 3 100.0 % Poughkeepsie Grand 1 33.3 % Courtyard Poughkeepsie 1 33.3 % Hampton Inn & Suites 0 0.0 % Mid-Hudson Civic Center 1 33.3 % Casperkill Golf Club 0 0.0 % The Grandview Event Center 0 0.0 % Buttermilk Falls Inn 0 0.0 % Conference Center Other 1 33.3 % Totals 3 100%

If you chose "On-Campus Meeting Space" in the previous question, please specify why you use these facilities. (Please select all that apply.) Number of Response Answer 0% 100% Response(s) Ratio Convenient location 3 100.0 % Cost efficient or free 3 100.0 % The space(s) available 2 66.6 % meets my needs Quality of service and 1 33.3 % catering Other 0 0.0 % Totals 3 100%

Page 8 How many events does your department/program host in the local area on an annual basis? Number of Response Answer 0% 100% Response(s) Ratio 1 0 0.0 % 2 1 33.3 % 3 0 0.0 % > 3 1 33.3 % Other 1 33.3 % No Response(s) 0 0.0 % Totals 3 100%

TextBlock: Note: When answering Questions 19-28, please use the same event number for each of your events. For example, in Question 19, if the data that you provide for Event 1 is for a "Trustees Meeting" , for Questions 20-28, please provide data for the "Trustees Meeting" in Event 1. If Event 2 is "President's Council", all of your responses for Event 2 will be for the "President's Council".If you host more than 3 events a year, please provide answer in comments box.

How often does your department/program host each event? 1 = Weekly, 2 = Monthly, 3 = 1-2 times a year, 4 = 3-4 times a year, 5 = 5+ times a year Number of Rating Answer 1 2 3 4 5 Response(s) Score* Event 1 3 3.0 Event 2 3 3.3 Event 3 2 3.5 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Page 9 What is the average length of each event? 1 = Less Than One Day (a few hours), 2 = 1 Day, 3 = 2 Days, 4 = 2+ Days Number of Rating Answer 1 2 3 4 Response(s) Score* Event 1 3 3.3 Event 2 3 2.0 Event 3 2 2.5 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

What is the average number of attendees for each event? 1 = 1-10, 2 = 11-30, 3 = 31-50, 4 = 51-100, 5 = 101-200, 6 = 201-300, 7 = 301-500, 8 = 501-1,000, 9 = 1,001+ Number of Rating Answer 1 2 3 4 5 6 7 8 9 Response(s) Score* Event 1 3 5.3 Event 2 3 5.0 Event 3 2 4.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

At these meetings, how many attendees need hotel rooms? 1 = 0, 2 = 1-5, 3 = 6-15, 4 = 16-30, 5 = 31-50, 6 = 51-100, 7 = 100+ Number of Rating Answer 1 2 3 4 5 6 7 Response(s) Score* Event 1 3 5.0 Event 2 3 3.3 Event 3 2 3.5 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

How many nights do they typically stay? 1 = 1, 2 = 2, 3 = 3, 4 = 4, 5 = 5+, 6 = N/A Number of Rating Answer 1 2 3 4 5 6 Response(s) Score* Event 1 3 1.7 Event 2 3 1.0 Event 3 2 1.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Page 10 Did you include the hotel room night demand for these meetings/events in Section A: Hotel Demand? Number of Response Answer 0% 100% Response(s) Ratio Yes 3 100.0 % No 0 0.0 % No Response(s) 0 0.0 % Totals 3 100%

On average, do these guests typically stay in single or double occupancy rooms? Number of Response Answer 0% 100% Response(s) Ratio Single 0 0.0 % Double 0 0.0 % Either - depends on the 3 100.0 % need. Totals 3 100%

When are these events typically held? 1 = Fall, 2 = Winter, 3 = Spring, 4 = Summer Number of Rating Answer 1 2 3 4 Response(s) Score* Event 1 3 1.7 Event 2 3 1.3 Event 3 2 2.5 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Page 11 During which part of the week are these events typically held? 1 = Weekday, 2 = Weekend, 3 = Both Wkday and Wkend Number of Rating Answer 1 2 3 Response(s) Score* Event 1 3 1.3 Event 2 3 1.0 Event 3 2 1.5 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Please select what you spend, on average (not including tip/gratuity/service charge), per person for food and beverage only (not hotel rooms) for each event. 1 = N/A, 2 = $1-$15, 3 = $16-$25, 4 = $26-$50, 5 = $51-$75, 6 = $76+ Number of Rating Answer 1 2 3 4 5 6 Response(s) Score* Event 1 3 4.7 Event 2 3 4.0 Event 3 2 3.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Please select amenities required when selecting a meeting/banquet space. (Please select all that apply.)

Number of Response Answer 0% 100% Response(s) Ratio Large meeting room 1 33.3 % (ballroom) Size 3 100.0 % Quality/unique venue 3 100.0 % Breakout space for smaller 2 66.6 % groups Business center 1 33.3 % Free parking 3 100.0 % Hotel rooms attached 3 100.0 % Column free space 1 33.3 % Price 2 66.6 % Amenities/restaurants within 2 66.6 % proximity to the venue Spa 0 0.0 % High-tech AV 3 100.0 % Totals 3 100%

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SECTION C: YOUR DEPARTMENT'S/PROGRAM'S FUTURE NEEDS

Do you expect your department/program to host more events/conferences/meetings locally in the future? Number of Response Answer 0% 100% Response(s) Ratio Yes 2 66.6 % No. If not, please go to 0 0.0 % Question #35. Maybe 1 33.3 % No Response(s) 0 0.0 % Totals 3 100%

If you answered yes to the previous question, what is the average number of attendees to these future events? 1 = 1-15, 2 = 16-30, 3 = 31-50, 4 = 51-100, 5 = 101-200, 6 = 200+ Number of Rating Answer 1 2 3 4 5 6 Response(s) Score* Event 1 1 5.0 Event 2 1 5.0 Event 3 1 6.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

How many attendees may need hotel rooms? 1 = 0, 2 = 1-5, 3 = 6-15, 4 = 16-30, 5 = 31-50, 6 = 51-100, 7 = 100+ Number of Rating Answer 1 2 3 4 5 6 7 Response(s) Score* Event 1 1 5.0 Event 2 1 5.0 Event 3 1 6.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Page 13 How many nights would they typically stay? 1 = 1, 2 = 2, 3 = 3, 4 = 4, 5 = 5+, 6 = N/A Number of Rating Answer 1 2 3 4 5 6 Response(s) Score* Event 1 1 2.0 Event 2 1 2.0 Event 3 1 2.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

How inclined would you be to use the proposed facilities if they are developed at Marist College? 1 = Never, 2 = Infrequently, 3 = Frequently, 4 = Always Number of Rating Answer 1 2 3 4 Response(s) Score* Hotel 3 3.3 Meeting/Banquet Space 3 3.0 *The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.

Do you know of or are you affiliated with any organization, outside of the College, that may be interested in utilizing a hotel and/or the meeting/banquet space if it were available on campus? Please provide the contact information for this organization (name of organization and primary contact, phone and email) so that we may contact them directly.

2 Response(s)

Additional comments/issues/concerns:

1 Response(s)

Page 14 Please enter the information indicated below. Please provide your department/program name in the "Company Name" section.

Answers Number of Response(s) First Name 3 Last Name 3 Job Title 3 Company Name 3 Work Phone 3 Email Address 3

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Thank you for your participation in this survey. If you have any questions regarding this survey, please contact:Jacqueline WoodrumREVPAR International, Inc.Phone: 703-838-9707Email: [email protected]

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