Days Inn Osage Beach Osage Beach, Mo Offering Memorandum Table Of

The World’s Leading Hotel Experts.

DAYS INN OSAGE BEACH OSAGE BEACH, MO OFFERING MEMORANDUM TABLE OF

CONTENTS EXECUTIVE SUMMARY 01 PROPERTY OVERVIEW 02 MARKET OVERVIEW 03 FINANCIAL SUMMARY 04 01 EXECUTIVE SUMMARY EXECUTIVE SUMMARY

OPPORTUNITY OVERVIEW

CBRE Hotels is pleased to solicit offers to acquire the fee-simple interest of a 69-room Days Inn located on Lake of the Ozarks in Osage Beach, Missouri. This hotel offers diverse exposure to multiple transient and group segments, and has the ability to generate strong financial results. This offering presents an opportunity to acquire a select-service, fee simple asset with excellent highway accessibility as it is prominently featured off US-54. The asset is being offered unencumbered by management.

The property is nestled between Lake of the Ozarks, Osage Beach Outlet Marketplace and Osage Beach City Park. Additionally, the hotel is just 6.5 miles from Lake of the Ozarks State Park. The hotel features 69 interior rooms in two separate guestroom buildings. Additional amenities at the Days Inn include an indoor and an outdoor pool, enough meeting space to accommodate up to 30 guests. Complimentary breakfast and free parking is also offered.

Nationally Recognized Franchise: The offering presents the unique opportunity to acquire a hotel affiliated with the nationally recognized Days Inn brand. The Days Inn has consistently achieved high scores with Days Inn’s parent company, Wyndham.

Unparalleled Location: Aside from the resort-dedicated properties in the area, the Days Inn has one of the most desirable locations of all hotels in the Osage Beach area. The hotel is less than a half a mile MARKET FACTORS from the shores of Lake of the Ozarks, and less than a mile from Osage Beach Outlet Marketplace.

Unencumbered by Management: Unencumbered by a management agreement, a prospective new owner has the opportunity to enhance the hotel’s profitability by implementing a customized business plan.

Excellent Accessibility: The hotel boasts excellent accessibility from US-54, which also generates highway transient demand.

DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 4 02 PROPERTY OVERVIEW PROPERTY OVERVIEW

Days Inn Osage Beach

The Days Inn has 69 spacious guestrooms and offers countless amenities making it one of the finest select-service assets in the Osage Beach area. Located off of US-54, the subject hotel sits less than a half a mile from the shore of Lake of the Ozarks and less than a mile from Osage Beach Outlet Marketplace. The Days Inn features both indoor and outdoor pools, enough meeting space to accommodate approximately 30 guests, as well as complimentary breakfast and free parking.

PROPERTY DETAILS

Address 4755 Osage Beach Pkwy, Osage Beach, MO 65065 Year Open 1994

Stories Two

Guestroom 69 Count Guestroom Flat-screen TV, refrigerator and Amenities microwave; some rooms feature a whirlpool and additional seating area Amenities Indoor and outdoor pools, meeting and event space, complimentary breakfast and free parking

Osage Beach, MO 1994 69 3 of 14 $680,182 $ % $ $102,009 $685,373 Market Year Built Number of Rooms TripAdvisor Rank Room Revenue Average Daily Rate Occupancy RevPAR In-Place Cash Flow Gross Revenue

Source: Statistics are as of Year-End 2017

DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 6 03 MARKET OVERVIEW MARKET OVERVIEW

AREA OVERVIEW

Osage Beach is a lake resort town situated along the shores of the eastern portion of Lake of the Ozarks with a population of almost 4,500 as of 2016. Osage Beach is located in central Missouri, approximately 75 miles south of Columbia, MO and about 90 miles north of Springfield, MO. The town can not be accessed by air, which means the area relies heavily on visitors making their way by car. The nearest international airport is Columbia Regional Airport, which is approximately 65 miles north of Osage Beach. Given Osage Beach’s division by way of Lake of the Ozarks, it is technically part of both the Camden and Miller counties of Missouri. The area has predominantly gained popularity over time as a lake destination.

Lake of the Ozarks has been voted one of the best outdoor recreation lakes in the country. The lake provides locals and visitors with easy access to water activities, from fishing and swimming to boating and water parasailing. Aside from water activities, the Lake of the Ozarks area also offers additional outdoor activities, such as spectacular cave tours, cycling, hiking, bird watching, and more. Lake of the Ozarks State Park, scattered with Ozark taverns, is a popular outdoor destination for cave tours, boating, fishing, swimming, canoeing, camping, hiking, rock climbing cycling and horseback riding. One of Osage Beach’s main demand generators, Osage Beach Outlet Marketplace, is a popular shopping destination, which is home to Macy’s, Ann Taylor, Brooks Brothers and Coach to name a few. All in all, Osage Beach and the surrounding Lake of the Ozarks area make for an ideal destination fit for any traveler.

ASSET

Photo Credit: Missouri State Parks DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 8 MARKET OVERVIEW

COMPETITIVE SET & DEMAND GENERATORS MAP

Competitive Set Demand Generators

DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 9 MARKET OVERVIEW

SMITH TRAVEL RESEARCH (STR) ANALYSIS DAYS INN OSAGE BEACH & COMPETITIVE SET OPERATING STATISTICS TTM as of Competitive Set Days Inn Osage Beach Sep 2017 Occupancy % Change ADR % Change RevPAR % Change Occupancy % Change ADR % Change RevPAR % Change 2014 40.9% --- $88.06 --- $35.96 --- 22.4% --- $57.05 --- $12.72 --- 2015 39.4% (3.6%) $89.20 1.3% $35.10 (2.4%) 9.0% (59.8%) $62.58 9.7% $5.61 (55.9%) 2016 41.2% 4.6% $90.88 1.9% $37.49 6.8% 28.1% 212.2% $62.52 (0.1%) $17.59 213.5% 2017 44.0% 6.8% $90.24 (0.7%) $39.73 6.0% 43.9% 56.2% $59.89 (4.2%) $26.27 49.3%

COMPOUND ANNUAL GROWTH RATE FROM TTM 2014 - TTM 2017 2.5% 0.8% 3.4% 25.2% 1.6% 27.3%

YTD Sep, 2015 41.1% --- $90.65 --- $37.22 --- 9.9% --- $67.35 --- $6.69 --- YTD Sep, 2016 44.0% 7.1% $92.56 2.1% $40.75 9.5% 35.5% 258.6% $62.73 (6.9%) $22.24 232.4% YTD Sep, 2017 47.0% 6.8% $92.12 (0.5%) $43.29 6.2% 47.7% 34.4% $62.34 (0.6%) $29.75 33.8% HOTEL & COMPETITIVE SET HOTEL'S INDEX LEVELS TO COMPETITIVE SET COMPETITIVE SET SEASONALITY OPERATING PERFORMANCE $100 100% $120 100% $90 100% 90% $80 80% $100 80% $70 80% $80 $60 60% 70% 60% $50 60% $60 ADR $40 40% 50% 40%

Occupancy $40 $30 40% Occupancy ADR & & ADR RevPAR Index Level $20 20% 30% $20 20% $10 20% $0 0% 10% $0 0% 2014 2015 2016 2017 YTD YTD 2014 2015 2016 2017 YTD YTD JAN MAR MAY JUL SEP NOV Sep Sep Performance 100%) Set (Comp = Sep Sep 2016 2017 2016 2017 ADR RevPAR Occupancy Comp Set ADR Hotel ADR ADR RevPAR Occupancy Comp Set Occupancy Hotel Occupancy

Source: Smith Travel Research, September 2017. Hotel City, ST Keys Opened Days Inn Osage Beach Osage Beach, MO 69 1994 Econo Lodge Lebanon Lebanon, MO 47 1967 Econo Lodge Inn & Suites Lake of the Ozarks Osage Beach, MO 58 1983 Red Roof Inn Osage Beach Osage Beach, MO 52 1996 Baymont Inn & SuitesOsage Beach Osage Beach, MO 70 1994 Holiday Inn Express Osage Beach Lake of the Ozarks Osage Beach, MO 60 1996 Sleep Inn & Suites Lake of the Ozarks Camdenton, MO 61 2002 417 DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 10 04 FINANCIAL SUMMARY FINANCIAL SUMMARY

HISTORICAL OPERATING PERFORMANCE

HISTORICAL FINANCIAL SUMMARY

Actual 2016 Actual 2017 Days Inn Osage Beach $ % $ %

Rooms 69 69 Days in Period 366 365 Rooms Available 25,254 25,185 Rooms Sold 8,713 - Occupancy 34.5% - ADR $48.89 - RevPAR $16.87 - RevPAR Growth ---

Operating Revenue Rooms $425,988 99.1% $680,182 99.2% Other Operated Departments 3,712 0.9% $5,191 0.8% Total Operating Revenue $429,700 100.0% $685,373 100.0%

Departmental Expenses Rooms $55,911 13.1% $84,955 12.5% Total Departmental Expenses $55,911 13.0% $84,955 12.4%

TOTAL DEPARTMENTAL PROFIT $373,789 87.0% $600,418 87.6%

Undistributed Operating Expenses Administrative and General $184,630 43.0% $253,494 37.0% Information and Telecommunications Systems 85 0.0% $1,347 0.2% Sales and Marketing 14,796 3.4% $21,900 3.2% Franchise Fees 47,164 11.0% $71,833 10.5% Property Operations and Maintenance 32,717 7.6% $24,852 3.6% Utilities 37,363 8.7% $45,463 6.6% Total Undistributed Expenses $316,757 73.7% $418,889 61.1%

GROSS OPERATING PROFIT $57,032 13.3% $181,529 26.5%

Management Fee $12,891 3.0% $20,561 3.0%

INCOME BEFORE NON-OP. INCOME & EXP. $44,141 10.3% $160,968 23.5%

Non-Operating Income and Expenses Property and Other Taxes $16,298 3.8% $2,885 0.4% Insurance 19,782 4.6% $28,659 4.2% Total Non-Operating Income and Expenses $36,080 8.4% $31,544 4.6%

EBITDA $8,061 1.9% $129,424 18.9%

Replacement Reserve $17,188 4.0% $27,415 4.0%

NET OPERATING INCOME ($9,127) (2.1%) $102,009 14.9%

Notes 1 Per industry standards, a 3% management fee and 4% replacement reserve have been deducted.

DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 12 AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

Disclaimer

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

For more information and to view our current listings, visit: www.cbredealflow.com

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

DAYS INN OSAGE BEACH | OSAGE BEACH, MO | 13 CBRE HOTELS

The World’s Leading Hotel Experts.

LICENSED REAL ESTATE BROKER:

CBRE Hotel Contacts Tom Adamson Nate Sahn Alex Kowalski Kansas City, MO Chicago, IL Denver, CO +1 913 383 3395 +1 312 935 1024 +1 303 583 2005 [email protected] [email protected] [email protected] Broker Broker Marketing

4520 Main Street, Suite 600 Kansas City, MO 64111 www.cbrehotels.com

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