The Hotel Fresno OFFERING MEMORANDUM

Asking Price: $12,500,000.00 3737 N. Blackstone Ave., Fresno, CA 93726

Owners are willing to carry with 50% Contact: Bac Tran 714-353-3870 down payment, 7% interest only, [email protected] 2 points, 3-year term. Or Hoang Tran 714-926-2072 [email protected] EXECUTIVE SUMMARY

The Tran Family is pleased to present to qualified investors the opportunity to acquire the fee simple interest in the 204-room, The Hotel Fresno & Conference Center, AKA Four Points by Sheraton, located directly across from the Manchester Mall, Fresno, .

The Hotel Fresno & Conference Center is operating as an independent hotel which has the potential opportunity to convert to another brand or to another use such as multifamily residential, student housing, senior living, or assisted living facilities.

There are 3 parcels for this property, 8.85 acres. The current owner obtained a Lot Line Adjustment for an approved 96,000-sqft mixed-use building, with 20,000- sqft retail on the ground floor and 48-apartment units on top. EXECUTIVE SUMMARY

Site: Room Amenities: APNs: 435-020-09, 435-020-11, & 435-020-12 Beautifully decorated rooms & suites -74 rooms with queen beds, 124 Acreage: 8.85 +/- Acres rooms with King bed, 3 rooms with King bed suites, 3 rooms with sofa, table/ living room. The Hotel was originally developed in 1972 including the Smugglers Restaurant & Banquet facility. Free Wireless high speed internet access in all guest rooms with data ports and in public spaces The property was recently operated under the Four Points by Sheraton until December 2011 converted to Park Inn by Radisson Fitness room. Refrigerators in all guest rooms. Coffeemakers in all franchise March 7,2012. Fully renovated to Sheraton specs. in 2007 guest rooms. Two phones in each guest room with voice mail options. Hair dryer, iron & ironing board. Oversized executive desk. Flat Park Inn conversion cost approx. $140,000 1st quarter 2012 screen TV’s with Dish Network. Room Service available

Approx. 371 parking stalls with additional 60 future park stalls Meeting Accommodations: Complete catering and conference service staff and audio visual team All New Roofs and upgrades in 2017, cost over $1million, Eight separate free standing 2 story interior-corridor buildings that house all 5,250 sqft of meeting and exhibit space with maximum capacity of rooms and suites 300.

Laundry room, mechanical room, supply room located in separate Beautifully appointed boardroom buildings

Smugglers Full Service Restaurant , lounge & Banquet Facilities are being leased to an independent operator. Mixed-Use Entitlement Mixed-Use Building: (APN 435-020-11) A Mixed-Use building entitlement has been obtained from the city of Fresno in 2018 for a 20,000sqft retail on the ground floor and 48-unit apartment complex on top, total of 96,000-sqft. Parcel Map Mixed-Use Building Parcel APN: 435-020-11

Hotel Parcel APN: 435-020-12 Aerial View Area Map

The Hotel Fresno Hotel Photos https://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM Hotel Photos https://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM Hotel Photos https://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM Hotel Photos https://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM Hotel Photos https://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM Fresno Attractions and Events

Below is a list of attractions in Fresno Annual events in Fresno • African American Historical & Cultural Museum of the San • California Classic Weekend (run, walk, bike race held Joaquin Valley each April) • Arte Americas • California Interscholastic Federation (CIF) Track & Field • Club One Casino • Fresno Fuego FC Games • • Games • Forestiere Underground Gardens • Grizzly Fest • Fresno Chaffee • Order of the Eastern Star Events • Fresno Convention & Entertainment Center • Western Band Association Events • Island Waterpark • World Agriculture Expo • Kings Canyon National Park • • Sequoia National Park • The Grand 1401 • Tower District • Veterans Memorial Museum • Wild Water Adventure Park • Yosemite National Park PRO FORMA STATEMENT

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trailing 12 Months Days 31 28 31 30 31 30 31 31 30 31 30 31 365 Daily Rooms Available 210 210 210 210 210 210 210 210 210 210 210 210 210 Rooms Available 6,510 5,880 6,510 6,300 6,510 6,300 6,510 6,510 6,300 6,510 6,300 6,510 76,650 Rooms Sold 3,255 3,234 3,255 3,465 4,232 4,095 4,232 4,232 4,095 3,581 3,150 3,255 44,079 Avg. Daily Rate 60.00 75.00 75.00 75.00 80.00 80.00 80.00 85.00 75.00 60.00 60.00 60.00 72.08 Occupancy Rate (%) 50.00% 55.00% 50.00% 55.00% 65.00% 65.00% 65.00% 65.00% 65.00% 55.00% 50.00% 50.00% 57.51% RevPar 30.00 41.25 37.50 41.25 52.00 52.00 52.00 55.25 48.75 33.00 30.00 30.00 41.45 REVENUE Rooms 195,300 242,550 244,125 259,875 338,520 327,600 338,520 359,678 307,125 214,830 189,000 195,300 3,212,423 Food & Beverages - Lease Restaurant/Banquet 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,000 Parking 000000000000 0 Private Bar & Gift Shop 0 0 0 0 0 0 0 0 0 0 0 0 0 Spa 000000000000 0 Other Operated Departments 0 0 0 0 0 0 0 0 0 0 0 0 0 Transportation - None 0 0 0 0 0 0 0 0 0 0 0 0 0 Rentals - None 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL REVENUES 204,300 251,550 253,125 268,875 347,520 336,600 347,520 368,678 316,125 223,830 198,000 204,300 3,320,423 DEPARTMENTAL EXPENSES 0 Rooms & Supplies 60,543 75,191 75,679 80,561 104,941 101,556 104,941 111,500 95,209 66,597 58,590 60,543 995,851 Breakfast 7,812 9,702 9,765 10,395 13,541 13,104 13,541 14,387 12,285 8,593 7,560 7,812 128,497 Private Bar & Gift Shop 0 0 0 0 0 0 0 0 0 0 0 0 0 Spa 000000000000 0 Other Expenses (Bonus) 1,750 1,750 2,000 2,000 2,150 2,150 2,250 2,250 2,350 2,350 1,750 1,750 24,500 Commissions 3,906 4,851 4,883 5,198 6,770 6,552 6,770 7,194 6,143 4,297 3,780 3,906 64,248 TOTAL DEPARTMENTAL EXPENSES 74,011 91,494 92,326 98,154 127,402 123,362 127,502 135,331 115,986 81,837 71,680 74,011 1,213,096 TOTAL DEPARTMENTAL INCOME 130,289 160,057 160,799 170,721 220,118 213,238 220,018 233,347 200,139 141,993 126,320 130,289 2,107,326 UNDISTRIBUTED EXPENSES 0 Administrative & General 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000 Marketing/Employee Incentive 7,812 9,702 9,765 10,395 13,541 13,104 13,541 14,387 12,285 8,593 7,560 7,812 128,497 Franchise Fees 9,765 12,128 12,206 12,994 16,926 16,380 16,926 17,984 15,356 10,742 9,450 9,765 160,621 Facilities & Maintenance 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000 Energy/Utilities 24,516 30,186 30,375 32,265 41,702 40,392 41,702 44,241 37,935 26,860 23,760 24,516 398,451 TOTAL UNDISTRIBUTED EXPENSES 75,593 85,516 85,846 89,154 105,669 103,376 105,669 110,112 99,076 79,694 74,270 75,593 1,089,569 GROSS OPERATING PROFIT 54,696 74,541 74,953 81,568 114,448 109,862 114,348 123,235 101,063 62,299 52,050 54,696 1,017,757 Management Fees 5,859 7,277 7,324 7,796 10,156 9,828 10,156 10,790 9,214 6,445 5,670 5,859 96,373 Earthquake Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 Property Taxes 0 0 0 67,650 0 0 0 0 0 0 0 67,650 135,300 Insurance 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000 EBITDA 44,670 63,098 63,462 1,955 100,126 95,867 100,026 108,278 87,682 51,687 42,213 (22,980) 736,085 EBITDA % 0 Cumulative EBITDA % 0 Cumulative EBITDA $ 0 Interest Expense-Other 0 0 0 0 0 0 0 0 0 0 0 0 0 Rental/Lease 0 0 0 0 0 0 0 0 0 0 0 0 0 NET FROM OPERATION 44,670 63,098 63,462 1,955 100,126 95,867 100,026 108,278 87,682 51,687 42,213 (22,980) 736,085 PROPERTY OVERVIEW California High-Speed Rail Development

Officials of the California High-Speed Rail Authority say a straight stretch through the San Joaquin Valley connecting Fresno and Bakersfield will be the first completed. Regional Manager Thomas Tracy told the Visalia City Council that the 800-mile project would be built in eight phases and is scheduled for completion by 2029. The first segment, which began construction in 2015, will stretch from Bakersfield to Merced on an initial run from San Diego to Sacramento. At its full 220 mph speed, the normally three-hour car trip from Merced to Bakersfield would take approximately 45 minutes or less. The map below indicates the location of the proposed and APPROVED station in Fresno, which is located approximately 8 miles from the Subject Motel 6. Local officials estimate that an additional 20,000 jobs will be created annually during the construction of the Merced to Fresno section. An additional 67,000 jobs annually are estimated for creation during the remaining phases of construction.

Additional improvements will be completed in the Fresno region due to construction activity related to the high-speed rail project, including secondary transportation and roadway improvements to over- and underpasses, pedestrian and motor vehicle safety improvements, and an overall beautification of the region. New bridges, new asphalt, and local road enhancements, will occur around the primary construction activity generated by the larger project. PROPERTY OVERVIEW

King’s Canyon National Park Kings Canyon National Park is a national park in the southern Sierra Nevada, east of Fresno, California. The park was established in 1940 and covers 461,901 acres. It incorporated General Grant National Park, established in 1890 to protect the General Grant Grove of giant sequoias. The park is north of and contiguous with Sequoia National Park; the two are administered by the National Park Service jointly as the Sequoia and Kings Canyon National Parks.

Yosemite National Park Yosemite National Park is a United States National Park spanning eastern portions of Tuolumne, Mariposa and Madera counties in the central eastern portion of the U.S. state of California. The park, which is managed by the National Park Service, covers an area of 747,956 acres and reaches across the western slopes of the Sierra Nevada mountain chain. Over 3.7 million people visit Yosemite each year, most spend time in the seven square miles of Yosemite Valley. Designated a World Heritage Site in 1984, Yosemite is internationally recognized for its spectacular granite cliffs, waterfalls, clear streams, Giant Sequoia groves, and biological diversity. Almost 95% of the park is designated wilderness. Yosemite is one of the largest and least fragmented habitat blocks in the Sierra Nevada, and the park supports a diversity of plants and animals. The park has an elevation range from 2,127 to 13,114 feet and contains five major vegetation zones: chaparral/oak woodland, lower montane forest, upper montane forest, subalpine zone, and alpine. Of California’s 7,000 plant species, about 50% occur in the Sierra Nevada and more than 20% within Yosemite. There is suitable habitat or documentation for more than 160 rare plants in the park, with rare local geologic formations and unique soils characterizing the restricted ranges many of these plants occupy. PROPERTY OVERVIEW

California State University, Fresno California State University, Fresno (Fresno State) is a public comprehensive university and part of the 23 campus California State University system. It is located at the northeast edge of Fresno, California, approximately 8 miles from the subject Motel 6. The university has a total enrollment of more than 23,400 undergraduate, graduate, and post-baccalaureate students. It offers bachelor’s degrees in 60 areas of study, 45 master’s degrees, 3 doctoral degrees, 12 certificates of advanced study, and 2 different teaching credentials. The university’s unique facilities include an on-campus planetarium, on-campus raisin and wine grape vineyards, and a commercial winery, where student-made wines have won over 300 awards since 1997. Members of Fresno State’s nationally ranked Top 10 Equestrian Team have the option of housing their horses on campus, next to indoor and outdoor arenas. Fresno State has a 50,000-square-foot (4,600 m2) Student Recreation Center and the third-largest library, in terms of square footage, in the California State University system. The greater campus extends from Bulldog Stadium on the west boundary to the Save Mart Center and the under-construction Campus Pointe and Highway 168 on the east side. Vineyards and orchards designate the northern boundary of the campus, while Shaw Avenue designates the southern edge. The 388 acres main campus features more than 46 traditional and modern buildings. An additional 34 structures are on the 1,011-acre University Farm, which includes the student-run Equine, Swine, Beef, Dairy, Poultry, and Sheep Units as well as several hundred acres of cattle rangeland. It is considered one of the most modern and bestequipped agricultural facilities in the West. Fresno State was officially designated as an arboretum in 1979 and now has more than 4,000 trees on campus.