Investment Offering Memorandum Confidentiality & Conditions Table of Contents

Home , Downtown Baltimore, National Bohemian, Visit Baltimore

INVESTMENT OFFERING MEMORANDUM CONFIDENTIALITY & CONDITIONS TABLE OF CONTENTS

This is a confidential Investment Offering Memorandum (“Memorandum”), which is intended Investment Summary ...... 4 solely for your limited use and benefit in determining whether you desire to express any further in- Opportunity Overview...... 5 terest in participating in the acquisition of The Days Inn Hotel Baltimore Inner Harbor (the “Hotel” or “Property”) in Baltimore, MD. You are bound by the Confidentiality Agreement executed Investment Highlights ...... 5 in connection with your receipt of this Memorandum. This Memorandum was prepared by HREC Property Overview...... 8 Investment Advisors and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information, which Area Overview...... 12 prospective investors may desire. It should be noted that all the market analysis projections are Hotel Market Review...... 36 provided for general reference purposes and are based on assumptions relating to the general Financial Overview ...... 41 economy, competition, and other factors beyond our control and, therefore, are subject to material variation. Additional information and an opportunity to inspect material related to the Property will be made available to interested and qualified prospective investors. Neither the Owner nor HREC Investment Advisors nor any of their respective officers have made any representation or FOR FURTHER INFORMATION warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this Memorandum KETAN PATEL or its contents. It is essential that all parties to real estate transactions be aware of the health, lia- Managing Director bility, and economic impact of environmental factors on real estate. HREC Investment Advisors (410) 598-7595 does not conduct investigations or analyses of environmental matters and, accordingly, urges in- [email protected] terested parties to retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCBs and other contaminants or petrochemical products stored in underground tanks) or other undesirable materials or conditions are present at BRENDAN COLLINS the Property and if so, whether any health danger or other liability exists. Various laws and regu- Senior Associate lations have been enacted at the federal, state and local levels dealing with the use, storage, han- (303) 267-0057x112 dling, removal, transport, and disposal of toxic or hazardous wastes and substances. Depending [email protected] on past, current, and proposed uses of the Property, it may be prudent to retain an environmental expert to conduct a site investigation and/or building inspection. If such substances exist or are GREGORY PORTER contemplated to be used at the Property, special governmental approvals or permits may be re- Senior Vice President – Mortgage Brokerage quired. Consequently, legal counsel and technical experts should be consulted where these sub- (760) 438-4401 stances are or may be present. In this Memorandum, certain documents are described in summary [email protected] form. The summaries do not purport to be complete descriptions of the full agreements involved, nor do they purport to constitute any legal analysis of the provisions of the documents. This brochure DANA WEINBERG shall not be deemed an indication of the state of affairs of the Owner nor constitute an indication Corresponding Broker that there has been no change in the business or affairs of the Owner since the date of MD License # #636049 preparation of this Memorandum. Photocopying or other duplication of the In- vestment Offering Memorandum in part or entirety is not authorized. THE OFFERING PROCESS DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

An online auction event will be conducted on RealINSIGHT Marketplace in accordance with the Sale Event Terms and Conditions (https://marketplace.realinsight.com/legal-sale-terms).

DUE DILIGENCE Due diligence materials are available to qualified prospective bidders via an electronic data room hosted by RealINSIGHT Marketplace. Prospective bidders will be required to electronically execute a confidentiality agreement prior to beingBALTIMORE allowed access INNERto the materials. HARBOR All due diligence must be conducted prior to signing the purchase and sale agreement. You may contact the sales advisors with any due diligence questions.BALTIMORE, MD BUYER QUALIFICATION Prospective bidders will be required to register with RealINSIGHT Marketplace to bid. Each bidder will be required to provide current contact information, submit proof of funds up to the full amount they plan to bid, and agree to the Auction Terms and Conditions.

In order to participate in an auction, the Seller requires bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid for those assets they wish to bid on. Such liquidity must be in the form of cash, or cash equivalents, and must be available immediately without restriction.

Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable only if it is already closed and in place, has undrawn capacity, and may be funded immediately without bank approval. Loan pre-approval letters, term sheets, and the like, where the loan would be collateralized by the property up for auction and funded at escrow closing, are NOT acceptable. Capital call agreements, investor equity commitments, and the like, are evaluated on a case- by-case basis. The acceptance of any proof of funds documents are made at the sole and absolute discretion of RealINSIGHT Marketplace. For further information, please visit the Bidder Registration FAQ (https://marketplace.realinsight.com/faq-bid-registration).

AUCTION DATE The Auction end date is set for May 26th.

RESERVE AUCTION This will be a reserve auction and the Property will have a reserve price (“Reserve Price”). The starting bid is not the Reserve Price. The seller can accept or reject any bid. All bidders agree to execute the non-negotiable purchase and sale agreement, which will be posted to the electronic data room prior to bidding commencement, should they be awarded the deal. For further information about how to bid, please visit the Bidding page (https://marketplace.realinsight.com/faq-bidding).

CLOSING Following the auction, the winning bidder will be contacted by phone and email to go over specifics of the sale, including the execution of the purchase agreement and all documentation involved in the purchase. The winning bidder must be available by telephone within two hours of the sale. More information can be found on the RealINSIGHT Marketplace website.

CONTACT INFORMATION Ketan Patel Managing Director (410) 598-7595 • [email protected]

DATES Auction Start Date: May 24th Auction End Date: May 26th INVESTMENT SUMMARY | 3 I. INVESTMENT SUMMARY

4|DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

DAYS INN HOTEL | BALTIMO RE INNER HARBOR, MD

Opportunity Overview

e o e f n n Lak r s e Ave. a p H P K . r ell . R HREC Investment Advisors has been retained as the exclusive broker representing a in y Ave d r g o k A R v l d H e. a r e n Mt. fo . ig d r d

R h a e ts A Pleasant R i . H r s A . v i 695 t v d a e e e e Park l r v v . . a e the owner and is pleased to offer to qualified investors the opportunity to acquire s A l to n d B e ern e B w l th y or Pkw n G m n

a y N . a e

R 45 l

w d v t

l . a

e R

. B e h v h

e A . c The Days Inn Hotel Baltimore Inner Harbor (hereinafter referred to as “The Property” r

n d o

o v o l 25 L s B

m r

i te n n.

t t ring L l o p a Seton s Cold S

a i P r 95

r . B 129 a

Institute d 26 G U R or “Hotel”) in Baltimore, MD. The 249-guestroom Days Inn Hotel Baltimore Inner ni

v k er r W P s o k i . a w ty Y b y d a 25 . R L s ib h R er John n t A y e o H Harbor is a nine-story hotel conveniently located directly across the street from the e v 33rd St. l ig Hill l h e Hopkins

i t s . n A G

v . . g e. t d

Univ. r

S e R R

e a s d i

e h

. l

m lp r

Druid t. e a Baltimore Convention Center and Royal Farms Arena in the heart of the historic sea - o S d

a h

u l W Hill Park S y i

n a C h in t . P d t Clifton G . y s Zoo P 695 o A w r a H M v Park i u k i e s l l a . l l u R S d P . y. t port and iconic landmark of the City of Baltimore, the Inner Harbor. Pkw . ns Fall Gwyn Security Blvd. North Ave. 1

M u

122 l t o

n r BALTIMORE

o Gwynns A Coppin e 695 Leakin v

S e

Falls Park . State t Park . COUNTY John The Inner Harbor area contains a variety of restaurants, entertainment venues, at - Univ. Hopkins lin St. 2 Frank Hospital P a t. t Ave. S ap nson ette s dmo ay co tractions, and retails shops. Some of the attractions include the Baltimore Maritime E Oriole Park F 150 P Eastern Ave. kw at Camden y. BALTIMH ORE

i y

l Yards t a

40 n w 95 . u Ave Baltimore S Museum, Maryland Science Center, Port Discovery Children’s Museum, Reginald F. k r c t i h er . 1 M&T Convention d I T re n e. F Center n l n Av 1 Bank er e o n ons H H dm . a n E e a v Stadium r u A n b ns o T e o Lewis Museum of Maryland African American History & Culture, and the National lk r r i v W o e b r r Catonsville a 395 S H e. t e R . r o ol li 95 im n lt Aquarium. Camden Yards (Home of the Baltimore Orioles) and M&T Bank Stadium g a R d P B . Spring Grove a 2 . ta M Hosp. Center d p i v sc W d 372 l o dl B A ater e v vi B t e. e r P s w a at (Home of the Ravens) are also just a short walk from the Hotel. In addition to leisure e nc aps c w h o h R t ive u r

University o of Maryland S Dundalk demand, the Hotel benefits from its central location in the economic center in Mary - Baltimore Co. 157 Campus .

895

l e South- s land (Baltimore), as well as the second-largest seaport in the Mid-Atlantic. Baltimore’s s u West 173 695 Patapsco Halethorne R Area Park . Valley d R unique blend of academic, government, and business institutions form the foundation State Park e Brooklyn v ro tt 195 G Park e co ell Curtis S B is ge Bay c id for a diverse economy, with six key industry sectors presenting future growth oppor - R n an r r B Sparrows F ey Pumphrey K tunities – financial and professional services, health and bioscience technology, cul - 95 295 Point Northrop Grumman 695 ture and tourism, information and creative services, logistics, and adv anced Ciena 170 648 . vd Bl GSA n manufacturing – all benefiting the Hotel’s performance. to Depot ng hi as W 97 re o 295 B Given the highly dynamic nature of the surrounding trade area as well as the Prop - erty’s central location in the Inner Harbor, this is an investment opportunity for buyers Terms of Sale looking to acquire an asset with strong operational upside. Over $1.7 million in • Process: HREC will conduct Ga typical sales and marketing process that will capital expenditures was spent since 2015 and following guestroom renovations, a include a “call for offers” and a “call for best-and-final offers.” However, the new owner should be able to increase rate, further penetrating the market well be - owner reserves the right to execute on preemptive bids. yond its current 117.3% index rank in the Nov 2020 TTM period (101.9% in YE • Price: Please contact Ketan Patel ([email protected]) at (410) 598-7595 for 2019). The Hotel presents significant growth opportunities from both a top and bot - pricing guidance and any other questions regarding the terms of sale. 2 tom-line standpoint. Through streamlining expenses to industry standards, an investor • Interest: Fee Simple and Unencumbered by Brand, Management, and Debt will be able to drive revenue through to the bottom line and create significant cash • Transaction Capitalization: HREC ‘s Capital Market Group is available return to equity. The Property is offered as fee simple, unencumbered by brand, man - to assist buyers with debt financing options . agement, and debt, at a significant discount to replacement cost.

INVESTMENT SUMMARY | 5 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Investment Highlights

Fee Simple Interest Investment Opportunity Offering at a Discount to Replacement Cost The Property presents an excellent opportunity to acquire a hotel in Baltimore’s Inner Harbor as fee simple. To build a new hotel such as the Days Inn would easily exceed $200,000 per room. Therefore, an investor is presented with the opportunity to acquire the Hotel as a basis below replacement cost.

Offered Unencumbered by Brand, Management, and Debt The Hotel is being offered unencumbered by a brand, management agreement, and debt. An investor has the ultimate flexibility in branding or alternative use and possesses the opportunity to bring in a new management company or act as an owner/operator to revamp the operations strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.

Opportunity to Reduce Expense Ratios to Industry Standards, Rethink the F&B/Banquet Space, and Increase Rate Following the Completion of the Change-of-Ownership PIP and Guestroom Renovations There is significant upside opportunity for a new owner to create NOI flow through well beyond historical levels through HISTORICAL CAPEX BREAKDOWN its multiple income channels including two restaurants, paid parking, and meeting room rental. Year Cost

Over $1.7 Million Spent in Capital Expenditures Since 2015 2015 $175,790 While opportunity exists to complete a guest-facing rooms renovation, the major systems, physical plant, and aesthetic 2016 $211,750 features of the Hotel have been extremely well-maintained over its history. Since 2015, the owner invested over $1.7mm 2017 $418,717 in extensive capital expenditures. The previous capital expenditures from current ownership will reduce an investor’s all- 2018 $291,690 in cost basis. An opportunity therefore exists to improve ADR and add value through targeted capital investment in 2019 $346,041 guest-facing rooms areas. 2020 $302,440

Total $1,746,428

Source: Property Ownership 6|DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Dominant STR Market RevPAR Index Ranking Since the YE 2018 Period, the Hotel outperformed its competitive set. Most recently in the Nov 2020 TTM Period, the Hotel achieved a 117.3% RevPAR Index Rank.

Days Inn Economy Brand Affiliation The Days Inn brand is internationally recognized as a member of Wyndham Hotels & Resorts. Wyndham is one of the largest and most respected hotel companies in the world with over 9,000 hotels located in over 80 countries. As part of the Wyndham family, the Property benefits from its economy branded affiliation in a market with many higher chain scale hotels, allowing the Property to capture more than its fair share of price-conscious travelers.

AAA Location Surrounded by Robust & Diversified Year-Round Demand The Hotel’s strategic location along the Interstate-95 corridor between New York and Washington D.C. allow the Property to benefit from the many major companies in Downtown Baltimore drawn to the area by the highly educated workforce. Corporations headquartered in Baltimore include Carefirst, Legg Mason, Under Armor, T Rowe Price, and Exelon. Baltimore features a strong healthcare presence, led by the schools and top-ranked hospitals/medical systems of the University of Maryland Baltimore and Johns Hopkins University. In addition to a diverse business climate, Baltimore has become a very popular tourist destination, boasting an abundance of attractions proximate to the Hotel.

Excellent Accessibility Less than Five Minutes from Interstate 95 (Main East Coast Highway) in Baltimore’s Inner Harbor The Hotel features high visibility with superior proximity to mass transportation, Downtown Baltimore, and the area’s top demand generators due it’s location in the Heart of Bal - timore’s Inner Harbor. Sixty percent of all visitors to Baltimore – 14.5 million annually – spend time in the Inner Harbor, which has been considered one of the region’s most treasured cultural, entertainment, and retail destinations for the past 30 years. The Property also benefits from proximity to Baltimore’s central business district, which has historically generated a stable base of corporate and group demand.

The recently renovated Baltimore Convention Center is located adjacent to the Hotel, providing 300,000 square feet of adjoining exhibition space, approximately 85,000 square feet of meeting space (50 rooms), and an all-purpose 36,672 square foot ballroom allowing the Center to be the premier convention center in the Mid-Atlantic region. The Property is also located one block from the Camden Yards Sports Complex, which is comprised of the Major League Baseball Stadium – Oriole Park at Camden Yards – and the National Football League Stadium of the Baltimore Ravens – M&T Bank Stadium. Additionally, the Hotel is adjacent to Royal Farms Arena and surrounded by the many restau - rant, entertainment venues, and other attractions in the historic seaport. Some of the Inner Harbor attractions include the Baltimore Maritime Museum, Maryland Science Center, Port Discovery Children’s Museum, Reginald F. Lewis Museum of Maryland African American History & Culture, and the National Aquarium.

The surrounding area includes massive residential development projects such as One Light Street and 10 Light Street. As well as projects like Port Covington, a 235-acre master- planned, mixed-use redevelopment project, with a prime location on the waterfront in Baltimore City. As one of the largest urban revitalization efforts in the United States, this transformative project will include: up to 18 million square feet of new, mixed-use development; 2.5 miles of restored waterfront; and 40 acres of parks and green space.

INVESTMENT SUMMARY | 7 II. PROPERTY OVERVIEW

8|DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Property Overview

The Days Inn Hotel Baltimore Inner Harbor is located near millions of dollars in development juxtaposed with the scenery of the city’s historic district. The Hotel offers 249 guestrooms, in the heart of Baltimore’s Inner Harbor next to a public parking facility.

Address 100 Hopkins Place Baltimore, Maryland 21201

Ownership Interest Fee Simple

Units 249

Stories 9

Meeting Space Over 1,000 Sq. Ft. (Divisible into Three Sections)

Food & Beverage Harbor Grill Java Café Buffet Breakfast Bar

Features & Amenities Banquet Facilities Business Center Fitness Center Free WiFi Laundry Facilities Meeting Room Onsite Parking Outdoor Pool Sundries/Mart

PROPERTY OVERVIEW | 9 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD Guestrooms GUESTROOM BREAKDOWN Each of the Hotel’s gue - Type Count strooms are 100% non- smoking and feature free King 17 WiFi, a microwave, and re - ADA Queens 14 frigerator. Accessible rooms Queen 29 are available. Double Double 189 Total 249

Source: Property Ownership

10 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Food and Beverage The Hotel features two dining options located onsite: (1) traditional American fare at Harbor Grill, and (2) the Java Café. Additionally, breakfast and banquet facilities are available for guests.

PROPERTY OVERVIEW | 11 III. BALTIMORE, MD – AREA OVERVIEW

12 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD C

G DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Se Owings minary Ave. Rosewood Mills 131 Graham The City of Baltimore is located in State Center 129 130 Hampton Memorial National Park Rd. y Hist. Site e s ll e 140 a l r g V . n Sprin a t 695 Gree h S northcentral Maryland at the head of C Jo Goucher pp a R College Aberdeen d. 567 1 Riderwood . t S Al G Proving n legh o xto R s eny A e. u u v ch R d le . r e Ground r the Patapsco River, an arm of the a R h B e i C l v st 133 Towson d 795 er 134 Bur . s ke Ave. . to Baltimore y w w B n Medical Towson k e R ay P gh tw . 25 l McDono Rd. d el 695 d l Center Chesapeake Bay. It is the second . re B t R o State g mo ur n n lti Co a i Ba d Robert E. University k l A Sheppard er W O Lee Park ve. P hi te M & Enoch ar Pratt Hospital sh B lvd. largest seaport in the Mid-Atlantic Parkville 83 . 139 d G R d r r e o e f Randallstown n Lak r situated approximately 40 miles s e Ave. a p H P K . r e . R a in lly Ave d

r g o k A R 125 v l d H e. a r e n Mt. fo . ig d r d

R h a e ts A Pleasant R i . H r s A . v i 695 t v d a e e northeast of Washington, DC. e e Park l . r v v . . a e d s A l R to n d B t e ern e B r w l th ou y or Pkw C m n G n

ld a y

O N . a e

R 45 l

w d v t

l . a

e R

. B e h v h

T e A . c Baltimore is the largest city and

r W n d o i o v o l 25 L nd s B

s m r or i te n n.

M t t ring L l o p i a Seton s Cold S

l a P i l R r 95 r . d B 129 . a Institute d 26 G U R ni v k economic center in Maryland and er r W P s o k i . a w ty Y b y d a 25 . R L s ib h R er John n t A y e o H e v 33rd St. l ig Hill l h e Hopkins

i t s . n A G

v . . g

e t functions as the north-eastern hub of . d

Univ. r

Western S e R R

e a s d i

Area e h

. l

m lp r

Druid t. e a

Park o S ad h

u l W Hill Park S y i

n a C h in t . P d t Clifton G . y s Zoo P 695 o A w r a H the Baltimore-Washington M v Park i u k i e s l l a . l l u R S d P . y. t Pkw . ns Fall Gwyn Security Blvd. 1 North Ave. metropolitan area. With hundreds of F

M u

122 l t o

n 70 r BALTIMORE

o Gwynns A Coppin e 695 Leakin v

S e

Falls Park . State t Park . COUNTY John identified districts, Baltimore has Univ. Hopkins lin St. 2 Frank Hospital P 40 a t. t Ave. S ap nson ette s dmo ay co Patapsco E Oriole Park F 150 P been dubbed a “city of Eastern Ave. kw Valley at Camden y. BALTIMH ORE

i y

State Park l Yards t a

40 n w 95 . u Ave Baltimore S ck r t i h er . 1 M&T Convention d I T neighborhoods” and has been re n e. F Center n l n Av 1 Bank er e o n ons H H dm . a n E e a v Stadium r u A n b ns o T e o lk r r i v W o e b r r Catonsville a S recently nicknamed “Charm City.” 395 H e. t e v R . r A o ck ol Frederi li 95 im ng lt R a d P B 144 . Spring Grove a 2 . ta M d p . Hosp. Center i v s W d l c d The charm of Baltimore is attributed 372 o l B A ater e v vi B Taylor t e. e r P s w a at Manor e nc aps c w h o h R Hospital t ive u r

University o of Maryland S Dundalk to its historical significance, with 72 Baltimore Co. 157 Campus .

895

l M e South- s designated historic districts across o n s tg u West 173 695 o R m e Patapsco Halethorne Area ry Park . R Valley d d R Brooklyn . State Park e v the city to commemorate its past. ro tt 195 G Park o lle Curtis Sc Be s e Bay ci dg Rockburn n ri ra B Branch F y Sparrows The city was home to Edgar Allan e Park Pumphrey K 95 295 Point Northrop Grumman Poe and Billie Holiday, played an University 695 Ciena of Maryland 100 Animal 170 648 Husbandry d. important role in the War of 1812, v Bl GSA Farm n to Depot ng hi as W 97 re o and was the origin of Francis Scott m ti al B 295 Baltimore 100 Washington 95 International Key’s “Star-Spangled Banner” in 1 Airport 173

10 addition to several other historical

Dorsey Rd. Glen Arundel Burnie Mills accomplishments.

1Baltimore’s Inner Harbor was once the second leading port of entry for immigrants to the United States and a major manufacturing center. After a decline in manufacturing, industrialization and rail transportation, the city shifted to a service-oriented economy with Johns Hopkins Hospital and Johns Hopkins University now serving as two of the city’s

top employers. Today, Baltimore is known for health and science, as well as a strong educational presence. Several corporations operate out of Baltimore including Excelon, M&T Bank, Under Armor, McCormick and Company and T. Rowe Price. AREA OVERVIEW | 13 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

In addition to the city’s strong business climate, Baltimore has become a very popular tourist destination. In 2017, the city hosted 26.2 million domestic person trips, who collectively spent approximately $5.7 billion. The city boasts an abun - dance of attractions, such as the Baltimore Symphony Orchestra, Hippodrome Theater, Maryland Film Festival, National Aquarium, Maryland Zoo, and the B&O Railroad Museum. Additionally, Baltimore is home to numerous professional National Aquarium sports teams, including the Baltimore Orioles and the Baltimore Ravens, who won

the National Football League Super Bowl Championship in 2012.. M&T Bank Stadium Baltimore Convention Center

DEMAND GENERATORS

Demand Generator Distance from Property

Royal Farms Arena 0.2 miles Baltimore Convention Center 0.3 miles Inner Harbor 0.4 miles Harborplace Pavilions Redevelopment 0.4 miles Bromo Seltzer Art Tower 0.4 miles UMD Biopark 0.5 miles National Aquarium 0.6 miles Oriole Park At Camden Yards 0.7 miles Maryland Science Center & Imax Theater 1.2 miles M&T Bank Stadium 1.5 miles Horseshoe Casino 2.0 miles

UMD Biopark

Horseshoe Casino Royal Farms Arena

14 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD ATTRA CTIONS 1 Inner Harbor 2 The Ba ltimor e Convention Center 3 Royal Farm s A rena 4 University of Maryland Baltimore 5 Orioles Park Camden Yards M&T Bank Stadium 1 Light Street 6 7 National Aquarium 8 Horseshoe Casino DEVELOPMENT 1 1 Light Street 2 10 Light Street 3 UMD BioPark 4 414 Light Street 1 5 Under Armor Royal Farms 10 Light Street Arena 3 2 6 Harbor Point 3 4

2 1 7 5 4

414 Light Street

6 6 5 8 Inner Harbor Orioles Park at Camden Yards Univ. of Maryland Baltimore Under Armor

Harbor Point

AREA OVERVIEW | 15 Key Market Statistics & Notes

Baltimore was founded in 1729 and is the largest US seaport in the Mid-Atlantic.

Due to Baltimore’s close proximity to Washington, DC , it has become home to many Defense Contractors, Information Technology professionals, and the Professional, Scientific, and Technical (PST) industry.

More than 200,000 Cyber Security professionals reside within Baltimore-Washington with upwards of 75,000 in the Greater Baltimore/Central Maryland area.

Johns Hopkins Hospital is consistently ranked among the top hospitals in the country.

University of Maryland Medical Center and Johns Hopkins Hospital maintain approximately 11,900 full-time, part-time, and medical/doctoral student staff members between the two hospitals.

Baltimore is home to the Under Armor Headquarters, National Bohemian Brewery, and the first Guinness Brewery in the US.

Baltimore, famous for its crabs and seafood, ranked 2nd on Zagat’s list of Best Food Cities in 2015.

16 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Demand Generators

Inner Harbor The Hotel is located in the heart of the Inner Harbor - a historic seaport, tourist attraction and landmark of Baltimore. Described as the “model for post-industrial waterfront redevelopment,” the Harbor played a major role in the development of the city’s economy in its earlier years. When economic changes ended the freight and passenger use of the Inner Harbor, the waterfront gradually transformed with award-winning parks and plazas. Today, the Harbor is home to several famous Baltimore attractions, such as the National Aquarium, bay cruises and water taxi services, the Maryland Science Center, World Trade Center, Baltimore Maritime Museum, Fort McHenry National Monument, and over 120 dining outlets. AREA OVERVIEW | 17 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Camden Yards Sports Complex: Baltimore Orioles & Ravens Stadiums The Camden Yards Sports Complex is steps away from the Hotel and home to Oriole Park at Camden Yards and M&T Bank Stadium. The stadiums have a combined capacity of over 110,000 people. The Ravens play at least 10 home games each year and home football game attendance has averaged over 70,000 each year since 2008. The M&T Bank Stadium was built at a cost of $220 million to seat over 71,000 fans with 119 suites. The stadium boasts the latest in technology, extraordinary amenities and a stunning view of the city’s skyline. In addition to football games, the stadium hosts several other notable sporting events, concerts and special events throughout the year. The Orioles play approximately 100 home games a year and typical baseball home game draws as many as 45,000 attendees. In July of 2019, Oriole Park hosted its first ever concert. Ownership believes the sold-out concert can be a model for future mar - quee events. Major headliner concerts, food festivals, Summer music series and other events are expected in 2021. 18 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

The National Aquarium The National Aquarium in Baltimore houses sharks, dolphins, rays, and tropical fish among the more than 17,000 creatures in naturalistic exhibits. The aquarium features a walk-through rain forest, an exciting live-action dolphin show, a 4-D Immersion Theatre, and an Australian exhibit featuring a 35-foot waterfall. The National Aquarium is Baltimore’s most visited attraction, with over 1.6 million guests annually. The Aquarium generates approximately $455 million in economic activity across the state, with an impact of more than $360 million within Baltimore City annually. Beginning in 2013, the aquarium embarked on a $50 million, ten-year redevelopment plan which included updating exhibits, facilities, and building a new animal care and rescue center. These new additions are expected to increase aquarium attendance by more than 200,000 people annually.

AREA OVERVIEW | 19 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Fort McHenry Fort McHenry is a coastal star-shaped fort situated at the tip of Locust Point and is best known for its role in the War of 1812, when it successfully defended Baltimore Harbor from an attack by the British navy in Chesapeake Bay. The valiant defense of this fort is what inspired Francis Scott Key to write the “Star-Spangled Banner,” America’s national anthem. While the Fort once played a major role in the defense of the nation, today it is a vital center of recreation for Baltimore locals and a prominent tourist destination.

20 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD Center Stage Center Stage, located just over one mile from the Hotel, is an ar - tistically driven institution committed to engaging, entertaining, and enriching audiences of today and tomorrow through joyous and bold performance. The professional, non-profit theater com - pany is dedicated to the creation and presentation of a dynamic and diverse array of new and classic work, and each year hosts an audience of more than 100,000 in its historic home. With its signature focus on civic and community engagement, Center Stage, The State Theater of Maryland, enters its second 50 years with a commitment to exploring how art and entertainment com - municate in the 21st century.

Maryland Science Center & IMAX Theater The Maryland Science Center is a cultural institution that was founded in 1797 and thrives as one of the oldest continually op - erating science societies and museums in the U.S. A major ex - pansion and renovation of the entire facility was completed in 2004. It attracts 400,000 visitors annually, with science and engi - neering educational programs for children, families, and adults. It is also a state-funded science education institution because of its planetarium.

Light City Light City, which was launched in Baltimore in March 2016, was the first large-scale, international light, music and innovation fes - tival in the United States. This free festival drew approximately 400,000 people over seven nights, of which 30% came outside of the state of Maryland. In 2017, the festival contributed $44.3 million to its local community and attracted an estimated 470,000 night-time visitors. The Light City festival takes place throughout the city of Baltimore, but most of the events, including the one and a half mile BGE Light Art Walk and stages hosting the live concerts and DJ sets, are located along the waterfront of Balti - more’s Inner Harbor.

AREA OVERVIEW | 21 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Royal Farms Arena The Royal Farms Arena is the primary arena, concert and entertainment destination in Baltimore. Located adjacent to the Hotel, this award-winning venue has hosted The Beatles, Beyoncé, The Rolling Stones, and other high-profile acts. At a capacity of 14,000 people per event, it draws approximately 800,000 visitors annually. Opened in 1962, the arena has drawn hundreds of thousands of visitors through the decades and now stands as the center of city and regional discussions and plans for an expansion and renovation.

Horseshoe Casino The $442 million Horseshoe Casino is the second largest casino in Maryland with a 122,000-square-foot gaming floor. The urban two-story facility features video lottery terminals, table games, and a World Series of Poker room. Horseshoe's 20,000-square-foot Baltimore Marketplace features Charm City food outlets, three premier restaurants, and several bars and lounges. Late 2018, the Horseshoe an - nounced a multi-year marketing deal making it the official casino partner for the Baltimore Ravens. The Paramount Baltimore is a new entertainment district under - way between the Casino and the Camden Yards Sports Complex. At completion, the venue will be roughly 80,000-square-foot and be able to seat approximately 3,750 people. An old warehouse in the 1300 block of Warner Street will be torn down for the Paramount, next to the planned Top Golf facility.

Power Plant Live Power Plant Live! is Baltimore’s premier dining and entertainment destination lo - cated just two blocks from the Downtown Inner Harbor. Power Plant Live! features multiple restaurants, bars, nightclubs, as well as indoor and outdoor concert space. The entertainment complex gets its name from the nearby "Power Plant" (Pratt Street Power Plant) building and was completed in 2003. The complex is open year-round and offers a variety of Food and Beverage Festivals, Concerts, Bar Crawls, watch parties and more.

22 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Corporate Demand

Baltimore has six key industry sectors which present future growth opportunities – financial The following table to the are the largest employers in Baltimore: and professional services, health and bioscience technology, culture and tourism, information and creative services, logistics, and advanced manufacturing. The Baltimore MSA is home to BALTIMORE MAJOR EMPLOYERS seven Fortune 1,000 companies’ headquarters, which encompass industries from finance to Company Size Category industrials to sportswear. Companies such as Ciena, Colfax, Exelon-Constellation Energy, Legg Johns Hopkins University 27,095 Mason, McCormick & Co, T. Rowe Price, Under Armor, and W.R. Grace call Baltimore their UMD Medical System 22,533 home. Its unique blend of academic, government, and business institutions form the founda - Johns Hopkins Health System 22,290 tion for a diverse economy. Baltimore City’s 13,300 businesses employ 272,000 workers and Medstar Health 12,385 over 400 of these businesses have 100 or more workers. More than 60 federal agencies and Northrop Grumman Corp. 10,400 research labs are within 30 miles, bringing substantial federal spending and jobs to the city. Lifebridge Health 10,104 For example, Johns Hopkins University leads all U.S. universities in federal research dollars Wal-Mart Stores Inc. 7,500 spent on research and development, at over $2.4 billion. The city has two state-of-the-art Giant Food Llc 5,357 biotechnology business parks, and numerous other business and industrial parks. As Baltimore Mercy Health Services 5,015 Exelon Corp. 4,811 is home to 13 colleges and universities, businesses have great access to a well-educated, T. Rowe Price Group Inc. 4,806 young-adult population. The Port of Baltimore, Foreign Trade Zone #74, and Enterprise Zone Sheppard Pratt Health System 4,647 are significant economic engines for the region. The Port of Baltimore is the number one roll- Amazon.Com Inc. 4,500 on/roll-off port in the U.S.; Foreign Trade Zone #74 is a non-contiguous duty free area with Anne Arundel Health System 4,000 more than 1,200 acres; and the Enterprise Zone is the state’s largest (13,453 acres) and is one Abacus Corp. 3,850 of only two statewide providing Focus Area property and income tax benefits. Under Armour Inc. 3,700 United Healthcare 3,668 Baltimore County is home to more than 21,000 businesses. Baltimore’s top employers are a Home Depot Inc. 3,470 diverse assortment of governmental entities, private corporations, and academic institutions. Target Corp. 3,420 The following table to the are the largest employers in Baltimore:

AREA OVERVIEW | 23 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Baltimore Convention Center 300,000 SQ. FT. 85,000 SQ. FT. 36,672 SQ. FT. of adjoining exhibition space of Meeting Space (50 rooms) All-Purpose Ballroom The recently renovated Baltimore Conven - tion Center, adjacent to the Property, pro - vides 300,000 square feet of adjoining exhibition space, approximately 85,000 square feet of meeting space (50 rooms), and an all-purpose 36,672 square foot ballroom allowing the Center to be the premier con - vention center in the Mid-Atlantic region.

The tourism and convention bureau in - creased its city-wide events: those that use the convention center and account for at least 1,200 bookings per night for 2019. The bureau booked 24 citywide conventions for 2018 with an estimated economic impact of $117.6 million. That number grew to an esti - mated 29 citywide events in 2019 with an economic impact of approximately $157.3 million.

Moving forward, to compete with similar size cities like Philadelphia, Washington D.C., Pittsburgh, and Nashville for crucial conven - tion business, the stadium authority report recommends increasing the center’s square footage by 500,000 to 1.7 million, including an increase in exhibit space from 300,000 to at least 400,000 square feet. All of the various layouts and configurations considered by the stadium authority call for the demolition of the center’s older East Building. Visit Baltimore had several new convention groups booked for 2019, including Society for Research in Child Development, American Society for Healthcare Risk Management, Association for Molecular Pathology, the American Osteopathic Association and The College Board.

24 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD Johns Hopkins Hospital

Healthcare

Baltimore enjoys a stable and growing base of health sciences research at Johns Hopkins University (JHU) and hospital system, University of Maryland and its medical sys - tem, and the ecosystem of medical device companies and incubators.

Johns Hopkins Hospital and Health System The Johns Hopkins Hospital is the teaching hospital and biomedical research facility of Johns Hopkins School of Medicine. The Johns Hopkins Hospital Ranked Among the Top three US Adult Hospitals by U.S. News & World Report. Out of more than 4,600 hospitals assessed, The Johns Hopkins Hospital ranked #1 in Maryland and #3 in the nation on U.S. News & World Report's 2019–20 Best Hospitals list. Johns Hopkins is a 1,777 patient-bed general medical and surgical facility located on a five-acre site is two miles from the Hotel. The John Hopkins Health System is one of the largest employers in Baltimore, with over 2,920 fulltime faculty, 1,250 part-time faculty, and 1,270 medical and doctoral students.

AREA OVERVIEW | 25 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

University of Maryland Medical System The University of Maryland Medical System (UMMS) was created in 1984 when the state-owned University Hospital became a private, non-profit organization. Today, it has evolved into a multi-hospital system with academic, community and specialty service missions reaching every part of the state and beyond. UMMS is a national and regional referral center for trauma, cancer care, neuro care, cardiac care, women's and children's health and physical rehabilitation. UMMS also has one of the world's largest kidney transplant programs, as well as scores of other programs that improve the physical and mental health of thousands of people daily. The UMMS has 14 affiliate hospitals, 2,593 licensed beds, 28,113 employees, and 3,500 affiliated physicians. In 2018 UMMS had 122,309 hospital admissions, 1,530,470 outpatient visits, 374,853 emergency visits, 75,274 outpatient surgical cases, and generated $4.9 billion in annual revenue. The University of Maryland Medical Center (UMMC) is part of the system and is a 767-bed hospital located one half mile from the Property. The hospital employs approximately 6,500 workers as well as 1,000 attending physicians and provides training for about half of Maryland's physicians and other health care professionals.

MedStar Health As the largest healthcare provider in Maryland and the Washington, D.C. region, MedStar’s ten hospitals, the MedStar Health Research Institute and a comprehensive scope of health-related organizations are recognized regionally and nationally for excellence in medical care. MedStar has one of the largest graduate medical education programs in the country, training 1,100 medical residents annually, and is the medical education and clinical partner of Georgetown University. MedStar is a $5 billion, not-for-profit, re - gional healthcare based in Columbia, MD, and is one of the largest employers in the region with 31,000 associates and 5,400 affiliated physicians.

26 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

LifeBridge Health LIST OF HOSPITALS IN BALTIMORE LifeBridge Health is a regional health care organization based in Baltimore and Baltimore County. Baltimore VA Medical Center As the largest, most comprehensive and most highly respected provider of health-related services Bon Secours Hospital to the people of the northwest Baltimore region, LifeBridge Health advocates preventive, wellness Johns Hopkins Hospital Johns Hopkins Bayview Medical Center and fitness services and provides programs to educate and support the communities it serves. Kennedy Krieger Institute LifeBridge consists of four specialty centers: Sinai Hospital, Northwest Hospital, Carroll Hospital, Levindale Hebrew Geriatric Center and Hospital and Levindale Hospital. LifeBridge has over 2,900 physicians, 100 neighbourhood locations, and MedStar Good Samaritan Hospital more than 120 LifeBridge physicians received recognition in Baltimore magazine’s 2018 “Top Doc - MedStar Harbor Hospital MedStar Union Memorial Hospital tors” listing. Mercy Medical Center Mt. Washington Pediatric Hospital Mercy Medical Center R Adams Cowley Shock Trauma Center St. Agnes Hospital Mercy Medical Center is a 281-bed general medical and surgical facility located less than a mile Sinai Hospital of Baltimore from the Hotel. Mercy recently reported approximately 16,318 admissions, 7,300 annual inpatient University of Maryland Medical Center and 20,700 outpatient surgeries, and 65,700 visits to the emergency room. Mercy Medical Center University of Maryland Medical Center Midtown Campus has been ranked by US News and World Report as a 2018-19 Top Hospital in Maryland. University of Maryland Rehabilitation & Orthopaedic Institute

AREA OVERVIEW | 27 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Education Presence

More than 66,000 students attend Baltimore City’s 13 accredited two-year or four-year colleges and universities. Thousands of students that graduate from these schools each year stay in the Baltimore area to create a strong workforce seeking positions in Baltimore City’s key industries.

Johns Hopkins University Johns Hopkins University, founded in 1876, is a privately endowed coeducational research university located four miles from the Property. Johns Hopkins was the first true research university in the Western Hemisphere stressing, along with teaching, the advancement of knowledge through research. John's Hopkins was ranked #10 in national universities according to U.S. News & World Report's 2020 Best Colleges report. It has a total undergraduate enrolment of 6,109, its setting is urban, and the campus size is 140 acres. Johns Hopkins University is divided into nine schools, five of which serve undergraduate and graduate students. Hopkins’ graduate programs include the top-ranked Bloomberg School of Public Health and the highly ranked School of Education, Whiting School of Engineering, School of Medicine and the well- regarded Peabody Institute for music and dance.

28 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

University of Maryland – Baltimore UMB is a public institution founded in 1807 with an undergraduate enrollment of 929 set on 61 acres of urban campus. UMB UNIVERSITIES & COLLEGES enrolls 6,500 students in six nationally ranked professional schools including medicine, law, dentistry, pharmacy, nursing, and Private social work. The University offers 50 doctoral, masters, baccalaureate, and certificate programs and confers most of the pro - The John Hopkins University fessional practice doctoral degrees awarded in Maryland. UMB is comprised of 65 buildings in West Baltimore near the Inner Baltimore International College Harbor, half a mile from the Hotel. The University is a leading partner in the redevelopment of Baltimore’s Westside. UMB's ex - Loyola University Maryland tracurricular funding totals $500 million, and each core faculty member brings nearly $1 million in research grants yearly. The Maryland Institute College of Art University of Maryland BioPark is Baltimore's largest biotechnology group, which energizes the commercialization of new drugs, St. Mary's Seminary and University Notre Dame of Maryland University diagnostics, and devices, giving 850 research scientists and entrepreneurs the space to create and collaborate. The Peabody Institute of John Hopkins University Stratford University (Baltimore Campus) Loyola University Founded in 1852, Loyola University Maryland has a total undergraduate enrollment of 3,924 set on 80 acres of urban campus. Public Loyola, located approximately four and a half miles north of the Hotel, is a Catholic institution in the Jesuit tradition offering Baltimore City Community College Coppin State University a broad education in the liberal arts. Loyola maintains four campuses in the greater Baltimore metropolitan area and employs Morgan State University approximately 1,100 people. Loyola organizes its academic programs into three schools: The College of Arts and Sciences, University of Baltimore School of Education, and the Sellinger School of Business and Management. Loyola University was ranked #4 in regional University of Maryland, Baltimore universities north according to U.S. News & World Report's 2020 Best Colleges report.

University of Baltimore The University of Baltimore (UB) founded in 1925, is a public undergraduate, graduate and professional University located in the heart of Baltimore situated on 47 acres. UB's schools and colleges provide real world education in business, law, public affairs and the applied arts and sciences. University of Baltimore has a total enrolment of ap - proximately 6,300 and is situated less than two miles from the Property.

Loyola University Maryland The University of Maryland Baltimore University of Baltimore

AREA OVERVIEW | 29 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

New Development

The hotel enjoys a strong location in a nexus of new and exciting redevelopment, including the transformative One Light Street project and the continued progress of the Port Covington development. The following are highlights of recently completed or approved developments that will supplement the diversified economic and lodging demand generators of Baltimore.

Harbor Point Redevelopment Harbor Point is the largest downtown waterfront site currently under development and will be composed of approximately three million square feet of mixed-use space on 27 acres. The neighborhood will feature 9.5 acres of waterfront parks and a continuation of the Inner Harbor promenade along the water’s edge. Each of the projects at Harbor Point will strive for the highest level of LEED certification possible in an amenity-rich environment. Over the next 10 years, Harbor Point will expand on the success of Harbor East. The project details also include 1.6 million SF of office space, 250,000 SF of retail space, 220,000 SF of hotel space, 1,000 residential units, 500+ hotel rooms, and 3,300 parking spaces.

30 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD 10 Light Street DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

10 Light Street Completed in mid - 2016, the 1929 Art Deco style former bank building was transformed into a 35,000-square foot Under Armor Performance Center and 455 luxury rental apartments. The property is one of the most iconic buildings in downtown and became a model for the new urban walkable lifestyle of downtown residents.

414 Light Street Located half a mile from the hotel, the 44-story tower at the former McCormick & Co. spice plant includes 394 apartments, 21,000 square feet of ground floor retail, and a 550-car garage. Questar Development broke ground in March of 2016 and completed January 2019. 414 Light Street is the tallest building in Baltimore.

West Baltimore Poppleton Redevelopment Plan Two new apartment buildings totaling 262 units opened in November 2018 between West Baltimore’s Poe Homes

414 Light Street Public Housing Complex and the University of Maryland’s BioPark. When finished, the development is expected to include approximately 30 buildings, including 3,000 apartment units, retail shops, new roads, and green spaces on 32 acres across Martin Luther King Boulevard from downtown. Rents aren’t set, but 20 percent of the units will be sub - sidized, and 80 percent will be market-rate. They aim to appeal to people working at the biopark and attending school at the University of Maryland, Baltimore. The city approved a $56 million tax increment financing plan to support the project and has sold about $12 million in bonds for the first phase. The entire project is estimated to cost around $900 million and be built out in four phases over the next 15-20 years. About 45 companies and institutes have re-lo - cated in the neighborhood since the medical research park opened about a decade ago, and this plan is designed to make the area a safe and transient place for nearby employees to live, work, shop, and dine.

Port Covington Development Port Covington is a 235-acre master-planned, mixed-use redevelopment project, with a prime location on the wa - terfront, estimated at $5.5 billion. As one of the largest urban revitalization efforts in the United States, this trans - formative project will include: up to 18 million square feet of new, mixed-use development; 2.5 miles of restored waterfront; and 40 acres of parks and green space. The Port Covington master plan includes a 50-acre, 3.9-million sq. ft. global headquarters for Under Armor at the former Port Covington Shopping Center; 1,500,000 sq. ft. of destination, attraction, entertainment, and specialty retail; 500,000 sq. ft. of “maker” and industrial/light manu - facturing space; 200-plus hotel rooms; 1,500,000 sq. ft. of office space (in addition to the Under Armor Global Headquarters); and civic and cultural uses including 40-plus acres of public parks, a public waterfront, and other public facilities. It also includes more than 7,500 residential units, which could total up to 14,000 units comprised of rental and for-sale properties at various price-points, and potential sites for a post office, school, library, fire station, police paddock, and cultural center.

AREA OVERVIEW | 31 East Baltimore Redevelopment Plan M&T Bank Stadium Renovations

East Baltimore Redevelopment Plan According to the Baltimore Business Journal, the Housing Authority of Baltimore City has recruited a group of private developers to assist in the redevelopment of nearly 200 acres of land between Harbor East and John Hopkins Hospital. The redevelopment would also replace 1,300 public housing units and the City Springs elementary school. The Housing Authority has applied for a $30 million grant from the Department of Housing and Urban Development as well as a tax increment financing package worth $250 million if approved. The plan will include retail and office space build-out likely around the Old Town Mall site and a public park on the Perkins Homes site.

East Baltimore Development Initiative (EBDI) Anchored by Johns Hopkins Medical Campus, the East Baltimore submarket has seen more than $1.8 billion in new investment in the 88-acre footprint for a mixed-use revi - talization endeavour funded by both public and private entities. The Campus is home to Johns Hopkins Hospital and the university’s school of medicine, public health, and nursing and generates over $5 billion in economic impact while providing over 37,000 jobs. Additionally, the city government, local businesses, and Johns Hopkins have com - mitted to developing the surrounding community and partnered with East Baltimore Development Inc. (EBDI) to spearhead development efforts- the most recent addition being Eager Park. The $14 million, 5.5-acre park includes an amphitheater, fountain, walking paths, exercise equipment, and playground. The neighborhood is also home to a new Starbucks Opportunity Café and the FastForward 1812; an innovation lab for Johns Hopkins Technology Ventures. The innovation lab includes 23,000-sq. ft. of office, co-working, meeting, and lab space and is part of a larger revitalization project that will eventually expand to include 2,100 units of mixed-income housing.

M&T Bank Stadium Renovations Since 2013, the Baltimore Ravens have invested $45 million to make improvements at M&T Bank Stadium, including advanced Wi-Fi capabilities for fan use, redesigned con - cession stands, concourse upgrades and LED board advances. The organization invested an additional $120 million into the stadium. Those improvements were completed prior to the 2019 season and included the following: • Massive 7,400 SF video boards in each end zone, 124% larger than current end zone boards, featuring the latest technology for optimal video quality • New escalators to upper levels • Four new 1,600 SF video boards in each upper corner of the stadium • Expanded kitchen facilities improving capacity and quality of food • Improvements to club level design, finishes, concessions, and video capabilities

32 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

UMB Health Sciences Facility III Additional Recently Completed and In-Progress Development

• $305 million UMB Health Sciences Facility III • $170 million One Light Street mixed-use development • $150 million Mechanic Centre mixed-use development • $117 million Wills Wharf mixed-use development • $70 million 20-story Canton Tower Class A office space • $40 million Lexington Market redevelopment • The Baltimore Green Network Plan • New development at Tradepoint Atlantic • FedEx Ground opened new 300,000 SF distribution center in 2017 • Amazon is set to open its fourth fulfillment center at the Tradepoint At - lantic development in Sparrows Point • Under Armor $175 million, 1.3 million SF national distribution hub - Opened May 2019

AREA OVERVIEW | 33 Transportation Overview

Port of Baltimore Baltimore is the nation’s leading port for Roll On/Roll Off Vessels, allowing it to handle all types of cargo that enter the U.S. on wheels. The Port of Baltimore is arguably the most diverse port on the U.S. East Coast and in 2019 had a banner year handling a record 43.6 million tons of international cargo, with containers and roll on/roll off totals up (ninth straight year the port ranked number one in the U.S. in vehicles handled). The Baltimore Port’s record performance highlights an increased international and transportation business sector for the city. Baltimore Port is one of only four East Coast ports capable of receiving the supersize ships coming through the newly ex - panded Panama Canal. In 2015, Baltimore won the title of “Most Efficient Container Port” from the Journal of Commerce for averaging 75 container moves per hour per berth, the fastest rate of handling among all US ports.

The Port of Baltimore is currently underway dredging to a 50-foot depth alongside at the Seagirt Terminals, which handles nearly all the Port’s box traffic. The dredging will enable the terminal to handle the mega-box ships and is part of the $32.7 million project to construct a second 50-foot deep berth at the terminal – expected to be completed in early 2021.

34 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Air Baltimore/Washington International Thurgood Marshall Airport (BWI) is located nine BWI PASSENGER STATISTICS miles south of downtown Baltimore and 32 miles northeast of Washington, D.C. It is the busiest airport in the region, serving over 25 million passengers. BWI is situated on 45.4 Year Total Passengers % Change acres and consists of five concourses (four domestic, one international/wing), 70 jet 2011 22,450,082 - gates, two gates dedicated to commuter aircraft, and hosts a total of 36 airlines including 2012 22,734,074 1.3% commuter, charter, and cargo airlines. BWI reports an average of 567 number of daily 2013 22,547,041 -0.8% operations and 688 average number of commercial operations. 2014 22,365,368 -0.8% 2015 23,902,300 6.9% 2016 25,195,026 5.4% Highway 2017 26,436,345 4.9% Baltimore is serviced by three major interstate highways - I-95 (adjacent to the Hotel), I- 2018 27,145,631 2.7% 83, and I-70. In addition to these interstates, Baltimore has two major tunnels traversing 2019 26,993,896 -0.6% the city, and other major roadways such as US 1 and US 40. State Routes in the city all Trailing 12-Month February 2019 26,948,046 - traverse along surface streets, with the exception of Maryland Route 295. Trailing 12-Month February 2020 27,234,320 1.1%

Public Transportation Public transit in Baltimore is mostly provided by the Maryland Transit Administration abbreviated "MTA Maryland” and Charm City Circulator. MTA Maryland operates a comprehensive bus network, including several local, express, and commuter buses, a small light rail network connecting Hunt Valley in the north to BWI Airport and Cromwell in the south, and a subway line between Owings Mills and Johns Hopkins Hospital. The Charm City Circulator operates a fleet of diesel and hybrid vehicles in addition to several bus lines and shuttles. Baltimore is a top destination for Amtrak along the Northeast Corridor, and the city’s Penn Station is one of the busiest stations in the country.

Train Baltimore Pennsylvania Station (Penn Station) located approximately a mile and a half from downtown, generated $94.3 million in revenue in 2018 with an annual ridership of 1,025,469 passengers. Penn Station is served by Amtrak, MARC, and the Maryland Transit Administration light rail system. Penn Station is the northern terminus of the Light Rail's Penn-Camden shuttle, which connects the Mount Vernon neighborhood with downtown; the southern terminus is Baltimore's Camden Station. MARC offers daily service between Washington, D.C., and Perryville, MD. Amtrak Acela Express and Northeast Regional trains from Penn Station serve destinations along the Northeast Corridor between Boston and Washington, D.C. Some Regional trains from the Penn Station continue into Virginia. The public transit system is extremely popular, as many Baltimore employees commute to work, as the system averages over 226,000 trips per weekday.

AREA OVERVIEW | 35 IV. HOTEL MARKET OVERVIEW

36 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Competitive Set

The Property competes most directly with six other hotels. These properties have been selected by management for the competitive set based on location, size, market

positioning and overall quality of facilities. The competitive set, including the Property, totals 1,975 guestrooms. The following table identifies these hotels.

A Chase St te et ay af PRIMARY COMPETITIVE SET L M cC u l lo # of Opening h S Hotel Rooms Date t t adison St S d 2 M n v hi l Days Inn Hotel Baltimore Inner Harbor 249 Oct - 1984 lp B 83 o r C J t D e S K n r L t Holiday Inn Baltimore Inner Harbor Downtown 365 Jun - 1964 o r M s a F n l r A e E

v BW Signature Collection Brookshire Suites Inner Harbor 97 Jun - 1984 m

e o n t A Radisson Hotel Baltimore Downtown - Inner Harbor 323 Jun - 1967 v e 40 Lord Baltimore Hotel 431 Dec - 1928 Delta Hotel Baltimore Inner Harbor 150 Jan - 2017

St Crowne Plaza Baltimore Downtown Inner Harbor 360 Jun - 2018 ette Fay Totals 1,975 St H o

w t d S P a ar S ource: Smith Travel Research r b a

d m c Lo

a S t University of

S S t tt Maryland t ra ard St P P Lomb r Medical Center e s i d e Pratt St n t S t

Conway St Oriole Park at Camden Yards M Downtown L Brookshire Suites K 2 Inner Harbor J r B Baltimore lvd

O s te Federal Hill nd Park S t M&T Bank Stadium Patapsco Rive

t 395 S

t Os St K tend ey H wy 2 HOTEL MARKET OVERVIEW | 37

DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Competitive Set Market Results

The table below summarizes the occupancy, ADR, and RevPAR for the defined competitive set for the year end 2017 – December 2019 Year End periods.

Competitive Set Occupancy, ADR & RevPAR

Occupancy ADR RevPAR Year Hotel Comp Set Penet. Hotel Comp Set Penet. Hotel Comp Set Penet.

Dec 2017 YE 56.2% 58.3% 96.4% $116.50 $122.65 95.0% $65.47 $71.50 91.6% Dec 2018 YE 51.8% 49.1% 105.5% $116.66 $113.71 102.6% $60.43 $55.83 108.2% Dec 2019 YE 50.3% 52.2% 96.4% $117.18 $110.78 105.8% $58.94 $57.83 101.9%

% Change ('18-'19) -2.9% 6.3% -8.7% 0.4% -2.6% 3.1% -2.5% 3.6% -5.8%

Source: Smith Travel Research Occupancy ADR RevPAR

60% $130.00 $75.00

$125.00 $70.00 55%

$120.00 $65.00 50% $115.00 $60.00

45% $110.00 $55.00

40% $105.00 $50.00 December December December December December December December December December 2017 YE 2018 YE 2019 YE 2017 YE 2018 YE 2019 YE 2017 YE 2018 YE 2019 YE Hotel 56.2% 51.8% 50.3% Hotel $116.50 $116.66 $117.18 Hotel $65.47 $60.43 $58.94 Comp Set 58.3% 49.1% 52.2% Comp Set $122.65 $113.71 $110.78 Comp Set $71.50 $55.83 $57.83 Penet. 96.4% 105.5% 96.4% Penet. 95.0% 102.6% 105.8% Penet. 91.6% 108.2% 101.9%

38 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD V. FINANCIAL OVERVIEW

The following page provides the historical results of operations for the Hotel for Year End 2017 through Year End 2019. The profit and loss statements, al - though deemed to be accurate, are presented for informational purposes only and should not be relied upon in making a final investment decision with re - gard to the Hotel. In this regard, HREC Investment Advisors and the Owner encourage potential investors to conduct their own research and analysis of the Hotel and the market.

FINANCIAL OVERVIEW | 39 DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD

Historical Operating Analysis

Year YE 2015 % REV $POR $PAR YE 2016 % REV $POR $PAR YE 2017 % REV $POR $PAR YE 2018 % REV $POR $PAR YE 2019 % REV $POR $PAR

Number of Guestrooms: 249 249 249 249 249 Number of Days in Year: 365 366 365 365 365 Occupancy: 57.3% 56.9% 56.2% 51.8% 50.3% Average Room Rate: $116.95 $116.77 $115.59 $115.71 $116.32 RevPAR: $66.96 $66.41 $64.96 $59.94 $58.51 Occupied Rooms: 52,034 51,832 51,077 47,078 45,715 Available Rooms: 90,885 91,134 90,885 90,885 90,885

REVENUES Rooms $6,085,270 81.6% $116.95 $24,439 $6,052,654 81.0% $116.77 $24,308 $5,904,233 79.7% $115.59 $23,712 $5,447,507 79.2% $115.71 $21,878 $5,317,677 81.4% $116.32 $21,356 F&B and Other Income 1 1,369,134 18.4% 26.31 5,499 1,423,665 19.0% 27.47 5,718 1,499,992 20.3% 29.37 6,024 1,429,098 20.8% 30.36 5,739 1,2 11,975 18.6% 26.51 4,867 TOTAL REVENUES $7,454,404 100.0% $143.26 $29,937 $7,476,319 100.0% $144.24 $30,025 $7,404,225 100.0% $144.96 $29,736 $6,876,605 100.0% $146.07 $27,617 $6,529,652 100.0% $142.83 $26,224

DE PARTMEN TAL COSTS 2 Rooms $1,511,571 24.8% $29.05 $6,071 $1,613,130 26.7% $31.12 $6,478 $1,668,804 28.3% $32.67 $6,702 $1,614,184 29.6% $34.29 $6,483 $1,737,030 32.7% $38.00 $6,976 F&B and Other Expenses 1 712,240 52.0% 13.69 2,860 691,300 48.6% 13.34 2,776 645,113 43.0% 12.63 2,591 628,513 44.0% 13.35 2,524 603,076 49.8% 13.19 2,422 TOTAL DEPARTMENTAL COSTS $2,223,811 29.8% $42.74 $8,931 $2,304,430 30.8% $44.46 $9,255 $2,313,917 31.3% $45.30 $9,293 $2,242,697 32.6% $47.64 $9,007 $2,340,106 35.8% $51.19 $9,398

GROSS OPER ATING INCOME $5,230,593 70.2% $100.52 $21,006 $5,171,889 69.2% $99.78 $20,771 $5,090,308 68.7% $99.66 $20,443 $4,633,908 67.4% $98.43 $18,610 $4,189,546 64.2% $91.64 $16,825

UNDIST. OPER ATING EXPENSES Administrative & General $889,687 11.9% $17.10 $3,573 $927,436 12.4% $17.89 $3,725 $987,088 13.3% $19.33 $3,964 $1,059,045 15.4% $22.50 $4,253 $1,015,277 15.5% $22.21 $4,077 Information & Telecom 143,215 1.9% 2.75 575 154,612 2.1% 2.98 621 178,503 2.4% 3.49 717 152,955 2.2% 3.25 614 152,770 2.3% 3.34 614 Management Fee3 223,632 3.0% 4.30 898 224,290 3.0% 4.33 901 222,127 3.0% 4.35 892 206,298 3.0% 4.38 829 195,890 3.0% 4.29 787 Franchise Fees 244,578 3.3% 4.70 982 265,343 3.5% 5.12 1,066 233,666 3.2% 4.57 938 219,824 3.2% 4.67 883 214,263 3.3% 4.69 860 Sales & Marketing 669,916 9.0% 12.87 2,690 666,180 8.9% 12.85 2,675 628,821 8.5% 12.31 2,525 625,540 9.1% 13.29 2,512 586,512 9.0% 12.83 2,355 Property Operations & Maint. 492,254 6.6% 9.46 1,977 501,437 6.7% 9.67 2,014 574,865 7.8% 11.25 2,309 616,493 9.0% 13.10 2,476 627,471 9.6% 13.73 2,520 Utility Cost 312,734 4.2% 6.01 1,256 327,871 4.4% 6.33 1,317 326,035 4.4% 6.38 1,309 321,751 4.7% 6.83 1,292 313,279 4.8% 6.85 1,258 TOTAL UNDIST. OPER ATING EXPENSES $2,976,016 39.9% $57.19 $11,952 $3,067,169 41.0% $59.18 $12,318 $3,151,105 42.6% $61.69 $12,655 $3,201,906 46.6% $68.01 $12,859 $3,105,462 47.6% $67.93 $12,472

GROSS OPER ATING PROFIT $2,254,577 30.2% $43.33 $9,055 $2,104,720 28.2% $40.61 $8,453 $1,939,203 26.2% $37.97 $7,788 $1,432,002 20.8% $30.42 $5,751 $1,084,084 16.6% $23.71 $4,354

FIXED CHARGES Property Taxes $380,834 5.1% $7.32 $1,529 $382,152 5.1% $7.37 $1,535 $384,992 5.2% $7.54 $1,546 $372,072 5.4% $7.90 $1,494 $357,903 5.5% $7.83 $1,437 Insurance 28,729 0.4% 0.55 115 29,185 0.4% 0.56 117 29,052 0.4% 0.57 117 33,565 0.5% 0.71 135 28,268 0.4% 0.62 114 Rent, Misc. Taxes & Other 408,531 5.5% 7.85 1,641 436,116 5.8% 8.41 1,751 502,224 6.8% 9.83 2,017 485,947 7.1% 10.32 1,952 433,425 6.6% 9.48 1,741 TOTAL FIXED CHARGES $818,094 11.0% $15.72 $3,286 $847,453 11.3% $16.35 $3,403 $916,268 12.4% $17.94 $3,680 $891,584 13.0% $18.94 $3,581 $819,596 12.6% $17.93 $3,292

C/F BEFORE RESE RVE $1,436,483 19.3% $27.61 $5,769 $1,257,267 16.8% $24.26 $5,049 $1,022,935 13.8% $20.03 $4,108 $540,418 7.9% $11.48 $2,170 $264,488 4.1% $5.79 $1,062 Reserve for Replacement 3 298,176 4.0% 5.73 1,197 299,053 4.0% 5.77 1,201 296,169 4.0% 5.80 1,189 275,064 4.0% 5.84 1,105 261,186 4.0% 5.71 1,049 NET OPER ATING INCOME $1,138,307 15.3% $21.88 $4,572 $958,215 12.8% $18.49 $3,848 $726,766 9.8% $14.23 $2,919 $265,354 3.9% $5.64 $1,066 $3,302 0.1% $0.07 $13

Note 1: F&B and other Income/Expenses includes the following departments/line items: Harbor Grill, Java Café, Movies, Parking, Postage, Meeting Room Rental, Smoking Fees, and Room Damage. Note 2: Departmental expenses ratios are expressed as a percentage of their respective departmental revenues. Note 3: A base management fee of 3% and a reserve for replacement expense of 4% of total revenues were imputed. Source: Property Ownership

40 | DAYS INN HOTEL | BALTIMORE INNER HARBOR, MD BALTIMORE INNER HARBOR BALTIMORE, MD

For Further Information

KETAN PATEL Managing Director (410) 598-7595 [email protected]

BRENDAN COLLINS Senior Associate (303) 267-0057x112 [email protected]

GREGORY PORTER Senior Vice President – Mortgage Brokerage (760) 438-4401 [email protected]

DANA WEINBERG Corresponding Broker MD License # #636049