Quality Inn Holland 1401 E. Mall Dr. • Holland, OH 43528 NON-ENDORSEMENT & DISCLAIMER NOTICE

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DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

ALL PROPERT Y SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 2 Table of Contents

04 Investment Overview

14 Financial Analysis

19 Competitive Market Analysis

28 Market Overview

03 Investment Overview Marcus & Millichap

17 4 PROPER TY DE TAILS EXECUTIVE SUMMARY

Quality Inn Holland INTEREST OFFERED Franchise Parent Company Choice Hotel Fee simple interest in the Quality Inn Holland, a 133- Franchise Affiliation Quality Inn room hotel located at 1401 Mall Dr. Holland, OH on Year Built 1991 approximately 2.50 acres. Lot Size/Building Area 2.50 Acre

Number of Floors 3

Total Number of Guest Rooms 133 THE OFFERING Corridor 2 floors exterior, 1 floor interior Price: Unpriced

Property: Quality Inn Holland

Highways I-475 Current NOI: $271,005

US Route 20 Current Revenue: $1,018,003 I-80/90

Airports - 6.5 miles PROPERTY TOURS Toledo Executive Airport- 18 miles Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without prior approval.

6 5 P R O P E R TY D E TA I L S

Outdoor Pool Outdoor Parking

Phone for Free Wi-Fi hearing- impaired Free Hot and Continental Meeting breakfast Room Business In-room Center refrigerator

Pet- friendly Laundry

6 Property Overview

The 133 room, three storied Quality Inn Holland, situated on a 2.50 Asset Info Acre lot, offers a calm, spacious environment. Additional amenities Rooms: 133 include a meeting space, business center, and free Wi-Fi. This property also houses an outdoor pool and an extensive fitness Year Built: 1991 center for workouts. Number of Buildings: 1 Located just off I-475 and near I-90, this hotel is serves as a Floors: 3 crossroads for many travelers. This property’s close proximity to the area’s biggest attractions, like the Toledo Zoo, Raceway Park and Lot Size: 2.50 Acres the , make it an ideal spot for visitor to stay in. With Downtown Toledo being only a 20-minute drive away, this Gross Sq. Footage: 54,252 Sq. Ft. hotel is an ideal location for visitors to the area.

07 Investment Overview

Marcus & Millichap’s National Hospitality Group is pleased announce the exclusive listing of the Quality Inn Holland Hotel, located just outside Toledo and near Toledo Express Airport. This hotel presents investors the opportunity to purchase an asset with untapped upside and value-add potential.

This asset also offers the opportunity to invest in market with growing educational and healthcare economic segments driven by large employers such as ProMedica, Mercy Health, , and Bowling Green State University. Nearby is the regionally renowned Toledo Zoo, only a short six miles away and the Toledo Express Airport, which offers non-stop flights to six national destinations. Located just off of Ohio Route 2, one of the busiest retail corridors in the Toledo metro, and Interstate 475, this hotel is also well positioned geographically in a high traffic area with premier highway visibility.

Currently an unpriced listing, investors can benefit from market pricing and build upon a running 12-month occupancy of 42.9 percent, outperforming competitive set properties by nearly three percent. While the property trailed its competitors in both RevPAR and ADR, this asset has began trending upward in the past 12- month period as it has seen RevPAR growth of nearly 10 percent, outperforming the growth of competitors. This property offers investors a great opportunity to improve RevPAR and operating margin figures through hands-on management and marketing, capitalizing on this asset’s prime geographic location to reach new operational heights. Financial & STR Overview 2018 2019

Occupancy 43.90% 38.10%

ADR $48.35 $48.21

RevPAR $21.23 $18.37

Revenue $1,053,208 $1,014,863

08 NOI $4,208 $5,186 Quality Inn Holland Quality Inn Holland

12 13 Financial Analysis Marcus & Millichap

1417 Financial Analysis Overview

Historical Projected

• Assumption #1: Current year expenses are • Assumption #1: Revenue projections reflect

normalized to reflect a standard operating a modest increase in ADR

margin • Assumption #2: Projected expenses reflect a

• Assumption #2: Capital Reserves reflect normalized operating margin

four percent of Gross income • Assumption #3: Projected revenues are

• Assumption #3: Financials based off 133 based off 133 operating rooms

operating rooms • Assumption #4: Revenue projections reflect

no change in occupancy between the

current year and year 1, followed by modest

growth beyond year 1 15 16 17 18 Competitive Market Analysis Marcus & Millichap

1917 STR – At A Glance

Occupancy ADR RevPAR

My Prop. Comp. Set Index My Prop. Comp. Set Index My Prop. Comp. Set Index

Running 42.9% 40.7% 105.6 $47.82 $66.20 72.2 $20.53 $26.92 76.3 12 Months

Ohio Area Pipeline

 3,163 rooms planned  1,253 rooms under construction

 37 properties planned  12 properties under construction

20 STR – Industry Segmentation

Industry Segmentation Comparisons Running 12 Months

Quality Inn Holland Occupancy: 42.9% ADR: $47.82 RevPAR: $20.53 Market: Ohio Area Occupancy: 49.8% ADR: $89.54 RevPAR: $44.56 Market Class: Midscale Occupancy: 45.7% ADR: $81.65 RevPAR: $37.33 Submarket: Toledo, OH Occupancy: 54.5% ADR: $83.72 RevPAR: $37.33 Submarket Scale: Midscale Chains Occupancy: 57.4% ADR: $89.23 RevPAR: $51.19 Competitive Set: Competitors Occupancy: 40.7% ADR: $66.20 RevPAR: $26.92

21 STR – Time Segmented Performance

My Property (running 12 months)1

Weekday Weekend

Occupancy 40.8% 48.3%

ADR $46.06 $51.52

RevPAR $18.79 $24.87

1 Weekday vs. Weekend footnote

2 Monthly index footnote 22 Sales Comparables

4 4 BEST WESTERN MAUMEE RODEWAY INN NEAR HALL 6425 Kit Ln. • Maumee, OH 43537 OF FAME 6880 Sunset Strip Ave. NW • Canton, OH 44720

Close of Escrow 04/15/2019 Close of Escrow 06/26/2020

Asking Price $3,827,250 Asking Price $1,500,000

Price Per Room $46,111 Price Per Room $18,072

Price Per Square Foot $97.87 Price Per Square Foot $12.52

Cap Rate 9.27% Cap Rate 11.38%

Number of Rooms 83 Number of Rooms 83

Year Built/Renovated 2002/2016 Year Built 1985

Underwriting Criteria Underwriting Criteria

Total Revenue $1,284,470 Total Revenue $788,063

Occupancy 58% Occupancy 69%

ADR $72.89 ADR $38.24

23 RevPAR $42 RevPAR $26 Sales Comparables

4 RAMADA CLEVELAND 4 COMFORT INN SIDNEY AIRPORT WEST 1859 W. Michigan Ave. • Sidney, OH 45365 22215 Brook Park Rd. • Fairview Park, OH 44126

Close of Escrow 02/26/2016 Close of Escrow 01/29/2016

Asking Price $1,745,000 Asking Price $2,250,000

Price Per Room $24,929 Price Per Room $31,690

Cap Rate 16.85% Cap Rate 27.78%

Number of Rooms 70 Number of Rooms 71

Year Built/Renovated 1972/2010 Year Built 1989

Underwriting Criteria Underwriting Criteria

Occupancy 52% Occupancy 67%

ADR $52.96 ADR $74.61

RevPAR $28 RevPAR $50 24 Sales Comparables

4 LA QUINTA INN & SUITES 4 THE VARSITY INN 268 Highland Rd. • Macedonia, OH 44056 1445 Olentangy River Rd • Columbus, OH

Close of Escrow 05/01/2020 Close of Escrow 08/15/2020

Asking Price $3,612,000 Asking Price $3,397,500

Price Per Room $42,000 Price Per Room $28,312

Number of Rooms 86 Number of Rooms 120

Year Built 1997 Year Built/Renovated 1984

25 1 3 5

2

4

6

Comparables Sales Map 1. Best Western Maumee 4. Comfort Inn Sidney 2. Rodeway Inn Near Hall of Fame 5. LaQuinta Inn & Suites 3. Ramada Cleveland Airport West 6. The Varsity Inn 2 1

5

4 3

COMPE TITIVE PROPER TY SE T

Number NAME CITY, STATE ROOMS BRAND RANKING*

1 Red Roof Inn Toledo Holland Holland, OH 106 Economy

2 Econo Lodge Holland Toledo Airport Holland, OH 120 Economy

3 Country Inn & Suites Toledo Maumee, OH 62 Upper Midscale

4 Fairfield Inn & Suites Toledo Maumee Maumee, OH 62 Upper Midscale

5 Baymont Inn & Suites Swanton Swanton, OH 52 Midscale

Comp Rooms 402

26 Competitive Set Performance

Occupancy ADR RevPAR $40.00 60.00% $80.00 50.00% $70.00 $30.00 40.00% $60.00 $20.00 30.00% $50.00 20.00% $40.00 $10.00 2017 2018 2019 2017 2018 2019 2017 2018 2019

Quality Inn Comp Set Quality Inn Comp Set Quality Inn Comp Set

COMPETITIVE PROPERTY SET PERFORMANCE

Occupancy ADR RevPAR

Hotel/ Comp Hotel/ Comp Hotel/ Year Penet. Penet. Comp Set Penet. Motel Set Motel Set Motel

Prior Year 2 43.9% 52% 84.5% $48.35 $67.67 71.4% $21.23 $35.18 60.4%

Prior Year 1 38.1% 47.6% 80% $48.21 $67.90 71% $18.35 $32.33 56.8%

% Change -13.3% -8.4% -.3% .3% -13.6% -8.1%

27 Market Overview Marcus & Millichap

2817 LOCAL HIGHLIGHTS

Lake Erie Toledo Zoo

Located at the mouth of the , Toledo In the heart of Toledo, tourists may find the offers several miles of Lake Erie coast for visitors to renowned Toledo Zoo. Home to over 10,000 enjoy. Just to the east of Toledo is Maumee Bay State individual animals and 720 distinct species, the Park, a popular destination for outdoor recreation Toledo Zoo attracts people from across the Midwest, enthusiasts to enjoy camping, swimming, or a round bringing in over 1 million visitors annually. The zoo’s of golf. Along the Toledo shores, visitors will also offerings are extensive as they include a find many other options for Lake Erie leisure with greenhouse/conservatory, an amphitheater, an boating, visiting the Point Place Lighthouse, or aquarium, and a carousel in addition to their animal golfing near the coast. enclosures.

29 Toledo Overview

Located at the western end of Lake Erie and bordering southern Michigan, Toledo is just an hour north of Detroit and two hours east of Cleveland. The metro is composed of Lucas, Wood and Fulton counties. Three key interstate highways run through Toledo — I-75, the Ohio Turnpike, and I-475 — benefiting the local economy. The market has historically been known for its glass making and automobile manufacturing. Today, these industries still comprise a large portion of the economy alongside healthcare, education and port activity.

METRO HIGHLIGHTS

PORT ACTIVITY The Port of Toledo houses two 240-ton cranes, the largest crane facilities of any Great Lakes port. Roughly 8.8 million tons of cargo are shipped annually.

LOWER COST OF LIVING Toledo’s home prices are below larger Ohio metros, allowing 56 percent of households to own a home, similar to the national rate.

HIGHER EDUCATION The Chicago metro employs 4.8 million workers in an array of industries, including the 30 growing tech and logistics sectors. Toledo Economy Economic Highlights

. Universities and hospital systems drive Toledo’s employment growth. ProMedica, the University of Toledo, Mercy Health and Bowling Green State University are the metro’s largest employers.

. The metro remains a hub for auto-related production. GM runs Toledo Transmission, a 2 million- square-foot plant. A Fiat Chrysler plant assembles Wranglers and auto parts manufacturer Dana Holdings Corp. has a large facility in the area.

. In addition to general cargo, the Port of Toledo ships Iron ore, coal, limestone, grain and liquid bulk.

. Other employment segments that provide a host of jobs include transportation and retail sales.

Major Employers  ProMedica  Bowling Green State  Mercy Health  University of Toledo   Fiat Chrysler

31 * Forecast DEMOGRAPHIC INFORMATION

POPULATION In 2019, the population in your selected geography is 5,507. The population has changed by 10.65% since 2000. It is estimated that the population in your area will be 5,334.00 five years from now, which represents a change of -3.14% from the current year. The current population is 45.62% male and 54.38% female. The median age of the population in your area is 38.68, compare this to the US average which is 38.08. The population density in your area is 1,749.76 people per square mile. INCOME In 2019, the median household income for your selected geography is $53,858, compare this to the US average which is currently $60,811. The median household income for your area has changed by 19.89% since 2000. It is estimated that the median household income in your area will be $61,168 five years from now, which represents a change of 13.57% from the current year.

The current year per capita income in your area is $30,957, compare this to the US average, which is $33,623. The current year average household income in your area is $69,340, compare this to the US average which is $87,636.

EMPLOYMENT In 2019, there are 7,055 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 63.82% of employees are employed in white-collar occupations in this geography, and 35.36% are employed in blue-collar occupations. In 2019, unemployment in this area is 2.99%. In 2000, the average time traveled to work was 21.00 minutes.

32 DEMOGRAPHIC INFORMATION

HOUSEHOLDS

There are currently 2,424 households in your selected geography. The number of households has changed by 22.86% since 2000. It is estimated that the number of households in your area will be 2,386 five years from now, which represents a change of -1.57% from the current year. The average household size in your area is 2.15 persons.

RACE AND ETHNICITY The current year racial makeup of your selected area is as follows: 77.97% White, 14.01% Black, 0.00% Native American and 3.08% Asian/Pacific Islander. Compare these to US averages which are: 70.07% White, 12.87% Black, 0.19% Native American and 5.66% Asian/Pacific Islander. People of Hispanic origin are counted independently of race.

People of Hispanic origin make up 3.97% of the current year population in your selected area. Compare this to the US average of 18.17%.

HOUSING The median housing value in your area was $162,000 in 2019, compare this to the US average of $212,058. In 2000, there were 1,093 owner occupied housing units in your area and there were 880 renter occupied housing units in your area. The median rent at the time was $522.

33 Regional Hospitality Outlook

Percent of Inventory • North Central 4.3% Under Construction as of December 2019 2020 Region Forecast 10 bps Five-year occupancy growth 2015-2020 Supply Across the region, 15,200 rooms are underway, and an up 2.5% additional 19,100 doors are likely to break ground over the Five-year RevPAR next 12 months. Of the rooms currently being constructed, 9% growth Detroit leads all markets with 2,600 keys, while Cleveland has just 250 rooms underway.

Regional occupancy will drop to 60.1 percent in 2020 Occupancy following a 50-basis-point decline in the previous year. down 30 bps

In 2020, the average daily rate moves up to $102.87, yet this ADR margin of annual growth falls shy of the 3.2 percent cycle up 0.3% average.

RevPAR Declining occupancy levels and minimal gains to daily rates down 0.6% will weigh on revenue this year. RevPAR is expected to move down to $62.09, dropping for the first time since 2009.

After many investors rode the wave of surging revenue gains Investment in Detroit throughout this cycle, some will place properties on the market as they reevaluate their strategies following a s 2019 = recent openings; 2020 = under construction as of sluggish year. This will open the door for new investors to December 2019 Sources: CoStar Group, Inc.; STR, Inc.; enter, while sellers transfer their returns into other assets or Real Capital Analytics hotels in nearby major markets. 34 Regional Hospitality Summary

Investment Strategies Shift as Michigan Faces Headwinds and Ohio Outperforms

Momentum in Ohio is not enough to overcome losses in Michigan. Occupancy and RevPAR rose in Ohio this past year, while the other two states in the region faced challenges. Ending 2019, occupancy in Ohio was up for the third straight year. The 140-basis-point jump during that span facilitated a RevPAR advancement of 5.5 percent. Metrics in Michigan moved in the opposite direction in 2019, as the 160- basis-point occupancy drop snapped a streak of nine consecutive annual increases. During this cycle, Michigan hotels greatly outperformed regional averages, so last year’s losses may be a realignment following the rapid improvement rather than a long-term disturbance. Similar to Michigan, occupancy in Indiana fell in 2019; however, growth in ADR held RevPAR stable. A similar regional performance is expected in 2020 as the construction pipeline, while sizable, is well dispersed among the three states. The two markets that will see the largest change in inventory following completion of projects under construction are Columbus and Indianapolis. Demand drivers such as conventions and sporting events that bring overnight visitors to these metros should assist occupancy and revenue gains.

35 PRESENTED BY

Michael Glass Broker of Record Cleveland Office Main: (216) 264-2000 License: OH: BRK.2007005898

www.MarcusMillichap.com