An Overview of Asset Classes Part 1 of 3: Limited-Service

The details of how hotels are classed can appear a little fuzzy. Herein we try to make things clearer.

By Chris Elder, Project Manager

Various developments in the lodging industry over the past decade have made it increasingly difficult to determine the official class to which a particular lodging facility belongs. Hotel* owners, developers, and lenders (not to mention guests) can be forgiven for needing some guidance through the sometimes blurred demarcations that separate one property definition from another. Yet such distinctions are at the heart of any coherent feasibility study or appraisal. So how are lodging facilities classed and what are the major differences between them?

The segmentation nomenclature for the lodging industry will always be subject to some vagaries and exceptions. Smith Travel Research (STR), a leader in data collection for the lodging industry, categorizes the hotel industry into six segments known as “chain scales”: Luxury, Upper-upscale, Upscale, Midscale (with food and beverage), Midscale (without food and beverage), and Economy. These chain scales are based on the actual system-wide-average room rates of the major chains.

However, rather than examining the multiple chain scales used to compare operational statistics between different property types, this series of articles addresses another industry-wide categorization: asset classes. In general, all hotels can be broken down into three: limited-service, select-service, and full-service.

Part One: Limited-Service Hotels

Originally defined as a hotel without restaurant or banquet facilities, the services and amenities offered to guests of limited-service hotels are typically simple. However, these services and amenities have expanded over the past decade, and in today’s market a limited-service hotel’s range of amenities might include a business center, a fitness room, a guest laundry facility, a market pantry, an indoor and/or outdoor pool and whirlpool, and small meeting rooms.

“Budget” limited-service hotels offer no-frills rooms at modest prices. More robust limited-service hotels offer many of the same high-quality amenities that guests would expect from full-service hotels, with one significant difference: limited-service hotels lack a dedicated, revenue-producing food and beverage component.

Hence, limited-service hotels typically have the lowest operating costs of all three segments because they don't offer catering services or multiple restaurants. Room rates are typically on the lower end of the scale as well, because demand for limited-service properties generally comes from price-sensitive commercial and leisure travelers. The majority of limited-service brands target the price point of $75 per night or less; however, the higher quality of certain brands’ product offering and finish-out can command a premium.

Examples of brands belonging to this asset class include:

America’s Best Value Element La Quinta SpringHill Suites

AmeriHost Fairfield Inn Lexington Collection

Baymont Inn GuestHouse MainStay Suites Studio 6

Budget Host Hampton Inn Microtel Inn

Cambria Suites 6

Candlewood Suites Express Park Inn TownePlace Suites

Comfort Inn Homewood Suites Vagabond Inn

Country Inn Key West Inn Residence Inn Value Place

Country Hearth Inn Sleep Inn Wingate Inn

Finally, we also note that many limited-service brands are designed to cater to extended-stay travelers. These “home-away-from-home” hotels offer rooms with kitchen facilities and a small dining table, and may offer discounted weekly and monthly rates.

Conclusion

Knowing where a hotel property fits into the scheme of things is crucial for owners, operators, and lenders alike. Our professional standards as appraisers require the staff of U.S. Hotel Appraisals to be keenly aware of how demand segments, market conditions, and competitive supply affect valuations of different property types. We hope this brief overview of limited-service hotels proves useful. Look for similar explanations of select- and full-service properties in future articles.

* For our purposes here, both hotel and motel properties are referred to by the term “hotels.”

Copyright © 2016 · U.S. Hotel Appraisals http://www.ushotelappraisals.com/services/hotel-asset-classes-limited-service-hotels/

An Overview of Hotel Asset Classes Part 2 of 3: Select-Service Hotels

The details of how hotels are classed can appear a little fuzzy. Herein we try to make things clearer.

By Chris Elder, Project Manager

Hotel owners, developers, and lenders (not to mention guests) may need some guidance through the sometimes blurred demarcations that separate one hotel asset class from another. Yet such distinctions are at the heart of any coherent feasibility study or appraisal. So how are lodging facilities classed and what are the major differences between them?

The segmentation nomenclature for the lodging industry will always be subject to some vagaries and exceptions. Smith Travel Research (STR), a leader in data collection for the lodging industry, categorizes hotels into six segments known as “chain scales”: Luxury, Upper-upscale, Upscale, Midscale (with food and beverage), Midscale (without food and beverage), and Economy. These chain scales are based on the actual system-wide-average room rates of the major chains.

This series of articles addresses another industry-wide categorization: asset classes. Most hotels fit within one of three: limited-service, select-service, and full-service.

Select-Service Hotels

Over the course of the past several years, the stratum between limited-service and full-service properties begat a hybrid known as the select-service segment. Select-service hotels, as the name suggests, offer the fundamentals of limited-service properties together with a selection of the services and amenities characteristic of full-service properties. Generally, this means certain restaurant and banquet facilities but on a less elaborate scale than one would find at full-service hotels. On the whole, it’s fair to say that select-service properties have more in common with their limited-service brethren, but specific offerings of select-service properties vary.

Select-service hotels keep operating costs down by offering services and amenities in moderation. Hence, such properties generally do not feature multiple restaurants, expansive catering services, or an abundance of meeting space. For example, a select-service hotel’s restaurant is likely to offer a limited menu and generally does not open for all three meals, seven days a week.

In-room amenities, however, can approach or meet the levels found at full-service hotels. In fact, commercial demand has grown among select-service hotels since 2007, as budgets for business travel tighten. The select-service segment has continued to increase its competitive advantage by offering the in-room amenities of full-service hotels while keeping prices low in the absence of a full-spectrum product offering.

While the term “select-service” may be relatively new to the lodging scene, the concept has been around for many years. For most people, a , a , or a Place evokes an image of the quintessential select-service hotel. But the term also describes individual properties from largely limited-service brands such as , , and Clarion when those properties feature on-site restaurants or a more elaborate array of in-room amenities.

Similarly, the line between full-service and the select-service hotels has become increasingly blurred with the release of several new prototypes by full-service brands such as Holiday Inn and Wyndham. The new prototypes, which include less expansive food and beverage services and feature a smaller overall building footprint, provide for greater operating efficiency for a hotel that is less expensive to build and maintain.

Examples of select-service brands include:

aloft Holiday Inn Select

Courtyard by Marriott Hilton Garden Inn

DoubleTree Club Hyatt Place

Wyndham Garden Inn Clarion Cambria Suites

Conclusion

Knowing where a hotel property fits into the scheme of things is crucial for owners, operators, and lenders alike. Our professional standards as appraisers require the staff of U.S. Hotel Appraisals to be keenly aware of how demand segments, market conditions, and competitive supply affect valuations of different property types.

We hope this brief overview of select-service hotels proves useful. Look for an explanation of full- service hotels in the final installment of this series, and look here for our survey of the limited-service asset class.

http://www.ushotelappraisals.com/services/select-service-hotels/

Hotel Asset Classes Part 3 of 3: Full-Service Hotels

Hoteliers and lenders depend on appraisers to decode the most intimate variables that affect a property’s value, but it also helps to focus on the big picture: What type of hotel do you want to run?

By Chris Elder, Senior Project Manager

In two previous articles, we looked at the fundamentals of hotels in the limited-service and select- service asset classes. This article covers the basics of full-service hotels.

The most distinguishing feature of a full-service hotel is the abundant provision of food and beverage services suitable for both guests and groups. Full-service hotels, unlike hotels in other segments, typically play a significant role in servicing the meeting and special events needs in their market area. Therefore, on-site restaurants, lounges, and group meeting spaces with banquet facilities are the cornerstones of the full-service offering. Furthermore, selective amenities such as spas, elaborate banquet rooms, doormen, valet parking, extended room service, concierge services, and high-end restaurants and boutiques distinguish many full-service properties.

These multiple services and amenities come at a higher operational cost for the full-service hotel, but they also help the hotel capture more selective demand and command a higher average rate. Groups requiring meeting space are a significant source of business for full-service properties, as are business travelers willing to pay the higher room rates generally charged at these hotels. Leisure and vacation travelers, especially at the upscale and luxury levels, are also a significant market for many full-service hotels. In all cases, full-service hotel guests seek the extra amenities and service levels found only at these properties.

Patronage of upscale and luxury hotels has come under fire since the recession took hold in late 2008, especially with respect to corporate meetings and travel, which have been criticized in some cases as too extravagant amid the economic woes. Some limited- and select-service brands have reported an influx of travelers who normally stay at full-service properties, but for reasons of budget or appearance have begun to choose hotels with fewer amenities. The food and beverage operations and large meeting venues that are unique to full-service hotels, however, should continue to draw demand, and this demand is expected to continue to grow once the economy rebounds.

Examples of full-service hotel brands include:

Regent Hotels & Hyatt Resorts

Marriott InterContinental Renaissance

Crowne Plaza Luxury Collection Ritz-Carlton DoubleTree Le Meridien Sheraton

Preferred Hotels & Embassy Suites Resorts St. Regis

Hilton Radisson

Holiday Inn Red Lion Westin

Conclusion

Knowing where a hotel property fits into the scheme of things is crucial for owners, operators, and lenders alike. As professional hotel consultants and appraisers, we work to stay keenly aware of how demand segments, market conditions, and competitive supply affect valuations of different property types. Please contact us to learn how we can help your hotel succeed.

http://www.ushotelappraisals.com/services/hotel-asset-classes-full-service-hotels/

ORDINANCE NO. 17-____

AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, AMENDING THE 2015 GALVESTON LAND DEVELOPMENT REGULATIONS, BY AMENDING ARTICLE 2 “USES AND SUPPLEMENTAL STANDARDS”, DIVISION 2.300 “STANDARDS FOR LIMITED AND SPECIFIC USES” BY PROVIDING ADDITIONAL STANDARDS FOR COMMERCIAL LODGING PERTAINING TO HOTELS AND LOCATED WITHIN THE AREAS OF: A. Gateway - 59th to Blume Street between Broadway Boulevard and Offat's Bayou/English Bayou; B. Seawall East - Inland side of Seawall Blvd. from Beach Drive to 6th St.; C. Seawall Core A - Inland side of Seawall Blvd. from 6th Street to 45th St.; D. Seawall Core B - Inland side of Seawall Blvd. from 45th Street to 61st St.; E. Seawall West - Inland side of Seawall Blvd. from 61st Street to Cove View Blvd.; F. Seawall West to 11 Mile - The area south of Stewart Road from Cove View Blvd. to 11 Mile Rd.; G. Southside of Seawall Blvd. from 12th Street to the Easternmost Point of ; PLANNING CASE NUMBER 17P-___; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the City of Galveston is an acknowledged tourist destination. The City desires to amend its commercial lodging provisions pertaining to hotels and motels to provide additional hotel/motel amenities to certain areas within the City; and,

WHEREAS, Staff recommends approval of the amendments pertaining to commercial lodging (hotels and motels); and,

WHEREAS, after notice and conduct of a public hearing, the City Council of the City of Galveston, Texas, deems it in the public interest to amend the 2015 Galveston Land Development Regulations, by amending Article 2 “Uses and Supplemental Standards, Division 2.300, “Standards for Limited and Specific Uses”, by providing additional standards for commercial lodging pertaining to hotels and motels located within the areas of:

A. Gateway - 59th to Blume Street between Broadway Boulevard and Offat's Bayou/English Bayou; B. Seawall East - Inland side of Seawall Blvd. from Beach Drive to 6th St.; C. Seawall Core A - Inland side of Seawall Blvd. from 6th Street to 45th St.; D. Seawall Core B - Inland side of Seawall Blvd. from 45th Street to 61st St.; E. Seawall West - Inland side of Seawall Blvd. from 61st Street to Cove View Blvd.; F. Seawall West to 11 Mile - The area south of Stewart Road from Cove View Blvd. to 11 Mile Rd.;

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G. Southside of Seawall Blvd. from 12th Street to the Easternmost Point of Galveston Island.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALVESTON, TEXAS:

SECTION 1. The findings and recitations set out in the preamble to this Ordinance are found to be true and correct, and they are adopted by the City Council and made a part hereof for all purposes.

SECTION 2. In accordance with the City of Galveston 2011 Comprehensive Plan, the City Council of the City of Galveston hereby amends the 2015 Galveston Land Development Regulations by amending Article 2 “Uses and Supplemental Standards”, Division 2.300, “Standards for Limited and Specific Uses”, to read and provide as follows:

SEC. 2.316.5 – COMMERCIAL LODGING (HOTEL/MOTEL)

This Section applies to New Construction or to those properties with proposed improvements that meet the 50% damage rule.

A. Limited Use Standards. 1. Location/Areas Commercial lodging by hotels and motels located within the areas of: A. Gateway - 59th to Blume Street between Broadway Boulevard and Offat's Bayou/English Bayou; B. Seawall East - Inland side of Seawall Blvd. from Beach Drive to 6th St.; C. Seawall Core A - Inland side of Seawall Blvd. from 6th Street to 45th St.; D. Seawall Core B - Inland side of Seawall Blvd. from 45th Street to 61st St.; E. Seawall West - Inland side of Seawall Blvd. from 61st Street to Cove View Blvd.; F. Seawall West to 11 Mile - The area south of Stewart Road from Cove View Blvd. to 11 Mile Rd.; G. Southside of Seawall Blvd. from 12th Street to the Easternmost Point of Galveston Island; 2. Hotel/Amenities Commercial lodging by hotels and motels shall provide certain on-site amenities to include; and is not limited to: a. A hotel/motel shall contain a guest lounge , breakfast area or cocktail area. The applicable area shall be a minimum of 225 square feet. b. A hotel/motel shall contain a swimming pool and/or exercise room. A hotel/motel may undertake an alternative building development plan which

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contains building upgrades above these standards for that facility that are comparable in cost to the value of a swimming pool or exercise room. c. A hotel/motel shall contain an area for meetings and/or conferences. This area shall be a minimum of 500 square feet. (400?) d. A hotel/motel shall provide a security plan addressing, but not limited to, surveillance, lighting, and on site security for hotel guests and employees.

B. Design Standards. 1. Guest rooms may be accessible from only an internal hallway that is primarily accessible from a central lobby area contained within the hotel/motel. 2. Guest access to ice machines/makers and vending kiosks shall be designed so that primary access is from a hallway that will be internal to the hotel/motel building.

SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable. If any phrase, clause, sentence, paragraph or section of this Ordinance should be declared invalid by a final judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Ordinance.

SECTION 4. All Ordinances or parts thereof in conflict herewith are repealed to the extent of such conflict only.

SECTION 5. In accordance with the provisions of Sections 12 and 13 of Article II of the City Charter this Ordinance has been publicly available in the office of the City Secretary for not less than 72 hours prior to its adoption; that this Ordinance may be read and published by descriptive caption only.

SECTION 6. This Ordinance shall be and become effective from and after its adoption and publication in accordance with the provisions of the Charter of the City of Galveston.

APPROVED AS TO FORM: ______DONNA M. FAIRWEATHER ASSISTANT CITY ATTORNEY

I, Janelle Williams, Secretary of the City Council of the City of Galveston, do hereby certify that the foregoing is a true and correct copy of an Ordinance adopted by the City Council of the City of Galveston at its Regular Meeting held on ______, 2017, as the same appears in records of this office.

IN TESTIMONY WHEREOF, I subscribe my name hereto officially under the corporate seal of the City of Galveston this ______day of ______, 2017. ______Secretary for the City Council of the City of Galveston

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One Star Hotels Galveston Island, based on Alternate Star Rating Star Alternate Star Zone Address Rating Rating Floors Seawall Core A, 6th to 45th Beach Tree Motel 3126 Ave S 1 1 2 Gateway, Blume St to 59th Galveston 7404 Broadway 1 1 2

Two Star Hotels Galveston Island, based on Alternate Star Rating Star Alternate Star Zone Address Rating Rating Floors Seawall East, Beach Dr. to 6th Homewood Suites by Hilton 110 Seawall not rated 2 5 Seawall Core A, 6th to 45th Surf Motel and Apts 928 Ave M 2 2 2 Seawall Core A, 6th to 45th Pearl Inn 1002 Seawall 2 2 2 Seawall Core A, 6th to 45th La Quinta East Beach 1402 Seawall 2 2 3 Seawall Core A, 6th to 45th Four Points by Sheraton 2300 Seawall 3 2 5 Seawall Core A, 6th to 45th Country Inn and Suites by Carlson 2818 Ave R 1/2 2 2 5 Seawall Core A, 6th to 45th Knights Inn (Wyndham) 3008 Seawall 2 2 1 Seawall Core A, 6th to 45th Commodore on the Beach 3618 Seawall 2 2 4 Seawall Core A, 6th to 45th (Wyndham) 3924 Ave U 2 2 3 Seawall West, 61st to Cove View Blvd Beachcomber 2825 61st St 2 2 2 Seawall West, 61st to Cove View Blvd Super 8 2825 1/2 B 61st St 2 2 2 Seawall West, 61st to Cove View Blvd Motel 6 6311 Central City Blvd 2 2 2 Seawall West, 61st to Cove View Blvd Best Western Plus Galveston Suites 8502 Seawall not rated 2 5 Seawall West, 61st to Cove View Blvd and Suites 8628 Seawall 2 2 5 Seawall West, 61st to Cove View Blvd Days Inn & Suites Galveston West/Seawall 8712 Seawall 2 2 4 Seawall West, 61st to Cove View Blvd Comfort Suites 3606 89th St 2 2 3 Seawall West, 61st to Cove View Blvd TownePlace Suites by Marriott Galveston Island 9540 Seawall 2 2 4 Gateway, Blume St to 59th Galveston 808 61st St 2 2 3 Gateway, Blume St to 59th Galveston 6107 Broadway 2 2 2 Hotels Not on Seawall or Gateway Corridor Scottish 928 N. Ferry Road 2 2 2 Hotels Not on Seawall or Gateway Corridor Howard Johnson Express Inn - Galveston Texas 8216 Harborside Dr 2 2 2 Hotels Not on Seawall or Gateway Corridor Inn at the Waterpark 2525 Jones Dr 2 2 2 Three Star Hotels Galveston Island, based on Alternate Star Rating Star Alternate Star Zone Address Rating Rating Floors Seawall East, Beach Dr. to 6th Best Western Plus Inn and Suites 102 Seawall 3 3 3 Seawall Core A, 6th to 45th Double Tree by Hilton 1702 Seawall 3 3 5 Seawall Core A, 6th to 45th Gaido's Seaside Inn 3700 Seawall not rated 3 2 Seawall Core B, 45th to 61st Holiday Inn Resort 5002 Seawall 3 3 8 Seawall Core B, 45th to 61st Hilton Galveston Island Resort 5400 Seawall 3 3 9 Seawall Core B, 45th to 61st Red Roof Inn 5914 Seawall 2 3 3 Seawall Core B, 45th to 61st Quality Inn and Suites 5924 Seawall 4 3 5 Seawall West, 61st to Cove View Blvd Casa del Mar 6102 Seawall Blvd 3 3 3 Seawall West, 61st to Cove View Blvd Hampton Inn & Suites Galveston (Hilton) 6431 Central City Blvd 2 3 5 Seawall West, 61st to Cove View Blvd Baymont Inn and Suites 2826 63rd St 3 3 3 Seawall West, 61st to Cove View Blvd Comfort Inn & Suites Beachfront 6302 Seawall 2 3 3 Best Western Galveston West Beach Hotel (formerly La Seawall West, 61st to Cove View Blvd Quinta) 8710 Seawall 3 3 3 Seawall West, 61st to Cove View Blvd Courtyard by Marriott Galveston Island 9550 Seawall 3 3 4 11743 Termini- Seawall West, Cove View Blvd to 11 Mile Holiday Inn Club Vacations : Galveston Beach Resort Road 3 3 5 Gateway, Blume St to 59th SpringHill Suites by Marriott Galveston Island 6303 Broadway 3 3 4 Americas Best Value Inn & Suites - Galveston Island (Red Gateway, Blume St to 59th Lion) 7220 Broadway not rated 3 3 Hotels Not on Seawall or Gateway Corridor The Tremont House (Wyndham) 2300 Ships Mechanic Row 4 3 4 Hotels Not on Seawall or Gateway Corridor Harbor House Hotel & Marina at Pier 21 28 Pier 21 3 3 2

Four-Star Hotels Galveston Island, based on Alternate Star Rating Star Alternate Star Zone Address Rating Rating Floors Seawall Core A, 6th to 45th and Spa (Wyndham) 2024 Seawall 4 4 6 Seawall Core B, 45th to 61st San Luis Resort 5222 Seawall 4 4 16 Seawall West, 61st to Cove View Blvd Victorian Condo-Hotel 6300 Seawall Blvd 4 4 3 Hotels Not on Seawall or Gateway Corridor 7 Hope Blvd 4 4 9

HOTELS ON GALVESTON ISLAND Star Star No. Zone Galveston Hotels On/Near Seawall Address Rating Floors Rating Hotels Seawall East, Beach Dr. to 6th Best Western Plus Inn and Suites 102 Seawall 3 3 1 2 Seawall East, Beach Dr. to 6th Homewood Suites by Hilton 110 Seawall not rated 5 2 22 Seawall Core A, 6th to 45th Surf Motel and Apts 928 Ave M 2 2 3 12 Seawall Core A, 6th to 45th Pearl Inn 1002 Seawall 2 2 4 6 Seawall Core A, 6th to 45th La Quinta East Beach 1402 Seawall 2 3 not rated 7 Seawall Core A, 6th to 45th Double Tree by Hilton 1702 Seawall 3 5 Total 49 Seawall Core A, 6th to 45th Hotel Galvez and Spa (Wyndham) 2024 Seawall 4 6 Star No. Seawall Core A, 6th to 45th Four Points by Sheraton 2300 Seawall 3 5 Rating Floors Seawall Core A, 6th to 45th Country Inn and Suites by Carlson 2818 Ave R 1/2 2 5 1 2 Seawall Core A, 6th to 45th Knights Inn (Wyndham) 3008 Seawall 2 1 2 3 Seawall Core A, 6th to 45th Ocean Inn 3028 Seawall not rated 2 3 5 Seawall Core A, 6th to 45th Beach Tree Motel 3126 Ave S 1 2 4 7 Seawall Core A, 6th to 45th Commodore on the Beach 3618 Seawall 2 4 not rated 3 Seawall Core A, 6th to 45th Gaido's Seaside Inn 3700 Seawall not rated 2 Seawall Core A, 6th to 45th Travelodge (Wyndham) 3924 Ave U 2 3 Seawall Core B, 45th to 61st Holiday Inn Resort 5002 Seawall 3 8 Seawall Core B, 45th to 61st San Luis Resort 5222 Seawall 4 16 Seawall Core B, 45th to 61st Hilton Galveston Island Resort 5400 Seawall 3 9 Seawall Core B, 45th to 61st Red Roof Inn 5914 Seawall 2 3 Seawall Core B, 45th to 61st Quality Inn and Suites 5924 Seawall 4 5 Seawall West, 61st to Cove View Blvd Beachcomber 2825 61st St 2 2 Seawall West, 61st to Cove View Blvd Super 8 2825 1/2 B 61st St 2 2 Seawall West, 61st to Cove View Blvd Casa del Mar 6102 Seawall Blvd 3 3 Seawall West, 61st to Cove View Blvd Hampton Inn & Suites Galveston (Hilton) 6431 Central City Blvd 2 5 Seawall West, 61st to Cove View Blvd Motel 6 6311 Central City Blvd 2 2 Star Zone Galveston Hotels On/Near Seawall Address Rating Floors Seawall West, 61st to Cove View Blvd Baymont Inn and Suites 2826 63rd St 3 3 Seawall West, 61st to Cove View Blvd Victorian Condo-Hotel 6300 Seawall Blvd 4 3 Seawall West, 61st to Cove View Blvd Comfort Inn & Suites Beachfront 6302 Seawall 2 3 Seawall West, 61st to Cove View Blvd Best Western Plus Galveston Suites 8502 Seawall not rated 5 Seawall West, 61st to Cove View Blvd Holiday Inn Express and Suites 8628 Seawall 2 5 Seawall West, 61st to Cove View Blvd Best Western Galveston West Beach Hotel (formerly La Quinta) 8710 Seawall 3 3 Seawall West, 61st to Cove View Blvd Days Inn & Suites Galveston West/Seawall 8712 Seawall 2 4 Seawall West, 61st to Cove View Blvd Comfort Suites 3606 89th St 2 3 Seawall West, 61st to Cove View Blvd TownePlace Suites by Marriott Galveston Island 9540 Seawall 2 4 Seawall West, 61st to Cove View Blvd Courtyard by Marriott Galveston Island 9550 Seawall 3 4 11743 Termini-San Luis Pass Seawall West, Cove View Blvd to 11 Mile Holiday Inn Club Vacations : Galveston Beach Resort Road 3 5 Star Zone Hotels in Gateway Corridor (I-45, Blume to 59th) Address Rating Floors Gateway, Blume St to 59th Candlewood Suites Galveston 808 61st St 2 3 Gateway, Blume St to 59th Rodeway Inn Galveston 6107 Broadway 2 2 Gateway, Blume St to 59th SpringHill Suites by Marriott Galveston Island 6303 Broadway 3 4 Gateway, Blume St to 59th Americas Best Value Inn & Suites - Galveston Island (Red Lion) 7220 Broadway not rated 3 Gateway, Blume St to 59th Motel 6 Galveston 7404 Broadway 1 2 Galveston Hotels Not on Seawall or Gateway Star Zone Corridor Address Rating Floors Hotels Not on Seawall or Gateway Corridor 928 N. Ferry Road 2 2 Hotels Not on Seawall or Gateway Corridor The Tremont House (Wyndham) 2300 Ships Mechanic Row 4 4 Hotels Not on Seawall or Gateway Corridor Harbor House Hotel & Marina at Pier 21 28 Pier 21 3 2 Hotels Not on Seawall or Gateway Corridor Howard Johnson Express Inn - Galveston Texas 8216 Harborside Dr 2 2 Hotels Not on Seawall or Gateway Corridor Moody Gardens 7 Hope Blvd 4 9 Hotels Not on Seawall or Gateway Corridor Inn at the Waterpark 2525 Jones Dr 2 2 Hotels Not on Seawall or Gateway Corridor Holiday Inn Club Vacations : Galveston Seaside Resort 19320 West San Luis Pass Road not rated 3 Hotels Not on Seawall or Gateway Corridor Pointe West Resort 4161 Pointe W Dr not rated 2

Hotels on Galveston Island Alternate Star Zone Galveston Hotels On/Near Seawall Address Star Rating Rating Floors Seawall East, Beach Dr. to 6th Best Western Plus Inn and Suites 102 Seawall 3 3 3 Seawall East, Beach Dr. to 6th Homewood Suites by Hilton 110 Seawall not rated 2 5 Seawall Core A, 6th to 45th Surf Motel and Apts 928 Ave M 2 2 2 Seawall Core A, 6th to 45th Pearl Inn 1002 Seawall 2 2 2 Seawall Core A, 6th to 45th La Quinta East Beach 1402 Seawall 2 2 3 Seawall Core A, 6th to 45th Double Tree by Hilton 1702 Seawall 3 3 5 Seawall Core A, 6th to 45th Hotel Galvez and Spa (Wyndham) 2024 Seawall 4 4 6 Seawall Core A, 6th to 45th Four Points by Sheraton 2300 Seawall 3 2 5 Seawall Core A, 6th to 45th Country Inn and Suites by Carlson 2818 Ave R 1/2 2 2 5 Seawall Core A, 6th to 45th Knights Inn (Wyndham) 3008 Seawall 2 2 1 Seawall Core A, 6th to 45th Ocean Inn 3028 Seawall not rated not rated 2 Seawall Core A, 6th to 45th Beach Tree Motel 3126 Ave S 1 1 2 Seawall Core A, 6th to 45th Commodore on the Beach 3618 Seawall 2 2 4 Seawall Core A, 6th to 45th Gaido's Seaside Inn 3700 Seawall not rated 3 2 Seawall Core A, 6th to 45th Travelodge (Wyndham) 3924 Ave U 2 2 3 Seawall Core B, 45th to 61st Holiday Inn Resort 5002 Seawall 3 3 8 Seawall Core B, 45th to 61st San Luis Resort 5222 Seawall 4 4 16 Seawall Core B, 45th to 61st Hilton Galveston Island Resort 5400 Seawall 3 3 9 Seawall Core B, 45th to 61st Red Roof Inn 5914 Seawall 2 3 3 Seawall Core B, 45th to 61st Quality Inn and Suites 5924 Seawall 4 3 5 Seawall West, 61st to Cove View Blvd Beachcomber 2825 61st St 2 2 2 Seawall West, 61st to Cove View Blvd Super 8 2825 1/2 B 61st St 2 2 2 Seawall West, 61st to Cove View Blvd Casa del Mar 6102 Seawall Blvd 3 3 3 Seawall West, 61st to Cove View Blvd Hampton Inn & Suites Galveston (Hilton) 6431 Central City Blvd 2 3 5 Seawall West, 61st to Cove View Blvd Motel 6 6311 Central City Blvd 2 2 2

Alternate Star Star Zone Galveston Hotels On/Near Seawall Address Rating Rating Floors Seawall West, 61st to Cove View Blvd Baymont Inn and Suites 2826 63rd St 3 3 3 Seawall West, 61st to Cove View Blvd Victorian Condo-Hotel 6300 Seawall Blvd 4 4 3 Seawall West, 61st to Cove View Blvd Comfort Inn & Suites Beachfront 6302 Seawall 2 3 3 Seawall West, 61st to Cove View Blvd Best Western Plus Galveston Suites 8502 Seawall not rated 2 5 Seawall West, 61st to Cove View Blvd Holiday Inn Express and Suites 8628 Seawall 2 2 5 Seawall West, 61st to Cove Best Western Galveston West Beach Hotel View Blvd (formerly La Quinta) 8710 Seawall 3 3 3 Seawall West, 61st to Cove View Blvd Days Inn & Suites Galveston West/Seawall 8712 Seawall 2 2 4 Seawall West, 61st to Cove View Blvd Comfort Suites 3606 89th St 2 2 3 Seawall West, 61st to Cove View Blvd TownePlace Suites by Marriott Galveston Island 9540 Seawall 2 2 4 Seawall West, 61st to Cove View Blvd Courtyard by Marriott Galveston Island 9550 Seawall 3 3 4 Seawall West, Cove View Holiday Inn Club Vacations : Galveston Beach 11743 Termini-San Luis Pass Blvd to 11 Mile Resort Road 3 3 5

Alternate Hotels in Gateway Corridor (I-45, Blume Star Star Zone to 59th) Address Rating Rating Floors Gateway, Blume St to 59th Candlewood Suites Galveston 808 61st St 2 2 3 Gateway, Blume St to 59th Rodeway Inn Galveston 6107 Broadway 2 2 2 Gateway, Blume St to 59th SpringHill Suites by Marriott Galveston Island 6303 Broadway 3 3 4 Americas Best Value Inn & Suites - Galveston Island not Gateway, Blume St to 59th (Red Lion) 7220 Broadway rated 3 3 Gateway, Blume St to 59th Motel 6 Galveston 7404 Broadway 1 1 2 Alternate Galveston Hotels Not on Seawall or Star Star Zone Gateway Corridor Address Rating Rating Floors Hotels Not on Seawall or Gateway Corridor Scottish Inns 928 N. Ferry Road 2 2 2 Hotels Not on Seawall or 2300 Ships Mechanic Gateway Corridor The Tremont House (Wyndham) Row 4 3 4 Hotels Not on Seawall or Gateway Corridor Harbor House Hotel & Marina at Pier 21 28 Pier 21 3 3 2 Hotels Not on Seawall or Gateway Corridor Howard Johnson Express Inn - Galveston Texas 8216 Harborside Dr 2 2 2 Hotels Not on Seawall or Gateway Corridor Moody Gardens 7 Hope Blvd 4 4 9 Hotels Not on Seawall or Gateway Corridor Inn at the Waterpark 2525 Jones Dr 2 2 2 Hotels Not on Seawall or Holiday Inn Club Vacations : Galveston Seaside 19320 West San Luis not Gateway Corridor Resort Pass Road rated not rated 3 Hotels Not on Seawall or not Gateway Corridor Pointe West Resort 4161 Pointe W Dr rated not rated 2

Percent of Total based Alt. Star Rating on Alt Star Star Rating No. Hotels No. Hotels Rating 1 2 2 4% 2 22 22 45% 3 12 18 37% 4 6 4 8% not rated 7 3 6% Total 49 49 100%

Star Rating No. Floors Alt. Star Rating, No. Floors 1 2 2 2 3 3 3 5 4 4 7 9, 6 w/out San Luis not rated 3 2

Star Ratings Explained

https://www.hotels.com/customer_care/star_rating.html

Five Star

These are hotels that offer only the highest level of accommodations and services. The properties offer a high degree of personal service. Although most five star hotels are large properties, sometimes the small independent (non-chain) property offers an elegant intimacy that can not be achieved in the larger setting. The hotel locations can vary from the very exclusive locations of a suburban area, to the heart of downtown. The hotel lobbies are sumptuous, the rooms complete with stylish furnishing and quality linens. The amenities often include: VCR′s, CD stereos, garden tubs or Jacuzzis, in-room video library, heated pools and more. The hotels feature up to three restaurants all with exquisite menus. Room service is usually available 24 hours a day. Fitness Centers and valet and/or garage parking are typically available. A concierge is also available to assist you.

Typical National Chains: Ritz Carlton, Four Seasons.

Four Star

Mostly large, formal hotels with smart reception areas, front desk service and bellhop service. The hotels are most often located near other hotels of the same caliber and are usually found near shopping, dining and other major attractions. The level of service is well above average and the rooms are well lit and well furnished. Restaurant dining is usually available and may include more than one choice. Some properties will offer continental breakfast and/or happy hour delicacies. Room service is usually available during most hours. Valet parking and/or garage service is also usually available. Concierge services, fitness centers and one or more pools are often provided.

Typical National Chains: Hyatt, Marriott.

Three Star

Typically these hotels offer more spacious accommodations that include well appointed rooms and decorated lobbies. Bellhop service is usually not available. They are often located near major expressways or business areas, convenient to shopping and moderate to high priced attractions. The hotels usually feature medium-sized restaurants that typically offer service breakfast through dinner. Room service availability may vary. Valet parking, fitness centers and pools are often provided.

Typical National Chains: Holiday Inn, Hilton.

Two Star

Typically smaller hotels managed by the proprietor. The hotel is often 2 - 4 stories high and usually has a more personal atmosphere. It′s usually located near affordable attractions, major intersections and convenient to public transportation. Furnishings and facilities are clean but basic. Most will not have a restaurant on site but are usually within walking distance to some good low-priced dining. Public access, past certain hours, may be restricted. Typical National Chains: Days Inn, LaQuinta Inn.

One Star

Usually denotes independent and name brand hotel chains with a reputation for offering consistent quality amenities. The hotel is usually small to medium-sized and conveniently located to moderately priced attractions. The facilities typically include telephones and TV′s in the bedroom. Some hotels offer limited restaurant service; however, room service and bellhop service is usually not provided.

Typical National Chains: Econolodge, Motel 6.