2-PARCEL HOTEL DEVELOPMENT SITES

OFFERING MEMORANDUM AUSTIN TEXAS AIRPORT LAND AUSTIN | TX 1400 Landing Lane, Austin TX 78742 | 3006 Meldrum Road, Austin TX 78617

ASHISH CHOPRA SUBHASH NAIK NITI NAIK Listing Agent Making Deals Happen Licensed Broker 916.718.4571 661.978.3109 661.808.4998 [email protected] [email protected] [email protected] HOTEL BROKERS OF AMERICA CalBRE # 020834401 CalBRE #01717362 TX BRE #735690 NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER including by obtaining and reading applicable documents and All materials and information received or derived from Hotel through appropriate third party independent professionals Brokers of America (HBA) & Niti Naik (State Licensed Broker) selected by such party. All financial data should be verified by its directors, o cers, agents, advisors, a liates and/or any third the party including by obtaining and reading applicable party sources are provided without representation or warranty documents and reports and consulting appropriate independent as to completeness , veracity, or accuracy, condition of the professionals. HBA & State Licensed Broker makes no property, compliance orlack of compliance with applicable warranties and/or representations regarding the veracity, governmental requirements, developability or suitability, completeness, or relevance of any financial data or assumptions. financial performance of the property, projected financial HBA & State Licensed Broker does not serve as a financial performance of the property for any party’s intended use or any advisor to any party regarding any proposed transaction. All and all other matters. data and assumptions regarding financial performance, including that used for financial modeling purposes, may dier Neither HBA, State Licensed Broker, its directors, o cers, from actual data or performance. Any estimates of market rents agents, advisors, or a liates makes any representation or and/or projected rents that may be provided to a party do not warranty, express or implied, as to accuracy or completeness of necessarily mean that rents can be established at or increased to the any materials or information provided, derived, or received. that level. Parties must evaluate any applicable contractual and Materials and information from any source,whether written or governmental limitations as well as market conditions,vacancy verbal, that may be furnished for review are not a substitute for factors and other issues in order to determine rents from or for a party’s active conduct of its own due diligence to determine the property. these and other matters of significance to such party. HBA & State Licensed Broker will not investigate or verify any such Legal questions should be discussed by the party with an matters or conduct due diligence for a party unless otherwise attorney. Tax questions should be discussed by the party with a agreed in writing. certified public accountant or tax attorney. Title questions should be discussed by the party with a title o cer or attorney.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT Questions regarding the condition of the property and whether INVESTIGATION AND DUE DILIGENCE. the property complies with applicable governmental Any party contemplating or under contract or in escrow for a requirements should be discussed by the party with appropriate transaction is urged to verify all information and to conduct engineers, architects, contractors, other consultants and their own inspections and investigations including through governmental agencies. All properties and services are appropriate third party independent professionals selected by marketed by HBA & State Licensed Broker in compliance with all such party. All financial data should be verified by the party applicable fair housing and equal opportunity laws.

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 DEVELOPMENT LAND AUSTIN AIRPORT | TX 2-LOT, SPRINGHILL SUITES + AVID HOTEL FRANCHISE

TABLE OF CON TENTS

EXECUTIVE SUMMARY ...... 5

PROPERTY OVERVIEW...... 9 EXCLUSIVELY LISTED BY

SUBHASH NAIK FINANCIAL OVERVIEW ...... 17 Making Deals Happen 661.978.3109 [email protected] MARKET OVERVIEW...... 25 ...... CalBRE #01717362

ASHISH CHOPRA NITI NAIK Listing Agent Licensed Broker 916.718.4571 661.808.4998 [email protected] [email protected] CalBRE # 020834401 TX Broker #735690

HOTEL BROKERS OF AMERICA America’s Hotel Brokers’ Broker www.HBofAmerica.com.com ACCEPTING REASONABLE OFFERS

DEVELOPMENT LAND | AUSTIN SPRINGHILL SUITES BY MARRIOTT + AVID BY IHG

HOTEL BROKERS OF AMERICA America’s Hotel Brokers’ Broker

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. For more information please contact Hotel Brokers of America. DEVELOPMENT LAND AUSTIN AIRPORT EXECUTIVE SUMMARY America’s Hotel Brokers’ Broker

Hotel Brokers of America is pleased to oer, on an exclusive basis, the opportunity to acquire these hotel development sites. The land site is located on the corner of Thornberry Road and Night Star Drive, o of Highway 71, right near the Austin Airport. We are asking interested parties to submit oers for the lots at $3,500,000 each. These parcels are to be developed, and are oered with the Franchise right to Marriott Brands, including Springhill Suite.

This is a great opportunity to enter the growing Austin, TX market!

INVESTMENT HIGHLIGHTS

STRONG LOCATION NEAR A VARIETY OF DEMAND GENERATORS capacity up to 14,000 people. Together, COTA and Austin360Amphitheater have become a major economic driver in Central Texas, with more than 1.2 million The development site’s highly visible location near the Austin-Bergstrom Interna- people from across the globe attending events at the facilities each year. COTA’s tional Airport’s main intersection strategically positions it proximate to a strong signature event, the Formula One U.S. Grand Prix, has had an attendance of more mix of demand drivers, including: This is a great opportunity to enter the growing than 230,000 people each year since opening in 2012. Austin, TX market!

Strong Corporate Presence Several large o ce users are located within a fivemile • Austin-Bergstrom International Airport ABIA Total Passenger Activity radius, including University of Texas (300,000 SF), Silicon Laboratories (290,000 With over 150 daily departures to 47 Year Passengers % Change SF), and Progressive Insurance (215,000 SF), among others. domestic & international destinations, ABIA is one of the country’s fastest 2011 9,080,875 - growing airports. Total passengers at the 2012 9,430,314 3.8% airportincreased 11% to 11.9 million in 2013 10,017,958 6.2% AVAILABLE LAND OVERVIEW 2015, reflecting the fifth consecutive year 2014 10,718,854 7.0% of record-breaking tra c. The Hotel’s PARCEL 1 location directly adjacent to the airport 2015 11,897,959 11.0% Address: 1400 Landing Lane, Austin TX 78742 provides a very consistent and rapidly 3/15 YTD 2,524,735

growing room-night generator. 3/16 YTD 2,778,919 10.1% Acres: 2.69 Acres

Source: austintexas.gov Franchise Rights: Springhilll Suites by Marriott • Circuit of The Americas (COTA) and Austin 360 Ampitheater Circuit of The Americas, a motor racing facility located approximately five miles from the PARCEL 2 Hotel, was the first in the U.S. to be purpose-built for Formula One & hosts Address: 3006 Meldrum Road, Austin TX 78742 over 30 major race events, annually, including ESPN X Games. The COTA facilities also include the Austin360Ampitheater, a major concert/event venue Acres: 2.41 Acres with Franchise Rights: Avid by IHG SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 5 PROPERTY DESCRIPTION America’s Hotel Brokers’ Broker

EXCELLENT DEVELOPMENT OPPORTUNITY

We are oering the properties at a $3,500,000 per lot. These sites are to be developed, and come with the land and franchise rights to Marriott & IHG Brands.

STRENGTH OF MARRIOTT & IHG FRANCHISE AFFILIATIONS

Each Property currently oers a franchise agreement - Lot 1 at 1400 Landing Lane oers rights to develop a Springhill Suites hotel by Marriott & Lot 2 at 3059 HWY 71 oers the right to develop an Avid hotel by IHG. These properties benefit immensely from their franchise a liation with the highly desired Marriott & IHG brand families and the access to its top loyalty program and strong worldwide distribution system.

THRIVING AUSTIN MARKET

Consistently ranked as Forbes’ #1 “Fastest Growing City in America,” including most recently in 2016, Austin continues to lead the nation in economic growth.

• Austin has surpassed Silicon Valley as the top city for start-ups with 180 start-up businesses in 2015, in addition to companies with an existing Austin presence such as Apple, 3M, Hewlett-Packard, Facebook, AMD, eBay/PayPal, Intel Corporation, Samsung Group, Oracle Corporation, and many others.

• Recognized as the “Live Music Capital of the World,” Austin oers a wide array of internationally celebrated events such as South by Southwest, Austin City Limits Music Festival, Global X Games circuit, and the Circuit of The Americas/Formula One Grand Prix, which attracts an annual attendance equivalent to the Super Bowl.

• The Austin hotel market has achieved incredibly strong annual gains in all fundamental metrics over the last five years, averaging 9.4% annual RevPAR growth from 2010 to 2015.

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 EXECUTIVE SUMMARY America’s Hotel Brokers’ Broker

SUMMARY OF TERMS

INTEREST OFFERED Hotel Brokers of America has been selected to exclusively market for sale this development land opportunity in Austin, TX.

TERMS OF SALE This development land opportunity in Austin, TX is oered on an Open Bid basis. The net operating income figures for the Property assume a fiscal year starting 2020. Contact broker for historical operating documentation and any other third party reports.

PROPERTY TOURS Prospective purchasers are encouraged to visit the subject properties prior to submitting oers. However, all property tours must be arranged with the Hotel Brokers of America listing agents. Please do not contaAct the tenants, on-site management or sta without prior approval property tours must be arranged with the Hotel Brokers of America listing agents. At no time shall the tenants, on-site management or sta be contacted without prior approval.

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 DEVELOPMENT LAND AUSTIN AIRPORT

PROPERTY OVERVIEW HOTEL BROKERS OF AMERICA COMPETITORMARKET OVERVI CLOSEUPEW MAP America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

Austin CBD University of Texas at Austin 52,000 students

Frank Erwin Center

Lady Bird Lake

Austin-Bergstrom International Airport 12 million annual passengers

A A T ECOMPETITORXECUTIVE SU OVERVIEWMMARY MAP America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

CENTRAL BUSINESS DISTRICT

DEVELOPMENT OPPORTUNITY

SUBHASH NAIK | Making Deals Happen 661.978.3109 | [email protected] | CalBRE #01717362 8 HOTEL BROKERS OF AMERICA DEVELOPMENT LAND AUSTIN AIRPORT

MARKET OVERVIEW HOTEL BROKERS OF AMERICA MARMARKKEETT OVERVIOVERVIEEWW America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

LOCATION OVERVIEW

This development opportunity in Austin Airport is located in southeast Austin, adjacent to Austin-Bergstrom International Airport and is located in southeast Austin, adjacent to Austin-Bergstrom International Airport and five miles from downtown Austin. The Property is well positioned with easy access to State Highway 71, U.S. 183, and Interstate 35, providing access to all parts of Austin. The Hotel also enjoys easy access to Circuit of the Americas motor racing facility and its Austin360Ampitheater concert/event venue which bring more than 1.2 million annual guests from all over the world. The Hotel is located within the master-planned development, MetCenter O ce Park which is comprised of over 2 million square feet of o ce/flex space.

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362

19 MARKET OVERVIEW MARKET OVERVIEW America’s Hotel Brokers’ BrokerAUS TIN AIRP ORT

THRIVING AUSTIN ECONOMY The unemployment rate in the Austin-Round Rock MSA was 3.1% as of February 2016, well below that of the United States (4.9%). Ranked by Forbes as the #1 “Fastest Growing City in America” in 2011-2014 and 2016, Austin continues to lead the nation in population and job growth, luring new companies at an incredible rate with more than 100 corporate relocations or expansions last year alone. The reasons abound: Central Texas boasts a cosmopolitan atmosphere without the big city hassle and ranks high in quality of life, reasonable cost of living and has a young, well-educated, vibrant population – which is supported by the city’s institutes of higher education, most notably the University of Texas at Austin. Couple this with Austin’s relatively low cost of doing business and it is not di cult to see why the area is one of the most desirable places to do business, not only in Texas, but in the country.

AUSTIN-BERGSTROM INTERNATIONAL AIRPORT (ABIA) With over 150 daily departures to 47 destinations in the U.S., Canada, Mexico, and Europe, the airport is now the 34th busiest airport (total passengers) in the United States. For 2015, total passenger tra c was an airport record 11,897,959, up 11% compared to 2014. The airport is again on pace to set a new passenger record as tra c for March 2016 YTD was 2,778,919, up 10.1% compared to March 2015 YTD. The airport’s annual economic impact to the Central Texas region is $2.4 billion.

• Five consecutive years of record-breaking tra c with 2016 on pace to set a new record

•Annual passenger count surpasses the City of Austin’s population by 5 times

•March 2016 was the third busiest month in ABIA history

•Passenger growth in 74 of past 75 months – 42 consecutive months of passenger growth

•Supports more than 48,000 jobs, which is 7% of the total jobs in Austin

• Produces an annual economic impact of more than $2.4 billion

ABIA TOTAL PASSENGER ACTIVITY

2011 9,080,875

2012 9,430,314 3.8%

2013 10,017,958 6.2%

2014 10,718,854 7.0%

2015 11,897,959 11.0%

3/15 YTD 2,524,735

3/16 YTD 2,778,919 10.1%

Source: austintexas.gov Austin-Bergstrom International Airport

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 PROXIMITYMARKET OVERVI MAP EW America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

CIRCUIT OF THE AMERICAS (COTA) AND AUSTIN360AMPITHEATER Circuit of The Americas (“COTA”), a $400-million motor racing facility located approximately five miles from the Hotel, was the first in the U.S. to be purpose-built for Formula One. The Hotel and its neighbors are the closest lodging facilities to the COTA venue. The COTA facilities also include the Austin360Ampitheater, a major concert/event venue for capacity of 14,000 people. Together, COTA and Austin360Amphitheater have become a major economic driver in Central Texas, with more than 1.2 million people from across the globe attending 30+ COTA events each year. COTA’s signature event, the Formula One United States Grand Prix, has had attendance of more than 230,000 people each year for the past three years.

• 3.4-mile circuit track with capacity for 120,000 fans

• 1.2 million annual visitors from all over the world

• Formula 1 generates $500 million in economic impact for the Austin MSA

•All other major sporting events, including ESPN’s X Games, generate an additional $160 million in economic impact

• Concerts and events at Austin360Amphitheater generate $50 million in economic impact

•Track rentals and other miscellaneous events generate $15 million in economic impact

•Track operations support 9,100 jobs in the region

• Racing-focused amenities include a private Motorsports Driving Club and a Karting Track

•A Formula 1 season is viewed by an estimated 520 million people in 187 countries Circuit of The Americas •Austin360Ampitheater won Pollstar’s 2013 “Best New Major Concert Venue in the World”

•Austin360Ampitheater hosts over 20 shows per year

•Austin360Ampitheater attracts national touring shows and is the largest outdoor entertainment space in Central Texas

Austin360Amphitheater

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 DEMOGRAPHICSMARKET OVERVI OVERVIEWEW America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

AUSTIN HIGHLIGHTS

• HIGH TECH ECONOMY: Known as “Silicon Hills” because of its high concentration of technology companies, Austin is currently home to approximately 4,400 technology companies with more than 109,000 employees and draws on the thousands of graduates each year from the computer science and engineering programs at top flight local universities to provide qualified employees to fuel Austin’s technology and defense industry industries. Austin has surpassed Silicon Valley as the top city for start-ups with 180 start-up businesses in 2015, in addition to companies with an existing Austin presence such as Apple, 3M, Hewlett-Packard, Facebook, AMD, eBay/PayPal, Intel Corporation, Samsung Group, Oracle Corporation, and many others. In addition to Apple’s 3,000-employee expansion and GM’s new 500-employee Innovation Center, recent announcements include National Instruments plans for a 10-year, 1,000-employee expansion, IBM’s plan to hire up to 1,000 new employees by 2018, and Oracle Texas State Capitol Corporation’s plans to build a 560,000-square-foot campus along Lady Bird Lake in East Austin.

• TEXAS STATE CAPITAL: As the capital of Texas and the Travis County seat, Austin has a greater than average share of government o ces as state, local, and federal government agencies employ 166,700 people – providing a stabilizing influence to the local economy and attracting national and international visitors.

• LIVE MUSIC CAPITAL: Live music contributes $1.7 billion to Austin’s annual economic impact from tourism of $6.7 billion each year and supports more than 18,000 jobs. Austin is home to over 250 live music venues, ranking it as the number one city in the U.S. in venues per capita. The city’s music scene features over 90 annual events, including the internationally-recognized South South by Southwest Austin City Limits by Southwest (SXSW) and Austin City Limits music festivals.

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 MARKET OVERVIEW MARKET OVERVIEW America’s Hotel Brokers’ BrokerAUS TIN AIRP ORT

• EDUCATION AND RESEARCH FACILITIES: The University of Texas at Austin, a doctoral/research university and the fifth largest university in the U.S., provides Austin employers with a young and highly educated workforce and helps drive company expansions and relocations. Austin is a proven center for creativity, innovation and invention illustrated by the University of Texas ranking third in the nation in the number of patents earned.

•TOURIST DESTINATION: Strong visitor industry draws nearly 23 million annual visitors to the region, generating $6.7 billion annually in tourism.

EVENTS AND ATTRACTIONS ATTENDEES

COTA & Austin360Ampitheater 1,200,000 (Annual)

Austin Trail of Lights 400,000

Austin City Limits (ACL) 375,000 Star of Texas Fair and Rodeo 300,000 University of Texas at Austin Pecan Street Festival 300,000

South by Southwest (SXSW) 85,000

UT Austin Football Game (Home Game) 61,000

Fun Fun Fun Fest 55,000

Austin Reggae Festival 45,000

Annual Clyde Littlefield Texas Relays 40,000

Moontower Comedy & Oddity Fest 20,000

Urban Music Festival 15,000

Austin Marathon 15,000

SUBHASH NAIK |

HOTEL BROKERS OF AMERICA 661.978.3109 | PROXIMITYMARKET OVERVI MAP EW America’s Hotel Brokers’ Broker

LOCATION OVERVIEW SUMMARY Although it maintains a laid-back vibe, the city dedicated to “Keeping Austin Weird” shows no signs of slowing down. A booming economy, growing job market, high quality of life and low cost of living make Austin a sought-after city for all ages. As one of the nation’s top economic performers, Austin is a high-growth city with a young, vibrant population that attracts business and tourism. Aectionately deemed “The Live Music Capital of the World,” Austin boasts 250 live music venues and is home to South by Southwest (SXSW) and the ACL Music Festival, two of America’s largest media events. The metro leads the nation in terms of population growth, fueled largely by the strongest rate of net domestic in- migration with an impressive 157 people moving to the city a day. For the fifth year in a row, Austin is the fastest growing metropolitan area with a population over 1 million. Named by Forbes as America’s No. 1 Boom Town, Austin has one of the highest job creation rates in the country (3.8%) and the lowest unemployment rate (3.1%) among the top 50 metros in the U.S. Earning the nickname “Silicon Hills,” Austin’s strong economic performance is in large part driven by the area’s flourishing tech boom which competes with that of Silicon Valley. For a variety of economic and cultural reasons, Austin is quickly emerging as a destination of choice for tech startups as well as many of the nation’s top technology 6th Street companies including Apple, Google, Facebook, Oracle, eBay, Dell, IBM and Samsung to name a few. Austinites enjoy a reasonable cost of living with a median home price that is below the national average, lack of state taxes and the highest per capita income of all major cities in the Lone Star State. Austin is an enchanting city celebrated for its robust natural beauty and abundance of outdoor amenities, including Lady Bird Lake, Austin Hike and Bike Trail, Barton Creek, Lake Austin and numerous greenbelts. Central Texas boasts a cosmopolitan atmosphere without the big city stress and it is not hard to see why many people love to call Austin home.

Austin Marathon Lake Austin

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 DEMOGRAPHICSMARKET OVERVI OVERVIEWEW America’s Hotel Brokers’ Broker AUS TIN AIRP ORT

Fastest Growing City for 4th Consecutive Year - Forbes

#1 City for Millennials - Tim e

#1 Best City to Live In - NerdW allet

#1 Next Biggest Boom Town - Forbes

#1 for Economic Climate - Forbes AUSTIN POPULATION

#1 for Economic Performance - Brookings GROWTH 2010-2015

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 MARKET OVERVIEW MARKET OVERVIEW America’s Hotel Brokers’ BrokerAUS TIN AIRP ORT

AUSTIN ECONOMIC OVERVIEW Consistently named among the best places to live and work, Austin is universally regarded for its thriving economy, low cost of living and enviable quality of life. Forbes magazine deemed the metropolitan area “America’s No. 1 Boom Town” and according to Kiplinger, Austin is the No. 1 “Best City for the Next Decade.” As one of the nation’s top economic performers, Austin is a high-growth city with a young, vibrant population that attracts business and tourism. The area’s population has grown a cumulative 13.0 percent in the last five years – the second fastest among all U.S. metros. Austinites enjoy a reasonable cost of living, with a median home price that is below the national average, and the highest per capita income of all major Texas cities. Low operating expenses, coupled with an educated, highly skilled labor force and lack of state taxes, makes Austin one of the most desirable places in the country to do business.

Austin’s booming economy shows no sign of slowing down and over the past year, total employment has risen nearly twice as fast as the national average. IT-related industries, professional services and other private services, including tourism and hospitality are the primary drivers behind Austin’s economic success. As the capital of the State of Texas and the Travis County seat, Austin has a considerable share of government o ces. State, local and federal government agencies employ approximately 167,000 people in the Austin area, providing a stabilizing influence on the local economy. The number of startups and companies considering relocation or expansion to the city has risen steadily in recent years. In 2015, the city hailed 100 new relocation and expansion announcements, which are expected to create more than 10,000 jobs. Among the companies planning to locate significant new facilities in the region or expand existing operations are Accenture, Apple, Athenahealth, Dropbox, eBay, General Motors, Oracle, Parsley Energy, Union Pacific, Visa and Austin-based Whole Foods.

Austin is centrally located in the heart of the Texas Triangle between Dallas/Fort Worth, Houston and San Antonio. The city is situated on the primary North American Free Trade Agreement (NAFTA) transportation artery – Interstate 35 – and is at the crossroads of other major highways, such as U.S. 183 and U.S. 290, which provide direct access to major Texas and national metropolitan areas. The region’s rapidly growing population, strong transportation linkages, and an increasingly diverse business community are key dynamics that will allow Austin to remain a top metropolitan area in the United States for years to come.

SUBHASH NAIK | 27 HOTEL BROKERS OF AMERICA 661.978.3109 | MARKET OVERVIEW MARKET OVERVIEW America’s Hotel Brokers’ BrokerAUS TIN AIRP ORT

POPULATION EMPLOYMENT Austin continues to be one of the most attractive metros in the country due Jobs are plentiful in Austin and the city has experienced steady employment to its exceptional economic and population growth. It was recently ranked growth that exceeds the national average. Austin’s strong economic performance by Forbes as the #1 “Fastest Growing City in America” in 2011-2014 and 2016. is driven largely by the area’s flourishing IT industry, which includes many of the The Austin area has a population of approximately 2.1 million residents and is nation’s top technology companies including Apple, Facebook, Google, Oracle, estimated to grow by 34.4 percent over the next 10 years. In 2015, the population eBay, Dell, IBM and Samsung to name a few. According to Moody’s Economy. grew by 3.0 percent, compared to the 1.8 percent growth for the entire State com, over the next five years Austin is expected to add jobs at a rate of more than of Texas. Fueled by the city’s robust job growth, Austin had an in-migration of 2.5 percent annually, for a net total of 121,300 new positions. The unemployment 65,000 people in 2015. While Austin is gaining many new residents from other rate in the Austin-Round Rock MSA was 3.1% as of February 2016, well below Texas metropolitan areas, the city is also seeing an uptick in people arriving that of the United States (4.9%). from large metros outside the state, including Los Angeles, Chicago and New York City. The Austin metro is expected to remain among the nation’s top ten growth leaders, with forecasts calling for nearly 250,000 new Austin residents by the end of 2020.

EMPLOYMENT GROWTH: AUSTIN VS. TEXAS VS. U.S. POPULATION GROWTH: AUSTIN VS. TEXAS VS. U.S.

6.0% 3.50% 5.0% 3.00% 4.0% 2.50% 3.0% 2.00% 2.0% 1.50% 1.0% 1.00% 0.0% 0.50% -1.0% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Austin U.S. Texas Austin U.S. Texas

Source: Moody’s Economy.com Source: Moody’s Economy.com

SUBHASH NAIK |

HOTEL BROKERS OF AMERICA 661.978.3109 | MARKET OVERVIEW MARKET OVERVIEW America’s Hotel Brokers’ BrokerAUS TIN AIRP ORT

Over the past decade, Austin’s economy has increasingly diversified beyond its technology roots. Government, education and healthcare now represent a significant share of Austin’s total employment base, with professional services, hospitality and tourism experiencing substantial gains in recent years. Austin’s healthcare and biotechnology industries are now experiencing a surge in activity, as well. The University of Texas is currently under construction on the Dell Medical School, the first medical school in nearly 50 years to be built from the ground up at a top tier Association of American Universities (AAU) research university. The 500,000-square-foot campus, which will include the $295-million Seton Medical Center teaching hospital, is expected to open in 2017.

EXPANSIONS AND RELOCATIONS As the Greater Austin Chamber of Commerce proudly states, “The Austin area won’t just welcome your business – it will make it better.” Austin has thrived in recent years, with new companies moving to the area and existing firms expanding their current operations. There have been nearly 500 relocation and expansion announcements since 2010, including at least 100 new announcements in 2015 that will contribute more Apple Campus than 10,000 jobs to the local economy. This influx of new jobs is stimulating commercial and construction activity in Austin, creating new opportunities for businesses, residents and the city.

Recent Expansions:

•Apple has strengthened their investment in Austin with a new $300-million, 1-million-square-foot Americas Operation Center to house over 6,000 employees.

• eBay’s estimated $5.1-million capital investment brought over 1,000 jobs to the Austin area.

• Oracle recently announced its plans to invest $6.4 million into constructing a 560,000-square-foot campus, increasing its 1,100 Austin workforce by 50%.

Oracle Campus

SUBHASH NAIK |

HOTEL BROKERS OF AMERICA 661.978.3109 | HOTEL BROKERS OF AMERICA RECENT SALES

Hotel Price Per Key City MSA State Status Comfort Suites $6,400,000 $52,083 San Antonio San Antonio TX Sold Candlewood Suites $4,650,000 $58,861 O’Fallon St. Louis IL Sold Country Inn $8,350,000 $75,909 Dallas Dallas TX Sold Hampton Inn $8,600,000 $107,500 Tehachipi Bakersfield CA Sold Hampton Inn $7,700,000 $97,468 Nacogdoches Houston TX Sold Best Westen $2,862,200 $68,148 Post Lubbock TX Sold Hampton Inn $11,250,000 $142,405 Mc Kinney Dallas TX Sold Holiday Inn Express $4,400,000 $73,333 Decatur Dallas TX Sold Comfort Suites $6,400,000 $116,364 Bakersfield Bakersfield CA Sold Country Inn & Suites $8,150,000 $101,875 [DFW] Irving Dallas TX Sold Hampton Inn $9,800,000 $124,051 Kyle Austin TX Sold Quality Inn $8,800,000 $58,667 Irving Dallas TX Sold Best Western PLUS $9,900,000 $99,000 Orlando Orlando FL Sold Comfort Inn $6,400,000 $85,333 Overland park Kansas City KS Sold Rodeway Inn $2,150,000 $36,441 Gatesville Waco TX Sold Country Inn & Suites $8,800,000 $80,000 Dallas Dallas TX Sold Towne Place By Marriott $8,550,000 $106,875 Fort- Worth Dallas TX Sold Holiday Inn Express $5,750,000 $82,143 Waxahachie Dallas TX Sold Comfort Suites $5,650,000 $73,377 Warner Robins Atlanta GA Sold Best Western PLUS $6,400,000 $95,522 Olathe Kansas City KS Sold Baymont $6,500,000 $85,526 Dallas Dallas TX Sold Clarion Inn $4,100,000 $40,594 Pueblo Colorado Springs CO Sold Hilton Garden Inn $11,000,000 $78,571 Shreveport Shreveport LA Sold Hampton $9,000,000 $104,651 Natchez Natchez MS Sold Hampton $7,500,000 $104,167 Hutto Austin TX Sold Candlewood $8,750,000 $105,422 Odessa Odessa TX Sold Hampton $7,150,000 $102,143 Pearsall San Antonio TX Sold Best Western $6,350,000 $67,553 Yucca Valley Palm Springs CA Sold HI Express $8,700,000 $127,941 Kennedy San Antonio TX Sold Super 8 $4,600,000 $115,000 Karnes City San Antonio TX Sold Hampton $8,900,000 $134,848 Pleasanton San Antonio TX Sold Hampton $9,990,000 $136,849 Cotulla San Antonio TX Sold La Quinta $9,300,000 $140,909 Pearsall San Antonio TX Sold Hampton $7,500,000 $107,143 Beeville San Antonio TX Sold Hampton $6,650,000 $100,758 Center Houston TX Sold

AVERAGE PRICE PER KEY HAMPTON & HI EXPRESS : $119,873 AVERAGE PRICE PER KEY ALL DEALS : $95,472

SUBHASH NAIK | Making Deals Happen 661.978.3109 | [email protected] | CalBRE #01717362 HOTEL BROKERS OF AMERICA THINKING OF SELLING? HOTELS WANTED FOR READY TO GO 1031 EXCHANGE BUYERS HIGH PRICE PER KEY SALES

MAKING DEALS HAPPEN!

MAXIMUM 90 DAY LISTINGS | COMPLIMENTARY VALUATION OF YOUR HOTEL |

OUR BROKER FEES ARE BEST IN THE BUSINESS | FULL MARKETING OR CONFIDENTIAL LISTING | NATIONAL REPRESENTATION TO 20,000 BUYERS | PROFESSIONAL MARKETING AND PACKAGES | WE COOPERATE WITH ALL BROKERS FOR MAXIMUM EXPOSURE

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 TEXAS ADDENDUM

SUBHASH NAIK | Making Deals Happen

HOTEL BROKERS OF AMERICA 661.978.3109 | [email protected] | CalBRE #01717362 DEVELOPMENT LAND | AUSTIN

SUBHASH NAIK Making Deals Happen 661.978.3109 deals@HBofAmerica,.com CalBRE #01717362

ASHISH CHOPRA Listing Agent 916.718.4571 [email protected] CalBRE #020834401

HOTEL BROKERS OF AMERICA

“America’s Hotel Brokers’ Broker” www.hbofamerica.com