Offering Memorandum DAYS INN & SUITES YOUNGSTOWN/GIRARD 1615 E Liberty St • Girard, OH 44420 1 NON - ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. 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DAYS INN & SUITES YOUNGSTOWN/GIRARD Girard, OH ACT ID Y0300456 BOR: Michael Glass 230 West St., Suite 100, Columbus, OH 43215 TEL: 614-360-98 2 DAYS INN & SUITES YOUNGSTOWN/GIRARD TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo Parcel Map FINANCIAL ANALYSIS 02 STR Historical P&L 5 Year Pro Forma Acquisition Financing MARKET COMPARABLES 03 Sales Comparables MARKET COMPETITORS 04 Competitive Set Performance Competitor Data MARKET OVERVIEW 05 Market Analysis Demographic Analysis 3 DAYS INN & SUITES YOUNGSTOWN/GIRARD INVESTMENT OVERVIEW 4 DAYS INN & SUITES YOUNGSTOWN/GIRARD OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA CURRENT YEAR 1 MAJOR EMPLOYERS Price $2,250,000 CAP Rate 16.94% 15.57% PIP $0 Net Operating Income $391,225 $350,424 EMPLOYER # OF EMPLOYEES 56.42% / 47.36% / Down Payment 20% / $450,000 Net Cash Flow After Debt St Elizabeth Health Center 2,500 $253,904 $213,103 Service GE 1,570 69.74% / 60.68% / Loan Amount $1,848,000 Total Return Youngstown State University 728 $313,844 $273,043 Loan Type Proposed New William F Maag Jr Library 540 Interest Rate / 4.25% / 20 Nationa Lease 461 Amortization Years Northeast Ohio Corrections 450 Price/Room $42,453 BOARD OF MAHONING COUNTY 400 Ownership Type Fee Simple COMMI Number of Rooms 53 Exal Corporation 385 Rentable Square Feet 25,658 Westview Apartments Ohio LLC 385 Number of Buildings 1 Mahoning County 384 Number of Stories 2 US Post Office 333 Year Built 1978 Brentwood Originals Inc 330 Lot Size 2 acre(s) DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2018 Estimate Pop 3,133 33,785 87,774 2010 Census Pop 3,192 34,597 89,534 2018 Estimate HH 1,261 13,180 35,048 2010 Census HH 1,314 13,791 36,429 Median HH Income $42,434 $37,892 $35,937 Per Capita Income $22,097 $21,394 $20,861 Average HH Income $54,490 $53,270 $50,259 #5 DAYS INN & SUITES GIRARD OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to present an opportunity to acquire a newly renovated Days Inn & Suites less than 4 miles from Youngstown State University and less than 5 miles from Covelli Center & Downtown Youngstown. The subject property is one hour from Cleveland, Ohio and Pittsburgh, Pennsylvania. The Days Inn & Suites Youngstown/Girard Ohio has an occupancy of 56.13 percent, ADR of $60.29, and a RevPAR of $33.84 The hotel currently operates at 42.94 percent margins which is a net operating income $391,225.00 The Subject property generates roughly $780,000.00 in room revenues, 60 percent Occ, $59 ADR and a net operating income ranging from $370,000 - $390,000.00. The Days Inn & Suites Youngstown presents investors an opportunity to acquire a Limited Service product surrounded by multiple demand generators, significant upside potential through hands on management and the ability to achieve over a 45% (EBITDA) return year over year for the then five years. All rooms and suites include en-suite bathrooms with showers and tubs, free Wi-Fi, TVs, and desks with ergonomic chairs. Other amenities include microwaves, mini- fridges, and tea and coffeemakers. Whirlpool tub suites are available. Also currently includes a continental breakfast buffet as well as parking for cars, trucks and buses. There is a heated indoor pool, hot tub, fitness center, and business centers with meeting rooms available. The subject property also has an owners apartment which consists of two floors, two living rooms, two full kitchens, three bed rooms, two full baths,, and patio area.. INVESTMENT HIGHLIGHTS . 53 Rooms . Highly Visible Location - Directly off Interstate (I-80) . Renovated In 2018 . One Hour from Pittsburg and Cleveland . 4 Miles North of Downtown Youngstown . Owners Apartment - Two Floors, Two Living Spaces, Two Kitchens, Three Bed Rooms, Two Full Baths, and Patio Area 6 DAYS INN & SUITES GIRARD OFFERING SUMMARY PROPERTY OVERVIEW All rooms and suites include en-suite bathrooms with showers and tubs, free Wi-Fi, TVs, and desks with ergonomic chairs. Other amenities include microwaves, mini-fridges, and tea and coffeemakers. Whirlpool tub suites are available. Also currently includes a continental breakfast buffet as well as parking for cars, trucks and buses. In 2019 all rooms received brand new mattresses, bedspreads, & bed sheets. Features brand new water heaters in 2019 as well. There is a heated indoor pool, hot tub, and fitness and business centers with meeting rooms available. The subject property also has an owners apartment which consists of two floors, two living rooms, two full kitchens, three bed rooms, two full baths, and patio area. The Seller has owned this hotel for 25 years, it was a former Econo Lodge, and in 2007 they converted it into a Days Inn & Suites by Wyndham. Common Area Amenities ***Main reason current owner is selling is due to the fact that they now live in Eastern Pennsylvania.*** . Complimentary Breakfast . Complimentary Wireless Internet Connection . Business Center & Meeting Rooms . Fitness Center . Indoor Heated Pool Guest Room Amenities . Desk & Ergonomic Chairs . New Mattresses & Bedspreads-Sheets . Coffee/Tea Maker . Television & Direct Dial Phone . Mini-Refrigerator & Microwave #7 DAYS INN & SUITES GIRARD PROPERTY OVERVIEW LOCATION OVERVIEW The Days Inn & Suites Youngstown is located off of Interstate 80 the most traveled US interstate with business from a wide range of demand generators from large corporations to leisure travel attractions. The hotel is only 5 mile from one of the area’s top employers InfoCision. One of the premier companies in direct marketing services, InfoCision employs 1500 area residents through their main campus. Other major area employers include AT&T, Delphi Packard, General Electric, General Motors Lordstown Plant, and Youngstown State University. Area leisure attractions are anchored by all Ohio’s Mahoning Valley has to offer. The area is home to the Covelli Center, Hollywood Gaming Racino, Eastwood Mall, Southern Park Mall, and The Butler Institute of American Art with many more attractions just a short drive away in Pennsylvania . 8 DAYS INN & SUITES GIRARD PROPERTY OVERVIEW 9 DAYS INN & SUITES YOUNGSTOWN/GIRARD OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING ROOM TYPES Property Days Inn & Suites Youngstown/Girard NUMBER OF ROOMS ROOM TYPE Price $2,250,000 26 Double Property Address 1615 E Liberty St, Girard, OH 16 Queen Assessors Parcel Number 12-598854 9 King Zoning Commercial - Hotel/Motel 2 ADA Compliant SITE DESCRIPTION PROPOSED FINANCING Number of Rooms 53 FIRST TRUST DEED ADA Rooms 2 Loan Amount $1,848,000 Number of Stories 2 Loan Type Proposed New Year Built/Renovated 1978 / 2014 Interest Rate 4.25% Ownership Type Fee Simple Amortization 20 Years Lot Size 2 acre(s) Loan Term 10 Years Parking 70 Loan to Value 82% Location Highway Exit Debt Coverage Ratio 2.85 CONSTRUCTION SECOND TRUST DEED Foundation Concrete Loan Type All Cash Framing Brick Exterior Stucco Parking Surface Asphalt Roof Shingle/Pitched MECHANICAL HVAC Individual PTAC Elevators NO CHANGE TO FRANCHISE Application Fee $35,000.00 Parent Company Wyndham Hotel Group 10 DAYS INN & SUITES YOUNGSTOWN/GIRARD REGIONAL MAP 11 DAYS INN & SUITES YOUNGSTOWN/GIRARD LOCAL MAP 12 DAYS INN & SUITES YOUNGSTOWN/GIRARD AERIAL PHOTO 13 DAYS INN & SUITES YOUNGSTOWN/GIRARD PARCEL MAP 14 DAYS INN & SUITES YOUNGSTOWN/GIRARD PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm.