ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM HOTEL BROKERAGE & ADVISORY SERVICES NATIONWIDE ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM Kissimmee, Florida Exclusive Offering Memorandum Exclusively Listed By: Dennis S. Hopper Managing Principal | DSH Hotel Advisors Direct: (813) 605-1756 Mobile: (813) 767-9953 Fax: (941) 777-1121 [email protected] www.DSHHotelAdvisors.com Randy B. Taylor Investment Associate | DSH Hotel Advisors Direct: (813) 605-1779 Mobile: (518) 867-5511 Fax: (941) 777-1121 [email protected] www.DSHHotelAdvisors.com DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice Hotel Brokerage & Advisory Services Nationwide or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that 2 prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price based on their studies. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM Disclaimer and Non-Affiliation Notice DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. DSH Hotel Advisors, Inc is not endorsed, sponsored, or affiliated by any company or entity within this document including corporations whose logos are used within the document. This confidential offering memorandum is prepared in con- junction with the sellers and should only be used for prospective buyers to review basic property information - it is not intended to serve as due diligence material nor should it be used to assist any prospective buyer in making any purchase decision. Neither broker or seller guarantee or warrant accuracy of the offering memorandum. DSH Hotel Advisors and the seller make no representations or warranty the status of the environmental condition of the proper- ty - prospective buyers should seek out a professional to conduct environmental studies to determine the environmental status of property. DSH Hotel Advisors make no representation regarding conditions of the property to include, mold, asbestos, lead based paint, toxic waste, allergens, or any other environmental condition. This property is being offered “as is, where is” without representation or warranty to any physical and legal conditions. The contents within this Offering Memorandum are confidential and intended only for prospective buyers. Prospective buyers are hereby made aware that the contents within this offering memorandum are subject to change and may not be representative of the factual data of the subject property; therefore, it is not recommended to use this document for the purpose of evaluating the subject property for any reason. INTERESTED PARTIES ARE TO MAKE THEIR OWN FINAN- CIAL PROJECTIONS, INVESTIGATIONS AND CONCLUSIONS WITHOUT THE RELIANCE OF THE MATERIALS HEREIN. PROSPECTIVE PURCHASERS MUST CONTACT A DSH HOTEL ADVISORS REPRESENTATIVE IN ORDER TO SCHEDULE A PROPERTY TOUR. PLEASE DO NOT CONTACT THE HOTEL, STAFF, OWNERSHIP, OR VISIT THE PROPERTY WITHOUT CONSENT FROM A DSH HOTEL ADVISORS REPRESENTATIVE. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM TABLE OF CONTENTS EXECUTIVE SUMMARY 6 INVESTMENT OVERVIEW 9 MARKET OVERVIEW 19 FINANCIAL ANALYSIS 24 SEPTEMBER 2019 MONTHLY STR 26 COMPETITIVE SET MAP 31 DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price based on their studies. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM EXECUTIVE SUMMARY DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price based on their studies. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM EXECUTIVE SUMMARY OFFERING OVERVIEW: DSH Hotel Advisors has been retained as the exclusive broker to market for sale the Econo Lodge Kissimmee, a 94-room exterior corridor hotel located directly off of Osceola Pkwy approximately 10 minutes from Walt Disney World. The subject property is well positioned for growth in room demand as the Disney corridor is rapidly expanding with development. PROPERTY CONDITION: The Econo Lodge is in good condition due to the renovations completed and currently underway. It is estimated that the current owners have spent approximately $1,200,000 in Renovations & Additions / PIP requirements. Change of ownership PIP is expected to be minimal - approximately $40,000. RENOVATIONS COMPLETED / IN PROGRESS INCLUDE: NEW SWIMMING POOL NEW POOL EQUIPMENT NEW POOL CHAIRS NEW LOBBY BUILDING WITH BREAKFAST AREA NEW LOBBY DESIGN NEW LOBBY FURNITURE NEW RECEPTIONIST AREA + FISH TANK NEW BANQUET SPACE NEW FF&E ROOM FURNITURE NEW LVT FLOORING DEMAND GENERATORS IN THE IMMEDIATE MARKET: The subject property is in the ideal location to benefit from the aggressive growth taking place at the Walt Disney World Theme Parks. Walt Disney World’s Animal Kingdom Theme Park is located approximately seven miles from the subject property. Additionally, within close proximity is Disney’s Hollywood Studios, Blizzard Beach Water Park, Epcot, Disney Springs, ESPN Wide World of Sports Complex, Osceola Parkway, SeaWorld, and Universal Studios. In addition to the growth of Disney, Margaritaville, a new development which is estimated to cost over $750MM once fully completed, is in the process of developing a massive $50 million dollar waterpark - Margaritaville is located approximately 8 miles away from the subject property. FINANCIAL OVERVIEW: The annual room contract guaranteeing 13,000 booked rooms over 24 months & New Resort Fees will generate approximately $300,000 +/- of additional room revenue annually. DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that 6 prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price based on their studies. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM EXECUTIVE SUMMARY ECONO LODGE KISSIMMEE List Price Market-Bid Number of Rooms 94 Pro-Forma Room Revenue and Resort Fee $1,340,454 Construction Type Concrete Block Buildings 3 Renovations/Additions $1,200,000+/- Estimated PIP Minimal Tenure Fee Simple Management/Debt Unencumbered DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that 7 prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price based on their studies. ECONO LODGE KISSIMMEE EXCLUSIVE OFFERING MEMORANDUM INVESTMENT OVERVIEW DSH Hotel Advisors, Inc. expressly disclaim any representation or warranty regarding the accuracy of the contents within this document and for any error or omissions in the contents of the document. DSH Hotel Advisors, Inc. is not qualified to provide financial, tax, or legal advice or counsel. It is recommended that any such advice be obtained by a tax professional, attorney or accountant. It is not recommended that prospective buyers evaluate this property based on the contents found within this document; rather, it is recommended that prospective buyers conduct thorough due diligence and arrive at a purchase price