RESTRICTED APPRAISAL REPORT FOR AGGREGATE PORTFOLIO Courtyard by Marriott Tampa North Fairfield Inn & Suites Marriott Orlando Ocoee Holiday Inn Express Fort Myers East The Forum Holiday Inn Express Sarasota East I 75 Staybridge Suites Tampa East Brandon Wingate by Wyndham Tampa at USF SUBMITTED TO:EXISTING PREPARED BY: Mr. Martin Pinsker HVS Consulting & Valuation American Hotel Income Properties REIT, Inc. Division of TS Worldwide, LLC 401 West Georgia Street, Suite 1660 3000 Weslayan Street, Suite 385 Vancouver, British Columbia, V6B 5A1 Houston, Texas, 77027 +1 (604) 633-2853 +1 (615) 982-3539 November-2016 November 10, 2016 Mr. Martin Pinsker American Hotel Income Properties REIT, Inc. HVS HOUSTON 401 West Georgia Street, Suite 1660 3000 Weslayan Street, Suite 385 Vancouver, British Columbia, V6B 5A1 Houston, Texas, 77027 +1 (615) 982-3539 +1 (516) 742-3059 FAX Re: Courtyard by Marriott Tampa North www.hvs.com 13575 Cypress Glen Lane, Tampa, Florida Fairfield Inn & Suites Marriott Orlando Ocoee 10971 West Colonial Drive, Ocoee, Florida Holiday Inn Express Fort Myers East The Forum 3427 Forum Boulevard, Fort Myers, Florida Holiday Inn Express Sarasota East I 75 5730 Gantt Road, Sarasota, Florida Staybridge Suites Tampa East Brandon 3624 North Falkenburg Road, Tampa, Florida Wingate by Wyndham Tampa at USF 3751 East Fowler Avenue, Tampa, Florida Dear Mr. Pinsker: Pursuant to your request, we herewith submit our appraisal report pertaining to the above-captioned hotels. This is a restricted appraisal report intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) for a restricted appraisal report, as provided by the Appraisal Foundation. It is intended for the restricted use of American Hotel Income Properties REIT, Inc. only and may not be relied upon by other parties; furthermore, the rationale for how we arrived at our opinions and conclusions may not be properly understood without additional information in our work file. At the client’s request, we have included the ‘as is’ value of the portfolio of six hotels, henceforth referred to as The Portfolio, in aggregate form. Based on our analysis, it is our opinion that the “as is” market value of the fee simple interest in the real and personal property of The Portfolio, as of September 16, 2016, is: $63,500,000 Superior results through unrivaled hospitality intelligence. Everywhere. SIXTY-THREE MILLION FIVE HUNDRED THOUSAND DOLLARS This value estimate equates to $113,500 per room. This represents the "as is" value of The Portfolio, assuming a total capital expenditure of $5,568,000 for the six properties. In the event that the actual cost differs from the amount stated, the value of The Portfolio may change. It is assumed that the capital improvements will be completed in a competent and timely manner. The capital expenditures will be discussed in detail in a subsequent section of this report This report is subject to the extraordinary assumption that capital deductions will be required to fund necessary upgrades for The Portfolio. The use of this extraordinary assumption may have affected the assignment results. Moreover, several important general assumptions have been made that apply to this report and our valuations of hotels in general. These items are set forth in the Assumptions and Limiting Conditions chapter of this report. We hereby certify that we have no undisclosed interest in The Portfolio, and our employment and compensation are not contingent upon our findings. This study is subject to the comments made throughout this report and to all assumptions and limiting conditions set forth herein. Sincerely, TS Worldwide, LLC J. Carter Allen, MAI, Senior Vice President [email protected], +1 (615) 982-3539 State-certified general appraiser RZ3785 Table of Contents SECTION TITLE PAGE 1. Summary of Salient Data and Conclusions 1 2. Nature of the Assignment 8 3. Real Estate Overview - Courtyard by Marriott Tampa North 15 4. Real Estate Overview - Fairfield Inn & Suites Marriott Orlando Ocoee 32 5. Real Estate Overview - Holiday Inn Express Fort Myers East The Forum 49 6. Real Estate Overview - Holiday Inn Express Sarasota East I 75 65 7. Real Estate Overview - Staybridge Suites Tampa East Brandon 82 8. Real Estate Overview - Wingate by Wyndham Tampa at USF 98 9. Market Area Analysis - Tampa 113 10. Market Area Analysis - Orlando 130 11. Market Area Analysis - Fort Myers 142 12. Market Area Analysis - Sarasota 154 13. Lodging Trends 166 14. Approaches to Value 170 15. Income Capitalization Approach 172 16. Sales Comparison Approach 177 17. Reconciliation of Value Indications 178 18. Statement of Assumptions and Limiting Conditions 180 19. Certification 183 Addenda Qualifications Copy of Report License(s) 1. Summary of Salient Data and Conclusions Property: Courtyard by Marriott Tampa North Location: 13575 Cypress Glen Lane Tampa, Florida 33637 Hillsborough County Interest Appraised: Fee Simple Ownership: Boulder Hotel East LLC Highest and Best Use (as improved): Select-Service LAND DESCRIPTION Area: 1.56 acres, or 67,954 square feet Zoning: PD - Planned Development Assessor's Parcel Number(s): A0347760676 FEMA Flood Zone: X IMPROVEMENTS DESCRIPTION Year Opened and Renovated: 1995; Renovated: 2014 Property Type: Select-Service lodging facility Building Area: 47,571 square feet Guestrooms: 86 Number of Stories: Four Food and Beverage Facilities: A restaurant and lounge Meeting Space: 326 square feet Additional Facilities: An outdoor pool, a fitness center, a business center, a market pantry, and a guest laundry room Parking Spaces: 89 (Surface) November-2016 Summary of Salient Data and Conclusions Florida Portfolio of Six Hotels 1 Property: Fairfield Inn & Suites Marriott Orlando Ocoee Location: 10971 West Colonial Drive Ocoee, Florida 34761 Hillsborough County Interest Appraised: Fee Simple Ownership: Boulder Hotel Orlando West LLC Highest and Best Use (as improved): Limited-Service LAND DESCRIPTION Area: 2.39 acres, or 103,969 square feet Zoning: C-3 - Wholesale Commercial District Assessor's Parcel Number(s): 20-22-28-0000-00032 FEMA Flood Zone: Zone X IMPROVEMENTS DESCRIPTION Year Opened and Renovated: 2004; Renovated: 2013 Property Type: Limited-Service lodging facility Building Area: 45,667 square feet Guestrooms: 86 Number of Stories: Three Food and Beverage Facilities: A breakfast dining area Meeting Space: 600 square feet Additional Facilities: An outdoor pool, an outdoor whirlpool, a fitness room, a lobby workstation, a market pantry, a guest laundry room, and an outdoor patio and seating area Parking Spaces: 97 (Surface) November-2016 Summary of Salient Data and Conclusions Florida Portfolio of Six Hotels 2 Property: Holiday Inn Express Fort Myers East The Forum Location: 3427 Forum Boulevard Fort Myers, Florida 33905 Hillsborough County Interest Appraised: Fee Simple Ownership: Boulder Hotel Co. LLC Highest and Best Use (as improved): Fee Simple LAND DESCRIPTION Area: 2.78 acres, or 121,096 square feet Zoning: SDA - Special Development Area Assessor's Parcel Number(s): 27-44-25-P3-00401.0020 FEMA Flood Zone: Zone X IMPROVEMENTS DESCRIPTION Year Opened: 2009 Property Type: Fee Simple lodging facility Building Area: 64,613 square feet Guestrooms: 86 Number of Stories: Six Food and Beverage Facilities: A breakfast dining area Meeting Space: 326 square feet Additional Facilities: An outdoor pool, a fitness room, a business center, a market pantry, a guest laundry room, and vending areas Parking Spaces: 136 (Surface) November-2016 Summary of Salient Data and Conclusions Florida Portfolio of Six Hotels 3 Property: Holiday Inn Express Sarasota East I 75 Location: 5730 Gantt Road Sarasota, Florida 34233 Hillsborough County Interest Appraised: Fee Simple Ownership: Boulder Hotel FLA LLC Highest and Best Use (as improved): Limited-Service LAND DESCRIPTION Area: 4.70 acres, or 204,650 square feet Zoning: CHI - Commercial , Highway Interchange Assessor's Parcel Number(s): 0094141004 FEMA Flood Zone: Zone X IMPROVEMENTS DESCRIPTION Year Opened and Renovated: 2003; Renovated: 2012 Property Type: Limited-Service lodging facility Building Area: 51,172 square feet Guestrooms: 86 Number of Stories: Four Food and Beverage Facilities: A breakfast dining area Meeting Space: 326 square feet Additional Facilities: An outdoor pool, an outdoor whirlpool, a fitness room, a lobby workstation, a market pantry, a guest laundry room, and vending areas Parking Spaces: 108 (Surface) November-2016 Summary of Salient Data and Conclusions Florida Portfolio of Six Hotels 4 Property: Staybridge Suites Tampa East Brandon Location: 3624 North Falkenburg Road Tampa, Florida 33619 Hillsborough County Interest Appraised: Fee Simple Ownership: Boulder Hotel Co II LLC Highest and Best Use (as improved): Limited-Service LAND DESCRIPTION Area: 5.55 acres, or 241,808 square feet Zoning: PD - Planned Development Assessor's Parcel Number(s): A0654570025 FEMA Flood Zone: X IMPROVEMENTS DESCRIPTION Year Opened: 2007 Property Type: Limited-Service lodging facility Building Area: 67,391 square feet Guestrooms: 86 Number of Stories: Four Food and Beverage Facilities: A breakfast dining area Meeting Space: 326 square feet Additional Facilities: An outdoor pool, an outdoor whirlpool, an outdoor pet walk area, an outdoor patio and barbeque area, an outdoor fire pit, a coffee station, indoor guest storage lockers, a fitness room, a library, a guest laundry area, a market pantry, and a business center Parking Spaces: