OFFERING MEMORANDUM

1. Salt Lake City Airport OFFERING MEMORANDUM kwsouthvalley.com

2. Salt Lake City Airport TABLE OF CONTENTS EXECUTIVE SUMMARY 3 PROPERTY OVERVIEW 7 AREA OVERVIEW 11 LODGING MARKET OVERVIEW 15 FINANCIAL PERFORMANCE 18 EXCLUSIVE INVESTMENT ADVISORS TRENT BRIGHT Commercial Real Estate Advisor 0: 801.676.5700 C: 435.820.6801 trentbright@hotmail.com DANIEL DAVIS Commercial Real Estate Agent 0: 801.676.5700 C: 435.650.4294 daniel@apex-cre.com kwsouthvalley.com

3. Four Points By Sheraton Salt Lake City Airport salt lake city, utah EXECUTIVE SUMMARY 3

4. Four Points By Sheraton Salt Lake City Airport salt lake city, utah 4 Executive Summary

5. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Property & Investment Highlights Brand Overview The Four Points by Sheraton is a brand of hotels targeted towards business travelers and small conventions. It is owned by Starwood Hotels & Resorts, which is subsidiary of Marriott International. The group operates more than 300 hotels worldwide under the Four Points by Sheraton brand. Starwood re-launched Four Points by Sheraton, now targeted as a premier upscale hotel chain for business and leisure travelers. Four Points hotels also have a "Best Brews Program" and a chief beer officer, Scott Kerkmans, who selects Craft beer to serve in their hotels. The 23rd Busiest Airport in the USA in 2018 SLC is the 23rd busiest airport in North America and the 85th busiest in the world. More than 340 flights depart daily to 95 nonstop destinations. SLC is currently undergoing a $3.6 billion redevelopment program, the first phase of which will be completed in 2020, while the second phase of the project will be complete in 2023/2024. The airport plays an important role in supporting business and economic growth in the state. Its operations are a key component in providing affordable access to worldwide destinations for business and individuals. To that end, improved operations of the airport will offer more efficient access to global markets and an opportunity to continue to add value to Utah’s economy by strengthening the ties of local institutions to their global peers (such as universities, hospitals, hotels, the arts, etc.), sustaining existing business, providing access to new business opportunities outside of the state and attracting new business to the state. • Strong Local Market Demand • Business-friendly policy, a strong economy, and quality of life continue to draw outside interest into the Salt Lake market. In 2017, a record $2.2 billion in investment sales was achieved along the Wasatch Front, and development and demand levels across all market segments remain elevated. • Driven by a continued inflow of out-of-state and institutional funds, total investment sales volume in the Salt Lake market reached a record-breaking $2.2 billion in 2017. • Buyers remain active, demonstrating long-term confidence in the local market. • Complete Renovation • The Property Improvement Plan consisted of 1 phase with all work completed prior to conversion to the Four Points by Sheraton Brand. • The hotel has undergone a full renovation of the guestrooms and public space while adding a full-time bar and restaurant, which is expected to substantially increase the ADR, OCC, and Gross Room Revenue in the coming years of operation. • Renovations began in October of 2017 and were completed in August of 2018. Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY) 5 Executive Summary

6. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Four Points By Sheraton Salt Lake City Airport located at 200 North Admiral Byrd Road in Salt Lake City, Utah. Located only 3.6 miles west of the Salt Lake City International Airport (SLC) and conveniently situated on I-80, 8 miles from both downtown Salt Lake City and the Great Salt Lake. The 4-story Four Points By Sheraton features 155 guest rooms including 2 suites, the Glowbal Bite Restaurant with a full bar, a swimming pool, hot tub, sauna, and a state-of-the-art fitness center. The property has outstanding access and visibility, standing unobstructed along exit 113 on Interstate 80, where approximately 219,021 cars pass each day. Salt Lake City is currently underway with a $3.6 billion redevelopment program to help modernize and upgrade the airport to better serve the more than 24 million passengers that use the airport annually. This upgrade will create a more efficient airport that can better handle the growing demand and needs of both passengers and the airlines it serves. Upper-priced hotels are projected to experience an ADR growth rate of 1.5%, along with a 1.7% loss in occupancy, resulting in a 0.3% RevPAR decline. Looking towards 2020, Salt Lake City RevPAR is expected to grow 0.9%. This is better than the rate of growth in 2019. Unlike 2019, prospects for RevPAR growth in the upper priced segment (positive 2.0%) are better than in the lower priced segment (negative 0.4%). Salt Lake City market occupancy levels are expected to range from 68.2% to 69.5% during the 5-year forecast period. This is an exceptional opportunity to acquire a hotel with a unique freeway location that offers tremendous visibility for the property and the brand in an extremely strong airport market. The Four Points By Sheraton Salt Lake City is a solid asset and well-positioned to benefit from a recent rebranding and new management. The Four Points by Sheraton brand is a well established and internationally recognized brand with over 300 hotels world wide under its namesake. Four Points By Sheraton is owned by Starwood Hotels & Resorts, a subsidiary of Marriott International, the largest hotel management company in the world. 6 Executive Summary

7. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Four Points By Sheraton Salt Lake City Airport salt lake city, utah PROPERTY OVERVIEW 7

8. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Four Points By Sheraton Salt Lake City Airport salt lake city, utah Property Overview The hotel was built in 1987 and just recently converted to a Four Points By Sheraton in 2018. The property consists of a 4-story building with a single story grand entry and surface parking. The first floor features the lobby, fitness center, meeting space, and restaurant, while floors one through four are allocated among the 155 guest rooms, assessible by 2 elevators. Restaurant The Glowbal Bite, which features a full bar, is located in the main lobby area. On-site food and beverage outlet, serving breakfast, lunch, and dinner and 24-hour room service with its menu focused on classic fare modernized with global flavors and paired with micro-local Best Brews. Meeting/Board Rooms The recently added 2000 Sq. Ft. ballroom is just down the hall from the lounge and restaurant area. Total meeting room consists of 2 meeting Rooms totaling 2500 sq. ft. and a 500 sq. ft. Board room. A large meeting space and work offices are located on the 2nd floor above the ballroom. Guest Rooms The property’s 155 newly built guest rooms include traditional Double and King bed rooms, Deluxe King rooms, Deluxe King and Two Queen Balcony rooms with private outdoor balcony, and 2 junior suites featuring a large living space and dining area. Standard room are 324 sq. ft. and include complimentary wireless Internet access, a coffee tea maker, mini refrigerator, safe, back lit mirror in the bathroom, and 40-inch televisions. 8

9. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Floor Plans- Finish Level 1 9 Property Overview

10. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Floor Plans- Finish Level 2 & Above 10 Property Overview

11. Four Points By Sheraton Salt Lake City Airport salt lake city, utah AREA OVERVIEW 11

12. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Salt Lake City Area • The Four points By Sheraton is located conveniently off exit 113 on I-80, only 3.6 miles (approximately 5 minutes) west of the Salt Lake City International Airport (SLC) and 8 miles, or 15 minutes from both downtown Salt Lake City and the Great Salt Lake. • Dubbed Silicon Slopes due to a booming tech economy, Salt Lake and adjacent Utah County have seen a commendable growth in job opportunities over the past few years and has an unemployment rate currently at 3%, that is noticeably lower than the national average. The region is currently experiencing an economic boom, as numerous companies like Adobe Systems, 3M Health Information Systems and Microsoft move in. Tourism and hospitality are also breaking records in the greater Salt Lake City area. The 2017-2018 ski season saw $1.3 billion in spending from out of state and local visitors to the region’s ski resorts, the sixth largest season on record. • Due to both a strong economy and high birth rates, Utah ranked #1 in population growth over the last decade with a majority of that growth happening in the Salt Lake City metro area. This growth has fed a rapidly appreciating real estate market, both regionally and downtown. The state’s population grew 14.4% percent over the last ten years. • In order to support the greater Salt Lake City region’s growth well into the future, the state has embarked on an ambitious $3.6 billion renovation plan for the SLC airport. Improved operations of the airport will offer more efficient access to global markets and an opportunity to continue to add value to Utah’s economy by strengthening the ties of local institutions to their global peers (such as universities, hospitals, the arts, etc.), sustaining existing business, providing access to new business opportunities outside of the state and attracting new business to the state. The first phase will be completed in 2020. 12

13. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Salt Lake City 2026-2030 Olympic Bid & Economic Impact • The International Olympic Committee recently made a dual award of upcoming Summer Olympics — giving 2024 to Paris and 2028 to Los Angeles — Utah’s Olympic leaders anticipate a similar approach may be used to pick sites for the 2026 and 2030 Winter Games. There is a major differences between the 2002 Games and the 2030 Games. Since 2002, the Winter Olympics have added sports, which means more athletes and viewers. We estimate the 2030 Olympic Winter Games will be approximately eight percent larger than 2002 in terms of tickets sold and, with more attendees and increases in spending patterns, visitor spending is estimated to be over 40 percent higher (inflation-adjusted dollars). We also expect the number of event days and television viewership to be 19-35 percent larger. Other things being equal, this growth in sports, events and viewers will create a larger economic footprint in Utah than the 2002 Games. Additionally, based on our analysis of Utah’s travel and tourism industry before and after the 2002 Olympic Winter Games, we expect skier visits, national park recreation visits, accommodation taxable sales, airport passengers, and private leisure and hospitality employment to continue a positive growth trajectory after another Olympic Winter Games. A growth trend of 25-60 percent over 14 years, depending on the indicator, would be consistent with past experience. Given these comparisons, we conservatively estimate the 2026/2030 Olympics will create at least as large an economic impact as the 2002 Olympic Winter Games. This impact will occur as new money is brought into the state circulates throughout the economy creating indirect and induced economic effects. Further, Utah’s travel and tourism industry will benefit from infrastructure investment and the increased visibility from hosting the Olympic Games. The five to nine percent skier visit displacement observed in 2002 could be mitigated with advanced marketing and planning. Finally, the intangible benefits of Utah’s continuing ascension as a winter sports capital (home to world class events and elite athletes), business development opportunities, increased visibility and awareness, and other intangibles further strengthens the economic impact of hosting another Olympic Games. • The 2002 Olympic Winter Games enlarged the Utah economy and left a lasting economic legacy. This legacy continues to grow and change as the Utah economy matures in each subsequent year since the Games. • The initial impact includes the injection of outside funds that paid for the operation of the Games, new infrastructure, visitor spending, and other benefits. In the years following the Salt Lake City Olympics, other economic benefits take hold as the infrastructure from that time remains in service to residents and visitors alike, the surplus/endowment from the Games is spent, the travel and tourism industry expands, and Utah’s sports’ industry grows. In a like manner, many intangible benefits foster additional economic growth as Utah develops as a winter sports capital, attracts businesses related to the Olympics, and other intangibles such as increased visibility and awareness. • This policy brief provides Utah decision-makers with a high-level summary of Utah’s living economic Olympic legacy and considers the economic prospects of a potential 2026/2030 Olympic Games. • The economic impacts of the 2002 Olympic Winter Games include the regional economic impact (direct, indirect, and induced effects1 of new money spent in the state), new infrastructure that remains in place after the Games and serves residents and visitors, the surplus leftover from the Games that benefits the local economy, travel and tourism impacts, and intangible impacts, most noticeably, the positioning of Utah as a winter sports capital, business development, and increased visibility and awareness about Utah. Source: Utah’s Olympic Economic Legacy, University of Utah Policy Institute 13 Area Overview

14. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Salt Lake City International Airport (SLC) • SLC is the 23rd busiest airport in North America and the 85th busiest in the world. More than 340 flights depart daily to 95 nonstop destinations. SLC is currently undergoing a $3.6 billion redevelopment program, the first phase of which will be completed in 2020. Fast Facts SLC’s total number of passengers increased year- over-year by more than 5% in 2018, marking the sixth consecutive year of growth at the airport. The strong growth in traffic can be attributed to one of the fastest growing populations in the country with Utah’s population growing over 14% since 2010. Year to date March 2019 passenger activity is up month to month from last year by an average of 4.8% and the future outlook for passenger activity at SLC continues to appear positive. Source: https://www.slcairport.com 14 Area Overview

15. Four Points By Sheraton Salt Lake City Airport salt lake city, utah LODGING MARKET OVERVIEW • Regional Economic Summary • Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of mid-February through March. Conditions in the labor market remained tight, hiring activity remained generally stable, and wage growth was moderate. Price inflation was unchanged on balance. Sales of retail goods increased modestly, while activity in consumer and business services increased moderately. Conditions in the manufacturing sector improved modestly, and conditions in agriculture deteriorated somewhat. Contacts reported that residential real estate market activity expanded moderately and commercial activity was robust. Lending activity was mixed. • Activity in the consumer and business services sectors increased moderately on balance. Demand for passenger and cargo air transportation expanded solidly. Activity in the quick service restaurant segment was slightly stronger on a year-over-year basis. A contact in the hospitality sector in Southern California noted that hotel bookings declined noticeably, driven by fewer reservations at more affordable properties. Hotel Market Summary RevPAR increase of 0.3%. This is the result of an estimated decline in occupancy of 1.5% and a 1.8% gain in average daily room rates (ADR). The 0.3% advance in Salt Lake City RevPAR is less than the national projection of a 2.0% increase. Leading the way in 2019 RevPAR change is the lower-priced segment of Salt Lake City. The properties in this category are forecast to attain a 3.0% gain in ADR, but suffer a 1.2% decrease in occupancy, resulting in a 1.7% RevPAR increase. Upper-priced hotels are projected to experience an ADR growth rate of 1.5%, along with a 1.7% loss in occupancy, resulting in a 0.3% RevPAR decline. Looking towards 2020, Salt Lake City RevPAR is expected to grow 0.9%. This is better than the rate of growth in 2019. Unlike 2019, prospects for RevPAR growth in the upperpriced segment (positive 2.0%) are better than in the lowerpriced segment (negative 0.4%). Salt Lake City market occupancy levels are expected to range from 68.2% to 69.5% during the 5-year forecast period. 15 Area Overview

16. Four Points By Sheraton Salt Lake City Airport salt lake city, utah The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2014 to 2023. Used as a relative benchmark, each market segment is plotted against a common index value of 2014 = 100. This method provides clear insight of how each market segment performed and is expected to perform in relation to others in the specified period. The charts on the right compare near-term historical compound annual growth rates (CAGR) to the CAGRs for the forecast period. 16 Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY)

17. Four Points By Sheraton Salt Lake City Airport salt lake city, utah 17 Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY)

18. Four Points By Sheraton Salt Lake City Airport salt lake city, utah FINANCIAL PERFORMANCE 18

19. Four Points By Sheraton Salt Lake City Airport salt lake city, utah 2019 Jan - Mar P&L and Proforma Assumptions Confidentiality & Disclaimer All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW South Valley Keller Williams in compliance with all applicable fair housing and equal opportunity laws. Proformas were constructed using most recent STR Report, Financial Statements, and CBRE Hotels Americas Research. 19 Financial Performance

20. Four Points By Sheraton Salt Lake City Airport salt lake city, utah Proforma Assumption 20 Financial Performance

21. Four Points By Sheraton Salt Lake City Airport salt lake city, utah INVESTMENT CONTACTS TRENT BRIGHT Commercial Real Estate Advisor 0: 801.676.5700 C: 435.820.6801 trentbright@hotmail.com DANIEL DAVIS Commercial Real Estate Agent 0: 435.650.4294 daniel@apex-cre.com kwsouthvalley.com