Investment Summary

• The Homewood Suites is a newly built upscale extened stay hotel . The asset was built in 2022 and opened in March 2022. The hotel consists of 122 units including studios, and apartment suites. The hotel strategic location near Cox South Hospital makes ideal destination for business and transient travel.
• The Franchise Hilton’s Homewood Suites brand is one of the strongest brands in the Hilton family. All Hilton properties are backed by the Hilton Honors reward program, which boasts over 128 million members across 18 brands and more than 6,500 hotels worldwide. The Hilton franchise license provides a worldwide recognition, an excellent computerized reservation system, Hilton Performance Advantage. The program an integrated system of innovative solutions and advanced technologies that work together to drive increased business and keep costs down, without compromising quality. These services provide access to the latest tools, technologies, forward-thinking strategies, and the most influential people in the industry to create an unrivaled competitive advantage.
• Debt & Management The hotel is cuurently managed by the current ownership management team, however it is offered unencumbered by debt and management.
• Property Improvement Plan As is a custom for change of ownership, the franchise may require a change of ownership PIP. however, given that the hotel is new, we do not anticipate any pip upon the sale of the asset.

Property Highlights

• Guest Rooms The Homewood Suites consist of spacious studio, one- and two-bedroom suites, most of the suites contain fully equipped kitchens complete with a microwave, a full-size refrigerator, a dishwasher, a twin burner stove, a toaster, and various utensils.
• Dining The Homewood Suites is located in a vibrant area with plenty of cuisine choices, including chain restaurants, authentic cuisine and fast food restuarants. Free continental breakfast is offered to daily guests daily with a variety of healthy choices.
• Meeting Space The Homewood Suites offers guests meeting space which can accommodate up to 400 guests.
• Amenities Onsite amenities include an indoor pool, a business center, a Fitness Center, and a grilling and cooking area outside in a patio setting.

Sun Market Analysis

• The Springfield submarket contains around 6,700 hotel rooms, and houses 76 of the Missouri South market's 564 hotel properties. While Missouri South as a whole is characterized by very small hotels (relative to the national norm), the average hotel in Springfield contains 88 rooms. That's easily above the 66-room-per-building market average, and not a significant deviation from the national midpoint.
• In the past 12 months, monthly occupancy has averaged 60.7%, noticeably above the market average of 53.7% for the same period. Perhaps unsurprisingly, Springfield weathered the initial impact of COVID-19 slightly better than most. Here, monthly occupancy fell to 22.2%, and annualized occupancy dropped to 42.6% in the initial wake of the pandemic. Since then, its recovery has been a step ahead of the broader Missouri South hospitality market standard.
• Twelve-month RevPAR was recently climbing at en exceptionally strong rate: As of January, twelve-month average RevPAR in the Springfield hotel submarket was up 9.7%, in line with the similarly impressive market-wide average.

Market Analysis

• The Missouri South hotel market contains around 37,000 rooms spread across 560 properties. While there are plenty of U.S. markets with a higher room count, only a dozen or so have as many properties. This dynamic is explained by the smaller assets that typify the market: T
• Economic lodging dominates the market. More than 60% of the rooms here are Economy or Midscale, a ratio found in fewer than ten U.S. markets. In the past 12 months, occupancies in Missouri South averaged 53.7%, which is below the national average of 63.0% for the same period. However, this still marks a significant recovery, as the COVID-19 shock severely impacted this market. Here, annualized occupancies dropped to 37.5% in the initial wake of the pandemic.
• Twelve-month RevPAR in the Missouri South hotel market was up sharply as of January, climbing at a 9.7% year-over-year rate. Nationally, RevPAR increased at an even stronger rate of 29.0% over the same timeframe.