The Pennant Hotel at the Negro Leagues Baseball Museum

"WHY THE PENNANT WINS"

A differentiated Hospitality Asset with Structural Advantages Irreplaceable Cultural Integration: • The only hotel physically integrated into the Negro Leagues Baseball Museum Campus • Direct adjacency to a nationally significant institution with ~175,000-195,000 annual visitors • Creates a non-replicable experiential offering unmatched in any MLB market • Establishes a built-in demand floor independent of traditional hotel cycles

Destination Asset vs. Commodity Hotel

• Designed as a sports, culture, and entertainment destination, not just lodging • Immersive programming, museum integration, and branded F&B concepts drive: • Higher ADR premiums • Increased length of stay • Strong repeat visitation • Positions asset to outperform standard full service and lifestyle hotels.

Premium Demand Channels + Global Distributions

Integrated into Marriott Tribute Portfolio + Bonvoy ecosystem (200M+ members) • Immediate access to: • Corporate travel demand • Group and event bookings • Loyalty-driven repeat customers • Combines independent boutique identity with institutional distribution power

Diversified and Resilient Revenue Model

Revenue is not solely dependent on room nights: • ~$8.2M Rooms (62%) • ~$3.5M Food & Beverage (25%) • Events, parking, amenity fees, and tax redirection Multiple income streams: • Increase margin stability • Reduce reliance on occupancy volatility • Enhance total asset valuation

Event-Driven District Activation

Located within the Nationally Designated Historic 18th & Vine Cultural District Benefits from: • Museum programming • Jazz, cultural and civic events • Youth sports and regional tourism • MLB Games, Big 12, NCAA, NAIA, KC Chiefs, Sporting KC and KC Current events Drives weekend compression, premium pricing, and F&B capture

Institutional-Quality Exit Profile

Aligns with investment criteria for: • Hotel REITs • Private equity hospitality funds • Branded lifestyle portfolio buyers Comparable to: • The Higgins Hotel (WWII Museum, New Orleans) • St. Regis/ MoAD (San Francisco) Positioned as a flagship, non-commodity hospitality asset

Downside Protection & Performance Resilience

Base Case: • Occupancy: 65% • ADR: $241 • Events, parking, amenity fees, and tax redirection Multiple income streams: • Increase margin stability • Reduce reliance on occupancy volatility • Enhance total asset valuation

Healthcare: Stable, Recurring, High-Credibility Room Night Segments

Kansas City’s major healthcare systems — The University of Kansas Health System, Saint Luke’s Health System, Children’s Mercy, and HCA Midwest — are the region’s most reliable and highest-volume generators of hotel room nights. These systems constantly bring in visiting physicians, clinical specialists, fellowship candidates, researchers, vendor partners, and corporate leadership for training, rotations, conferences, and short-term assignments. They also host recurring educational programs, board meetings, and multi-day sessions that require both rooms and meeting space. Because healthcare operates year-round and is less sensitive to economic cycles, these institutions create a steady flow of midweek, higher-rated stays that materially strengthen the Pennant Hotel’s occupancy and revenue profile.

MLB Fan Travel: A Consistent Seasonal Demand Boost

Kansas City attracts a steady stream of MLB fan travel as visiting team supporters come to watch their club play the Royals. These fans typically travel in predictable seasonal waves, concentrated around weekend series and rivalry matchups, and often look for hotels that offer a distinctive, locally authentic experience rather than generic lodging. The Pennant’s positioning on the Negro Leagues Baseball Museum campus gives it a unique competitive advantage for this segment, baseball fans naturally gravitate toward a property connected to the sport’s history and culture. This creates incremental room nights, higher weekend ADR potential, and cross-marketing opportunities with the museum and game-day experiences, further strengthening the hotel’s overall demand profile.

Additional Out-of-Town Business Demand Drivers

Corporate Headquarters & Regional Offices Kansas City has a concentration of major corporations and regional hubs that regularly bring in vendors, partners, executives, and project teams. Examples of categories: Engineering & construction firms Financial services & insurance Transportation & logistics Technology & telecom Agribusiness & food manufacturing These groups generate high-ADR weekday travel and small-team meetings.
Legal, Consulting & Professional Services National firms travel to KC for: Client meetings Litigation Deal teams Government relations Short-term project assignments These travelers are price-insensitive and often loyal to Marriott brands
Sports-Related Travel (Non-MLB) KC is a multi-sport region that draws: MLS (visiting Sporting KC supporters) KC Current (NWSL travel) NCAA tournaments Youth sports tournaments citywide Coaching clinics and officiating programs These groups lift weekend demand and often book blocks.
Convention & Event Overflow While conventions cluster downtown, overflow and cost-conscious groups regularly book outside the core for: Corporate retreats Small association meetings Civic and nonprofit events Alumni groups Trade show attendees The Pennant’s unique identity offers a differentiated alternative to typical convention hotels
Entertainment, Concert, & Festival Travel Travel tied to: T-Mobile Center concerts Big 12 events Crossroads arts & culture programming Major festivals and heritage events at 18th & Vine Creates compression weekends that lift ADR significantly.