DAYS INN MIDTOWN ABQ ALBUQUERQUE, NEW MEXICO...PREPARED BY HUNTER HOTEL ADVISORS / PREPARED BY...

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DAYS INN MIDTOWN ABQALBUQUERQUE, NEW MEXICO

/ PREPARED BY HUNTER HOTEL ADVISORS /


OFFERING MEMORANDUM

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NATIONAL REACH. LOCAL KNOWLEDGE.

Danny GivertzSenior Vice [email protected]

Brian EmbreeSenior [email protected]

Daniel RileySenior [email protected]

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TABLE OF CONTENTS

Executive Summary .........................................................................................................3

Property Overview ...........................................................................................................6

Financials ........................................................................................................................8

Market Summary ............................................................................................................13

About Hunter .................................................................................................................27

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EXECUTIVESUMMARYExcellent LocationThe property is ideally located near numerous business/industrial parks and just 5 minutes from the University of Mexico and 12 minutes from the Albuquerque International Sunport. The property is also within several minutes to downtown Albuquerque and several prominent local businesses. The hotel’s location is perfect for all visitors, providing numerous business and leisure options.

Opportunity for Growth While the Days Inn has struggled in its competitive set, there is opportunity to reposition the asset through property improvements and/or rebranding. The property currently ranks number eight out of eight in RevPAR against its competitive set with an index penetration of 54.4%; this could change significantly with a focused managerial effort and improvements to the property.

Desirable and Growing MarketThe Albuquerque MSA is a highly coveted market for hotel investment groups because of the diverse demand and strong operating metrics. Additionally, the Albuquerque market’s rooms supply and rooms demand has been growing moderately over the past few years. The market attracts millions of visitors each year and is in position to become one of the best performing hotel markets in the country.

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INVESTMENT CONSIDERATIONSUnencumbered by Management The Days Inn Albuquerque is being offered unencumbered of current management.

Unencumbered by DebtThe Days Inn Albuquerque is being offered unencumbered of debt.

Franchise & Property Improvement Plan (PIP)On change of ownership, it is anticipated that Wyndham will require the new owner to complete certain improvements, upgrades and modifications to the hotel as a condition of the issuance of new Days Inn franchise. The Buyer will be responsible for all repairs and renovations needed to satisfy brand requirements.

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LOCATIONOVERVIEWLocation Overview & Demand GeneratorsThe Days Inn Suites is located off I-25 and I-40 in a densely developed commercial corridor and a short distance from the University of New Mexico and Albuquerque International Sunport. Featuring a central location near several industrial parks companies include DG Motors, Bobcat of Albuquerque, Intel, Honeywell, General Mills, and Thomas and Betts. Additional attractions and demand generators include the Maxwell Museum of Anthropology, University Art Museum, Central New Mexico Community College, ABQ BioPark Zoo, Downtown Albuquerque and Albuquerque Convention Center.

Albuquerque is the fourth most popular city in the Southwest after Phoenix. Over the years it has grown into a top destination for young people and companies focused on renewable energy and technology. The Albuquerque MSA has grown to over 900,000 people with a MSA GDP of $38.5 billion, making it the 60th largest MSA in the United States. Albuquerque has emerged as a center for education, technology, and business. Known primarily as a growing technology hub and home to the Kirtland Air Force Base. Along with the highly educated workforce, the University of New Mexico provides thousands of new graduates each year, many from the engineering and computer science programs. These graduates help maintain a consistent source of employees that drive Albuquerque’s technology and defense industry sector

Demand Generator/Local Attraction Miles From Asset

US Investment Corporation 0.2

Sunset Memorial Park 1.2

North Golf Course 1.9

Tennis Club Albuquerque 1.9

UNW Hospital 2.1

The University of New Mexico 2.1

UNM School of Law 2.2

VSA North Fourth Art Center 2.7

Presbyterian Hospital 2.7

Albuquerque Convention Center 2.7

Milne Stadium 2.9

Downtown Albuquerque 3.1

Turquoise Museum 3.2

Wheels Museum 3.7

New Mexico Museum of Natural History 3.9

ABQ BioPark Zoo 4.1

National Hispanic Cultural Center 4.3

Albuquerque Country Club 4.3

ABQ BioPark Aquarium 4.4

Puerto Del Sol Golf Course 4.5

Tingley Beach 4.9

Raymond G. Murphy VA Medical Center 6.5

Albuquerque International Sunport 6.6

Valle de Oro National Wildlife Refuge 10.8

Kirtland Air Force Base 12.7Albuquerque, NM

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PROPERTYOVERVIEWGuest Rooms and AmenitiesGuest rooms in the Days Inn are furnished with comfortable amenities and modern décor. Guest rooms include premier linens, work desk, complimentary wireless Internet Access, and flat-screen television with premium channels. Additionally, rooms are equipped with a mini-refrigerator, microwave, and coffee/tea maker, so guests can prepare food and beverages from the comfort of their own rooms. Other amenities include a business center, fitness center, and outdoor pool.

Food and BeverageThe Days Inn is conveniently located only a few minutes from Downtown Albuquerque where there are many local restaurants that offer a wide variety of cuisines that are within close proximity of the hotel and deliver to hotel guests.

Property Features 2120 Menaul Blvd NE

Albuquerque, NM 87107

Opened in 1974

2-story, exterior corridor

199 guestrooms

2 meeting rooms

Fitness center

Business Center

Outdoor pool

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Area Map

MILNE STADIUM

THE UNIVERSITY OF NEW MEXICO

ALBUQUERQUE INTERNATIONAL SUNPORT

THE ALBUQUERQUE DOWNS RACETRACK & CASINO

ALBUQUERQUE CONVENTION CENTER

NEW MEXICO MUSEUM OF NATURAL HISTORY

KIRTLAND AIR FORCE BASE

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Year End 2016 Year End 2017 Year End 2018 Pro Forma Year 1 Pro Forma Year 2 Pro Forma Year 3 Pro Forma Year 4 Pro Forma Year 5

Occupancy 33.5% 30.1% 41.9% 47.4% 49.8% 50.3% 51.3% 52.3%

ADR $40.22 $40.35 $38.75 $42.56 $43.84 $44.71 $45.61 $46.52

RevPAR $13.48 $12.15 $16.23 $20.17 $21.83 $22.49 $23.39 $24.34

TRevPAR $13.56 $12.57 $17.33 $20.46 $22.18 $22.85 $23.77 $24.65

Room Revenue Per Room $4,964 $4,587 $6,207 $7,363 $7,967 $8,207 $8,539 $8,884

Room Revenue $987,782 $912,715 $1,235,118 $1,465,332 $1,585,361 $1,633,238 $1,699,221 $1,767,870

Total Revenue $987,782 $912,715 $1,259,118 $1,490,052 $1,610,822 $1,659,464 $1,726,233 $1,795,692

NOI* $276,551 $234,440 $357,640 $503,239 $546,914 $566,668 $587,683 $614,805

NOI % 28.0% 25.7% 28.4% 33.8% 34.0% 34.1% 34.0% 34.2%

*AFTER 4% FF&E Reserve

FINANCIAL HIGHLIGHTS

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HISTORICAL STATEMENT199 Guestrooms & Suites Year End 2016 Year End 2017 Year End 2018

Occupancy 33.5% 30.1% 41.9%

Average Room Rate $40.22 $40.35 $38.75

RevPAR $13.48 $12.15 $16.23

TRevPAR** $13.56 $12.57 $17.33

Room Revenue Per Room $4,964 $4,587 $6,207

Available Rooms 72,834 72,635 72,635

Occupied Rooms 24,399 21,863 30,434

Department Revenue

Room Revenue $987,782 100.0% $912,715 100.0% $1,235,118 98.1%

Other Income $0 0.0% $0 0.0% $24,000 1.9%

Total Revenue $987,782 100.0% $912,715 100.0% $1,259,118 100.0%

Departmental Expenses

Room Expense $244,480 24.8% $239,315 26.2% $320,812 26.0%

Other Expense $0 0.0% $0 0.0% $0 0.0%

Total Departmental Expenses $244,480 24.8% $239,315 26.2% $320,812 25.5%

Gross Operating Income $743,303 75.2% $673,399 73.8% $938,307 74.5%

Undistributed Operating Expenses

Administrative & General $92,127 9.3% $85,613 9.4% $105,794 8.4%

Sales and Marketing $13,932 1.4% $12,768 1.4% $15,923 1.3%

Utilities $114,232 11.6% $104,685 11.5% $139,760 11.1%

Repairs and Maintenance $42,966 4.3% $39,376 4.3% $52,307 4.2%

Franchise Fees $98,178 9.9% $89,973 9.9% $138,555 11.0%

Total Undistributed Operating Expenses $361,435 36.6% $332,414 36.4% $452,339 35.9%

Gross Operating Profit $381,868 38.7% $340,985 37.4% $485,968 38.6%

Fixed Expenses

FF&E Reserve (4.0%) $39,511 4.0% $36,509 4.0% $50,365 4.0%

Insurance $13,086 1.3% $15,084 1.7% $23,016 1.8%

Property Taxes $52,720 5.3% $54,952 6.0% $54,947 4.4%

Total Fixed Expenses $105,317 10.7% $106,545 11.7% $128,328 10.2%

Net Operating Income* $276,551 28.0% $234,440 25.7% $357,640 28.4%*NOI includes a 4% deduction for FF&E Reserve**TRevPAR is Total Revenue divided by Available Rooms

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/ PREPARED BY HUNTER HOTEL ADVISORS / 10/ PREPARED BY HUNTER HOTEL ADVISORS /

PRO FORMA STATEMENT199 Guestrooms & Suites Pro Forma

Year 1Pro Forma

Year 2Pro Forma

Year 3Pro Forma

Year 4Pro Forma

Year 5Occupancy 47.4% 49.8% 50.3% 51.3% 52.3%

Average Room Rate $42.56 $43.84 $44.71 $45.61 $46.52

RevPAR $20.17 $21.83 $22.49 $23.39 $24.34

TRevPAR** $20.46 $22.18 $22.85 $23.77 $24.65

Room Revenue Per Room $7,363 $7,967 $8,207 $8,539 $8,884

Available Rooms 72,834 72,635 72,635 72,635 72,834

Occupied Rooms 34,523 36,164 36,526 37,256 38,106

Department Revenue

Room Revenue $1,465,332 98.3% $1,585,361 98.4% $1,633,238 98.4% $1,699,221 98.4% $1,767,870 98.5%

Other Income $24,720 1.7% $25,462 1.6% $26,225 1.6% $27,012 1.6% $27,823 1.5%

Total Revenue $1,490,052 100.0% $1,610,822 100.0% $1,659,464 100.0% $1,726,233 100.0% $1,795,692 100.0%

Departmental Expenses

Room Expense $329,700 22.5% $353,535 22.3% $359,312 22.0% $373,829 22.0% $385,396 21.8%

Other Expense $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0%

Total Departmental Expenses $329,700 22.1% $353,535 21.9% $359,312 21.7% $373,829 21.7% $385,396 21.5%

Gross Operating Income $1,160,352 77.9% $1,257,287 78.1% $1,300,151 78.3% $1,352,405 78.3% $1,410,297 78.5%

Undistributed Operating Expenses

Administrative & General $126,654 8.5% $135,309 8.4% $139,395 8.4% $145,004 8.4% $149,042 8.3%

Sales and Marketing $44,702 3.0% $48,325 3.0% $49,784 3.0% $51,787 3.0% $53,871 3.0%

Utilities $149,005 10.0% $161,082 10.0% $165,946 10.0% $172,623 10.0% $179,569 10.0%

Repairs and Maintenance $52,152 3.5% $57,990 3.6% $61,400 3.7% $65,597 3.8% $70,032 3.9%

Franchise Fees $134,105 9.0% $144,974 9.0% $149,352 9.0% $155,361 9.0% $161,612 9.0%

Total Undistributed Operating Expenses $506,618 34.0% $547,680 34.0% $565,877 34.1% $590,372 34.2% $614,127 34.2%

Gross Operating Profit $653,735 43.9% $709,607 44.1% $734,274 44.2% $762,033 44.1% $796,170 44.3%

Fixed Expenses

FF&E Reserve (4.0%) $59,602 4.0% $64,433 4.0% $66,379 4.0% $69,049 4.0% $71,828 4.0%

Insurance $23,841 1.6% $25,773 1.6% $26,551 1.6% $27,620 1.6% $28,731 1.6%

Property Taxes $67,052 4.5% $72,487 4.5% $74,676 4.5% $77,681 4.5% $80,806 4.5%

Total Fixed Expenses $150,495 10.1% $162,693 10.1% $167,606 10.1% $174,350 10.1% $181,365 10.1%

Net Operating Income* $503,239 33.8% $546,914 34.0% $566,668 34.1% $587,683 34.0% $614,805 34.2%*NOI includes a 4% deduction for FF&E Reserve**TRevPAR is Total Revenue divided by Available Rooms

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COMPETITIVE ANALYSIS

OccupancyDays Inn

Midtown ABQCompetitive Set

Dec-17 41.3% 57.1%

Jan-18 34.5% 56.2%

Feb-18 38.5% 59.4%

Mar-18 51.4% 72.7%

Apr-18 46.1% 67.1%

May-18 43.6% 71.9%

Jun-18 49.2% 75.7%

Jul-18 52.0% 67.3%

Aug-18 46.9% 63.1%

Sep-18 33.7% 63.9%

Oct-18 49.0% 66.6%

Nov-18 31.5% 52.8%

Dec-18 33.7% 49.4%

Jan-19 26.6% 47.7%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18Jul-1

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Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Monthly Occupancy

Days Inn Albuquerque Midtown Competitive Set

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

$60.00

$65.00

$70.00

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18Jul-1

8

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Monthly ADR


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18Jul-1

8

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Monthly RevPAR


ADRDays Inn


Dec-17 $34.82 $40.32

Jan-18 $33.72 $39.77

Feb-18 $34.71 $40.11

Mar-18 $36.87 $43.45

Apr-18 $36.84 $43.48

May-18 $34.85 $43.46

Jun-18 $37.38 $44.29

Jul-18 $36.93 $50.17

Aug-18 $38.08 $47.95

Sep-18 $39.22 $49.87

Oct-18 $58.57 $67.10

Nov-18 $35.38 $45.51

Dec-18 $34.93 $45.46

Jan-19 $36.02 $44.68

RevPARDays Inn


Dec-17 $14.38 $23.02

Jan-18 $11.63 $22.35

Feb-18 $13.36 $23.83

Mar-18 $18.95 $31.59

Apr-18 $16.98 $29.18

May-18 $15.19 $31.25

Jun-18 $18.39 $33.53

Jul-18 $19.20 $33.76

Aug-18 $17.86 $30.26

Sep-18 $13.22 $31.87

Oct-18 $28.70 $44.69

Nov-18 $11.14 $24.03

Dec-18 $11.77 $22.46

Jan-19 $9.58 $21.31

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Competitive Set Map

SUBURBAN EXTENDED STAY

QUALITY INN & SUITES ALBUQUERQUE DOWNTOWN

MOTEL 6 ALBUQUERQUE CARLISLE

RAMADA HOTEL MIDTOWN

INTOWN SUITES EXTENDED STAY ALBUQUERQUE

RED ROOF INN ALBUQUERQUE - MIDTOWN

MOTEL 6 ALBUQUERQUE MIDTOWN

Property Name City Rooms Open Date

Days Inn Albuquerque Midtown ABQ Albuquerque, NM 199 1974

Ramada Hotel Midtown Albuquerque, NM 336 1968

Motel 6 Albuquerque Carlisle Albuquerque, NM 105

Motel 6 Albuquerque Midtown Albuquerque, NM 117 1987

Red Roof Inn Albuquerque Albuquerque, NM 134 1985

Quality Inn & Suites Albuquerque Downtown Albuquerque, NM 136 1987

Suburban Extended Stay Hotel Albuquerque Albuquerque, NM 136 1997

InTown Suites Albuquerque Albuquerque, NM 136 1999

MARKETSUMMARYAlbuquerque, NMAlbuquerque is known locally as “Duke City” and abbreviated as ABQ. The city is the most populous city in the state of New Mexico and the 32nd most populous city in the United States. The Albuquerque MSA includes Rio Rancho, Bernalillo, Placitas, Corrales, Los Lunas, Belen, and Bosque Farms, and forms part of the larger Albuquerque–Santa Fe–Las Vegas combined statistical area. The city lies in the center of the New Mexico Technology Corridor where there is a high concentration of private tech and government institutions along the Rio Grande. Albuquerque is home to the Kirtland Air Force Base, Sandia National Laboratories, and Lovelace Respiratory Research Institute. The city also has a number of shops, museums, boutiques, and restaurants throughout Downtown, Old Town and Midtown. The metro area is also home to the Kirtland Air Force Base which is the largest installation in Air Force Global Strike Command and the 6th largest in the Airforce.

Albuquerque offers a competitive business environment at lower costs and has been ranked in the top 10 American Cities of the Future. From 2000 to 2010 the population grew over 21%; the current 2017 Census population estimate for the Albuquerque MSA is over 900,000 and is expected to grow even more over the next few years.

Albuquerque is the county seat of Bernalillo County and second largest major city of the Albuquerque–Santa Fe–Las Vegas combined statistical area, MSA with a population of 1.17 million. In 2018, Albuquerque had a Gross Domestic Product of $93.5 billion. It is the 60th largest metropolitan area in the United States. Albuquerque is considered to be a major center for the high tech industry in the southwest. Thousands of graduates each year, from engineering to computer science programs at the University of New Mexico provide a steady source of employees that help to fuel Albuquerque’s technology and defense industry sectors.

Albuquerque, NM

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EconomyWith economic incentives that foster the growth of a renewable energy cluster and employment centers that seek to attract companies engaged in alternative energy product manufacturing, there is a rapidly developing cluster of solar technology companies in the Albuquerque metro area. Thanks to the abundance of alternative energy, Albuquerque enjoys being ranked 6th in the nation for lowest average energy bill, 9th in renewable energy, and 2nd in the west for sustainability. Microsystems and nanotechnology is a growing and advancing industry that plays an integral role in everything from transportation and telecommunications to medicine and weapons technology. New Mexico is consistently ranked as one of the top five states for nanotechnology by Small Times magazine and ITIF State New Economy Index Ranks NM as 9th for High-Tech Jobs. In terms of the information technology sector, Albuquerque has been ranked as a top 20 city for women in tech, 6th best digital city, and 10th best for infrastructure. The aerospace segment includes more than 100 companies with roots in the earliest operations of Kirtland Air Force Base and the nation’s space program. Albuquerque has both a decades-old aerospace industry and a growing new aviation cluster, supported by a wide array of tax incentives for manufacturing and job-training programs. The city was awarded the 7th best engineering capital in the country by Forbes. The film industry is a large part of the local economy as recent film projects have elevated the city’s visibility as a filming destination and prompted an interest in travel. Its tax incentives and 90-minute flight time from Los Angeles entice filmmakers to the area. Some have even liked the city so much that they have established residences in the area, prompting a ranking as the 5th best place to live and work as a filmmaker. In 2017 the film industry contributed over $500 million in revenue for the state.

New Mexico continues to gain favorability as one of the nation’s top travel destinations according to the following rankings:

• One of the healthiest cities in America• Best cities to retire • Albuquerque area ranked as 3rd most diverse place to live • One of the best places to raise a family • 5th best public school in Albuquerque metro area

MARKET SUMMARY

Sandia Mountains

Ranked as one of the best cities for outdoor activities in America

Ranked 10th best place for young professionals

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Hospitality and Tourism The hotel business in city has been gaining a lot of traction as more tourist have visited the Albuquerque metro area and the construction of new hotels. Over the course of 2018, 500 new rooms were added to the economy. Last year, the city attracted 6.2 million visitors with a $2 billion annual economic impact. The city’s hospitality industry is supported by over 43,000 employees; the largest hospitality employee base in the nation. Several native tribes in New Mexico have begun to invest in hotels in New Mexico as more tourists become interested in tribal attractions, casinos, resorts, and museums.

Workforce The city of Albuquerque has one of the most educated workforces in the country as 32.6% of the population over 25 years old has at least an associate degree; New Mexico has one of the highest concentrations of Ph.D.s per capita in nation. Most of the resident s range from 20-34 and employers have a pipeline of over 60,000 students to hire from. New Mexico’s labor force has been popularly noted as the first state in the nation for workforce productivity. Albuquerque has been ranked as number one for manufacturing productivity. Just under 60% of the population is under 45 years old.

New Mexico has built a reputation for ethnic and cultural diversity, which is beneficial to companies that are looking to build a diverse employee base. 43% of the population is in the Albuquerque area and 22.9% of the population is bilingual most of which speak English and Spanish.

MARKET SUMMARY

Kirtland Air Force Base

Organization Employees Description

Albuquerque Public Schools 14,810 Public School District

Kirtland Air Force Base* 10,125 Air Force Materiel Command

Sandia National Labs 9,852 Science-Based Technologies that Support National Security

Presbyterian 7,310 Hospital/Medical Services

UNM Hospital 6,021 Hospital/Medical Services

City of Albuquerque 5,500 Government

State of New Mexico 4,950 Government

University of New Mexico 4,210 Educational Institution

Lovelace Health Systems 4,000 Hospital/Medical Services

Bernalillo County 2,425 Government

Rio Rancho Public Schools 2,000 Educational Institution

Sandia Resort & Casino 2,000 Resort & Casino

PNM Electric Services 1,935 Utilities Provider

Central New Mexico Community College 1,840 Educational Institution

T-Mobile 1,700 Customer Service Center

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MARKET SUMMARY

Downtown Albuquerque, NM

Key Industries The key industries in Albuquerque have a robust workforce both in size and productivity. In 2017, Albuquerque had an estimated workforce of almost 430,000 people and accounts for 45% of the state’s employment. The unemployment rate for February 2019 was 4.8%. Among the largest industries in the area include government, leisure and hospitality, education and health sciences, business and professional services.

The Albuquerque region is home to many innovative programs and facilities that foster the growth of microsystems/nanotech cluster. Central New Mexico Community College was the first community college in the nation to offer a full curriculum on the subject of Micro Electromechanical Systems (MEMS) and is home to Southwest Center for Microsystems Education. Other renowned resources include the Microsystems Engineering, Science and Applications (MESA) complex, a $453 million state-of-the-art microsystems research and development facility operated by Sandia National Labs and the Center for Integrated Nanotechnologies (CINT), an $85 million Department of Energy Nanoscale Science Research Center (NSRC). Manufacturing and service-related companies in the Albuquerque metro area have the opportunity to tap into one of the world’s greatest concentrations of technology assets. The New Mexico Technology Corridor, stretching from Los Alamos National Laboratory northwest of Santa Fe to New Mexico State University just north of the Mexican border, contains an array of technology-based organizations involved in the research and development of alternative energy products. Alternative energy firms include: Zomeworks, a leading developer and manufacturer of passive energy products since 1969; EMCORE, which produces solar cells and fiber-optic products; UniRac, which makes mounting systems for solar panels; and MesoFuel, which makes devices that provide hydrogen for hydrogen fuel cells. IT is a sizeable part of the city’s tech industry with a number of large operations, such as Intel, Honeywell, Raytheon, and Northrop Grumman having sizable populations of IT workers within their local plants.

Albuquerque had an estimated workforce of almost 430,000 people and accounts for 45% of the state’s employment.

Kirtland Air Force Base

MARKETSUMMARYMilitary Bases

Kirtland Air Force Base The Kirtland Air Force Base hosts the 377th Air Base Wing which reports to the Air Force Global Strike Command. The base currently employs approximately 20,000 active duty, civilians, and Guard and Reserve personnel. The base is situated on 51,558 acres and has buildings dedicated to the four following areas: research, development and testing; readiness and training; ammunitions maintenance; and support to base operations for more than 100 Associate Units. The 377th Air Force wing is responsible for executing nuclear readiness and support operations for American air power. The Air Force base also functions as a testing center for non-conventional weapons, space, and missile technology as well as laser warfare. The base is also supported by the following organizations: the Department of Energy, Air Force Nuclear Weapons Center, Air Force Research Laboratory, the Space and Missile Systems Center among many others. The Kirtland Air Force Base averages a $7.6 billion economic impact on the Albuquerque area and supports approximately 14,000 retired military retirees who live in central and northern New Mexico.

In 2018, a development was announced to build a 70-acre plus mixed use office park on the Kirtland Air Force Base. The project which has been named Max Q and is designed to have over 900,000 sq. ft. of office space in the Gibson Corridor. The office park will have office and retail tenants.

Central New Mexico Community College (CNM) Workforce Training Center (WTC) Albuquerque is home to the CNM Workforce Training Center which offers high quality training, professional development and continuing education. The training center specializes in offering workshops and education through key industry partners in New Mexico’s workforce. A number of companies have partnered with CNM Workforce Training Center to develop specific training programs for employees.

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EnergyAlbuquerque electricity is provided to Public Service Company of New Mexico (PNM). PNW serves 100 counties in New Mexico; the state also has an abundant supply of electricity from a combination of coal, nuclear, natural gas, and renewable sources. New Mexico is a great place for solar energy as the state enjoys 310 days of annual sunshine and is not disturbed by earthquakes or tornadoes. Additionally, Albuquerque is home to the New Mexico Gas Company (NMGCO) and it is the 4th largest gas producer in the United States and has the 2nd highest reserves in the United States.

Aerospace and AviationAlbuquerque is one of the nation’s leaders in aerospace and aviation technology. The industry is home to over 100 companies with some joint operation with the Kirtland Air Force Base. Among some of the companies in the area are Lockheed Martin Group, Honeywell Aerospace, Boeing, Goodrich Corp, and Northrop Grumman Information technology. The Lockheed Martin manages the Sandia National Laboratories for the Department of Energy which work in conjunction with the Kirtland AFB. New Mexico Community College has various training programs offering associates degrees in aerospace technology. The University of New Mexico Aerospace Institute is a statewide clearance zone for aerospace technology development, education and economic development.

MARKET SUMMARY

Lockheed Martin Training Tools

Microsystems and NanotechnologyThe microsystems industry has been growing and captured the attention of the Milken Institute and Small Times Magazine. Dozens of local companies rely on the innovations of the area’s micro/ nanotechnology. Some of the companies in the industry are Sandia National Laboratories, Los Almos National Laboratory, UNM’s Center for High Technology Materials and the Micro and Nanotechnology Commercialization Education Foundation. UNM offers a graduate program in microsystems and nanoscience that focus on research and commercialization.

BioscienceBioscience in Albuquerque produces along the healthcare spectrum from surgical supplies to glucose monitors. Among some of the major companies in the area are Johnson and Johnson and Oso Pharmaceuticals Manufacturing. Most of the city’s biotech companies are small but focus on a variety of areas including manufacture instruments, bioinformatics, and diagnostics. There are also numerous bioscience assets in the city including Sandia National Laboratories, UNM Health Sciences Center and the Lovelace Respiratory Institute.

Semiconductors and ElectronicsCentral New Mexico has a very robust electronics industry. There is a cluster of 50 companies which include Intel and many start-ups labs at UNM and across the city. Activities include computer chips, silicon wafers, and electronics fabrication and assembly. Intel came to Albuquerque in 1980 with just 50 employees and has grown to a prominent employer in the area with 5,000 employees and the largest operation of its kind in the world. Some other companies in the area include: SUMCO PhoenixCorp, Sennheiser Electronics GmbH, and Innovasic Semiconductor.

Intel Corporation

MARKETSUMMARY

ABQ Studios

Media Industries Since the onset of the early 2000s, the film industry has quickly expanded from occasional productions to a fast growing film industry. There are production facilities, game developers, and applications of media technology present in the Albuquerque area. Since the launch of the New Mexico Media Industries Strategy Project in 2004 the program has helped New Mexico grow into a center of excellence for media and film. UNM has since developed an Arts Lab and Center for High Performance Computing to nurture the talents of students in animation, film technology and black box studio.

In 2018, Netflix announced that it would be building a production hub in Albuquerque. The project is expected to bring $1 billion to the city

over the next 10 years and bring 1,000 production jobs to the city per year. Netflix will be purchasing the 48,000 sq. ft. ABQ Studios to be its base of operations. This deal marks the company’s purchase of a production complex. New Mexico will provide up to $10 million in economic development funding for the purchase of the facility. The studio has been the production site of Marvel’s Avengers, The Lone Ranger and Sicario.

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MARKET SUMMARYEducation

The University of New Mexico (UNM)The University of New Mexico was established in 1889 shortly after the completion of the railroad system in the Southwest. UNM has transformed into the state’s largest university covering over 600 acres along Route 66 and home to over 25,000 students. The school is a public research university offering bachelor’s master’s doctoral and professional degree programs; UNM is categorized as a R1 research institution which is the highest research activity a school can receive. The school offers a variety of competitive sports teams that compete in the D1 NCAA program under the mascot the Lobos. The school has won national championships in skiing and cross country. Midtown has continued to develop around the university with many hotels and restaurants nearby.

Central New Mexico Community College (CNM)CNM also formerly known as Technical Vocational Institute is a community college based in Albuquerque and was founded in 1964. The school offers Associates degrees, professional and training programs. CNM has the largest undergraduate student enrollment in the state just with 22,000 students across multiple campuses throughout the Albuquerque metro area.

University of New Mexico

The University of New Mexico is the state’s

largest university

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Albuquerque, New Mexico Attractions and Demand Generators

Albuquerque Convention CenterLocated between the Rio Grande River and the Sandia Mountains, the center has over 270,000 sq. ft. of meeting and exhibit space and over 31 meeting rooms of various capacities. There are over 900 rooms within walking distance to the center and over 17,000 rooms in Albuquerque. The convention center features a 2,350 seat auditorium. The meeting rooms can be combined into two ballrooms with capacities at over 1,000 and 750 people respectively. The convention center has hosted events from the hot air balloon festival and sporting events among many more.

Hatch Chile FestivalThe chile festival takes place in August and hosted by Hatch, NM. Hatch is a small town in a fertile agricultural valley of the Rio Grande. The crop of chiles is shipped all around the world including many US grocery stores. Festivalgoers are able to sample dishes with the Hatch chiles as well purchase chiles to take home.

Santa Fe OperaThe Santa Fe Opera is an outdoor amphitheater that hosts several opera shows over the course of the summer. The theatre seats over 2,000 people and has over 100 standing room places. The opera house was established in 1956 and since then has grown to show over 2,000 performances of 170 operas by 85 composers, 15 world premieres and 45 United States premiers. The opera attracts thousands of patrons every year with an approximate $200 million economic impact on the New Mexico economy.

ABQ BioPark ZooThe ABQ BioPark Zoo is located next to the Rio Grande and covers over 64 acres. The zoo has been offering intimate experiences with exotic and native animals since its opening in 1927. The zoo is an extension of other ABQ BioPark places including: the aquarium, botanic garden, and Tingley Beach. The zoo features exhibits from Africa, Australia, Amphibians, Mexico as well as Birds of America.

Albuquerque Museum of Art and History The museum is located in Old Town off Route 66 and features over 400 years of regional history. Additionally, the museum features Southwest art with both permanent and temporary exhibitions. There are over 10,000 works of art, 27,000 historical objects, and 130,000 pictures at the Albuquerque Museum.

MARKET SUMMARY

Hatch Chile Festival

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/ PREPARED BY HUNTER HOTEL ADVISORS /Albuquerque International Balloon Fiesta

Albuquerque International Balloon FiestaThe balloon festival is a spectacular display of

colorful hot air balloons and has been popularly recognized as “the most photographed event in the world”. The event takes place every October

and is the largest ballooning event on earth and the largest annual international event in

the United States. The event hosts 550 hot air balloons, 650 pilots from around the world, and

nearly 900,000 visitors.

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MARKETSUMMARY

Sandia Mountains

Rio Grande Nature Center State Park Located on the central Rio Grande flyway, Rio Grande Nature Center State Park offers excellent bird watching throughout the year. Visitors can observe about 250 species of birds including roadrunners and wood ducks. A trail system along the river, demonstration gardens and indoor and outdoor wildlife viewing areas add to this valuable public resource. The Bosque, or riverside forest, features two miles of nature trails which wind through tall cottonwoods and past willow thickets and open sand flats alongside the Rio Grande.

Sandia and Manzano Mountains Just east of Albuquerque are the most visited mountains in New Mexico. Millions of people journey into the Sandia Mountains each year. More than half these visitors ride the Sandia Peak Tram or drive the Sandia Crest National Scenic Byway to take in spectacular panoramic views of Central New Mexico and to enjoy many other recreational opportunities. The Four Seasons Visitor Center offers year-round interpretive exhibits and seasonal programs at the upper Tram Building. The Scenic Byway has several newly remodeled picnic grounds with shelters and group areas for reservation.

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Historic Old Town Historic Old Town has been the heart of Albuquerque since the city was founded in 1706. It is the city’s cultural center, with numerous museums and more than 150 shops, galleries and restaurants; San Felipe de Neri Church, built in 1793; and historic centuries-old adobe structures.

New Mexico BowlThe New Mexico Bowl is an NCAA-sanctioned post-season college football bowl game that has been played annually since 2006 at Dreamstyle Stadium on the campus of the University of New Mexico in Albuquerque, New Mexico. Direct spending resulting from the bowl game has averaged $3.5 million a year over the past five years and attracts around 6,000 out-of-town visitors.

MARKET SUMMARY

Historic Old Town Albuquerque

New Mexico Bowl

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MARKETSUMMARY

Route 66

Transportation

Albuquerque International SunportThe Albuquerque International Sunport hosts eight major airlines and four regional airlines including: Alaska Airlines, American Airlines, JetBlue Airways, United Airlines and Delta Airlines among others. Southwest Airlines is Albuquerque’s largest carrier which accounts for 50% of the airport’s annual 6.1 million passengers. Due to Albuquerque’s occasional inclement weather the runways have shutdown to ensure passenger safety. The airport also offers non-stop flights to 20 out of state cities including Chicago, New York City, Dallas, Los Angeles, Atlanta and San Francisco. An economic impact study conducted in 2013 by the University of New Mexico concluded that the Albuquerque International Sunport is responsible for $1.9 billion in economic output for the state and 20,000 jobs are directly or indirectly related to the facility.

Rail Albuquerque rail service has one freight and passenger line, The Burlington Northern and the Santa Fe Railway (BNSF).Both railways offer connections in all directions. Albuquerque is equidistant from the Port of Houston and the Port of Los Angeles. The BNSF is the only railway that connects in to central Mexico. New Mexico also has an interstate railroad system, The New Mexico Rail Runner Express, a light passenger commuter system that provides connections to Belen and Santa Fe.

Highways The primary highways in Albuquerque are I-25 and I-40 which provide national access for business and industry in the city as well as for motor freight companies. New Mexico has very competitive rates for outgoing freight rates.

Route 66Route 66 is arguably the most famous highway in America. Featured all throughout Albuquerque are historic Route 66 signs. The signage is now under the name of Central Avenue but the history remains. The route guides visitors and locals alike through the volcanoes on the far west side of the city, the ABQ BioPark Botanic Garden, Zoo, and Aquarium, through the Old Town and Downtown business districts, and continuing eastward through the University of New Mexico where there are plenty of restaurants and boutiques.

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DISCLAIMERS AND DISCLOSURESBROKER DISCLAIMERThis confidential offering memorandum has been prepared by Hunter Hotel Advisors (“Broker”) in cooperation with the Seller, solely for the limited use of prospective purchasers. The offering memorandum is not intended to provide all the information necessary to reach a purchase decision. Each prospective purchaser is encouraged to do its own thorough review and gather and verify to its satisfaction all information about the property.

The undersigned understands and acknowledges that there is no representation or warranty as to accuracy or completeness of the information provided.

While the financial, operational, property description, projections and other information herein is compiled from sources believed to be reliable, neither Broker nor Owner guarantee, represent or warrant its accuracy or completeness. Because of the foregoing, and since the Property is being offered on an “As Is, Where Is” basis, Purchaser should use such information solely to facilitate his investigation and must make independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this offering memorandum. As to pro forma projections, these were prepared by Broker based on many assumptions and events over which owner and broker have no control and are not guaranteed. Buyers should use such projections for an initial review only and are urged to do their own study and projections before taking action relative to the Property.

No liability is assumed for errors and omissions, misstatements of facts, prior sale, change-of-price or withdrawal from the market without notice

AS IS, WHERE ISThis hotel is being offered “As Is, Where Is,” with all faults and limitations. Purchaser should do his own studies to properly understand what he will be buying.

ENVIRONMENTAL ISSUESThe Seller and Broker specifically make no representations whatsoever about any environmental conditions on the property, including but not limited to issues such as asbestos, hazardous waste, mold and mildew, petroleum leaks or spills. Each prospective purchaser is encouraged to do his own study and analysis and determine to his own satisfaction the status of the various issues.

AMERICANS WITH DISABILITIES ACTThe owner and broker make no representations regarding this property and this law. A buyer should consult knowledgeable experts and attorneys regarding these matters.

AGENCYHunter Hotel Advisors, is the exclusive agent of the Seller, represents the Seller only and shall be compensated by Seller.

CONFIDENTIALAll information contained in this offering is confidential in nature and must be held in the strictest confidence, except information which is a matter of public record. Duplication or reproduction of any of the contents of this document or other information provided to you by Broker about this property, without the express written permission of Broker, is prohibited.

RETURN OF INFORMATIONThis memorandum is the property of Hunter Hotel Advisors, and is intended to be used only by such parties to whom Broker has delivered the memorandum or to whom Broker has approved such delivery. If, after review, you have no interest in purchasing the property at this time, KINDLY RETURN OR DESTROY THIS MEMORANDUM and all other information provided to you by Seller, Broker or others to Broker at your earliest convenience.

PROPERTY TOURS AND INFORMATIONPLEASE DO NOT VISIT THE HOTEL WITHOUT MAKING PRIOR ARRANGEMENTS THROUGH THE BROKER. Please do not contact management or hotel owner, nor talk to any employees. All due diligence information must be provided through Hunter Hotel Advisors and all property tours must be scheduled through Hunter Hotel Advisors. A Hunter representative must be present for all tours.

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ABOUT HUNTER

Hunter Hotel Advisors is the nation’s leading investment advisory firm focused exclusively on the hotel industry. Our seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 40 years of experience in full and select-service single assets and portfolios, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed us to consistently maximize value regardless of market conditions.

Bob Hunter, [email protected]

Teague Hunter, [email protected]

Lee Hunter, [email protected]

Danny Givertz, Sr Vice [email protected]

Robert M. Taylor, Sr Vice [email protected]

Trey Scott, Sr Vice [email protected]

Steve Taylor, Sr Vice [email protected]

Marilyn Cox, Vice [email protected]

Mayank Patel, Vice [email protected]

Tim Osborne, Vice [email protected]

David Perrin, Vice [email protected]

Shamir Patel, Vice [email protected]

Brian C. Embree, Sr [email protected]

Jatin Patel, Sr [email protected]

Daniel Riley, Sr [email protected]

Chase Perry, [email protected]

Capital MarketsStephen Gaylor, SVP Capital [email protected]

DAYS INN MIDTOWN ABQ ALBUQUERQUE, NEW MEXICO...PREPARED BY HUNTER HOTEL ADVISORS / PREPARED BY...

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