EXCELLENCE IN HOSPITALITY DEVELOPMENT & MANAGEMENThilton | hyatt | marriott

a hotEl manaGEmEnt ComPany

oto development

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Entrepreneur, philanthropist, and chief sponsor George Dean Johnson, Jr. has been instrumental in the development and management of numerous businesses, including Waste Management, Blockbuster Video, and Extended Stay America Hotels. Mr. Johnson is the namesake of the University of South Carolina Upstate’s School of Business, and remains deeply committed to his hometown of Spartanburg, South Carolina. In 1994, when Johnson and his business partner, Wayne Huizenga, founded Extended Stay America (ESA), the two boldly took the company public on the New York Stock Exchange with a mere two hotels completed in their

portfolio. Over the following ten years, ESA developed 475 hotels nationwide, making it the fastest growing company in the history of lodging. The Blackstone Group bought ESA for $3 billion in May of 2004 and took it private in the largest public-to-private transaction in South Carolina history. Following the historic sale, George Dean Johnson, Jr., Wayne Huizenga, Corry Oakes, and Todd Turner launched OTO Development to develop and operate upscale select-service hotels in the top markets in the United States. OTODevelopment’sremarkableriseisreflectedin award-winning hotels, agile development strategies, and global recognition from every partner brand.

our foundation H E R I TA G E

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best-in-class hospitality B R A N D PA R T N E R S

OTO’s portfolio includes Residence Inn, Courtyard, SpringHill Suites, FairfieldInn&Suites,andACHotels. In 2016, OTO received approval from Marriott to manage their select-service lifestyle brands, Moxy, and AC. OTO also currently manages the former Starwood lifestyle brand, Aloft.

Hilton Garden Inn, Homewood Suites,HamptonInn&Suites,and Home2 Suites are the Hilton-brand products that OTO manages. These upscale select-service and extended-stay propertiesenjoythebenefitsofglobal awareness, consistent quality, and strong loyalty.

Hyatt properties are well-known forflexibilityandcomfort.OTOmanages both Hyatt Place and Hyatt House hotels, boutique concepts backed by extensive market research and designed to give guests the feel of a tight-knit community.

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the OTO approach At OTO, we think like an owner because we are owners. This core mindset has driven us to deliver excellence in hotel development and management since 2004. With a growing portfolio of properties, OTO has consistently been recognized as an industry leader in top line performance, operational management, and customer service.

In addition to owned assets, OTO’s portfolio includes properties managed for high-net-worth individuals, a NYSE-listed REIT, and one of the largest private equity companies in the world. We fully understand that each market and hotel is unique, and take an individualized approach to every property in our portfolio. We treat the hotels we manage as if we own them — that’s the OTO difference.

Our leadership, the proven tools we employ, and our results-focused strategy are all propelled by a single goal of providing value — to our guests, our employees, and ultimately our stakeholders. We get there using a simple formula: combine the best People and most innovative Processes to build a legacy of great Performance.

A N O W N E R ’ S P E R S P E C T I V E

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O T O B Y T H E N U M B E R S

washinGton, dC

manhattan

ChiCaGo, il

st. louis, mo

PhoEnix, az

ft. laudErdalE, fl

wEst Palm bEaCh, fl

tamPa, fl

b irminGham, al

sEattlE, wa

bay arEa, Ca

los anGElEs, Ca

...and morE!

C U R R E N T M A R K E T S

94%triPadvisor CErt if iCatEs of

ExCEllEnCE

o f o u r p r o p e r t i e s h a v e b e e n a w a rd e d

in managed revenues

$350+ m i l l i o n

h o t E l s (a n d C o u n t i n G )

in OTO’s management portfolio

#55 7,200+rooms

rEvEnuE manaGEr to hotEl ratio:

10:1

THREEglobal brand

partners:

hilton

hyatt

marriott

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Corry oakEs President, CEO, Founding Partner

As the former CEO of Extended Stay America, Oakes oversaw the the development and operation of 475 locations in 42 states. Currently, Oakes serves on the

Franchisee Advisory Council for Hyatt Place by Hyatt, and is the President of the Franchise Advisory Council for

AC Hotels by Marriott.

jason boEhmVP, Business Development

Boehm joined OTO in 2008, and was appointed VP of Business Development in early 2016. He is the

primary liasion between OTO and owner partners, and works closely within the hotel ownership, franchising,

consulting, and brokerage communities to source new management opportunities.

CharliE kinG Chief Financial Officer

King is responsible for accounting, financing,cashmanagement,andfinancialandtaxreporting.Hehasheld executive positions at Bassett

Furniture Industries, Inc., where he was instrumental in building a chain of 130 retail locations throughout the country.

david ward Chief Operating Officer

After serving as Regional Director and then as Vice President of

Operations for OTO, Ward now oversees operations for OTO’s entire managed portfolio. He

formerly managed 200 hotels for Extended Stay America before

their sale to Blackstone in 2004.

lisa GiaimoVP, Sales & Marketing

Giaimo oversees the sales, revenue managment, and eCommerce

departments. Her primary focus is optimizing and growing the

revenues of each hotel. Giaimo has over 20 years in the hospitality

industry and a Master’s degree in management.

C O R P O R AT E L E A D E R S H I P

our people

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aimEE ChEEk Director of eCommerce

With over 15 years of hospitality industry experience, Cheek leads OTO’s eCommerce, marketing

and public relations efforts. She is a Certified Hotel Digital Marketer

through HSMAI.

sonia santana VP, Human Resources

Santana has 20 years of experience in human resources management, and

holdsaCertifiedHotelHumanResourceExecutive designation from the American

Hotel and Lodging Association.

suE danCyCorporate Controller

Dancy manages accounting, tax, payroll, auditing, and treasury functions

for the company. She is a Certified Public Accountant, and has previous

experience in several industries.

jaCk hanChariCk Corporate Director,

Food & BeverageHancharick works with the executive

team,fieldleadersandhotelassociatesto deliver an excellent food and beverage experience to every hotel guest, ensuring

efficiency,relevancy,andquality.

lara stabEll-Gibb Corporate Director, Revenue

Management Stabell-Gibb has over 25 years of hospitality experience and is responsible for leading a team

of Regional Directors of Revenue Management, as well as overseeing highprofileassetsfortheportfolio.

GEorGE rutlEdGE VP, Purchasing & Technology

Rutledge oversees the procurement of all owner supplied goods and

the implementation of technology to support hotel development and

management operations.

C O R P O R AT E L E A D E R S H I P

our people

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With the core belief that our employees are our greatest assets, OTO places strong emphasis on promotion from within. This fosters a company culture of integrity, ethical behavior, and mutual respect for team members. Second, it means effort is well-recognized — individual and team results are rewarded and success is celebrated, which encourages team members to continually strive to meet their full potential. In a work environment where opinions are respected, common goals are shared, and employees are an investment, the output is exceptional performance. A results-oriented organization, OTO delivers excellence through a strategic approach to management. With an aggressive top line focus and a strong track record of consistently providing industry-leading returns for investors, the strength of OTO’s leadership at every level is due to the cultivation of a supportive and entrepreneurial environment for team members. Our four core divisions of management are:

Property-Level Management: OTO employs only the best in class for property-level management, with most general managers having at least 10 years of hospitality experience.

sEEma bandukda

Regional Director of Operations, West

jaREd kaRRas

Regional Director of Operations, Northeast

jason lillgE

Regional Director of Operations, Northwest

R E G I O N A L D I R E C T O R S

sales + operations

caRla TEnEnbaum

Regional Director of Sales, West

jami joHnson

Regional Director of Sales, Northwest

RodRigo aRandia

Regional Director of Sales, Mid-Atlantic

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Regional Management:Aregionalsupportsystem,bywayoffield-baseddirectors,meansanOTO-managedhotelhasampleresources in place. Our regional support systems include: • Sixregionaldirectorsofoperations,threeareaoperationsmanagers,andfiveregionalsalesdirectors(allfield-based)• Two regional directors of facilities• Three general managers and two sales directors in our task force teamRevenue Management:OTO’scorporateofficeemployseightregionaldirectorsofrevenuefocusedspecificallyonmaximizingeach property’s RevPAR index. Each director is assigned a maximum of 10 properties, meaning attention to detail is paramount. • CertifiedRevenueManagementExecutivesthroughHSMAIeCommerce:Teamoffivemaximizingourhotels’onlinepresencethroughcontent,photography,searchengineoptimization,digitalmarketing, social media, PR, and reputation management.• CertifiedHotelDigitalMarketerthroughHSMAI• CertifiedGoogleAdWords

Rob ouRslER

Regional Director of Operations, Mid-Atlantic

david dEl Russo

Regional Director of Operations, Northeast

jaREd kaRRas

Regional Director of Operations, Northeast

dEnnis paRkER

Regional Director of Operations, Southeast

kElly HaagER

Senior Regional Director of Sales, Southeast

duncan wall

Regional Director of Sales, Mid-Atlantic

RodRigo aRandia

Regional Director of Sales, Mid-Atlantic

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M A N A G E M E N T T O O L S

our processes

Budgeting, Forecasting, and Financial Reporting• ProfitSage,abusinessinformationsystemthatoffers

real-timefinancialinformationandreporting• Monthly Balanced Scorecard ranks all hotels by

performanceversusfinancialandnon-financialmetrics• Customized Budget Templates designed and

maintainedbyOTOfinanceteam• Monthly Operating Statements, produced within days

of month-end, are timely and relevantExpense Control• FLEX Expense Model is an internally developed

method for controlling expenses as occupancy fluctuates

• Concierge, an online purchasing solution, helps control costs

• Invoices are approved and coded electronically using eRequester

• Microsoft SharePoint is used for internal communication and document storage

Revenue Management• Day by Day Forecasts are updated weekly by the

revenue management team• Corporate revenue managers have weekly calls

with the hotels to discuss rate strategy and revenue maximization

• IncrementalProfitAnalysistoolsenabletheteamstoevaluate booking opportunities

Reactive and Proactive Sales Tools• The internally developed STR Summary provides a

comprehensive view of occupancy, ADR, RevPAR, comp set ranking and percent change

• SalesPro, a centralized sales database and contact management system, provides accountability tools for activities and production

• Sales Foundations and Negotiations training ensures sales skill development and processes are aligned with hotel goals

• ShopCall program evaluates and scores each sales person on effectiveness in converting incoming inquiries

eCommerce• eCommerce Scorecard ranks various performance

metrics• Social Media Monitoring and Reputation

ManagementHuman Resources Management• Ultipro provides single-platform support for HR,

Payroll, on-boarding, performance management, and time and attendance

• Weekly Labor Analysis is distributed to all hotels to trackandmonitorstaffingutilization

Maintenance• Utilities are monitored and researched using Ecova• PMWorks,anefficientpreventivemaintenance

solution

Toensurewemaximizetheperformanceofourassetsandbuildvalueforowners,weemploystrategicfinancialand management tools to ensure the highest level of return on investment. OTO utilizes the following tools to track performance and plan for future success:

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our performanceAWA R D S & R E C O G N I T I O N

SC Biz News#14 Fastest Growing Company in South Carolina, 2016#6 Fastest Growing Company in South Carolina, 2015

Inc. 50002016, 2015, 2014, 2013, 2012: Honored as one of the fastest

growing private companies in America, 5th year running

American Red Cross2014 and 2013 Community Partner Award

2014 Real Heroes Community Partner Award

United Way2013 United Way Community Impact Award

2012, 2013, 2011 United Way Volunteer Spirit Award

American Heart AssociationPlatinum Fit Friendly, 2016

Gold Fit-Friendly Worksite, 2015

Global eCommerce Summit AwardAward for representing the highest level of overall achievement

in the eCommerce discipline

TripAdvisor Certificate of ExcellenceAwarded to 94% of OTO’s managed properties

HotelsMag.com2012 Top 250 Hoteliers

HotelManagement.net2013 Top 100 Hoteliers

Hyatt2016 Hyatt Place Chicago/Downtown The Loop –

Hyatt Place Project of the Year2014and2013TripAdvisorCertificateofExcellence,

all Hyatt properties2013 North American Best Project, Hyatt Place LAX / El Segundo

2009 Hyatt Developer of the Year

Hilton2014 Hilton Spirit of Pride Award, HIS Tamarac, FL2014 Hilton Wall of Fame, HIS Moreno Valley, CA2014and2013TripAdvisorCertificateofExcellence,

all Hilton properties2013 Hampton Inn Best Conversion, Hampton Inn at the White House

2013 Hilton Mover and Shaker Award2013 Hilton Spirit of Pride Award, HIS W. Sacramento, CA

2013 Homewood Community Service Hotel of the Year2010 Hilton Garden Inn Developer of the Year

2005 Hampton Developer of the Year2004 HIS Outstanding Achievement Award

Hilton Circle of Excellence, multiple hotels and years

Marriott2015 Marriott ICON Award

2014 and 2010 Marriott Partnership Circle Award 2014 Best Custom Architectural Project, North America2014and2013TripAdvisorCertificateofExcellence,

all Marriott properties2013 Marriott Community Service Hotel of the Year Award

2012 Marriott Guest Satisfaction Excellence Award2010 Spirit to Preserve Award

2010 Strongest Collaborator Award 2009 Marriott Best Adaptive Re-Use

2009 Marriott Best Opening, FIS Ft. Pierce, FLMarriott Diamond Circle Award, multiple propertiesPlatinum Circle Award, multiple properties and years

Marriott Gold Guest Service Award, multiple propertiesMarriott Silver Circle Award, multiple properties and years

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“There is a lot to celebrate about OTO – the property team is highly effective at driving revenues and ensuring

best-in-class guest service.”

ruby huanG, svP, assEt manaGEmEnt

Starwood Capital Group

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S P R I N G H I L L S U I T E S | M A N A G E M E N T C A S E S T U D Y

When OTO Development took over management of a 132-room SpringHill Suites, the hotel’s results were in a steady decline, as demonstrated in the table below:

As occupancy slipped, the hotel took lower rated business to salvage RevPAR. Competitors seized this strategy and took share from the SHS nearly every month.

prior to OTO management

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RevPAR Index % change by month swung to double digit increases as sales and revenue management efforts took hold:

Intermsofprofitabilitymargins,OTOwasabletoincreaseGOPmarginsthroughefficientlaborutilization,lowerlaborburdens,centralizedservices,leveragedbuyingpower,andflexingcontrollableexpensestooccupancylevels.MarginsweresignificantlyhigheryearoveryearsinceOTOtookovermanagement,asreflectedbelow:

In a matter of months, OTO completely revitalized a struggling property, transforming it into a set leader. GOP increased by over$300,000inthefirsteightmonths,addingsignificantvalueto the owners. With our People and Processes, this hotel now has a track record of Performance excellence.

Upon management transition, OTO quickly began implementing their management skills in operations, sales and marketing, eCommerce and revenue management. OTO’s veteran team and proven approach made an immediate impact on index and top line revenues by hiring on-property Director of Sales, restoring relationships with local venues and universities, and implementing eCommerce strategies such as website optimization, digital advertising, and improved website content. The results were almost immediate. RevPAR Index reached 115% in February and 125% in March, the highest marks that the hotel had attained in over 3 years. By June 1st, the SHS was consistently running a $12 rate premium over the comp set, which included two Hampton Inns, a Homewood Suites, a Hyatt Place and a Clarion Inn.

OTO management begins

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S U B U R B A N H O T E L R A M P

h a m P t o n i n n a n d s u i t E s b E l l E v u E d o w n t o w n / s E at t l E | b E l l E v u E , wa s h i n G t o n

• Opened December 2014, the Hampton brand’s 2000th hotel

• 100 RevPar index in the 3rd full month• 110 RevPar Index reached within 9 months of opening• Top 25% of the brand in guest satisfaction• AchievedGOPMargingreaterthan50%infirstfull

operating year

The128-roomHamptonInn&Suitesissituatedindowntown Bellevue, the heart of a rapidly urbanizing region that is ten miles east of downtown Seattle and home to many large corporations. Downtown Bellevue has also become the region’s hub for shopping, entertainment, and restaurants;theHamptonInn&Suitesservestouristsandcorporate travelers alike in this ideal location.

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h yat t P l a C E C h i C a G o d o w n t o w n / t h E l o o P | C h i C a G o , i l l i n o i s

• Within 3 months, the property was enjoying a 109 index against their set, which included a Hyatt, Hilton, and Marriott within the Loop and North of the River

• Regularly achieves GOP Margins above 50%• Consistently ranks in the top 30% of hotels in Chicago

on TripAdvisor

The 206-room Hyatt-Place Chicago Downtown / The Loop opened in mid-2015. Despite the competitive lodging environment of Chicago’s central business district, OTO was able to ramp this newly constructed hotel very quickly. Located just blocks from Hyatt’s corporate headquarters, this hotel achieved 85% occupancy and a 91% RevPAR Indexinitsfirstoperatingmonth.

U R B A N H O T E L R A M P

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• TripAdvisorHallofFame2015:CertificateofExcellenceAward-winnerfiveconsecutiveyears

• Led their comp set (1 of 5) in RevPAR index change foreachofthefirsttwoyearsafterOTOobtainedmanagement

• Consistently ranks in the top 20% of hotels in Tampa on TripAdvisor

Uponfirstlearningabouttheopportunity,OTOimmediatelydeployed personnel to Tampa to study the market and evaluate the HamptonInn&SuitesTampa/YborCity.OTOunderwrotethedeal,submittedthewinningbid,andclosedinamerefifteendaysfromstarttofinish.Uponfullytakingovermanagement,OTOexecuteda meaningful operational turnaround in a short period of time. An extensive knowledge of the hotel industry allows OTO to quickly and effectively underwrite any U.S. market.

A C C E L E R AT E D U N D E R W R I T I N G

h a m P t o n i n n & s u i t E s ta m Pa / y b o r C i t y | ta m Pa , f l

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The Hilton Garden Inn and adjacent Regency Conference Center demonstrate OTO’s ability to effectively transition and manage a substantial mixed-use facility. With over 20,000 square feet offlexibleeventspace,theRegencyoffersuniqueopportunitiesto cross sell the hotel and maximize full property potential. Able to seat plated groups of up to 700, the conference center also demonstrates OTO’s ability to handle large scale food and beverage operations.

h i lt o n G a r d E n i n n s t . l o u i s / o ’ fa l l o n a n d r E G E n C y C o n f E r E n C E C E n t E r | o ’ fa l l o n , i l l i n o i s

M I X E D - U S E T R A N S I T I O N

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h i lt o n & m a r r i o t t b r a n d s | s o u t h w E s t E r n u . s .

s P r i n G h i l l s u i t E s Pa s a d E n a a r C a d i a | a r C a d i a , C a

h i lt o n G a r d E n i n n a r C a d i a Pa s a d E n a | a r C a d i a , C a

Inearly2015,OTOassumedfullmanagementofafive-hotelportfolio— all on the same day. Accomplishing a seamless,smoothtransitionoffivepropertiessimultaneouslyrequiredcoordinatedeffortsbetweentheOperations,Sales,Accounting, Revenue Management, eCommerce, IT, HR, and Payroll Departments. OTO’s successful takeover speaks to theaptitude,depth,andagilityofourfieldandcorporatesupportteams.

P O R T F O L I O T R A N S I T I O N

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h a m P t o n i n n P h o E n i x - m i d t o w n - d o w n t o w n a r E a | P h o E n i x , a z

h a m P t o n i n n i rv i n E E a s t / l a k E f o r E s t | f o o t h i l l r a n C h , C a

h i lt o n G a r d E n i n n i rv i n E E a s t / l a k E f o r E s t | f o o t h i l l r a n C h , C a

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O T O D E V E L O P M E N T :

T H E B O T T O M L I N E

excellence in hospitality management

OTO’s approach — emphasizing people, processes, and performance — is only meaningful if it translates into an impactful customer service experience and exceptional bottom-line results. We compared our management portfolio to three publicly traded REITs comprised of similar high-end, select-service hotels, with the following results:

Peer 1 Peer 2 Peer 3 Peer 4 OTO

ADR $142.8 $168.2 $197.5 $164.8 $150.1

Occupancy 78.8% 80.2% 82.5% 82.5% 83.9%

RevPAR $112.5 $134.9 $162.9 $135.9 $126.0

Hotel Revenue $363,613 $888,542 $354,991 $223,855 $220,345

Hotel Expense 223,225 568,294 222,809 128,345 124,557

NOI 140,388 320,248 132,182 95,510 95,788

NOI Margin 38.6% 36.0% 37.2% 42.7% 43.5%

Like an owner, OTO Development is ultimately focused on maximizing return on investment. We believe our best-in-class People and Processes translate into exceptional bottom-line Performance.

Despite having the second lowest RevPAR of the group, OTO’s NOI margin was the highest at 43.5%.

100 dunbar strEEt| suitE 402 | sPartanburG, sC | 29306

www.otodEvEloPmEnt.Com | @otodEvEloPmEnt

For more information, please contact:

J A S O N B O E H MVP, Business Development

jboehm@otodevelopment.com864.327.4037