Corporate Profile

2016

Any inquiries regarding The Hotel Group should be directed to:

Douglas Dreher, President & CEO

201 5th Avenue South, Suite 200

Edmonds, WA 98020

Telephone: (425) 771-1788 Facsimile: (425) 672-8280

www.thehotelgroup.com

EXECUTIVE SUMMARY

The Hotel Group (THG) is a national hotel investment and management company with corporate headquarters in Seattle, WA

and Nashville, TN. Our deep and talented management team includes more than 50 corporate and regional members and

2,000 associates at our 36 properties across 11 states.

Formed in 1984, the company’s operation experience includes:

Management and/or ownership of more than 125 properties in 25 states,

since inception

Design and development oversight of over 40 new hotels

Multimillion dollar renovations of 50 hotels

Acquisition, ownership and divestment of 22 hotels

Completion of $460 million of asset management assignments for the

Resolution Trust Corporation (RTC)

THG raised $185 million in Opportunity Funds and Investment LLC’s to

acquire twelve hotels.

Mission Statement

Our mission is to create maximum investment value for our client partners and to

provide personal and professional growth opportunities for our associates.

Fueled by this mission, THG has consistently demonstrated the unparalleled ability

to assess a property not for what it is, but rather, for what it can be. The company

has regularly made market leaders out of historically poor performers. THG

maximizes return on investments and along the way attracts the industry’s finest

people to its ranks.

Value Statement

Our primary guiding principle is personal and professional integrity. It is the

standard by which we make our decisions and measure our actions, as well as the

value that we most strive to practice in our business relationships.

“As an investor accountable to my own clients, I have an appreciation for the value, respect, and integrity that THG demonstrates. They hold themselves accountable for the decisions that directly affect their investors, commanding the utmost respect of their clients/employees.” - Jeff Flohr, Principal Flohr Asset Management

Courtyard by Marriott Richland, Washington

THG General Managers Conference Seattle, Washington

The Arctic Club Seattle A Doubletree by Hilton Hotel 1

MANAGEMENT PORTFOLIO

The strength of THG is found in our team and track record, diversity and depth of experience, highlighted by our successful

operation of more than 120 properties ranging from select-service hotels in small communities to full-service hotels in large

metropolitan areas. We have triumphed with independent as well as franchised properties, and have established a network of

personnel, operational, and technological resources to ensure a level of maximum performance at each property.

THG provides a wide range of flexible services geared towards the unique needs of our client partners: ongoing hotel

management; development and renovation oversight; receivership and turnaround of distressed assets; ownership; and asset

management. We utilize our substantial expertise in operations, marketing, revenue management, finance/accounting, human

resources, guest services, and heart-of-the-house disciplines to achieve the objectives of our clients and provide a maximum

return on their investment.

Homewood Suites by Hilton Issaquah, Washington

Springhill Suites Kennewick, Washington

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The Hotel Group - Corporate Office Seattle, Washington

Current Portfolio Previously Managed & Asset Managed

Corporate Office

Operations Office

Marriott Kansas City, Missouri

The properties currently under management by THG are listed below:

DoubleTree by Hilton South Bend, Indiana

DoubleTree by Hilton Cleveland, Ohio

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*Under Construction **Under Development

Hilton Garden Inn Seattle, Washington

Hotel Rooms Segment Location

Crowne Plaza 385 Upscale Kansas City, MO

Marriott 384 Upscale Kansas City, MO

DoubleTree by Hilton 379 Upscale Cleveland, OH

DoubleTree by Hilton 291 Upscale South Bend, IN

DoubleTree by Hilton 289 Upscale Billings, MT

Hilton Garden Inn* 254 Upscale Bellevue, WA

Hilton Garden Inn 222 Upscale Seattle, WA

Hilton Suites 203 Upscale Brentwood, TN

Hilton Garden Inn 179 Upscale Issaquah, WA

Courtyard by Marriott* 176 Upscale Corvallis, OR

Hilton Garden Inn** 176 Upscale Wenatchee, WA

Hampton Inn by Hilton* 167 Upscale Northgate, WA

Crowne Plaza 165 Upscale Anchorage, AK

Hilton Garden Inn 153 Upscale Corvallis, OR

Hilton Garden Inn 149 Upscale Springfield, OR

Hyatt House* 145 Upscale Anchorage, AK

Homewood Suites Airport** 141 Upscale Honolulu, HI

Holiday Inn Express Hotel & Suites 130 Upper Midscale Pullman, WA

Holiday Inn Express 129 Upper Midscale Anchorage, AK

Hilton Garden Inn 128 Upscale Bothell, WA

Homewood Suites by Hilton 123 Upscale Issaquah, WA

Homewood Suites by Hilton* 121 Upscale Draper, UT

Courtyard by Marriott 120 Upscale Walla Walla, WA

The Arctic Club Seattle 120 Luxury Seattle, WA

Hilton Garden Inn 120 Upscale Kennewick, WA

Courtyard by Marriott 120 Upscale Richland, WA

SpringHill Suites by Marriott 116 Upscale Kennewick, WA

Holiday Inn Express & Suites 114 Upper Midscale Fairbanks, AK

Fairfield Inn & Suites by Marriott 106 Upper Midscale Anchorage, AK

Holiday Inn Express 100 Upper Midscale Lewiston, ID

Comfort Inn 100 Midscale Anchorage, AK

Holiday Inn Express On The River 93 Upper Midscale Corvallis, OR

Plaza Inn & Suites at Ashland Creek 91 Upscale Ashland, OR

Motel 6 Anchorage 85 Economy Anchorage, AK

Microtel Inn & Suites by Wyndham 79 Economy Anchorage, AK

Hampton Inn by Hilton* 69 Upscale Lewiston, ID

TOTAL ROOMS 5,922

PRINCIPALS AND OFFICERS

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THG’s Management Team combines in-depth experience and a broad range of skills to achieve property performance levels consistently higher than the industry average. Edmond Lee, CPA Founder & Chairman As the company’s Chairman, Edmond Lee is responsible for the overall investment strategy, with an emphasis on hotel acquisitions and financial structuring. Before co-founding The Hotel Group in 1984, he worked for a national CPA firm as an audit manager and subsequently served as CFO for a national real estate investment company.

Douglas Dreher, CHA President & Chief Executive Officer

Doug Dreher has held the position of President since 2002 and was promoted to CEO in 2009. He is responsible for all facets of the company, including overseeing the company-wide portfolio, real estate acquisitions and dispositions, investor relations, business development, capital, and strategic planning. Before joining THG in 1989 he worked for Westin Hotels & Resorts in various management positions. Doug has supervised over 75 hotels in 15 states and Canada, overseen 40 new developments, and gained background experience with the major franchise companies such as Marriott International, Hilton Worldwide, InterContinental Hotels Group, Starwood Hotels & Resorts Worldwide, Carlson and Wyndham Hotels & Resorts. Doug holds a Bachelor of Arts Degree from the School of Hospitality Business Management at Washington State University, where he has served as a guest lecturer and received a 75th Anniversary Honoree Recognition Award. Mr. Dreher sits on the Board of Directors for the American Hotel & Lodging Association; and he is past Chairman for the Washington State Hotel & Lodging Association. He is a current member of the Lodging Industry Investment Council (LIIC), a think tank comprised of leading hotel and real estate executives which disseminates investment trends to the hospitality industry.

Randy Meyer, CPA, CHA, CHTP Chief Financial Officer Mr. Meyer is responsible for a wide variety of functions within the company, including responsibility for all enterprise accounting functions, compliance, financing, banking and investor relations, and risk management. He has been intimately involved with over 60 acquisitions and dispositions of owned and managed properties and instrumental in the structuring of numerous hotels’ financing. Prior to joining The Hotel Group (THG), Mr. Meyer was employed as an Asset Manager for Pacific Select Management Incorporated, a specialist in the turnaround of financially distressed properties for institutional investors. Mr. Meyer is a Certified Public

Accountant and a member of the American Institute of Certified Public Accountants, Washington Society of Certified Public Ac-countants, and Hospitality Financial & Technology Professionals. He currently holds positions on client advisory boards for M-3 Accounting and Analytics and Marsh Insurance. He is a founding member of the Washington Lodging Association’s Retro Steering Committee. Mr. Meyer holds a Bachelor of Science Degree in Accounting from City University of Seattle, as well as certification from the American Hotel and Lodging Association as a Certified Hotel Administrator and a Certified Hospitality Technical Professional.

Lara Latture, CHA, Chief Operating Officer

Lara R. Latture, is the Chief Operating Officer and Principal of The Hotel Group Holdings, LLC. With a background of hospitality sales and marketing going on two decades, Mrs. Latture spearheads hotel operations, sales & marketing, HR and renovation & construction functions for the THG portfolio, as well as leading the management of new hotel acquisitions via brand coordination, market analysis and financial growth & stability for The Hotel Group's (THG) expanding portfolio. Prior to THG, Mrs. Latture's experience includes several management positions with Hilton Worldwide and Grand Heritage Hotels in Texas. She joined THG as Director of Sales at the Holiday Inn on the Beach in Galveston, Texas in 1998. Now as Chief Operating Officer & Principal, she works with all of the major franchise companies including Hilton, Starwood, Marriott, InterContinental Hotels Group, Accor, Wyndham and Choice Hotels, putting THG at the forefront of what drives the hospitality industry. In addition to supervision of almost 2000 property-level staff via her support team, she nurtures the people-centric culture at THG through daily contact with her Directors and operational support team, as well as property visits to each hotel annually. Mrs. Latture's dynamic leadership is continually putting THG on the map of what works in hospitality. Mrs. Latture is an active member of the Hilton Worldwide DoubleTree Owners Advisory Council, and has previously served 2 terms on the IHG Owners Association Crowne Plaza Committee. Mrs. Latture was featured in Hotel & Motel Management Magazine "People you need to know in the Industry" and in Lodging magazine's "60-Second Profile", as well as regularly being interviewed for several hospitality publications. Mrs. Latture has guest lectured at the Conrad N. Hilton College of Hotel & Restaurant Management, and in 2012 she was named one of Nashville, Tennessee's "Most Influential Women" by the Nashville Business Journal. She is a Certified Hotel Administrator (CHA) from the American Hotel & Lodging Educational Institute, and attended The University of Tennessee at Chattanooga, where she studied Business Administration.

Jake Fischer, Vice President of Real Estate and Business Development Jake Fischer is responsible for the growth and development of the THG hotel portfolio. He establishes and nurtures relationships with new and existing client partners, pursues new-build development opportunities, identifies acquisition opportunities, and supports the development team with various projects. Jake brings more than 13 years of real estate experience to THG.

Eric McCarthy, CHAE Vice President of Hotel Accounting Eric McCarthy oversees THG’s hotel accounting operation including day to day oversight of the accounting functions, internal controls, and strategic planning. He will work closely with the company’s operations, development, and renovation teams providing guidance and support. He brings over two decades of experience in both hotel and corporate roles directly dealing in accounting, centralized finance environments, hotel operations, project management, and operational analysis.

Don Haggerty, CHAE Vice President of Renovation and Construction As Vice President of Renovations and Construction, Don Haggerty utilizes his extensive experience in preventative maintenance, capital projects, green seal, quality and life safety management and monthly budgeting for the hospitality industry. He will be focusing on completing projects on budget and schedule by managing all facets including scope, design, documentation, bid, award, execution, construction, installation and closeout for any projects in the portfolio.

Robert Avila, Regional Vice President of Operations Robert Avila works directly with the general managers of the THG-owned properties, as well as their teams. His focus is on day-to-day operations and includes customer service and internal associate satisfaction. Robert has been with THG since 2006 and has brought with him more than 30 years of industry experience.

Brian Latture, Regional Vice President of Operations As director of an assortment of properties, Brian Latture applies his extensive experience operating hotels to the variety of challenges faced in the hotel industry. He provides leadership, guidance, and support to general managers and associates, as well as the necessary efforts to achieve budget results and operating plan goals for the Pacific Northwest and all properties in Alaska.

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“I have a history with this company for well over 17 years. Their effective management strategies stand well above other companies in this industry and

bolster my trust in their ability to not only manage my investments, but to guide me through these turbulent economic times.”

– Sidney Chan, President, Uniwell Corporation

MANAGEMENT TEAM

Katherine Steed, Vice President of Sales & Marketing Katherine Steed is responsible for assisting the properties with day to day sales, marketing and revenue manage-ment efforts. She is also involved in the property transitions and new hotel openings. Katherine became part of the team when THG acquired the Hilton Knoxville, Tennessee in 2003, where she held a variety of roles and was then promoted to Director of Sales.

Isabel Dreher, PHR Vice President of Human Resources

Isabel Dreher oversees payroll and benefits, workers’ compensation, recruitment and training, and all HR issues, at the corporate and property levels. She has been with THG for 20 years, starting as a guest services supervisor at the Hampton Inn in Valencia, California. From there, Isabel assisted the company in various capacities at other managed properties before being promoted to the corporate office.

Robin Koetje, CHTP Director of Information and Technology Robin Koetje oversees all corporate and property IT initiatives. His department provides support for THG net-work servers and computers, and he works directly with IT system vendors for current hotels, as well as the procurement of systems for newly constructed or purchased hotels. Robin joined the corporate team after hav-ing worked in the front office for one of THG’s Pacific Northwest hotels.

Molly Bruder, Executive Assistant to the President and CEO

Molly Bruder is the Executive Assistant to Douglas Dreher, THG’s President and CEO. In addition to managing several projects for the company, her key responsibility includes scheduling tasks and managing communications to ensure the internal chain of command operates efficiently. Molly is instrumental in coordinating the diverse responsibilities of the corporate office with THG’s customers, owners, and employees.

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“I have a history with this company for well over 17 years. Their effective management strategies stand well above other companies in this industry and

bolster my trust in their ability to not only manage my investments, but to guide me through these turbulent economic times.”

– Sidney Chan, President, Uniwell Corporation

CASE STUDIES

Since inception, THG has developed a sound reputation for its ability to successfully open and operate a variety of

hotels and resorts. It also has created an enviable track record for the turnaround of distressed properties. The

following case studies are examples of both on-going and completed projects.

“With THG managing our Holiday Inn Express, it has been the most positive economic success I’ve ever had! THG

has guided us through all facets of a hotel’s life cycle and has given us a beautiful, well managed, profitable and

award winning hotel.” -Dr. Wenzel Leff, Hotel Property Owner

120-Room The Arctic Club Seattle, a DoubleTree by Hilton, Seattle, Washington

Amenities include the Northern Lights Dome Room, JUNO

Restaurant and Polar Bar;

Historic landmark built in 1916, opened as a luxury hotel in

July 2008;

Opened independently and became affiliated with DoubleTree

by Hilton in 2009;

EBITDA growth of nearly $1.7m in 2.5 years;

Awarded the 2010 Hilton Hotels North American “Conversion

of the Year” award;

Awarded the 2012 “Pride Award” by the DoubleTree by Hilton

Awards of Excellence.

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379-Room DoubleTree by Hilton, Cleveland, Ohio

Acquired May 2007 and underwent a $17M transformational renovation;

Opened as a DoubleTree post conversion during the Great Recession and increased RevPAR by 25% in the first year and an additional 25% in the second year;

RevPAR index increased from 62% post conversion to its current 106% penetration;

THG was awarded ‘Developer of the Year’ by Hilton Hotels Corporation for the DoubleTree brand in 2009;

Annual EBITDA increased by more than $3,900,000 from 2008 to 2015 November Trailing Twelve Month.

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384-Room Kansas City Airport Marriott, Kansas City, Missouri

Currently undergoing a multi-mullion-dollar transformational

renovation that will allow the hotel to attract higher rated

corporate and group business, resulting in increased RevPAR;

As of June 2016 (Actual/Budget), the property is projected to

finish the year with more than a 57% increase in EBITDA

compared to June 2015 TTM;

The only hotel on airport grounds, the subject property benefits

from its strategic location at the main entrance of the Kansas City

International Airport;

The Kansas City International Airport is consistently ranked as

one of the top five airports in the North American Airport

Satisfaction Study by J.D. Power & Associates.

120-Room Courtyard by Marriott, Richland, Washington

Property benefits from its scenic Columbia River location in the Tri-Cities region of eastern Washington;

Ranked #1 in its competitive set with a June 2016 TTM RevPAR Penetration Index of 145.9%, a 4.2% increase over prior year;

Achieved 93% EBITDA flow-through in 2012, reaching peak performance levels for both revenue and EBITDA;

According to guest reviews on TripAdvisor, the Hotel has received 4.6 out of a possible 5.0, and has received both a Certificate of Excellence and a Green Partner Award.

179-Room Hilton Garden Inn Issaquah/Seattle, Washington

Selected to open and operate an upscale Hilton Garden Inn

for a prominent Seattle developer’s first hotel venture,

leading to the development of an adjacent Homewood

Suites;

Part of an elite team of project consultants - spearheaded

franchise analysis, brand selection and franchise relations;

Played an integral role in design consultation, purchasing and

pre-opening FF&E coordination;

Property positioned to take advantage of a leading corporate

market, just minutes from Costco World Headquarters,

Microsoft and Boeing;

Effective yield management and prudent ratio management

contributed to 35% EBITDA flow-through for the HGI in its

first two years of operation.

AWARDS AND ACCOLADES

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THG often wins awards for innovation, renovation and promotion. They are a clear and welcome confirmation that the company is doing something outstanding in the market place and is being recognized for a job well done.

2015 Marriott International Horizon Award The Hotel Group is pleased to announce it was awarded the 2015 Horizon Award by Marriott International at Marriott’s CONNECT Conference. Representing the best of Marriott’s partnerships, the award is reserved for companies that embody Marriott’s Spirit to Serve philosophy, focus on their associates to create well managed and engaged workforces, and provide outstanding customer service. 2014 IHG Torchbearer Award

THG’s Crowne Plaza Anchorage-Midtown Recognized with Torchbearer Award from IHG The Hotel Group is pleased to announce it’s Crowne Plaza Anchorage-Midtown hotel was awarded the Intercontinental Hotels Group (IHG) Torchbearer Award, the highest honor for quality and service at the 2015 IHG Americas Investors and Leadership Conference held in Las Vegas, Nevada. The Torchbearer Award is only awarded to the top hotels within the IHG system.

2013 Marriott International Renovation of the Year Award THG’s Courtyard by Marriott Missoula Recognized by Marriott Focus Service Awards

The Hotel Group was awarded the 2013 Renovation of the Year Award in recognition of the Courtyard

by Marriott Missoula, MT. The award, from parent company, Marriott International, Inc., was given

to showcase the successful transition to new ownership/management while undergoing a property

renovation. The renovation included all public spaces and a dramatic transformation of the restaurant

into the new Courtyard by Marriott Bistro Concept.

2013 DoubleTree Hilton Most Improved Quality Award

THG’s DoubleTree by Hilton South Bend Recognized by DoubleTree by Hilton Awards of Excellence The Hotel Group was awarded the 2013 Most Improved Quality Award in recognition of the DoubleTree by Hilton South Bend, IN. THG rebranded the property from a 30-year-old Marriott to a brand new DoubleTree by Hilton. The complete renovation encompassed all 291 guestrooms and 15,000 square feet of meeting space as well as corridors, lobby, atrium, mechanical and HVAC updates. The newly-rebranded hotel now boasts a Starbucks store and vibrant new restaurant concept, Baker’s Bar and Grille.

2013 DoubleTree by Hilton Most Improved Market Share Award

THG’s DoubleTree by Hilton Santa Fe Recognized by DoubleTree by Hilton Awards of Excellence The Hotel Group was awarded the 2013 Most Improved Market Share Award for the entire DoubleTree by Hilton portfolio, in recognition of the DoubleTree by Hilton Santa Fe, NM. THG acquired the former Holiday Inn in December 2010, and unveiled its conversion to a DoubleTree by Hilton and it’s complete property renovation in 2012.

2012 DoubleTree by Hilton Pride Award

The Arctic Club Seattle - A DoubleTree by Hilton Recognized by DoubleTree by Hilton Awards of Excellence The Arctic Club Seattle - A DoubleTree by Hilton has been awarded the prestigious Pride Award by the DoubleTree by Hilton brand as part of its 2012 Brand Awards program. The annual Pride Awards recognize DoubleTree properties that demonstrate exemplary hospitality and commitment to creating a rewarding experience for guests. Selected as one of the top five DoubleTree branded hotels with 224 rooms or less, the Arctic Club Seattle is a AAA Four Diamond Award-winning hotel and recipient of the 2012 TripAdvisor Certificate of Excellence.

EMPLOYEE INITIATIVES / COMMUNITY SERVICE

THG is committed to providing personal and professional growth opportunities for all of its employees. Each year the company awards one Hospitality Greatness Gold Leader award per property. This associate has provided exemplary service via our hospitality culture - Hospitality Greatness™. This associate always lends a helping hand to their fellow co-workers and to our guests, and stands out above all the rest for always going the extra mile.

Hospitality Gold Leaders - Billings, Montana

In 2006, THG established the Good Neighbor Program to formalize its long standing commitment to partner with non-profit organizations in communities where we operate hotels. Examples of this support include:

Hotel employees volunteer their time to help local community non-profit organizations.

THG donates funds from our renovation and salvage sales.

THG donates excess furniture, fixtures, televisions, etc. from hotels during renovations and upgrades.

THG hotels collect and donate “partially used” amenities to local shelters and other organizations.

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Hilton Garden Inn Kennewick volunteering at a local food bank - Kennewick, WA.

Any inquiries regarding The Hotel Group should be directed to:

The Hotel Group Holdings, LLC

Douglas Dreher, President & CEO

201 5th Avenue South, Suite 200

Edmonds, WA 98020

Telephone: (425) 771-1788 Facsimile: (425) 672-8280

www.thehotelgroup.com