HOLIDAY INN DFW AIRPORT AREA WEST

OFFERING OVERVIEWPRESENTED BY:

950 E. STATE HIGHWAY 114

STE. 160

SOUTHLAKE, TX 76092

NAPALICAP.COM

HOLIDAY INN DFW AIRPORT AREA WEST

OFFERING OVERVIEWPRESENTED BY:

A whol ly-owned company of

NAPALI CAPITAL, LLC

COMMITMENT FORM LINK

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DISCLAIMER

Nothing in th is presentat ion shal l be construed as an offer for investment in Napal i Hospital i ty One, LLC ( the “Company”) . Sol ic i tat ions for investments

by the Company wi l l only be made through a Pr ivate Placement Memorandum provided by the Company to potent ia l investors for such purpose.

The information contained in th is information packet is conf ident ia l and is sole ly for the use of providing information about the Company’s business

model and investment strategies. The information contained herein is the sole property of the Company and may not be copied or reproduced without

the express wr i t ten consent of the Company. Whi le the information contained in th is presentat ion has been compi led from sources we bel ieve to be

re l iable, neither the Company nor i ts representat ives make any representat ions or warrant ies as to the accuracy or completeness contained herein . Al l

f inancial information used in th is information packet and project ions are provided for reference only and are based on assumptions re lat ing to the

general economy, market condit ions, and other factors beyond the Company’s control .

Statements included in th is presentat ion address act iv i t ies , events or developments that the Company ant ic ipate wi l l or may occur in the future. These

statements are based on certain assumptions and analyses made by the Company in l ight of i ts exper ience and percept ion of h istor ical t rends,

current condit ions and expected future developments. However, whether actual results wi l l conform with these expectat ions is subject to a number of

r isks and uncertaint ies, many of which are beyond the control of the Company, including but not l imited to including r isks endemic to real estate

invest ing, including var iat ions in resident ia l housing demand, general business cycles and interest rate changes . Thus, a l l of the forward- looking

statements made in th is information packet are qual i f ied by these caut ionary statements. There can be no assurance that actual results of any

investment program wi l l conform to the Company’s expectat ions.

TABLE OFCONTENTS

4 NAPALI HOSPITALITY GROUP TEAM 17 BUSINESS PLAN

18 PROPERTY IMPROVEMENT PLAN 26 AFFILIATION AND MANAGEMENT5 NAPALI HOSPITALITY GROUP ADVISORY BOARD

19 F INANCIAL ANALYSIS 27 ACQUISITION TIMELINE6 EXECUTIVE SUMMARY

20 PROJECTED INVESTOR RETURN 28 PARTNERSHIP STRUCTURE8 PROPERTY OVERVIEW

21 PROFORMA FINANCIALS13 MARKET OVERVIEW

23 FINANCING DETAILS15 COMPETITIVE SET ANALYSIS

24 SOURCES AND USES

29 PROPERTIES UNDER MANAGEMENT

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NAPALI HOSPITALITY GROUP TEAM

Tim BlackTim Black is co-founder and Managing Partner of Napali Capital and brings

32 years of executive level management experience to the company. Most

recently, he served as Chief Operating Officer of Great Wolf Resorts, where

he maximized revenue through pricing, demand, digital marketing, and

implementation of new revenue streams and predicted consumer behavior

and pricing strategies for entire portfolio of resorts. He worked directly with

private equity and served as a key player in resort development assisting in

planning, spatial layout, guest traffic flows, and design aimed at maximizing

revenue per square foot and efficiently control operating costs. Mr. Black

was instrumental in growing the company’s U.S. portfolio by eight resorts

and increasing EBITDA by 49 percent. Thomas Black, M.D.Thomas Black, M.D., is co-founder and managing partner of Napali

Capital, a board-certified emergency medicine physician, and a

13-year veteran of the U.S. Armed Forces. His real estate career began

in residential mortgage loans at Wells Fargo Financial as an

undergraduate. Following graduation from medical school, he began

investing in real estate, eventually shifting his focus from single-family

to multifamily assets. In 2016, he co-founded Napali Capital which

creates wealth for physicians through real estate investment and

passive income. and currently manages more than $110M in assets.

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Kimberly SchaeferKimberly Schaefer serves as Key Principal for Napali Hospitality Group and

member of the company's Advisory Board. She has more than 25 years in

finance, leadership, and executive oversight specific to the hospitality

industry. Kimberly served in numerous executive positions at Great Wolf

Resorts, including Senior Vice President of Operations, Chief Brand Officer,

Chief Operating Officer, and Chief Executive Officer. She was integral in the

company's IPO (WOLF) in 2005, setting the strategic direction for the brand

and presenting WOLF to the public markets. Under her direction, the

portfolio grew from one to 14 resorts and created more than $130 million in

EBITDA, leading to its eventual sale to private equity, first in 2013 and again

in 2015. Kimberly also personally has owned numerous hotels under

nationally recognized brands.

The experience and talent of Napali Capital leadership, paired with the

additional expertise of Napali Hospitality's new team member, provides an

incredible foundation and l imitless resource for our hospitality-based investment

company.

Napali Hospitality Group's vision is to become a recognized leader in the

hospitality industry through select- and full-service hotel ownership and

management by delivering the highest level of employee and guest service and

achieving profitable returns for our investors and stakeholders.

NAPALI HOSPITALITY ADVISORY BOARD

Bill SimpsonBill Simpson is an experienced Chief Executive Officer and Board

Director with 40 years of experience in the hospitality and entertainment

industries. Most recently, he worked with Hershey Entertainment and

Resorts Company for 21 years, serving as its CEO from 2013 until his

retirement in 2017, during which time, he and his team achieved record

financial results, increasing revenue by 20 percent and EBITDA by 46

percent. Bill’s reputation for strong organization development that

focuses on company culture, team building, training and development,

and succession planning is recognized throughout the industry.

Rilous CarterRilous˜Carter is a forty-five-year veteran of the hospitality industry. His

early˜industry career˜includes˜leadership and management roles at

Hyatt Hotels and Resorts and Stouffer Hotels and Resorts, now

Renaissance Hotels & Resorts.˜In 1997, Rilous joined Walt Disney World

Resort˜where he served in numerous management and critical team

roles at˜numerous Disney World Resorts and Disney’s portfolio of

exclusive Vacation Club offerings. Before his retirement in 2016, Rilous

was Vice President of Disney’s Hollywood Studios theme park, Epcot and

then of Catering, Convention Services, and Park Event Operations for all

Walt Disney Parks and Resorts.

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Napali Hospitality Group’s team of experienced leadership combines their

industry knowledge with the Napali Hospitality Group Advisory Board which

consists of highly-qualif ied members. These members offer industry expertise

gained through their extensive careers as management and operations leaders in

major, nationally and internationally recognized hospitality brands including Walt

Disney World Resort, Hershey Entertainment and Resorts Company, and Stouffer

Hotels and Resorts, now Renaissance Hotels & Resorts.

EXECUTIVE SUMMARYHoliday Inn DFW Airport Area WestHoliday Inn DFW Airport Area West is a f ive-story, mid-rise, ful l-service

hotel located eight minutes from DFW Airport, and is centrally located

between Dallas and Ft. Worth at the 183/Airport Freeway interchange.

cThe 5,200 SF of f lexible meeting space that can host up to 240 guests. The

80-seat 3B Bistro, the hotel’s onsite restaurant, serves breakfast and dinner

daily alongside the hotel’s bar & patio which offers ful l l iquor service and a

select dinner service daily. Additional guest amenities include a f itness

center with cardio and fitness equipment, an expansive outdoor pool, a patio

with an outdoor seating area, and landscaped grounds.

The hotel’s guestrooms were renovated in 2014 and are located on floors

one through five of the hotel.

INVESTMENT HIGHLIGHTS

OFFERING SUMMARY PARTNERSHIP STRUCTURE

This investment is projected to return greater than 9% annualized cash on cash and an

estimated overall return of 98.5%. Napali Hospitality Group wil l seek a disposition in

approximately 5 to 7 years at which time returns are projected to be an equity multiple

of 1.96x.

Target Investor Equity Multiple

1.96%Target Average Cash on

Cash Return

>9%Target Annual

Return

16%

The hotel ideally is located at the intersection of two freeway systems

midway between Dallas and Fort Worth and minutes from the DFW

International Airport, the fourth busiest airport in the country.

Offers an attractive investment of 8.8% entry cap rate with a per-key

room purchase price of $61,000. This is unparalleled for a ful l service

hotel in a major market.

The property improvement plan (PIP) al lows this investment to maintain

a comparatively low all- in investment basis.

Purchase Price $14,800,000.00

Projected Hold Time 5-7 Years

Equity Required $5,450,000

Loan Proceeds $13,000,000

OFFERING SUMMARY

20%S P O N S O R S

80%I N V E S T O R S

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* Year 3 begins permanent f inancing. Numbers shown uti l ize 1% great interest than current marketrates to provide conservative estimates.** $100,000 investment yields an estimated$198,500 upon sale.

PROJECTED RETURNS ON $100,000 INVESTMENT IN HOLIDAY INN

Investor Annual Percent Return

Year 1

9.7%

$9,700

Year 2

10.3%

$10,280

Year 3*

7.0%

$7,000

Year 4

7.1%

$7,060

Year 5

7.7%

$7,720

Year 6**

154.0%

$154,000Investor Return on Investment

PROPERTY OVERVIEW

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PROPERTY OVERVIEWPROPERTY SUMMARYNumber of Units 243 Units

Year Completed 1975, Renovated in 2014

Stories 5 Stories, Interior Corridor

Land Area +/- 4.13 Acres

Parking +/-265 Spaces, Surface

SITE

Address

County Tarrant County

3005 Airport Freeway, Bedford, Texas 76021

Size/Density 243 Units

MEETING CONFERENCE ROOM GENERAL INFO

SPACE FLOOR/SIZE

Lonestar Ballroom Ground Floor/2592 SF

Longhorn Meeting Room 1 Ground Floor/624 SF

Longhorn Meeting Room 2 & 4 Ground Floor/1274 SF

Longhorn Meeting Room 3 Ground Floor/624 SF

ROOM TYPE SUMMARY

TYPE # UNITS % UNITS SIZE (SF)*

King 131 54% 312 SF

Double Double 96 39% 312 SF

One Bedroom Suite 2 1% 600 SF

ADA 14 6% 412 SF

Total 243 Units 77,792 SF

Holiday Inn DFW Airport Area West is a f ive-story, mid-rise, ful l-service hotel located eight minutes

from DFW Airport, and is centrally located between Dallas and Ft. Worth at the 183/Airport

Freeway interchange. The hotel contains 5,200 SF of f lexible meeting space that can host up to 240

guests. The 80-seat 3B Bistro, the hotel’s onsite restaurant, serves breakfast and dinner daily

alongside the hotel’s bar & patio which offers ful l l iquor service and a select dinner service daily.

Additional guest amenities include a f itness center with cardio and fitness equipment, an expansive

outdoor pool, a patio with an outdoor seating area, and landscaped grounds. The hotel’s guest

rooms were renovated in 2014 and are located on floors one through five of the hotel.

Restaurant ˜ ˜

Bar Lounge

Complimentary WiFi˜ ˜

High-Speed Internet

Guest Laundry

˜

Flat Screen TVs˜ ˜

In-Room Coffee Maker

Free WiFi

Desk

Iron/Ironing Board

Microwave/Refrigerator ˜

Hair Dryer˜ ˜

Granite Vanities

ADA Rooms*

In-Room Safe˜ ˜

*In Select Units

Outdoor Pool with Hot Tub

Business Center

Fitness Center ˜

Meeting & Conference Rooms

TYPE # UNITS % UNITS SIZE (SF)*

* In Select Units

HOTEL AMENITIES ROOM AMENITIES

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PROPERTY OVERVIEWCONTINUED 1

GUEST ROOMS & SUITES

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HOTEL AMENITIES

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Outdoor Pool & Hot Tub

Front Desk Lobby

Bar

Guest Lounge

Patio Seating

Lobby

DIMENSIONS (FEET)

EVENT ROOM ROOM DIMENSIONS AREA CEILING DOOR DIMENSIONS FLOORL X W SQ FT HEIGHT H X W LEVEL

Lonestar Ballroom 36 X 72 2592 13 7 X 5 GRND

Longhorn Meeting Room 1 24 X 26 624 10 7 X 3 GRND

Longhorn Meeting room 2 & 4 49 X 26 1274 10 7 X 3 GRND

Longhorn Meeting Room 3 24 X 26 624 10 7 X 3 GRND

CAPACITIES BY LAYOUT

EVENT ROOM HOLLOW SQUARE BOARDROOM U-SHAPE CLASSROOM RECEPTION BANQUET THEATRE CABARETSTYLE STYLE STYLE STYLE STYLE STYLE STYLE STYLE

Lonestar Ballroom 50 60 60 70 150 160 200 –

Longhorn Meeting Room 1 20 15 15 20 20 15 30 30

Longhorn Meeting room 2 & 4 16 16 19 27 765 32 50 30

Longhorn Meeting Room 3 15 20 20 30 30 20 30 20

MEETING & CONFERENCE ROOMSCONTINUED 2

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MARKET OVERVIEW

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LOCATION OVERVIEW

DEMAND GENERATORS

DFW Internat ional Airport is located 8 minutes north of the hotel . I t

occupies 18,000 acres and is the fourth busiest a irport in the country

(t twe l f th in the wor ld—2017 data) . I t served 66 mi l l ion passengers in 2017

and f l ies to 200+ dest inat ions, provides 228,000 jobs, and has an

economic impact on North Texas of $37 bi l l ion annual ly . Talks are

underway for a $37 bi l l ion, s ixth terminal with 30 gates, to open in 2020.

The impact of the airport ’s s ize, proximity to the Hol iday Inn and i ts

p lanned, cont inued growth cannot be overstated.

The hotel ’s central locat ion provides access to I rv ing, Grand Prair ie ,

Hurst , Euless, Bedford, North Richland Hi l ls , Ar l ington, and Col leyvi l le , and

the hotel ’s h igh v is ib i l i ty offers outstanding exposure from TX 183—the

recent ly upgraded Airport Freeway—and from TX 121.

Accessibi l i ty to area demand generators such as the DFW Airport , the

North East Mal l , AT&T Stadium (Dal las Cowboys) , Globe L i fe Park (Texas

Rangers) , and Six F lags Over Texas Amusement Park.

LOCAL POPULATION

The Dal las-Fort Worth Metroplex is the fourth largest metro area in the U.S. in eco-

nomic output and populat ion. Comprised of three major c i t ies (Dal las, Fort Worth and

Ar l ington) , the Metroplex is center court for the booming North Texas region and home

to 20 Fortune 500 company headquarters . Only 3 U.S. c i t ies rank higher .

Bedford, the town in which the hotel is located, is s i tuated between Dal las and Fort

Worth in an area cal led Mid-Cit ies/Tr i-Cit ies . Considered a suburb of Fort Worth, i t is

associated with the DFW Airport .

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DALLAS/FORT WORTH METROPOLITAN STATISTICAL AREA (MSA)

The Dal las/Fort Worth Metroplex is the fourth largest metro area

in the U.S. in economic output and populat ion. Comprised of three

major c i t ies (Dal las, Fort Worth and Ar l ington) , the Metroplex is

center court for the booming North Texas region and home to 20

Fortune 500 company headquarters . Only 3 U.S. c i t ies rank higher.

Est. 2018Construction

Activity

$22B 2017

ConstructionActivity

LOCATION OVERVIEWCONTINUED 1

• #1 ranking in PwC 2019 Emerging Trends

in Real Estate

• #1 in job growth among 12 top MSA’s

• Home to 7 .4 mi l l ion residents

• $460 Bi l l ion GDP

• 220 mi l l ion square feet of off ice space

• 25+ major col leges and univers i t ies

• 25 mi l l ion annual v is i tors

$23B

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HOLIDAY INN vs. COMPETITIVE SET SMITH TRAVEL REPORT (STR) SEPTEMBER 2018

Current Month 77.5 76.7 101.1 84.59 98.31 86.1 65.60 75.43 87.0

Year To Date 80.0 78.2 102.3 86.14 98.32 87.6 68.94 76.90 89.7

Running 3 Month 72.7 75.4 96.4 83.06 96.54 86.0 60.41 72.82 83.0

Running 12 Month 79.9 76.5 104.4 86.90 97.87 88.8 69.44 74.88 92.7

Holiday Inn DFW Airport Area West3005 Airport Freeway, Bedford, Texas 76021

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My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI)

SEPTEMBER 2018

Current Month -4.0 1.0 -5.0 0.9 -2.0 3.0 -3.1 -1.0 -2.2

Year To Date -4.4 5.8 -9.6 19.3 -1.1 20.5 14.0 4.7 9.0

Running 3 Month -11.7 1.2 -12.8 8.0 -0.7 8.8 -4.7 0.5 -5.1

Running 12 Month -3.5 5.9 -8.9 20.9 -0.6 21.6 16.7 5.3 10.8

My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI)

SEPTEMBER 2018 VS. 2017 PERCENT CHANGE (%)

OCCUPANCY (%) ADR REVPAR

OCCUPANCY (%) ADR REVPAR

INVESTMENT HIGHLIGHTS

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The business plan is to complete property improvements

according to Intercont inental Hotel Group ( IHG) specif icat ions,

to comply with brand requirements and improve operat ions to

increase revenue and maintain the competi t ive edge among

area fu l l serv ice hotels .

BUSINESSPLAN

• Fitness Center • Guest Laundry

• Outdoor Pool • Rooms, Suites, Bathrooms

• Elevators, Corridors • ADA Rooms, Bathrooms

• Vending Areas

Complete guest area and amenity improvements, according to IHG brand specifications in the fol lowing areas:

Complete common area improvements, according to IHG brand specifications in the fol lowing areas:

Guest Area and Amenity Improvements

• Entrance • Restaurant

• Lobby • Public Restrooms

• Front Desk Area • Conference

• Business Center • Meeting Rooms

• Bar

Common Area Improvements

• Napali Hospitality Group wil l seek disposition of the asset in 5 to 7 years.

• During the renovation and Property Improvement Plan (PIP) we wil l be growingEBITDA to increase debt yield for a conversion to securit ized long-term debtafter 24 months.

• Projected returns at disposition are an equity multiple of 1.96x, an estimatedoverall return of 98.5%, and a cash on cash average of >9% per year.

• Attractive entry cap allows for equity upside with further stabil ization.

Exit Strategy

Upon closing we wil l immediately begin to implement our business plan to include:

• Introducing new 3rd party management company

• Begin capital spending program to complete the property improvement plan (pip),

• Implement vertical group sales strategy,

• Rebrand & refresh the bar and restaurant offerings to increases profitabil ity,

• Implement comprehensive revenue maximization plan (RevMax)

Operational Improvements

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PROPERTY IMPROVEMENT PLAN (PIP)

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FINANCIAL ANALYSIS

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PROJECTED INVESTORRETURNS

The fo l lowing chart and graph represent project ion for

potent ia l income streams for an investor making a $100,000

equity contr ibut ion.

Target Investor Equity Multiple

1.96%Target Average Cash

on Cash Return

>9%Target Average Annual Return

16%

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INVESTOR RETURNS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 5

CoC Return (%) Cumulat ive CoC ($) Gain Upon Sale

Cash on Cash Return ($) $9,700 $10,280 $7,000 $7,000 $7,700 $8,260

Cash on Cash Return (%) 9.7% 10.28% 7.0% 7.0% 7.7% 8.26%

Equity upon exit ($) – – – – – $49,010

Equity upon exit (%) 0% 0% 0% 0% 0% 49.75%

Total Cumulative Return (%) 9.7% 20.0% 27.0% 34.0% 42.0% 98.5%

YEAR 1$100,000 YEAR 2 YEAR 4 YEAR 3* YEAR 5 YEAR 6

Total Cumulative Return ($) $9,700 $19.980 $26,980 $33,980 $41,680 $98,500

$100,000

$80,000

$60,000

$40,000

$20,000

$–

*Bridge to permanent securit ized debt year 3.

PROFORMAFINANCIALS GROWTH RATE DRIVERS

Rooms Transient 1.4% 1.0% 1% 1%

ADR Transient 1.5% 1.5% 1.50% 1.75%

Ancillary Revenue 1% 2% 1% 1%Labor 2% 2% 2% 2%Expenses 3% 3% 3% 2%Fixed Expenses 3% 3% 3% 2%

2020

2019 2020 2021 2022 2023

2021 2022 2023

Rooms Available Daily 243 243 243 243 Rooms Available Annually 88,695 88,938 88,695 88,695

Annual Rooms Occupied 73,262 82.6% 74,288 83.5% 74,993 84.6% 75,443 85.1% 75,858 85.5%Transient 73,262 74,288 74,993 75,443 75,858

Average Daily Rate $86.00 $87.29 $88.60 $89.93 $91.50

RevPAR 71.04 72.91 74.91 76.49 78.26

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24388,695

PROFORMAFINANCIALS HOLIDAY INN 6-YEAR PROFORMA

2019 2020 2021 2022 2023$ % PAR POR $ % PAR POR $ % PAR POR $ % PAR POR $ % PAR POR

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Rooms $6,300,532 91.0% $71.04 $86.00 $6,484,571 91.1% $72.91 $87.29 $6,644,367 91.0% $74.91 $88.60 $6,784,496 91.1% $76.49 $89.93 $6,941,193 91.1% $78.26 $91.50Transient 6,300,532 91.0% $71.04 86.00 6,484,571 91.1% $72.91 87.29 6,644,367 91.0% $74.91 88.60 6,784,496 91.1% $76.49 89.93 6,941,193 91.1% $78.26 91.50

Group - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Other Rooms - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -

Food & Beverage 583,898 8.4% $6.58 7.97 595,329 8.4% $6.69 8.01 613,004 8.4% $6.91 8.17 622,849 8.4% $7.02 8.26 632,538 8.3% $7.13 8.34 Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -

Miscellaneous 40,294 0.6% $0.45 0.55 41,083 0.6% $0.46 0.55 42,303 0.6% $0.48 0.56 42,982 0.6% $0.48 0.57 43,651 0.6% $0.49 0.58

Total Revenue 6,924,724 100.0% $78.07 94.52 7,120,983 100.0% $80.07 95.86 7,299,674 100.0% $82.30 97.34 7,450,328 100.0% $84.00 98.75 7,617,381 100.0% $85.88 100.42

Food & Beverage 128,458 22% $1.45 1.75 132,311 22.0% $1.49 1.81 136,281 22.0% $1.54 1.86 140,369 22.0% $1.58 1.92 143,176 22.0% $1.61 1.95 Retail - 0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 22.0% $0.00 - - 22.0% $0.00 -

Miscellaneous 8,865 22% $0.10 0.12 9,038 22.0% $0.10 0.12 9,307 22.0% $0.10 0.12 9,456 22.0% $0.11 0.13 9,603 22.0% $0.11 0.13 Total Cost of Sales 137,322 2.0% $1.55 1.87 141,350 2.0% $1.59 1.90 145,587 2.0% $1.64 1.94 149,825 2.0% $1.69 1.99 152,780 2.0% $1.72 2.01

Rooms 1,025,668 16.3% $11.56 14.00 1,046,181 16.1% $11.76 14.28 1,067,105 16.1% $12.03 14.57 1,088,447 16.0% $12.27 14.86 1,110,216 16.0% $12.52 15.15 Food & Beverage 164,840 28.2% $1.86 2.25 168,136 28.2% $1.89 2.30 171,499 28.0% $1.93 2.34 174,929 28.1% $1.97 2.39 178,428 28.2% $2.01 2.44

Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Miscellaneous 6,594 16.4% $0.07 0.09 6,725 16.4% $0.08 0.09 6,860 16.2% $0.08 0.09 6,997 16.3% $0.08 0.10 7,137 16.4% $0.08 0.10

Total Labor 1,197,101 17.3% $13.50 16.34 1,221,043 17.1% $13.73 16.44 1,245,464 17.1% $14.04 16.61 1,270,373 17.1% $14.32 16.84 1,295,781 17.0% $14.61 17.08

Rooms 971,454 15.4% $10.95 13.26 1,000,598 15.4% $11.25 13.66 1,030,616 15.5% $11.62 14.07 1,061,534 15.6% $11.97 14.49 1,082,765 15.6% $12.21 14.78 Food & Beverage 293,781 50.3% $3.31 4.01 302,594 50.8% $3.40 4.13 311,672 50.8% $3.51 4.25 321,022 51.5% $3.62 4.38 327,442 51.8% $3.69 4.47

Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Miscellaneous - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -

Total Opex 1,265,235 18.3% $14.27 17.27 1,303,192 18.3% $14.65 17.54 1,342,288 18.4% $15.13 17.90 1,382,556 18.6% $15.59 18.33 1,410,207 18.5% $15.90 18.59

Departmental Income 4,325,066 62.5% $48.76 59.04 4,455,398 62.6% $50.10 59.97 4,566,335 62.6% $51.48 60.89 4,647,573 62.4% $52.40 61.60 4,758,613 62.5% $53.65 62.73

A&G 484,731 7.0% $5.47 6.62 499,273 7.0% $5.61 6.72 514,251 7.0% $5.80 6.86 529,678 7.1% $5.97 7.02 540,272 7.1% $6.09 7.12 Sales & Marketing 380,860 5.5% $4.29 5.20 392,286 5.5% $4.41 5.28 404,054 5.5% $4.56 5.39 416,176 5.6% $4.69 5.52 424,499 5.6% $4.79 5.60

- 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Maintenance 373,935 5.4% $4.22 5.10 384,533 5.4% $4.32 5.18 394,182 5.4% $4.44 5.26 402,318 5.4% $4.54 5.33 411,339 5.4% $4.64 5.42

Franchise Fee 512,430 7.4% $5.78 6.99 526,953 7.4% $5.92 7.09 540,176 7.4% $6.09 7.20 551,324 7.4% $6.22 7.31 563,686 7.4% $6.36 7.43 Utilities 221,591 3.2% $2.50 3.02 228,239 3.2% $2.57 3.07 235,086 3.2% $2.65 3.13 242,139 3.3% $2.73 3.21 246,981 3.2% $2.78 3.26

Total Undistributed 1,973,546 28.5% $22.25 26.94 2,031,283 28.5% $22.84 27.34 2,087,749 28.6% $23.54 27.84 2,141,635 28.7% $24.15 28.39 2,186,777 28.7% $24.66 28.83

GOP 2,351,520 34.0% $26.51 32.10 2,424,115 34.0% $27.26 32.63 2,478,586 34.0% $27.95 33.05 2,505,938 33.6% $28.25 33.22 2,571,836 33.8% $29.00 33.90

Management Fees 189,016 3.0% $2.13 2.58 194,537 3.0% $2.19 2.62 199,331 3.0% $2.25 2.66 203,535 3.0% $2.29 2.70 208,236 3.0% $2.35 2.75

Income and Expense 2,162,504 31.2% $24.38 29.52 2,229,578 31.3% $25.07 30.01 2,279,255 31.2% $25.70 30.39 2,302,403 30.9% $25.96 30.52 2,363,600 31.0% $26.65 31.16

Property Taxes 336,738 4.9% $3.80 4.60 346,282 4.9% $3.89 4.66 354,971 4.9% $4.00 4.73 362,297 4.9% $4.08 4.80 370,421 4.9% $4.18 4.88 Insurance 80,000 1.2% $0.90 1.09 82,400 1.2% $0.93 1.11 84,872 1.2% $0.96 1.13 87,418 1.2% $0.99 1.16 89,167 1.2% $1.01 1.18

Other 5,500 0.1% $0.06 0.08 5,665 0.1% $0.06 0.08 5,835 0.1% $0.07 0.08 6,010 0.1% $0.07 0.08 6,130 0.1% $0.07 0.08 FFE Reserve 126,011 2.0% $1.42 1.72 142,420 2.0% $1.60 1.92 291,987 4.0% $3.29 3.89 298,013 4.0% $3.36 3.95 304,695 4.0% $3.44 4.02

Total 548,249 7.9% $6.18 7.48 576,766 8.1% $6.49 7.76 737,665 10.1% $8.32 9.84 753,738 10.1% $8.50 9.99 770,413 10.1% $8.69 10.16

Total Expenses 5,310,469 76.7% $59.87 72.49 5,468,171 76.8% $61.48 73.61 5,758,084 78.9% $64.92 76.78 5,901,663 79.2% $66.54 78.23 6,024,194 79.1% $67.92 79.41

NOI $1,614,255 23.3% $18.20 $22.03 $1,652,812 23.2% $18.58 $22.25 $1,541,590 21.1% $17.38 $20.56 $1,548,665 20.8% $17.46 $20.53 $1,593,188 20.9% $17.96 $21.00

Income Before Non-Operating

Information and Telecommunications

FINANCINGDETAILS

p g . 1 8

* Loan amount subject to change pr ior to c lose

FINANCINGDETAILS

Loan Program – Benef i t Street Debt Fund

Lender - Benef i t Street Partners

Interest Rate – L ibor + 425 bps

Interest Only Period - 24 Months

Loan Amount – ~$13,000,000

* Loan amount subject to change pr ior to c lose

Napal i Hospital i ty Group is p lacing new debt f rom Benef i t Street

Fund. The loan wi l l be non-recourse and 71% leverage and an

interest-only note dur ing performance improvement plan. Once

complete, we wi l l p lace permanent secur i t ized debt on the asset. The

underwri t ing depicted intent ional ly incorporates a rate increase to

assume further interest rate increases. To offset any potent ia l large

rate f luctuat ions we have purchased a th ird-party rate cap.

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SOURCES & USES STATEMENT

REHAB EXPENSE

$2,600,000 / 14.09%

WORKING CAPITAL

NEEDS$250 ,000 / 1 .36%

LEGAL & ACCOUNTING

$75,000 / 0 .41%

DUE DILIGENCE

$25,000 / 0 .14%

ACQUISITION FEES

$275,000 / 1 .49%

Description Amount Percentage

$13,605,750Debt financing raised 70.40%

Equity proceeds raised

13,000,000

5,450,000 29.60%

Proceeds available for investment $18,450,000 100.00%

Property purchase price 14,800,000 80.22%

Rehab Expense 2,600,000 14.09%

Working capital needs 250,000 1.36%

Legal & Accounting Expenses 75,000 0.41%

Loan Fees 247,000 1.34%

Due Diligence 25,000 0.14%

Acquisition fees 275,000 1.49%

Loan cap purchase 25,000 0.14%

Franchise fees 121,500 0.66%

Organization fees 31,500 0.17%

Total Application of Proceeds $18,450,000 100.00%

LOAN FEES

$247,000 / 1 .34%

ORGANIZATION

FEES

$31,500 / 0 .14%

SOURCESAND USES

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APPENDIX

p g . 2 5

PROPERTYAFFILIATION &MANAGEMENT

p g . 2 6

AFFILIATION

MANAGEMENT

The Hol iday Inn DFW Airport Area West is part of Intercont inental

Hotel Group ( IHG) , one of the wor ld’s leading hotel companies. I t is

home to some of the wor ld’s most wel l -known hotel brands,

including Regent Hotels & Resorts , InterCont inental ® Hotels &

Resorts , K impton ® Hotels & Restaurants, Hotel Indigo ®, EVEN ®

Hotels , HUALUXE ® Hotels and Resorts , Crowne Plaza ® Hotels &

Resorts , voco™ hotels , Hol iday Inn ®, Hol iday Inn Express ®, Hol iday

Inn Club Vacat ions ®, Hol iday Inn Resort ®, av id™ hotels , Staybr idge

Suites ® and Candlewood Suites ®.

IHG supports each property around the globe by balancing

regional leadership with local , personal ized serv ice. IHG has

regional off ices in major markets around the wor ld, including our

g lobal headquarters in Denham, England, our Americas off ice in

At lanta, Georgia, and regional off ices in Singapore and Shanghai .

The Hol iday Inn DFW Airport Area West wi l l be managed by Aimbridge Hospital i ty,

the nat ion’s largest independent hotel investment and management f i rm with a

proven track record for del iver ing super ior returns for some of the most prest ig ious

hotel owners and developers across the United States.

Aimbridge operates across a fu l l spectrum of property types including resorts ,

f ranchise- branded, independent luxury, bout ique, and l i festy le hotels . They are a

h ighly resourced company that offers an unr ivaled track record of creat ing and

maximiz ing asset value and are the preferred management company for a l l of the

major hospital i ty brands.

In addit ion to Intercont inental Hotel Group propert ies, Aimbridge manages and owns

approximately 800 propert ies for 12 nat ional brand aff i l iat ions such as

Marr iot/Starwood Hotels and Resorts , Hi l ton, Hyatt, Wyndham, Choice Hotels ,

Car lson, and propert ies as wel l as 67 sub-brands.

Aimbridge Hospital i ty is based in Dal las, Texas, with addit ional off ices in Chicago

and Puerto Rico.

ACQUISITIONTIMELINE

1

October 12, 2018Contract Effect ive Date

2 43

November 6, 2018Loan Appl icat ion Submitted

December 28, 2018Funding Complete

November 20, 2018PPM Scheduled for Release

3

January 8, 2018Project Close Date

1 2 43 5

p g . 2 7

PARTNERSHIPSTRUCTURE

Shareholder A

Shareholder B

Shareholder Z

Napali Hospitality One, LLC

Class A Shareholders;(80%)

EQUITY CLASSES

SINGLE PURPOSE ENTITYFOR PURCHASE

SHAREHOLDERS

Class B Shareholder;(20%)

Napal i Hospital i ty Group

Napal i Hospital i ty Group

Sawridge Capital

p g . 2 8

PROPERTIES UNDERMANAGEMENT

MONTERREY APARTMENTS105 UNITS • FT. WORTH, TX

SOCIAL HOUSE77 UNITS • NACOGDOCHES, TX

THE RESIDENCES AT STONEBROOK100 UNITS • FOREST PARK, GA

RESIDENCES AT TOWNE CROSSING113 UNITS • Fayetteville, GA

WESTWOOD APARTMENTS187 UNITS • Dallas, TX

ADIRA APARTMENTS120 UNITS • DALLAS, TX

RESIDENCES AT PARC STATION160 UNITS • JONESBORO, GA

THE RESIDENCES AT MOUNTAIN LAKE284 UNITS • STONE MOUNTAIN, GA

GLOBE ENERGY SERVICESKILGORE, TX

ABBEY COURT APARTMENT HOMES176 UNITS • BELMONT, NC

p g . 2 9

9 5 0 E . S T A T E H I G H W A Y 1 1 4 S U I T E 1 6 0 S O U T H L A K E , T X 7 6 0 9 2 • N A P A L I C A P . C O M

Tim Black

Tim@napal icap.com

608.216.6638

Thomas Black, MD

Thomas@napal icap.com

903.931.3555

Drew Eldr idge, DO

Drew@napal icap.com

405.213.4041

A whol ly-owned company of

NAPALI CAPITAL, LLC