PHILADELPHIA

NORTHEAST

PROPERTY SUMMARY
Address Opening Date Ownership Interest Hotel Management Franchise Rooms Food & Beverage Meeting & Function Space Additional Facilities 9461 Roosevelt Blvd., Philadelphia, PA 19114 1975 /2007 Fee Simple Richfield Hospitality (terminable upon sale) Starwood Hotels 190 Cobblestones Restaurant & The Northeast Philly Tap Room 5,600 square feet including the 2,555 square-foot Brandywine Ballroom 24-hour fitness center, indoor heated pool and fullservice business center

INVESTMENT OVERVIEW Cushman & Wakefields Global Hospitality Group has been exclusively retained to solicit offers to purchase the fee simple interest in the Four Points by Sheraton Philadelphia Northeast (the Property or Hotel), a recently renovated 190 guestroom Hotel, conveniently located along US-1/Roosevelt Boulevard and easily accessible to I-95, Pennsylvania and New Jersey Turnpikes in Philadelphia, Pennsylvania. Located proximate to some of the largest healthcare facilities in the country as well as several major colleges and universities, the Property benefits from a strong and improving set of diverse demand drivers. In 2014, the Hotels budgeted RevPAR and NOI is anticipated to grow 7.1%, and over 50% respectively. This top line growth and opportunity to decrease operational expenses and improve flow through, coupled with an exceptional per key basis, provides for a highly attractive investment opportunity. The Hotel is dominant among its immediate competitive market due to its superior location, relative strength of corporate transient and government demand, recent renovation and leading brand affiliation. These factors, along with the ability to capture new group business, has and will continue to allow the Property to drive occupancy and rate.

KEY INVESTMENT HIGHLIGHTS

COMPELLING INVESTMENT BASIS - This Offering presents an opportunity to acquire a renovated asset with exceptional access and visibility for well below replacement cost and historical trades in the market. Despite the suburban location, the submarket is relatively built-out and dense with limited availability of land and sites to build new hotels. EXCELLENT PRODUCT QUALITY - The Property has the best guestroom product in the market as a result of a $980,000 renovation that occurred in 2012. UNENCUMBERED MANAGEMENT STATUS - The Property is offered for sale unencumbered by management, allowing for upside potential and operational flexibility that should lead to improved RevPAR, Food & Beverage revenues and overall margin performance, particularly in the rooms expense department.

PHILADELPHIA

NORTHEAST

KEY INVESTMENT HIGHLIGHTS

ROBUST DEMAND DRIVERS - Demand for room nights in the Northeast Philadelphia submarket primarily derives from the healthcare industry, colleges and universities. The growing healthcare industry represents the top demand driver for the market and the Four Points Philadelphia Northeast is the best positioned property to capitalize on that growth, specifically as it relates to the Cancer Treatment Center of America, which is just six miles from the Property and generates 20,000 room nights annually in the market. Additionally, there are a number of colleges and universities in immediate drivable distance to the Property including Bryn Athyn, Penn State Abington, and Manor College. Incremental demand is also provided by the Northeast Philadelphia Airport and the Sesame Place theme park. HIGHER RATED DEMAND / MARGIN IMPROVEMENT OPPORTUNITY - Despite strong room demand, the Propertys Gross Operating Profit levels were only 23.7% in 2013. As such, there is an opportunity to dramatically increase profitability by growing ADR through a focus on a higher rated demand mix as well as improving profit margins. PHILADELPHIA ADDRESS - Located within the City of Philadelphia, the Hotel is able to receive Philadelphia prevailing Government per diem that is significantly higher than neighboring Bucks County where the competitive set is located. PROVEN HISTORICAL BENCHMARK - The Property achieved peak net operating income of $1.6 million in 2006. While the recent performance of the Property is below peak performance, there is significant support, given the renovation and improving market fundamentals, that with strong management in-place, the prior peak cash flows can be surpassed. LEADING BRAND AFFILIATION - The Hotel currently operates under a franchise agreement with Starwood Hotels, a leading global brand with worldwide recognition, a strong guest loyalty program, and a state-of-the-art centralized reservation system. As the only Starwood affiliated product in the market, the Property fully leverages the centralized reservation system and benefits greatly from the loyalty reward programs (Starwood Preferred Guest).

DANIEL B. MACDONNELL, CFA Managing Director & Securities Principal (310) 228-1420 Daniel.MacDonnell@cushwake.com CA Lic. #01727502

JAMES ESCARZEGA Managing Director (415) 773-3586 James.Escarzega@cushwake.com CA Lic. #01884475

STEPHEN P. MICHELS Director (310) 228-1430 Stephen.Michels@cushwake.com CA Lic. #01849990

MATTHEW K. RILEY Analyst (310) 228-1432 Matthew.Riley@cushwake.com CA Lic. #01861483

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