INVESTMENT OVERVIEWCushman & Wakefield’s Global Hospitality Group has been exclusively retained to solicit offers to purchase the fee simple interest in the Fairfield Inn & Suites by Marriott Birmingham Bessemer (the “Property” or “Subject”), a 76-key hotel located in the Birmingham-Hoover MSA directly off Interstate 20 in Bessemer, AL. This offering represents a great opportunity to acquire a well located Marriott affiliated hotel in a rapidly growing market.

The Subject is situated in the Birmingham-Bessemer business corridor and benefits from a strong and improving set of business demand drivers, including the expansion of multiple Mercedes-Benz facilities, the Dollar General distribution center and the under construction 133 acre Amazon Fulfillment Center. A full renovation was completed in 2016 and brought the Property up to current brand standards, which in part resulted in a 13.2% YOY growth in RevPAR in 2017. The Property’s performance will continue to improve due to the expansion of existing demand drivers and new commercial developments.

Managed by ownership, the Property has consistently outperformed the competitive set in RevPAR and produced strong cash flow returns with a trailing 38% EBITDA margin. Buyers can further increase topline revenue by leveraging a management company’s centralized services including revenue management, and sales and marketing. Presently, ownership relies exclusively on Marriott’s sales and revenue management support.

Birmingham Bessemer

PROPERTY OVERVIEW

Address 4980 Academy Court, Bessemer, AL 35022

Opening / Renovation 2007 / 2016

Ownership Interest Fee Simple

Land Size 1.72 Acres (75,000 SF)

Gross Building Area 49,000 SF

Number of Stories 4

Parking Spaces 85

Foundation & Floors Poured Slab; Wood or Steel Stud Framed Exterior Walls

Franchise Expiration March 2027

Management Company Unencumbered (Owner Self-Managed)

Rooms 76 (34 King, 21 Queen/Queen, 21 Suites)

F&B Outlet 1 Dining Area Serving Complimentary Hot Breakfast

Meeting Space 1 Meeting Room of 900 SF

Additional AmenitiesIndoor Swimming Pool and Whirlpool, Fitness Room, Vending Area, Guest Laundry, Business Center

INVESTMENT HIGHLIGHTSROBUST DEMAND DRIVERSThe Property will continue to benefit from the on-going expansion and addition of industrial, technology, distribution and logistics facilities in the greater Bessemer market. For example: The Mercedes-Benz’ Vance plant, located within a 20-minute drive, currently employs more than 3,700 and supports more 10,000 jobs at suppliers and service providers in the region. In September 2017, Mercedes further announced a $1 billion EV production facility in Vance (now in development) and the development of its 800,000 SF Global Logistics Center and 1.3 million SF US After-Sales Hub. In August 2018, Amazon broke ground on the $325 million fulfillment center on a 133-acre site across the street from the Property. Once complete, the facility is expected to create as many as 3,000 jobs. Also announced in 2018, A U.S. Steel warehouse and distribution center will be built on a 104-acre site 5 miles from the Property. Incremental leisure demand is provided by popular destinations such as Alabama Splash Adventure (0.25 miles from the Property) and University of Alabama’s Bryant-Denny Football Stadium.

STRONG OPERATING PERFORMANCEIn the absence of in-house sales and revenue management, the Property still achieved a 4.2% YOY growth in YTD July 2018 occupancy and a 5.5% YOY growth in YTD July 2018 ADR. The Property’s YTD July 2018 RevPAR was approximately $10 higher than the competitive set. Meanwhile, the Property is delivering a 38% trailing EBITDA margin.

RECENTLY RENOVATED ASSETOwnership completed an extensive renovation in 2016, which fully upgraded the Property to current brand standards. Buyers have the opportunity to acquire a high quality hotel at a compelling investment basis with nominal CapEx requirement and the resulting displacement. Marriott also recently indicated that it was making optional certain 2021 PIP components allowing ownership to defer these to a later date.

REVENUE IMPROVEMENT OPPORTUNITIESBuyers can increase LNRAs and better manage transient business during high compression periods such as University of Alabama sporting events by leveraging a seasoned revenue management professional and a corporate sales and marketing team. It is also noteworthy that the 84-key Hampton Inn Birmingham Bessemer in the competitive set lost the Hilton franchise in August 2018. The Property should easily capture additional corporate demand picked up from the former Hampton Inn.

LEADING BRAND AFFILIATIONThe Hotel is currently under a franchise agreement with Marriott International, a leading global brand with worldwide recognition, a strong guest loyalty program, and a state-of-the-art centralized reservation system. As the only Marriott affiliated product in the market, the Property fully leverages the centralized reservation system and the upgraded Marriott Rewards Program, which is completely integrated with the Ritz-Carlton Rewards and Starwood Preferred Guest Program.

LIMITED NEW SUPPLYNo new hotel development has been announced in the area. The local hotel market would continue to improve with limited supply growth and expected demand influx created by the robust momentum in various demand drivers.

UNENCUMBERED BY MANAGEMENT AND DEBTThe Property is offered for sale unencumbered by management, allowing for significant upside potential and operational flexibility that should lead to strengthened room revenue and market penetration. The Property is offered unencumbered by debt so it can be efficiently financed to deliver attractive levered returns.

EXCLUSIVE AGENTS: CO-BROKER:

DANIEL B. MACDONNELL, CFASenior Managing Director & Securities PrincipalGlobal Hospitality GroupLic.# 01727502(310) 228-1420 Daniel.MacDonnell@cushwake.com

GEORGE QIAOAnalystGlobal Hospitality GroupLic.# 02046817(310) 228-1430George.Qiao2@cushwake.com

BILL PRADATPresidentCushman & Wakefield/EGS Commercial Real Estate(205) 314-5526BPradat@egsinc.com