PALM GROVE INN711 3RD AVE S, ST PETERSBURG FL

PROPERTY SUMMARY

• 70 ROOM HOTEL WITH BAR/RESTAURANT SPACE, A CONVENIENT STORE, A STORAGE BUILDING

• HALF OF MAIN BUILDING BUILT IN 1929, HALF BUILT IN 1960’S

• OPENED FOR BUSINESS AS HOTEL RITZ IN 1931.

• CONCRETE AND BLOCK/BREAK BUILDING ，ALL ROOMS AND COMMON AREA HAS FIRE SPRINKLER SYSTEM,

FIRE ALARM MONITOR SYSTEM

• ELEVATOR EXISTS AND NEED TO BE CERTIFIED FOR OPERATION

• OVER $275K CAPITAL IMPROVEMENT IN PAST 12 MONTHS

• 18 ROOMS UPDATED AND RUN AS HOTEL ROOM, 52 CURRENTLY WEEKLY EXTENDED STAY

• GREAT PROTENTIONAL FOR A FLAG OR BOUTIQUE HOTEL

IMPROVEMENT PLAN

• FIX UP AND BRING THE PROPERTY UP-TO-DATE

1. INSTALL CENTRAL AC OR MINI-SPLIT AC IN ALL ROOMS

2. CHANGE MOST WINDOWS

3. MODERNIZE EXISTING ELEVATOR

PROFORMA PROFIT & LOSS AFTER IMPROVEMENT

•Daily Average Rate $95 $150

Annual sales @100% Occupancy $2.43M $3.83M

Annual sales @80% Occupancy $1.94M $3.07M

Room rental NOI（at 35% sales） $0.68M $1.07M

Bar And Store Rent $0.08M $0.08M

Total Net Operating Income $0.76M $1.15M

St Pete Downtown Hotel Daily Rates in Feb. 2018

(Red boxes are sold out properties)

ST PETE DOWNTOWN HOTEL DAILY RATES IN JULY 2018

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St Petersburg Downtown Area Hotel Average Daily Rate over Whole Year

EXPEDIA ST PETE DOWNTOWN 2016,2017 SALES COMPARISONYOY SALES INCREASE WELL OVER 20%