4703 N Freeway Rd
Pueblo, CO 81008

Enclosed is an Executive Summary for the Ramada Inn Pueblo, CO. South Street is the Exclusive Financial Advisor for the Sponsor, Hotel Pueblo LLC, to sell the hotel. The offering price is $3.7M or $33,000 per key. The hotel is subject to an assumable SBA 7A loan funded in October 2017 with a fixed rate of 5.25% and balance of $2.76M which equals 73% LTPP. Property - The Ramada Inn Pueblo consists of two 2-story hotel buildings and one single story lobby / business center built in 1986 with 111 keys with an address of 4703 North Freeway Pueblo, Colorado 81008. This hotel has a host of amenities which include a Swimming Pool, Fitness Center, Business Center, Free Breakfast Lounge, Free HBO and Wifi, and attractive Meeting Space. The Ramada has excellent highway frontage along I-25 with new digital signage in 2018. Location - The Ramada hotel is ideally located right off Interstate 25 with ample highway frontage along I-25 at Eagleridge Boulevard. The property is within a retail corridor which includes Sam’s Club, Home Depot, a Walmart Supercenter, and there is a Starbucks and Cracker Barrel Restaurant right across the street. Pueblo is located 112 miles south of Denver with a population is 110,000. It is the primary city of the Pueblo–Canon City combined statistical area (CSA) totaling 208,000 people. Pueblo has a diverse economy and is one of the largest steel-producing cities in the U.S. It is known as the "Steel City". Upside Potential - The Sponsor purchased this property in March 2016 for $2.76M and has spent $635K on capital improvements. To date 58 rooms have been fully renovated, with another 13 rooms in process, bringing the total number of renovated rooms to 71 (64% of the total room count). YE 2018 NOI was $306K. Upon completion of the renovation work and the addition of a new cell antenna lease ($13,200/year with 2% annual increases and $1200/month for carrier add-ons), the stabilized NOI is expected to be approximately $500k. Additional upside is available by renovating the remaining 40 rooms, adding professional management (this is the only hotel owned by the Seller and they self-manage), and adding additional carriers to the cell phone antenna. In prior years, this hotel has generated as much as $600k in NOI. Metrics - The sale price of $3.7M ($33,000 per key) represents a cap rate of 10.8% on proforma income. This is a very attractive purchase price for a buyer at well below replacement cost, which is estimated at $120,000 per key. Demand Drivers – Ramada Pueblo hotel demand drivers include transient, negotiated and groups, as the hotel is conveniently located close to everything. Colorado State University’s Pueblo campus is nearby, drawing visiting students, faculty and staff for short and long-term stays. The large parking areas allow for ample truck and RV parking. CSU Pueblo sporting events happen year-round, drawing visiting teams and fans alike. Festivals, white water rafting and Lake Pueblo also draw a crowd. Water skiing and fishing are also favorite tourist activities in the region. The hotel is a short drive to ski areas like Pikes Peak and Royal Gorge, and the historic river walk is close by. Local events include tournaments at the Walking Stick Golf Course, the Rocky Mountain Nationals Street Rods Event, Pueblo Chile Festival, Classic Car Convention, and the Dog Show. Business travelers like this hotel because of the quality, service and value. Employees of Vestas, Excel Energy, Comanche and Pueblo Chemical Depot are some of the regular guests. The typical retail room rate is $59-$79 and the typical corporate rate is $49. Star Report – The December 2018 Star Report shows T12 ADR at $55.40, Occupancy at 55.68% and Revpar at $30.84. The Revpar Index of Ramada Inn Pueblo is 64.6%, based on a subset of 7 hotels with 608 keys, including the Clarion Inn and La Quinta Inn & Suites. The comp hotels range in size between 53 and 115 keys and were built between 1973 and 1998. There is ample upside for the Ramada Pueblo by adding professional management and marketing, combined with additional room renovations. Sale Comps – Recent sale comps in Pueblo include: Best Western (59 keys, $5.4M, $91k/key, May 2017), Comfort Inn (60 keys, $6.075M, $68k/key, July 2016), Clarion Inn (115 keys, $3.7M, $32k/key, Feb 2017), and the Quality Inn & Suites (62 keys, $4.2M, $68k/key, Nov 2017). The combined average price of these sales is $58,700 per key or "78% higher" than the offered price of The Ramada!! Franchise Agreement - The franchise agreement with Wyndham Hotels was signed in 2016 and has a 15-year term through 2031. The recent PIP was approved by Wyndham making the hotel in full compliance. Franchise fees are 4.5% of Gross Room Revenues and with marketing and other fees the total is around 11%. Capital Improvements - The current owner has completed $635,000 in renovations including 58 rooms with FF&E, lobby and breakfast areas, as well as many exterior capital improvements (e.g. parking lot upgrades, a new roof for Building One, and a new Marquee LED sign). An additional 15 rooms are currently being renovated by owner at an estimated cost of $5,000 per key. See attached OM for more details. The following Links provides additional details on the Ramada Inn Pueblo, including an Executive summary, Property Description, Historical P&L / 5-Year Proforma, Star Report, Photos, Growth Strategy, and Area Map. https://www.dropbox.com/sh/zkj3mroui8cqqoo/AAAU4SuCFIeguRpKnIgqtp0Ea?dl=0 Here is a link to the Wyndham Hotels site with the Ramada Inn Pueblo: https://www.wyndhamhotels.com/ramada/pueblo-colorado/ramada-pueblo/overview?CID=LC:RA::GGL:RIO:National:20092&iata=00065402 Please review the attached information and let us know if you would like to make a Purchase Offer. Additional information available upon request. Qualified Investors only.