Maison Kesh 1634 N Capitol St (Washington, DC)

O F F E R I N G M E M O R A N D U M

1634 N CAPITOL ST NW

|

WASHINGTON, D.C.

---- Disclaimer ----

INVESTMENT SALES Dan Hawkins

Jake Pietras

Justin Storer

Fiorella Furlato

Managing Director 240.204.5139 dan.hawkins@berkadia.com Real Estate Analyst 301.202.3542 justin.storer@berkadia.com

FINANCING

Andrew Coleman

Senior Managing Director 240.204.5132 andrew.coleman@berkadia.com

Associate Director 410.940.9497 jake.pietras@berkadia.com

As the Maison Kesh Hotel is currently unfinished (offered at C of O), however will have many members of the same design team architect as The Hoxton, Chicago, all interior photos displayed throughout the Offering Memorandum are related to The Hoxton, Chicago and are merely used for a visual representation of how the soon-to-bedelivered Maison Kesh Hotel will look upon delivery, as there will be extremely like-type designs, aesthetics, and FF&E packages.

Real Estate Analyst 215.328.1311 fiorella.furlato@berkadia.com

Lindsey deButts

Senior Director 240.204.5131 lindsey.debutts@berkadia.com

Katelyn Reynolds

Senior Real Estate Analyst 213.399.3390 katelyn.reynolds@berkadia.com

The Hoxton, Chicago

BROKER OF RECORD Bobby Meehling #BR40000206

The Hoxton, Chicago

4

Executive Summary

10

Washington, DC Overview

14 Investment Highlights 28 Property Overview 38 Market Overview Trend 60 STR Set Overview

68 Financial Overview

EXECUTIVE SUMMARY

Bloomingdale District Stats

EXECUTIVE SUMMARY

THE OPPORTUNITY Berkadia Hotels & Hospitality has been exclusively retained in connection with the solicitation of offers to acquire the fee simple interest in the soon-to-bedelivered (Summer 2023), 97-room Maison Kesh Hotel (the ‘Hotel’ or ‘Asset’).

A luxury, independent/boutique lodging asset strategically positioned in the Historic Bloomingdale District of Northwest Washington, DC, the Hotel will be encompassed by a vibrant mix of Victorian-style architecture, colorful row houses, a rising cohort of middle-high class residents, and a growing, yet eclectic mix of small business, local restaurants, coffee shops, and boutiques, resulting in status as one of the Nation’s Capital’s most coveted neighborhoods according to the Washington Post and the location of the opening title sequence for Netflix’s highly viewed and award-winning political Thriller – House of Cards.

Within a

1.5 mi.

Radius

5 Hospitals | 1,885 Hospital Beds 4 Universities | +18,000 Students +$13.7 Billion of Projects In-Planning / Under Construction

47,970 Multi-Family Units | 5,266 Under Construction 6

MAISON KESH HOTEL | WASHINGTON, D.C.

Average Household Income ($153,731) is Approximately 95% Higher than the National Average

Designated as an Historic District in 2018 and is Listed on the DC Inventory of Historic Sites and in the National Register of Historic Places

Bloomingdale Median Home Price ($1,067,010) is

78.5% Higher than the

DC Average and and 94.2% Higher than the National Average

72% of Bloomingdale

Residents have an Associate, Bachelor, and/or Graduate Degree

(12% Higher than the DC Average)

Once delivered, the Hotel will be ideally situated just steps away from the confluence of Florida Avenue NW and North Capitol Street, less than a quarter-mile from one of NW Washington, DC’s primary eastern entry points which serves nearly 50,000 vehicles per day – New York Avenue. Moreover, with numerous Metrobus routes throughout the neighborhood, proximity to Union Station (+100,000 daily users | $10 billion potential expansion), and a location bounded between the Shaw-Howard University Metro station on the Green and Yellow lines, in addition to the Rhode Island Avenue-Brentwood station on the Red Line, the Asset’s multi-modal location will easily connect guests to NoMa, Union Market, Mt. Vernon, the 2.3 million SF Walter E. Convention Center, and all of downtown Washington, DC which attracted approximately 20 million visitors in 2022 (24.6 million in 2019). Moreover, while 2022 visitation represents a +6% YoY increase, Washington DC is highly anticipated to attract even more visitors in 2023, as business/corporate travel continues to rebound in tandem with a continued leisure boom and international ‘revenge travel,’ specifically stemming from China.

U.S. Hotels Ready for Revenge Travel - Hotel Management Click for additional information

At the Asset level, offered unencumbered of brand and management, a new owner will be able to implement an operator of their choosing along with a customized business plan which leverages the Hotel’s brand-new, boutique product offering in conjunction with a highly curated, heavily positioned F&B experience in a rapidly growing residential enclave to drive outsized top-line gains and an impressive market penetration upon stabilization.

Furthermore, a new owner will benefit from broad optionality to affiliate with one of Marriott, Hilton, Hyatt, or IHG's premier ‘soft brands’ and their respective distribution systems at a minimal incremental cost to further enhance the Asset’s anticipated market capture. When paired with the brands’ desire to increase their footprint in a nationally recognized top 25 US lodging market, there remains the possibility that a major brand may provide substantial ‘key money’ to prospective buyers, resulting in more attractive returns for a new owner.

BERKADIA HOTELS & HOSPITALITY

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1634 North Capitol Street NW | Washington, D.C. MANAGEMENT Modus Hotels (Unencumbered) REAL PROPERTY ID 3101-0118 EVENT SPACE 1,120 SF FOOD & BEVERAGE On-Site Restaurant & Lounge (Ground Floor w/ Patio), Rooftop Bar, Sundry/Convenience Store AMENITIES Modern Fitness Center, Outdoor Courtyard Complimentary High-Speed Wi-Fi, Digital Key PARKING 3 Spaces On-Site; Valet

8

BUILDING AREA 37,330 SF

LAND AREA .27 Acres (11,700 SF)

TENURE Fee Simple

LABOR Non-Union

MAISON KESH HOTEL | WASHINGTON, D.C.

5

STORIES

Summer

2023

ANTICIPATED OPEN DATE

97

GUESTROOMS

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY

9

WASHINGTON, DC OVERVIEW

(Projected)

2 0 2 2 P O P U L AT I O N

BY THE NUMBERS

6.6M

6.3M

WASHINGTON, DC

METRO

Construction & Development

Population & Demographics

EXECUTIVE SUMMARY

2 0 2 7 P O P U L AT I O N

4.1% INCREASE

(Forecasted)

2.3M

2.4M

T O TA L H O U S E H O L D S

2027 HOUSEHOLDS

2.7 PERSONS PER HOUSEHOLD | 4.1% INCRE A SE

(Forecasted)

109K

MEDIAN INCOME

2027 MEDIAN INCOME

120K

$

$

NATIONAL 2.5B AMAZON’S LANDING HQ IN ARLINGTON

$

UNION STATION $ RENOVATION & EXPANSION 10B BURNHAM PLACE $3B CAPITAL CROSSING $ DEVELOPMENT 1.3B THE WHARF PHASE II $ OVERHAUL 1.1B VIRGINIA TECH INNOVATION $ CAMPUS – POTOMAC YARDS 1B REDEVELOPMENT OF FORMER $ FANNIE MAE HQ CAMPUS

640M

10.8% INCRE A SE

Government

MEDIAN AGE

TOTAL SQ. MILES

PEOPLE PER SQ. MILE

39 6,246.9 1,010.2 COST OF LIVING SCORE: 151.2 NATIONAL AVERAGE: 100.0

Infrastructure

45.3M PASSENGERS (2022)

12

MAISON KESH HOTEL | WASHINGTON, D.C.

714,700 JOBS SUPPORTED

22% OF THE

WORKFORCE

PER DIEMS:

257

$

LODGING

79

$

MEAL / INCIDENTAL

Metro System

297M

Annual Passengers (Rail & Bus)

Amtrak

+5M

Annual Passengers (Union Station / DC)

Business

Visitors & Tourism

M A J O R C O R P O R AT E EMPLOYERS

A N N U A L V I S I T O R S 2 019

24.6M

DOMESTIC

22.8M INDUSTRY BRE AKDOWN

PROFESSIONAL & BUSINESS SERVICES 24% GOVERNMENT 21% EDUCATION & HEALTH SERVICES 13%

LODGING 35.5% FOOD & BEVERAGE 30.3% ENTERTAINMENT 14.9% SHOPPING 11.4% TRANSPORTATION 7.9%

OVERSEAS

1.8M VISITOR SPENDING BREAKDOWN

$

8.2B

TRADE, TRANSPORTATION, & UTILITIES 12% LEISURE & HOSPITALITY 9% OTHER SERVICES 6%

L E I S U R E & H O S P I TA L I T Y JOBS SUPPORTED

MINING, LOGGING, & CONSTRUCTION 5%

285,900

FINANCIAL ACTIVITIES 5% INFORMATION 2% MANUFACTURING 2%

TOP EMPLOYERS 14,140

18,000

13,900

14,970

12,480

14,840

12,200

Medstar Health

University of Maryland

Inova Health System

Booz Allen Hamilton, Inc.

Deloitte

11,420

Albertsons Companies Inc. (Safeway)

11,400

Amazon Inc.

Verizon Communications Inc.

Marriott International Inc.

General Dynamics Corp.

OF F ICE SPACE WA SHINGTON, DC

170M SF

@15.8% Vacancy

1.4M SF

Under Construction

DC METRO

520M SF

@ 15.7% Vacancy

7.3M

Under Construction

Education +280 DEGREES OFFERED

18,210

UNIVERSIT Y OF MARYL AND

TOP 100 INSTITUTION

+290K STUDENTS

GEORGETOWN UNIVERSIT Y

TOP 20

HIGHER LEARNING INSTITUTION

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS

1 Luxury Boutique Hotel Offered at Certificate of Occupancy (Summer 2023 Opening) in One of the Nation’s Preeminent Lodging Markets Anticipated to deliver in Summer 2023, the 37,330 SF Maison Kesh Hotel - a historic repositioned firehouse plus new construction - will provide a new owner with the rare opportunity to acquire a brand-new, luxury / boutique lodging asset at Certificate of Occupancy within a perennial Top 25 US Metropolitan Lodging Market which benefits from high barriers to entry – Washington DC. Boasting highly customized facilities and a tailored amenity base, sophisticated visual finishes, and a distinctive product offering upon completion, the Hotel is anticipated to ramp swiftly to stabilization with outstanding top and bottom-line performance, providing a new owner with an institutional-grade hotel that will deliver inherent value to a new owner throughout their hold period.

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MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY

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INVESTMENT HIGHLIGHTS

2

Substantial Ancillary Revenues Stemming from a Highly Curated Food & Beverage Experience Enhanced with a Panoramic Rooftop Lounge & Impressive Local Demographics The Maison Kesh will feature a contemporary and highly curated, full-service restaurant and bar with more than 200 seats on the ground floor of the Hotel. Moreover, guests’ food and beverage experience will be augmented by an eclectic atmosphere with floor-to-ceiling glass windows and additional seating on an adjacent outdoor patio. When coupled with a sought-after, +120-seat rooftop bar encompassed by glass hedging on the fifth floor of the Hotel, guests and neighborhood residents alike will enjoy unobstructed, 360-degree, panoramic views of the Capitol Dome and all of Washington, DC throughout all seasons of the year.

When considering the neighborhood’s impressive and rapidly growing demographics, in addition to proximity to a multitude of local Universities, a new owner is expected to drive approximately $206 in F&B POR at stabilization, significantly enhancing top-line performance for the Hotel while adding revenue diversification.

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MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

+200-Seat Ground-Floor Restaurant +120-Seat Rooftop Bar & Lounge Berkadia Anticipates the Hotel to Stabilize with a $206 F&B POR Bloomingdale Average Household Income ($153,731) is 95% Higher than the National Average

47,970 Multi-Family Units

(5,266 Under Construction) within a 1.5-Mile Radius

+18,400 Students (4 Universities) within a 2-Mile Radius

The Hoxton, Chicago

Berkadia Food Projections Berkadia Food&&Beverage Beverage Projections

REVENUES (M$)

$4.0

$4.8

27.5%

$5.8 30.0%

$5.4

30.0%

$6.0

$6.0

20.0% 15.0%

$3.0 $2.0 $1.0 $0.0

$1.2

$1.7

$1.5

$1.8

$1.7

$1.5

$1.8

$1.8

35.0%

25.0%30.0%

$5.9

$5.8

$5.4

$5.9

30.0%

10.0% 5.0%

$1.8

NOI MARGIN

25.0%

$6.0 $5.0

30.0%

27.5% Berkadia Food & Beverage Projections

$7.0

.0%

$1.2

35.0% 30.0%

30.0%

30.0% 25.0% 20.0% 15.0%

NOI MARGIN

$8.0

10.0% 5.0%

2024 2025

2025

2026

2026

F&B Revenue ($M) F&B Revenue ($M) F&B NOI ($M)

2027

2027

2028

F&B NOI NOI($M) Margi n

0.0% 2028

0.0%

BERKADIA HOTELS & HOSPITALITY

19 The Hoxton, Chicago

INVESTMENT HIGHLIGHTS

$7.0 Projections Berkadia Financial Berkadia Financial Projections Berkadia Financial Projections $5.0

$10.6 $10.6 19.3%

$12.0 22.6% $12.0 22.6%

19.3%

$2.0 $2.0 2024 2024

$2.7 $2.7 2025 2025

20

$13.4 25.0% $13.4 $2.0 25.0%

$13.6 $13.6 $2.7

25.0% 25.0%

$1.0 -$1.0

$3.3 $3.3

2024

2025

$3.3 $3.3

Revenue ($M)

$3.4 $3.4

30.0% 30.0%$3.3

NOI ($M) NOI ($M)

2027 2027

2028 2028

20.0% 20.0% 2026 15.0% 15.0%NOI ($M) 10.0% 10.0%

0.0% 0.0%

NOI Margin NOI Margin

Optionality to Affiliate with an Industry-Leading Brand or ‘Soft’ Brand While a new owner will have the optionality to operate the future Hotel as an independent/boutique lodging asset, offered unencumbered of brand, a potential buyer will have the ability to affiliate with one of the industry’s leading brands, inclusive of their ‘soft’ brands, such as Marriott, Hilton, Hyatt, and IHG and their respective distribution systems to maximize top-line performance. Furthermore, with a desirable and rapidly growing location in the nation’s Capital and the brands’ desire to increase their respective footprints in the submarket, there remains the possibility that a major brand may provide substantial ‘key money’ to prospective buyers, resulting in more attractive returns for a new owner.

MAISON KESH HOTEL | WASHINGTON, D.C.

$3.3

25.0% 25.0%

5.0% 5.0% 2026 2026

Revenue ($M) Revenue ($M)

4

$13.0 25.0% $13.0 $3.0 25.0%

NOI NOIMARGIN MARGIN

$15.0 $15.0 $13.0 $13.0 $11.0 $11.0 $9.0 $9.0 $7.0 $7.0 $5.0 $5.0 $3.0 $3.0 $1.0 $1.0 -$1.0 -$1.0

REVENUES (M$)

Offered unencumbered of management and upon delivery of the luxury boutique Hotel, a new owner will have the ability to implement an operator of their choosing and customized business plan which leverages the Financial Projections Hotel’s brand-new, sophisticated product offering and unique amenity base to position theBerkadia Hotel in the top-tier of the $15.0 competitive set once stabilized. Moreover, with an efficiently programmed building layout – only 1,120 SF of$13.0 meeting space $13.4 25.0 25.0% $13.0 and no pool – and a non-unionized workforce, potential buyers will be able to staff the $12.0 hotel22.6% according to their customized $10.6 $11.0 19.3% operating model, providing margin upside and the ability to drive profitability, resulting in strong cash flow and attractive $9.0 exit capitalization opportunities.

REVENUES REVENUES(M$) (M$)

3

Clean Offering Unencumbered of Management and with a Non-Unionized Workforce

2027 NOI Margin

5 Highly-Accessible, Multi-Modal Location within One of Washington, DC’s Fastest Growing Neighborhoods

Upon delivery, the Maison Kesh Hotel will boast a highly visible, easily-accessible, multi-modal location with prime frontage in the rapidly-growing Bloomington neighborhood of Washington, DC. Just a block north of the confluence of North Capitol Street and Florida Avenue – approximately a quarter-mile from New York Avenue – hotel guests will be provided with walkability to some of Bloomington and NoMa’s most frequented demand generators and amenities. Additionally, within a mile of several Metro bus stops, the Noma-Gallaudet Metro rail station (+4,000 daily riders), and Union Station which is currently reviewing a potential $10 billion expansion, the Hotel’s dynamic location will provide guests with seamless access throughout all of Washington DC and the greater Mid-Atlantic region. Lastly, the Hotel will be situated approximately a 15-minute drive from Reagan National Airport (DCA), allowing guests to easily access one of the region’s primary transportation hubs that served a record 23.9 million passengers in 2022.

BERKADIA HOTELS & HOSPITALITY

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INVESTMENT HIGHLIGHTS

6

Centered Among a Robust Mix of Diversified Demand Channels

CORPORATE OPERATIONS

MEDICAL

• 17 Fortune 500 HQ’s in Washington, DC

• MedStar Washington Hospital Center (926 Beds)

• Notable Proximate Companies (Bank of America,

• Children’s National Hospital (328 Beds)

Wells Fargo, Wolfram Mathematica, Advantage Financial)

• Howard University Hospital (300 Beds)

• 18.4M SF of Office Space within a 1-Mile Radius

• Washington DC VA Medical Center (194 Beds)

(224K Under Construction)

• MedStar National Rehabilitation Hospital (137 Beds)

• 2.3M SF Walter E. Washington Convention Center

HIGHER EDUCATION INSTITUTIONS

ENTERTAINMENT & LEISURE

• Howard University (9,689 Students)

• Union Market (+55 Vendors and Retailers

• Trinity Washington University (1,800 Students)

+15,000 Weekly Visitors)

• Gallaudet University (1,558 Students)

• Audi Field (20,000 Seats)

• Catholic University of America (5,366 Students)

• Nationals Park (41,339 Seats) • Capital One Arena (20,356 Seats)

GOVERNMENT • Washington DC is Home to all 3 Branches of the US Government • 714,700 Government Jobs Supported in Washington DC (22% of the Regional Work Force) • New SEC Headquarters (0.25-Miles Away | 2025 Anticipated Delivery)

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MAISON KESH HOTEL | WASHINGTON, D.C.

• National Mall (+25M Annual Visitors) • Smithsonian Institutions (14.9M Visitors as of July 2022)

BERKADIA HOTELS & HOSPITALITY

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INVESTMENT HIGHLIGHTS

7

Primed to Capitalize on Over $13B of Local Development

1. Union Station Renovation & Expansion

4. 7 New York Avenue

8. Financial Plaza (New SEC Headquarters)

Cost: $10 Billion

Cost: Not Disclosed

Cost: Not Disclosed

Description: The $10 billion plans to modernize the

Description: A redevelopment of the former Covenant

Description:

nation’s second-busiest rail hub include a major recon-

House location, this new project will deliver 116 residential

signed a 1.23 million SF lease with Douglas Development

figuration of the bus terminal to align with a new train

units primarily consisting of micro units.

Corporation for a new Securities and Exchange

hall, adding wider rail platforms, a new bus terminal and

The

General

Services

Administration

Commission headquarters to be constructed which will

updated concourses lined with shops and restaurants,

5. 1 Florida Ave

house approximately 4,500 SEC employees. The triangular

and improved accessibility to Metrorail, buses, taxis,

Cost: Not Disclosed

site, bounded by New York Avenue, North Capitol Street

ride-hailing services, streetcars and parking.

Description: Aria Development is replacing a former

and First Street NE, can also accommodate another

Exxon Mobile gas station at the corner of North Capitol

600,000 square feet of office or 600 residential units.

2. Burnham Place

Street and Florida Avenue, bringing a new 13-story-plus-

Cost: $3 Billion

penthouse building with 388 units and a swimming pool to

Description: Burnham Place, a proposed 3 million SF

the site.

development, will be built above Union Station’s rail yard,

9. District of Columbia Housing Authority Development Cost: Not Disclosed

providing direct access to a newly expanded and improved

6. The 202

station facility. The development will feature a mix of 1.5

Cost: Not Disclosed (developer received a $69.4M loan)

an estimated 1,200 apartments and is slated to include

million SF of first-class office space, over 1,300 residential

Description: Located in the NoMa neighborhood and

a minimum of 244 affordable units, at least half of which

units, 100,000 SF of retail space, and hotel space, as well

adjacent to the Union Market district, the 202 will deliver a

would be deeply affordable for residents making 30

as parks and plazas.

16-story high-rise apartment building with 254 units and

percent of the median family income and below.

Description: The multi-phased development will include

3,800 square feet of retail. The building will include a mix of

3. McMillan Sand Filtration Site

studio, one-bedroom, and two-bedroom units. Residents

10. Lacebark Alley

Cost: $720 Million

will enjoy a rooftop club room, pet facilities, fitness center,

Cost: Not Disclosed

Description: The $720 million, 25-acre redevelopment

and shared workspaces.

Description: Lacebark Alley will consist of a new

of the former McMillan Reservoir Sand Filtration Site

three-building complex comprising of mixed-use space

includes 860,000 SF of medical office, 467 apartments,

7. Capitol Point North

including 220 residential apartments, 366,000 SF of class

a 52,000 SF supermarket, 146 townhomes and a central

Cost: Not Disclosed

A office space, 53,000 SF of on-site retail, and a 9,000 SF

park and community center.

Description: JBG Smith has submitted plans for a +700,000

art centric plaza.

square foot mixed-use development on the 1.5-acre site at 55 and 75 New York Avenue. The property is currently home to a McDonald’s and a three-story office building.

The development would include 805 residential units along

24

MAISON KESH HOTEL | WASHINGTON, D.C.

with over 30,000 square feet of retail and restaurant space as well as a penthouse-level restaurant/bar.

BERKADIA HOTELS & HOSPITALITY

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INVESTMENT HIGHLIGHTS

Impressive Top-Line Trajectory (+107% Y-o-Y RevPAR Growth) with Further Recovery Upside

8

As displayed in the chart below, year end 2022 RevPAR ($128.38) for the proposed competitive set is approximately 85% recovered when compared to year end 2019 benchmarks ($150.80), representing an impressive 107.1% growth rate when compared to the year end 2021 period. A new owner will be able to leverage these tailwinds in conjunction with a brandnew, luxury/boutique product offering, prime location within one of nation’s capital’s fastest-growing neighborhoods, and multifaceted growth via a returning office/government workforce, expanding convention calendar, anticipated ‘revenge’ travel from China, and multi-billion-dollar construction pipeline to achieve outsized gains in top-line performance as the Hotel stabilizes in the submarket.

STR Trend Report

Berkadia's Comp Set Projections

2019

2020

2021

2022

Delta (Y-o-Y)

2023

2024

2025

2026

2027

2028

2029

Occupancy

79.7%

35.6%

52.0%

70.5%

35.6%

74.0%

77.0%

80.0%

80.0%

80.0%

80.0%

80.0%

ADR

$189.21

$125.83

$119.14

$182.03

52.8%

$190.22

$197.83

$204.76

$210.90

$217.23

$223.74

$230.45

RevPAR

$150.80

$44.81

$61.98

$128.38

107.1%

$140.76

$152.33

$163.80

$168.72

$173.78

$178.99

$184.36

• A complete return of Chinese travelers to the United States to 2019 levels (2.83M visitors | $33.5B in visitor spending) is anticipated by the second quarter of 2023 – hotel AVE • On February 1, 2023, the House of Representatives passed the ‘SHOW UP Act of 2023’ – a bill aimed at rolling back pandemic-era telework policies – which would “require federal agencies to reinstate their pre-pandemic telework policies and require any expansion of telework to be certified by the Office of Personnel Management (OPM).”

– Social Security Legislative Bulletin • CoStar anticipates Washington, DC RevPAR in 2024 to exceed 2019 levels by 9% - a new owner's first fiscal year of operations

26

MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY The Hoxton, 27 Chicago

PROPERTY OVERVIEW

The Hoxton, Chicago

PROPERTY OVERVIEW

Guestroom Breakdown UNIT MIX

8 7 Kings 1 0 Queen / Queens 9 7 Total 30

MAISON KESH HOTEL | WASHINGTON, D.C.

The Asset will boast two premium, two-story guestrooms with spiral staircases.

Upon the Hotel's anticipated delivery in Summer 2023, the Maison Kesh will boast the most modern and innovative product offering in the submarket, with 97 state-of-the-art guest rooms available, ranging from intimate 111 SF rooms to more spacious quarters in excess of 300 SF. Featuring tastefully designed and highly-customized spaces, the modern, yet minimalist guestrooms will be equipped with plush bedding, luxury duvet covers, cloudlike pillows, nightstands, fashionable decor, compact 'hanging' desks, spanning flat screen TV's, a mini-bar, and much more.

The Hoxton, Chicago

The Hotel will feature high-end Waterworks fixtures, fittings, and accessories in the bathrooms.

The Hoxton, Chicago

The Hotel will also feature well-appointed bathrooms with stand-up showers, a large, well-lit vanity, marble countertops with ample storage underneath, fluffy white towels, and deluxe bath and body amenities.

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY

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PROPERTY OVERVIEW

Food & Beverage The Hoxton, Chicago

Upon entering the Hotel, guests and visitors alike will be welcomed by a +200-seat, full-service restaurant with wooden flooring, floor-to-ceiling glass windows, and an oversized open kitchen on the ground floor of the old fire house, offering an authentic aesthetic that can't be simply designed, but rather honed and built upon for a unique dining experience which is hinged upon a tasteful, three-meal -a-day menu.

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MAISON KESH HOTEL | WASHINGTON, D.C.

Moreover, featuring a fifth floor rooftop bar (+120 seats) encompassed by glass hedging and offering panoramic views of the nation's capital (including unobstructed views of the Capitol Dome), the Hotel will offer a unique epicurean experience and is highly anticipated to serve as a local 'hotspot' for nearby residents.

The Hoxton, Chicago

The Hoxton, Chicago

The Hotel is currently undergoing negotiations with H2 Collective (Hilton Brothers) - a DC-based hospitality group behind some of the most popular and renowned food and beverage venues in the Washington, DC area.

The Capitol

BERKADIA HOTELS & HOSPITALITY

33

The Hoxton, Chicago

PROPERTY OVERVIEW

Meeting & Event Space The Maison Kesh will offer approximately 1,120 SF of modern meeting space spread throughout a myriad of event rooms, in addition to a communal courtyard area. Furthermore, the Hotel will feature high-speed HSIA connections, state-ofthe-art audio-visual equipment, and catering services, among other advanced technologies/ equipment, allowing the Asset to accommodate small to mid-sized business meetings, training sessions, birthday parties, and a wide range of other social, educational, governmental, and corporate events.

34

MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY

The Hoxton, Chicago

35

PROPERTY OVERVIEW

Property Tax Summary Commercial properties in Washington, DC undergo a general reassessment annually, in which the income approach is the primary valuation methodology used. To determine real property taxes, the millage rate is applied to 100% of the assessed value.

Property ID

Land

Improvements

2023 Assessed Value

3101-0118

$4,391,830

$0

$4,391,830

*The values displayed above solely represent the property as it currently stands and do not yet account for a completely delivered building. See the ‘Property & Other Taxes’ line-item in the Pro Forma for an estimate of future annual tax payments which reflect a fully completed Hotel property.

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MAISON KESH HOTEL | WASHINGTON, D.C.

Building & Parking Details Construction Structural Frame

Stick on podium

Foundation

Poured concrete slab

Floors

Engineered wood

Exterior Walls & Façade

Masonry and stucco

Roof

Flat deck roof with waterpro of membrane cover

Windows

Thermal windows in aluminum frames

Doors

Glass, wood and metal

Mechanical Heating/ Cooling

Individual VTAC units in guestrooms, central system in public areas

Elevators

Two (2) passenger elevators; two (2) material lifts

Fire Protection

100 percent sprinklered

Security

Exterior and interior monitors

Other Floor Covering Carpet, tile and wood Walls

Painted drywall & wall vinyl

Ceiling

Drywall & acoustical tiles

Lighting

Fluorescent & incandescent BERKADIA HOTELS & HOSPITALITY

37

MARKET OVERVIEW

MARKET OVERVIEW

Corporate

The local downtown Washington, DC market features numerous high-profile and Fortune 500 offices spread across high-growth, essential, and prominent industry clusters including aerospace and defense, technology, healthcare, real estate, legal, public relations, engineering, financial services, and government, among many others. The city’s renowned urban core and robust office footprint is well-complimented by the city’s 170 million SF of office space (1.4M SF under construction).

17

FORTUNE 500 HQ’S

40

MAISON KESH HOTEL | WASHINGTON, D.C.

170M

SF OF OFFICE SPACE

Located in the heart of Washington, DC and boasting 2.3 million SF of total space, the Walter E. Washington Convention Center is among the foremost venues along the East Coast for a wide range of events from international policy conferences and industry conventions to pop-culture festivals, black-tie fundraisers, and even presidential inaugural balls, uniting locals and visitors from around the world to experience the best of the nation’s capital. The center is also noted for its extensive permanent collection of contemporary art, the largest of any convention center in the United States and one of the largest public art collections in Washington outside of a museum.

37

2.3M

EVENTS ON THE BOOKS (2023)

TOTAL SF

703K

SF OF EXHIBIT SPACE

52K

SF BALLROOM

77

INDIVIDUAL MEETING ROOMS

5

EXHIBIT HALLS

BERKADIA HOTELS & HOSPITALITY

41

MARKET OVERVIEW

Government 714,700 JOBS SUPPORTED

22

%

OF THE REGIONAL WORK FORCE

42

MAISON KESH HOTEL | WASHINGTON, D.C.

Metro DC is home to the three branches of the US government and is anchored by the White House and United States Capitol in the city’s urban core, providing thousands of essential employees for the hospitality industry to capitalize on during a year-round basis. Federal, state, and local institutions in this sector make up the second-largest industry in Greater DC, employing approximately 714,700 residents metro-wide and accounting for more than 22% of the regional workforce.

Some of the most prominent federal agencies within the region include the Internal Revenue Service, US Department of Agriculture, US Department of Energy, and the US Census Bureau, among others. As a result of the significant footprint of high-profile government organizations and their associated per diem rates, the hotel sector often enjoys stability during times of economic volatility due to a higher ADR floor.

BERKADIA HOTELS & HOSPITALITY

43

MARKET OVERVIEW

Higher Education

One of the country’s preeminent research institutions founded in 1867, Howard University is a private, federally-chartered, historically black university and the only HBCU to be ranked among the top 100 Best Colleges by U.S. News & World Report. The 256-acre campus, often referred to as ‘The Mecca’, is also home to several Historic landmarks, such as Andrew Rankin Memorial Chapel, Frederick Douglass Memorial Hall, and the Founders Library.

• 256-Acre Campus • 9,689 Students • +1,200 Faculty Members • 13 Schools & Colleges • +140 Academic Programs Offered • $1.5B Annual Economic Impact 44

MAISON KESH HOTEL | WASHINGTON, D.C.

Trinity Washington University is a private Catholic university offering a comprehensive education with five schools. The university enrolls more than 1,800 students in its undergraduate and graduate programs in the College of Arts and Sciences, School of Nursing and Health Professions, School of Education, School of Business and Graduate Studies and School of Professional Studies. Trinity enrolls more District of Columbia residents than any other private university in the nation, with more than half of Trinity’s students being residents of Washington, DC. The ‘Trinity Tigers’ compete at the Division III level, competing in basketball, soccer, softball, tennis, and volleyball.

• 26-Acre Campus • 1,800 Students • 5 Sports Teams

Gallaudet University Gallaudet University is a private federally chartered research university in Washington, DC and a global leader providing higher-education for the deaf and hard of hearing. Gallaudet competes in 16 Division III intercollegiate varsity sports.

• 99-Acre Campus • 1,558 Students • +690 Faculty Members • +40 Undergraduate Programs • +25 Graduate Degree Programs • $232M Endowment

Catholic University of America The Catholic University of America (CUA) is a private Roman Catholic research university in Washington, DC. A pontifical university of the Catholic Church, it is the only institution of higher education founded by U.S. Catholic bishops. Established in 1887 as a graduate and research center following approval by Pope Leo XIII, the university began offering undergraduate education in 1904.

The CUA Cardinals compete in 25 Division III sports.

• 176-Acre Campus • 5,366 Students • 793 Faculty Members • 250+ Academic Programs BERKADIA HOTELS & HOSPITALITY

45

MARKET OVERVIEW

Medical

MedStar Washington Hospital Center is the largest and busiest hospital in Washington, DC, serving as the central hub for the region’s most advanced medical care. The hospital is ranked as one of the nation’s top 50 hospitals for cardiology and heart surgery.

• 926 Beds • +6,100 Total Jobs Supported • +400,000 Annual Patients

Opened in 1870, Children’s National was one of the first children’s hospitals in the U.S. and is the only exclusive provider of pediatric care in the Washington, DC metro area. The hospital provides comprehensive pediatric specialties and subspecialties to infants, children, teens, and young adults aged 0 – 21 throughout the region and features an ACS verified level 1 pediatric trauma center, the only one in the District of Columbia.

• 328 Beds • +6,000 Total Jobs Supported • Ranked #1 in Newborn Care 46

MAISON KESH HOTEL | WASHINGTON, D.C.

U.S. News & World Report (2022)

Howard University Hospital (HUH) is a private, nonprofit institution in Washington, DC and an affiliate of Howard University. HUH is the nation's only teaching hospital on the campus of a historically black university. Physicians and other health professionals are engaged weekly in activities and services in the local community, including medical presentations, free health screenings, educational workshops, and health fairs.

• 300 Beds

The Washington DC VA Medical Center is the region’s only health care system that specifically provides health care services to veterans. The medical center is also home to an adjacent 120-bed community living enter, which provides Veterans with geriatric long-term, hospice, and palliative care.

• 194 Beds

Utilizing its research partnership with Georgetown University School of Medicine, MedStar National Rehabilitation Hospital is the region’s largest acute rehabilitation hospital.

• 137 Beds • +1,200 Jobs Supported • +2,000 Annual Patients

• +2,500 Jobs Supported • +1,000,000 Annual Patients

• +100,000 Annual Patients

BERKADIA HOTELS & HOSPITALITY

47

MARKET OVERVIEW

Entertainment & Leisure Union Market is the epicenter of culinary creativity in DC with over 55 local vendors as well as shopping, dining, arts, entertainment, and community events year-round.

55+

VENDORS AND RETAILERS

ANNUAL EVENTS

8

+15,000

OFFICE SPACES

48

+400

MAISON KESH HOTEL | WASHINGTON, D.C.

WEEKLY VISITORS

25K SQUARE FEET

BERKADIA HOTELS & HOSPITALITY

49

MARKET OVERVIEW

20,356 SEATING CAPACITY

Capital One Arena is home to the NHL's Washington Capitals, the NBA's Washington Wizards, and the Georgetown Hoyas men’s basketball team.

Since its opening in 1997, the arena has hosted more than 4,500 events and over 47 million fans.

50

MAISON KESH HOTEL | WASHINGTON, D.C.

41,339 SEATING CAPACITY

Located along the Anacostia River in the Navy Yard neighborhood of Washington, DC, Nationals Park is home to Major League Baseball's Washington Nationals.

Since its completion in 2008, it was the first LEED-certified green major professional sports stadium in the United States. The stadium boasts a seating capacity of 41,339.

BERKADIA HOTELS & HOSPITALITY

51

Renowned Smithsonian Museums

MARKET OVERVIEW

22.1M

t 1s

TOTA L V ISITOR S IN 2019

Y G ell Or Silve reen ow L Re Blue ange r Lin Lin ine d L Li e e ine ne Line

5.3 miles from the Castle RENWICK GALLERY 1661 Pennsylvania Avenue NW, 20006

No

METRO LINES

.

St

NATIONAL ZOOLOGICAL PARK 3001 Connecticut Avenue NW, 20008

r th

Ca

p it

ol

St

UNIO

NORTH-FACING VIEW Massachusetts Ave.

30-minute walk from the Castle; 1.5 miles

NW

POSTAL MUSEUM

F St.

UDVAR-HAZY CENTER 14390 Air & Space Museum Pkwy., Chantilly, VA, 20151

1Mile

NW

D St. N E St.

29.3 miles from the Castle N G St.

¾ Mile

W

D St.

C St

Co n s

d

/

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St

NW E St.

D St.

5t

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h .

St

PORTRAIT GALLERY and AMERICAN ART MUSEUM

N T ER

½ Mile 7t

C St

. NW Pennsylvan

.

St

h

VY S-N A R HIVE L ARCE MORIAQUARTE M EN N ia Ave. P Pennsylvan

.

St

9t h .

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LT

t 14 h .

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SMITHSONIAN CASTLE (VISITOR CENTER)

ry

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U.S. BOTANIC GARDEN e J eff

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¾ Mile

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en

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AIR & SPACE MUSEUM

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HIRSHHORN MUSEUM ZA

.

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.

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9t h

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.

St

t 10 h .

St

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NE.) NIA E AV HSDO EN C S MDIT EPEN

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VICTORY GARDEN

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POLLINATOR GARDEN

AFRICAN AMERICAN HISTORY and CULTURE MUSEUM

ve. ion A

¼ Mile

NATURAL HISTORY MUSEUM

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½ Mile

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St

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d

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5 miles from the Castle

Produced by the Smithsonian Office of Visitor Services

52

MAISON KESH HOTEL | WASHINGTON, D.C.

SMITHSONIAN AMERICAN ART MUSEUM

NATIONAL AIR AND SPACE MUSEUM

• Holds one of the world's largest and most inclusive collections of art, from the colonial period to the present, made in the United States • 2 million visitors in 2019

• Features three virtual reality adventures and five flight/ride simulators • 3.2 million visitors in 2019 • Seven permanent exhibits are on display covering more than 161,100 SF

NATIONAL MUSEUM OF NATURAL HISTORY

HIRSHHORN MUSEUM AND SCULPTURE GARDEN

• 4.2 million visitors in 2019 • Spans 1.5 million SF, including 325,000 SF of exhibition and public space • The museum is responsible for the acquisition and maintenance of over 145 million artifacts and specimens

• 891,100 visitors in 2019 • Features mostly post-World War II art in a unique, 60,000 SF exhibition space • The two-level, outdoor Sculpture Garden covers 4 acres

BERKADIA HOTELS & HOSPITALITY

53

MARKET OVERVIEW

NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE

• 2 million visitors in 2019 • Offers more than a dozen unique and inspiring collections • The museum has more than 36,000 artifacts, with about 3,500 on display • The museum spans 350,000 SF in a 10-story building, making it the world’s largest museum dedicated to African American history and culture

SMITHSONIAN INSTITUTION BUILDING "THE CASTLE"

• 965,500 visitors in 2019 • Completed in 1855, “The Castle” is the signature building of the Smithsonian and is home to the Smithsonian Visitor Center which offers highlights of each of the Smithsonian’s museums

54

MAISON KESH HOTEL | WASHINGTON, D.C.

SMITHSONIAN NATIONAL ZOO

• 1.8 million visitors in 2019 • 163-acre site

NATIONAL MUSEUM OF AMERICAN HISTORY

The National Museum of American History is among the most visited of the Smithsonian Museums.

• Over 2.8 million visitors are recorded annually • Responsible for the care and maintenance of more than 1.7 million artifacts and 22,000 linear feet of historical documents • The museum occupies 300,000 SF of space and has 12 permanent exhibits

NATIONAL PORTRAIT GALLERY • Over 23,000 items are in the gallery’s collection • Other than the White House, the National Portrait Gallery has the only complete collection of Presidential portraits • Approximately 1.5 million people visit the National Portrait Gallery each year

BERKADIA HOTELS & HOSPITALITY

55

MARKET OVERVIEW

Transportation

Union Station is a superbly restored historic, mixed-use, intermodal transportation and shopping center located just blocks from the U.S. Capitol. The nation’s second-busiest train station trailing only New York City’s Penn Station – guests are easily connected to the entire Mid-Atlantic region. Moreover, with a $10 billion potential expansion, and a $1.2 trillion infrastructure bill recently put into place, much of which will be targeted on Amtrak projects throughout the Mid-Atlantic and Northeast US, there remains potential for significantly more travelers visiting the DC Metro region over the coming years.

56

MAISON KESH HOTEL | WASHINGTON, D.C.

100K

DAILY USERS

10B

$

POTENTIAL EXPANSION

Reagan National Airport (DCA)

US Washington Metrorail (Rail + Bus)

Offering nonstop flights to 96 domestic and six international destinations, Reagan National Airport (DCA) served a record 23.9 million passengers in 2022 and recently completed more than $1 billion of improvements, adding a new 14gate, 230,000 SF concourse, as well as two new security checkpoint buildings in April 2021.

US Washington Metrorail provides safe, clean, reliable transit service for more than 600,000 customers a day throughout the Washington, DC area. Hospitality guests and residents alike can utilize the second largest rapid transit system in the United States which served over 300 million passengers in 2019 – a number primed to grow substantially as there are plans for up to $20 billion of improvements currently being reviewed.

23.9M

PASSENGERS IN 2022 (RECORD TRAFFIC)

BERKADIA HOTELS & HOSPITALITY

57

MARKET OVERVIEW

Notable Local Developments Burnham Place

Union Station Renovation & Expansion

14-acres encompassing the Union Station rail yard between K Street and 1st and 2nd Street NE

50 Massachusetts Avenue Northeast

$10 Billion

$3 Billion

Start: Late 2023 Anticipated Finish: 2040 Developer(s): Amtrak, Union Station Redevelopment Corporation

Start: Not Disclosed Anticipated Finish: 2030 Developer(s): Akridge

The $10 billion plans to modernize the nation’s second-busiest rail hub include a major reconfiguration of the bus terminal to align with a new train hall, addIng wider rail platforms, a new bus terminal and updated concourses lined with shops and restaurants, and improved accessibility to Metrorail, buses, taxis, ride-hailing services, streetcars and parking.

McMillan Sand Filtration Site

Burnham Place, a proposed 3 million SF development, will be built above Union Station’s rail yard, providing direct access to a newly expanded and improved station facility. The development will feature a mix of 1.5 million SF of first-class office space, over 1,300 residential units, 100,000 SF of retail space, and hotel space, as well as parks and plazas.

25-acre site at North Capitol Street, Michigan Avenue, and First Street NW

7 New York Ave

1 Florida Ave

7 New York Avenue Northeast

1 Florida Avenue Northeast

Cost Not Disclosed

Cost Not Disclosed

Start: 2022 Anticipated Finish: Not Disclosed Developer(s): EYA, Jair Lynch, Trammel Crow

Start: 2022 Anticipated Finish: Not Disclosed Developer(s): Akridge

Start: 2021 Anticipated Finish: Not Disclosed Developer(s): Aria Development

The $720 million, 25-acre redevelopment of the former McMillan Reservoir Sand Filtration Site includes 860,000 SF of medical office, 467 apartments, a 52,000 SF supermarket, 146 townhomes and a central park and community center.

A redevelopment of the former Covenant House location, this new project will deliver 116 residential units primarily consisting of micro units.

Aria Development is replacing a former Exxon Mobile gas station at the corner of North Capitol Street and Florida Avenue, bringing a new 13-story-pluspenthouse building with 388 units and a swimming pool to the site.

$720 Million

58

MAISON KESH HOTEL | WASHINGTON, D.C.

The 202

Capitol Point North

202 Florida Avenue Northeast

1300 First Street Northeast

Cost Not Disclosed

Cost Not Disclosed

(developer received a $69.4M loan)

Start: Not Disclosed Anticipated Finish: 2024 Developer(s): JBG Smith

Start: 2022 Anticipated Finish: 2023 Developer(s): MRP Realty Located in the NoMa neighborhood and adjacent to the Union Market district, the 202 will deliver a 16-story high-rise apartment building with 254 units and 3,800 SF of retail. The building will include a mix of studio, one-bedroom, and two-bedroom units. Residents will enjoy a rooftop club room, pet facilities, fitness center, and shared workspaces.

Financial Plaza 60 New York Avenue Northeast

Cost Not Disclosed Start: 2022 Anticipated Finish: 2025 Developer(s): Douglas Development Corporation The General Services Administration signed a 1.23 million SF lease with Douglas Development Corporation for a new Securities and Exchange Commission headquarters to be constructed which will house approximately 4,500 SEC employees. The triangular site, bounded by New York Avenue, North Capitol Street and First Street NE, can also accommodate another 600,000 square feet of office or 600 residential units.

JBG Smith has submitted plans for a +700,000 SF mixed-use development on the 1.5acre site at 55 and 75 New York Avenue. The property is currently home to a McDonald’s and a three-story office building. The development would include 805 residential units along with over 30,000 SF of retail and restaurant space as well as a penthouse-level restaurant/bar.

District of Columbia Housing Authority Redevelopment 1133 North Capitol Street Northeast

Cost Not Disclosed

(land purchased in 2019 for $67 million) Start: 2022 Anticipated Finish: 2024 (Phase 1) Developer(s): MRP Realty, Ares Management The multi-phased development will include an estimated 1,200 apartments and is slated to include a minimum of 244 affordable units, at least half of which would be deeply affordable for residents making 30 percent of the median family income and below.

Lacebark Alley 1250 First Street Northeast

Cost Not Disclosed Start: Not Disclosed Anticipated Finish: 2024 Developer(s): JBG Smith, Brandywine Realty Trust Lacebark Alley will consist of a new three-building complex comprising of mixed-use space including 220 residential apartments, 366,000 SF of class A office space, 53,000 SF of on-site retail, and a 9,000 SF art centric plaza.

BERKADIA HOTELS & HOSPITALITY

59

STR TREND SET OVERVIEW

STR TREND SET OVERVIEW

STR Trend Set Analysis The Maison Kesh’s proposed competitive set includes six nearby hotels totaling 1,192 rooms. Prior to the impact of the COVID-19 pandemic, the proposed competitive set demonstrated historically robust top-line performance, realizing a $150.89 RevPAR for the year end 2019 period, which consisted of 79.7% Occupancy and $189.21 ADR. As of the year end 2022 period, the proposed competitive set achieved a $128.38 RevPAR, consisting of 70.5% Occupancy and $182.03 ADR. However, as top-line benchmarks – primarily Occupancy – continues to build off an impressive 107% YoY RevPAR increase – a new owner will be able to leverage the Hotel’s brand-new, boutique product offering and highly coveted amenity base/F&B outlets, in conjunction with a prime location in a burgeoning submarket of Washington, DC to command a premium in both rate and occupancy, leading to an outstanding RevPAR penetration at stabilization.

62

MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

Occupancy (%) January

February

March

April

May

June

July

August

September

October

November

December

Total Year

Jan YTD

2016

60.1%

71.6%

89.6%

92.9%

79.3%

87.4%

87.1%

84.8%

82.1%

83.3%

72.3%

64.5%

79.7%

60.1%

2017

68.2%

75.7%

86.9%

91.0%

86.0%

89.5%

90.3%

81.6%

84.9%

88.3%

80.6%

70.6%

82.8%

68.2%

2018

63.7%

72.3%

88.5%

91.3%

86.6%

89.4%

88.0%

80.3%

74.8%

83.7%

74.3%

67.3%

80.0%

63.7%

2019

56.6%

68.9%

86.9%

90.7%

87.7%

89.4%

88.6%

85.1%

78.1%

85.2%

74.0%

64.7%

79.7%

56.6%

2020

59.3%

70.9%

32.8%

13.6%

25.0%

33.4%

41.2%

28.8%

31.2%

35.4%

28.1%

24.4%

35.6%

59.3%

2021

59.8%

43.9%

43.1%

50.1%

49.4%

51.6%

55.3%

52.3%

46.4%

56.7%

59.2%

55.8%

52.0%

59.8%

2022

40.2%

47.0%

68.7%

77.5%

77.3%

80.0%

82.8%

78.4%

76.2%

79.7%

68.9%

67.9%

70.5%

40.2%

2023

57.8%

Avg

57.9%

57.8% 64.5%

72.1%

75.6%

72.8%

76.7%

78.3%

70.8%

68.8%

74.6%

65.7%

59.7%

69.8%

57.9%

ADR ($) January

February

March

April

May

June

July

August

September

October

November

December

Total Year

Jan YTD

2016

$137.49

$168.07

$213.40

$226.29

$217.83

$209.06

$165.51

$146.32

$204.52

$223.18

$181.49

$142.46

$188.79

$137.49

2017

$207.00

$170.66

$232.96

$224.53

$224.01

$216.37

$177.04

$152.18

$190.58

$238.24

$168.84

$123.97

$195.71

$207.00

2018

$132.27

$154.23

$212.58

$234.17

$223.55

$223.22

$163.82

$148.06

$191.72

$224.69

$165.65

$140.56

$187.82

$132.27

2019

$142.94

$151.94

$217.07

$215.40

$232.03

$216.12

$166.43

$141.09

$208.47

$229.43

$175.11

$133.19

$189.21

$142.94

2020

$143.03

$164.92

$216.18

$110.40

$99.43

$100.11

$104.87

$104.77

$97.61

$95.19

$91.94

$87.14

$125.83

$143.03

2021

$122.36

$104.09

$89.12

$95.40

$105.03

$111.87

$126.67

$131.40

$136.84

$157.60

$126.11

$109.82

$119.14

$122.36

2022

$121.44

$126.68

$164.50

$207.39

$219.04

$209.56

$166.98

$149.83

$207.19

$237.03

$168.92

$145.23

$182.03

$121.44

2023

$143.95

Avg

$145.07

$143.95 $153.16

$199.87

$208.07

$207.38

$198.79

$159.89

$143.42

$187.80

$212.70

$161.68

$129.54

$177.31

$145.07

RevPAR ($) January

February

March

April

May

June

July

August

September

October

November

December

Total Year

Jan YTD

2016

$82.67

$120.29

$191.14

$210.21

$172.80

$182.76

$144.13

$124.13

$167.92

$185.88

$131.29

$91.95

$150.39

$82.67

2017

$141.13

$129.22

$202.55

$204.38

$192.63

$193.60

$159.84

$124.19

$161.90

$210.47

$136.02

$87.47

$162.09

$141.13

2018

$84.21

$111.52

$188.06

$213.91

$193.57

$199.67

$144.08

$118.89

$143.40

$187.98

$123.16

$94.54

$150.35

$84.21

2019

$80.85

$104.71

$188.57

$195.36

$203.54

$193.15

$147.45

$120.00

$162.76

$195.48

$129.62

$86.22

$150.80

$80.85

2020

$84.80

$116.92

$70.82

$14.99

$24.86

$33.48

$43.22

$30.22

$30.43

$33.74

$25.81

$21.30

$44.81

$84.80

2021

$73.23

$45.66

$38.42

$47.77

$51.86

$57.70

$69.99

$68.75

$63.43

$89.33

$74.66

$61.29

$61.98

$73.23

2022

$48.86

$59.59

$113.07

$160.79

$169.28

$167.72

$138.20

$117.41

$157.90

$188.96

$116.44

$98.57

$128.38

$48.86

2023

$83.26

Avg

$84.02

$83.26 $98.80

$144.18

$157.24

$151.02

$152.42

$125.22

$101.55

$129.25

$158.72

Note: The year end 2017 period was an inauguration year which typically includes increased Occupancy, ADR, and RevPAR figures.

$106.25

$77.37

$123.75

$84.02

STR TREND SET OVERVIEW

Property

Location

Rooms

Opened

Hampton Inn Washington-Downtown-Convention Center

Washington, DC

228

March 2005

Cambria Hotels Washington, DC Convention Center

Washington, DC

182

May 2014

Homewood Suites Washington DC Convention Center

Washington, DC

160

May 2016

Courtyard Washington DC US Capitol

Washington, DC

218

April 2009

Hilton Garden Inn Washington DC US Capitol

Washington, DC

204

April 2011

Hyatt Place Washington DC/US Capitol

Washington, DC

200

June 2014

Total

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MAISON KESH HOTEL | WASHINGTON, D.C.

1,192

BERKADIA HOTELS & HOSPITALITY

65

STR TREND SET OVERVIEW

STR Trend Set Comparison

Hampton Inn WashingtonDowntown-Convention Center

Cambria Hotels Washington, DC Convention Center

Homewood Suites Washington DC Convention Center

Location

901 6th Street NW Washington, DC

899 O Street NW Washington, DC

465 New York Avenue NW Washington, DC

Year Built/ Renovated

March 2005

May 2014

May 2016

Rooms

228

182

160

F&B

Complimentary Breakfast, Sundry/Convenience Store

Complimentary Breakfast, Social Circle, Sundry/Convenience Store

Complimentary Breakfast, Sundry/Convenience Store

Meeting Space

432 SF

1,240 SF

0 SF

Amenities

Fitness Room Business Center

Indoor Pool Fitness Center Business Center

Fitness Room Business Center

66

MAISON KESH HOTEL | WASHINGTON, D.C.

Courtyard Washington DC US Capitol

Hilton Garden Inn Washington DC US Capitol

Hyatt Place Washington DC / US Capitol

1325 2nd Street NE Washington, DC

1225 First Street NE Washington, DC

33 New York Avenue NE Washington, DC

April 2009

April 2011

June 2014

218

204

200

The Bistro, Sundry/Convenience Store

The Garden Grill, Sundry/Convenience Store

Complimentary Breakfast, The Placery, Sundry/Convenience Store

2,755 SF

3,009 SF

1,600 SF

Indoor Pool Fitness Center Business Center

Indoor Pool Fitness Center Business Center

Outdoor Pool Fitness Center Business Center

BERKADIA HOTELS & HOSPITALITY

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FINANCIAL OVERVIEW

Pro Forma Rooms Available Rooms Rooms Sold Occupancy ADR ADR % Change RevPAR RevPAR % Change Revenue

2024

2025

2026

2027

2028

97 35,502 24,141 68.0% $220.01 -$149.61 --

97 35,405 26,554 75.0% $231.01 5.0% $173.26 15.8%

97 35,405 27,970 79.0% $240.83 4.3% $190.26 9.8%

97 35,405 27,970 79.0% $248.06 3.0% $195.97 3.0%

97 35,502 28,047 79.0% $255.50 3.0% $201.84 3.0%

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

$5,311,432 $4,846,796 $421,562 $7,232 $10,587,022

50.2% 45.8% 4.0% 0.1% 100.0%

$6,134,300 $5,411,092 $468,325 $8,034 $12,021,751

51.0% 45.0% 3.9% 0.1% 100.0%

$6,736,075 $5,785,179 $498,235 $8,547 $13,028,037

51.7% 44.4% 3.8% 0.1% 100.0%

$6,938,158 $5,871,957 $503,217 $8,633 $13,321,964

52.1% 44.1% 3.8% 0.1% 100.0%

$7,165,881 $5,976,365 $509,642 $8,743 $13,660,631

52.5% 43.7% 3.7% 0.1% 100.0%

Rooms Food & Beverage Other Operated Departments Total Expenses

$1,210,984 $3,635,097 $242,398 $5,088,479

22.8% 75.0% 57.5% 48.1%

$1,371,954 $3,923,042 $257,579 $5,552,575

22.4% 72.5% 55.0% 46.2%

$1,488,479 $4,049,625 $264,065 $5,802,169

22.1% 70.0% 53.0% 44.5%

$1,533,133 $4,110,370 $266,705 $5,910,208

22.1% 70.0% 53.0% 44.4%

$1,583,454 $4,183,455 $270,110 $6,037,019

22.1% 70.0% 53.0% 44.2%

Gross Operating Income

$5,498,543

51.9%

$6,469,177

53.8%

$7,225,868

55.5%

$7,411,756

55.6%

$7,623,612

55.8%

Administrative & General Information & Telecommunications Franchise Fees (1) Sales & Marketing Repairs & Maintenance Energy Costs Total Undistributed Operating Expenses

$698,328 $104,315 $478,029 $376,268 $262,918 $226,860 $2,146,718

6.6% 1.0% 4.5% 3.6% 2.5% 2.1% 20.3%

$731,241 $107,151 $552,087 $394,002 $288,420 $244,339 $2,317,240

6.1% 0.9% 4.6% 3.3% 2.4% 2.0% 19.3%

$760,491 $110,365 $606,247 $409,762 $302,841 $254,113 $2,443,819

5.8% 0.8% 4.7% 3.1% 2.3% 2.0% 18.8%

$783,305 $113,676 $624,434 $422,055 $311,926 $261,736 $2,517,133

5.9% 0.9% 4.7% 3.2% 2.3% 2.0% 18.9%

$809,015 $117,407 $644,929 $435,908 $322,164 $270,327 $2,599,750

5.9% 0.9% 4.7% 3.2% 2.4% 2.0% 19.0%

Gross Operating Profit

$3,351,825

31.7%

$4,151,937

34.5%

$4,782,049

36.7%

$4,894,623

36.7%

$5,023,861

36.8%

Insurance Property & Other Taxes Management Fees Total Fixed Charges

$108,446 $457,069 $317,611 $883,126

1.0% 4.3% 3.0% 8.3%

$111,395 $480,890 $360,653 $952,937

0.9% 4.0% 3.0% 7.9%

$114,736 $500,126 $390,841 $1,005,703

0.9% 3.8% 3.0% 7.7%

$118,178 $515,129 $399,659 $1,032,967

0.9% 3.9% 3.0% 7.8%

$122,057 $532,037 $409,819 $1,063,913

0.9% 3.9% 3.0% 7.8%

EBITDA

$2,468,699

23.3%

$3,199,000

26.6%

$3,776,346

29.0%

$3,861,656

29.0%

$3,959,948

29.0%

Reserve for Replacement

$423,481

4.0%

$480,870

4.0%

$521,121

4.0%

$532,879

4.0%

$546,425

4.0%

Net Operating Income

$2,045,218

19.3%

$2,718,130

22.6%

$3,255,225

25.0%

$3,328,778

25.0%

$3,413,523

25.0%

Rooms Food & Beverage Other Operated Departments Miscellaneous Total Revenue Departmental Expenses

Undistributed Operating Expenses

Fixed Charges

(1) Franchise Fees reflect amounts typically associated with a Marriott, Hilton, Hyatt or IHG 'soft-brand' product.

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and MAISON KESH HOTEL | reproduced WASHINGTON, D.C. or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

70their clients.

This file may not be physically

The Hoxton, Chicago

BERKADIA HOTELS & HOSPITALITY

71

INVESTMENT SALES Dan Hawkins

Jake Pietras

Justin Storer

Fiorella Furlato

Managing Director 240.204.5139 dan.hawkins@berkadia.com Real Estate Analyst 301.202.3542 justin.storer@berkadia.com

FINANCING

Andrew Coleman

Senior Managing Director 240.204.5132 andrew.coleman@berkadia.com

Associate Director 410.940.9497 jake.pietras@berkadia.com Real Estate Analyst 215.328.1311 fiorella.furlato@berkadia.com

Lindsey deButts

Senior Director 240.204.5131 lindsey.debutts@berkadia.com

Katelyn Reynolds

Senior Real Estate Analyst 213.399.3390 katelyn.reynolds@berkadia.com

BROKER OF RECORD Bobby Meehling #BR40000206

72

MAISON KESH HOTEL | WASHINGTON, D.C.

The Hoxton, Chicago

DISCLAIMER & CONFIDENTIALITY AGREEMENT The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. © 2023 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: https://www.berkadia.com/licensing/ BERKADIA HOTELS & HOSPITALITY

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a Berkshire Hathaway and Jefferies Financial Group company

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