Miami | Miami Beach Hotel Portfolio

HOSPITALITY PORFOLIO OPPORTUNITY Offering Memorandum

LITTLE HAVANA

528-534 SW 9th Avenue, Miami

MIAMI BEACH 321 Collins Avenue, Miami Beach, Florida

TABLE OF CONTENTS LOCATION OVERIEW

4

MARKET OVERVIEW

6

SOUTH OF FIFTH | THE PROPERTY

10

LITTLE HAVANA | THE PROPERTY

21

LH SURVEY

38

LH FLOOR PLAN

39

SOFI SURVEY

40

SOFI FLOOR PLANS

41

ZONING

42

LOCATION OVERVIEW Miami Beach, America’s Riviera, is one of the most popular destinations in the world for tourists and investors alike, attracting millions of visitors each year.

The island city of just over 7 square miles separates Biscayne Bay from the waters of the Atlantic Ocean. It offers a diverse mix of arts and entertainment, shopping and dining, as well as its signature sun and miles of white sand beaches.

From world-renowned Ocean Drive - the backdrop for many Hollywood movies to iconic Lincoln Road with its fashionable shops and restaurants, this cosmopolitan city is a magnet for visitors, world travelers, celebrities and locals who want to experience the fun and passion of this Art Deco paradise.

Miami Beach provides easy access to both Miami International Airport and Port Miami – the “Cruise Capital of the World”, with over 5 million passengers each year, many of whom seek overnight accommodation in Miami Beach.

The newly renovated and expanded Miami Beach Convention Center attracts acclaimed international events including Art Basel, which debuted in Miami Beach in 2002.

LOCATION OVERVIEW Little Havana is Miami’s vibrant Cuban heart, with Latin American art galleries and busy restaurants. The neighborhood is centered around Calle Ocho (Southwest Eighth Street), a vibrant thoroughfare lined with Latin-inspired restaurants, bakeries, fruit stands, cigar shops, rum bars, art galleries and music venues. I t’s also where you’ll find the famed Máximo Gómez Park (known as Domino Park), where locals gather to talk politics over heated games of dominoes. The street is lined with murals and other artwork, from the mosaic tiles near Domino Park depicting classic symbols of Cuban heritage – cigars, musical instruments and tropical fruit – to walls covered with portraits of Cuban legends, including revolutionary poet José Martí and beloved singer Celia Cruz. The historic Tower Theater screens independent and revival films, while the area's clubs host live Latin music. The neighborhood plays host to the Calle Ocho Music Festival every March to celebrate Carnaval Miami, with big-name entertainers headlining the festivities.

Life House Little Havana is located two blocks from Calle Ocho, close to Brickell and Downtown Miami

MARKET OVERVIEW As the tourism industry faced substantial challenges throughout the pandemic, the Greater Miami Convention & Visitors Bureau reported that Greater Miami and Miami Beach tourism experienced a phenomenal recovery. In 2021, 15.9 million overnight visitors and an additional 8.3 million day visitors totaling 24.2 million came to the area, which essentially matched the total volume of tourists seen in 2019. Furthermore, visitor spending rebounded and tourists spent an estimated $19.2 billion, an increase of 8% over 2019.

The beginning of the year saw continued growth from the latter part of 2020. Starting in March, tourism fueled mostly by domestic visitors began to build momentum and by June, Miami International Airport, hotels and restaurants were full again. The cruise industry also started welcoming passengers back in the summer and has since slowly gained traction; albeit, not where it was prior to the pandemic.

MARKET OVERVIEW

The influx of tourists was driven by domestic visitation and, to some extent, international visitors from countries mainly in the Caribbean and Latin America. International travel restrictions continued to hamper European and Canadian visitors from visiting, and these restrictions were in place for most of the year. Brazil, normally one of the largest feeder markets into Greater Miami and Miami Beach, faced more stringent travel restrictions, which undoubtedly affected their return.

Domestic visitation made up much of the overall deficit created by a lack of visitors from Europe and Canada, but Latin American markets filled in a sizable gap in international visitation. The primary purpose of visits for tourists continued to be leisure-driven. The New York City area contributed tremendous gains in visitors, both in 2020 as well as 2019. Overnight visitors from the New York City area increased by 22% as compared to prepandemic levels. Comparing domestic markets versus pre-pandemic levels, almost all of the top 20 domestic markets increased their visitation over 2019. For the year, strong room demand along with premium hotel room rates resulted in a boon for Greater Miami and Miami Beach hoteliers, with hotel revenue per available room going above and beyond what many had initially forecasted.

MARKET OVERVIEW According to STR, the industry leader for hotel performance monitoring, Miami-Dade County did exceedingly well as compared to the other Top 25 U.S. Hotel Markets in 2021 as the industry recovered from the initial emergence of the COVID virus. While the state of Florida led among the fastest states to recover, Miami-Dade County ended the year with an average hotel Occupancy rate of 66.8%, an increase of +44.2% compared to 2020, and ADR of $223.49, an increase of +20.4%. The changes in Occupancy and ADR resulted in RevPAR (revenue per available room) of $149.24, a net increase of +73.7%. Continuing from 2020, Airbnb and other home sharing platforms’ inventory continued to grow and provide alternative lodging options to overnight visitors to Greater Miami and Miami Beach. Despite the sustained growth of Airbnb and other home sharing platforms, Greater Miami and Miami Beach’s hotels continue to be favored by visitors to the area. In 2021, Miami-Dade County ranked among the top 10 in all three major categories (Occupancy, ADR and RevPAR) when compared against the Top 25 U.S. Hotel Markets by STR. Miami-Dade County: #1 Revenue Per Available Room (RevPAR) #2 Average Daily Room Rate (ADR) #2 Occupancy

Source: Greater Miami Convention and Visitors Bureau-Visitor Industry Overview 2021

59 ROOM HOTEL PACKAGE Unique opportunity to acquire two triple-net leased hospitality investments with annual increases in two exciting markets.

Little Havana, Miami, and South of Fifth, South Beach.

This renovated 59-room hotel package with restaurants and bars offers private and shared accommodations for a total of

120 BEDS

SOUTH OF FIFTH 321 COLLINS AVENUE, MIAMI BEACH

THE PROPERTY

SOUTH OF FIFTH 321 COLLINS AVENUE, MIAMI BEACH

• • • • •

Renovated 26-room boutique hotel with lobby bar and café 7 private rooms and 19 shared accommodations, for a total of 83 beds Located in Miami Beach’s sought-after South of Fifth neighborhood Steps to Ocean Drive, restaurants, shops and the beach 3-year triple net master lease with a 3-year option

LIVING ROOM

KIOSK

ARTIST LOFT BEDROOM

ARTIST STUDIO BEDROOM

ARTIST SUITE BEDROOM

BATHROOMS

LITTLE HAVANA 528-534 SW 9TH AVENUE, MIAMI

THE PROPERTY

LITTLE HAVANA 528-534 SW 9TH AVENUE, MIAMI

• • • • •

Renovated 33-room boutique hotel in Little Havana 31 private rooms and 2 shared accommodations, for a total of 37 beds Lush, tropical courtyard, and rooftop restaurant and bar Strategic location close to Brickell and downtown Miami 3-year triple net master lease with a 3-year option

LITTLE HAVANA 528-534 SW 9TH AVENUE, MIAMI

LOBBY

LOBBY

LIBRARY

KIOSK

KING BEDROOM

QUAD BEDROOM

QUEEN BEDROOM

ROOF TERRACE

ROOFTOP TERRACE

ROOFTOP TERRACE

ROOFTOP TERRACE

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

PACKAGE OFFERED AT

$22,000,000

SURVEY

FLOOR PLANS

SURVEY

FLOOR PLANS

MIAMI BEACH ZONING RPS3

ZONING

MIAMI BEACH ZONING RPS3

ZONING

CITY OF MIAMI ZONING – T4-R

THE GENERAL URBAN ZONE consists of a Mixed-Use but primarily residential urban fabric with a range of Building types including row houses, small apartment Buildings, and bungalow courts. Setbacks are short with an urban Streetscape of wide Sidewalks and trees in planters. See City of Miami Zoning Information General Urban Transect T4 Miami 21 Zoning Code for additional information and regulations . (https://gis.miamigov.com/Miami21Docs/T4.PDF)

ZONING