Offering Package - digital

CONSOLIDATION FINANCING MEMORANDUM

3 Confidentiality Agreement 4 Paramount Hotels 5 Property Overview 7 Location 8 Tower Description 12 Amenities 13 Food & Beverage Partners 17 Marketing Overview 20 Financial Overview 22 Competitive Overview 23 Capital Expenditures

table of contents

26 Goals

THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use in considering whether to pursue negotiations to consolidate the financing the Maui Coast Hotel located in Kihei, Hawaii.

This confidential memorandum, which contains brief, selected information pertaining to the business and affairs of the property, has been prepared by Paramount Hotels, This confidential memorandum does not purport to be all-inclusive or to contain all the information that a prospective financer may desire.

Neither paramount hotels nor any of their officers, employees or agents make any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed or shall be implied with respect thereto.

By acknowledgment of your receipt of this confidential memorandum, you agree that the memorandum and its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not, directly or indirectly, disclose or permit anyone else to disclose this memorandum or its contents to any other person, firm or entity without prior written authorization of seller, and that you will not use or permit to be used this memorandum or its contents in any fashion or manner detrimental to the interest of the seller. Photocopying or other duplication is strictly prohibited.

The hotel expressly reserves the right, at its sole discretion, to reject any or all proposals and to terminate discussions with any party at any time with or without notice. If you do not wish to pursue negotiations leading to this acquisition, or if in the future you discontinue such negotiation, you agree to return this confidential memorandum to Maui Coast Hotel.

THIS CONFIDENTIAL MEMORANDUM SHALL NOT BE DEEMED A REPRESENTATION OF THE STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THIS MEMORANDUM

confidentiality

BUILDING A LEGACY BRAND THAT’S REDEFINING EXPECTATIONS Paramount Hotels is a growing, second generation, hospitality and development company with a diverse, purposeful culture designed to affect our employees and guests, and better our communities. Paramount’s reputation for professionalism reflects our commitment to fostering a workplace that is healthy, inspiring, joyful, and abundant.

PROMISE

VISION

At Paramount Hotels we recognize that we are only as good as our word. When we make a promise to ourselves, our employees, and our guests, it is fundamental to our culture that we live up to those declarations.

Paramount Hotels’ work is to create a legacy that will endure and expand for generations. Our vision is to redefine and create the kind of environment that not only affects our employees and guests, but that betters our communities, and changes hearts, minds and expectations within our industry.

VALUES Foremost, we are building our company with the same ideals that have shepherded us thus far, holding highest our focus on family and relationships. We choose partners who we believe will grow alongside Paramount and who share our ethics.

paramount hotels

overview

Located in the heart of Kihei in South Maui, the luxury Maui Coast Hotel prides itself on its authentic Hawai’i culture and aloha spirit.

Maui Coast Hotel’s unparalleled convenience and location— and adjacency to Kamaole Beach Park I—distinguishes it from other parts of the island and stands alone as the only hotel of its type in South Maui.

Maui Coast Hotel is comprised of two towers, Hōkū and Kai. The original hotel tower, Hōkū (meaning star in Hawaiian) was built in 1992. In 2022, Maui Coast Hotel began construction on its new tower, Kai (meaning sea in Hawaiian) which added 162 guest rooms and suites and opened in Summer 2024. At the same time, the lobby and original pool deck were refurbished, as well as the addition of an infinity pool.

Maui Coast Hotel is ecofriendly and is dedicated to preserving the vital natural resources of Hawai’i. An array of green-friendly programs and initiatives ranging from high-efficiency solar power to water conservation programs, are part of our efforts. We offer complimentary bicycles for guests and have just added 13 EV charging stations.

one ohana

Maui Coast Hotel has been part of the Paramount Hotels family since 1992. Recalling its beginnings, Paramount’s president, Matthew Olson remembers visiting with his parents when he was just three years old.

“Kihei was the most magical place I’d ever seen.

Even then, the sea breeze and palm trees made an impression. But by far my strongest memories are of the local Hawaiian people. The warmth they welcomed me with and their spirit of true Aloha, left an impression that I’ve carried through my life.

Maybe it has something to do with the perfect weather but the warm smiles from the entire staff can found, and felt, throughout the hotel. Maui Coast has five members that have worked at the property since day one. Every time I have the privilege to return, I look forward to seeing them again. During the hotel’s construction and the final concrete pour to finish the driveway, I etched my initials into the curb. You can still see it today. It’s fun to think about how much has changed, but also what is important that has remained. I’m a lot older than that young kid who first discovered Hawaii, but I’ve never forgotten how special this place is and I’m so happy it’s still here to share its magic.”

MAUI COAST HOTEL MC LLC

MAUI COAST HOTEL WCME LLC

Address

2259 S Kihei Rd

Address

2239 S Kihei Rd

Lot Size

4.87 acres

Lot Size

4.81 acres

Opened

1/19/93

Opened

5/15/24

Number of Stories

6

Number of Stories

6

Number of Keys

265

Number of Keys

162

Amenities

Gift Shop & Market, Beach Gear Room, Laundry

Amenities

Laundry

Brand

Unincumbered by Brand

Brand

Unincumbered by Brand

Management

Paramount Hotels

Management

Paramount Hotels

Parking Spaces

221

Parking Spaces

229

Building Square Feet

151,842

Building Square Feet

91,874

MAUI COAST HOTEL MC & WCME Lot Size

9.68 acres

Number of Keys

427

Shared Amenities

Fully-Equipped Fitness Center, EV Charging Stations, Pickleball Courts, Dry Cleaning Two Pools, Complimentary Shuttle, Complimentary Cruiser Bikes, Hospitality Suite

Brand

Unincumbered by Brand

Management

Paramount Hotels

Parking Spaces

450

Total Lot Size

9.683 acres

Total Square Feet

243,716

property overview

location

Kihei is known as one of Maui’s most convenient locations. Just 25 minutes from the Kahului International Airport, Kihei is on the southwest side of the island and is valued for its proximity to recreation, shopping and dinning.

Kihei has many restaurants and activities, most of which are a short walk or short car ride away. The hotel also has a complimentary shuttle that travels about three miles to the north and four miles to the south to The Shops at Wailea.

HOKU tower

Room Type

No. of Rooms

Interior Sq.Ft.

Exterior Sq.Ft.

Total Sq.Ft.

Hoku King Hoku King Balcony Hoku Double Queen Hoku Studio Suite King Hoku Studio Suite Double Queen Hoku Suite Hoku Executive Suite Total Rooms

92 2 57 28 23 61 2 265

355 355 355 519 519 545 545

70 135 70 70 70 70 70

425 490 425 589 589 615 615

HŌKŪ KING 355 Square Feet | King Bed + Sofa Sleeper | 1 Bath with Shower/Tub Combo | Sleeps 4 HŌKŪ DOUBLE QUEEN 355 Square Feet | Two Queen Beds | 1 Bath with Shower/Tub Combo | Sleeps 4 HŌKŪ STUDIO KING SUITE 519 Square Feet | King Bed + Sofa Sleeper | Wet Bar | Sitting Area | 1 Bath with Shower/Tub Combo | Sleeps 4

HOKU tower

HŌKŪ STUDIO DOUBLE QUEEN SUITE 519 Square Feet | Two Queen Beds | Wet Bar | Sitting Area | 1 Bath with Shower/Tub Combo | Sleeps 4 HŌKŪ SUITE 545 Square Feet | Separate King Bedroom | Sofa Sleeper | Wet Bar | Sitting Area | 1 Bath with Shower/Tub Combo | Sleeps 4

*Maui Coast Hotel also offers a selection of suite Hoku room product that can accommodate up to 8 guests and range to 1,090 square feet.

KAI tower

Room Type

No. of Rooms

Interior Sq.Ft.

Exterior Sq.Ft.

Total Sq.Ft.

Kai King Kai Double Queen Kai Poolside King Kai Poolside Double Queen Kai Resort View King Kai Resort View Double Queen Kai Ocean View King Kai Ocean View Double Queen Kai Ali'I Suite Total Rooms

57 24 6 4 15 8 21 19 8 162

388 388 388 388 388 388 388 388 835

70 70 110 110 70 70 70 70 140

458 458 498 498 458 458 458 458 975

KAI tower

Kai King 388 Square Feet | King Bed + Sofa Sleeper | 1 Bath with Walk-in Shower | Sleeps 4 Kai Double Queen 388 Square Feet | Two Queen Beds | 1 Bath Walk-in Shower | Sleeps 4 Kai Ali’i Suite 835 Square Feet | | King Bed + Sofa Sleeper | Wet Bar | Sitting Area | 1.5 Baths | Sleeps 4

Maui Coast Hotel also offers a selection of suite Kai room product that can accommodate up to 8 guests and range to 1,223 square feet.

Offering a rich catalogue of resort-style amenities is vital to the entire Maui Coast Hotel guest experience.

• • • • •

Fully Equipped Fitness Center Hospitality Suite Free WiFi Two Pools & Refreshed Pool Deck Beach Gear Lending Room

• • • • •

Cabanas Complimentary Bikes New Pickleball Courts EV Charging Stations Complimentary Laundry

amenities

Maui Coast Hotel’s food and beverage partners are a reflection of the resort: locally-owned, award winning, and authentic parts of the community. It’s not uncommon to find Maui residents dining alongside resort guests which adds to the eateries’ appeal. After a day at the beach, or adventures on the Road to Hana, guests appreciate not having to leave the resort for excellent food..

food & beverage

KIHEI CAFFE

HANOHANO POOL BAR

MISO PHAT SUSHI

Repeatedly named one of the best places to grab breakfast, the locally loved (and owned) Kihei Caffe Hawaiian-style diner offers a morning menu worth waking up for, as well as lunch and dinner fare too. Kihei Caffe opened its doors in 1998 and has been named to Travel & Leisure's 15 Best Breakfast Spots in the US as well as Best Breakfast on Maui for 10 consecutive years by Maui Time Weekly. A second location can be found in neighboring Lahaina.

Requisite for any tropical resort, is a flip-flop-andfamily-friendly pool bar.

Whether you prefer margaritas or mojitos (in addition to casual food like tacos and burgers) you won’t miss a moment of Maui's glorious weather thanks to Hanohano’s laidback Kihei-style essence.

And the fun keeps on coming after sundown with nightly live local music.

Can’t-be-missed south-side sushi that’s as fresh and delicious as it is beautiful, serving nigiri and sashimi in addition to its specialty sushi rolls. With more than 20 years in the restaurant business, owner Joy Steadman’s dedication to excellent service and cuisine creates a memorable difference that has helped garner the eatery its stellar reputation. Miso Phat’s newest location opening Spring ‘25 in the the brand-new retail building serves as a sophisticated extension of the resort.

Kihei Caffe $2M Renovation (2024 / 2025) | $1M Provided by Ownership

$500,000 Pool Bar Renovation 2025

$1,750,000 TI Buildout (2025) | $600,000 Provided by Ownership

marketing strategy Our marketing approach is a simple message.

For most people, a trip to Hawaii isn’t a last-minute decision. It takes planning and foresight, so we really wanted to lean into that concept; to ask people to start experiencing the joy and gratitude now, for what will be a vacation to remember.

We’re taking aim at something deeper: at our guests’ emotions. By asking them to experience their future gratitude now, we’re already laying a foundation for their experience.

Marketing Vehicles • •

• • • • •

marketing strategy

Display Advertising Web Advertising & Social Media Email Marketing Website Redesign Strategic Partnerships Influencer Program Loyalty Program

MauiCoastHotel.com

Maui Coast Hotel Airline Summary Airline

AVG RN Room Nights ADR per Day

Revenue

Room AVG RN ADR Nights per Day

2024 Actuals + Forecast

Revenue

2023 Actuals

Airline A Total

14414

39

$434.00

$6,255,698.24

16090

44

$432.61 $6,960,755.00

-10.4%

Airline B Total

8523

23

$423.76

$3,611,681.35

10242

28

$463.78 $4,750,029.00

-16.8%

Airline C Total

5626

15

$583.81

$3,284,541.82

5504

15

$518.84 $2,855,716.00

2.2%

Airline D Total

10147

28

$554.88

$5,630,410.89

5584

15

$532.29 $2,972,301.00

81.7%

Airline E Total

5112

14

$539.57

$2,758,307.26

1797

5

$616.57 $1,107,971.00

184.5%

COMBINED TOTAL

43822

120

$491.55

$21,540,639.56

Maui Hotels Performance Occupancy ADR RevPAR Wailea/Kihei Submarket Occupancy ADR RevPAR

airlines

YoY Room Nights Change

39217

107

$475.48 $18,646,772.00

2024

2023

YoY Change

65.40%

67.17%

-2.64%

$556.32

$623.49

-10.77%

$363.85

$418.80

-13.12%

65.70%

63.20%

3.96%

$665.49

$719.01

-7.44%

$437.15

$454.54

-3.83%

11.7%

Maui County Travel Stats - July YTD* Visitors Total Arrivals

Maui Flights Domestic International Total Maui Air Seats Domestic International Total Maui Flights by Airline Alaska American Delta Hawaiian Southwest United Total

202 4

202 3

YOY C hange

1,369,728

1,793,756

-23.6%

6,794

8,465

-19.7%

512

710

-27.9%

7,306

9,175

-20.4%

1,380,053

1,718,913

-19.7%

94,651

132,834

-28.7%

1,474,704

1,851,747

-20.4%

-32.4% -13.0% -28.8% -12.8% -10.8% -22.9% -15.5%

*The above data is provided by the Hawaii Tourism Authority (Maui County July 2024 Fac t Sheet) and the Bureau of Transportation Statistics (Detailed Arrival Statistics )

MCH Resort Operating Results

Maui Coast Hotel 2024 Comp Set

Maui Hotel Pipeline 2024 Update Completed: AC, Maui Coast, Hilton Grand Vacation On Hold: Maui Palms, Krausz Kihei Hotel Never received entitlement / Cancelled: Windward, Kahului Shopping Center, Grand Wailea expansion, Garden Inn Wailuku Technology Park Hotels. Controlled by Paramount Hotels

Article & Map from 2019 >

Ten-Year 10-Tear Capital Expenditure Overview 2014 ▪ WiFi Upgrade ▪ Corridor Carpet Renovation 2015 • Elevator Upgrades • Updated Commercial Laundry Equipment • OMS/Opera • Operating Technology Upgrade 2016 • Replace Guest Room Sleeper Sofas • Upgrade Pool Furniture

2022 • Pool Deck Furniture • Additional Van 2023 • Lobby Renovation • Gift Shop • Sprinter Van • Phone System Hardware Upgrade • Equipment

2024 Capital Expenditure HOKU Tower Lobby Renovation

Future Capital Project +$10M HOKU Tower Room Renovation

• Refinance in 2025 • Existing construction loan on WCME Existing bank mortgage on MCH • Lot line adjustment to incorporate both properties into one single LLC

• • • •

Remove shared services agreement One financial statement $170M 10-years I/O

Refinancing Goals