The Hotel Fresno OFFERING MEMORANDUM

3737 N. Blackstone Ave., Fresno, CA 93726

Contact: Bac Tran 714-353-3870

Bactran92887@yahoo.com

Or

Hoang Tran 714-926-2072

Tranhoang_98@yahoo.com

Asking Price: $12,500,000.00

Owners are willing to carry with 50% down payment, 7% interest only, 2 points, 3-year term.

The Tran Family is pleased to present to qualified investors theopportunity to acquire the fee simple interest in the 204-room, The HotelFresno & Conference Center, AKA Four Points by Sheraton, located directly across from the Manchester Mall, Fresno, California.

EXECUTIVE SUMMARY

across from the Manchester Mall, Fresno, California.

The Hotel Fresno & Conference Center is operating as an independent hotel which has the potential opportunity to convert to another brand or to another use such as multifamily residential, student housing, senior living, or assisted living facilities.

There are 3 parcels for this property, 8.85 acres. The current owner obtained a Lot Line Adjustment for an approved 96,000-sqft mixed-use building, with 20,000-sqft retail on the ground floor and 48-apartment units on top.

EXECUTIVE SUMMARYSite:APNs: 435-020-09, 435-020-11, & 435-020-12Acreage: 8.85 +/- Acres

The Hotel was originally developed in 1972 including theSmugglers Restaurant & Banquet facility.

The property was recently operated under the Four Points bySheraton until December 2011 converted to Park Inn by Radissonfranchise March 7,2012. Fully renovated to Sheraton specs. in 2007

Room Amenities:Beautifully decorated rooms & suites -74 rooms with queen beds, 124rooms with King bed, 3 rooms with King bed suites, 3 rooms with sofa, table/ living room.

Free Wireless high speed internet access in all guest rooms with dataports and in public spaces

Fitness room. Refrigerators in all guest rooms. Coffeemakers in all guest rooms. Two phones in each guest room with voice mail options. franchise March 7,2012. Fully renovated to Sheraton specs. in 2007

Park Inn conversion cost approx. $140,000 1st quarter 2012

Approx. 371 parking stalls with additional 60 future park stalls

All New Roofs and upgrades in 2017, cost over $1million, Eight separate free standing 2 story interior-corridor buildings that house all rooms and suites

Laundry room, mechanical room, supply room located in separatebuildings

Smugglers Full Service Restaurant , lounge & Banquet Facilities are being leased to an independent operator.

guest rooms. Two phones in each guest room with voice mail options. Hair dryer, iron & ironing board. Oversized executive desk. Flat screen TV’s with Dish Network. Room Service available

Meeting Accommodations:Complete catering and conference service staff and audio visual team

5,250 sqft of meeting and exhibit space with maximum capacity of 300.

Beautifully appointed boardroom

Mixed-Use EntitlementMixed-Use Building: (APN 435-020-11)A Mixed-Use building entitlement has been obtained from the city of Fresno in 2018 for a 20,000sqft retail on the ground floor and 48-unit apartment complex on top, total of 96,000-sqft.

Parcel MapMixed-Use

Building ParcelAPN: 435-020-11

Hotel ParcelAPN: 435-020-12

Aerial View

Area Map

The Hotel Fresno

Hotel Photoshttps://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM

Hotel Photoshttps://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM

Hotel Photoshttps://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM

Hotel Photoshttps://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM

Hotel Photoshttps://drive.google.com/drive/folders/0BznXCkW3GHqddWgzbW1FMHBaQWM

Fresno Attractions and Events

Below is a list of attractions in Fresno• African American Historical & Cultural Museum of the SanJoaquin Valley• Arte Americas• Club One Casino• Chukchansi Park• Forestiere Underground Gardens• Fresno Chaffee Zoo

Annual events in Fresno• California Classic Weekend (run, walk, bike race held each April)• California Interscholastic Federation (CIF) Track & Field• Fresno Fuego FC Games• Fresno State Bulldogs Games• Grizzly Fest• Order of the Eastern Star Events

• Fresno Convention & Entertainment Center• Island Waterpark• Kings Canyon National Park• Save Mart Center• Sequoia National Park• The Grand 1401• Tower District• Veterans Memorial Museum• Wild Water Adventure Park• Yosemite National Park

• Western Band Association Events• World Agriculture Expo

PRO FORMA STATEMENTJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trailing 12 Months

Days 31 28 31 30 31 30 31 31 30 31 30 31 365Daily Rooms Available 210 210 210 210 210 210 210 210 210 210 210 210 210Rooms Available 6,510 5,880 6,510 6,300 6,510 6,300 6,510 6,510 6,300 6,510 6,300 6,510 76,650Rooms Sold 3,255 3,234 3,255 3,465 4,232 4,095 4,232 4,232 4,095 3,581 3,150 3,255 44,079Avg. Daily Rate 60.00 75.00 75.00 75.00 80.00 80.00 80.00 85.00 75.00 60.00 60.00 60.00 72.08Occupancy Rate (%) 50.00% 55.00% 50.00% 55.00% 65.00% 65.00% 65.00% 65.00% 65.00% 55.00% 50.00% 50.00% 57.51%RevPar 30.00 41.25 37.50 41.25 52.00 52.00 52.00 55.25 48.75 33.00 30.00 30.00 41.45

REVENUERooms 195,300 242,550 244,125 259,875 338,520 327,600 338,520 359,678 307,125 214,830 189,000 195,300 3,212,423Food & Beverages - Lease Restaurant/Banquet 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,000Parking 0 0 0 0 0 0 0 0 0 0 0 0 0Private Bar & Gift Shop 0 0 0 0 0 0 0 0 0 0 0 0 0Spa 0 0 0 0 0 0 0 0 0 0 0 0 0Other Operated Departments 0 0 0 0 0 0 0 0 0 0 0 0 0Transportation - None 0 0 0 0 0 0 0 0 0 0 0 0 0Rentals - None 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL REVENUES 204,300 251,550 253,125 268,875 347,520 336,600 347,520 368,678 316,125 223,830 198,000 204,300 3,320,423

DEPARTMENTAL EXPENSES 0Rooms & Supplies 60,543 75,191 75,679 80,561 104,941 101,556 104,941 111,500 95,209 66,597 58,590 60,543 995,851

Description

Rooms & Supplies 60,543 75,191 75,679 80,561 104,941 101,556 104,941 111,500 95,209 66,597 58,590 60,543 995,851Breakfast 7,812 9,702 9,765 10,395 13,541 13,104 13,541 14,387 12,285 8,593 7,560 7,812 128,497Private Bar & Gift Shop 0 0 0 0 0 0 0 0 0 0 0 0 0Spa 0 0 0 0 0 0 0 0 0 0 0 0 0Other Expenses (Bonus) 1,750 1,750 2,000 2,000 2,150 2,150 2,250 2,250 2,350 2,350 1,750 1,750 24,500Commissions 3,906 4,851 4,883 5,198 6,770 6,552 6,770 7,194 6,143 4,297 3,780 3,906 64,248

TOTAL DEPARTMENTAL EXPENSES 74,011 91,494 92,326 98,154 127,402 123,362 127,502 135,331 115,986 81,837 71,680 74,011 1,213,096

TOTAL DEPARTMENTAL INCOME 130,289 160,057 160,799 170,721 220,118 213,238 220,018 233,347 200,139 141,993 126,320 130,289 2,107,326

UNDISTRIBUTED EXPENSES 0Administrative & General 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000Marketing/Employee Incentive 7,812 9,702 9,765 10,395 13,541 13,104 13,541 14,387 12,285 8,593 7,560 7,812 128,497Franchise Fees 9,765 12,128 12,206 12,994 16,926 16,380 16,926 17,984 15,356 10,742 9,450 9,765 160,621Facilities & Maintenance 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000Energy/Utilities 24,516 30,186 30,375 32,265 41,702 40,392 41,702 44,241 37,935 26,860 23,760 24,516 398,451

TOTAL UNDISTRIBUTED EXPENSES 75,593 85,516 85,846 89,154 105,669 103,376 105,669 110,112 99,076 79,694 74,270 75,593 1,089,569

GROSS OPERATING PROFIT 54,696 74,541 74,953 81,568 114,448 109,862 114,348 123,235 101,063 62,299 52,050 54,696 1,017,757

Management Fees 5,859 7,277 7,324 7,796 10,156 9,828 10,156 10,790 9,214 6,445 5,670 5,859 96,373Earthquake Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0Property Taxes 0 0 0 67,650 0 0 0 0 0 0 0 67,650 135,300Insurance 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000

EBITDA 44,670 63,098 63,462 1,955 100,126 95,867 100,026 108,278 87,682 51,687 42,213 (22,980) 736,085

EBITDA % 0Cumulative EBITDA % 0Cumulative EBITDA $ 0

Interest Expense-Other 0 0 0 0 0 0 0 0 0 0 0 0 0Rental/Lease 0 0 0 0 0 0 0 0 0 0 0 0 0

NET FROM OPERATION 44,670 63,098 63,462 1,955 100,126 95,867 100,026 108,278 87,682 51,687 42,213 (22,980) 736,085

PROPERTY OVERVIEWCalifornia High-Speed Rail Development

Officials of the California High-Speed Rail Authority say a straight stretch throughthe San Joaquin Valley connecting Fresno and Bakersfield will be the firstcompleted. Regional Manager Thomas Tracy told the Visalia City Council that the800-mile project would be built in eight phases and is scheduled for completionby 2029. The first segment, which began construction in 2015, will stretch fromBakersfield to Merced on an initial run from San Diego to Sacramento. At its full220 mph speed, the normally three-hour car trip from Merced to Bakersfield wouldtake approximately 45 minutes or less. The map below indicates the location ofthe proposed and APPROVED station in Fresno, which is located approximately 8miles from the Subject Motel 6. Local officials estimate that an additional 20,000miles from the Subject Motel 6. Local officials estimate that an additional 20,000jobs will be created annually during the construction of the Merced to Fresnosection. An additional 67,000 jobs annually are estimated for creation during theremaining phases of construction.

Additional improvements will be completed in the Fresno region due toconstruction activity related to the high-speed rail project, including secondarytransportation and roadway improvements to over- and underpasses, pedestrianand motor vehicle safety improvements, and an overall beautification of theregion. New bridges, new asphalt, and local road enhancements, will occuraround the primary construction activity generated by the larger project.

King’s Canyon National ParkKings Canyon National Park is a national park in the southern Sierra Nevada,east of Fresno, California. The park was established in 1940 and covers461,901 acres. It incorporated General Grant National Park, established in1890 to protect the General Grant Grove of giant sequoias.The park is north of and contiguous with Sequoia National Park; the two areadministered by the National Park Service jointly as the Sequoia and KingsCanyon National Parks.

Yosemite National ParkYosemite National Park is a United States National Park spanning eastern

PROPERTY OVERVIEW

Yosemite National Park is a United States National Park spanning easternportions of Tuolumne, Mariposa and Madera counties in the central easternportion of the U.S. state of California. The park, which is managed by theNational Park Service, covers an area of 747,956 acres and reaches acrossthe western slopes of the Sierra Nevada mountain chain. Over 3.7 millionpeople visit Yosemite each year, most spend time in the seven square milesof Yosemite Valley. Designated a World Heritage Site in 1984, Yosemite isinternationally recognized for its spectacular granite cliffs, waterfalls, clearstreams, Giant Sequoia groves, and biological diversity. Almost 95% of thepark is designated wilderness.Yosemite is one of the largest and least fragmented habitat blocks in theSierra Nevada, and the park supports a diversity of plants and animals. Thepark has an elevation range from 2,127 to 13,114 feet and contains five majorvegetation zones: chaparral/oak woodland, lower montane forest, uppermontane forest, subalpine zone, and alpine. Of California’s 7,000 plant species,about 50% occur in the Sierra Nevada and more than 20% within Yosemite.There is suitable habitat or documentation for more than 160 rare plants in thepark, with rare local geologic formations and unique soils characterizing therestricted ranges many of these plants occupy.

California State University, FresnoCalifornia State University, Fresno (Fresno State) is a public comprehensive

university and part of the 23 campus California State University system.It is located at the northeast edge of Fresno, California, approximately 8miles from the subject Motel 6.

The university has a total enrollment of more than 23,400 undergraduate,graduate, and post-baccalaureate students. It offers bachelor’s degreesin 60 areas of study, 45 master’s degrees, 3 doctoral degrees, 12certificates of advanced study, and 2 different teaching credentials.The university’s unique facilities include an on-campus planetarium,on-campus raisin and wine grape vineyards, and a commercial winery,where student-made wines have won over 300 awards since 1997.

PROPERTY OVERVIEW

where student-made wines have won over 300 awards since 1997.Members of Fresno State’s nationally ranked Top 10 Equestrian Teamhave the option of housing their horses on campus, next to indoor andoutdoor arenas. Fresno State has a 50,000-square-foot (4,600 m2)Student Recreation Center and the third-largest library, in terms ofsquare footage, in the California State University system.

The greater campus extends from Bulldog Stadium on the westboundary to the Save Mart Center and the under-construction CampusPointe and Highway 168 on the east side. Vineyards and orchardsdesignate the northern boundary of the campus, while Shaw Avenuedesignates the southern edge.

The 388 acres main campus features more than 46 traditional andmodern buildings. An additional 34 structures are on the 1,011-acreUniversity Farm, which includes the student-run Equine, Swine, Beef,Dairy, Poultry, and Sheep Units as well as several hundred acres ofcattle rangeland. It is considered one of the most modern and bestequippedagricultural facilities in the West. Fresno State was officiallydesignated as an arboretum in 1979 and now has more than 4,000trees on campus.