The purpose of his assignment is to evaluate the lodging ... purpose of this study is to forecast the business levels, ... indicators support the viability of the proposed project

Hotel Feasibilty Study Homestead, FLMiami-Dade County

This report is provided in accordance with and subject to the RK Consulting Services, Inc. Agreement. It is designed to be accurate and authoritative, based on information obtained from third parties that we believe to be reliable. RK Consulting Services, Inc. does not, however, warrant or guarantee in any way the accuracy, completeness or fairness of the information provided. This report and the information contained herein are confidential and intended for our individual client's specifically authorized use.

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Hotel Feasibilty Study Homestead, FLMiami-Dade County

Table of Contents : Page Section NumberSummary of Work

Description of the Assignment 1Scope of Work 2Executive Summary 3

Valuation of AssetValuation Method 5Valuation of the Subject Property Year 5 Hotel Operations 6

Site DescriptionDescription of the Site and Location 8Dimensions of Sq Ft for Hotel 9Site Plan and Photos 10

Local Area Description and AttractionsCity of Homestead 12Miami Dade County 14Florida Keys 15Homestead/Miami Speedway 16

Hotels and Resorts in Competitive SetMap of Local Area Hotels 18Description of Local Area Hotels 19Rating Star System 22Rating of Competitive Set 23Trend Report Competitive Set Smith Travel Research (STR) 24STR Trend Report Analysis Occupancy Analysis 25 Average Daily Rate (ADR) Analysis 26 Revenue Per Available Room (RevPAR) Analysis 27

Travel Markets for HotelBusiness Travel Market 28Leisure Travel Market 30

Hotel Pipeline Hotel Segmation Comparisions 31Summary of Closest Hotel by Type 32Hotel Pipeline Distribution 33Summary Supply 34Construction Pipeline 35Future Hotel Projects Details 36

Tourism and Economic InformationLocal Economic and Demographic Information 38Average Annual Percent Change Employees 39Average Payroll per Employee 40Hospitality Percentage of Workforce 41Number of Employees in Miami Dade County 42Total Passengers Arrivals and Hotel Demand Miamia Area 43Extended Stay Market Information 44

Estimated Construction CostsAnalysis of Construction Costs 45 Estimated Construction Cost Sleep Inn 47 Estimated Construction Cost MainStay Suites 48 Combined Estimated Construction Costs 49

10 Year Proforma AnalysisNotes to 10 Year Proforma Sleep Inn ® 60 Rooms 50 Schedule A (60 room Sleep Inn ® ) 10 Year Proforma 52Notes to 10 Year Proforma MainStay Suites ® 60 Rooms 54 Schedule A (60 room MainStay Suites ® ) 10 Year Proforma 55Schedule C Combined 10 Year Profroma 57Return Analysis 59

Sleep Inn ® and MainStay Suites ® Combination Hotel 2 Pgs.Choice Hotels International Publication


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380 Lexington Ave 15 West Montauk Hwy Suite 1700 Suite 150 New York, NY 10168 Hampton Bays, NY 11946 Phone: (212) 551-1108 Phone: (631) 728-2300

www.rkconsulting-inc.com

Description of Assignment The enclosed Report describes the projections regarding the proposed project of constructing an Extended Stay service/standard Inn Type combo hotel on the site located in Homestead FL. The reader should be aware that the report is based upon numerous estimates, projections and assumptions developed from our research of the area, as well as our own experience as hospitality professionals. The basis of the estimates and assumptions for the projected occupancy and average rate are stated in the Report. In reviewing the Report, it should be noted that changes that affect the estimates and assumptions upon which this Report is based, as well as unanticipated events and circumstances, inevitably will occur, and that the actual results may differ materially from those in the Report. Moreover the estimates and assumptions used in the Report are based upon conditions as of the date of the Report, which, of course are subject to change thereafter.

The purpose of this assignment is to evaluate the lodging market in the vicinity of Homestead, Florida located within the Miami Dade County area, in order to forecast the business levels, including occupancy and average rate of two different proposed hotel concepts on the site located adjacent to the Florida Turnpike on the northeast side prior to Exit 2 Campbell Dr Homestead FL on a vacant 1.75 acre site. The purpose of this study is to forecast the business levels, including occupancy and average rate of the proposed hotel on a site. We will evaluate the development of an Mixed Brand Hybrid Product from the Choice Hotels International on the site. The Hybrid product being presented in this study is a hotel with two brands under one roof, Sleep Inn and MainStay Suites. The multi-use hotel will include Retail Lease spaces of 7,500 Sq Ft and a 5,800 Sq Ft Banquet space to be rented out for functions using an outside caterer to provide the food and beverage service. The project will consist of the two brands sharing the same building totaling 120 Hotel Guest Rooms. Each brand will have 60 rooms and are detailed below:

A. The Sleep Inn Brand will have 60 Guest rooms averaging 299 Sq Ft each B. The MainStay Brand will contain 60 Guest Room and Suites. Each room will have a

full size refrigerator, a two plate hot plate and a dishwasher. Additionally each unit in the MainStay portion of the hotel will have silverware, glassware and flatware as part of the kitchen area.

C. Additionally in this building there will be public space consisting of retail space of 1,050 Sq Ft, a Leased Full Service Restaurant, Business Center and Boardroom of 870 Sq Ft, and a Spa/Fitness facility of 900 Sq Ft.

The proforma created for this study was created using specific financial information of the area hotels provided by Smith Travel Research. The assumption taken is the hotel proposed for the site will be the highest level of service for hotels in the area. Also included is an analysis of the surrounding area hotels. The market study concludes with projections of the proposed subject property’s occupancy and average rate. All the information was collected and analyzed by RK Consulting Services, Inc. and its support staff. Data such as site location, proposed use of property, and identification and so forth was supplied by the Client.

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http://www.rkconsulting-inc.com/

Confidential 10/22/2013

Scope of Work The scope of work for this phase of the project does not include a detailed investigation of zoning issues, local building ordinance and any legal and/or physical issues that may arise over the proposed development of the site. For the purpose of this study it is assumed that the proposed development of the hotel can legally and physically move forward along the guidelines set forth. This Report and the Projections herein assumes that the construction of the hotel on the proposed site can be completed in about 14 months from the current period. It should be noted that the following study or the scope of the work of this study does not include detailed verification of this assumption. However, based our general knowledge of and experience in the lodging industry, the construction timing estimates of roughly 12 to 18 months including the planning and site plan submission phases is sufficient to complete this project. That timeline is considered to be at the around the norm of industry standard of building an extended stay hotel. Additionally it should be noted the detailed plans and specifications for the proposed site and related properties were not available for review and consideration upon the date of this Report because a hotel brand provider and/or third party hotel operator has not been selected at this point in time. It is the purpose of this study to assist in the selection process. However, the client has expressed the interest of developing and marketing the concept of the Hybrid Two Brand level hotel on the site. The two brand service level concept utilizes standardized products, and the hotel is expected to feature consistent design criteria, construction quality, and guest amenities offerings, market positioning, etc., it is believed the scope, class and quality of the proposed hotel is adequately presented for the purposes of this analysis and research, and conclusion drawn hereafter. The purpose of this study is to examine the need for the proposed hotel and determine if that need justifies adding 120 hotel rooms to the existing and planned area hotel inventory. This study will examine if it is a viable and profitable option for a potential developer as well as developing partners who may express an interest in participating in the project with the client. This assertion is critical for the focus of this study to establish the market position of the hotel, based on the current market position of the existing hotels in the local area. In addition to a description of the area, there is a complete analysis of four area hotels, including quoted rates, amenities offered, and business levels. The business levels analysis are established as a group of competitive hotels of the four direct competitive hotels in the area. Also included in the scope of work is identifying any new hotel projects in construction or planning stages or recently opened hotel projects in the area and impact of those projects. The report will consider the justification and benefits of moving forward with the proposed development as well as identify potential challenges and barriers to success, specific to the location and market. This report also presents the benefits of moving forward with the hotel and the need if any for the project in the first place. Additionally, included in this report are whatever challenges may exist that may prevent the hotel from succeeding.

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Executive Summary Discussion:

The City of Homestead FL and the surrounding radius area of 10 miles have an estimated 12 hotels with 2,200 rooms. Throughout the research and gathering of information for this project, certain indicators support the viability of the proposed project of an Extended Stay hotel on the 1.5 acre site identified in this study.

The first indicator is the tremendous opportunity which may present itself with operating an Extended Stay hotel in this area. At the time of this study there are were only 5 hotels in the City of Homestead, FL. The Courtyard, Hampton Inn and Suites, and Value Place Inn are both considered to be select service. The Courtyard is the newest hotel in the area opening in July 2012. The Courtyard jumped to number 2 out of 16 hotels in the Homestead/Florida City area with travelers on “TripAdvisor.com”. The Hampton Inn and Suites Hotel opened in September 2009 and quickly jumped to Number 1 on “TripAdvisor.com”. These rankings of the newer hotel properties in the area, seem to indicate that a newly opened hotel would fare very well in this market.

The opportunity of bringing another hotel to the area coupled with the increased demand for rooms in the area; makes the concept of building the hotel rather attractive. One of the largest indicators for the hotel’s success is the close proximity to the Homestead-Miami Speedway. The close proximity to the speedway where there are many weekends throughout the year when major racing events including the final three races of the NASCAR Cup Series, the Sprint Cup Series, Nationwide Series, and the World Truck Series. A meeting with the President of the Homestead-Miami Speedway, Matthew Becherer, resulted in the obvious need for the hotel. The President stated many of the estimated 90,000 fans attending the events have to stay in the Everglades area of Florida or closer to Miami because of the lack of lodging facilities in Homestead. At the time of the meeting Mr. Becherer did indicate the Speedway would entertain a strategic alliance with a new constructed hotel in the area.

The second indicator is the Future Valuation at year 5 of hotel operations the subject hotel. As reflected on Pages 6 and 7 the future valuation reflects extremely well even when considering a very conservative approach on the Cap Rate of 9.0% compared to The Select Service and Extended Stay market reporting an average of 8.1% on similar commercial transaction in the same type of facilities. The Residual Value on the on the Cap Rate and on the Year 5 Net Operating Income (NOI) of $1.8 Million is $19.9 Million Dollars. The initial Project estimates to construct the hotel is $11.9 Million Dollars.

Though the market is currently light in the area such as corporate business travel; there is a substantial indicator that may change in the very near future. Florida Power and Light’s (FPL) plan to build two new nuclear reactors in Turkey Point which is within a short distance of the site location. (See article on Pg. 26) As a result of the project, FPL is contracting with 5,000 outside contractors to work on the reactors outage over the next 5 to 15 years in to the area. As the hotel room inventory stands currently in the area and the pipeline construction in the upcoming years there will not be enough hotel rooms to support the influx of contractors to the area. For more information on the project see the attached study “The Fiscal and Economic Impacts of the FPL’s Turkey Point Units 6 and 7 Project” at the end of this report.

Another indicator is the pipeline growth which is occurring in the area. There is very little as far as new development in the area according to a Hotel Pipeline Report obtained from Smith Travel Research (STR). The report reflects an additional 533 rooms may be brought into service over the

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Executive Summary Discussion (Cont’d):

next 3 years. Our research reveals 170 rooms of the 160 rooms in the Planning or Pre-Planning stages. There is a rumor of a potential Towne Place Extended Stay hotel possibly being constructed by the same developer of the Hampton Inn and Suites in Homestead. However, there was no confirmed research to support that rumor at the time of this study being produced. Any additional project of the renovations to add 2 more floors to the Hampton Inn and Suites was confirmed in our research and the details are highlighted on Page 35 and 36 of this Study. Even with 3 projects in the pipeline, it is the opinion of this agency the demand will be higher than the supply can support with the addition of the FPL projects.

Based on the analyses set forth already and throughout the remainder of this narrative, we have concluded that the highest and best use of the subject property is as operated as an Extended Stay/Inn type combo Hotel Our conclusions were based on the estimate of the stabilized net income in year 5, the capitalization rate we applied to convert the income figure into an initial estimate of value, and the estimated construction cost. Overall it is the professional opinion of this agency that there exists a strong opportunity in this marketplace for the development of the hotel detailed in this report.

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Valuation Methodology

The income capitalization approach is based on the principle that the value of a property is indicated by its net return, or what is known as the "present worth of future benefits." The future benefits of income-producing properties, such as hotels, are the net income estimated by a forecast of income and expense along with the anticipated proceeds from a future sale. These benefits can be converted into an indication of market value through a capitalization process and discounted cash flow analysis.

The forecast of income and expense is expressed in nominal or inflation-adjusted dollars for each of first three years. Typically, the stabilized fifth year is intended to reflect the anticipated operating results of the property over its remaining economic life, given any or all applicable stages of build-up, plateau, and decline in the life cycle of a hotel. Thus, income and expense estimates from the stabilized year forward exclude any abnormal relationship between supply and demand, as well as any nonrecurring conditions that may result in unusual revenues or expenses.

Capitalization rates derived from investor surveys generally support these trends, though we note that a disconnect remains between cap rates for the full service and luxury product category based on what investors say they want to yield (survey data) and the rates of return derived from actual sales transactions. Sales transaction data provides ample evidence of Select Service and Extended hotels continuing to sell in the 2.4% to 13.0% capitalization rate range with an average of 8.4%. The above chart illustrates capitalization rates for the four product types set forth the in the Lodging Industry Investment Survey, which reports cap rates based on surveys of investors the second and fourth quarter of each year. The Second Quarter data for 2013 has yet to be released, so the 4th quarter data is being utilized for this study.

Rates of return, derived from actual sales transactions, are starting to trend up once again. After a rise in rates in 2009 due to the financial crisis and recession, capitalization rates markedly declined as buyers acquired properties with depressed income levels, betting on significant NOI recovery going forward. With the major rebound in NOI already behind us, and the future clouded in uncertainty, capitalization rates are starting to rise. Brokers indicate that the bid/ask gap between buyers and sellers has once again widened, due to different perceptions of the risk of future hotel earnings.

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2012 2011 Overall Cap Rate Overall Cap Rate

Source Average Average Lodging Industry Investment Council Survey 1.6% - 16.3% 0.03% - 30.0% Limited Service Hotels 9.70% 9.50% 4th Quarter 2012 Lodging Industry Investment Council Survey 2.4% -13.0% 3.2% -12.6% Select Service Hotels/Extended Stay 8.10% 7.70% 4th Quarter 2012 . Lodging Industry Investment Council Survey 2.0% -11.7% 0.05% -10.9% Full Service Hotels Including Resorts 5.80% 5.40% 4th Quarter 2012 Source: HVS San Francisco

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Valuation of the Project at Year 5 of Hotel Operations:

In taking a conservative approach to this project a capitalization rate of 9.0% was used to determine the future value in year 5 based on the 10 Year Proforma and a 5 Year Return Analysis conducted on the Stabilized year 5. (See Page 59) The assumption is that Equity Portion being provided for the funds for the transaction for a secured 20% equity position in the project.

The subject hotel shows a tremendous future potential utilizing the determined cap rate of 7.2%. The Residual Value on the hotel based on the 9.0% Cap Rate and on the Year 5 Net Operating Income (NOI) of $1.8 Million Dollars is $19.9 Million Dollars. This value would return the developer of the project a net profit of $15.3 Million over the first 5 years after the Debt was served and the 20 Year Construction Loan balances of $8.0 Million is paid resulting in a $12.9 Million Net Cash Flow as noted below in Table B

As noted above in Table B a Net Profit of $12.9 Million in Year 5 will remain after the reduction of the payment of mortgage balance of 7.9 Million Dollars leaving enough of a capital investment required to refinance the property. This amount includes a Surplus of Cash from year 1 to 5 after the Debt has been serviced for the first 5 years of hotel operations.

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Sleep InnMainStay

HotelTable A Year 5Equity Contribution 2,373,022$ Cash Available for Debt Total 7,273,321Annual Debt Service (3,917,693)Net Operting Income Yr 5 1,789,448

Surplus after Debt Year 5 3,355,628Residual Value 19,882,751Mortgage Balance (7,991,213) Net Cash Flow 15,247,165$

Sleep InnMainStay

HotelTable B Year 5Net Cash Flow 15,247,165$ Equity Investment Amount (2,373,022)$ Total Profit 12,874,143$ COPYRIGHTED


Valuation of the Project Year 5 Leveraged Rate of Return: The Internal Rate of Return (IRR) is a financial metric for cash flow analysis, often used for evaluating proposed investments, funding requests, acquisitions, or the results of business case analysis. Like several other cash flow metrics (such as net present value, payback period, and return on investment), IRR takes an "investment view" of expected financial results. This means, essentially, that the magnitude and timing of cash flow returns are compared to the magnitude and timing of cash flow costs. Each of these financial metrics compares returns to costs in its own way and each carries a unique message about the value of the investment. Also known as the return on investment, the Equity Multiple is the sum of the total money (distributions and appreciation upon sale) returned to an investor over the period of 5 years divided by the investor's initial investment. Most investors seek at least a 1.25 residual equity multiple for investment projects, and at least a 1.5 overall equity multiple including the investor distributions.

In Table C below the Leverage Internal Rate of Return and the Equity Multiple is calculated. The rate of return that is established on the next page in Table C is 50.7% based on the Year 5 Valuation of 19.9 Million Dollars. This works out to an annual rate of return of 4.6% for the 5 year scenario and 5.2% for the 10 year Scenario. So the longer the equity partners stay in the deal the better the return on the investment.

Typically a Leveraged IRR of 15.0% would be the measuring qualifier to consider a project of this scope as a viable development. The Leveraged IRR as shown in table C is more than three times that amount.

Another factor is the increase in Equity Cash Multiple is almost two times (6.4) greater the return of the Equity Contribution for the High Risk. This indicator means the project will not only return the initial equity investment of $2.4 Million; it will also return an additional $12.9 Million in Net Profit over and above the equity investment based on the projections and valuation method used. Obviously the in review of the projections and valuations, the project appears to have a huge potential of financial success.

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Sleep InnMainStay

HotelTable C Year 5Equity Contribution 2,373,022$

Net Profit 12,874,143$ Leveraged IRR 50.7%Equity Cash Multiple 6.4

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Description of the Site, and Area Location The 1.75 acre site is located at near Exit 2 on the Homestead Extension of the Florida Turnpike in Homestead FL. Homestead is located approximately 25 miles north of the Upper Keys of the Florida Keys. The nearest local airport is Miami International Airport (MIA) which is 35 miles northeast of site location. The major artery in the vicinity of the proposed site is the Florida Turnpike via Exit 2 Campbell Dr. Homestead. To access the site location traveling west to Exit 2, motorist must make a turn from the exit on to Campbell Dr and proceed to Kingman’s Rd to access the site. Access to the site seems very accommodating and does not pose any impact as far as traffic flow to the site. Right across from the site is a shopping center featuring big box specialty stores such as Staples and Sports Authority Sporting Goods as well as several themed eateries. Below is a street level view of the site location.

In the City of Homestead the zoning for a hotel is classified as R4 Zoning. The following page has a breakdown of the requirements for Parking for the R4 Zone. The actual site plan on Page 8 has proposed a larger number of parking spaces allowed. (225 vs. 55 Required). The purpose for that is to allow for additional parking for the Banquet Guests who will be attending a function at the hotel.

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Dimensions of Sq Ft for Hotel

Sq Ft Conversion for HotelSq Ft/ Acre Acres Total

Total Sq Ft 43,560 1.73 75,530

MainStay Configuration for Hotel20% Housekeeping MainStay

Gross Corridors n Second Floor Rooms Average SizeArea Elevators/Stairs Unused Space Net Sq Ft Hotel Rms Per Room

Second Floor 10,500 2,218 1,046 7,236 18 402Third Floor 10,500 2,193 8,307 21 396Fourth Floor 10,500 2,152 8,348 21 398Totals 31,500 6,563 1,046 23,891 60 398

Sleep Inn Configuration for Hotel20% Sleep Inn

Gross Corridors Rooms Average SizeArea Elevators/Stairs Net Sq Ft Hotel Rms Per Room

Second Floor 7,580 1,652 5,928 20 296Third Floor 7,580 1,652 5,928 20 296Fourth Floor 7,580 1,496 6,084 20 304Totals 22,740 4,800 17,940 60 299

Corridors Public SpaceCombined Floors Elevators/Stairs See Note** Net Sq Ft Total Rooms Average First Floor 18,080 2,712 15,368 - Sq FtSecond Floor 18,080 3,870 13,164 38 346.42 Third Floor 18,080 3,845 14,235 41 347.20 Fourth Floor 18,080 3,648 14,432 41 352.00 Totals 72,320 11,363 41,831 120

(**Note - Breakdown of Public Space) Retail Lease Meeting Lobby Public Space Space Space BreakfastFirst Floor 15,368 7,500 5,800 2,068

R4 ZoneRequired Parking Sq Ft/space1 space first 20 rooms 20 250 5,000 1 space for every 4 rooms > 20 15 250 3,750 Total Sq Ft Required 35 8,750

Proposed Parking Spaces Sq Ft perParking (shared) 225 250 56,250 Total Sq Ft Proposed 56,250

Parking Sq Ft 56,250 Exterior Pool 1,200 Footprint 18,080 Required Sq Ft 75,530 Available (75,530)

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Page 9This report is provided in accordance with and subject to the RK Consulting Services, Inc. Agreement. It is designed to be accurate and authoritative, based on information obtained from third parties that we believe to be reliable. RK Consulting Services, Inc. does not, however, warrant or guarantee in any way the accuracy, completeness or fairness of the information provided. This report and the information contained herein are confidential and intended for our individual client's specifically authorized use.

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Site Plan provided by Client

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Photo of Site provided by Client


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City of Homestead: Homestead is a city in Miami-Dade County, Florida, United States nestled between Biscayne National Park to the east and Everglades National Park to the west. Homestead is primarily a Miami suburb and a major agricultural area.

Homestead was incorporated in 1913 and is the second oldest city in Miami-Dade County next to the city of Miami. It is located approximately 35 miles (56 km) southwest of Miami, and 25 miles (40 km) northwest of Key Largo. The name originates from when the Florida East Coast Railway extension to Key West was being built. The rail line was passing through an area opened up for homesteading, and as the construction camp at the end of the line did not have a particular name, construction materials and supplies for the workers were consigned to "Homestead Country", shortened to "Homestead" by the engineers who mapped the area.[3] The population was 31,909 at the 2000 census.

The area south of Miami was opened to homesteaders in 1898. A path known as the Homesteader's Trail was the only route in and out until railroad and oil magnate Henry Flagler extended his railway south to the area. Later, Flagler extended his railroad from Homestead to Key West and the Overseas Railroad was completed in 1912. Homestead's major source of revenue at that time was agriculture, with the harvest of winter vegetables and tropical fruits being shipped all across the country. Due to its strategic location, the Homestead area prospered with the Florida real estate boom in the early 1920s.

In 1926 Mother Nature unleashed her fury with a major hurricane, destroying Flagler's overseas railway. In 1945 another severe hurricane struck and demolished the World War II airfield at what is now Homestead Air Reserve Base. Almost 50 years later, in 1992, Hurricane Andrew blew through Deep South Miami-Dade County leaving a wave of destruction in its path. True to the pioneer spirit that created the area, the people of the Homestead and Florida City communities picked up and rebuilt and restored. The community has focused on preserving and renovating historic buildings, establishing new businesses and creating a historic district replete with charming specialty shops and restaurants. Many Mediterranean revival structures in downtown Homestead have been refurbished and adapted for new uses. The antique shops along Krome Avenue form a charming district, one that is part of a designated Main Street Community of the Florida Bureau of Historic Preservation. Homestead's population is increasing as its ethnic composition becomes more diverse. A revitalized business district, a thriving agricultural industry, a 280 acre Park of Commerce and surrounding attractions make the Homestead/ Florida City area a popular destination for newcomers. New housing developments complement charming older neighborhoods. Innovative schools, lushly landscaped parks and renovated shopping areas enhance the quality of life.

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City of Homestead (Cont’d): Economy The area's strategic location makes it a viable destination for visitors. The business generated by tourism to the tropical South is a key factor in the economic stability and growth of the community. The area has attracted enterprises such as the Homestead Miami Speedway, Wal-Mart, Sedano's, Home Depot, Office Depot and many more Homestead/Florida City has moved into a technological economy. According to Miami-Dade County and the University of Florida, Miami-Dade County's population will increase by over 500,000 by 2005. To provide employment for the increasing population, Miami-Dade must target industries that accelerate both the growth of above average income and entry level jobs. The industries that are "deemed best-suited" are biomedical, film/entertainment, financial services, information technology, international commerce, telecommunications and the visitor industry. High-paying jobs in fast-growing industries in turn create others at all levels that cut across governmental, social, and ethnic, economic and political constituencies. The first phase of the business incubator center is operating in Homestead and can assist soon-to-be entrepreneurs and new business owners in the basics to help them succeed. A grant from NASA and assistance from Miami-Dade Community College is making it possible. Public and private resources that exist helps businesses prosper. These include the Vision Council, the Perrine-Cutler Ridge Council and the Beacon Council. Commerce & Trade There are lucrative incentives for businesses that locate in the Enterprise and Empowerment zones, in which a portion of the greater Homestead and Florida City area lie. There is talk of a water-theme park coming to the area and the future development of the property adjacent to the Homestead Air Reserve Base is seen as a contributing factor in the economic health of south Miami-Dade County. The area's new industries offer big-city employment opportunities within a small-town environment. Office Depot, Home Depot and Wal-Mart have built stores along the US I corridor in Florida City, providing hundreds of local jobs. Tourism Tropical South Florida's warm sunny winters bring in millions of visitors every year. With the sprawling expanse of the Everglades to the west, the pristine Biscayne National Park to the east, the glitz and glamour of Miami to the north and the Florida Keys to the south, the greater Homestead/ Florida City area plays host to many visitors, some who decide they want to make this their permanent home.

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Miami-Dade County:

From the coral reefs to the Everglades the unique subtropical environment of South Florida makes this area unlike any other in the United States. Four hundred years ago the area was a center of international rivalry between the English and French to the north and the Spanish to the south. When the United States gained possession of Florida, the major industry was “wrecking” – living off the spoils from shipwrecks caused by sailing too close to the coral reefs. Early settlements were located near the Miami River and Biscayne Bay.

Juan Ponce de Leon visited the area in 1513. Two years after founding St. Augustine, Spanish Admiral Pedro Menendez de Aviles established the first European mission on the Miami River’s north bank in 1567. Hostile Indians and mosquitoes soon forced them to leave. The Spanish controlled Florida for the next 250 years, bringing with them modern weapons and diseases that eventually caused the Tequesta’s to vanish. Spain sold Florida to the United States for five million dollars in 1821. By 1830 the Bahamian lands along the river were purchased and became a slave plantation. A barracks built by the slaves was relocated to downtown’s Lummus Park in the 1920s.

The modern era began with the arrival of Henry Flagler’s railroad in 1896. A system of drainage canals began to crisscross the area after the turn of the century. The destruction of mangroves and draining swampland created new land for settlers. In the 1920s a real estate boom changed the area as new subdivisions and tourist resorts were built. From one winter season to the next the City of Miami changed so rapidly that visitors remarked that it had “grown like magic” and Miami came to be known as the “Magic City.”

During World War II the military brought thousands of troops to the area for training. When the war ended many returned with their families to live here permanently. A growth surge in population followed the war and the number of tourists began a steady increase as advancements in transportation helped Miami-Dade become a year-round resort.

In the 1960s thousands of refugees from Cuba began coming into the area. In the 1990s Haitians fled their homeland to come here seeking a better life. Emigration helped the County’s population surpass one million in 1962. Today many different ethnic groups and cultures live in this modern metropolitan community.

When European ships first arrived on the South Florida coast Native American peoples called the Tequesta already inhabited the area. As these animals became extinct, the people turned to smaller game, along with fish and shellfish. Miami-Dade County’s archaeologist has uncovered evidence of these early peoples. The county is one of a very few to have its own archeologist on staff.

In 1998 archaeologists uncovered the “Miami Circle,” a series of holes cut into the oolitic limestone forming a 38-foot diameter circle located on the south side of the mouth of the Miami River. Radiocarbon testing of artifacts found at the site suggests that it is about 2,000 years old and that it served as a ceremonial site long after the arrival of the Europeans.

On August 24, 1992 one of the country’s worst disasters caused more than $20 billion in damage when Hurricane Andrew hit Miami-Dade County.

Since that time communities have been rebuilt and today tourism and transportation continue to be the major local industries. Today’s Miami International Airport helps make the county the North American gateway to Latin America and the Caribbean.

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Florida Keys:

The Florida Keys have become a popular destination for Americans looking for a tropical vacation without leaving their own country. The Florida Keys can be considered the American Caribbean and features all the same amenities as other island destinations such as world class Florida Keys fishing, scuba diving and snorkeling, boating, sailing, kayaking and eco-tours.

The Florida Keys are casual, relaxed, and dedicated to preserving their laid-back nature. The Florida Keys stretch some 200 sun-drenched miles from Biscayne Bay to the Dry Tortugas, encompassing innumerable islands, reefs, lakes, bays, and beaches. The largest of the Florida Keys is the first Key – Key Largo. The most famous of the Florida Keys is Key West - the last Key in the string of islands. The Florida Keys are linked by 42 bridges scattered along the 126-mile Overseas Highway. The Florida Keys environment ranges from the fragility of America's only living coral reefs to the seemingly impenetrable mangrove fortresses of the back country; crystal-clear aqua-marine waters beckon you to explore their living tapestry of undersea life.

The Florida Keys are broken into three main sections - the Upper Keys, the Middle Keys and the Lower Keys. The Upper Keys is from MM 108 to 65 and is where Key Largo, Tavernier, and Islamorada (the "Village of Islands") are located. The Middle Keys is from MM 64 to MM 40 and includes the city of Marathon and the 7-mile bridge. Then the Lower Keys is from MM 40 to 0 and includes Bahia Honda, Big Pine Key, Key West and a few Keys in between like Little Torch Key, Ramrod Key, Cudjoe Key and Summerland Key. Each area of the Florida Keys is unique to itself. The Upper Keys are closest to the site location.

Upper Keys The Upper Florida Keys are well-known for the two things: Scuba Diving and Sport Fishing. Key Largo has been dubbed the "Diving Capital of the World" and Islamorada has been dubbed the "Sport Fishing Capital of the World". The Upper Keys is the area where you'll find the most charter fishing boats, marinas and tackle shops and is where many celebrities and politicians come to vacation and partake in the world's best sports fishing. President George Bush, Sr., President Herbert Hoover, and British Prime Minister Winston Churchill are just a few of the famous that have visited Islamorada.

Off the city of Key Largo there are some of the best dive sites in the Florida Keys. Several of the dive sites are located inside John Pennekamp State Park. Sting rays, manta rays, spotted eagle rays, eels, turtles, nurse sharks, reef sharks, crabs, lobsters, huge grouper and tarpon, and tropical fish are what divers and snorkelers should expect to find on their dive.

Near Key West is the Everglades National Park. Surrounding the Florida Keys is the Florida Keys National Marine Sanctuary which was designated by The National Marine Sanctuaries Act of 1972 to protect marine resources. For nature lovers, Key Largo's proximity to the Everglades makes it a premier destination for kayakers, birders and other eco-tourists. All this beauty has inspired a vibrant community of artists who show their work at several local art galleries.

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Homestead-Miami Speedway:

Homestead-Miami Speedway is a race track in Homestead, Florida southwest of Miami. Since 2002 Homestead has hosted the final races of the season in all three of NASCAR's series: the Sprint Cup Series, Nationwide Series, and the Camping World Truck Series. Ford Motor Company sponsors all three of the season-ending races; the races have the names Ford 400, Ford 300, and Ford 200, respectively, and the weekend is marketed as Ford Championship Weekend. The

Nationwide Series (then known as the Busch Series) has held its season-ending races at Homestead since 1995. The track also hosts the Grand-Am Rolex Sports Car Series during its season, but not as the series' final race as with NASCAR. The speedway was constructed, with the efforts of promoter Ralph Sanchez, as part of a plan to help Homestead rebound after the devastation caused by Hurricane Andrew. Groundbreaking began August 24, 1993, exactly one year after the hurricane.

It opened in November 1995 with a NASCAR Busch Series (currently the Nationwide Series) race, the last race of that season. The Busch Series would continue to hold its season-ending races at Homestead; in 2002 NASCAR's Winston Cup Series and Craftsman Truck Series would also hold their season-ending races at Homestead as well. Since 2002 NASCAR has marketed the seasons-ending Homestead races as Ford Championship Weekend.

In the spring of 1996, the CART series held its first race there. The track reflects the art deco district of nearby Miami Beach with its liberal use of colors such as aqua, purple and silver. Though the track itself has been considered to be aesthetically pleasing from the outset, initially the racing at Homestead was not considered very good. The track opened as a four-turn, rectangular-oval, based on the Indianapolis Motor Speedway's layout. However, due to its shorter distance, the track was not able to maintain the racing characteristics of the Indianapolis Motor Speedway. Instead, the sharp, flat turns and aprons made passing difficult and lowered overall speed. The geometry also created unfavorably severe crash angles. In 1996, track management attempted to correct the problems by widening the aprons of the turns by as much as 24 feet (7.3 m). In the summer of 1997, an $8.2 million reconfiguration project changed the turns from a rectangle to a traditional, continuous turn oval.

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Homestead-Miami Speedway (Cont’d) In 2003, the track was reconfigured once again. The turns were changed from mostly flat to steep variable banking. In 2005, lights were installed to allow night racing for the first time. The renovations were praised by fans, and the track has produced a number of close finishes, including 2005's last-lap battle between Greg Biffle and Mark Martin. On March 26, 2006 Indy Racing League driver Paul Dana suffered fatal injuries in the warm-up session before the race when he was involved in a high-speed collision with Ed Carpenter at over 215 mph (346 km/h). Other drivers to suffer fatal injuries at the speedway are John Nemechek in a Camping World Truck Race on March 16, 1997, and Jeff Clinton who died in a Grand Am sports car event at the track in March 2002. In 2009 Homestead became the home to a total of five season-ending racing series events, with the GAINSCO Auto Insurance Indy 300 finale for the IRL Indy Car Series as well as the Grand-Am Rolex Sports Car Series moving to October from their traditional early season slots. The Indy Car series would discontinue its Homestead race while the Rolex Series later changed its Homestead race to a date earlier in the season. Homestead-Miami Speedway again will serve as host to NASCAR’s Ford Championship Weekend in 2012. South Florida again will be the site when NASCAR crowns its Champions in all three of its top national divisions—the Sprint Cup, Nationwide and Camping World Truck Series— the weekend of Nov. 16-18, 2012. In addition to hosting high-profile sanctioned events, Homestead-Miami Speedway is active more than 280 days each year in playing host to activities that include: race-car and manufacturer testing; car-club events; driving schools and ride-along programs; charitable events; film, movie and photo shoots; product launches; motorcycle racing; and the track’s weekly Friday night “T-n-T/Test ’n Tune” car competition that opens up Pit Road to the public as an alternative to illegal street racing.

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http://www.homesteadmiamispeedway.com/Tickets-Events/Events/2012/NASCAR-Championships/Ford-400.aspx


Area Map of Competitive Hotels

(The Site is the Star Marker on the Map)

A. Floridian Hotel – Homestead, FL B. Hampton Inn and Suites – Homestead FL C. Value Place Hotel – Homestead, FL D. Courtyard Homestead – Homestead, FL E. The Inn of Homestead Hotel – Homestead, FL F. Day’s Inn – Homestead, FL

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Description of Local Area Hotels:

. A. Floridian Hotel – The Floridian Hotel, located in the heart of Homestead. Though this hotel’s rates are significantly lower than the other hotels in the competition. The hotel is Florida's hidden treasure. Offering spacious guest rooms, with comfortable king or double beds. All rooms include coffee maker, iron, ironing board and hairdryer, miniature fridge, microwave and high speed Internet. This hotel offers a complimentary continental breakfast and outdoor pool (heated in the winter) The hotel Conveniently located minutes from The Historic Downtown Homestead and 30 minutes from the Florida Keys.

B. Hampton Inn and Suites – Homestead FL This hotel is 11 miles from the Everglades. The hotel offers a business center, gym, heated outdoor pool and rooms with 32-inch flat-screen TVs. The hotel’s rooms include a coffee maker. The hotel opened in September 2009 and is ranked number 1 on Tripadvisor.com. The rooms are equipped with free Wi-Fi. The hotel provides a daily continental breakfast and coffee. The hotel also has a convenience store. It also has meeting space of 2,002 sq. ft. The Meeting space can accommodate up to 250 people in its largest room. The hotel also offers weddings up to 95 people.

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Description of Local Area Hotels (Cont’d)

C. Value Place Inn – Homestead FL This hotel is right off of exit 2 Campbell Dr on the Florida Turnpike. The location is directly across the turnpike from the site location. The hotel opened in January 2009 and is ranked number 6 on Tripadvisor.com. The rooms are equipped with Wi-Fi; however there is a $10.00 weekly charge. The hotel does not provide a continental breakfast. The hotel charges for housekeeping services and replenishments of towels. Additionally, a coffeemaker for the room must be purchased for $30.00.

D. Courtyard Homestead, FL - This South Florida hotel is just a 15 minute drive from the Homestead Miami Speedway The hotel opened in July 2012 and is ranked number 2 on Tripadvisor.com. Courtyard Miami Homestead has an outdoor pool and a fitness facility. Complimentary wireless Internet access is available in public areas and a computer station is located on site. This 3-star hotel features business amenities including a business center and a meeting/conference room. Dining options at this business-friendly hotel include a restaurant, a coffee shop/café, and a bar/lounge. Additional amenities include a library, tour/ticket assistance, and a grocery/convenience store. Guest parking is complimentary. This is a smoke-free property. Guestrooms at Courtyard Miami Homestead offer safes and coffee/tea makers. Guests can use the in-room complimentary wireless and wired high-speed Internet access. 32-inch flat-screen TVs are equipped with cable channels and free movie channels. All accommodations provide desks, ergonomic chairs, and phones with voice mail. In-room microwaves and refrigerators are provided.

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Description of Local Area Hotels (Cont’d)

E. The Inn of Homestead Hotel – Homestead, FL - Featuring a continental breakfast and an outdoor pool, this South Florida hotel is just a 15 minute drive from the Homestead Miami Speedway. Free Wi-Fi is provided to all guests of the pet-friendly property. A TV and a private balcony are found in each room at the Prince of Homestead Inn. Rooms are simply decorated and come with a microwave and a small refrigerator. A 24-hour front desk and vending machines are available to the guests of the Prince of Homestead. Fax and photo copying services are also provided. The on-site restaurant, Mario’s, is open 24 hours a day. Guests can enjoy a selection of Cuban and Latin cuisine. Key Largo is 30 miles from the hotel. The Everglades National Park is a 20 minute drive away.

F. Day’s Inn – Homestead, FL – This hotel offers a free Daybreak continental breakfast and an outdoor pool. Complimentary breakfast includes freshly brewed coffee, tea, juice, fresh fruit, cereal, instant oatmeal and assorted bagels, muffins or pastries. Stay connected to home or the office right from your hotel room with free Wi-Fi Internet access. This pet-friendly hotel offers guest laundry services, in-room refrigerators, 24-hour front desk service and ample free parking for vehicles of any size. Handicapped-accessible and non-smoking rooms are available at our hotel in Homestead, Florida.

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Hotel Ratings/Rankings

Hotel Class ratings

Economy:For the budget traveler where cost is the primary concern; usually denotes clean, no-frills accommodations and minimal on-site amenities.

Value:Simple accommodations with more thought given to décor and atmosphere; budget is still aconsideration may offer limited public space, a gift shop, and/or a coffee shop; amenities andand on site services are limited

Distinctive:For the more discerning traveler, where service, quality, style, and comfort are clear priorities; also a good choice for families; usually offer function rooms for meetings and a restaurant; may offer other amenities such as a pool or business center services for business travelers.

Exceptional:First-class accommodations with an emphasis on hospitality and premium customer service.highly reliable hotels offering a fine-dining restaurant, a range of amenities, and facilities for the sophisticated traveler; also appropriate for the business traveler.

Premium:World-class lodging for the most discriminating traveler; these hotels pride themselves onmeticulous personal service, numerous amenities, elegant décor, and the highest standards of comfort; among the finest hotels in the world


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Competitve SetHomestead, FL

Hotel City & StateRate

Range RoomsDays Inn Homestead Homestead, FL $99-129 109Hampton Inn Suites Miami South Homestead Homestead, FL $115-150 126Comfort Inn Florida City Florida City, FL $70-95 124Holiday Inn Express & Stes FL City Gateway To Keys Homestead, FL $115-139 105

Total Rooms 464

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Hotel Rating


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Historical TREND SummaryJanuary 2008 - August 2013Homestead, FL

Date Occupancy ADR RevPar Supply Demand Revenue Census This Year % Chg

This Year % Chg

This Year % Chg

This Year % Chg

This Year % Chg This Year % Chg

Props Rooms

Jan-08 75.7 -8.6 137.16 13.5 103.89 3.7 10,478 0.0 7,937 -8.6 1,088,607 3.7 3 338Feb-08 84.8 -4.8 158.85 18.1 134.72 12.4 9,802 3.6 8,313 -1.4 1,320,562 16.4 3 338Mar-08 86.4 -3.6 147.40 10.7 127.31 6.7 10,478 0.0 9,050 -3.6 1,333,916 6.7 3 338Apr-08 77.9 0.6 120.79 5.4 94.07 6.0 10,140 0.0 7,897 0.6 953,875 6.0 3 338May-08 72.8 -4.9 115.24 8.6 83.85 3.4 10,478 0.0 7,624 -4.9 878,529 3.4 3 338Jun-08 70.7 2.0 105.72 7.0 74.73 9.1 10,140 0.0 7,168 2.0 757,768 9.1 3 338Jul-08 62.7 -2.0 105.93 8.7 66.45 6.5 10,478 0.0 6,573 -2.0 696,223 6.5 3 338

Aug-08 63.0 -0.7 109.99 17.6 69.31 16.8 10,478 0.0 6,602 -0.7 726,197 16.8 3 338Sep-08 61.9 -6.5 107.31 12.7 66.41 5.4 10,140 0.0 6,275 -6.5 673,388 5.4 3 338Oct-08 59.3 -18.5 115.35 9.1 68.43 -11.1 10,478 0.0 6,216 -18.5 717,028 -11.1 3 338Nov-08 66.4 -15.2 130.50 10.2 86.65 -6.6 10,140 0.0 6,733 -15.2 878,636 -6.6 3 338Dec-08 67.8 -3.4 122.48 6.7 83.07 3.1 10,478 0.0 7,106 -3.4 870,365 3.1 3 338

AugYTD 2008 75.7 -3.3 128.68 10.5 97.46 6.9 82,472 0.0 61,164 -2.5 7,755,678 8.4Total 2008 70.5 -5.5 124.37 11.0 87.70 4.9 123,708 0.0 87,494 -5.3 10,895,096 4.9

Jan-09 74.8 -1.3 140.19 2.2 104.81 0.9 10,478 0.0 7,834 -1.3 1,098,208 0.9 3 338Feb-09 83.2 -1.9 154.56 -2.7 128.54 -4.6 9,464 -3.4 7,870 -5.3 1,216,475 -7.9 3 338Mar-09 80.1 -7.2 147.81 0.3 118.45 -7.0 10,478 0.0 8,397 -7.2 1,241,168 -7.0 3 338Apr-09 75.0 -3.7 126.70 4.9 95.04 1.0 10,140 0.0 7,606 -3.7 963,718 1.0 3 338May-09 69.1 -5.1 118.58 2.9 81.88 -2.3 10,478 0.0 7,236 -5.1 857,971 -2.3 3 338Jun-09 61.4 -13.1 110.35 4.4 67.79 -9.3 10,140 0.0 6,229 -13.1 687,342 -9.3 3 338Jul-09 57.8 -7.8 108.96 2.9 63.00 -5.2 10,478 0.0 6,059 -7.8 660,122 -5.2 3 338

Aug-09 58.1 -7.9 109.43 -0.5 63.54 -8.3 10,478 0.0 6,084 -7.9 665,796 -8.3 3 338Sep-09 50.4 -18.6 110.36 2.8 55.60 -16.3 13,920 37.3 7,013 11.8 773,886 14.9 4 464Oct-09 65.1 9.7 111.34 -3.5 72.49 5.9 14,384 37.3 9,364 50.6 1,042,669 45.4 4 464Nov-09 63.6 -4.2 123.99 -5.0 78.82 -9.0 13,920 37.3 8,850 31.4 1,097,230 24.9 4 464Dec-09 65.1 -4.0 113.73 -7.1 74.03 -10.9 14,384 37.3 9,363 31.8 1,064,875 22.3 4 464

AugYTD 2009 71.5 -5.6 131.27 2.0 93.85 -3.7 82,134 0.0 57,314 -6.3 7,390,800 -4.7Total 2009 66.9 -5.2 124.70 0.3 83.40 -4.9 138,742 0.0 91,904 5.0 11,369,461 4.4

Jan-10 68.8 -8.0 124.92 -10.9 85.97 -18.0 14,384 37.3 9,899 26.4 1,236,531 12.6 4 464Feb-10 78.4 -5.7 127.46 -17.5 99.92 -22.3 12,992 37.3 10,185 29.4 1,298,180 6.7 4 464Mar-10 75.9 -5.2 122.12 -17.4 92.73 -21.7 14,384 37.3 10,923 30.1 1,333,858 7.5 4 464Apr-10 66.9 -10.8 110.78 -12.6 74.11 -22.0 13,920 37.3 9,312 22.4 1,031,549 7.0 4 464May-10 59.4 -13.9 102.70 -13.4 61.04 -25.5 14,384 37.3 8,549 18.1 877,935 2.3 4 464Jun-10 55.9 -9.0 96.76 -12.3 54.11 -20.2 13,920 37.3 7,784 25.0 753,169 9.6 4 464Jul-10 52.9 -8.5 94.99 -12.8 50.26 -20.2 14,384 37.3 7,612 25.6 722,986 9.5 4 464

Aug-10 56.5 -2.7 96.64 -11.7 54.61 -14.1 14,384 37.3 8,129 33.6 785,533 18.0 4 464Sep-10 46.4 -7.9 94.27 -14.6 43.72 -21.4 13,920 0.0 6,455 -7.9 608,553 -21.4 4 464Oct-10 58.1 -10.8 105.52 -5.2 61.29 -15.4 14,384 0.0 8,355 -10.8 881,613 -15.4 4 464Nov-10 64.5 1.5 111.59 -10.0 71.98 -8.7 13,920 0.0 8,979 1.5 1,001,947 -8.7 4 464Dec-10 58.7 -9.8 103.67 -8.8 60.86 -17.8 14,384 0.0 8,444 -9.8 875,403 -17.8 4 464

AugYTD 2010 65.3 -8.6 112.88 -14.0 73.75 -21.4 112,752 0.0 72,391 26.3 8,039,742 8.8Total 2010 61.6 -7.9 108.87 -12.7 67.05 -19.6 169,360 0.0 104,624 13.8 11,407,258 0.3

Jan-11 76.3 10.8 116.51 -6.7 88.86 3.4 14,384 0.0 10,970 10.8 1,278,176 3.4 4 464Feb-11 85.0 8.4 126.72 -0.6 107.69 7.8 12,992 0.0 11,042 8.4 1,399,130 7.8 4 464Mar-11 79.8 5.1 125.17 2.5 99.90 7.7 14,384 0.0 11,480 5.1 1,436,933 7.7 4 464Apr-11 68.1 1.8 109.55 -1.1 74.60 0.7 13,920 0.0 9,480 1.8 1,038,469 0.7 4 464May-11 59.3 -0.2 103.38 0.7 61.34 0.5 14,384 0.0 8,535 -0.2 882,288 0.5 4 464Jun-11 58.7 4.9 98.48 1.8 57.79 6.8 13,920 0.0 8,169 4.9 804,417 6.8 4 464Jul-11 53.5 1.0 96.77 1.9 51.73 2.9 14,384 0.0 7,690 1.0 744,150 2.9 4 464

Aug-11 61.4 8.6 95.45 -1.2 58.59 7.3 14,384 0.0 8,829 8.6 842,729 7.3 4 464Sep-11 58.1 25.4 94.33 0.1 54.85 25.5 13,920 0.0 8,094 25.4 763,474 25.5 4 464Oct-11 67.1 15.5 103.23 -2.2 69.25 13.0 14,384 0.0 9,649 15.5 996,057 13.0 4 464Nov-11 70.1 8.7 110.34 -1.1 77.39 7.5 13,920 0.0 9,764 8.7 1,077,317 7.5 4 464Dec-11 68.9 17.3 105.01 1.3 72.32 18.8 14,384 0.0 9,906 17.3 1,040,192 18.8 4 464

AugYTD 2011 68.5 4.8 112.58 -0.3 77.10 4.5 112,752 0.0 76,194 5.3 8,426,293 4.8Total 2011 67.1 8.9 108.30 -0.5 72.65 8.3 169,360 0.0 113,606 8.6 12,303,334 7.9

Jan-12 72.4 -5.0 117.27 0.6 84.94 -4.4 14,384 0.0 10,418 -5.0 1,221,746 -4.4 4 464Feb-12 86.0 1.2 122.84 -3.1 105.62 -1.9 13,456 3.6 11,569 4.8 1,421,162 1.6 4 464Mar-12 88.4 10.8 125.24 0.1 110.77 10.9 14,384 0.0 12,722 10.8 1,593,301 10.9 4 464Apr-12 80.2 17.8 111.43 1.7 89.35 19.8 13,920 0.0 11,162 17.8 1,243,818 19.8 4 464May-12 72.4 22.1 100.81 -2.5 73.01 19.0 14,384 0.0 10,417 22.1 1,050,129 19.0 4 464Jun-12 70.1 19.5 95.69 -2.8 67.08 16.1 13,920 0.0 9,758 19.5 933,796 16.1 4 464Jul-12 69.2 29.4 94.09 -2.8 65.10 25.8 14,384 0.0 9,953 29.4 936,457 25.8 4 464

Aug-12 69.1 12.6 95.43 -0.0 65.95 12.6 14,384 0.0 9,941 12.6 948,642 12.6 4 464Sep-12 67.1 15.4 95.16 0.9 63.84 16.4 13,920 0.0 9,338 15.4 888,654 16.4 4 464Oct-12 72.4 7.9 101.39 -1.8 73.38 6.0 14,384 0.0 10,411 7.9 1,055,542 6.0 4 464Nov-12 78.3 11.6 114.48 3.8 89.59 15.8 13,920 0.0 10,893 11.6 1,247,059 15.8 4 464Dec-12 74.8 8.6 111.86 6.5 83.66 15.7 14,384 0.0 10,758 8.6 1,203,437 15.7 4 464

AugYTD 2012 76.9 12.2 110.47 -1.9 84.90 10.1 113,216 0.0 85,941 12.8 9,349,050 11.0Total 2012 75.0 11.7 107.88 -0.4 80.86 11.3 169,824 0.0 127,342 12.1 13,743,743 11.7

Jan-13 82.1 13.4 125.57 7.1 103.10 21.4 14,384 0.0 11,811 13.4 1,483,055 21.4 4 464Feb-13 87.7 2.0 132.63 8.0 116.34 10.2 12,992 -3.4 11,397 -1.5 1,511,534 6.4 4 464Mar-13 92.6 4.7 133.43 6.5 123.57 11.6 14,384 0.0 13,321 4.7 1,777,420 11.6 4 464Apr-13 81.0 1.0 118.23 6.1 95.79 7.2 13,920 0.0 11,278 1.0 1,333,426 7.2 4 464May-13 71.1 -1.9 105.78 4.9 75.18 3.0 14,384 0.0 10,222 -1.9 1,081,352 3.0 4 464Jun-13 72.0 2.7 102.01 6.6 73.48 9.5 13,920 0.0 10,026 2.7 1,022,784 9.5 4 464Jul-13 68.4 -1.1 98.11 4.3 67.14 3.1 14,384 0.0 9,843 -1.1 965,714 3.1 4 464

Aug-13 72.1 4.3 96.25 0.9 69.40 5.2 14,384 0.0 10,371 4.3 998,196 5.2 4 464AugYTD 2013 79.2 3.0 117.78 6.6 93.28 9.9 367,024 0.0 88,270 2.7 10,173,480 8.8

Source: Smith Travel Research Page 24This report is provided in accordance with and subject to the RK Consulting Services, Inc. Agreement. It is designed to be accurate and authoritative, based on information obtained from third parties that we believe to be reliable. RK Consulting Services, Inc. does not, however, warrant or guarantee in any way the accuracy, completeness or fairness of the information provided. This report and the information contained herein are confidential and intended for our individual client's specifically authorized use.

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Occupancy Analysis

January 2008 - August 2013Homestead, FL

Source: Smith Travel Research Page 25


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Average Daily Rate (ADR) Analysis




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Revenue Per Avalibale Room (RevPAR) Analysis




This report is provided in accordance with and subject to the RK Consulting Services, Inc. Agreement. It is designed to be accurate and authoritative, based on information obtained from third parties that we believe to be reliable. RK Consulting Services, Inc. does not, however, warrant or guarantee in any way the accuracy, completeness or fairness of the information provided. This report and the information contained herein are

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Business Travel Market The corporate transient business in this area is not as strong as in other markets in South Florida area (Miami and Fort Lauderdale) however the forecasting for business growth in the area is very strong, and the future demand will have an impact on supply. With the limited number of hotels in the Homestead area the introduction of an extended stay product will have an immediate impact in the corporate transient levels for the proposed hotel. The hotels in a 10 miles radius of the proposed site are doing well primarily because of the racing fans and the local businesses traveler doing business in the area. There are several large companies that have satellite locations of their corporate headquarters in the South Miami area. Included among them are: Baptist Health Medical Center, Publix Super Markets, American Airlines, AT&T, Carnival Cruise Lines, and of Course as previously mentioned Florida Power and Light.

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TOP PRIVATE EMPLOYERSCompany EmployeesUniversity of Miami 16,000Baptist Health South Florida 13,376Publix Super Markets 10,800American Airlines 9,000Precision Response Corporation * 5,000Florida Power & Light Company ** 3,840Carnival Cruise Lines 3,500Winn-Dixie Stores 3,400AT&T 3,100Mount Sinai Medical Center 3,000Miami Children's Hospital 2,800Sedanos Supermarkets 2,500Wachovia, A Wells Fargo Co. 2,179Assurant Solutions * 2,100Bank of America 2,000Royal Caribbean International/Celebrity Cruises 1,880

TOP PUBLIC EMPLOYERSMiami-Dade County Public Schools 48,571Miami-Dade County 29,000Federal Government 19,500Florida State Government 17,100Jackson Health System 12,571Florida International University 8,000Miami-Dade College 6,200* Employment update from World City-Beacon Council 2010 Who's Here Study

**Employment data from 2009 Miami Business Profile

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Business Travel Market (Cont’d) As mentioned earlier one of the largest factors contributing to the opportunities in the Homestead area is growth of the Florida Power and Light’s (FPL) plan for the Turkey Point Nuclear reactors over the next 15 years. This expansion of the FPL nuclear facilities will bring in more contractors from out of town to the area. Historically, contractors from out of town tend to favor long term extended stay hotels compared transient hotels. The reason is the extended stay hotels are more accommodating and appealing to contractor how will be living in the area for several months, sometimes over a year in one location. See the article below from the Miami Dade Herald run in November 2011:

FPL To Provide 5,000 Jobs in the Coming Months, Local Economies Benefit but There Are Concerns By Michelle Hammontree-Garcia

Florida Power and Light has faced strong opposition to its plan to build two new nuclear reactors in Turkey Point. Against that backdrop, FPL’s community relations people invited local reporters to the plant for “Nuclear Energy 101” and a tour of the facilities. Reporters from the Miami Herald, WLRN-FM and the Associated Press spent four hours at the nuclear plant east of Homestead on Wednesday.

“We invited the media to the plant because we wanted to provide a forum for journalists to learn and ask questions about how we operate, our safety record, security program, and environmental stewardship,” said FPL spokeswoman Bianca Martinez Cruz. The company emphasized that the tours were unrelated to the expansion plans. Critics of FPL’s plans to build two more nuclear reactors have voiced concerns not only regarding the plants themselves but also over power lines that will be needed to transmit electricity into Miami. Cities along FPL’s proposed route — U.S. 1 — fear the lines would hurt area businesses. And South Miami’s mayor is worried that evacuation plans do not take into consideration people outside of a 10-mile radius from the plant and the potassium iodine pills - needed to counteract the effects of radiation in children and the unborn — are not readily available. But Cruz said that FPL will boost the area’s economy by hiring 5,000 workers in the next couple of months as contractors install upgrades needed before the new plants can be built. “On average, Turkey Point contractors spend approximately $2,370 per month. That translates into approximately $11 million per month being spent by these workers collectively in the Homestead and Florida City area in the form of rent, utilities, food, gas, and other necessities,” Cruz said.

The opportunity being presented by this project to the business levels of the hotel will support a minimum of 20% to 30% of the hotel’s inventory. The timing of the expansion of the nuclear reactors over the next 15 years will most definitely have a positive impact on the proposed hotel.

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Leisure Travel Market: In the terminology of economists, leisure traveler spending behaves very well. When incomes are rising, households tend to spend relatively more on travel. When the economy is weak, households tend to cut back on luxury goods, such as travel, rather than necessities. This explains why spending on travel has shown a general tendency to increase as a proportion of total income over the past several decades. Both the general increase in disposable income during the past half-century, and the aging of the “baby-boomers” have stimulated travel. Secondly, spending on travel tends to follow the business cycle. For these reasons, economic indicators of the travel industry (e.g., travel spending, travel industry earnings) tend to correspond with indicators of the general economy (e.g., income, employment). The consequences of the growth in leisure activities for travel are complex. On the one hand, spending on resident leisure may substitute for travel. There is some evidence, for example, that suggests that this has occurred recently as individuals have substituted less costly local leisure activities for travel. Clearly, households may also substitute shorter, less costly travel for longer and more expensive trips. Rural travel destinations that are located in reasonable proximity to urban areas can benefit from these types of consumer choices, as households choose to travel closer to home. The growth of leisure activities that serve local residents can also attract visitors. This is particularly true of urban areas, or areas that have the resident market to support local businesses. Indeed, many of these communities simultaneously attract visitors and new residents because of their amenities. These residents may be young, as is often the case for urban areas, or retired, as is often the case less densely populated areas. Finally, the economic development benefits of leisure activities that serve residents can be similar to that of travel. This is because the availability of local leisure activities may encourage residents to spend their leisure dollars at home rather than in another community. As noted above, this may be even more important when resident households choose to spend less of their income on travel. For all of these reasons, it is probably best to think of the growth of the leisure economy as a market for which local and regional communities may choose to compete. To the extent that these communities are successful, they attract visitor spending and retain the spending of residents. There are many area attractions which are marketed correctly and to the right demographics will have a positive impact on the Weekend Leisure Travel Market. The Leisure Travel Market is stronger than the Business Travel Market for this area. However the economic brands such as the one being proposed benefits more from the weekend traveler tourist than other high end star products located closer to South Beach in Miami. The two main attractions for the weekend traveler for this area is the Florida Keys and as mentioned earlier the Homestead-Miami Speedway. When a race is held in the area the local hotels offer higher rates during weekend stay nights (Friday, Saturday and Sunday). Race weekends in the area totals about 25 weekends out of the year where there are racing events held at the raceway.

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Luxury, Upper Upscale, and Upper Tier Independents SegmentationMarket: Miami-Hialeah, FL

Year to Date - April 2013 Running 12 Month, ending April 2013

Values Percent Change (%) from same period last year Values Percent Change (%) from same period last year

Occupancy (%) Transient Group Contract Total Transient Group Contract Total Transient Group Contract Total Transient Group ContractMiami-Hialeah, FL 48.4 28.1 3.8 80.3 -0.7 5.8 -14.2 0.7 49.5 21.5 3.8 74.7 6.3 7.4 -1.7Top 25 Markets 42.5 25.2 2.8 70.5 4.0 3.1 5.6 3.8 44.1 24.1 2.8 71.0 4.2 2.0 4.9United States 38.4 22.6 2.4 63.4 3.8 2.4 4.2 3.3 40.3 22.3 2.5 65.1 4.4 2.1 3.8

ADR ($)Miami-Hialeah, FL 304.37 241.57 116.89 273.59 8.1 6.0 9.7 7.7 237.54 203.95 103.33 221.12 7.9 6.9 5.3Top 25 Markets 188.17 175.96 88.44 179.79 4.4 2.9 7.9 3.9 188.22 173.50 85.75 179.14 5.0 3.4 3.6United States 166.81 153.77 75.07 158.66 4.3 3.0 5.8 3.8 163.62 148.31 73.47 154.93 4.3 2.6 2.4

RevPAR ($)Miami-Hialeah, FL 147.31 67.97 4.39 219.67 7.3 12.1 -5.9 8.5 117.56 43.81 3.90 165.27 14.7 14.8 3.6Top 25 Markets 79.91 44.30 2.51 126.72 8.6 6.2 13.9 7.8 82.95 41.83 2.43 127.21 9.4 5.4 8.6United States 63.99 34.80 1.82 100.61 8.2 5.4 10.3 7.3 65.95 33.12 1.82 100.89 8.9 4.7 6.3

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0

20

40

60

80

100

120

140

Miami-Hialeah,FL Top 25 Markets

United States

RevPar - Year to Date - April 2012 Transient Group Contract Total

0

20

40

60

80

100

120

140

Miami-Hialeah,FL Top 25 Markets

United States

RevPAR - Running 12 Month, ending April 2012 Transient Group Contract Total


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Summary of Closest Hotels by Chain Type Location: Miami-Dade County South

Note: Local Hotels is defined as the 15 closest hotels to the site.

Source: Smith Travel Research Page: 32

Local Hotels vs. Nation (Distribution by Percent of Rooms)

Local Hotels vs. Nation (Distribution by Percent of Hotels)

Luxury 2%

Upper Upscale

11%

Upscale 16%

Mid with F&B 19% Mid without

F&B 7%

Economy 12%

Independent 33%

Local Hotels

Luxury 4%

Upper Upscale

12% Upscale

9%

Mid with F&B 15%

Mid without F&B 10%

Economy 18%

Independent 32%

Nation

Luxury 1%

Upper Upscale

5% Upscale 11%

Mid with F&B 17%

Mid without F&B 6%

Independent 34%

Independent 44%

Local Hotels

Luxury 3%

Upper Upscale

4% Upscale

5% Mid with F&B

10%

Mid without F&B 10%

Economy 21%

Independent 47%

Nation


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Pipeline Distribution Location: Miami South 25 miles Radius of Site

Source: Smith Travel Research Page: 33

Luxury 11%

Upper Upscale 17%

Upscale 20% Mid with F&B

7%

Mid without F&B 12%

Economy 33%

Distribution of 20 Closest Hotels by Chain Type (% of Rooms)


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Supply SummaryLocation: Miami South 25 miles Radius of SiteDate Created: May 23, 2012

Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 In Constr. Final

Planning Planning Pre

Planning Luxury 1 1 1 1 1 1 Upper Upscale 3 3 3 3 3 3 Upscale 6 6 6 6 7 7 - Mid with F&B 7 8 9 10 11 11 - Mid without F&B 8 7 6 5 4 4 Economy 7 8 10 11 11 10 2 1 Independent 29 28 27 27 27 28 - Total 61 61 62 63 64 64 - - 2 1

Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 In Constr. Final

Planning Planning Pre

Planning Luxury 115 115 115 115 115 115 Upper Upscale 701 701 709 709 709 709 Upscale 891 891 954 954 1,098 1,098 Mid with F&B 906 987 1,053 1,178 1,298 1,298 Mid without F&B 946 834 714 564 444 444 50 Economy 471 494 635 783 783 771 90 120 Independent 2,248 2,195 2,165 2,159 2,159 2,182 Total 6,278 6,217 6,345 6,462 6,606 6,617 - 90 50 120

Source and Copyright: Lodging Development and Building Central / TWR / McGraw-Hill Construction

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Historic Supply Pipeline Projects

Historic Supply Pipeline Projects

0

500

1,000

1,500

2,000

2,500

Luxury UpperUpscale

Upscale Mid with F&B Mid withoutF&B

Economy Independent

Current Room Supply and Construction Pipeline

Existing In Construction Final Planning Planning Pre Planning


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Construction PipelineLocation: Miami SouthDate Created: October 21, 2013

Project ID: Location Owner/Developer Architect

Open Chain: Cambria SuitesProjected opening:

Jul-2013 Cambria Suites Miami

Rooms: 6700 NW 7th St

122 Miami, FL 33134

Project ID: RTHR258107 Location Owner/Developer Architect

Open Chain: Four Points Iratel Properties/Baymont InnProjected opening: 3805 NW 107th AveJul-2013 Four Points by Sheraton Coral Gables Miami, FL 33178-4292

Rooms: 3861 SW 40th St Phone: 3056673134

103 Miami, FL 33146 Fax: 3056400608

Project ID: 11464030 Location Owner/Developer Architect

Open Chain: Courtyard Prime Home Builders-Main Office Prime Design Associates LLCProjected opening: 4651 Sheridan St 3898 NW 52nd StJul-2012 Courtyard by Marriott Miami Homestead Hollywood, FL 33021-3430 Boca Raton, FL 33496-2706

Rooms: Kingman & Campbell Phone: 954-392-8788 Phone: 561-715-2441

100 Homestead, FL 33033 Fax: 954-241-7479 Fax: 561-998-4271

Notes: Hotel Opened in July 2012


Open Chain: Courtyard Prime Home Builders-Main Office Prime Design Associates LLCProjected opening: 4651 Sheridan St 3898 NW 52nd StJul-2012 Courtyard by Marriott Miami Homestead Hollywood, FL 33021-3430 Boca Raton, FL 33496-2706

Rooms: Kingman & Campbell Phone: 954-392-8788 Phone: 561-715-2441

100 Homestead, FL 33033 Fax: 954-241-7479 Fax: 561-998-4271

Notes: Hotel Opened in July 2012


Pre Planning Chain: To be Determined Sunflower Hospitality at Kendall LLCProjected opening: c/o Nicholas Fernendez P.A.Jul-2012 Sunflower Hospitality at Kendall LLC 10 NW Le Jeune Road, Suite 500

Rooms: 10 NW Le Jeune Road, Suite 500 Miami, FL 33126

50 Miami, FL 33126 Tel: 305.461.0404

Notes:

Project ID: RTHR265867 Location Owner/Developer Architect

Final Planning Chain: Home2 Suites RD & RD Corporation George White AIAProjected opening: c/o Holiday Inn ExpressAug-2014 Home2 Suites Florida City 35200 S. Dixie Hwy.

Rooms: S Florida Tpke Florida City, FL 33034

90 Florida City, FL 33034 Tel: 305.247.3414

Notes:

Source and Copyright: Lodging Development and Building Central / TWR / McGraw-Hill Construction

Page 35

3/13/2013Sunflower Hospitality is continuing to hold this property for future development.

Local hotelier R.D. Patel is planning to build a 90-room Home2 Suites hotel at the intersection of Florida Turnpike and Dixie Highway near Florida Keys Outlet Center. The project is being developed in cooperation with the City of Florida City, which intends to provide funding for site improvements.


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Future Hotel Project and or Renovations in a 15 Mile Radius of Site:

The research conducted for this study only discovered two hotel projects within a 15 mile Radius that are either in the planning stages or construction stages. Details for the two projects are on this page and the following page.

The Hampton Inn and Suites in Homestead, Fl located less than 5 Miles from the subject hotel. The hotel project is for a limited service hotel brand. The hotel is planning on adding 2 additional stories of rooms floors to the existing structure. Currently the building is 5 stories which is the height restriction for the R4 Zoning. A use variance was most likely obtained to exceed the 5 story restrictions of the Zoning.

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Future Hotel Project in a 15 Mile Radius of Site Cont’d):

1. A Home2 Suite Hotel in Florida City located about 12 Miles southwest from the subject hotel. This hotel project is for a new style extended stay hotel brand Home2 Suite Suites which is a Hilton Brand. This is an extended stay product and will mostly have the same amenities as the subject property.

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Local Economic and Demographic InformationMiami-Dade County, FLMiami-Fort Lauderdale-Miami Beach, FL (MSA-33100)

Hotel Statistics County MSA State Region Nation1.47 1.44 1.93 1.95 1.70

Rooms per 10,000 people 194.37 171.08 221.58 194.69 157.68

Average rooms per hotel 132 119 115 100 93

Average hotels per 100 square miles 18.3 14.4 6.2 3.9 1.5

Percent of hotels chain affiliated 40% 46% 52% 61% 57%

Percent of rooms chain affiliated 57% 67% 65% 71% 69%

Entertainment StatisticsAmusement establishments per 10,000 people 1.58 2.16 2.26 2.24 2.35

Amusement establishments per hotel 1.08 1.50 1.17 1.15 1.38

Amusement establishments per 100 hotel rooms 0.81 1.26 1.02 1.15 1.49

Cultural establishments per 10,000 people 2.21 2.57 1.75 1.31 1.68

1.50 1.79 0.91 0.67 0.99

1.14 1.50 0.79 0.67 1.06

Food and Beverage StatisticsEating & drinking establishments per 10,000 people 16.56 18.08 16.98 17.29 18.60

Eating & drinking establishments per hotel 11.26 12.57 8.79 8.88 10.92

Eating & drinking establishments per 100 hotel rooms 8.52 10.57 7.66 8.88 11.80

Average annual household expenditures on food away from home $3,103.02 $3,376.70 $3,235.39 $3,195.96 $3,319.18

Average annual household expenditures on breakfast and brunch away from home $189.76 $206.44 $197.80 $195.37 $202.90

Average annual household expenditures on lunch away from home $834.21 $907.08 $869.02 $857.95 $891.25

Average annual household expenditures on dinner away from home $1,245.86 $1,356.47 $1,299.99 $1,284.65 $1,333.70

Average annual household expenditures on catered affairs away from home $74.02 $80.42 $77.00 $76.28 $79.31

Climate Information Average Annual temperature (F) 71.65° 71.50° 70.78° 60.19° 54.07°

Average July temperature (F) 81.61° 81.76° 81.45° 77.26° 75.21°

Average January temperature (F) 57.45° 57.86° 58.49° 40.76° 30.82°

Average Annual snowfall (inches) 0.00" 0.00" 0.06" 9.69" 22.67"

Average Annual rainfall (inches) 58.10" 58.07" 52.91" 48.40" 37.80"

Annual heating degree days (F) 796° 788° 962° 3317° 5130°

Annual cooling degree days (F) 3270° 3215° 3103° 1604° 1196°

Crime Information Total Crime Index 209 158 133 120 104

Personal Crime Index 255 180 162 123 104

Property Crime Index 202 162 129 120 104

Source: See above. Page: 38

Hotels per 10,000 people

Cultural establishments per hotel

Cultural establishments per 100 hotel rooms

Population, household expenditure, climate, and crime data for 2002 from Applied Geographic Solutions, Thousand Oaks, CA. Hotel information for 2002 from Smith Travel Research. Establishment data from the U.S. Census Bureau.


Source: Population, household expenditure, climate, and crime data for 2009 from Applied Geographic Solutions, Thousand Oaks, CA. Hotel information for 2009 from data from the U.S. Census Bureau. Source: Population, household expenditure, climate, and crime data for 2010 from Applied Geographic Solutions, Thousand Oaks, CA. Hotel information for 2010 from Smith Travel Research. Establishment data from the U.S. Census Bureau.

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Average Annual Percent Change in Number of Employees, 2006 - 2010Miami-Dade County,FLMiami-Fort Lauderdale-Miami Beach, FL (MSA-33100)

County MSA State Region NationMiami-Dade County,FL MSA-33100 Florida South Atlantic USA

Total, All Industries 0.65% 0.93% 0.71% 1.07% 1.06%Construction 3.39% 1.59% 1.65% 0.81% 0.84%Manufacturing -3.42% -2.29% -1.14% -2.39% -1.56%Wholesale Trade -0.45% 0.68% 1.72% 1.44% 1.36%Retail Trade 2.53% 1.54% 1.09% 0.86% 0.41%Information -7.33% -3.40% -1.65% -1.60% -0.90%Finance & Insurance 0.64% 0.12% 0.75% 0.52% 0.20%Real Estate and Rental & Leasing 1.03% 0.21% 1.50% 1.21% 0.42%Professional, Scientific, & Technical Services 1.68% 1.53% 3.30% 3.81% 3.67%Educational Services 4.66% 6.03% 5.43% 4.22% 3.29%Health Care & Social Assistance 3.27% 2.78% 3.35% 3.38% 2.71%Arts, Entertainment, & Recreation 1.72% 1.43% 3.22% 2.66% 1.65%Accomodation & Food Services 1.83% 1.89% 2.45% 2.37% 1.84%

Hotel (Except Casino Hotels) and Motels 1.02% 0.68% 0.95% 1.09% 1.25%Casino Hotels - - -1.04% -36.41% -0.09%Other Traveler Accomodation - - -4.54% -12.42% 0.15%RV Park and Recreational Camps -15.09% -6.57% -1.11% 1.88% 1.55%Rooming and Boarding houses 8.75% -6.83% 0.08% 2.65% -1.69%Full-Service Restaurants 2.53% 1.57% 2.54% 2.41% 2.06%Drinking Places 8.81% 6.96% 5.53% 2.69% -1.13%

"N/A" denotes that data were not collected by the U.S. Bureau of Labor Statistics

"-" denotes data withheld by the U.S. Bureau of Labor Statistics under non-disclosure policies

Source: U.S. Bureau of Labor Statistics Page: 39

Industry

0.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40%

Miami-Dade County,FL MSA-33100 Florida South Atlantic USA

Average Annual Percent Change in Number of Employees for Hotels and Motels 2006 - 2010

This report is provided in accordance with and subject to the RK Consulting Services, Inc. Agreement. It is designed to be accurate and authoritative, based on information obtained from third parties that we believe to be reliable. RK Consulting Services, Inc. does not, however, warrant or guarantee in any way the accuracy, completeness or fairness of the information provided. This report and the information

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Average Payroll Per Employee - In 2010 DollarsMiami-Dade County,FL

Industry County MSA State Region NationMiami-Dade County,FL MSA-33100 Florida South Atlantic USA

Total, All Industries 45,142$ 44,199$ 40,568$ 43,230$ 45,563$

Construction 44,809$ 45,720$ 42,016$ 43,773$ 49,013$

Manufacturing 40,034$ 46,768$ 48,631$ 48,638$ 54,400$

Wholesale Trade 55,065$ 57,671$ 58,365$ 60,435$ 61,843$

Retail Trade 27,668$ 28,193$ 26,401$ 25,450$ 26,179$

Information 67,914$ 64,058$ 58,177$ 65,816$ 70,787$

Finance & Insurance 79,101$ 74,478$ 64,108$ 68,170$ 85,268$

Real Estate and Rental & Leasing 43,646$ 41,553$ 38,616$ 41,377$ 43,240$

Professional, Scientific, & Technical Services 70,573$ 67,970$ 62,536$ 73,323$ 74,366$

Educational Services 41,015$ 39,775$ 36,056$ 40,759$ 40,862$

Health Care & Social Assistance 43,619$ 43,991$ 43,000$ 41,936$ 42,154$

Arts, Entertainment, & Recreation 49,709$ 36,381$ 32,989$ 29,560$ 31,954$

Accomodation & Food Services 22,237$ 20,380$ 18,312$ 16,583$ 16,692$

Hotel (Except Casino Hotels) and Motels 31,673$ 29,902$ 26,331$ 24,496$ 24,483$

Casino Hotels - - 19,873$ 19,873$ 35,021$

Other Traveler Accomodation - - 23,163$ 19,944$ 17,514$

RV Park and Recreational Camps 17,601$ 25,439$ 19,672$ 20,121$ 20,171$

Rooming and Boarding houses 19,843$ 15,729$ 25,189$ 20,872$ 20,215$

Full-Service Restaurants 21,200$ 19,578$ 17,516$ 16,002$ 16,147$

Drinking Places 21,647$ 20,370$ 16,967$ 15,644$ 13,441$

"N/A" denotes that data were not collected by the U.S. Census Bureau

"-" denotes data withheld by the U.S. Census Bureau under non-disclosure policies

Source: U.S. Census Bureau and Real-time Hotel Reports, LLC Page: 40

-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1 2 3 4 5

Average Payroll Per Employee for Hotels and other Lodging Places 2010


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Percent of Total Workforce, 2010Miami-Dade County,FLMiami-Fort Lauderdale-Miami Beach, FL (MSA-33100)

County MSA State Region Nation

IndustryMiami-Dade County,FL MSA-33100 Florida South Atlantic USA

Construction 4.64% 5.73% 6.68% 6.02% 5.29%

Manufacturing 4.34% 4.02% 4.84% 7.88% 9.93%

Wholesale Trade 6.57% 5.69% 4.51% 4.18% 4.42%

Retail Trade 12.64% 13.08% 12.89% 11.81% 11.36%

Information 1.95% 2.17% 2.04% 2.12% 2.22%

Finance & Insurance 4.57% 4.74% 4.56% 4.04% 4.34%

Real Estate and Rental & Leasing 2.28% 2.55% 2.23% 1.73% 1.57%

Professional, Scientific, & Technical Services 6.27% 6.49% 5.96% 6.65% 5.80%

Educational Services 2.14% 2.04% 1.47% 1.61% 1.76%

Health Care & Social Assistance 12.05% 11.64% 11.76% 10.84% 11.56%

Arts, Entertainment, & Recreation 1.27% 1.77% 2.41% 1.62% 1.47%

Accomodation & Food Services 9.00% 9.36% 9.89% 8.95% 8.47%

Hotel (Except Casino Hotels) and Motels 2.36% 2.02% 2.03% 1.39% 1.11%

Casino Hotels - - 0.00% 0.00% 0.20%

Other Traveler Accomodation - - 0.01% 0.01% 0.02%

RV Park and Recreational Camps 0.01% 0.01% 0.04% 0.03% 0.04%

Rooming and Boarding houses 0.00% 0.00% 0.01% 0.01% 0.01%

Full-Service Restaurants 3.23% 3.83% 4.26% 3.73% 3.38%

Drinking Places 0.27% 0.34% 0.28% 0.18% 0.26%



Source: U.S. Census Bureau and RealTime Hotel Reports, LLC Page: 41

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

12

34

5

Percent of Total Workforce in Hotels and Other Lodging Places 2010


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Number of Employees in County, 2006 - 2010Miami-Dade County,FLMiami-Fort Lauderdale-Miami Beach, FL (MSA-33100)

2006 2007 2008 2008 2010

Total, All Industries 980,711 998,241 1,007,472 1,014,998 1,006,416

Construction 41,592 45,792 51,912 52,741 46,669

Manufacturing 50,277 48,684 47,680 46,742 43,707

Wholesale Trade 67,412 67,119 67,121 68,433 66,160

Retail Trade 115,146 119,762 124,282 126,277 127,188

Information 26,709 23,211 21,635 20,574 19,645

Finance & Insurance 44,900 46,015 47,452 47,956 45,983

Real Estate and Rental & Leasing 22,098 23,403 23,971 23,565 22,973

Professional, Scientific, & Technical Services 59,074 61,855 62,826 62,761 63,092

Educational Services 18,001 18,361 19,214 19,984 21,578

Health Care & Social Assistance 106,659 108,967 112,831 116,069 121,301

Arts, Entertainment, & Recreation 11,914 12,459 12,664 12,900 12,745

Accomodation & Food Services 84,260 85,988 87,143 89,550 90,581

Hotel (Except Casino Hotels) and Motels 22,854 23,379 23,599 23,926 23,800

Casino Hotels N/A N/A - - -

Other Traveler Accomodation 72 76 - - -

RV Park and Recreational Camps 111 82 52 56 53

Rooming and Boarding houses 10 8 8 11 11

Full-Service Restaurants 29,420 29,074 30,140 31,625 32,482

Drinking Places 1,947 2,191 2,506 2,712 2,715



Source: U.S. Census Bureau and RealTime Hotel Reports, LLC Page 42

Industry

-

5,000

10,000

15,000

20,000

25,000

30,000

2004 2005 2006 2007 2008

Number of Employees of Hotels and Other Lodging Places in County 2006 - 2010


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Total Passenger Arrivals and Hotel DemandMiami International Airport Hotel Market: Miami-Hialeah, FL

Passenger Arrivals and Demand for Hotel Rooms

Total number of Passenger ArrivalsJanuary February March April May June July August September October November December Total Year Dec YTD

2004 534,648 555,111 614,046 554,943 500,789 497,343 550,798 483,557 318,806 473,414 501,416 585,468 6,170,339 6,170,3392005 561,953 541,144 657,800 549,933 550,511 565,564 603,434 502,855 432,681 440,770 564,073 641,095 6,611,813 6,611,8132006 604,920 588,982 691,428 613,084 591,064 595,713 614,396 524,463 441,422 529,123 578,203 639,278 7,012,076 7,012,0762007 599,327 583,901 680,714 590,160 584,683 583,462 599,496 559,128 467,675 552,680 578,630 611,311 6,991,167 6,991,1672008 593,864 577,811 650,005 561,634 574,972 561,758 588,296 538,756 443,267 536,565 545,759 614,675 6,787,362 6,787,3622009 578,388 554,611 623,310 579,921 572,470 562,996 582,991 536,750 443,666 534,485 545,871 627,275 6,742,734 6,742,734Avg 578,850 566,927 652,884 574,946 562,415 561,139 589,902 524,252 424,586 511,173 552,325 619,850 6,719,249 6,719,249

Demand for Hotel Rooms in Miami-Hialeah, FLJanuary February March April May June July August September October November December Total Year Dec YTD

2004 1,024,857 1,078,475 1,184,799 1,046,860 976,374 839,849 969,760 953,383 679,112 959,432 981,740 963,634 11,658,275 11,658,2752005 1,131,919 1,076,045 1,200,230 1,062,273 1,008,243 874,319 975,593 940,811 864,439 830,170 1,064,626 967,318 11,995,986 11,995,9862006 1,081,112 1,052,109 1,172,348 1,000,302 955,584 872,194 898,821 815,380 730,971 839,592 930,976 916,319 11,265,708 11,265,7082007 966,746 991,736 1,127,114 966,825 935,571 842,579 909,451 888,273 749,630 862,733 904,019 914,132 11,058,809 11,058,8092008 973,104 954,702 1,070,334 954,529 929,159 814,388 905,848 902,819 714,255 861,277 896,022 894,791 10,871,228 10,871,2282009 933,593 916,099 1,033,416 939,210 900,990 806,702 911,637 894,802 731,988 887,975 937,245 979,497 10,873,154 10,873,154Avg 1,018,555 1,011,528 1,131,374 995,000 950,987 841,672 928,518 899,245 745,066 873,530 952,438 939,282 11,287,193 11,287,193

Percent Change from Previous Year for Passenger Arrivals and Demand for Hotel Rooms

Percent change in Number of Passenger Arrivals from Previous YearJanuary February March April May June July August September October November December Total Year Dec YTD

2005 5.1 -2.5 7.1 -0.9 9.9 13.7 9.6 4.0 35.7 -6.9 12.5 9.5 7.2 7.22006 7.6 8.8 5.1 11.5 7.4 5.3 1.8 4.3 2.0 20.0 2.5 -0.3 6.1 6.12007 -0.9 -0.9 -1.5 -3.7 -1.1 -2.1 -2.4 6.6 5.9 4.5 0.1 -4.4 -0.3 -0.32008 -0.9 -1.0 -4.5 -4.8 -1.7 -3.7 -1.9 -3.6 -5.2 -2.9 -5.7 0.6 -2.9 -2.92009 -2.6 -4.0 -4.1 3.3 -0.4 0.2 -0.9 -0.4 0.1 -0.4 0.0 2.0 -0.7 -0.7

Percent change in Demand for Hotel rooms from Previous YearJanuary February March April May June July August September October November December Total Year Dec YTD

2005 10.4 -0.2 1.3 1.5 3.3 4.1 0.6 -1.3 27.3 -13.5 8.4 0.4 2.9 2.92006 -4.5 -2.2 -2.3 -5.8 -5.2 -0.2 -7.9 -13.3 -15.4 1.1 -12.6 -5.3 -6.1 -6.12007 -10.6 -5.7 -3.9 -3.3 -2.1 -3.4 1.2 8.9 2.6 2.8 -2.9 -0.2 -1.8 -1.82008 0.7 -3.7 -5.0 -1.3 -0.7 -3.3 -0.4 1.6 -4.7 -0.2 -0.9 -2.1 -1.7 -1.72009 -4.1 -4.0 -3.4 -1.6 -3.0 -0.9 0.6 -0.9 2.5 3.1 4.6 9.5 0.0 0.0

Federal Aviation Authority FAA Page: 43

No representation is made as to the completeness or accuracy of the information in this report. The information is in no way to be construed as a recommendation by Smith Travel Research of any industry

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Extended Stay Hotel Market The extended-stay market, the world’s most developed, is primarily comprised of three extended-stay products: (1) all-suite hotels; (2) limited-service hotels, and (3) serviced apartments, the corporate housing market.

The all-suite hotel is relatively common in metropolitan areas and refers to full-service hotels with two-room units, usually with a bedroom and living room. These hotels have limited public areas and services. The apartment hotel, as its name implies, is equipped with a kitchen or kitchenette and may have one or two rooms. These hotels are often in the budget or economy class. They are typically described under the limited-service concept because they usually have fewer staff on site with food and beverage limited to a breakfast room, and they do not report food and beverage revenue. Serviced apartments—intended for the corporate housing market—are generally considered separate from the extended-stay lodging sector. Properties in this category vary widely in size, even in the same location. They have fully equipped kitchens and service is limited to daytime reception and weekly or biweekly cleaning. Typically there are no public areas such as lounges and breakfast rooms. There is a clear segmentation of extended-stay products among upper-, mid- and lower-tier properties, based on servicing and pricing. The pioneers in extended stay developed first-class properties. But with the increased mobility of middle-class travelers, the volume of business travel and the entry of franchise companies into the market, new brands and operators have emerged in the lower price/service tiers. The largest U.S. extended-stay hotel operators, such as Marriott and Extended-Stay America (ESA), commonly have multiple brands in each segment. In 2010, the extended-stay supply in the United States comprised 157,500 units. Of those units:

• Thirty-nine percent were in the upper tier; Marriott Residence Inn dominated that market with 553 properties.

• Twenty-nine percent fell into the mid-tier with ESA’s Studio Plus at the top with 86 properties.

• Thirty-seven fell into the lower tier, with ESA leading with 222 properties.

Growth has been especially rapid during two or three years prior to the recession in areas with high population growth, technology industries and rapid rates of immigration. As a result, extended-stay lodging comprises up to 13% of total rooms supply in some southern cities and 9% in metropolitan centers, in contrast to only 3% of total lodging supply on a national basis. Analysts expect the supply of extended-stay products to continue to grow by some 40,000 to 50,000 units per year until 2015. The interest in the sector is spurred by high net income margins and occupancy rates that typically surpass hotel industry averages. In 2010, extended-stay upper- and lower-tier properties achieved 78% and 67% occupancy, respectively. This stands in sharp contrast to the industry as a whole, which averaged 64% occupancy.

Major players that once dominated the extended-stay market are being joined by REITs and franchise companies, which have been lured by the attraction of the bottom line. Higher occupancy rates, lower construction costs and shorter periods of stabilization have caught the eye of these new entrants. Construction costs are lower because no money is spent on common area design and construction, plus the initial land costs are lower. The stabilization period tends to be shorter than hotels of comparable quality because of lower operational costs, reduced payroll, and the elimination of low-profit centers such as restaurants. Net operating income (NOI) margins of 50% are not uncommon.

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Analysis of the Construction Cost The following pages present a preliminary analysis of the construction requirements for the proposed site. Analyzing costs of hotel projects incorporates a number of factors. First and foremost, the scope of the project must be determined, including, but not limited to, the structural and mechanical requirements, the quality of finish, and the project location. For the purpose of this analysis the projections of the hotel construction project was for a Luxury Four Star Hotel.

The cost analysis of hotel projects incorporates both our data and commercially available cost estimating references. The mid-range hard costs for most hotel projects are currently estimated to be approximately $115/sq. ft. The high-end luxury hotels have ranged from $200 to more than $550/sq. ft. for hard construction costs alone depending on the geographical location of the project.

The low to high development costs per room for each component (land, development, construction, FF&E, operating capital and pre-opening) vary widely among the different types of hotels. However, the average cost percentage for each component is highly similar for all hotels. For example, land costs for all types of hotels runs 11% to 15% of the total project cost. The average allocation of budgeted costs for all type of hotels is:

13% for land 11% for development and soft costs 61% for site improvement and building construction 12% for FF&E 3% for pre-opening and working capital 100% for total project costs

Typically site improvement work is excluded from the ranges, since some projects are erected in large cities, where others are constructed along with resort facilities. Furniture, fixtures, and equipment (FF&E) are also typically outside the hard construction costs, as well as Soft Cost such as pre-opening costs, design and architectural initial fees, and consultations. This analysis does present all three categories (Site improvements, FFE and Soft Costs) The biggest variance from low to high costs falls in the luxury and resort category due to the extra time it takes for site acquisition, regulatory approvals, mitigation and higher quality construction. Development costs for four and five-star properties reflect the higher barriers to entry and higher quality improvements. The wide variation from low to high costs per room for all hotels are also due to differences in site characteristics, density, building & zoning codes, local labor and other construction costs. For example, limited-service hotels may be more expensive to build in urban areas than full-service hotels in suburban areas. We compared the cost allocations for different types of hotels --- from economy to mid-priced to upscale and luxury.

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Analysis of the Construction Cost (Cont’d) The following table shows the lowest, highest and average cost per room for hotel development. Upon close analysis, certain patterns emerge. Most interesting is the consistent allocation of the hotel development budget across the five cost components: (1) Land, (2) Development or soft costs, (3) Site Improvement & Building Construction costs, (4) Furniture, Fixtures & Equipment or FF&E costs, and (5) Pre-Opening &

HOTEL DEVELOPMENT COSTS

No uniform system of hotel development cost allocation exists. Hotel development costs are accounted for different ways depending upon tax implications, underwriting requirements and investment structures. For example, FF&E and construction finish work can overlap and differ from one project to another. Overall, there is a give & take among the cost components --- a project with a high land cost may have a lower construction cost.

The total construction estimate on the next page averages $98,876 per room for the full project including both brands. It should be noted that the budgets are based on estimated construction cost given the current economic conditions, and industry specific related expenses to be incurred during the construction. These estimates do not in any manner represent the true construction cost and will be subject to change should the current economic condition dramatically change.

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Land Development Construction Total Working TotalType Costs Costs Costs FFE Costs Capital ProjectEconomy HotelsLowest $5,625 $4,200 $25,900 $4,030 $3,250 $43,005Highest $7,705 $6,360 $77,000 $20,350 $8,450 $119,865Average $6,665 $5,280 $51,450 $12,190 $5,850 $81,435Percent 8% 6% 63% 15% 7% 100%Mid-Priced HotelsLowest $8,500 $7,500 $45,000 $15,000 $4,500 $80,500Highest $35,000 $41,700 $154,100 $35,000 $12,300 $278,100Average $17,250 $13,755 $75,820 $22,000 $10,650 $139,475Percent 12% 10% 54% 16% 8% 100%Upscale HotelsLowest $11,900 $10,500 $63,000 $21,000 $6,300 $112,700Highest $89,500 $72,900 $224,400 $40,400 $22,900 $450,100Average $19,500 $16,100 $110,100 $20,200 $6,200 $172,100Percent 11% 9% 64% 12% 4% 100%

Lowest $22,375 $33,125 $178,500 $45,500 $5,500 $285,000Highest $171,875 $180,875 $357,375 $130,750 $28,500 $869,375Average $60,625 $75,625 $252,625 $65,000 $12,400 $466,275Percent 13% 16% 54% 14% 3% 100%

Luxury Hotels & Resorts

Source: HVS/STR 2012

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Notes to 10 Year Proforma 60 Room Sleep Inn Brand Schedule A:

AVERAGE RATE : Historically the area in and around Homestead FL generated Average Daily Rates (ADR) $85.00 for Limited Service hotels (Days Inn, Comfort Inn, etc.) to $125.00 for Select Service Hotels (Hampton Inn and Suites) as noted in the STR Report. The starting ADR for the hotel is $85.00 primarily due to maintaining a conservative approach to the analysis compared to the $107.88 2012 Year End Total presented in the STR Report.

OCCUPANCY PERCENT: Occupancy percentages are a large indicator in the hotel industry. The percentages in the proforma’s have the potential to reach as high as 75% in the fourth year and REVPAR (Revenue Per Available Room) of $69.66 with average room rates of $92.88 per night; it is expected the hotel will offer room rates averaging $65 per night weekends during the off season and $125 per night weekends during the season which is typically January through April and September through November for the Racing Season. The assumptions presented in the attached proforma were conservative in nature. They are listed below:

1. The 1st Year Occupancy Percent is 60% compared to the average percent of 75% YTD 2012 for Comp Set presented in the STR Report.

2. The increase in the year over year is very conservative with 3% increase in the percent until the business levels stabilize. Once the Occupancy peaks and levels off in the 4th full year at 75% the increase is raised to 5% year over year.

ROOMS DEPARTMENT: Departmental profit for rooms operations averages from 75% to 90% dependent on the level of business and the staffing of the hotel for the year. The proforma presented a profit of 87.5% in the stabilized was decided upon primarily due to a smaller payroll than many of the other hotels.

RENTAL LEASED REVENUE: Revenue in the category includes all lease space available. In maintaining the extremely conservative approach based on the current asking rents of $22.50/Year per Square Foot it is projected the lease space will rented out at $12.50/year per Sq Ft. 50% of the Lease Revenue is assigned to this model or $48,875.00 annually. The total Rental Income projected is $93,750.00 annually The assumption is taken that it will be a 15 to 20 year lease keeping the rental income static over the 10 years.

OTHER REVENUE: Revenue in the category includes business services, and vending operation which are the typical additional offerings in a hotel of this type. Additionally added to this category is the Banquet Room Rental Income of $20,000.00 per year which represents 50% of the total projected Banquet Rental income of $40,000 per year.

UNDISTRIBUTED EXPENSES. Because of the nature of this project and the fact that there are 2 hotels operating under one roof, it is assumed the most of the Undistributed Expenses (A&G, S&M, and R&M) will be shared between the two brands (Sleep Inn and MainStay Suites). Administrative and General (A&G) Expenses for the 10 years are expected to be 6.7% of total revenues, primarily based on industry standards. A&G Expenses ranged from 6.0% to 10% of total revenue in the industry. A&G expenses include labor expense for the Executive Office, 1.8% of total revenue for credit card commission. Sales and Marketing (S&M) expenses are 5%. Repairs and Maintenance (R&M) expenses for the first 2 years average is 4%, it than grows as the property becomes older and needs work. Franchise Fees of 6.5% of Room Revenues were added to Undistributed Expenses to show the expenses related to operating the hotel under both brands. Each Brand will have its own distinct franchise agreement with the hotel.

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RETURNS ANALYSISSleep Inn MainStay HybridHomestead, FLRooms 120SF 72,320Residual Cap Rate 9.0%Closing Costs 0.4%

Total Per KeyAcquisition Costs 1,200,000$ 10,000$ Hard Costs 8,878,944 73,991 Working Capital 50,000 417 Soft Costs 1,736,168 14,468 Total Unleveraged Costs 11,865,112 98,876 Financing Costs 37,968 316 Total Project Costs 11,903,081$ 99,192$

Unleveraged ReturnsYear 1 Year 2 Year 3 Year 4 Year 5

Investment 2013 2014 2015 2016 2017Total Unleveraged Costs (11,903,081)$ Net Operating Income (Less Depr.) 875,529$ 1,358,406$ 1,536,053$ 1,713,885$ 1,789,448$ Residual Value 19,882,751$ Net Cash Flow (11,903,081)$ 875,529$ 1,358,406$ 1,536,053$ 1,713,885$ 21,672,198$

Cash Unleveraged Yield 7.4% 11.4% 12.9% 14.4% 15.0%

Net Profit 15,252,991$ Unleveraged IRR 20.5%Equity Multiple 2.3

Debt FinancingLoan To Cost 80%Loan Amount 9,492,090$ Interest Rate 5.5%Amortization in years 20Annual Debt Service 783,539$

Year 1 Year 2 Year 3 Year 4 Year 5Investment 2012 2013 2014 2015 2016

Equity Contribution (2,373,022)$ Cash Available for Debt 875,529$ 1,358,406$ 1,536,053$ 1,713,885$ 1,789,448$ Annual Debt Service (783,539)$ (783,539)$ (783,539)$ (783,539)$ (783,539)$

Residual Value Year 5 19,882,751$ Mortgage Balance (7,991,213)$ Net Cash Flow (2,373,022)$ 91,991$ 574,868$ 752,514$ 930,346$ 12,897,446$

Cash Leveraged Yield 3.9% 24.2% 31.7% 39.2% 42.4%

Net Profit 12,874,143$ Leveraged IRR 50.7%Equity Multiple 6.4

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The combined Sleep Inn and MainStay Suites hotel design joins two great brands in one building. With a highly economical design and operating model, it allows for unique construction options enabling developers to capitalize on both transient and extended stay market demand under one roof.

By combining two highly sought-after brands in the same building, demand generators from multiple market segments can be accommodated in one building, on one site.

The smart design squeezes efficiencies from every square foot of the hotel. Significant operating efficiencies occur due to operating only one front desk, as well as reduced back of the house and service staffing. High occupancies achieved by the MainStay Suites brand, combined with reduced operating expenses, are designed to drive improved operating margins and a return on investment.

MainStay SuitesLive Like Home

Value-engineered to help deliver a competitive cost per room, MainStay Suites allows owners and operators to care for the special needs of long-term guests at a reasonable cost. As an extended stay product, MainStay® enjoys high occupancy rates and operational competencies typical of its business model. As a midscale all-suites brand, MainStay Suites hotels are a home on the road for extended stay guests.

Sleep InnDream Better Here®

Sleep Inn is the midscale new construction brand that sets itself apart from competitors with a cost-effective prototype – designed to deliver a high return on investment by keeping development and operating costs low and performance high. Intended to drive strong guest satisfaction and loyalty, the Sleep® prototype delivers on the brand’s promise – delighting guests with a simply stylish stay at an affordable price.

Sleep Inn® and MainStay Suites® Combination HotelToday’s smart move in hotel development.

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brand HigHligHts

· Over 445 sleep inn and 72 Mainstay properties are open or under development worldwide in 2012.

· in 2012, sleep inn & suites properties received 54.2% and Mainstay suites brand properties received 57.9% of all reservations through Choice Hotels central reservations and marketing channels.**

· Mainstay suites hotels boast the highest average occupancy rate (68.8%) across all Choice Hotels brands.***

· Participation in the Choice Privileges® guest loyalty program, one of the fastest-growing rewards programs in the hotel industry with over 17 million members.

· With over 1,800 corporate accounts, the Choice Hotels global sales team delivers business travelers for our hotels.

· Choice Hotels has joined forces with the Helmsbriscoe company, with over 1,200 agents in 49 countries, to drive group business into your hotels.

· access to the Choice Hotels web-based property management system, choiceadVantagE®, that provides effective rate and inventory management designed to drive higher yield.

Architectural & Design Features

The Sleep Inn and MainStay Suites hotel combines the key signature features of both brands - the Sleep Inn signature tower and Porte-Cochere along with the distinctive MainStay roof line. It offers a single lobby and community room.

Key Brand IdentifiersAll guests are offered: free Sleep Inn Morning Medley breakfast, complimentary high-speed Internet access, exercise facilities, guest laundry, MainStay Marketplace and free cable TV, including a premium movie channel.

Each MainStay Suites room has a Fully-equipped kitchen including: refrigerator, dishwasher, microwave, 2-burner cook-top, sink, coffee maker, cookware and utensils. Housekeeping labor savings are achieved by the standard Weekly housekeeping and Daily Lite-Touch service for MainStay Suites rooms.

Offering the best amenities of both brands to guests, this combo hotel provides an opportunity to meet the needs of almost any travel occasion.

With 70 years of experience, and over 6,700 properties open and under development worldwide, Choice Hotels is one of the largest franchise organizations in the world. We offer services, resources, field support, property management systems and on-going training all designed to optimize hotel performance. In 2012, the total system-wide revenue generated from the Choice Hotels marketing and reservations channels was over $2.8 billion and over $208 million was spent system-wide on programs and promotions designed to increase brand awareness and drive hotel reservations.*

CHoICeHotelSfranCHISe.CoM

* Source: Figures reflect the revenues delivered through the Choice Hotels Central Reservation System (CRS) and other non-CRS marketing channels in 2012. The spend figure is based on accounting records of the System fee in 2012 and has been compiled in a manner consistent with generally accepted accouting principles. See Franchise Disclosure Document dated April 1, 2013.

** Source: See Sleep Inn and MainStay Suites Franchise Disclosure Documents dated April 1, 2013, Item 19. For the 176 Sleep Inn hotels that were included in the sample 80 hotels or 44.5% met or exceeded this amount. For the 15 MainStay Suites hotels that were included in this sample, 5 hotels or 33.3% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.

*** Source: See Mainstay Suites Franchise Disclosure Document dated April 1, 2013, Item 19. For the 15 hotels that were included in the sample, 8 hotels or 53.3% met or exceeded this amount. Average Occupancy Rate. INDIVIDUAL RESULTS MAY VARY. Unless otherwise noted, all figures and statistics in this document are from the Sleep Inn or MainStay Suites Franchise Disclosure Documents, dated April 1, 2013, or from internal data of Choice Hotels International, Inc.

This advertisement is not an offering. For New York: an offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Sleep Inn #F-1799; MainStay Suites #f-3269.

A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at One Choice Hotels Circle, Suite 400, Rockville, MD 20850, [email protected].

© 2013 Choice Hotels International, Inc. All rights reserved. 13-284/06/13

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