Corporate Profile - 2019

EXECUTIVE SUMMARY

The Hotel Group (THG) is a national hotel investment and management company with it’s corporate headquarters in Seattle,

WA and a regional office in Nashville, TN. Our deep and talented management team includes more than 30 corporate and

regional members and 1,500 associates at over 20 properties across nine states.

Formed in 1984, the company’s operation experience includes:

• Management and/or ownership of more than 130 properties in 25 states;

• Design and development oversight of nearly 50 new hotels;

• Multimillion dollar renovations of over 50 hotels;

• Acquisition, ownership and divestment of 22 hotels;

• Completion of nearly $460 million of asset management assignments for the Resolution Trust

Corporation (RTC); and

• Raising nearly $190 million in Opportunity Funds and Investment LLC’s to acquire twelve hotels.

Mission Statement

Our mission is to Serve our People & Properties; Inspire a culture of

Hospitality Greatness; and Deliver maximum investment value for

our Partners.

Fueled by this mission, THG has consistently demonstrated the unparalleled ability

to assess a property not for what it is, but rather, for what it can be. The company

has regularly made market leaders out of historically poor performers. THG

maximizes return on investments and, along the way, attracts the industry’s finest

people to its ranks.

“As an investor accountable to my own clients, I have an appreciation for the value, respect and integrity that THG demonstrates. They hold themselves accountable for the decisions that directly affect their investors, commanding the utmost respect of their clients/employees.” - Jeff Flohr, Principal Flohr Asset Management

THG Leadership Advance Seattle, Washington

Hilton Suites Brentwood, Tennessee 1

DoubleTree by Hilton Billings, Montana

MANAGEMENT PORTFOLIO

The strength of THG is found in our team and track record, diversity and depth of experience, highlighted by our successful

operation of more than 130 properties ranging from select-service hotels in small communities to full-service hotels in large

metropolitan areas. We have triumphed with independent as well as franchised properties, and have established a network of

personnel, operational, and technological resources to ensure a level of maximum performance at each property.

THG provides a wide range of flexible services geared towards the unique needs of our client partners, including ongoing hotel

management, development and renovation oversight, receivership and turnaround of distressed assets, ownership and asset

management. We utilize our substantial expertise in operations, marketing, revenue management, finance/accounting, human

resources, guest services, and heart-of-the-house disciplines to achieve the objectives of our clients and provide a maximum

return on their investment.

Homewood Suites by Hilton Issaquah, Washington

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The Hotel Group - Corporate Office Seattle, Washington

Marriott Kansas City, Missouri

Hilton Garden Inn Bellevue, Washington

The properties currently under management by THG are listed below:

The Sound Hotel, a Tapestry by Hilton Seattle, Washington

Home2Suites by Hilton Yakima, Washington 3

*Under Construction **Under Development ***Asset Management

Radisson RED Portland, Oregon

Hotel Rooms Market Segment Location

Crowne Plaza 385 Downtown Upscale Kansas City, MO

Marriott 381 Airport Upscale Kansas City, MO

DoubleTree by Hilton 379 Downtown Upscale Cleveland, OH

Radisson BLU*** 326 Downtown Upper Upscale Anaheim, CA

DoubleTree by Hilton 289 Downtown Upscale Billings, MT

Hilton Garden Inn 254 Downtown Upscale Bellevue, WA

Homewood Suites by Hilton** 258 Airport Extended Stay Honolulu, HI

Hilton Suites 203 Suburban Upscale Brentwood, TN

Radisson RED*** 180 Downtown Upper Upscale Portland, OR

Hilton Garden Inn 179 Suburban Upscale Issaquah, WA

Hilton Garden Inn* 177 Suburban Upscale Redmond, WA

Hampton Inn & Suites by Hilton 167 Highway Upscale Northgate, WA

The Sound Hotel, a Tapestry by Hilton 142 Downtown Upper Upscale Seattle, WA

Holiday Inn Express Hotel & Suites 130 University Upper Midscale Pullman, WA

Residence Inn by Marriott** 127 Downtown Extended Stay Wenatchee, WA

Homewood Suites by Hilton 123 Suburban Extended Stay Issaquah, WA

Homewood Suites by Hilton 121 Suburban Extended Stay Draper, UT

Hampton Inn & Suites by Hilton** 115 University Upscale Pullman, WA

Towneplace Suites by Marriott** 110 University Extended Stay Ellensburg, WA

Home2Suites by Hilton 107 Suburban Extended Stay Yakima, WA

TOTAL ROOMS 4,153

PRINCIPALS AND OFFICERS

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THG’s Management Team combines in-depth experience and a broad range of skills to achieve property performance levels consistently higher than the industry average.

Edmond Lee, CPA Founder & Chairman

As the company’s Chairman, Edmond Lee is responsible for the overall investment strategy, with an emphasis on hotel acquisitions and financial structuring. Before co-founding The Hotel Group in 1984, he worked for a national CPA firm as an audit manager and subsequently served as CFO for a national real estate investment company.

Douglas Dreher, CHA President & Chief Executive Officer

Douglas Dreher has held the position of President since 2002 and was promoted to CEO in 2009. Mr. Dreher is responsible for all facets of the company, including overseeing the company-wide portfolio, real estate acquisitions and dispositions, investor relations, business development, capital, and strategic planning. Before joining THG in 1989 he worked for Westin Hotels & Resorts in various management positions. Mr. Dreher has supervised over 100 hotels in 25 states and Canada, overseen nearly 50 new developments, and gained background experience with the major franchise companies such as Marriott International, Hilton Worldwide, InterContinental Hotels Group, Radisson Hotels and Wyndham Hotels & Resorts. Mr. Dreher holds a Bachelor of Arts Degree from the School of Hospitality Business Management at Washington State University, where he has served as a guest lecturer and received a 75th Anniversary Honoree Recognition Award. Mr. Dreher sits on the Board of Directors for the American Hotel & Lodging Association (AHLA) and is a current member of the Lodging Industry Investment Council (LIIC), a think tank comprised of leading hotel and real estate executives which disseminates investment trends to the hospitality industry. He formerly held a position within AHLA’s Executive Committee and was also Chairman of the Board for the Washington State Hotel & Lodging Association.

Randy Meyer, CPA, CHA, CHTP Chief Financial Officer

Randy Meyer is responsible for a wide variety of functions within the company, including responsibility for all enterprise accounting functions, compliance, financing, banking and investor relations, and risk management. He has been intimately involved with over 60 acquisitions and dispositions of owned and managed properties and instrumental in the structuring of numerous hotels’ financing. Prior to joining The Hotel Group, Mr. Meyer was employed as an Asset Manager for Pacific Select Management Incorporated, a specialist in the turnaround of financially distressed properties for institutional investors. Mr. Meyer is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants, Washington Society of

Certified Public Accountants, and Hospitality Financial & Technology Professionals. He currently holds positions on client advisory boards for M-3 Accounting and Analytics and Marsh Insurance. He is a founding member of the Washington Lodging Association’s Retro Steering Committee. Mr. Meyer holds a Bachelor of Science Degree in Accounting from City University of Seattle, as well as certification from the American Hotel and Lodging Association as a Certified Hotel Administrator and a Certified Hospitality Technical Professional.

“THG has some of the most capable and qualified professionals in the industry. The trust we have in them gives us the ability to focus

our time and efforts on growing other areas of our business.”

– Mike Nielson, West77, President & CEO

Robert Avila, Senior Vice President of Operations Robert Avila works directly with the general managers and their teams at THG properties, focusing on customer service and internal associate satisfaction. With his attention on the day-to-day operations, as well as working with the sales and revenue teams, he strives to achieve and exceed the property budgeted goals. Robert has been with THG since 2006, and has more than 30 years of industry experience, including working for brands such as Hilton, Marriott International and Wyndham Hotels & Resorts.

Brian Latture, Senior Vice President of Operations

Brian Latture applies his extensive experience in operating hotels to the variety of challenges faced in the hotel industry. He provides leadership, guidance and support to general managers and team members, as well as oversees the necessary efforts to achieve budget results and operating plan goals on property. Brian has an extensive tenure in the hospitality industry, previously working for Marriott International and Hilton Worldwide in many regions such as the Pacific Northwest, Alaska, Midwest and East Coast.

Sam Johnson, Vice President of Operations As Vice President of Operations for the Pacific Northwest (PNW), Sam Johnson is responsible for overseeing the financial success of THG’s managed hotels and ensuring each property maintains brand compliance. An experienced hotel operator, Sam provides THG properties with day-to-day support while challenging them to create unique and memorable opportunities to delight our guests. He brings first-hand knowledge of the PNW market and extensive leadership experience in luxury independent lifestyle hotels.

Eric McCarthy, CPA, CHAE Vice President of Hotel Accounting Eric McCarthy oversees THG’s hotel accounting operation, including day-to-day oversight of accounting functions, internal controls, and strategic planning. He works closely with the company’s operation, development and renovation teams providing guidance and support. He brings over two decades of experience in both hotel and corporate roles, having worked for companies such as Starwood Hotels & Resorts, Wyndham and Walt Disney World Resorts.

Neil Taylor, Senior Director of Project Management Neil Taylor provides operation and renovation support for hotel systems including repairs, property renovations and capital improvements. He also provides review and feedback of construction plans for all clients in the process of new hotel development, particularly relating to functionality and brand or operational needs. He coordinates and collaborates with associates to prepare and execute construction and renovation budgets that are meaningful, substantial, trackable and accountable to all parties.

Ed Ha, Director of Real Estate & Business Development Ed Ha works in all aspects of real estate and business development, including acquisitions for both THG and various capital partners, ground-up developments, management transitions, dispositions and various recapitalization methods. Ed oversees research, analysis and underwriting for any new THG owned or managed property, in addition to staying on top of local and prospective markets.

Stephanie Benadof, Corporate Director of Human Resources

Bringing over 20 years of experience, Stephanie Benadof guides and manages the overall implementation and execution of our Human Resources policies and programs within THG. She supervises on property execution of HR policies such as performance management, recruitment and retention, team member orientation, training and development. Stephanie also directs all employee relations including communications, policy development, charitable giving, and employee health, safety and wellness.

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“I have a history with this company for well over 20 years. Their effective management strategies stand well above other companies in this industry and

bolster my trust in their ability to not only manage my investments, but to guide me through all economic times.”

– Sidney Chan, President, Uniwell Corporation

THG LEADERSHIP TEAM

Robin Koetje, CHTP Director of Information and Technology Robin Koetje oversees all corporate and property IT initiatives. His department provides support for THG network servers and computers, and he works directly with IT system vendors to supply current hotels, as well as procure systems for newly constructed or purchased hotels. Robin joined the corporate team after having worked in the front office for one of THG’s Pacific Northwest hotels and boasts over 25 years in the hospitality industry with THG.

Carol Lobaito, Corporate Director of Sales & Marketing With extensive knowledge in the Puget Sound and the Pacific Northwest region, Carol provides total property support of sales, marketing and revenue for our managed hotels. She works closely with owners and developers in the opening process of their hotels, by developing pre-opening budgets, marketing plans, market research and recruiting within the sales department. Carol brings 20 plus years of sales and marketing experience to THG, having worked in markets across the United States.

Theresa Benson, Corporate Director of Sales & Marketing Theresa Benson provides overall support for the on-property sales teams in all facets of sales, marketing and revenue generation, and is responsible for the total revenue goals. Besides being the link between the hotel, corporate management and ownership, she works to ensure her hotels develop and implement strategic marketing and sales plans and maintain consistent branding and promote property corporate image throughout all promotional materials, events and sales efforts.

Nicole Ragland, Director of Content Marketing

Nicole Ragland ensures the THG properties are utilizing every available tool when it comes to online marketing and content. She works with the hotel teams to ensure that their property is visible, reaching guests in a meaningful way and adhering to brand standards on social media, their website and other marketing platforms.

Brandon White, Director of Revenue Management

Brandon White specializes in revenue analysis and reporting, bringing to THG a decade of experience in revenue management. He is proficient in monitoring industry trends and forecasting property performance. Brandon examines the property growth through the well known STR hospitality reports and tracks new supply development in cities where THG owns or manages hotels.

Molly Bruder, Executive Assistant to the President and CEO

Molly Bruder is the Executive Assistant to Douglas Dreher, THG’s President and CEO. In addition to managing several projects for the company, her key responsibilities include scheduling tasks and managing communications to ensure the internal chain of command operates efficiently. Molly is instrumental in coordinating the diverse responsibilities of the corporate office with THG’s customers, owners, and employees.

Melissa Murphy, Executive Assistant to both THG’s Founder and THG’s CFO

As Executive Assistant for both THG’s Founder, as well as our CFO, Melissa Murphy oversees the collaboration and final completion of THG’s insurance, licensing, investor documents, quarterly reports and tax filings. With a strong eye for detail, she manages the record keeping for THG and ensures that all documents routing through accounting, business development and THG’s corporate office are completed in a timely and proper manner.

THG LEADERSHIP TEAM

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“THG’s deep and talented team has shown us time and time again that our asset is in very capable hands.”

– Tom Timmons, Kinetic Capital Real Estate Group, Managing Director

CASE STUDIES

Since inception, THG has developed a sound reputation based on its ability to successfully open and operate a variety

of hotels and resorts. It also has created an enviable track record for the turnaround of distressed properties. The

following case studies are examples of both on-going and completed projects.

“With THG managing our Holiday Inn Express, it has been the most positive economic success I’ve ever had! THG

has guided us through all facets of a hotel’s life cycle and has given us a beautiful, well managed, profitable and

award winning hotel.” -Dr. Wenzel Leff, Earthtone Properties, Hotel Owner

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Hilton Garden Inn & Homewood Suites Seattle/Issaquah, Washington

Hilton Garden Inn Seattle/Issaquah, Washington

The Hilton Garden Inn Issaquah is a 179-room hotel which opened in April of 2007. As the management company, THG partnered with the property owner and developer to help oversee the initial design and new build consultation. Since opening, THG has played an integral role in the oversight of additional renovations and overall property development, includ-ing the recent redesign of F&B concept Trailhead Kitchen + Bar with a menu inspired by the Pacific Northwest. The success of the Hilton Garden Inn led to the development of the adjacent Homewood Suites.

Homewood Suites by Hilton Seattle/Issaquah, Washington

The Homewood Suites by Hilton Issaquah is an all suites, extended stay property with 123 rooms located minutes from the heart of downtown Bellevue. Opened in August of 2015, the property was developed due to the success of the adjacent Hilton Garden Inn. THG worked with ownership to select the right brand for this location and helped facilitate all facets of the pre-opening for this hotel.

Homewood Suites Connie Pride Award

2018

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The Sound Hotel is a 142-room, full service property, which opened in February of 2019. A mixed-use 42-story skyscraper, the hotel occupies floors 1-10 while the remaining floors are designated as apartments. The property is located in the heart of Belltown in downtown Seattle and is the first Tapestry by Hilton Collection on the West Coast. The Sound Hotel’s name is derived not only from the region’s major body of water, the Puget Sound, but also from the vibrant art and music scene which is unique to Seattle.

254-Room Hilton Garden Inn Seattle/Bellevue Downtown, Washington

The 254-room, Hilton Garden Inn Bellevue, opened in May of 2018 as the largest development and construction project in THG company history. This property incorporates over 3,000 feet of flexible meeting space and hosts North47 Bar + Bistro, a restaurant inspired by the bounty of the Great Pacific Northwest. The Hilton Garden Inn Bellevue is centrally located in downtown Bellevue with close proximity to the core business district, Microsoft, Expedia, Amazon, Symetra and the local Bellevue Collection and Shops at Bravern.

142-Room The Sound Hotel, a Tapestry by Hilton Collection Seattle, Washington

381-Room Kansas City Airport Marriott, Kansas City, Missouri

The only hotel on airport grounds, the Kansas City Airport Marriott

benefits from its strategic location at the main entrance of the Kansas

City International Airport, one of the top five airports in the North

American Airport Satisfaction Study by J.D. Power & Associates.

Recently underwent a multi-million-dollar transformational

renovation, which increased corporate bookings and hotel RevPAR,

with EBITDA up substantially one year after completed renovation.

Marriott Brand Renovation Award

2018

THG’s MOST RECENT AWARDS

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THG often wins awards for innovation, renovation and promotion. They are a clear and welcome confirmation of outstanding customer service in the market place and property achievement and development.

2018 Hilton Connie Pride Award The Homewood Suites by Hilton Seattle/Issaquah recognized with the Connie Pride Award from Hilton

For the third year in a row, the Homewood Suites by Hilton Seattle/Issaquah, managed by The Hotel Group, was recognized with the 2018 Homewood Suites by Hilton Connie Pride Merit Award. The Hilton Award is given to the top 5% of properties within the brand who have excelled in all brand requirements. The award demonstrates the highest commitment to brand standards, guest satisfaction and loyalty.

2018 Teaching Kids to CARE Award The DoubleTree by Hilton Billings was recognized with the Teaching Kids to CARE award from Hilton

The DoubleTree by Hilton Billings hotel was awarded the Teaching Kids to CARE award for hotels with 255 rooms and above. This award is given to hotels who are mentoring grade-schoolers with a goal of creating a mindset of sustainable change and encourages hotel teams to help kids stop and think about how they can impact the environment around them for the better (in little or big ways).

2018 Quality Excellence Award The Holiday Inn Express & Suites in Pullman was recognized with IHG’s Quality Excellence Award

For the second year in a row, the Holiday Inn Express and Suites Pullman won the Quality Excellence Award which is given to hotels who have achieved the highest levels of excel-lence within the InterContinental Hotels Group.

2018 Marriott Renovation Excellence Award The Kansas City Airport Marriott was recognized with a Renovation Excellence Award

Owned by THG’s Opportunity Funds, the Kansas City Airport Marriott was recognized with the Marriott Renovation Excellence Award at the 2018 MINA & Full Service Owners Conference in Washington DC. Awarded annually to a renovated hotel highlighting the industry’s most innovative design and impressive renovation, the Kansas City Airport Marriott features a complete upgrade in modern style for business and leisure travelers.

2017 Loved By Your Guests Award Homewood Suites by Hilton Draper named the Loved by Your Guests Award Winner

The Homewood Suites by Hilton Draper/Salt Lake City, managed by The Hotel Group, recently was awarded with Hotels.com’s Loved by Guests award. This award is distributed to hotels who display exceptional levels of guest services.

EMPLOYEE INITIATIVES / COMMUNITY SERVICE

THG is committed to providing personal and professional growth opportunities for all of its employees. Throughout the year, THG presents Hospitality Greatness awards to exemplary individuals and top performing properties for their exceptional hospitality culture via Inspired Hospitality Greatness™. These winners are recognized for going the extra mile to build the THG team spirit and extending friendliness and a warm welcome to our guests during their stay.

In 2006, THG established the Good Neighbor Program to formalize its long standing commitment to partner with non-profit organizations in communities where THG operates hotels. Examples of this support include:

• Hotel employees volunteering their time to help local community non-profit organizations;

• THG donating funds from renovation and salvage sales;

• THG donating excess furniture, fixtures, televisions, etc. from hotels during renovations and upgrades; and

• THG hotels collecting and donating “partially used” amenities to local shelters and other organizations.

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THG Corporate Office in Seattle, WA

Lead Us Toward Hospitality Greatness™ - THG’s Good Neighbor Program

Any inquiries regarding The Hotel Group should be directed to:

The Hotel Group

Douglas Dreher, President & CEO

201 5th Avenue South, Suite 200

Edmonds, WA 98020

Telephone: (425) 771-1788 Facsimile: (425) 672-8280

www.thehotelgroup.com

Updated Q2 2019