250 N EQUITY DR Smithfield NC 27577-6031

Property tours are by APPOINTMENT ONLY. DO NOT CONTACT HOTEL OWNERSHIP/EMPLOYEES! Prospective buyers can view financial history including revenue, NOI, ADR, and Occupancy by clicking "Download OM" and signing a confidentiality agreement. NO PRICING GUIDANCE IS AVAILABLE. Ownership will review and respond to all offers and ultimately select the offer with the best price and terms.

Merchant Hotel Group at Colliers Hotels US, as an exclusive representative of the seller, is pleased to present to qualified investors for sale the Country Inn & Suites of Smithfield at 250 N Equity Drive, Smithfield, NC 27577 (hereafter, the “hotel”). The Country Inn & Suites hotel is located on a 1.92-acre lot and is offered with fee-simple interest. The hotel is a 77-unit, interior-corridor, 4-story, limited-service asset located at the Smithfield Carolina Premium Outlets at the intersection of Interstate-95 (44,000 Vehicles Per Day) and E Market Street (14,000 Vehicles Per Day). The hotel was built in 2016 and is the newest hotel in its STR competitive set, having opened in April of that year. The offering presents investors to enter a newer-constructed asset in a growing submarket near the Raleigh-Durham MSA below replacement value with fixed debt below market rates. Despite being the newest-constructed hotel in its competitive set, the operators of the hotel have struggled to establish market dominance and have maintained RevPAR Penetration Indexes that are in-line or below the competitive set due to their position as out-of-state absentee-owners. This signals opportunistic upside for an involved operator who can employ more aggressive sales and management efforts to increase Occupancy and ADR. The STR-defined competitive set is comprised of La Quinta Inn & Suites Selma (1998-construction), Sleep Inn & Suites Smithfield (2005-construction), Best Western Smithfield Inn (2005-construction), Comfort Inn Smithfield (2007-construction), Holiday Inn Express Smithfield (2012-construction) and Fairfield Inn & Suites Smithfield (2013-construction). Given the Country Inn & Suites is, on average, 10 years newer than the hotels in its competitive set, a new owner should be able to position the hotel as a market leader for ADR and RevPAR. Our pro-forma analysis assumes that a hands-on local or regional operator can operate the hotel with RevPAR penetration that is 10-15% higher than the competitive set by positioning the hotel as one of the newest products in the market with the highest quality of guest rooms in the competitive set. The hotel is encumbered by an attractive non-recourse CMBS loan which prospective purchasers are encouraged, but not required, to assume. The assumable debt is offered at a fixed 5.64% interest rate and matures in March of 2029.

• Property tours are by APPOINTMENT ONLY. Any attempts to visit/contact property without agent approval will result in a ban from all future listings

• Fee Simple Interest in the 77-Unit, 4-Story, Limited-Service Country Inn & Suites by Choice Hotels Built in 2016

• Newest Hotel in the Competitive Set Offered with Minimal Property Improvement Plan to a New Owner

• Assumable Non-Recourse CMBS Debt In-Place with 5.6% Interest, Expiring in March of 2029

• Underperforming Asset with a 97% RevPAR Penetration Index, Despite Being 10 Years Newer than the STR-Defined Competitive Set Hotels

• Absentee, Out-of-State Ownership Profile Creates Opportunity for New Ownership to Drastically Improve Revenue and NOI

• Emerging Submarket Just 30 Miles from Raleigh with Easy Access to I-95 and Route 70

• Variety of Stable Demand Generators Including Transient (I-95), Education (Johnston College), Medical (UNC Health), & Retail/Leisure (Premium Outlets)