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Aloft Tallahassee Management Proposal

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We passionately develop, own, and manage hospitality assets with a focus on operational efficiency and a genuine commitment to elevating the guest experience. As we celebrate 100 years in hospitality, we remain grounded in our legacy while continuing to innovate and shape meaningful experiences for guests and communities.

COMPANY OVERVIEW

OUR HISTORY

In 1926, our founders John, Sr. (Jack) and Marvin McKibbon set out to make their community of Gainesville, Georgia, a better place by opening its very first self-service grocery store. As we celebrate our 100th anniversary in 2026, we reflect on that bold beginning the moment that sparked a century of entrepreneurship, innovation, and growth for the McKibbon name.

What started as a single Piggly Wiggly franchise quickly grew into something much larger. Just 20 years later, John (Jack) McKibbon, Jr. expanded the vision by developing the area’s first motor court, complete with a full-service restaurant. This forward-thinking approach laid the foundation for the company’s evolution, and by the 1960s, McKibbon had become one of the earliest Holiday Inn franchisees, with hotels operating throughout Georgia.

In subsequent decades, hotel development and management became the heart of the business and remain so today. Since taking the helm in the early 1990s, John McKibbon III carried the legacy forward, growing the company’s presence across the Southeastern United States through partnerships with Hilton and Marriott, while cultivating a leadership team known for exceptional service and innovation. In 2019, he brought his vision full circle with the development of Kimpton Hotel Arras in Asheville, North Carolina an iconic project that transformed the city’s skyline and marked a new chapter for the company.

Now, as we enter our second century, the next generation is leading the way. J.B. McKibbon, IV continues the family tradition of growth and innovation, completing his first development project, Hyatt House Tampa Airport Westshore, in 2021 and becoming President of McKibbon Equities in 2023. Under his leadership, this new division focuses on development, asset management, and the McKibbon Family Investment Fund— positioning the company for continued success.

Celebrating 100 years is not just about honoring our past it’s about building our future. With a century of experience behind us and a new generation at the helm, McKibbon remains committed to evolving, innovating, and shaping the hospitality industry for the next 100 years and beyond.

OUR MILESTONES

1920s

1st Piggly Wiggly Franchise

Gainesville, Georgia

1940s

1st Motor Court Property

Gainesville, Georgia

1960s Holiday Inn Franchised Hotels

Georgia

1990s

1st Courtyard by Marriott Franchised Hotel

Athens, Georgia

2010s

1st Kimpton Franchised Hotel Asheville, North Carolina

2020s

1st Hyatt House & Moxy Franchised Hotels Tampa, Florida & Asheville, North Carolina

OUR GUIDING PRINCIPLES

Think bigger.

Being an industry leader means finding better, more innovative ways to serve our partners, guests and communities.

Love your community.

As hotel operators, we are not just hotel brand ambassadors we are city ambassadors. We believe in the cities we serve. It’s a big part of why we choose to do business there.

Do the right thing.

Our commitment to quality and integrity mean we’re not satisfied with good enough or “we’ll fix it later.” We invest our time, energy and resources into delivering heartfelt

Support each other.

The way we treat our work family serves as the foundation for how we do business. Be good to each other, and business will be good to us.

Make a lasting impression.

Above all, it’s how you are remembered that will stand the test of time. Every interaction is an opportunity to go above and beyond. Make it count.

OUR PORTFOLIO & EXPERIENCE

23 Owned Hotels

12 Restaurants & Bars

22 Brands

50 Markets

HOTEL BRANDS

RESTAURANT BRANDS

FLORIDA PORTFOLIO

Boynton Beach

Hampton Inn & Suites

Cape Canaveral

Hilton Garden Inn

Clearwater/St. Petersburg

Hampton Inn & Suites

Clearwater Beach

Dolphin Sands Hotel

Hampton Inn & Suites

Palm Pavilion

Daytona/Ormond Beach

Hyatt House (Opening 2027)

Fort Myers

Residence Inn Fort Myers

Residence Inn Fort Myers

Gulf Coast Town Center

Gainesville AC Hotel

Hilton Garden Inn

Homewood Suites

Homestead

Hilton Garden Inn

Jacksonville

Homewood Suites

Jacksonville Beach

Courtyard

Lakeland

SpringHill Suites

Middleburg

TownePlace Suites

Orlando Airport

Hampton Inn & Suites

Hyatt House

Orlando Downtown Aloft

Orlando I-4 Milennia

Hilton Garden Inn

Pensacola

SpringHill Suites

TownePlace Suites

Sandestin

Courtyard, Hyatt Place, Residence Inn

Sarasota/Bradenton

Courtyard, Residence Inn

St. Augustine AC Hotel

Tallahassee Downtown

Aloft

Hampton Inn & Suites

Hyatt House

Tallahassee North

Courtyard

Residence Inn

Tampa/Riverview/Brandon

Hilton Garden Inn

Tampa Downtown

AC Hotel (Opening 2028)

Moxy (Opening 2028)

Courtyard

Tampa Sabal Park

Residence Inn

Tampa Westshore

Hilton Garden Inn

Hampton Inn & Suites

Homewood Suites

Hyatt House

SpringHill Suites

The Villages/Wildwood

Hampton Inn

Home2 Suites

West Palm Beach

Hampton Inn

REMAINING PORTFOLIO

ALABAMA

Birmingham

Homewood Suites

Huntsville

Four Points

Mobile

Hampton Inn & Suites

FLORIDA

View Slide 11

GEORGIA

Atlanta Buckhead

Hampton Inn & Suites

Atlanta Buford Mall of Georgia

Courtyard

Atlanta Downtown

Hampton Inn & Suites, Home2 Suites

Atlanta Kennesaw

Hampton Inn

Gainesville

Courtyard, Residence Inn (Opening 2027)

Savannah Downtown

Hampton Inn, Holiday Inn Express, Residence Inn, Tempo by Hilton

GEORGIA (Cont’d)

Savannah Midtown

TownePlace Suites

ILLINOIS

Chicago/West Loop-Fulton Market

Hyatt House

MISSISSIPPI

Jackson/Ridgeland

AC Hotel

NORTH CAROLINA

Asheville Downtown

Aloft, AC Hotel, Kimpton Hotel Arras, Moxy

Charlotte City Center

AC Hotel, Hampton Inn, Hilton

Garden Inn, Residence Inn

Durham

Homewood Suites

Raleigh Downtown

Homewood Suites, Tempo

Wilmington

Hotel Lela, Tru

Winston-Salem

Hampton Inn & Suites

SOUTH CAROLINA

Charleston

TownePlace Suites, Tru

Greenville

Aloft

Hilton Head

Hilton Garden Inn

TENNESSEE

Chattanooga Downtown

Courtyard, Residence Inn

Knoxville Turkey Creek

Homewood Suites, SpringHill Suites

TEXAS

Austin Downtown

Hyatt House

VIRGINIA

Charlottesville

Hampton Inn & Suites, Residence Inn

ABACO, BAHAMAS

Great Guana Cay

Kalopsia Seaside Villas & Marina

ALOFT & MARRIOTT EXPERIENCE

ALOFT HOTELS

30+ YEAR PARTNERSHIP

Partnership Circle Award

Recipient, 2017 & 1995

39 MARRIOTT HOTELS

In Our Management Portfolio

ALOFT HOTELS COUNCIL

REPRESENTATION

Bruce Baerwalde, Franchise Advisory Council President

OPENINGS & TRANSITIONS

60+ Opened, 20+ Transitioned

4 ALOFT HOTELS

In Our Management Portfolio

OPENINGS & TRANSITIONS

5 Opened, 1 Transitioned

MARRIOTT

ALOFT EXPERIENCE

DOWNTOWN

ALOFT ORLANDO DOWNTOWN

ALOFT TALLAHASSEE DOWNTOWN

Previously managed Aloft Jacksonville Airport, Aloft Denver Westminster & Aloft Miami Doral

TALLAHASSEE DOWNTOWN

ALOFT ASHEVILLE
ALOFT GREENVILLE DOWNTOWN

AHLA INVOLVEMENT

ASHLEY DIXON

Director of Talent Acquisition & Retention

Career Development Committee

J.B. McKIBBON

President, McKibbon Equities

Owners Committee

JESS HAYDEN

Vice President of Operational Excellence

Sustainability Committee

JIHAD LOTFI

Sr. Vice President of Revenue Management & Digital Marketing

Distribution Community of Interest Committee

KIEL LOMBARDO

Vice President of Food & Beverage Food & Beverage Committee

LAUREN BOWLES

Vice President of Brand, Communications & Events

ForWard Committee & Ambassador

MIKE DICKEY

Sr. Vice President of Human Resources

Human Resources Committee

RAFAEL IBARCENA

Sustainability Manager

Sustainability Committee

RANDY HASSEN

Chief Executive Officer Management Company Executive Committee

WEEJEN LYNCH

Vice President of Engineering

Safety & Security Committee

OUR TEAM

OUR TEAM

It’s not what we do, it’s how we do it.

At our core, we are operators first. It’s a unique perspective that’s critical to our management philosophy and proven track record of success. Our decades of experience in the hospitality industry guides everything from the partnerships we forge to the markets we choose—and don’t choose—to enter. We’re proud to be part of projects that have helped transform and reinvigorate communities across the U.S.

Through our shared vision, our team has led one of the fastestgrowing hotel management groups by embracing constant evolution, braving forward-thinking concepts, and retaining the best talent in the business.

We delight in the commitment to our employees, our partners, and our guests; it’s a reflection of who we are.

50

ASSOCIATES INTERNAL PROMOTIONS

9

3,100 2,125 AVERAGE # OF DAYS TO HIRE NEW ASSOCIATE NEW HIRES IN 2025

4.32 TOTAL COMPANY FAVORABILITY

ALOFT TALLAHASSEE LEADERSHIP TEAM

Bruce Baerwalde President

Lynn Prater Executive Vice President of Revenue Generation

Jihad Lotfi, CRME Senior Vice President of Revenue, Digital Commerce & Marketing

Jess Hayden Vice President of Operational Excellence

Kiel Lombardo Vice President of Food & Beverage

Karl Oates Senior Vice President of Operations

Lauren Bowles Vice President of Brand, Communications & Events

Weejen Lynch Vice President of Engineering

Mike Dickey Senior Vice President of Human Resources & Marketing

Carrie Duncan

Regional Vice President of Operations

Melissa Kimball Senior Director of Digital Commerce & Marketing

MARKET ASSESSMENT

TALLAHASSEE MARKET

A resilient lodging market anchored by Florida’s capital-city role.

Capital City Advantage

Tallahassee’s role as Florida’s capital generates a stable, diversified demand base largely insulated from the swings that affect leisure-driven destinations.

Government-Led Demand

State agencies, legislative sessions, regulatory hearings, and judicial proceedings drive reliable weekday occupancy and related group business.

Institutional Demand

Florida State University and Florida A&M University add academic, athletic, and special event travel; leisure tourism remains secondary.

Year-Round Resilience

Year-round business activity and strong institutional demand generators reduce dependence on seasonal tourism trends.

Thisfoundationpositionsthemarketforsustainedperformanceandlong-termstabilityrelativetomanyotherFloridadestinations.

GOVERNMENT DEMAND

Tallahassee functions as Florida’s capital city first and a tourism destination second.

State & Legislative Travel

Florida State agencies, Legislative Sessions, and regulatory hearings and committee meetings.

Advocacy & Contracting

Lobbyists and advocacy groups alongside government contractors and consultants.

Legal & Federal Travel

Attorneys and judicial-related travel, plus ongoing federal agency travel.

Why It Matters

Predictable base demand, strong midweek occupancy, and market compression during Session.

Consistentgovernmenttravelunderpinsthemarket’sweekdayoccupancybase.

LEGISLATIVE DEMAND

Government demand provides the occupancy base, while legislative demand creates rate opportunity.

Who Comes to Town

State Senators and Representatives, legislative staff, lobbyists, law firms, statewide trade associations, media organizers, and government contractors.

An Annual Convention

Session functions like an annual convention, generating both group and transient demand across the market.

Higher Rate Capture

During Session, reoccurring groups are not tied to per diem restrictions, creating opportunities to drive higher ADRs.

Sessioncompressionisthemarket’smostreliablewindowfordrivingrate.

Event Space & Catering

Sustained demand for meeting and event space plus catering throughout the Session calendar.

LEGISLATIVE DEMAND

SESSION

• In comparing Session dates year over year, odd years tend to outperform even years due to additional committee weeks.

• 2026 Session January 13th – March 13th compared to 2025 Session March 4th – May 2nd (60 days each year)

• 2026 Session started one week later than other even years in the past

• In 2026, they added a Special Session for congressional redistricting which was April 20th-24th

• In 2025, there were 5 committee weeks Jan-Feb, and an additional 6 committee weeks Oct.-Dec.; whereas in 2026 we only anticipate 2 weeks of committee weeks possibly in December. Dates have not been released at this time.

• As we move into 2027, we will see committee weeks Jan.Feb., then flow into 60 days of Session Mar. 2nd-Apr. 30th, and then additional committee weeks Oct.-Dec.

– 7 & 1721 Committee Weeks November Committee

(Potential for 2-dates TBD) December 1-5 & 812 Committee Weeks

Committee

(Potential for 2 – dates TBD)

UNIVERSITY DEMAND

The primary demand driver of weekend compression throughout the year, complementing government travel.

THREE HIGHER-EDUCATION INSTITUTIONS

Florida State University Florida A&M University

TRAVEL BRINGS A BROAD RANGE OF VISITORS

Prospective

Families

State College

HEALTHCARE DEMAND

A stable demand generator providing year-round base and filling gaps when other segments soften.

FSU Acquires TMH

FSU purchased Tallahassee Memorial Health in April 2026; TMH will continue to operate day-to-day.

Clinical & Academic Investment

$150 million directed to clinical faculty, lab resources, research, and academic operations.

Healthcareroomnightsarrivesteadilyacrossthefullyear,independentofSession.

$1.7 Billion Pledge

FSU pledged $1.7 billion over 30 years, including $100 million for property upgrades.

Transient & Extended Stay

HCA Florida Capital Hospital plus traveling nurses, contractors, implementation and IT upgrade teams, and families.

CORPORATE DEMAND

Corporate travel in Tallahassee is government-adjacent business.

Government-Adjacent Sectors

Technology providers, consultants in financial and infrastructure services, engineering firms, legal firms, and vendors.

Rate Opportunity

Creates opportunity for higher ADR because this demand is not tied to per diem.

Healthcare-Related Travel

Pharmaceutical representatives, technology implementation teams, and medical device vendors.

Fills Need Periods

Fills gaps outside Legislative Session and high-demand periods, and supports revenue for event spaces, F&B, and parking.

Corporatedemandisstrongestwhereitintersectsgovernment,university,healthcare,andprofessionalservices.

SPORTS & EVENTS DEMAND

Sports and events generate the market's highest ADRs and occupancy.

University Demand

FSU and FAMU drive commencement, alumni, booster and recruiting weekends, football, basketball, baseball, soccer, softball, and NCAA competitions.

Citywide Events

Youth and amateur sports tournaments, Donald L. Tucker Civic Center events, and festivals throughout the year.

Rate Flexibility

Travelers are generally less constrained by negotiated rates or per diem limits, allowing the hotel to yield inventory strategically.

Revenue Upside

Minimum length-of-stay restrictions lift ADR and drive incremental revenue in event spaces and Food & Beverage outlets.

Eventcompressionletsthehotelyieldinventorystrategicallyandcapturepeak-ratenights.

LEISURE DEMAND

Leisure demand provides weekend, holiday, and shoulder date occupancy.

Demand Drivers

Visiting friends and family, University, Sports and Special Events, State Capital traffic, outdoor recreation, and the regional drive-market.

Premium Weekend ADR

Supports premium weekend ADR during special events.

Rate Resilience

Less rate sensitive than other segments, opening the door to dynamic pricing, packages, and length-of-stay restrictions.

Diverse Commercial Strategy

Enables a more diverse commercial strategy across the full week and the full year.

Togetherthesedriversstrengthenweekendandshoulder-dateperformancethroughouttheyear.

FUTURE SUPPLY & DEMAND OUTLOOK

The outlook for Tallahassee remains favorable across its core demand segments.

University Outreach

Growth in research activity and graduate programs, increased visits, and development of student housing projects.

Legislative Demand

Continues to create compression during Session, special committee meetings, and state meetings.

FSU Health

Purchase of Tallahassee Memorial Healthcare allows for expansion in clinical care, research, and medical education.

Diversifieddemanddriversandlimitednewsupplysupportafavorableoutlook.

Potential Risks

Limited new hotel supply entering 2028-2029 (five hotels in proposed/final planning); geopolitical shifts and rising travel costs may limit ADR growth.

COMMERCIAL STRATEGY

COMMERCIAL STRATEGY

We operate as owners, not just managers, aligning Sales, Revenue Management, Marketing, and Operations around a single objective.

Core Philosophy

Maximizing the profitability and long-term value of the asset through proactive, data-driven, and market-leading commercial strategies.

Owner-Centric Decision Making

We evaluate every strategy through an owner's lens, balancing revenue growth, profitability, market share, and long-term asset value driving the highest possible NOI, not just topline revenue.

Collaborative Commercial Strategy

Revenue Management, Sales, Marketing, Digital Commerce, and Operations work as one commercial team. Weekly strategy sessions align demand generation, segmentation, and business mix, with daily communication on pricing and restrictions.

Proactive vs. Reactive Approach

We anticipate market shifts, demand patterns, and booking trends rather than reacting after opportunities are missed. Continuous monitoring allows us to adjust strategies quickly to maximize performance.

Thisownershipmindsetkeepseverycommercialdisciplinefocusedonprofitabilityandlong-termassetvalue.

COMMERCIAL STRATEGY

REVENUE MANAGEMENT

Data-Driven Decision Making

Decisions are supported by real-time data, market intelligence, competitive analysis, and forecasting tools. We leverage reporting and analytics to identify opportunities and mitigate risks.

Market Share Focus

We closely monitor market share performance, competitive set trends, and positioning. Success is measured not only by revenue growth but also by outperforming competitors.

Dynamic Pricing Strategy

Rates are adjusted based on demand, pace, market conditions, events, and competitive positioning focused on selling the right room, to the right guest, at the right price, through the right channel.

Optimization of Business Mix

Strategic balancing of transient, group, corporate, wholesale, and other segments to maximize profitability, prioritizing demand that generates the strongest total value for the hotel.

COMMERCIAL STRATEGY

DIGITAL MARKETING

Revenue-Generating Function

Digital marketing is a revenuegenerating function, not an expense, aligning every strategy and investment to maximize profitable demand, market share, and longterm asset value.

Dedicated Marketing Lead

A dedicated hotel marketing lead develops and executes a comprehensive digital strategy tailored to each property's unique objectives.

Unified Channel Approach

Paid media, website content, SEO, and digital channels work together to maximize visibility, demand generation, and revenue performance.

Flexible Marketing Plans

Proven foundational strategies balanced with the agility to respond to changing market conditions and opportunities.

Continuous Optimization

Ongoing testing of audiences, offers, creative messaging, landing pages, and media tactics drives incremental revenue growth.

Data-Driven Profitability

A data-driven, profitabilityfocused approach designed to maximize ROI and improve channel performance.

Proactive Performance Management

Ongoing analysis ensures marketing investments are directed toward the highestreturn opportunities.

Right Mix of Demand

Demand driven across the right mix of channels to support both revenue growth and long-term profitability.

COMMERCIAL STRATEGY

SALES

Clustered Sales Structure

Sales leadership at Aloft Tallahassee benefits from a clustered sales structure with the Hyatt House and Hampton Inn & Suites.

Benefits of the Cluster

Continued participation provides sales efficiency, shared resources, and market expertise, maximizing account penetration and revenue-generating opportunities.

Market Visibility

The cluster maintains strong visibility for the hotel within the Tallahassee business community.

Experienced Market Director

Our Market Director of Sales has extensive experience in the Tallahassee market and has developed strong, long-standing relationships across the account base.

Key Relationships

Corporate accounts, government agencies, local attractions, Florida State University partners, sports-related demand generators, and Visit Tallahassee drive market share, repeat business, and new opportunities.

Direct Sales-Driven Organization

McKibbon believes strong sales leadership is critical to the entire commercial strategy. The Market Director provides strategic direction, accountability, and coaching for the sales team.

COMMERCIAL STRATEGY

HOW WE APPROACH GROUP SALES

We’ve shared previously that our strategy includes focusing on government, university, healthcare and sports business. The Aloft’s meeting space allows us to concentrate on small meetings that provide a big impact.

Right Group Segments

Focusing on the right group segments for the hotel.

University Business

Focusing on University-related business throughout the year.

Sports & Team Business

Focusing on sports business and visiting team business.

Small Corporate Meetings

Focusing on small corporate meetings the team can execute well and secure as repeat groups.

Cross-Team Collaboration

Collaborating with our Revenue Management and Digital Marketing teams on packages.

Group Targets in the Funnel

Ensuring we always have group targets in our funnel.

Wedon’ttrytocompetewithbusinessoutsideofourrealmofexpertise.Wefocusonanaggressivestrategythatincludesadirectsaleseffort, networking,andrelationshipfocus,leveragingtheMarriottsystemsgearedtowardsmallmeetingsaswellasourthird-partypartners.

COMMERCIAL STRATEGY

HOW WE APPROACH LOCAL PARTNERSHIPS

Being a strong partner in our community is one of our cornerstones. Aloft Tallahassee is a well-respected partner in the Tallahassee community. Our partnership priorities include: University System

Florida State University, FAMU and Tallahassee State College.

Government & Public Sector

Government and public sector organizations across the region.

Healthcare System

Hospitals, medical practices and healthcare partners.

Tourism & Economic Development

Visit Tallahassee, the Chamber and economic development organizations.

Sports Organizations

Collegiate, youth, amateur and local sports organizations.

Entertainment & Venues

Entertainment, event venues and restaurants.

COMMERCIAL STRATEGY

HOW WE APPROACH MARKET SEGMENTATION

We continually evaluate the segments that are producing a high-yield for Aloft and adjust accordingly.

Government Accounts

The hotel has always taken a relationshipbased approach to government sales. Focus remains on building partnerships with state agencies, contractors, consultants, and project teams. Targets include negotiated corporate rates, all government per diem opportunities, and non-per diem government business.

University Business

The hotel works with all departments at Florida State University and Florida A&M University to capture both transient and group business. It is key to our strategy to have year-round partnerships.

Healthcare Accounts

Our sales approach to healthcare is concentrated on relationship building with hospitals, medical practices, healthcare vendors, traveling clinicians, and patient-family referrals.

COMMERCIAL STRATEGY

HOW WE APPROACH PUBLIC RELATIONS & SOCIAL MEDIA

Public relations is managed in partnership with McKibbon’s communications team and Marriott’s brand resources, with the General Manager serving as the hotel’s local spokesperson. Social media is managed as an extension of the Aloft brand voice — local, energetic and design-forward.

Public Relations

• Local storytelling with Tallahassee media and lifestyle outlets

• Coordinated announcements for renovations, milestones and leadership news

• Joint destination coverage with Visit Tallahassee and the Chamber

• Visible participation in community events, sponsorships and charitable initiatives

• A defined crisis communication protocol with McKibbon and brand approval

Social Media

• Content calendar across Instagram and Facebook

• Photography and video featuring the hotel, W XYZ bar and events

• Amplification of university, sports and community moments that drive demand

• Paid boosts aligned to need periods and promotional offers

• Monitoring and response to reviews, comments and direct messages

• Quarterly review of engagement and content performance with hotel leadership

COMMERCIAL STRATEGY

TOOLS & SYSTEMS

CoSTR Brand platforms (OneYield, MarRFP, ACRS, etc.)

Demand360

Agency360

Lighthouse BI

Lighthouse Rate Shopping

Kalibri

Delphi

HotelPort Travel Media Group (TMG)

SEMrush – Search Engine Optimization

COMMERCIAL STRATEGY

We will continue to leverage Marriott Bonvoy as a key revenue and market share driver by focusing on member acquisition, member engagement, and direct booking production.

Increase Bonvoy Enrollment

Associates actively enroll new members at the front desk; part of leadership and associate incentive plans.

Drive Member Room Nights

Capture more Bonvoy member stays through targeted promotions, Marriott campaigns and local sales efforts.

Maximize Direct Bookings

Shift business from OTA channels to Marriott direct channels to improve profitability and repeat visitation.

Use Marriott’s Marketing Ecosystem

Leverage Bonvoy promotions, digital campaigns, member-exclusive offers and email to fill need periods.

Enhance Guest Recognition

Deliver consistent elite recognition and personalized service to lift satisfaction and repeat business.

Target High-Value Members

Work with Marriott’s revenue and commercial teams to attract premium segments driving higher ADR.

MonitorkeyKPIs:Bonvoypenetration,enrollmentgrowth,directchannelcontribution,repeatguestproduction,satisfactionscoresandRGI.

COMMERCIAL STRATEGY

GUEST SATISFACTION STRATEGY

At the core of our commercial strategy is delivering an exceptional guest experience that consistently exceeds expectations. We view guest satisfaction as a revenue-generating initiative, not simply an operational metric.

Guest Satisfaction Scores

Review guest feedback daily to improve service delivery, cleanliness, maintenance and overall experience.

Service Recovery Excellence

Empower associates to resolve concerns before checkout, turning detractors into advocates.

Leverage Guest Feedback

Use Marriott GSS, Medallia and review platforms to spot trends and implement corrective action plans.

Associate Engagement

Training, recognition programs and a strong service culture create memorable guest experiences.

Drive Repeat Business

Satisfied guests return, recommend the hotel and stay active in Marriott Bonvoy, raising lifetime value.

Protect and Grow ADR

Strong satisfaction scores maintain pricing power, market reputation and higher-rated business.

KeymetricsinMDash:GuestSatisfactionScore(GSS),IntenttoRecommend,OnlineReputationScore,ReviewResponseRate,Bonvoy Enrollment&Penetration,RevPARIndex (RGI),RepeatGuestPercentage,ADRGrowthandServiceRecoveryTracking.

OPERATING STRATEGY

LABOR MANAGEMENT

Hotel Effectiveness is our daily labor management platform for optimizing productivity and controlling labor cost.

Productivity Tracking

Housekeeping and all-department labor performance measured daily against standards.

Overtime Control

Overtime risk monitored in real time, with proactive staffing adjustments as needed.

Forecast-Based Scheduling

Staffing levels aligned to anticipated business demand to improve efficiency and service delivery.

Perfect Wage Benchmarking

Compensation benchmarked to local market conditions, keeping rates competitive and supporting recruitment and retention.

Revieweddailybythehotelteamtoassessprior-dayresultsandmonitoredbytheabove-propertysupportteamforportfolio-widebenchmarking.

ASSOCIATE RECRUITMENT & RETENTION

We recruit, engage, and develop associates through a connected set of platforms and listening tools.

Paradox Recruiting

Our recruiting platform streamlines hiring by reducing timeto-fill, automating interview scheduling, and improving efficiency across locations.

Associate Engagement Surveys

Conducted twice annually to measure satisfaction and stay connected to associate needs, with action plans built from every result.

Leadership Engagement Survey

Completed by each hotel's Sales Leader and GM, letting us hear directly from the field on how we meet hotel expectations and needs.

McKibbon University

Ongoing training and professional development, equipping associates with the skills and resources to advance within the organization.

Surveyactionplansareapprovedandpostedineachhotel'sbreakroom,strengtheningworkplacecultureanddemonstratingthat wearelistening well.

GUEST SERVICE CULTURE

At the heart of McKibbon's culture is an unwavering commitment to delivering exceptional guest experiences.

Guest Satisfaction Incentive Program

Offered monthly and rewarding all associates, not just leadership team members, for their contributions to guest satisfaction.

McKibbon Momentum Incentive Program

Recognizes associates who are specifically acknowledged by guests across all satisfaction platforms.

Listening Channels

Marriott guest surveys and online review channels give us a complete picture of how guests experience the hotel.

Training & Coaching

Ongoing training, regular coaching, and consistent communication reinforce a culture of service excellence.

GuestsatisfactionispartofourDNA:throughrecognition,engagement,andcontinuousdevelopment,weempowereveryassociate tohelpcreate memorableguestexperiences.

PREVENTATIVE MAINTENANCE & ENGINEERING SUPPORT

Quore and our Regional Engineers keep every property well-maintained, safe, and operationally efficient.

Quore Platform

We utilize Quore across all of our hotels as our primary preventive maintenance and asset management platform.

Accountability in Execution

Properties manage guest room and equipment preventive maintenance, work orders, life safety inspections, and asset protection checklists.

Capital Expenditure Requests

Quore also serves as the centralized platform for submitting, tracking, and managing capital expenditure requests.

Engineering Safety Reviews (ESRs)

Regional Engineers conduct comprehensive inspections covering Quore compliance, preventive maintenance execution, life safety standards, and overall facility condition.

ESRsalsoidentifytrainingopportunitiesandprovidecoachingthatstrengthenstheskillsofboththeengineeringteamandhotelleadership.

QUALITY ASSURANCE

Quality assurance audits help us maintain brand standards and continuously improve hotel operations.

Leadership Review

Results are reviewed with hotel leadership to identify strengths, gaps, and opportunities to enhance the guest experience.

Action Plans & Accountability

Deficiencies are addressed through action plans with clear ownership and follow-up to ensure execution.

Trend Identification

Audits surface trends across departments so we can share best practices and deliver targeted training.

Proactive Improvement

Issues are addressed before they impact guest satisfaction, strengthening operational consistency.

Byusingauditfeedbackasacontinuousimprovementtool,weprotectbrandstandardsanddrivehigherguestsatisfactionandoverallhotel performance.

ASSET PRESERVATION

Protecting and preserving our hotel assets is a year-round priority, supported by disciplined systems, routine oversight, and proactive planning.

Preventive Maintenance Systems

Quore powers preventive maintenance, work order management, and asset tracking across every property.

Regional Leadership Oversight

Regional Vice Presidents focus on Quore utilization and overall property condition through routine hotel visits throughout the year.

Up to Six Inspections Annually

Regional Directors of Engineering add further visits, upholding maintenance standards and catching issues early.

Planning & Rapid Response

Vendor partnerships, structured capital planning, and emergency response procedures let us act quickly on unexpected situations.

Thisproactive,disciplinedapproachprotectsthephysicalasset,extendsthelifeofbuildingsystemsandequipment,andensuresasafe,wellmaintainedenvironmentforguestsandassociates.

FOOD & BEVERAGE

The Aloft brand is supported by a dedicated Food & Beverage Support Team that adds expertise beyond the Regional Vice President's oversight.

Dedicated F&B Support Manager

Every hotel is assigned an F&B Support Manager who assists with on-site operational reviews, menu creation and overall efficiency.

Menus, Cost Control & Safety

Menu development, cost control strategies, and food safety compliance drive consistency, profitability, and brand standards.

W XYZ® Bar Programming

Innovative beverage offerings, promotional events, seasonal programming, and local partnerships fit the Aloft social atmosphere.

Deep Industry Experience

Backgrounds in independent restaurants, lifestyle hotel brands, restaurant design, and concept development.

Consistentexecutionandcreativeactivationscreateaninvitingvenueforhotelguestsandlocalpatronsalike,enhancingtheguestexperiencewhile maximizingF&Bperformance.

TECHNOLOGY PLATFORMS

We pair Marriott's technology suite with McKibbon's own platforms to drive visibility, efficiency, and informed decisionmaking.

Marriott Platforms

M-Dash, MINT, and Qualtrics track KPIs, brand compliance, guest satisfaction, and hotel performance.

McKibbon Intelligence & Finance

Our Tableau-powered platform gives real-time visibility across the portfolio, with Core (M3) and an internal forecasting tool for finance.

Sales, Marketing & Revenue

Lighthouse, ZoomInfo, Delphi, Demand360, Agency360, and CoStar supply market intelligence, benchmarking, and pricing insight.

Site Audit Pro on Property

RVPs and SVPs document observations, track action items, and capture photos during visits, strengthening follow-up.

Usedtogether,theseplatformssustainvisibility,operationalefficiency,andperformance,deliveringresultsforguests,associates,andowners.

TRANSITION PLAN

TRANSITION TIMELINE

Pre-Close | Planning

Ownership Setup Banking Insurance Marriott Transition Planning

STAFFING

Our approach preserves the existing leadership team and associate base to protect operational performance through the ownership transfer.

Leadership Team

Maintain continuity of all key department heads where possible, conduct an ownership introduction and expectation meeting, and align performance goals and reporting requirements with the management company.

Why Continuity Works

Existing knowledge of the market, hotel, and brand; established associate relationships; immediate operational stability; and no learning curve to McKibbon systems and platforms.

General Manager Selection

Given the value of continuity, our recommended approach is to retain the current General Manager, allowing for owner perspective and assessment in the process.

Benefits & HR Transition

Minimal disruption with incumbent management in place. Payroll, employee records, benefit plans, and enrollments remain as is.

Adedicatedcorporateteamleadsandcoordinatesalltransitionactivitiestoensureaseamlessownershiptransfer.

SYSTEMS CONVERSIONS

Our dedicated transition team coordinates the migration and setup of all ownership and operational systems, ensuring seamless integration of financial, technology, brand, and reporting platforms while maintaining uninterrupted hotel operations throughout the transition.

Accounting

Establish ownership banking relationships, cash management structures, integrating historical financial data into the accounting platform, coordinating audit and opening balance sheet requirements, and delivering customized ownership reporting packages.

Technology

Existing hotel technology remains in place with incumbent management and have benefits of corporate MSAs with history included.

Purchasing

Existing Avendra GPO agreements remain in place, preserving leveraged purchasing power, supplier relationships, and rebate programs, including the current 7% rebate structure, without disruption to hotel operations.

Vendors

Strategically review to evaluate existing agreements and identify opportunities to retain, renegotiate, or competitively bid services, ensuring the best overall value while preserving pricing advantages, service levels, and operational continuity for ownership.

COORDINATION & OPERATIONAL CONTINUITY

Keeping McKibbon in place means no interruption to Marriott systems access, guest experience, or brand standards. As part of the Marriott Approved Third Party Operator program, coordination is minimized and the hotel continues to operate normally throughout the transition.

Core Hotel Systems

• Stay PMS (Marriott Property Management System)

• Sales & Catering System

• POS Systems (Restaurant, Bar, Market)

• Accounting Platform

• Revenue Management Systems

• Timekeeping & Payroll Systems

• Marriott Brand Interfaces & Integrations

• Guest Reservation Interfaces

• Business Intelligence & Reporting Tools

Operational Service Providers

• Waste Management Services

• Elevator Maintenance Provider

• Fire & Life Safety Vendors

• Telecommunications Providers

• Internet Service Providers

• HVAC & Equipment Maintenance Vendors

• Kitchen Equipment Service Providers

• Preventive Maintenance Contractors

• Security & Access Control Vendors

RISK MANAGEMENT

Our risk management approach extends beyond insurance compliance. Through proactive safety reviews, loss prevention initiatives, executive oversight, and carrier partnerships, we help protect the asset, reduce liability exposure, and safeguard ownership returns.

Insurance and Claims Management

Provide comprehensive insurance transition support, analyze loss trends through detailed loss run reviews, coordinates claims and carrier communications, and implements strategies to minimize risk exposure.

Incident Response and Compliance

Maintains standardized incident reporting protocols, oversees regulatory and brand compliance requirements, and ensures timely resolution of identified risks.

Engineering and Safety Reviews

Conduct ongoing Engineering Safety Reviews through our Regional Director of Engineering team to assess life safety systems, asset condition, preventative maintenance programs, and operational risks.

Executive Oversite and Audit Support

Provide cross-functional support from Engineering, Legal, Operations, Finance, and Safety leaders while partnering with insurance carriers on scheduled and random safety audits

OWNERSHIP TRANSITION EXPERIENCE

If incumbent management is selected, the prior 30 days lead up to day 1 of ownership, ensuring a seamless ownership change with no operational disruption.

Ownership and Legal Transfer

• Formal onboarding and contract assignments

• License and permits transfer

• Liquor license and alcohol compliance

• Marriott ownership coordination

Financial and Workforce Setup

• Banking and treasury setup

• Insurance implementation

• Employee transfer, payroll and benefits

• Vendor notification and account re-papering

Systems and Operational Continuity

• PMS, POS and IT systems cutover

• Group bookings and deposits handoff

• Transition status reporting

Transition Advantage

The hotel already benefits from an experienced operating team, established Marriott systems, existing vendor relationships, and proven operating procedures.

Ownershipexperiencesaseamlessintegrationintoourmanagementplatform,supportedbyclearcommunication,disciplinedexecution,andaproven frameworkfocusedonmaximizingassetperformanceandlong-termvalue.Operationalcontinuityisensuredthroughtheretentionoftheexperienced managementteam,establishedoperatingsystems,andstrongbrandandmarketrelationships.Thisallowsforaseamlessownershiptransitionwithno disruptiontoguests,associates,orhotelperformancewhilecontinuingtodriverevenue,profitability,andassetvaluefromdayone.

FINANCIAL STRATEGY

FIVE-YEAR OPERATING PROJECTION

STAFFING GUIDELINES

A lean, people-first staffing model that sustains service levels and retains top talent.

People-First Operating Model

Our staffing strategy is built around proven operating models that support efficient hotel performance while maintaining exceptional guest service. Our people-first culture has been a key driver of longterm success and remains central to our operating philosophy. We use market-based compensation tools, incentive programs, associate feedback, and ongoing engagement initiatives to stay competitive in attracting and retaining top talent.

Staffing Levels Over the Projection Period

Given our lean and efficient operating structure, we do not anticipate significant changes to staffing levels over the five-year projection period. Our focus remains on optimizing productivity, maintaining appropriate staffing levels based on business demand, and ensuring our teams have the resources needed to succeed. We recruit proactively and continuously develop high-performing leaders and associates across all positions.

Leadership Development and Accountability

The hotel benefits from strong tenure among its leadership team and associates, contributing to operational stability, guest satisfaction, and performance. To ensure continued growth, our Regional Vice Presidents (RVPs) and Senior Vice Presidents (SVPs) emphasize leadership development, accountability, and performance management through property visits, coaching, training, and succession planning aligned to the hotel's long-term objectives.

CAPITAL EXPENDITURE ASSUMPTIONS

Capital needs are identified early through disciplined maintenance and planned collaboratively with ownership.

Proactive Asset Preservation

Our operational philosophy emphasizes proactive asset preservation and equipment maintenance to maximize the useful life of all building systems, furnishings, and equipment. Through the disciplined use of Quore , regular property inspections, and ongoing oversight from hotel leadership, Regional Vice Presidents, and Regional Engineering support, we focus on identifying maintenance needs early and addressing them before significant capital investment becomes necessary.

Capital Planning Process

At this time, any capital planning would be developed from the property inspections completed as part of the purchase process and the brand Property Improvement Plan (PIP) process associated with the change in ownership. Capital planning remains ongoing and collaborative, with identified needs communicated to ownership for consideration, budgeting, and long-term planning. In the fourth quarter, hotel leadership and McKibbon's corporate team will complete their annual review and recommend capital projects for the 2027 operating year.

WhyMcKibbon:weareuniquelypositionedtosupportthefinallistofprojectstobeidentified,withourhistoryandunderstandingoftheAloft Tallahassee.

FF&E RESERVE PHILOSOPHY

A 4.0% FF&E Reserve provides dedicated funding to protect the long-term quality, functionality, and competitiveness of the hotel.

Protecting Long-Term Asset Value

Our FF&E reserve philosophy is centered on maintaining the long-term quality, functionality, and competitiveness of the hotel while protecting ownership’s investment. To support this objective, a 4.0% FF&E Reserve is suggested and reflected in the Pro-forma.

Planning Ahead, Not Reacting

This reserve, combined with our proactive preventive maintenance program, regular engineering inspections, and ongoing asset preservation efforts, allows us to strategically plan for future replacement needs rather than react to deferred maintenance issues. Through routine property assessments, leadership reviews, and collaboration with ownership, we continuously evaluate the condition of hotel assets and prioritize investments that support guest satisfaction, operational efficiency, brand standards, and long-term asset value.

Theresult:adisciplinedreservestrategyandpreventivecareextendtheusefullifeofassets,minimizeunexpectedcapitalexpenditures,andkeep thehotelinexcellentconditionforguestsandassociatesalike.

BUDGET & FORECASTING PROCESS

A disciplined, collaborative process that gives ownership accurate financial visibility and proactive business planning.

Forecast Cadence

Formal forecasts are submitted bi-monthly, while the General Manager reviews and updates the model weekly. Weekly submissions, distributed Fridays, can be accommodated if ownership prefers.

Weekly Revenue Calls

Hotel leadership, revenue strategy, and regional leadership review performance, booking pace, market conditions, and future demand to keep assumptions current.

Annual Budget Build

Beginning mid-August, budgets use year-to-date actuals, forecasts, and market trends. The GM sets revenue projections from market conditions, competitive position, and RGI opportunity.

Ownership Review

Topline budget is submitted through ownership's preferred platform and timeline. After approval, operating expenses are finalized and delivered against required deadlines.

Operatingexpensesarebuiltfromhistoricalperformanceandbusinessneeds,withinputfromSalesleadershipandRegionalVice Presidents, keepingoperations,corporate,andownershipaligned.

ACCOUNTING & REPORTING

ACCOUNTING & REPORTING

ACCOUNTING STRUCTURE AT THE CORPORATE & PROPERTY LEVEL

Accounting Structure

The General Manager and Assistant General Manager are responsible for day - to - day accounting at the property level, including accounts payable, accounts receivable, cash management, and daily reporting. These efforts are supported by M3 Accounting Services , which provides professional accounting support and financial processing. McKibbon's internal accounting team adds a further layer of oversight and guidance for hotel leadership and Regional Vice Presidents.

Financial Review

Financial performance is reviewed collaboratively by the General Manager, Regional Vice President (RVP), and McKibbon's assigned accounting leadership team to ensure accuracy, accountability, and operational alignment. Final monthly financial statements and profit-and-loss reports are subject to RVP and SVP review prior to distribution, ensuring consistency and a thorough understanding of the hotel's financial performance before information is shared with ownership.

ACCOUNTING & REPORTING

FORECASTING & BUDGETING PROCESS

Forecasting Process

Forecasting is completed and reported on the 15th of the month, while the General Manager reviews and updates the forecast model weekly so current business trends and booking activity are reflected accurately. If ownership prefers more frequent submissions, we are happy to accommodate more a frequent model; forecasts are traditionally reviewed and distributed on Fridays. A 90-day forecast is submitted at first of each month.

Weekly revenue strategy calls review booking pace, market conditions, group activity, and revenue opportunities, keeping forecasting assumptions aligned with the hotel's operating outlook and providing proactive visibility into performance expectations.

Budget Process

McKibbon follows a disciplined annual budgeting process that typically begins in mid-August, developed using year-to-date results, current forecasts, historical trends, market conditions, and future business expectations.

The General Manager, Revenue Manager, and Sales Leader establish the revenue baseline using market analysis, competitive performance data, and anticipated RevPAR and RGI growth. Expense budgets are built from prior-year performance, operational trends, and anticipated business needs, then reviewed by Sales leadership and the Regional Vice President.

Once revenue projections are finalized, the topline budget is submitted to ownership through their preferred platform and deadlines. After approval, expense budgets are finalized and reviewed before the completed annual budget is submitted.

ACCOUNTING & REPORTING

TIMING OF FINANCIAL PACKAGES, FORECASTS & BUDGET PRESENTATIONS

Timing and Deliverables

Reporting timelines are established in accordance with the Management Agreement and ownership requirements. In most cases, monthly financial packages are distributed within 15 business days following the end of the accounting period, and the accompanying monthly management report is submitted within three business days of the financial package release.

Forecasting can be delivered on either a weekly or bi-monthly basis depending on ownership preference, with bi-monthly reporting being the typical standard. Annual budget presentations and submissions are completed according to ownership's specified timeline, ensuring sufficient review, discussion, and approval prior to finalization.

Monthly Management Critique

As part of our monthly reporting process, hotel leadership provides a comprehensive management critique detailing the property's financial and operational performance, including revenue and expense results, STAR performance, sales activity, market segmentation trends, guest satisfaction scores, and brand audit results.

The critique serves as a valuable communication tool between hotel leadership, McKibbon corporate leadership, and ownership, providing insight into performance trends, challenges, accomplishments, and strategic initiatives. Ownership review calls follow report submission to discuss results and establish priorities moving forward.

ACCOUNTING & REPORTING

INTERACTION WITH OWNERSHIP ASSET MANAGEMENT AND ACCOUNTING

Asset Management & Capital Planning

Day-to-day communication regarding asset management, operational initiatives, and capital planning is coordinated through the property's RVP and SVP. These leaders work closely with ownership and corporate resources to ensure alignment on business objectives, asset preservation strategies, and capital investment opportunities.

Engineering & Asset Protection

For engineering, asset protection, and capital planning initiatives, ownership can expect regular collaboration with McKibbon's Vice President of Engineering and Regional Directors of Engineering, ensuring expert support and oversight for all property-related projects and longterm asset strategies.

Accounting Access

For accounting matters beyond routine profit-and-loss reviews, ownership will have direct access to McKibbon's accounting leadership team based in Gainesville, Georgia. These communications are coordinated with the RVP and SVP to ensure transparency.

PROPOSED MANAGEMENT

AGREEMENT TERMS

PROPOSED MANAGEMENT AGREEMENT TERMS

FEE STRUCTURE AND TERM

Base Management Fee

Base management fee will be 3% of Gross Revenues.

Incentive Management Fee

10% of the remaining Net Operating Income after the Owner receives a 10% Owner’s Return. The Incentive Management Fee shall not exceed 1% of Gross Revenues.

Term & Renewals

Initial term would be 3 years with 3year extensions available.

PROPOSED MANAGEMENT AGREEMENT TERMS

KEY COMMERCIAL TERMS

Operating Capital

$500 per key, or $81,000 always.

Personnel Changes & Training

There are no anticipated changes in personnel or need for training.

Transition Costs

We estimate transition costs to not exceed $8,500, and all costs will be tied to the transition of contracts, licenses and permits.

Benefits & PTO

As the incumbent operator today, all benefits would continue as they are in place.

Continuityastheincumbentoperatorkeepstransitioncostsandorganizationaldisruptiontoaminimum.

PROPOSED MANAGEMENT AGREEMENT TERMS

TERMINATION DETAILS

Termination Upon Sale

Termination upon sale with no termination fee.

Termination Without Cause

Termination without cause.

Termination for Performance

Termination for performance will be based on the following metrics.

• The hotel’s RevPAR Penetration Rate for such period is less than 95% of budgeted RevPAR Penetration Rate and Gross Operating Profit is for such period less than 95% of budgeted Gross Operating Profit

• Or the hotel’s RevPAR Penetration Rate for such period is less than 85% of budgeted RevPAR Penetration Rate

• Or Gross Operating Profit for such period is less than 85% of budgeted Gross Operating Profit

PROPOSED MANAGEMENT AGREEMENT TERMS

CENTRALIZED SERVICES | REVENUE MANAGEMENT

0.45% of Room Revenues Paid Monthly

Inventory Management

• Manages room authorizations, rates and restrictions

• Manages rooms inventory to maximize cluster rooms revenue

• Maintains the transient rooms inventory for the hotel(s) and responsible for maximizing transient revenue

• Releases group rooms back into general inventory and ensures clean booking windows for customers

• Monitors transient and group inventory daily to ensure straight-line availability and maximization of revenue potential for all brands

Selling Strategy & Systems

• Ensures that the hotel(s) sales strategies are effectively implemented in the reservation system and the inventory system

• Ensures that sales strategies and rate restrictions are communicated, implemented and modified as market conditions fluctuate

• Uses reservations system and demand forecasting systems to determine, implement and control selling strategies

• Understands the working relationship between sales, reservations and property management systems

• Ensures compliance and participation in company promotions and eCommerce channels

• Ensures all hotels follow brand strategies that will maintain and/or increase the hotel(s) revenue per available room (RevPAR)

• Promotes and protects brand equity

Analysis & Stakeholders

• Prepares sales strategy critique

• Creates long range forecast

• Initiates, implements and evaluates revenue tests

• Compiles information, analyzes and monitors actual sales against projected sales.

• Conducts sales strategy analysis and refines as appropriate to increase market share for all properties.

• Participates in ownership reviews (calls and or meetings)

• Attends meetings to plan, organize, prioritize, coordinate and manage activities and solutions

• Understands and meets the needs of key stakeholders (owners, corporate, guests, etc.)

PROPOSED MANAGEMENT AGREEMENT TERMS

CENTRALIZED SERVICES | DIGITAL COMMERCE & MARKETING

$1,500 Monthly Management Fee

Strategy & Advertising

• Annual marketing strategy and budget

• Paid advertising strategy and execution but not limited to OTA ads, Google, paid social, and more.

• Collaboration with Revenue Management and Sales to maximize topline revenue

• Special offer strategy and promotions support

• GDS Campaign optimization and management

Content & Channels

• Hotel website content management and optimization

• OTA platform content optimization including Expedia and Booking.com.

• SEO services including keyword research, content optimization and competitive analysis

• Email marketing support

• Enhanced local listings management including Google business profiles, TripAdvisor, Yelp, Yext and more.

• Photoshoot coordination and digital asset management

Reputation & Support

• Monitoring and support online reputation management for key review sites such as Expedia, Google, Yelp, Marriott Verified Reviews, TripAdvisor and more.

• Ownership review participation

• Property leadership training and education

PROPOSED MANAGEMENT AGREEMENT TERMS

CENTRALIZED SERVICES | ACCOUNTING

$2,748 Monthly Fee

Scope of Services

• Centralized accounting services consist of the processing of daily accounting transactions necessary for the preparation of the monthly financial statements, including general ledger, accounts payable, payroll, cash flow from operations and banking.

Included in the Fee

• Express mail and regular postage for items sent specifically to or on behalf of the Hotel, which would include accounts payable checks, weekly invoices and accounting information to and from the Hotel, payroll checks, payroll reports and other documents necessary for the efficient operation of the Hotel

• Telephone and fax costs specifically for the Hotel; and

• Costs of photocopying specifically for the Hotel

Excluded from the Fee

• Payroll processing firm fees and payroll personnel charges associated with processing the Hotel’s payroll

• Banking service charges for operating and maintaining the Agency Account.

• Software License and Support Fees for M3 Accounting Services, Inc.

PROPOSED MANAGEMENT AGREEMENT TERMS

Territory Restriction

• We propose a management restriction of 5 miles. This restriction would require the approval of Roch for any added hotels to our managed portfolio.

• This restriction would exclude the Hyatt House and Hampton Inn and Suites we manage today.

Reporting

• Monthly Business Critique to include review of financial performance, market share, guest satisfaction, capital plans, AR and other key metrics provided within 3 business days of the financial closing.

• Forecast for 90 days at the first of each month.

• Current month forecast update on the 15th of the month.

FF&E and Capital

• We utilize the Quore platform to house all equipment data, engineering checklists (daily, weekly, monthly, annually) and preventative maintenance records, and to manage the capital spend approval process.

• The approval process begins with the Chief Engineer and goes through the GM, RVP and RDOE, with final approval by the Owner.

STRATEGIC TOPICS

OWNERSHIP PERSPECTIVE

What would we change?

• Some of the brand required morning breakfast options on a more creative or healthy side.

• Re-laminate desktops in balance of rooms. This however is not a major ROI item, mostly design related, but could have an impact on GSS

• Replace barn doors over time with a lighter and easier/cheaper option to source. Would not consider this an immediate need.

What are the three largest opportunities?

• Continued MPI growth with added crew and other base business; shrink the box to leverage more rate and support an ARI focus during high-demand periods of Session, other demand events, and football games

• GOP management — remain disciplined in good and difficult times to maximize the bottom line (Flex and Flow)

• Guest satisfaction consistency in high ADR times

What would we leave alone?

• F&B operation model with Starbucks

• The leadership team

• The labor model

What are the three largest risks?

• Government shut-downs affecting sessions and committee business

• Declining labor pool in the rooms division and the need to utilize any forms of contract labor, which we do not currently

COMMERCIAL STRATEGY

Greatest Opportunity for ADR Growth

The greatest opportunity for ADR growth is to maximize rate during high-demand periods, particularly around Florida State University football weekends, major sporting events, graduation ceremonies, legislative sessions, and other citywide demand generators. Our revenue strategy team works closely with hotel leadership to identify these compression periods well in advance and implement dynamic pricing strategies that capitalize on elevated demand. This has been a consistent focus and a proven driver of ADR growth over the years.

Throughout the current year, we have maintained a disciplined approach to revenue management by closely monitoring booking pace, market demand, and competitive positioning. By recognizing key event weekends and adjusting pricing strategies accordingly, the hotel has successfully captured premium rates while maintaining strong occupancy performance.

How Should the Hotel Improve Market Share?

The most significant opportunity to improve market share is acquiring crew business that would be a gamechanger over the traditionally softer summer periods when universityrelated demand declines. Historical performance and production analyses have demonstrated that airline crew business can be highly profitable when negotiated at the appropriate rates, especially having 162 rooms.

By maintaining strong relationships with crew providers and aggressively pursuing these opportunities, the hotel can improve occupancy, stabilize revenue, and strengthen overall market share without compromising rate integrity on an annual basis.

COMMERCIAL STRATEGY

Which Demand Segments Are Underpenetrated?

Other than the highly competitive and limited contract segment, the hotel currently maintains a well-balanced mix of business across all major demand segments. The team actively manages transient, group, corporate, association, SMERF, and special event business to ensure optimal revenue performance. However, the Negotiated segment continues to be the segment in 2026 that is a focus. Our results in group have been great, and the shift of Other Discount to BAR has been well executed, but we recognize there is more opportunity in the Negotiated segment.

How Should Marriott Bonvoy Be Better Leveraged?

The hotel focuses on maximizing the benefits of the Marriott Bonvoy platform by increasing member enrollment, driving loyalty participation, and leveraging Bonvoy promotions to attract and retain guests. Additional opportunities exist to further utilize Bonvoy within the group and event segments by promoting member benefits during the sales process and encouraging repeat business from event attendees and planners.

Through enrollment efforts, targeted promotions, and strategic use of Marriott's loyalty ecosystem, the hotel can further strengthen guest retention, increase direct bookings, and enhance overall revenue performance while improving long-term customer loyalty via Guest Satisfaction too.

ASSET MANAGEMENT

WHICH CAPITAL INVESTMENTS WOULD DELIVER THE GREATEST ROI?

No Major Capital Gap Today

Beyond investments already made and the upcoming PIP requirements under new ownership, we see no capital opportunity that would materially improve ROI. The hotel is in good condition and prior spend targeted revenue, guest satisfaction, and efficiency.

Revenue Strategy Outperforms Capex

Rather than relying on major capital expenditures, our focus is eCommerce, revenue management, and digital distribution. Online marketing, OTA optimization, Marriott distribution platforms, and revenue tools have historically returned more than traditional projects.

Targeted Investments Already Paying Off

The hotel has benefited from enhancements to the Starbucks/Bistro food and beverage model, upgraded back-of-house catering equipment, and improvements that elevate meeting and event food productionstrengthening guest experience and adding revenue.

How We Would Evaluate Future Capital

Our focus stays on maximizing return from existing assets through disciplined revenue strategy, asset preservation, and preventive maintenance. Future recommendations would be judged on ownership objectives, market conditions, brand requirements, and demonstrated ROI.

ASSET MANAGEMENT

WHERE DO WE SEE OPPORTUNITIES TO IMPROVE OPERATING EFFICIENCIES?

Operating From a Position of Strength

The hotel has demonstrated consistent discipline in managing labor, expenses, and overall operational performance. We see no significant areas requiring corrective action - the focus is continuous improvement and incremental gains in profitability.

McKibbon Intelligence

Our proprietary platform, powered by Tableau, provides real-time visibility into financial, operational, sales, and guest satisfaction metrics - enabling hotel and corporate leadership to decide quickly and address trends proactively.

Purpose-Built Operating Platforms

Hotel Effectiveness for labor management, Quore for maintenance and asset protection, and Marriott's business intelligence suite automate processes, improve accountability, reduce administrative burden, and deliver actionable insights.

Where the Next Gains Come From

The greatest efficiency gains ahead will come from strategic use of AI, enhanced reporting, process automation, and data-driven decision-making rather than operational restructuring - supporting associates, guests, and financial performance.

ASSET MANAGEMENT

KEY PERFORMANCE INDICATORS OWNERSHIP SHOULD MONITOR MONTHLY

RevPAR

Revenue per available room, tracked monthly against budget and prior year.

RGI / RPI

Market share index versus the competitive set - the top indicator of relative performance.

Bonvoy Penetration

Marriott Bonvoy contribution and new member enrollments at the front desk.

Guest Satisfaction (GSS)

Brand satisfaction scores, online reputation, and consistency of service execution.

Key Channel Contribution

Mix and cost of business by booking channel, from brand.com through the OTAs.

Labor Cost & Productivity

Labor as a percentage of revenue, with hours-per-occupied-room productivity metrics.

Sales Pace & Business Mix

Forward booking pace and segment mix across Group, Negotiated, and Transient.

FIRST-YEAR PRIORITIES

BUILDING ON THE SUCCESS OF 2026 ACROSS THE ENTIRE BALANCED SCORECARD

Increase Market Share & RGI

RPI/RGI remains the top indicator of market share. Grow share through disciplined revenue management, strategic pricing, and optimization during FSU football weekends, legislative sessions, graduations, and special events.

Maximize Revenue & Profitability

Drive ADR growth where market conditions support it while maintaining strong occupancy levels across the year.

Enhance Guest Satisfaction

Maintain a focus on consistent guest satisfaction scores, online reputation, Marriott brand measures, and service execution.

Strengthen Associate Engagement

Recruit, retain, and develop top talent through competitive compensation, engagement surveys, leadership development, and McKibbon University training.

Protect & Preserve the Asset

Continue disciplined utilization of Quore, preventive maintenance programs, engineering inspections, and property visits to keep the hotel in excellent condition.

CURRENT OWNER & OPERATOR INSIGHTS

WHAT OPPORTUNITIES REMAIN UNREALIZED, AND WHAT WOULD WE DO DIFFERENTLY TODAY?

Unrealized Opportunities

The most significant opportunity that remains is building on base business, particularly securing crew business. Strategically pursuing these opportunities would further enhance the hotel's performance and competitive position.

Crew Business

Rather than significant change, our focus would be on refining existing strategies, starting with pursuing additional crew business opportunities to help fill lower-demand periods.

What We Would Do Differently

Given the hotel's performance, experienced leadership team, recent renovations, and disciplined operational practices, there are no major operational changes we would recommend today. The property is well positioned within its market and has consistently delivered solid results.

Negotiated Segment Growth

We would keep an intense focus on Negotiated segment growth. Performance in the other segments has been on point, especially Group, but Negotiated will always be a focus segment, particularly in the summer months.

CURRENT OWNER & OPERATOR INSIGHTS

HOW DOES OWNERSHIP BENEFIT FROM OPERATIONAL CONTINUITY?

Leadership With History

Our Senior Vice President has been involved since the hotel's opening, our Regional Vice President previously served as its General Manager, and our Market Sales Leader was promoted from within, giving us a unique understanding of the hotel's customers, business mix, and positioning.

Proactive, Not Reactive

We know the seasonal demand patterns, revenue drivers, major events, corporate accounts, group opportunities, and competitive challenges, so ownership gains faster decisions, greater efficiency, and proven strategies without transition disruption.

Market & Revenue Depth

Our Revenue Generation team oversees multiple hotels across the Tallahassee market. The cluster sales model keeps business leads within our hotels, improves conversion, and delivers cost savings in salaries and FSU sports alliance membership fees.

Relationships & Momentum

Continuity preserves established relationships with associates in a difficult labor market, along with guests, Marriott, universities, government entities, and community partners, protecting market share, satisfaction, and momentum from day one.

CURRENT OWNER & OPERATOR INSIGHTS

HOW DOES OUR RELATIONSHIP WITH MARRIOTT AND THE ALOFT BRAND CREATE VALUE?

Credibility and Influence

McKibbon's long-standing relationship with Marriott and the Aloft brand creates value through credibility, influence, operational expertise, and our ability to advocate for the best interests of our hotels.

A Direct Voice in the Brand

Because of our extensive experience operating Aloft and other Marriott brands, Marriott regularly engages our team on brand initiatives and McKibbon's President serves as President of the Aloft Franchise Advisory Committee (FAC).

What This Means for Ownership

• Strong advocacy and representation with Marriott

• Early insight into brand initiatives and future direction

• Practical input on PIP requirements and renovation strategies

The Bottom Line

This relationship lets us leverage the strength of the Aloft brand while keeping decisions focused on guest satisfaction, operational performance, asset preservation, and long-term value creation for ownership.

• Collaborative solutions balancing brand standards with owner returns

• Proven operational expertise across the Aloft portfolio

• Enhanced access to Marriott resources, support, and best practices

CURRENT OWNER & OPERATOR INSIGHTS

HOW WILL WE ENSURE THE OPERATION CONTINUES TO EVOLVE UNDER NEW OWNERSHIP?

Owner's Mindset

We run every hotel as if we owned it, taking full accountability for its performance. We protect the operating strengths behind the hotel's success while looking ahead to grow revenue, improve profitability, elevate the guest experience, and outperform the competitive set.

Partnering with New Ownership

New ownership brings fresh perspectives and objectives, and we see that as an opportunity. We welcome ownership's vision for the asset and pair it with McKibbon's operating expertise and deep knowledge of this hotel and market.

How Progress is Measured

Progress comes from data, experience, innovation, and accountability. Regular performance reviews, market analysis, revenue strategy meetings, guest feedback evaluation, and asset preservation initiatives keep us testing where results can improve.

Momentum from Day One

Our long history at the Aloft Tallahassee, market knowledge, relationships, and proven operating disciplines mean we drive results on day one. We stay proactive as conditions shift, building a partnership that delivers long-term value.

WHY McKIBBON

WHY McKIBBON?

With a century of hospitality expertise, our approach shapes everything from strategic partnerships to market expansion. What sets us apart is our deep commitment to people—demonstrated through exceptional associate care, chaplain services, robust training and leadership development, and a genuine dedication to giving back to the communities we serve. Backed by a strong reputation for excellence and numerous industry awards, we take pride in the impact we make. Most importantly, our projects have played a meaningful role in transforming and reinvigorating communities across the U.S.

AWARDS & HONORS

Marriott

Partnership Circle Award

- McKibbon Hospitality, 2020, 2017 & 1995

J. Willard Marriott Award of Excellence

- Rada Kukrika, Courtyard Orlando Maitland, 2020

- Theresa Wilson, TownePlace Suites Pensacola, 2014

Alice S. Marriott Community Service Award

- Aloft Asheville Downtown, 2019

Community Service Hotels of the Year Award

- Residence Inn Macon, 2019

- TownePlace Suites Pensacola, 2013 & 2012

Opening Hotel of Year Award

- Aloft Greenville Downtown, 2016

- Aloft Asheville Downtown, 2012

Diamond General Manager of the Year Award

- Courtyard Gainesville, GA

- Courtyard Fort Myers at I-75, 2023

- Residence Inn Fort Myers at I-75, 2025 & 2024

- Residence Inn Tallahassee North/I-10 & Capital Circle

Diamond Circle Award

– AC Hotel Asheville Downtown, 2025

– Residence Inn Fort Myers at I-75, 2025

Marriott Continued

Gold Circle Award

- Residence Inn Charlottesville, 2022 & 2023

- Residence Inn Fort Myers at I-75, 2023

Silver Circle Award

- Courtyard Gainesville, GA, 2025

- Residence Inn Knoxville Cedar Bluff, 2023

- SpringHill Suites Pensacola, 2023

Aloft Hotel of the Year Award

- Aloft Greenville Downtown, 2018

Aloft General Manager of the Year Award

- Aloft Jacksonville Airport, 2019

- Aloft Asheville Downtown, 2016

Aloft Department Leader of the Year

- Jake O’Dare, Aloft Greenville, 2025

Aloft Talent of the Year

- Gwen Lavenue, Aloft Denver North Westminster, 2024

AC Family Member of the Year

- Will Barrett, AC Hotel Asheville, 2024

Courtyard Department Leader of the Year

- Sabrina Thrasher, Courtyard Gainesville, GA, 2025

Industry Awards

2025 Hunter Conference Award for Excellence & Inspiration

- John McKibbon

2025 Tampa Bay Business Journal Businesswoman of the Year

- Lynn Prater

Wine Spectator Award of Excellence

- Bargello, 2025 & 2026

2024 Explore Asheville's William A.V. Cecil Tourism Leadership Award

- McKibbon Hospitality

2024 Metropolitan Ministries Foundation Legacy Award

- John McKibbon

2019 Visit Tampa Bay Gonzmart Family Tourism Ambassador of the Year

- John McKibbon

ASSOCIATE CARE

We truly believe that hospitality starts from within, which is why we take the associate experience as seriously as we take the guest experience. We're committed to ensuring our associates' physical, mental, financial, and spiritual wellbeing are supported through profit sharing, wellness initiatives, quarterly bonuses, and 401k match. We invest in every associate, providing continuous and targeted training, development and growth opportunities, proudly recognizing their dedication and spirit to serve others through our Associate of the Month program, internal awards, and more.

CHAPLAINS PROGRAM

In your time of need or when you just need a listening ear, someone is always there. We’ve proudly partnered with Marketplace Ministries for over 25 years to provide chaplain services in every single hotel, for every single associate, and every single guest. Our guests and associates always have access to a chaplain who is uniquely trained to support their emotional needs and challenges they may be facing.

COMMUNITY SERVICE

As much as we’ve evolved since our founding, one thing hasn’t changed: we’re still a family company, dedicated to the communities that we call home. We set the stage for charitable giving with McKibbon’s Matching Funds Program

— our way of showing associates that we are as invested as they are. Through this successful program, the McKibbon Hospitality Foundation matches every single dollar earned through hotel fundraising events.

UNIVERSITY PARTNERSHIPS

We partner with two of Florida’s leading universities – the University of South Florida (USF) and Florida International University (FIU) – to give hospitality students practical experience and mentorship as they prepare to enter the industry. Through the USF partnership, hundreds of students have completed on-the-job training across our portfolio, and several of our leaders serve as adjunct professors. Our relationship with FIU – the alma mater of our Chairman, John McKibbon – continues through alumni outreach, support for integrating technology and innovation into the curriculum, and student scholarships. VIEW USF VIDEO

McKIBBON ONE

We’re all part of ONE McKibbon family and ONE shared vision. McKibbon One helps put that vision — and how we each contribute to it — center stage. More than an annual leadership conference, McKibbon One is a time to reflect, celebrate, and plan for the future. It’s when we band together to renew our focus and commitment to our goals and objectives. Above all, McKibbon One is about realizing how one person has the power to make an impact on our entire company.

VIEW OUR McKIBBON ONE VIDEO

FOSTER DOG PROGRAM

Since its inception in 2014, several of our Aloft hotels have partnered with local animal rescue organizations to foster one dog at a time, increasing each dog’s chance of finding their forever home. Through the unique program, we have proudly saved over 1,500 dogs and the number continues to grow.

Hospitality begins here, with each and every one of us.

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