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Homeport Overview On offer is a tremendous commercial opportunity located in beautiful Saint John, New Brunswick. Currently operating as the Homeport Historic Bed & Breakfast, this stunning edifice built circa 1858 in the Italianate style sits atop an elevated position and commands breathtaking vistas of the Bay of Fundy and the Uptown Saint John skyline. The acclaimed Homeport Historic B&B is a Canada Select Five Star rated accommodation and has been in continuous operation since 1997 following the completion of a significant restoration to the property. The business was subsequently expanded after another exhaustive renovation in 2000, bringing capacity up to its current offer of 10 luxurious suites. It is the only accommodations in Saint John with the coveted Five Star distinction and is widely regarded as one of the premier B&B destinations in the Maritimes. The Homeport is a viable turnkey operation with a healthy revenue stream. It is primarily a tourist-based accommodation property though significant additional revenue is derived from special events. As a complement to its core business, it operates as a special events venue hosting workshops and business conferences, intimate live music performances, weddings, and other various functions, making it an active year-round operation.

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Homeport is centrally located on a very private two-acre hilltop parcel with access from a primary residential street. It is located minutes from the Uptown business core and convenient to all main thoroughfares. It is steps from the Harbour Passage walking trail and close to all tourist attractions. The spectacular setting provides fantastic views from every room.

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General Business Profile The Homeport currently runs two distinct yet complementary operations: its core hospitality business offering seasonal overnight accommodations, and its secondary business operating as a special events facility. The inn accommodates overnight guests seasonally from April through October. Each of the 10 suites has a private bathroom. Room occupancy is variable from year-to-year but runs around 20% for April that increases to near full capacity by early July. It operates at capacity until mid-September and the tourist season is finished by late October. Sales from overnight accommodations represent approximately 75% of total revenues � 60% single night visits � 40% multiple-night visits

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From October to May, the Homeport operates as an event facility. Event revenue has been increasing steadily each year as its reputation for service excellence grows and is widely recognized within the business community. The facility can comfortably accommodate groups of up to 65 people as a venue for seminars, concerts, workshops and both corporate and private functions. Sales from event facility rentals represent approximately 25% of total revenues

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Possible Expansion There are several areas where revenue could be appreciably increased. Additional room revenue could be realized by accepting more of the overnight reservation requests that currently come in during the off season and an effort could be made to solicit long term guests or students for the winter months. Currently these requests are referred to other properties. Several new revenue generating units could be added within the current building space and ample land exists for the construction of stand-alone units, additional B&B rooms, a restaurant or private owners residence. Two additional rooms could be added in the attic spaces of each house and reconfiguring the current layout could result in the creation of additional suites. A 30-40 seat public and/or private dining room could easily be added in the main reception hall for seasonal or year round meals and a new exclusive 20 seat dining room added to the Harbour View room. Both of these rooms could be serviced from a newly built central kitchen in space currently being used by the owners and would not interfere with current B&B kitchen operations.

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Potential Usages � Fully Catered Student Residence � Full Service Restaurant w Overnight Accommodations � ESL School w Boarding Component � Retreat Spa � Daycare � Private Culinary School � Corporate Headquarters � Professional Office Space � Medical Laser Clinic

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Infrastructure

A more detailed description of the property will be provided to qualified buyers.

Utilities

The property is connected to City of Saint John Water and sewage services. There are two metered water services: � 1” service to the south building upgraded in 1998 � 1½” service to the north property upgraded in 2002 � both houses are connected to the city sewer system with separate 4” PVC installed in 1998.

Electrical System

The electrical system for the building has been updated to conform with all building code regulations. There is a single main Electrical Control Service Area with a primary 600 amp service entrance. This is distributed to a number of smaller breaker panels.

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Domestic Hot Water Water for the south house is heated in an oil fired heater from an oil tank located in the garage. The north house is supplied by tandem electric water heaters. The tandem setup allows the primary tank to be shut off as demand falls while providing capacity for the large guest room whirlpool tubs in season.

Heating System

Homeport has multiple heating systems to best control costs and adapt to the changing needs and the seasons. � main areas of the house are heated by a Viessman high-efficiency oil fired water jacket furnace installed in 1996 � each of the guest rooms have independent electrical heat � heating fuel is held in an oil tank (2006) located inside the property � propane fireplace in the Grand Reception Hall � wood burning fireplace insert in the owner’s suite

Fire Alarm System � house is constantly monitored by a Fireshield single zone fire alarm installed in 2008 � guest rooms have hardwired smoke detectors for in-room � emergency lighting installed in all public areas

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Phone System

The phone system is serviced by Bell Aliant with an internal Panasonic switch owned by Homeport. � two dedicated lines for office use � one dedicated lines for guest use � toll free line servicing all of North America. � additional dedicated communications line for fax, computer and POS systems

Linens and Laundry � linens were most recently updated in 2013 with 50 sets of 500-count Egyptian cotton sheets � linens, napkins and placemats included in chattels

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Building Maintenance A complete list of improvements will be made available upon request. Roof covering on the north house was partially replaced in 2012 and the south house replaced in 2015. 25 year asphalt shingles where used on the sloped sections with modified roofing for the flat areas. Exterior painting is continuously ongoing as part of the maintenance program with regular touch ups as needed. 90% of the house was redone in 2012 & 2013. The garage has a recently replaced concrete floor, insulated power door, and is partially insulated. The windows of the north house are vinyl clad, double glazed replacements and the connecting Reception hall are all wood units which were installed in 2000. The south house has older wooden single hung windows with permanent aluminum storm windows on the outside. Although older in style, these windows work well and are exceptionally wind and weather proof and quiet from street noise. The Driveway was paved in 1997 and the south driveway in 2000.

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Additional Comments A complete list of chattels will be drawn up prior to sale. To facilitate a sale, the transfer can be structured as a sale of shares in an already established company or as sale of real property/assets and the seller will consider a short term Vendor Take Back Mortgage and/or the trade for well documented real property. Flexible terms on the transfer of ownership with a short or long term closing can be negotiated to best suite both parties. And the sellers will ensure the new owners have ample assistance and time to familiarize themselves with operating procedures in all aspects of the Inn. The seller will assist with all special functions they have committed to at the Homeport prior to sale if requested by the purchaser.

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For additional information or to schedule a viewing, please contact Jody McCairns at 506 898 1234.