Lodging Enterprises Expands Operations Through Multi-Unit Acquisition

Five New Properties to be Branded Oak Tree Inns In mid-September American hotel Income Properties REIT LP (“AHIP”) completed the

strategic acquisition of five railway lodging facilities located in 4 states across the U.S. Lodging Enterprises, a wholly-owned subsidiary of O’Neill Hotels & Resorts, and part of ONE Hospitality Group, was awarded the contract to manage the facilities, which will operate under the Oak Tree Inn flag. The railway portfolio is comprised of 586 guestrooms within the five hotels, located in Belen, New Mexico; Edgemont, South Dakota; Gillette, Wyoming; Guernsey, Wyoming; and Ravenna, Nebraska.

More than 80% of the available guestrooms are secured by long term lodging contracts with BNSF Railroad, one of the top three railway companies in the United States. Lodging Enterprises is the largest operator of hotels that serve the U.S. freight railway industry, with 45 dedicated railway hotels and over 3,500 total railway guestrooms.

ONE warmly welcomes its new Supporters in New Mexico, South Dakota, Wyoming and Nebraska, and extends sincerest thanks to the management team of Lodging Enterprises who contributed to the successful transition of these facilities.

Fall/Winter 2015

Issue 5

ONE Voice is the exclusive E Newsletter of ONE Hospitality Group. Published 4 times per year, ONE Voice features news and information about ONE’s Supporters, hotel properties and its parent Company, O’Neill Hotels & Resorts, LTD. ALL CONTENT IS OWNED BY O’NEILL HOTELS & RESORTS AND ITS SUBSIDIARIES 1

ONE Welcomes Robert Pratt as President

We are thrilled to announce that respected Canadian hotel industry veteran Robert Pratt has joined ONE Hospitality Group as President as of October 7, 2015.

Mr. Pratt will work from the Vancouver office, where he will oversee the day to day operations of all hotel properties within the ONE family. This includes the 80 properties currently owned by American Hotel Income Properties (AHIP) REIT, for which ONE is the exclusive hotel manager. ONE-managed hotels include the 45-property rail portfolio of Oak Tree Inns and 35 branded properties. Robert will also be responsible for ONE’s 2 Embassy Suites hotels (owned by our partners, Sunstone), as well as the Westin Resort & Spa—Whistler in Canada.

John O’Neill will remain Chairman and CEO of ONE, and will focus on the company’s growth and strategic direction.

(L) The team from Gillette, WY

(R) We Are ONE orientation in Ravenna, NE

(Top Left) Supporters in Belen, NM

(Bottom Left) The Lodging Enterprises Transition Team, strategizing for acquisition day

(Bottom Right) New team members completing the on-boarding process in Guernsey, WY

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AHIP and ONE: A Winning Partnership Since February of 2013, O’Neill Hotel & Resorts, the parent company of ONE Hospitality Group, has been engaged in a long-term agreement with American Hotel Income Properties (AHIP) Real Estate Investment Trust to manage AHIP’s hotel assets. Since that time, AHIP and ONE have developed positive business synergy. Robert O’Neill, Chairman of American Hotel Income Properties, articulates AHIP’s long-term objectives as the following:

• Generate stable and growing returns to investors from hotel properties substantially in the United States

• Enhance the value of its assets and maximize the long-term value of each hotel through active management

• Continue to expand its asset base

To learn more about ONE’s largest client, please visit: http://www.ahipreit.co

(Left) Robert O’Neill, Chief Executive Officer- AHIP REIT (Right) John O’Neill, Chairman & Chief Executive Officer- ONE

AHIP Announces New Executive Appointment

American Hotel Income Properties has announced the appointment of Mr. Ian McAuley as Executive Vice President – Asset Management, effective September 1, 2015. Mr. McAuley will oversee the relationship with ONE, AHIP’s selected hotel management company, and will interface with the ONE team on property operating performance, capital investments, risk management and brand relations for our growing portfolio of 80 AHIP-owned branded hotels and Oak Tree Inns. Welcome, Ian!

Three Marriott Properties Added to ONE’s Portfolio

On August 6, 2015, three hotels located in Ocala, Florida became part of ONE Hospitality Group’s portfolio. Ocala is located in north central Florida, 80 miles from Orlando, and is the heart of the state’s ‘horse country’ region.

The new portfolio consists of three select service properties, including a Residence Inn, Courtyard and a Fairfield Inn, all of which are under the Marriott family of brands.

With the Ocala acquisition we have added approximately 350 additional guest rooms, bringing our company’s total to nearly 8,000 rooms. We also welcome approximately 90 new Supporters to the ONE team—we’re glad to have you as part of ONE Hospitality Group!

Top: Supporters from Courtyard Ocala participate in We Are ONE

Below: Thank you to Adriana Ubide, GM of the Fairfield Ocala, for assisting with Spanish translation of We Are ONE orientation!

Above: Yeissy Vargas, Front Desk Agent (L) and Jennifer Lincul, Front Desk Supervisor (R) from the Residence Inn Ocala

Left: Zuleyka (Zuly) Jurado, Housekeeping Supervisor from the Fairfield Ocala

Each hotel creates a budget to help the management team operate the hotel efficiently.

Success in the hotel business requires careful management of expenses and accurate forecasting of occupancy and revenue.

The budget process allows us to determine the resources needed at each property for the coming year, in order to deliver on ONE’s Promise of providing the highest quality experience, while still meeting ONE’s Goal of being a highly profitable company.

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At ONE Hospitality Group, there is a lot of time and effort devoted to the preparation of our annual budgets. It is a complex process that requires a great deal of planning and team coordination, as it involves input from General Managers, Regional Directors of Operations, Corporate Support Staff, Senior Executives and even our Owners. The budget process typically begins in July, progresses through the Fall, and is completed in December.

Budgets, Budgets, Budgets: ONE Plans Ahead for a Successful 2016

This year’s budget process included new software called ‘Forecaster.’ All GMs received training on the system at regional meetings held across the U.S. Above, managers from Texas (L) participated in a regional training session held in Oklahoma City, and managers from North Carolina, Florida and Georgia (R) participated in a meeting held in Ocala, FL.

Lurie Jackle (L), Director of Finance for Lodging Enterprises, and Ahmad Ghemrawi (R), Director of Finance for ONE’s branded properties, led the budget process for their respective divisions.

Above: It takes hundreds of pages of financial data to compile the annual budgets for ONE’s hotels.

Right: A 3-day meeting was held in in Vancouver to review the preliminary budget information for each

property.

Left: James McGillivray, Cindy Landes and Bryce Beatty, ONE’s Regional Directors of Operations, have worked hard with their respective GMs to ensure 2016 budgets are timely and accurate.

2016

Open enrollment for medical, dental, vision, ancillary benefits and 401(k) took place in

December for an effective date of Jan. 1, 2016. Please check your pay statements to ensure that

your enrollment and deductions are accurate, and see your manager with any questions!

ONE now offers automatic payroll

deduction for safety shoes from Shoes

For Crews!

Please see your GM for details! Go To:

www.shoesforcrews.com/register OR Call:

1-800-523-4448

ONE now offers safety shoes from Shoes For Crews through

automatic payroll deduction

Budgets (Continued from previous page)

Jeff Hope, Vice President of Finance, did a great job of leading General Managers through regional budget training sessions.

General Managers from Virginia and North Carolina learned a great deal through hands-on participation.

Number Crunchers: James McGillivray- Regional Director of Operations, David Lynch- Regional Accountant and Stephen Morris- Regional Controller, teamed up in support of 2016 budget development for their assigned hotels.

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A bright new future could be just a click away!

Go To: www.onehospitalitygroup.com/opportunities/

for an updated list of open management positions!

Newly-Acquired Properties in Fort Scott, Kansas and Lincoln,

Nebraska to Become Oak Tree Inns

In January, American Hotel Income Properties REIT LP (“AHIP”) announced the acquisition of the 133-room Super 8 hotel located in Lincoln, Nebraska. In December, AHIP acquired the 70-room Heritage Inn & Suites in Fort Scott, Kansas

Planned renovations of both properties include conversion to Oak Tree Inn rail crew hotels, which will feature the addition of our signature ‘Dark and Quiet’ guestrooms, as well as other capital improvements.

ONE sincerely welcomes all of our Supporters in Lincoln and Fort Scott, and thanks to all who participated in the successful transitions!

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HELPING HANDS

Thank you to Shawn Carr (L)- Front Office Manager for the Embassy Suites Dallas for lending a helping hand to Richard Smith (R), GM of the Hampton Inn University in Harrisonburg, VA.

Thank you to Carmen Negrutiu (L)- GM of the Hampton Inn in Statesville, NC for lending a helping hand in Amarillo, TX and Oklahoma City!

Thank you to Kelli Mai (R)- GM of the Holiday Inn Express

in Emporia, KS for lending a helping hand to Lynette Montes

(L)- GM of the Holiday Inn Express in Dubuque, Iowa and

for also helping out at the Holiday Inn Amarillo.

Above- ONE Supporters in Lincoln with Transition Team members.

Left- The Fort Scott team

Right- Lincoln, NE, the newest location within

the Oak Tree Inn portfolio.

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The Spirit of ONE Award Recognizing our Supporters who truly stand out as examples of ONE’s Support Culture

3rd Quarter 2015 Winners- It’s a TIE!!!

We’ve all heard the saying, “There is no ‘I’ in TEAM.” Doris Sanchez and Henrietta Garcia are the living embodiment of these words. For the first time ever, ONE is awarding co-winners for the quarterly Spirit of ONE Award in the Hourly category, because these two ladies have worked very closely together in a way that truly benefits their guests, their fellow Supporters at the Oak Tree Inn and Penny’s Diner in Vaughn, New Mexico, and Supporters and guests of a nearby sister property.

In September of this year we took on the operation of a lodging and diner facility in Belen, New Mexico, just outside of Albuquerque, and about 2 hours from the Oak Tree Inn in Vaughn. Henrietta and Doris were instrumental in the transition of the property. They worked tireless to ensure that new Supporters’ questions were answered and that they understood the new systems and processes.

Tracie Gallegos, Doris and Henrietta’s General Manager, has the following to say about this dynamic duo: “I cannot express how thankful I am for Doris and Henrietta. They jumped right on board when asked to help out and they never hesitated. Through their translation skills, their positive attitudes and their determination, all hurdles were tackled in record time and they helped the Belen team to feel embraced into our wonderful family.” Many thanks, ladies!

HOURLY SUPPORTER CATEGORY

Doris Sanchez Utility

& Henrietta Garcia

Server

Penny’s Diner Vaughn, NM

Dorothy Drachenberg began her career with ONE Hospitality Group in July of 2014, when ONE assumed management of the SpringHill Suites by Marriott Southern, located in Pinehurst, North Carolina. She worked as both a Room Attendant and an Inspectress, and in May of 2015 she moved to the Breakfast Hostess position. Dorothy made an immediate impact in the breakfast room, moving the brand’s guest satisfaction scores up by 15 points in her first month, and up by a whopping 20 points in her second month! Recently, a group of officers from the North Carolina State Motorcycle Patrol stayed in the hotel and had to be up and out on the road very early. The Sargeant in charge made a special request for breakfast service to begin a half hour earlier on the day of their departure. Without hesitation Dorothy was there to ensure that the officers were fed a hot meal before heading out into the rain to monitor a bicycling event. David Lenk, Dorothy’s General Manager, has this to say about her: “Dorothy is an exemplary employee at SpringHill Suites. She always has a bright and happy smile and shows eagerness to help guests get that first cup of coffee in the morning, and to help them find what they need or create what they want.” Great job, Dorothy—thank you for going above and beyond!

HOURLY SUPPORTER CATEGORY Dorothy Drachenberg

Breakfast Hostess

SpringHill Suites by Marriott SouthernPines Pinehurst, NC

The Spirit of ONE Award 3rd Quarter 2015 Winners (continued)

MANAGEMENT SUPPORTER CATEGORY Matt Gloor

IT Support Supervisor

ONE Corporate Support Office-- Based at the Embassy Suites DFW South Dallas, TX

Have you ever had your computer screen freeze up just as you’re ready to hit the send button on an important email? Have you forgotten the password to your hotel’s property management system? Has your printer suddenly died? If so, Matt Gloor has probably come to your rescue!

Matt is based in Dallas at the Embassy Suites DFW South, and works as a key contact for users of ONE’s IT systems within its branded hotels. Matt has recently been promoted to IT Support Services Supervisor, and he focuses on ensuring that our user support processes are maintained as the company grows.

Mark Abbott, Director of IT, has the following to say about Matt:

“He has proven to be an outstanding performer within the ONE family. He is always willing to help, never says NO and is seemingly always available—his schedule is always very flexible. Matt is always there for us when emergencies arise. His technical skills are always growing and he is quite a ‘sponge,’ learning new things as quickly as we can throw the information at him.”

“Everywhere I travel, I receive compliments about Matt’s friendliness, helpful attitude, work ethic and skill. He truly embodies excellence.” Congratulations to Matt and to all of our quarterly winners for leading the way and being a shining example of ONE’s Support Culture!

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Learning at

At ONE Hospitality Group, learning is

a continuous process that we

are highly committed to.

Check out some recent ONE

training activities!

Supporters at the Hampton Inn Cranberry in Cranberry, PA worked

with the local Fire

Department to learn about fire safety.

Hampton Inn Pittsburg Airport’s Guest Service Representative Miranda Lynn graduated in December from Morris University with a degree in Hospitality. She also recently completed AH&LA’s Courseline marketing class, offered through ONE. Says Miranda, “The course provided me with deeper understanding of the hospitality industry, and the segmentation of its customers. The course focuses on the marketing tools used by sales teams and how to reach new customer segments. It greatly increased my knowledge.”

Below- Supporters from Holiday Inn Oklahoma City Quail Springs experienced a recent training day, facilitated by GM Sheena DuPree

The Scottsdale Support Office team recently brushed up on ‘We Are ONE’ as well as important compliance topics.

Supporters from the ONE Support Office in

Vancouver didn’t miss celebrating ‘National

Cheesecake Day’ with some sweet treats.

Pictured from left: Valerie Ridley, Grace Augustin,

Veronica Ebbs-Canavan, Mark Abbott, David Leung

This is Henry, an honorary Team ONE Supporter we encountered in an airport recently. Love the shirt, Henry!

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Make an Impression

Hosting or participating in a networking, recruiting or community event?

ONE’s display panel and brochures can help you make a lasting impression!

Call People Support at (480) 585-1537

HEART TEAM,

What does the Hampton Inn Chickasha do

with their unusable linens? They tie-dye the fabric, sew them into simple dresses and send

them to needy children in Africa.

When a guest’s cat, Cake, escaped from its carrier and ran off, GM Krenda Carleton

(pictured at left with Cake) and her team sprang into action. Cake was found a mile

away, and the grateful owner sent a special thank you note to acknowledge Krenda and

Supporters Rita, Chris and Ian at the Oak Tree Inn in Jefferson City, MO.

Congratulations to the Westin Resort & Spa- Whistler for moving up from 3 to 4 Keys (out of 5) with Green Key Global. Green Key Global is a graduated rating system designed to recognize hotels that are committed to improving their environmental performance.

Above: Several ONE hotels took time out to recognize their Housekeeping teams during our industry’s annual ‘Housekeeping Week.’ Thank you to all Housekeeping Supporters!

Dawn Anderson, Corporate Sales Manager for Embassy Suites Dallas, went the extra mile to send a get well gift to a client with American Airlines who was sick with a sinus infection. Dawn received a grateful shout out on Instagram for her efforts.