Kathy LathamLISTING BROKER

16421 North Tatum Blvd., #130Phoenix, AZ 85032

(602) 765-4840 P(602) 765-4841

kathyl@hotelbrokerone.com

Exclusively offered by

301 W. Alden RoadKearny, AZ 85137

45 Units

The General Kearny Inn

DisclosuresAGENCY DISCLOSURE: Arizona law requires that you be informed of who the broker is representing in the transaction. By this Confidential Memorandum, buyers and/or brokers representing buyers are notified that both HotelBrokerOne (the listing broker) and the broker who deals with the buyer (the selling broker) are usually paid by the owners and/or the owners’ agents. Their duties, loyalties, and faithfulness are owed to the owner, and they must inform the owner of all important information they know which may affect the owner’s decision concerning the sale of the property.

HAZARDOUS MATERIALS: Potential buyers are also hereby notified that various construction materials used in the property may contain items that have been or may in the future be determined to be hazardous (Toxic) or undesirable and may need to be specifically treated, handled, or removed. Expert inspections are necessary, and it is the responsibility of the buyer to retain qualified experts to detect and correct such matters and to consult legal counsel of their choice to determine what provisions, if any, they may wish to include in transaction documents regarding the property.

RELIABILITY OF INFORMATION: HotelBrokerOne has been authorized to solicit proposals from entities which may be interested in acquiring this asset now owned by the Seller. This Confidential Memorandum has been prepared solely for informational purposes and is not to be used for any other purpose. The information contained herein has been obtained from sources that we deem reliable; however there is no assurance that said information is correct. A prospective buyer should carefully verify all information, including operating history, items of income and expense, zoning ordinances, subdivision ordinances, watershed ordinances, sign ordinances, utilities and building codes.

Neither HotelBrokerOne, nor (“Seller”) is responsible for any misstatements of facts, errors, omissions, prior sale, withdrawal from the market, terms and conditions, or changes in prices without notice. The information supplied herein is for informational purposes only and shall not construe a warrant or assurance that said information is correct. Any person intending to rely upon the information herein is hereby advised that said information should be independently verified.

Table of Contents

Executive Summary ............................................................................ 1

Financial Overview .............................................................................. 2

Property Overview ............................................................................... 3

Photos ................................................................................................. 4

Location Map ...................................................................................... 8

Exhibits ................................................................................................ 9

The General Kearny Inn301 W. Alden RoadKearny, AZ 85137Pinal CountyPopulation 1,950 (2010 census)

Property

The General Kearny Inn is the main place to stay in Kearny. This is an exceptionally well-kept, independent, 2 story, exterior corridor property. Family owned and operated. Shows pride of ownership.

The rooms have either a king bed or two double beds, lounge chair, mini refrigerator, TV (many rooms with flat screens) and individual HVAC unit. Most guest rooms have tile flooring. The property also has a lounge with #6 liquor license. The restaurant lease is one year. The current hours are weekly 6am-2pm, and from 4pm-8pm for dinner (M-F only).

The lounge has 2 TVs, pool table, juke box and outside seating area with covered patio. The guest rooms surround a large courtyard equipped with BBQ and picnic table - perfect for events, parties, weddings and receptions.

There is also a guest laundry (coin operated), small meeting room and a fully equipped community kitchen for the guests to use during their stay. Everything has been thought of to accommodate the guests and local community. The property has its own housekeeping area with new equipment.

Location

Kearny is located in Pinal County. It is a nicely planned community with tree lined streets located at the base of Pinal Mountain range. The location provides plenty of recreational activities. Kearny has developed an ATV, hiking, horseback and picnic trail to support safe outdoor recreation (“eco-tourism”). Property is a popular stay for those hiking the Arizona Trail and has become known as the Best Motel along the whole southern half of the trail. Kearny is approximately 1 1/2 hour drive from downtown Phoenix and Tucson.

Demand Generators and Local Attractions

Kearny’s demand generators are mainly from agriculture, forestry, fishing, hunting and mining. Education and health care facilities also contribute significantly to the city’s economy.

Among some of the close attractions are the Arizona Trail, Pinal Mountains, Kearny Golf Course, Kearny Lake and the Gila River.

Executive Summary

1© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

The General Kearny Inn presents an excellent opportunity for an investor to purchase a property in Arizona and for a hands-on investor/operator to improve the revenue stream currently in place.

Year April 2018 TTM 2017 2016 2015

Room Revenue $531,691 $534,675 $324,522 $242,029

Total Revenue $609,964 $625,410 $386,392 $400,003

OCC 67.44% 56.46% 32.51% 24.18%

ADR $50.48 $55.75 $55.34 $58.50

Room Revenue Multiplier 1.92X 1.87X 3.08X 4.13X

Sales Price: $1,000,000

Number of Rooms: 45

Price per Room: $22,222

Terms: All cash at closing

Operating History

Financial Overview

2© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

• Free Wireless Hi-Speed Internet

• TVs (some flat) with DirecTV

• Refrigerators

• Individual HVAC’s All Rooms

• Dining Area

• Lounge Chair

• Complimentary Long Distance in United States

• 1 King & 2 Double Bed Room Options

• Multiple Rate Options

• Community Kitchen: Fully Stocked with Basic Cooking Essentials for Guests

• Outdoor BBQ Gazebo Area (with picnic tables/chairs)

• Indoor Lounge Area with #6 Liquor License: 2 TV’s with Wii, Jukebox & Pool Table

• Outdoor Seating on Covered Patio

• Outdoor Games: Horseshoes, Giant Jenga, Bean Bag Toss

• Housekeeping Service

• Restaurant (Leased)

• 2 Stories

• Exterior Corridors

Room Amenities Hotel AmenitiesConstruction Details

Property Overview

3© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Photos

4© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Photos (Cont.)

5© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Photos (Cont.)

6© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Photos (Cont.)

7© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Location Map

8© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Exhibits

9© 2018 – HotelBrokerOne. The information contained herein was obtained from sources we consider reliable. However, we cannot guarantee for errors, omissions, or market changes.

Jan - Dec 17

Ordinary Income/ExpenseIncome

4010 · Income - Motel 534,585.224015 · Income - Special Event 3,467.004030 · Income - Cocktail Lounge 87,364.344040 · Income - Other -6.94

Total Income 625,409.62

Cost of Goods Sold5005 · Bar Goods

5005.1 · Bottled Domestic 4,908.665005.2 · Bottled Premium 1,894.025005.3 · Craft Draft 1,666.295005.4 · Domestic Draft 4,037.415005.41 · Cans- Beer -3,858.875005.5 · Call Liquor 753.045005.6 · Top Shelf Liquor 1,212.765005.7 · Well Liquor 1,379.065005.8 · Malt Beverage -1.805005.81 · Package Liquor 13,353.405005.9 · House Wine 412.905005.91 · Top Wine 486.005005.92 · Mixers/Soda/Drink supplies 0.005005 · Bar Goods - Other 7,394.85

Total 5005 · Bar Goods 33,637.72

5020 · Wages5022 · Wages-Motel

50221 · Motel - Desk Clerks 40,563.64

50222 · Motel - Housekeeping 84,561.32

50223 · Contract Labor 292.255022 · Wages-Motel - Other 180.00

Total 5022 · Wages-Motel 125,597.21

5023 · Wages-Cocktail Lounge50231 · Lounge - Bartenders 12,617.31

Total 5023 · Wages-Cocktail Lounge 12,617.31

5024 · Wages- Maintenance 27,606.62

5020 · Wages - Other 9,000.00

Total 5020 · Wages 174,821.14

11:28 AM General Kearny Inn01/17/18 Profit & LossAccrual Basis January through December 2017

Page 1

Jan - Dec 17

5030 · Supplies5031 · Hotel Supplies 13,157.875032 · Bar Supplies 3,485.89

Total 5030 · Supplies 16,643.76

Total COGS 225,102.62

Gross Profit 400,307.00

ExpenseVOID 0.006000 · Advertising / Promotions 3,232.936008 · Booking Fees 1,475.996010 · Bank Service Charges 60.006013 · Charitable Contributions 300.006015 · Credit Card Fees 14,625.826025 · Dues and Subscriptions 126.006100 · Insurance 28,135.316105 · Interest 21,783.066110 · Licenses and Permits 761.346115 · Miscellaneous 12,580.096120 · Office Supplies 696.386135 · Professional Fees 1,925.006201 · Rep & Maint - Bldg 8,386.16

6210 · Rep & Maint - Equipment 2,552.136215 · Rep & Maint - Hotel 3,231.686217 · Rep & Maint - Lounge 0.006305 · Taxes

6310 · Property Taxes 19,883.666312 · Sales Tax Paid 740.12

Total 6305 · Taxes 20,623.78

6400 · Telephone 6,953.07

6490 · Utilities - Cable 5,993.526500 · Utilities - Electric 35,301.396505 · Utilities - Gas

6506 · Utilities - Gas - Inn 4,387.12

Total 6505 · Utilities - Gas 4,387.12

11:28 AM General Kearny Inn01/17/18 Profit & LossAccrual Basis January through December 2017

Page 2

Jan - Dec 17

6510 · Utilities - Water 11,118.556650 · Comp / Charge off 696.12

Total Expense 184,945.44

Net Ordinary Income 215,361.56

Other Income/ExpenseOther Income

9050 · Rental Income9061 · Restaurant Lease 8,000.009080 · Utility Charges 7,748.96

Total 9050 · Rental Income 15,748.96

Total Other Income 15,748.96

Other ExpenseRotary Reimbursement Account 1,165.499150 · Rental Expenses

9160 · RE-Utilities 9,741.95

Total 9150 · Rental Expenses 9,741.95

Total Other Expense 10,907.44

Net Other Income 4,841.52

Net Income 220,203.08

11:28 AM General Kearny Inn01/17/18 Profit & LossAccrual Basis January through December 2017

Page 3

General Kearny InnMonthly Room Revenue Recap

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Jan 29,868$ 24,090$ 17,850$ 55,106$ $47,396 $56.37 $60.03 $57.56 $63.64 $50.61Feb 34,917$ 17,131$ 22,304$ 49,568$ $43,554 $55.06 $59.15 $54.86 $64.25 $48.74Mar 52,150$ 43,230$ 26,590$ 48,132$ $61,421 $54.79 $53.73 $63.15 $66.88 $47.62Apr 15,912$ 7,380$ 16,370$ 45,322$ $42,773 $54.53 $41.72 $47.93 $65.21 $49.84May 27,537$ 30,320$ 30,197$ 45,952$ $59.59 $48.39 $52.75 $55.12Jun 30,969$ 25,425$ 30,281$ 56,245$ $59.83 $57.75 $54.08 $50.08Jul 15,067$ 15,792$ 26,347$ 56,992$ $54.39 $57.20 $54.87 $48.25Aug 18,584$ 18,432$ 28,425$ 32,884$ $56.91 $62.36 $54.30 $48.12Sep 18,506$ 13,701$ 29,727$ 27,220$ $55.59 $63.58 $51.17 $51.55Oct 24,905$ 21,258$ 44,948$ 38,886$ $58.85 $61.76 $54.89 $50.78Nov 22,087$ 13,034$ 28,741$ 44,158$ $59.06 $69.70 $57.91 $54.32Dec 18,949$ 12,236$ 22,742$ 34,210$ $58.20 $66.59 $60.65 $50.77Totals 309,451$ 242,029$ 324,522$ 534,675$ $ 531,691 $56.93 $58.50 $55.34 $55.75

2014 2015 2016 2017 2018

Jan 36.31% 27.25% 21.27% 32.99% 67.24%Feb 48.18% 21.81% 29.49% 33.70% 73.33%Mar 65.20% 55.11% 28.89% 52.77% 85.59%Apr 41.99% 8.05% 24.11% 53.56% 61.04%May 31.50% 42.55% 39.29% 57.52%Jun 56.67% 31.21% 32.98% 80.81%Jul 19.01% 18.81% 25.94% 81.79%Aug 14.82% 20.45% 35.90% 71.33%Sep 23.55% 15.18% 41.21% 57.19%Oct 28.83% 23.54% 49.28% 56.92%Nov 26.52% 13.26% 35.20% 64.67%Dec 22.98% 12.98% 26.60% 51.90%Average 34.63% 24.18% 32.51% 57.93%

REVENUE AVERAGE DAILY RATE

OCCUPANCY

General Kearny InnTotal Monthly Revenue Recap

TOTAL REVENUE (Hotel and Lounge):2014 2015 2016 2017 2018

Jan 36,820$ 32,411$ 24,132$ 59,338$ $52,502Feb 42,507$ 23,781$ 28,807$ 54,073$ $50,396Mar 69,072$ 60,116$ 33,798$ 67,154$ $69,403Apr 41,811$ 67,627$ 21,428$ 54,128$ $46,946May 36,724$ 47,512$ 40,040$ 54,403$ Jun 39,602$ 33,111$ 30,742$ 63,715$ Jul 21,255$ 22,734$ 25,971$ 64,055$ Aug 25,407$ 24,916$ 35,327$ 38,950$ Sep 27,997$ 21,426$ 36,798$ 32,981$ Oct 34,314$ 29,751$ 47,045$ 46,764$ Nov 30,608$ 18,865$ 34,583$ 50,425$ Dec 25,856$ 17,753$ 27,721$ 39,424$ Totals 431,973$ 400,003$ 386,392$ 625,410$ $ 609,964