Hampton Inn Manhattan-35th Street/Empire State Building

Irreplaceable Manhattan Positioning: Located in Midtown South on 35th Street, the Property sits within walking distance of approximately 70 million square feet of Class A office space housing major corporate tenants including Meta, Google, Amazon, and numerous Fortune 500 headquarters. The Property's strong market positioning is evidenced by its 121% RevPAR index to its competitive set for the May TTM period. As of Q1 2026, Midtown South posted the strongest leasing momentum among Manhattan submarkets, with overall vacancy declining 220 basis points year-over-year from 17.0% to 14.8% - signaling robust office market recovery and strengthening corporate travel demand. The Hotel provides immediate access to Penn Station, Madison Square Garden, the Empire State Building, and the High Line, with multiple subway lines within blocks. This positioning captures demand from both business travelers and leisure guests, creating diversified revenue streams and reducing seasonal volatility.

Value-Add Expansion Opportunity: A new investor can unlock substantial upside by expanding the Property's room inventory through the addition of four new keys. Given the Hotel's proven track record of sustaining 90.0%+ occupancy at premium ADR levels, this strategic expansion directly enhances revenue-generating capacity while improving operational efficiency through economies of scale. The additional keys represent a tangible opportunity to capture incremental demand within NYC's persistently constrained supply environment, strengthening both the Hotel's revenue potential and its competitive market position.

Efficient Operating Profile: The Hotel’s limited-service model provides operational advantages including a reduced staffing model compared to full-service hotels, streamlined F&B operations (complimentary breakfast vs. full restaurant), and reduced ongoing capex requirements. This translates to stronger NOI margins and more predictable cash flows.

Substantial Discount to Replacement Cost: The Offering presents the rare opportunity to acquire irreplaceable real estate priced at a significant discount to replacement cost, estimated at approximately $875k per key as of Q1 2026. Rising construction costs, land scarcity, and legislative barriers such as the Citywide Hotels Text Amendment have made new hotel development in NYC effectively come to a standstill.

Compelling Manhattan Supply & Demand Dynamics: As of May 2026, Manhattan is the #2 RevPAR market in the U.S. with a TTM RevPAR of $308.13, representing YoY growth of 5.2%. The city's strong fundamentals stem from robust visitation and constrained supply. Local Law 18 restricts short-term rentals, while the Citywide Text Amendment requires special permits for all future hotels - a labor-intensive process that effectively checks new supply. Since enactment, only four hotels have filed for permits and two have been approved, dramatically limiting pipeline growth.

Best-In-Class Brand Affiliation: Hampton by Hilton delivers exceptional investment value through proven operational excellence and market-leading guest satisfaction. The brand consistently achieves top-tier GOP margins in the select-service segment, driven by an efficient model that balances quality with operational simplicity. Integration with Hilton Honors' 173+ million members generates high-margin direct bookings while reducing OTA dependency. Hampton's "100% Satisfaction Guarantee" and repeated J.D. Power awards drive pricing power and revenue stability. The franchise provides institutional-grade support - revenue management systems, global distribution, and corporate travel relationships - that independent operators cannot replicate, while maintaining predictable capital requirements and favorable financing terms.