2018 Operating & Capital Budget December 21, 2017

Market Overview Market Performance Market Demand for 2018 1.8% RevPAR growth running 12 months for Portland by STR Modest RevPAR growth of 1.1% projected for 2018 by CBRE Market Demand for 2018 Group room nights as shown in the TAP report for the Portland market are down (- 2.6%) compared to prior year Hilton’s 2018 group room night position is down -20.5% to the prior year position and ADR is up slightly +0.2% New Supply/Renovations in 2017 & 2018: Holiday Inn Express 192nd – 82 rooms opening March 2018. Homewood Suites renovation, 30 rooms out of order Jan-May 2017 Sheraton Airport rooms and space 1st & 2nd Quarters 2017

2018 Budget Process Worked with Hilton to develop revenue and expense targets RevPAR growth target 1.8% over 2017 Decline in Group position impacting F&B Banquet revenue Budgeted expenses were based on flow targets with the exception of planned and unplanned expenses such as wage and benefit increases, renovation operating costs, etc. Budgets have been reviewed and approved in detail by both Hilton’s regional team and CHMWarnick

Operating Trends 2018 Budget 2017 Forecast 2016 Actual Total Revenue $18.52M $18.07M $16.99M RevPAR $120 - $130 $115 - $125 $110 -$120 Gross Operating Profit (GOP) $5.83M $5.37M GOP Margin 31.5% 32.3% 31.6% Net Operating Income $4.93M $4.98M $4.56M

2018 Capital F&B Banquet Equipment $72K F&B Kitchen Equipment $31K 2018 Budget F&B Banquet Equipment $72K F&B Kitchen Equipment $31K Garage Gate and Elevator Landings $54K Information Technology $94K Contingency – Replacement Equipment $24K Total $275K