#1MCR HOSPITALITY FUND IV LP January 2024 VA WEY Residence w BY MARRIOTT Residence MCR#2IMPORTANT NOTICE & DISCLAIMER This presentation (this "Presentation") contains proprietary, trade secret and other confidential information of MCR Investors LLC (collectively with its affiliates, "MCR," the "Firm," "we" or "us") and is being furnished to the recipient on a confidential basis solely as an outline of matters for informational and discussion purposes related to a potential investment in the limited partnership interests of MCR Hospitality Fund IV LP (together with any parallel investment vehicles, the "Fund"). By accepting this Presentation, the recipient agrees that, without the prior written consent of MCR, the recipient shall not copy, distribute, make available or otherwise disclose, in whole or in part, any information in this Presentation to any other parties. This Presentation contains general information about the investment strategies intended to be used by MCR. This Presentation is not an offer to sell or a solicitation of an offer to buy any security issued by the Fund or any other security in any jurisdiction in which such an offer or solicitation would be prohibited by law or to any person who is not an "accredited investor" as defied in Regulation D under the Securities Act of 1934, as amended. Any offer or solicitation relating to the securities of the Fund may only be made by delivery of the final confidential private placement memorandum (as amended, restated, supplemented or otherwise modified, the "Memorandum") and the agreement of limited partnership (and related agreements) of the Fund (collectively with the Memorandum, the "Fund Documents") and only where permitted by applicable law. This Presentation is qualified in its entirety by the more detailed information in the Fund Documents. In the event that any terms, conditions or other provisions of the Fund Documents are inconsistent with or contrary to the description of terms set forth in this Presentation, the terms, conditions and other provisions of such Fund Documents shall control. There is no public market for the limited partnership interests of the Fund, and none is expected or intended to develop. Any decision to make an investment in the Fund should be based solely on the information in the Memorandum and the governing documents of the Fund. This Presentation is not intended to constitute legal, tax or accounting advice or an investment recommendation. Prospective and existing investors should consult their own advisors about such matters. An investment in the Fund is subject to significant risk of loss of income and capital. Certain information included in this Presentation was derived from third party materials or other sources believed to be accurate, but no independent verification has been made of such material or other sources. The views expressed herein are the opinions of MCR and should not be construed as absolute statements and are subject to change without notice to you. No representation, express or implied, is given regarding the accuracy of the information contained herein. Neither MCR nor any of its affiliates has any obligation to update the information contained herein. The inclusion of any third-party firm and/or company names, brands and/or logos does not imply any affiliation with such firms or companies. None of such firms or companies have endorsed MCR, the Fund or any of their affiliates or personnel. Certain information contained in this Presentation constitutes "forward looking statements" that can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. Any forward-looking statements included herein are based on the Firm's current opinions, assumptions, expectations, beliefs, intentions, estimates or strategies regarding future events, are subject to risks and uncertainties, and are provided for informational purposes only. Actual and future results and trends could differ materially, positively or negatively, from those described or contemplated in such forward-looking statements. Moreover, actual events are difficult to project and often depend upon factors that are beyond the control of the Firm. Given these uncertainties, no reliance should be placed on such forward-looking statements. No forward-looking statements contained in this Presentation constitute a guarantee, promise, projection, forecast or prediction of, or representation as to, the future and actual events may differ materially. The Firm neither (i) assumes responsibility for the accuracy or completeness of any forward-looking statements, nor (ii) undertakes any obligation to update or revise any forward-looking statements for any reason after the date of this Presentation. The delivery of this Presentation at any time shall not under any circumstances create an implication that the information contained herein is correct as of any time after the earlier of the relevant date specified herein and the date of this Presentation. In addition, unless the context otherwise requires, the words "include," "includes," "including" and other words of similar import are meant to be illustrative rather than restrictive and shall be deemed to be followed by the phrase "without limitation." Forward-looking statements, discussions of the business environment and investment strategy of the Fund and investment performance included herein (e.g., with respect to financial markets, business opportunities, demand, investment pipeline and other conditions) are subject to the ongoing novel coronavirus outbreak ("COVID-19"). The ultimate and lasting impact of COVID-19 is particularly uncertain and difficult to predict; therefore, such forward-looking statements do not reflect COVID-19's ultimate potential effects, which may substantially and adversely impact the Fund's execution of its investment strategy. Any specific investments or case studies identified in this Presentation were selected for inclusion on the basis of being representative of investments or commitments to invest that the Firm believes are comparable to investments that the Fund may seek to make. It should not be assumed that investments identified were or will be profitable, that their performance is necessarily representative of the Firm's overall performance, that MCR will be able to effect similar changes or improvements in the strategies, business or operations of any future investments or that decisions MCR or the Fund will make in the future will be comparable. Improved portfolio investment results are due to a number of factors in addition to MCR's asset management approach, including the skills and capabilities of portfolio investment management, contributions by consortium partners, industry trends and conditions and general economic and financial conditions. Actual results may differ materially, positively or negatively, from those reflected in this Presentation. The asset management approach of MCR to each portfolio investment is unique and depends on the facts and circumstances of that particular company. The asset management approaches described in any specific investments or case studies identified in this Presentation may or may not be used for the Fund but are representative of the approaches MCR may employ. No assurances are given that any such asset management approach will be employed by MCR or will achieve any particular result. The portfolio investments included herein are based primarily on the Firm's internal projections and research conducted leading up to the initial investment in the relevant transaction. Except where otherwise indicated, such information has not been updated subsequent to the making of such internal analysis, is not intended to provide an update of company performance, and at the time made was and remains today subject to a number of actual contingencies which are generally not discussed herein. References to the investments included in the case studies should not be construed as a recommendation of any part investment or security. Recipients of the Presentation acknowledge and agree that it may contain material, non-public information and that the United States securities laws, and applicable laws in other countries, prohibit any person or entity who has material, non-public information about an issuer or securities from purchasing or selling securities of such issuer or from communication of such information to another person or entity. MCR 2#3HOTEL SHARPSHOOTER Marriott Track Record $2.0B of equity invested since inception in 2006 MCR operate Vertically-integrated (investment manager + experienced hotel operator) Own Hilton HOTEL 3rd largest hotel owner-operator in the US (invested in 194 hotels across 37 states) Renovate Completed 110 renovation projects ($160MM in total costs) Build Developed 17 hotels ($600MM in total development costs) COURTYARD Marriott FAIRFIELD Marriott INN Hilton Garden Inn 440 TWA THE HIGH LINE HOTEL Residence Marriott Inn t Hampton SPRINGHILL SUITES Marriott HOMEWOOD SUITES Hilton- THE NEW YORKER HOME SUITES BY HILTON Towne Place SUITES Marriott tru by HILTON R RENAISSANCE" HOTELS DOUBLETREE BY HILTON aloft HOTELS SHERATON TAPESTRY COLLECTION by Hilton ROYALTON PASADENA HOTEL & POOL NEW YORK THE CHAMBERS HOTEL AUTOGRAPH COLLECTION HOTEL INDIGO INK 48 -HOTEL- Note: The inclusion of the above third-party firm and/or company names, brands and/or logos does not imply any affiliation with these firms or companies. None of these firms or companies have endorsed MCR, the Fund or any associated entities or personnel. MCR 3#4VERTICALLY-INTEGRATED PLATFORM Hotel Investment Manager Above-Property Investments, Construction, Operations, Revenue Management, Finance, Payroll, Creative, etc. 250 team members MCR MCR Headquarters New York Hotel Operating Company Property-Level General Managers, Sales Directors, Executive Housekeepers, Front Desk Agents, Maintenance Engineers, etc. 6,000 team members Dallas MCR Value Add a Note: The Firm and its affiliates will provide services (such as property management) to MCR Hospitality Fund IV LP and/or its portfolio investments. Compensation paid to persons for such services will be borne by the MCR fund and/or its applicable portfolio investments. No such compensation will result in offsets to, or reductions of, any investment management fees. MCR 4#5INVESTED IN 194 HOTELS ACROSS 102 CITIES AND 37 STATES Marriott COURTYARD Marriott Hilton HOTEL • JO A FAIRFIELD Marriott INN Hilton Garden Inn TWA THE HIGH LINE HOTEL Residence Inn Marriott t Hampton HOMEWOOD SUITES Hilton- THE NEW YORKER SPRINGHILL SUITES Marrioll Dallas HQ HOME SUITES BY HILTON Chicago Office MCR Towne Place SUITES Marriott tru by HILTON R RENAISSANCE HOTELS DOUBLETREE BY HILTON New York HQ Richmond Office alloft HOTELS ROYALTON PASADENA HOTEL & POOL NEW YORK SHERATON TAPESTRY COLLECTION by Hilton THE CHAMBERS HOTEL AUTOGRAPH COLLECTION HOTEL INDIGO INK 48 -HOTEL- 5#66,600+ TEAM MEMBERS LED BY EXPERIENCED EXECUTIVE TEAM Executive Team Russ Shattan Partner Starwood Hotels Senior Professionals Lisa Ross Chief Accounting Officer Behringer Harvard, Hampstead Group Chad Newman SVP, Hotel Execution Island Hospitality, Briad Hotel Group Tyler Morse Founder, CEO, Managing Partner Experience: Starwood Hotels & Resorts, Bliss Spa, Morgan Stanley, Ernst & Young William White Chief Financial Officer NYC Economic Development Corp. Trey Tschoepe Chief Administrative Officer OSG USA, CPS Energy Cheryl Sinclair VP, Human Resources Farmers Insurance, Princess Cruises MCR Joe Delli Santi Chief Investment Officer Starwood Capital, J.P. Morgan Jaimee Zanzinger SVP, Creative US Weekly, Glamour Magazine Karlie Hamilton VP, Infrastructure & Process Design Island Hospitality Nathan Logan General Counsel Latham & Watkins Sameer Mehra Chief Revenue Officer Hersha Hospitality, Highgate Nandu Kuppuswamy VP, Investor Relations University of Richmond (Spider Management) 6#7STRONG TRACK RECORD B. C. D. E. 18% gross IRR (13% net IRR) on MCR hotel investment strategies (similar to Fund IV) Net Net IRR Multiple (E) (F) F. Investment ($MM) Realized MCR St. Louis MCR Dulles MCR Florida MCRB Portfolio MCRS Portfolio Sub-Total (Realized) Partially Realized MCR Hospitality Fund II LP ("Fund II") MCR Opportunity Fund I LP ("Fund III") MCR Hospitality Fund LP ("Fund I") T53 Portfolio Sub-Total (Partially Realized) Total (Realized & Partially Realized) Vintage 2016 2016 2012 2012 2010 2020 2020 2017 2015 Capital Committed (A) $10.3 $11.9 $6.4 $84.2 $104.0 $216.7 Capital Invested (B) $10.3 $11.9 $6.4 $84.2 $104.0 $216.7 $451.0 $235.0 $127.2 $127.2 $300.0 $267.0 $316.6 $316.6 $1,194.8 $945.8 $1,411.5 $1,162.5 Gross IRR (C) 45.7% 6.9% 33.6% 21.8% 17.2% 20.3% 29.1% 11.5% 9.4% 12.9% 18.0% 18.3% MCR Gross Multiple (D) 2.0x 1.4x 3.8x 2.0x 1.9x 2.0x Note: Past performance is not necessarily indicative, or a guarantee, of future results. Track record as of September 30, 2023. A. "Capital Committed" represents the total equity raised by MCR, along with any financial partners, where MCR was responsible for the sourcing, structuring and ongoing management of the transaction. 1.5x 1.3x 1.3x 1.9x 1.5x 1.6x 36.9% 5.9% 28.8% 19.5% 15.2% 17.8% 17.5% 9.4% 5.8% 11.6% 12.1% 13.0% 1.8x 1.2x 3.2x 1.9x 1.8x 1.8x 1.3x 1.2x 1.2x 1.7x 1.4x 1.4x "Capital Invested" represents the total equity invested by MCR, along with any financial partners, where MCR was responsible for the sourcing, structuring and ongoing management of the transaction. For partially realized investments, Capital Invested includes actual contributions upon acquisition and through the life of each investment through September 30, 2023. "Gross IRR" represents the gross aggregate, annual, compound, internal rate of return on investments, calculated on a gross basis and does not reflect the deduction of management fees, carried interest, and other expenses borne or expected to be borne by investors, which in the aggregate are expected to be substantial. In the case of partially realized investments, Gross IRRS are calculated assuming those investments were realized at their fair market value as of September 30, 2023. "Gross MOIC" or "Gross Multiple" represents the multiple of invested capital, calculated on a gross basis, and does not reflect the deduction of management fees, carried interest, and other expenses borne or expected to be borne by investors, which in the aggregate are expected to be substantial. In the case of partially realized investments, Gross MOICs are calculated assuming those investments were realized at their fair market value as of September 30, 2023. "Net IRR" reflects the deduction of management fees, carried interest, and other expenses from the Gross IRR on investments. In the case of partially realized investments, Net IRRs are calculated assuming those investments were realized at their fair market value as of September 30, 2023. "Net MOIC" or "Net Multiple" reflects the deduction of management fees, carried interest, and other expenses from the Gross MOIC on investments. In the case of partially realized investments, Gross MOICs are calculated assuming those investments were realized at their fair market value as of September 30, 2023. 7#8MCR INVESTS IN HOTELS BECAUSE OF THE YIELD Hotels trade at 300+ bps cap rate premium to other real estate asset classes Cap Rates by Asset Class 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 2011 2012 2013 2014 2015 Apartment 2016 2017 Industrial 2018 Office 2019 Retail 2020 Hotel 2021 2022 Hotels: 7.8% Retail: 6.3% Office: 5.5% Apartment: 4.9% Industrial: 4.9% 2023P 2024P Source: Rosen Consulting Group and American Council of Life Insurers. Note: There can be no assurance that any historical trends will continue over the life of the Fund or any investment that the Fund or its future investments or any investment will achieve comparable results to those presented herein. MCR 8#9AND BECAUSE THE FUNDAMENTALS ARE SOLID 4.5% revenue CAGR over nearly 30-year period ($56B of room revenue in 1995 → $198B in 2023) Annual US Hotel Room Revenue ($ in Billions) $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $55.5 $40.0 $20.0 $0.0 1995 4.5% CAGR from 1995 - 2023 1999 2003 2007 2015 2019 $198B of Room Revenue + $92B of Food & Beverage / Other Revenue = $290B Industry in US in 2023 MCR 2011 $197.5 2023 9#10AND BECAUSE THE FUNDAMENTALS ARE SOLID (CONT'D) 4.5% revenue CAGR vs. only 1.2% supply growth CAGR historically 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 1995 1999 2003 US Hotel Room Openings as % of Existing Inventory 2007 1.2% CAGR I I from 1995-2022 i 2011 MCR 2015 2019 2023P Lower supply growth from 2023 – 2027 given (i) construction costs today, (ii) supply chain issues / construction timelines and (ii) lack of construction financing (and cost of it if available) 2027P 1.0% Projected CAGR ! 2023-2027 10#11THE TRICK IS MITIGATING THE VOLATILITY Hotels (daily leases) are more volatile than other real estate asset classes (longer-term leases) MCR mitigates that volatility via: #1) Experienced in-house operations team MCR runs hotels better than its competitors #2) Low leverage Borrow at <65% LTV/1.5x debt service coverage; can withstand recession and not breach loan covenants #3) Focus on rooms business (high margins), not food and beverage or spas (low margins) Projected Incremental Profit from Guestroom Sale Sample Hotel Operating Statement (1) Revenue Revenue from Guestroom Sales Operating Expenses Housekeeping Wages (30 Minutes at $12/Hour to Clean Room) Complimentary Breakfast Reservation Fees Guest Supplies / Toiletries (Shampoo, Coffee, etc.) Franchise Fees (Paid to Marriott / Hilton) Credit Card Commissions $ Amt. % (1) The above table (sample operating statement of a hypothetical select service hotel) is for illustrative purposes only. MCR $100 100.0% 6.0% 3.0% 2.0% 1.0% 9.6% 2.8% $24 24.4% $76 75.6% $6 3 2 1 10 3 Total Operating Expenses Gross Operating Profit Generally, 76% of revenue flows through to the bottom line from the sale of a guestroom 11#12MCR INVESTMENT STRATEGY: BUY IT. FIX IT. SELL IT. Step #1) Buy It ● ● ● ● ● ● ● Single-asset acquisitions and portfolios Distressed deals (foreclosure auctions, non-performing loans, loan-to-own, etc.) Limited service and full-service hotels Step #2) Fix It ● <15 years old Fee simple Always: Run hotels 350 - 400+ bps in margin better than other operators Sometimes: Lightly renovate (typically spend less than $20K per guestroom) Rarely: Re-brand (convert from independent or weaker brands like Choice and InterContinental to stronger brands like Marriott and Hilton) Step #3) Sell It ● Strong, growing primary and secondary markets across the US 20%+ discounts to replacement cost Sell opportunistically Single-assets or portfolios (depends on what maximizes investor profits) Potential buyers: Public REIT's, private equity firms, other owner/operators, etc. Positioned to participate in all stages of the cycle given track record in (i) acquisitions (incl. via bankruptcy/foreclosure auctions), (ii) development, (iii) non-performing loans and (iv) public equities Illustrative Investments MCRB Portfolio (Dec. 2012) 10-hotel select service portfolio acquisition Sanna See 20% net IRR/1.9x multiple (5-Year Hold) MCR Florida (May 2012) 2-hotel select service portfolio acquisition FATHER 29% net IRR/3.2x multiple (6-Year Hold) Killington Mountain Lodge (June 2020) Independent to Hilton brand conversion 52% net IRR/1.7x multiple (2-Year Hold) Note: Past performance is not necessarily indicative, or a guarantee, of future results. The composite performance information herein is included for illustrative purposes only. Please see page 17 for a list of MCR investments, including the performance of each such investment, and footnotes for important information, including regarding composite return figures included herein and the calculation of performance metrics used herein. MCR 12#13MCR CASE STUDY: STAYBRIDGE SUITES PALM SPRINGS, CA Step #1) Buy It Acquired non-performing, defaulted loan for $23.3MM in Apr. 2021 • Took title to hotel via foreclosure auction on courthouse steps very next day Off-market deal (direct to lender) Non-institutional hotel sponsor with <5 hotels (0 in California) $117K per guestroom purchase price = 60%+ discount to replacement cost ● Step #2) Fix It Terminated InterContinental brand management at closing (via foreclosure) MCR took NOI from $250K at acquisition (Apr. 2021) to $1.5MM at sale (Apr. 2022) Doubled RevPAR from $54 to $93 ($2MM+ of revenue) Started charging for parking ($200K of incremental income) Terminated unnecessary computer, telecommunications, mechanical etc. equipment leases via foreclosure ($150K of annual savings) ● Purchase Price (Apr. 2021): $23.3MM Sale Price (Apr. 2022): $30.0MM Net IRR: 84% Net Equity Multiple: 1.9x Whole Dollar Profit: $8.4MM Hold Period: 1 year Note: Past performance is not necessarily indicative, or a guarantee, of future results. The composite performance information herein is included for illustrative purposes only. Please see page 17 for a list of MCR investments, including the performance of each such investment, and footnotes for important information, including regarding composite return figures included herein and the calculation of performance metrics used herein. MCR Step #3) Sell It Sold for $30.0MM to private equity firm in Apr. 2022 5.0% cap rate on in-place NOI at exit Driving factors of cap rate: (i) demand for drive-to leisure locations during COVID and (ii) MCR secured Homewood conversion option upon sale (better Hilton brand) ● Realized Investment 13#14MCR CASE STUDY: HILTON DOWNTOWN ST. LOUIS, MO Step #1) Buy It Bought for $21.5MM from publicly traded REIT in Dec. 2016 Broken process (originally marketed as part of 10-hotel portfolio that didn't trade) Orphan asset (no ownership oversight on operations) $110K per guestroom purchase price = 50%+ below replacement cost Step #2) Fix It Terminated Hilton brand management at acquisition closing; transitioned to MCR Increased NOI from $1.6MM at acquisition (Dec. 2016) to $2.5MM at sale (Sept. 2018) Reduced employee headcount from 70 →40 Restructured F&B (eliminated lunch, focused on higher-margin beverage sales) Revamped revenue management strategy (marginally lowering room rates by $3 resulted in 8.0 pct. point occupancy improvement, +$650K in revenue) ● ● ● ● Step #3) Sell It Sold for $29.5MM to a regional private equity firm in Sept. 2018 $8.0MM (37%) increase over purchase price 7.9% cap rate (including buyer's required capex) on in-place NOI at exit Negotiated conversion option to Hilton Garden Inn (with Hilton); attracted both limited service and full-service buyers (more competitive bidding process) Realized Investment Purchase Price (Dec. 2016): $21.5MM Sale Price (Sept. 2018): $29.5MM Net IRR: 37% Net Equity Multiple: 1.8x Whole Dollar Profit: $10.4MM Hold Period: <2 years Note: Past performance is not necessarily indicative, or a guarantee, of future results. The composite performance information herein is included for illustrative purposes only. Please see page 17 for a list of MCR investments, including the performance of each such investment, and footnotes for important information, including regarding composite return figures included herein and the calculation of performance metrics used herein. MCR 14#15● Latest vehicle (MCR Hospitality Fund IV LP) is continuation of prior vehicle strategies Investing in hotels and hospitality related assets across the US $750MM of equity (target) = $2B in purchasing power Expect to invest in 50 hotels • Fund IV already owns 8 hotels: Florida (3, Orlando and Daytona Beach), Phoenix (2), Charlotte (1), Charleston (1) and New York City (1) MCR INVESTMENT STRATEGY: PORTFOLIO CONSTRUCTION ● • Premium brands: Hilton (4), Marriott (2), Hyatt (1) and independent (1) ● Existing Fund IV Hotels MHYATT PLACE Hyatt Place Orland Lake Buena Vista Orlando, FL Hampton Inn Phoenix Biltmore Phoenix, AZ COURTYARD Courtyard Orlando / Deland Downtown Orlando, FL Holdbay Inn Express & Su Holiday Inn Express & Suites Scottsdale (Converting to Home2 Suites by Hilton) Scottsdale, AZ Hampton Inn Daytona Beach Oceanfront Daytona Beach, FL MCR Prior MCR Fund Markets Courtyard North Charleston Charleston, SC Da canopy Canopy by Hilton Charlotte Southpark Charlotte, NC Gramercy Park Hotel New York, NY 15#16DISTRESSED OPPORTUNITIES ON THE HORIZON $55B 2H 2023 $3B $1.8B 2H 2023 $65B I 2024 Hotel Loans Maturing Annually ($) $14B $0.7B $50B 2025 $16B Case and Point: 15% of Near-term Securitized Hotel Loans Already Delinquent $19B $1.2B 2024 Loans in Delinquency 2025 $20B 2026 $0.3B $25B 2026 2027 16B $0.2B 2027 $15B Total Securitized Hotel Loans 2028 $8B $0.2B 2028 $170B of Hotel Loans Maturing through 2025 + "Higher For Longer" Interest Rate Environment Distressed Acquisition Opportunities Source: JLL Research Note: Data as of 3Q 2023. Year of maturity is reflective of extensions granted as of 3Q 2023. Delinquent debt includes loans that are 30 days, 60 days, and 90+ days delinquent as well as foreclosures, REOs, non-performing maturity balloon, and performing maturity balloon loans. MCR 16#17MCR CORPORATE RESPONSIBILTY MCR creates value through responsible investing. MCR believes in the alignment of business practices with the principles of sustainability and corporate responsibility. MCR is cognizant of its environmental footprint and committed to reducing its impact. ENVIRONMENTAL IMPACT MCR is committed to working with key stakeholders - from employees to vendors - to implement policies to reduce the impact of its environmental footprint. MCR reports property-level consumption data to Marriott, Hilton, etc. brand partners to identify and support programs aimed at reducing energy and water usage, carbon emissions and waste. MCR internally tracks water and energy consumption and contracts with a third-party to consolidate / track waste removal and recycling programs. Acquisition due diligence includes a review of ESG factors to identify environmental risks, as well as opportunities to improve energy efficiency and water conservation. ESG Highlights SOCIAL IMPACT MCR is committed to diversity, equity and inclusion, with a workforce that is 63% female and 71% minorities. MCR supports and adheres to social responsibility guidelines and initiatives established by Marriott / Hilton brand partners. Acquisition due diligence includes a review of compliance with local codes and regulations, as well as labor practices. MCR strives to make a positive impact through various community organizations, education partners, and industry groups, including the Partnership for New York City and the American Hotel & Lodging Association (AH&LA). MCR GOVERNANCE MCR became a Registered Investment Advisor with the SEC (effective as of February 2, 2023). Now regulated under the Investment Advisor Act of 1940, MCR is subject to additional governance and oversight requirements, providing increased communication and transparency to investors. MCR maintains policies for Health and Wellness, Human Rights, Anti-Discrimination, and Anti-Harassment, as well as a Code of Business Conduct and Ethics. Affirmation of MCR's policies, including its Standard of Conduct and Ethical Conduct policies, is required as part of employee onboarding. 17#18MCR CORPORATE RESPONSIBILTY MCR supports a diverse and inclusive working environment. Committed to diversity, equity, and inclusion 7,000 total employees 4,190 Females (63%) and 4,709 Minorities (71%) MCR Diversity Metrics Female 4,190 (63%) Gender Male 2,422 (37%) Note: Data as of June 30, 2023 (1) Other includes Native American, two or more races, other, or declined to provide MCR Asian Other(¹) 407 606 (6%) (9%) Black 1,619 (25%) Ethnicity White 1,903 (29%) Hispanic 2,077 (31%) 18#19HONORS & AWARDS Hotel Business Marriott Hilton HOTEL MANAGEMENT COMMERCIAL PROPERTY EXECUTIVE ESTOMPANY ST INTE ALIS AMERICAS LODGING FINVESTMENT SUMMIT WBC WOMEN BUILDERS COUNCIL OPENING DOORS WIDER Hotel Business Magazine - 2021 Top Hotel Owners & Developers 3rd largest hotel owner-operator in the US 2015, 2018 and 2021 Marriott Partnership Circle Award Highest honor presented to Marriott's owner / franchise partners for hospitality excellence 2017 and 2019 Hilton Top Performer Award Honored as top owner / manager of Hilton hotels under the Hampton and Hilton Garden Inn brands Hotel Management - 2021 Top Hotel Companies Annual ranking of the world's largest hotel companies by room count Commercial Property Executive - 2018 Hotel Executive of the Year Tyler Morse, CEO & Managing Partner of MCR (Honorable Mention) Fast Company - 2020 Most Innovative Travel Company Awarded to 10 most innovative travel companies 2020 and 2021 Deal of the Year Single Asset Transaction of the Year (under $25MM) Women Builders Council - 2019 Diversity Champion Recognizes private-sector institutions who champion inclusion in all aspects of their business Note: Award and rankings are based upon third-party reviews and opinions and are not indicative, or a guarantee, of MCR's, the Fund's or any investment's future performance. The inclusion of the above third-party firm and/or company names, brands and/or logos does not imply any affiliation with these firms or companies. None of these firms or companies have endorsed MCR, the Fund or any associated entities or personnel. MCR 19#20PARTNERSHIPS & ALLIANCES Marriott Partnership Circle Award Winner NA National Association of Real Estate Investment Trusts DDIJA pension real estate association IIVII PARTNERSHIP for New York City Hilton Top Performer Award; Hilton Product Advisory Council COURTYARD Marriott Ⓡ Courtyard by Marriott Franchise Advisory Council AHLA Member, AH&LA Industry Real Estate Finance Advisory Council Member REBNY REAL ESTATE BOARD OF NEW YORK The Real Estate Roundtable Towne Place SUITES Marriott TownePlace Suites by Marriott Franchise Advisory Council PK Ⓡ BC NEW YORK BUILDING CONGRESS Fisher Center for Real Estate & Urban Economics University of California Berkeley Haas School of Business HOME 2 SUITES BY HILTON Home2 Suites by Hilton Franchise Advisory Council PREP FOR PREP. INTEGRITY I PREP COMMITMENT COURAGE 35 37 ----- 1978 ๐ กว Prep for Prep HANYC HOTEL ASSOCIATION OF NEW YORK CITY NYPEN NY Private Equity Network Note: The inclusion of the above third-party firm and/or company names, brands and/or logos does not imply any affiliation with these firms or companies. None of these firms or companies have endorsed MCR, the Fund or any associated entities or personnel. MCR 20#21MCR HOSPITALITY FUND IV LP TERMS Key Term Investment Objective Target Fund Size Investment Return Target Minimum Commitment GP Commitment Offering Period Geographic Focus Investment Period Term Investment Management Fee Preferred Return Waterfall The Fund will seek to make investments in hotel and hospitality real estate and hospitality related assets $750MM, not to exceed $1.0B The Fund will seek to achieve portfolio-level gross compound annual IRR of 18% - 20% (15% -17% net) (¹) $5MM, although capital commitments of lesser amounts may be accepted at the General Partner's discretion $15MM minimum (regardless of fund size) 12 months from the initial closing (through May 2024) United States 4 years after the Fund's effective date 10 years after the Fund's effective date, may be extended by the General Partner for (i) one 1-year period in its discretion and (ii) two consecutive 1-year periods (with advisory board approval) 1.5% of capital commitments during the Investment Period, and thereafter, 1.5% of equity invested 8.0% 1. 2. 3. 4. 100% of LP capital contributions returned 100% of distributions to LP's until 8% internal rate of return 50% to the GP and 50% to the LP's until the GP has received 20% of the distributed profits; and 80% to LP's and 20% to the GP (1) There can be no assurance that the Fund will achieve such returns or objectives. The adoption of these performance objectives is not intended to predict the Fund's performance; instead, the objectives are used to help explain how the General Partner intends to construct the Fund's portfolio. The performance of each real estate asset owned by the Fund may vary substantially over time and may not achieve the targeted returns set forth herein, which may have a material effect on overall portfolio performance over the life of the Fund. The ultimate returns realized by the Fund will depend on numerous factors, which are subject to uncertainty. Accordingly, there can be no assurances that any performance or return objective will be realized or achieved. In addition, there are a variety of risks that may impede the achievement of the performance objectives. Note: The "Summary of Principal Terms" contained herein is necessarily incomplete and is qualified in its entirety by reference to the Memorandum and the governing documents of the Fund Partnership (including the relevant subscription agreement). Copies of the Memorandum, the governing documents of the Fund and the subscription agreement will be made available to qualified investors upon request. Target performance is not a guarantee or prediction and is not necessarily indicative of future results, but rather an indication of how the Manager intends to construct the risk profile of the Fund. Potential investors should not rely on such target performance information in connection with making an investment decision, as actual performance information may vary significantly from the target performance information set forth herein. MCR 21#22MCR