Investor Insights: Q1 MCR Corp

MCR 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

View entire presentation