About KWB Hotel Partners

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WHY KWB HOTEL PARTNERS, LLC A DIFFERENTIATED INVESTMENT THESIS Investor-focused, Fee Lean COMPARISON OF FEES TYPICAL FEES OTHER SPONSORS KWB Asset Management 1% Reimbursed at cost Acquisition¹ 2% Reimbursed at cost Disposition 1%-4% Reimbursed at cost Loan Guarantee² 1% None Construction 4% Reimbursed at cost Property Management Expense Passed through at cost, with no markup Great markets, great sites, great brands Marriott, Hilton, InterContinental Hotels Group and Hyatt: Premium brands with global reservation and bookings systems and over 250 million enrolled loyalty members Best-in-class operations focused on efficiency and profitability A systematic approach based on nearly 40 years of proven success Conservative approach to leverage Typical structure calls for 40% equity, 60% leverage. 20-year amortization on structured mortgages to aggressively pay down debt Geographic diversity utilizing clustering strategy to gain efficiencies and maximize potential profits Kansas City metro – 4 properties Denver metro – 3 properties Phoenix metro – 2 properties 1 In certain circumstances, Kerry W. Boekelheide, KWB or affiliates of either may acquire hotels or land and later sell them to the Company. The sale price shall not be higher than the market value of the hotel or of the land, at its then-current state of development. 2 The Company has borrowed, and may borrow in the future, from Kerry W. Boekelheide, KWB, their affiliates or other members. Generally, these loans provide bridge financing or renovation financing to enable the Company to acquire land, acquire a hotel or otherwise accomplish its purposes until permanent financing or equity is available. Such loans will either be repaid with funds raised in this Offering, refinanced with bank financing, or have their maturity dates extended. The lenders also have the option to convert the loan to equity at any time prior to payoff at the rate of 1 Unit per $50,000 converted. Such loans accrue interest at the annual rate of 8% but do not include any Loan Guarantee fees. 06 | KWB
A SIMPLE STRUCTURE As shown in the table below, all classes of Unit holders in KWB Hotel Partners, LLC are entitled to an 8.00% per annum Priority Return on their contributed capital. Investors contributing larger amounts are entitled to a larger share of profits above the Priority. This additional amount reduces the share of profits to KWB, LLC, the Managing Member, and does NOT adversely affect the other Unit class holders. UNIT CLASS CONSOLIDATED PROFORMA¹ MINIMUM INVESTMENT PRIORITY RETURN OFFERING SHARE A $5,000,000 8.00% 75% A-1 $3,000,000 8.00% 70% A-2 $1,000,000 8.00% 65% B $50,000 8.00% 60% OCCUPANCY %¹ AVERAGE DAILY RATE¹ REVPAR¹ 70.7% $121.59 $85.92 72.5% $125.71 $91.16 73.6% $129.83 $95.58 74.4% $133.58 $99.34 74.7% $137.61 $102.86 TOTAL OPERATING REV¹ $32,244,599 $34,312,592 $35,971,226 $37,352,724 $38,647,366 NET OPERATING INCOME¹ $12,817,735 $13,901,929 $14,746,222 $15,401,251 $15,995,888 NET OPERATING INCOME %¹ 39.75% 40.52% 40.99% 41.23% 41.39% LESS DEBT SERVICE² $(6,505,965) $(6,820,965) $(6,820,965) $(6,820,965) $(6,820,965) LESS PRIORITY RETURNS³: CLASS A, A-1, A-2, B TOTAL CASH AVAILABLE FOR DISTRIBUTION $(5,814,000) $(5,814,000) $(5,814,000) $(5,814,000) $(5,814,000) $497,770 1,266,964 $2,111,257 $2,766,286 $3,360,923 FORECASTED RETURNS 4 - 8.00% PRIORITY + PROFITS SHARES YEAR 2019 2020 2021 2022 2023 CLASS A 8.51% 9.31% 10.18% 10.85% 11.47% CLASS A-1 8.48% 9.22% 10.03% 10.66% 11.24% CLASS A-2 8.45% 9.13% 9.89% 10.47% 11.01% CLASS B 8.41% 9.05% 9.74% 10.28% 10.77% 1 Occupancy, Average Daily Rate, RevPAR, Total Operating Revenue and Net Operating Income includes estimates for (i) seven (7) open KWB Hotel Partners hotels and (ii) Residence Inn and Courtyard by Marriott hotels located in suburban Denver, CO, anticipated to be acquired on March 31, 2019. 2 Hotel debt is placed with Metabank, First Dakota National Bank and UMB Bank. Annual Debt Service assumes the 2nd mortgages on the Candlewood Suites and Holiday Inn Express & Suites in Lenexa and the Staybridge Suites in Littleton will be paid off in 2019 with offering proceeds. The Home2 Suites Overland Park loan is interest-only for 2019. 3 An 8% annual Priority Return may be paid to all Class A, A-1, A-2 and B members, in accordance with the Company’s Operating Agreement. Priority Return estimates include replacement of 2nd mortgage, Principal & Interest with investor equity and raising $50,000,000 in the Offering. If $50,000,000 is raised in the Offering, KWB Hotel Partners, LLC will have raised total equity in the amount of $72,675,000. 4 Class A, A-1, A-2 and B Members are entitled to 75%, 70%, 65% and 60% respectively of Projected Additional Distributions. Additional amounts above the 60% Class B reduce distributions to the Class C Member, KWB, LLC. Assumes 25% of equity received from each class. KWB | 07
Page 1 and 2: Securities Offered through Orchard
Page 3 and 4: PROVEN & EXPERIENCED MANAGEMENT STR
Page 5: EDEE SUMMERS REGIONAL DIRECTOR, SAL
Page 9 and 10: Be fearful when others are greedy a
Page 11 and 12: TOP TARGETED CITIES We are city and
Page 13 and 14: KWB HOTEL PARTNERS PORTFOLIO Candle
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Page 17 and 18: KWB HOTEL PARTNERS PORTFOLIO Reside
Page 19 and 20: Trade Names, Logos, Trademarks, and

About KWB Hotel Partners

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