Deal Compset — H136 Lorenzo Hotel Dallas

H136 Lorenzo Hotel Dallas 237 keys · Tapestry Collection by Hilton · Upscale · Built 1971 Stage 1 — Screening

RGI

76.0

Below 100 — underperforms set

TTM · Subject $88 vs Avg $115.75

MPI

92.3

Occ ~72% vs compset ~78%

TTM · Slight occupancy gap

ARI

84.7

ADR $122 vs compset ~$153

TTM · Rate deficit vs peers

RevPAR Gap

−$27.75

Subject $88 vs compset avg $115.75 · $2.40M annual upside

TTM · 237 rooms × 365 days

−6.6% YoY — Lorenzo declining

Compset Legitimacy Questionable SOFT Bias

Tight downtown geography, same-tier peers — but two 300+ room hotels distort per-room metrics, Crowne Plaza is structurally distressed (not a true peer), and AC Hotel was a genuine omission now corrected. Investigate before modeling full upside.

Score / 100

Tier Alignment

85 · 15%

Size Match

75 · 10%

Geo Tightness

92 · 10%

Missing Neighbors

60 · 25%

Perf. Spread

50 · 20%

Product Type

82 · 10%

RevPAR Spread

55 · 10%

Reported RGI

76.0

Excl. Crowne Plaza

70.8

Delta

−5.2 pts

Removing Crowne Plaza ($56) — a structurally distressed comp — raises the compset avg from $115.75 to $124.29, making Lorenzo look worse, not better. Crowne Plaza was quietly helping the reported RGI. Adjusted RGI of 70.8 is the conservative underperformance figure Warren should model.

2 nearby hotels not in formal set — context only

Westin Dallas Downtown 0.8 mi · 410 rms · Upscale RevPAR ~$110 Excluded: size (2× subject)

Magnolia Hotel Dallas 0.5 mi · 325 rms · Independent RevPAR ~$58 Removed: independent — different demand profile

Hotel ↕	Dist ↕	Rooms ↕	Tier	ADR ↕	RevPAR ↓	YoY% ↕	Status
Lorenzo Hotel Dallas — 1011 S Akard St	—	237	Upscale	$122	$88	−6.6%	Subject
Aloft Dallas Downtown	0.4 mi	193	Upscale	$185	$144	—	Keep
Hampton Inn & Suites Dallas Downtown	0.5 mi	176	Upper Mid	$144	$112	—	Keep
Hotel Indigo Dallas Downtown	0.6 mi	168	Upscale	$113	$85	—	Keep
AC Hotel Dallas Downtown	0.6 mi	128	Upscale	$177	$138	—	Add
Renaissance Dallas Hotel	0.7 mi	177	Upscale	$176	$137	—	Keep
Hilton Garden Inn Downtown Dallas	0.7 mi	171	Upscale	$188	$147	—	Keep
Crowne Plaza Dallas Downtown	0.7 mi	309	Upscale	$102	$56	—	Watch
SpringHill Suites Dallas Downtown	0.9 mi	148	Upper Mid	$137	$107	—	Keep
Compset Average (8 members)	—	184	—	$153	$115.75	—	—

RevPAR figures are tax-derived TTM (Dallas County). ADR estimated from RevPAR at assumed occupancy. YoY% available for Lorenzo only (tax record comparison 2024 vs 2025).

Rate Position

Subject ADR: $122 Compset Avg: $153

$122

−20.3% vs compset avg ADR

Source: Tax RevPAR TTM · ADR estimated at ~72% Occ (subject) / ~78% Occ (comps)

Upscale peers Aloft ($185), HGI ($188), AC Hotel ($177) suggest $50-65 ADR gap. Even mid-range Hilton brand optimization targets $145-150 ADR territory.

Revenue Upside — Closing the RevPAR Gap

$2,400,000

$27.75 gap × 237 rooms × 365 days

Crowne Plaza drag note: Removing Crowne Plaza raises the compset avg to $124.29 and adjusted RGI falls to 70.8 — meaning the $2.40M upside figure is the conservative case. Lorenzo is also declining YoY (−6.6%, from $8.15M in 2024 to $7.6M TTM 2025), which compresses the base. Any underwriting should model the full-gap scenario ($2.40M) against a declining baseline, not the soft-bias RGI of 76.