ECHO Partners’ strategy is based on the following key considerations and guidelines:

• We invest exclusively in hotel assets in certain selected European A-Cities.

• Each of our target cities is expected to face supply constraints due to a combination of a steady increase of incoming travel and local limitation of hospitality platforms (such as Airbnb) and/or the limitation of new hotel construction.

• This constellation is expected to result in an increase in occupancy, higher room rates and therefore higher rental income.

• For our value add strategy we target gross > 5% unlevered returns and 7-10% levered returns (cash-on-cash equity yields) on a running basis + upside from renegotiated leases and/or opportunistic exits resulting into 15-20% IRR p.a. total returns on a gross basis

• For our core strategy we target a net 5-7% levered locked in returns with long-term existing contracts and lower leverage applied

• The target sellers’ market with a gross asset value of EUR 10-150 million is highly fragmented, allowing ECHO Partners to consolidate hotels in one single fund with a value add and core strategy