Specific to the City of Mequon lodging sector, there are currently three traditional hotels offering 136 total rooms, as summarized in the table to the right. There are also 10 short-term rentals registered with the City of Mequon that range in size from one to five bedrooms and offer a total of 32 bedrooms. These units are also subject to current and future sales and lodging taxes for rentals of less

than 30 consecutive days. The following map illustrates the location of the three hotels and the 10 short-term rentals. Please note that Short-Term Rental #3 (the “12112 N Wauwatosa Road” address) has two short-term rentals.

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The rooms revenue for the three Mequon hotels and the short-term rentals was not publicly available. Therefore, we reviewed CoStar data available for the North Milwaukee submarket. The CoStar Group is the leading provider of commercial real estate information and analytics, including aggregate operating data on hotels that participate in their survey. With only three hotels, the City of Mequon's hotel market does not meet CoStar's minimum requirement of four hotels for us to pull a market report, and, often, independent hotels such as those in Mequon do not participate.

Based on our interviews with management of the Mequon hotels, as well as those in the surrounding market area, we assumed that the historic occupancy, average room rate, and rooms revenue for the midscale, economy, and independent hotels in the North Milwaukee submarket are representative of the performance levels of the three Mequon hotels. Please note that CoStar does not track the performance of short-term rentals. There are other commercial services that estimate short-term rental performance; however, given