Driftwood Florida Space Coast Portfolio, LP

Space Coast

As a prime and growing market, the Florida Space Coast, located 45-minutes east of Orlando in Brevard County, presents an array of demand drivers. These include the world’s busiest cruise port, Port Canaveral, which projects serving 7.3M passengers in 2024; the globally renowned Kennedy Space Center which projects 90+ launches in 2024 and upwards of 300+ in 2028; the aerospace sector, which contributed $4.2B to the county’s economy in 2021; and the iconic surfing destination of Cocoa Beach, which was voted #1 surf town in the USA in 2023.

Additionally, the Space Coast is a 45-minute drive from Orlando’s MSA, including its renowned theme parks, conference centers, and one of the busiest airports in the USA which saw over 27M passengers in 2023.

Driftwood’s 10-Year Presence on the Space Coast

Over the last decade, Driftwood has strategically acquired three premier beachfront hotels on the Florida Space Coast and one development parcel. Starting in 2013 with the Hilton Cocoa Beach; then in 2016 with the acquisition of a nearby resort (covered land play) that is now the site of the Westin Cocoa Beach Resort & Spa (projected to be completed in 2027); followed in 2018 by the acquisition of the Crowne Plaza Melbourne and the adjacent land, which was used for the development of the element by Westin Melbourne (opened in June 2024).

Driftwood Capital (“Sponsor”) is pleased to present the opportunity to invest in a portfolio of four premium branded beachfront hotels on Florida’s Space Coast

• As projected, the portfolio will be comprised of 1,218 guest rooms (1), 166K SF of meeting space and 21 food & beverage venues on 36 beachfront acres.

• This portfolio may represent ~11% of the Space Coast 2023 market inventory by key count.

• The portfolio anticipates generating cash flow from two operational full-service hotels (Hilton Cocoa Beach and Crowne Plaza Melbourne) and a newly-constructed upscale extended-stay hotel (element by Westin Melbourne), which opened in June 2024.

• Scheduled to open in 2027, the Westin Cocoa Beach Resort & Spa is expected to perform well in a currently unserved market segment. The goal being to establish the hotel as a regional landmark destination hotel.

Sponsor is seeking ~$56M of common equity and ~$41M of preferred equity to cover deferrals and redemptions as part of the ~$334.1M of total equity in the fund.

(1). 716 in place and 502 expected to be delivered in 2026

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

The Portfolio may offer a flexible and attractive investment structure by combining common equity for future upside and preferred equity for current cash flow. Investors have the opportunity to customize their allocation between preferred and common investment options to suit their particular preferences.

Common Equity

• Projected to have a higher upside potential in the medium/long term comprising of distributions from free cash flow as well as capital events such as refinancings and asset dispositions.

Preferred Equity

• A 12% annual coupon which is anticipated to be paid current each quarter in arrears.

• A ~$9.1M reserve account fully funded at the initial close may be used to cover any preferred interest payment shortfalls as well as other fund costs.

(1). On a fully-developed basis assuming completion per current designs.

(2). Driftwood Hospitality Management, an affiliated hotel management company.

The investment returns in this offering are projections and not guaranteed. They may change without notice and are subject to various factors. Investing in securities carries risks, including potential loss of principal. The target returns presented on this slide are hypothetical in nature, are based on a number of assumptions, do not reflect actual investment results, and are not any guarantee of future results. In addition, a specific investor’s actual performance may be materially different from such illustrative data depending on numerous factors. There are certain limitations inherent in hypothetical results like those portrayed on this slide. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they do not reflect trading in actual client accounts and do not reflect the impact that material economic and market factors may have had on the decision-making associated with actually managing client funds. Unlike an actual performance record, hypothetical performance results do not represent actual trading. The information contained on this slide is intended only for qualified investors who are knowledgeable about investments and the associated risks. No representations or warranties whatsoever are made by Driftwood Capital, LLC or any other person or entity as to the future profitability of investment outcomes or the results of making an investment. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. Potential investors should conduct their own due diligence and consult financial advisors before investing. Past performance is not a guarantee of future results.

Anticipated Capital Stack (1)

(1). In no event will preferred interests exceed 40% of the Holding Vehicle's total equity.

Proposed Holding Vehicle Structure Chart

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

Projected Sources of Capital

Projected Uses of Capital

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

Portfolio Highlights

Impressive scale in a dynamic location

Spanning over ~36 beachfront acres within Florida’s thriving Space Coast, the curated portfolio epitomizes robust hospitality real estate. With a projected 1,218 keys (1), 166k SF meeting space, 21 food & beverage venues, and a significant market share (~11.1% of total market keys), four specialized and complementary hotels may play a part in transforming the high-barriers-to-entry Space Coast region into a national destination.

Decade long presence on the Space Coast

Headquartered in Florida, Driftwood possesses deep experience and history within the Space Coast, having been invested in the region since 2013. Over a decade of work is complete, including considerable renovations of the Hilton Cocoa Beach and Crowne Plaza Melbourne, as well as the completion of the new element by Westin Melbourne and a five year entitlement and design process of the new Westin Cocoa Beach Resort & Spa.

(1). On a fully-developed basis assuming completion per current designs.

Additional Anticipated Portfolio Highlights

Operational synergies

With two sets of adjacent properties, operational cost savings and pricing power may yield a competitive advantage.

Recently renovated

The Crowne Plaza Melbourne completed a $18.5M (~$64K per key) renovation of guest rooms and public spaces in 2018-2019 and $10M (~$34K per key) was spent on a substansive renovation of the Hilton Cocoa Beach in 2023, which helped position the hotel as the current leader in the competitive set.

Compelling incentives for Westin Resort & Spa development

The portfolio may benefit from a $30M grant from Brevard County and an anticipated $25M performance guarantee from Marriott. This, combined with the absence of full-service Marriott beachfront properties within the 160 mile coastal area between Daytona Beach and Hutchinson Island, may present a unique opportunity within a potentially under-served, premier market.

(1). Luxury Hotel Sales Comparables, 2024

Anticipated Portfolio Breakdown

Portfolio Projected Timeline

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

Location

The assets are situated in what Sponsor believes is an economic impact resilient portion of the nation that is further bolstered by booming economic growth sectors, and strong leisure, corporate, and government demand. Pristine beaches and space-related attractions may create a robust tourism market supplemented by the exponential growth of the space industry.

Prime market with compelling demand drivers

• Closest beach to Orlando amusement parks and MSA which attracts approximately 58M annual visitors (1)

• The aerospace industry contributes $5.9 billion to the state’s economy and supports over 151,460 aeropsace-related jobs (2)

• Kennedy Space Center Visitor Complex received 1.5M visitors in 2022 (2)

• Cocoa Beach was named the US Top Surfing Destination (3)

• 2.5M visitors to Cocoa Beach in 2022 (4)

• Port Canaveral - #1 Busiest Cruise Port in the World (5)

• US Patrick Space Force/Air force Base & defense Contractors; 14K active personnel & $29B budget (6)

(1). Visit Space Coast, Orlando’s closest beach, 2024; (2). Road Genius, Walt Disney World Tourism Statistics, 2024; (3). New Soace Economy, Expanding Economic Impact and Job Creation, 2022; (4). Nasa, Landing Page, 2024, (5). Business View Magazine, City of Cocoa Beach, 2023; (6). Port Canaveral, Best US Cruise Homeport of 2023, 2024; (7). Financial Management & Comptroller, U.S. Space Force, 2024; (8). United States Space Force, Organization and Location, 2024

300+ rocket launches projected in 2028 (1)

• With the increased cadence of launches from both NASA and commercial entities, the Space Coast is becoming a premier destination for space tourism potentially attracting tens of thousands to the Cocoa Beach area.

• Rocket launches may not only draw in national and international space enthusiasts, but also photographers, and media outlets, potentially creating a consistent flow of visitors to the area.

(1). Dale Ketcham - VP of Government & External Affairs for Space Florida

Port Canaveral

• As the busiest cruise port in the world, Port Canaveral serve as a significant demand generator for the Project and region (1).

• Voted the Best US Cruise Homeport for the fourth consecutive year (2020, 2021, 2022, 2023) by Cruise Hive’s annual Cruise Ship Awards

• Homeport to 13 cruise ships (2), including Carnival, Disney, MSC, Norwegian and Royal Caribbean, bringing in approximately 7M passengers annually (3).

• Total economic impact of Port Canaveral in the Central Florida region was $6.1B in 2023, with 66% ($4B) coming from the cruise industry (2).

• Beyond cruises, the port is also a hotspot for dining, fishing, and other waterside activities (2).

• One of the major employers in the area generating over 42K jobs annually (4)

• Relatively few hotels may currently be serving this market

(1). Business Insider, Top 10 Busiest Ports around the World, 2023; (2). Port Canaveral, Economic Contribution to Florida, 2023; (3). Port Canaveral, John Murray State of the Port Address, 2023; (4). Port Canaveral, Economic Study, 2023

Patrick Space Force Base

• Patrick Space Force Base, with a $29B budget (1), is a significant employer in the region and a key driver of economic activity.

• The base is home to 14K military and civilian guardians and houses 77 spacecraft (2).

• With its strategic importance in the nation’s defense and space operations, it ensures a steady influx of military personnel, contractors, and their families.

• This base further cements the region’s reputation as a nexus for aerospace and defense activities and is expected to provide consistent lodging demand to region for years to come.

(1). Financial Management & Comptroller, US Space Force, 2023; (2). US Space Force, Organization and Location, 2023

Space Coast hotel RevPAR has grown 6% on average YoY

The Florida Space Coast lodging market has demonstrated historically stable occupancy and strong room revenue growth

• Brevard County surpassed pre-Covid RevPAR in 2021

The Crowne Plaza Melbourne and Hilton Cocoa Beach have historically outperformed the market

• $100+ RevPAR gap between 2020 and 2023F

• 5.4% RevPAR growth since 2016

• Hilton Cocoa Beach achieved a 156% market penetration in 2022

• Crowne Plaza Melbourne achieved a 120% market penetration in 2022

In considering the information on this slide, prospective investors should bear in mind that past performance of the investments is not indicative of future results of such investments or the performance of individual investments. There can be no assurance that the investments will achieve the intended results, that targeted expectations will be metor that the issuer will be able to implement its investment strategy and investment approach or achieve its investment objectives. A specific investor’s actual performance may be materially different from such illustrative data depending on numerous factors. No representations or warranties whatsoever are made by Driftwood or its affiliates and/orsubsidiaries as to the future profitability of an investment, investment vehicle or the results of making an investment.

Future Room Night Demand Driven by the Brightline High-Speed Rail

• Connecting South Florida to Tampa through Cocoa Beach and Orlando.

(1). The total number of overnight visitors staying in paid accommodations to Florida’s Space Coast via the Brightline train per year are projected to be in 1, 5, and 10-year estimates based on 10% Brightline ridership projection of passengers who may disembark at the Space Coast, whether for overnight stays or day visits.

Portfolio may represent 11%+ of market (1)

• Anticipated operational cost savings and synergies with two sets of adjacent properties

• Expected pricing power, leverage and economies of scale

(1). As completed and based on November 2023 market inventory.

Potentially High Barriers to Entry Market

• Due to zoning, entitlements, community “buy-in” and other development complexities, assemblage of a site for a large-scale beach resort in Florida is extremely difficult.

• Many existing assets are regarded as “trophy” assets and highly sought after, which leads to future buyers willing to accept lower cap rates.

• The state of Florida is in the process of passing a house bill to cap all commercial development in the South beaches of Melbourne Beach. If this is to pass, it would further augment the beachfront barriers to entry for all new hotels in this area.

• We believe that environmental, density, and height restrictions along with a lack of available acreage to build a resort mitigates the risk of future developments.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

1550 N. Atlantic Ave, Cocoa Beach, FL 32931

Highlights

• $10M (~$34K/ key) spent on transformational renovation that positions the Hilton as the current market leader

• Six food & beverage outlets covering all day parts

• Well utilized, versatile function and event space

Hilton Cocoa Beach - Competitive Set

Hilton Cocoa Beach Oceanfront

Cocoa Beach — 502 Keys

1 Radisson Resort @ The Port

Cape Canaveral — 177 Keys

2 Beachside Hotel and Suites Cocoa Beach

Cocoa Beach — 133 Keys

3 Hilton Garden Inn Cocoa Beach

Cocoa Beach — 274 Keys

5 Courtyard Cocoa Beach Cape Canaveral

Cocoa Beach — 177 Keys

The competitive set above shows properties we believe are comparable based on similar amenities, key count, and location, as well as the hotel brand and class. This is not an all-encompassing list of properties in the area.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

2605 N. Hwy A1A, Melbourne, FL 32903

Highlights

• Largest beachfront group house in Melbourne

• $18.5M ($64K/key) renovation of guest rooms and public spaces 2018-2019

• Outside deck replacement in 2023

• Operational synergies expected with adjacent element by Westin Melbourne opening in 2024

Crowne Plaza Melbourne - Competitive Set

Crowne Plaza Melbourne Oceanfront

Melbourne Beach — 502 Keys

1 Hilton Melbourne

Melbourne — 446 Keys

2 Hilton Melbourne Beach Oceanfront

Melbourne — 133 Keys

3 Courtyard Melbourne West

West Melbourne — 274 Keys

4 DoubleTree Suites by Hilton Melbourne Beach Oceanfront

Melbourne — 177 Keys

5 Radisson Suite Hotel Oceanfront

Melbourne — 177 Keys

The competitive set above shows properties we believe are comparable based on similar amenities, key count, and location, as well as the hotel brand and class. This is not an all-encompassing list of properties in the area.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

2655 N. Hwy A1A, Melbourne, FL 32903

Highlights

• Newest hotel product on Melbourne Beach by more than a decade and the first beachfront element by Westin

• Premium amenities that exceed brand standards with an elevated pool deck overlooking the Atlantic Ocean

• Lack of extended stay and Marriott product in the vicinity is expected to capture significant market share

• Only Marriott-branded beachfront extended stay hotel in 160 miles of oceanfront, from Daytona Beach to Juno Beach

• Opportunity for operational cost savings and synergies with adjacent Crowne Plaza Melbourne

(1). The target returns presented on this slide are hypothetical in nature, are based on a number of assumptions, do not reflect actual investment results, and are not any guarantee of future results. In addition, a specific investor’s actual performance may be materially different from such illustrative data depending on numerous factors. There are certain limitations inherent in hypothetical results like those portrayed on this slide. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they do not reflect trading in actual client accounts and do not reflect the impact that material economic and market factors may have had on the decision-making associated with actually managing client funds. Unlike an actual performance record, hypothetical performance results do not represent actual trading. The information contained on this slide is intended only for qualified investors who are knowledgeable about investments and the associated risks. No representations or warranties whatsoever are made by Driftwood Capital, LLC or any other person or entity as to the future profitability of investment outcomes or the results of making an investment. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. Potential investors should conduct their own due diligence and consult financial advisors before investing. Past performance is not a guarantee of future results.

element by Westin Melbourne - Competitive Set

Element Melbourne Oceanfront

Melbourne Beach — 502 Keys

1 Hilton Melbourne Rialto Place

Melbourne — 446 Keys

2 DoubleTree Suites Melbourne Beach Oceanfront

Melbourne — 133 Keys

3 Radisson Suite Hotel Oceanfront

Melbourne — 274 Keys

4 Hilton Melbourne Beach Oceanfront

Melbourne — 177 Keys

5 Courtyard Cocoa Beach Cape Canaveral

Cocoa Beach — 156 Keys

The competitive set above shows properties we believe are comparable based on similar amenities, key count, and location, as well as the hotel brand and class. This is not an all-encompassing list of properties in the area.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

1300 N. Atlantic Ave, Cocoa Beach, FL 32931

Highlights

• Expected to be a transformative development, positioned in one of the top five fastest growing MSAs in the US

• State-of-the-art resort and conference facility designed by world-renowned architect, Gensler

• Marriott distribution gap - no full-service Marriott beachfront properties for 160 miles, from Daytona Beach to Hutchinson Island

• Unprecedented $30M grant from Brevard County, $1M per year for 30 years, to promote the resort.

• $25M Marriott Performance Guaranty to the Westin's construction lender.

• Updated construction costs of market-tested GMP (Gross Maximum Price) in September 2023.

(1). The target returns presented on this slide are hypothetical in nature, are based on a number of assumptions, do not reflect actual investment results, and are not any guarantee of future results. In addition, a specific investor’s actual performance may be materially different from such illustrative data depending on numerous factors. There are certain limitations inherent in hypothetical results like those portrayed on this slide. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they do not reflect trading in actual client accounts and do not reflect the impact that material economic and market factors may have had on the decision-making associated with actually managing client funds. Unlike an actual performance record, hypothetical performance results do not represent actual trading. The information contained on this slide is intended only for qualified investors who are knowledgeable about investments and the associated risks. No representations or warranties whatsoever are made by Driftwood Capital, LLC or any other person or entity as to the future profitability of investment outcomes or the results of making an investment. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. Potential investors should conduct their own due diligence and consult financial advisors before investing. Past performance is not a guarantee of future results.

Westin Cocoa Beach Resort & Spa - Competitive Set

Westin Cocoa Beach Resort

Cocoa Beach — 502 Keys

1 The Diplomat Beach Resort

Hollywood — 446 Keys

2 Margaritaville Hollywood Beach Resort

Hollywood — 133 Keys

3 Westin Fort Lauderdale Beach Resort

Fort Lauderdale — 274 Keys

4 Marriott Harbor Beach Resort & Spa

Fort Lauderdale — 177 Keys

5 The Boca Raton

Boca Raton — 133 Keys

6 The Breakers

Palm Beach — 274 Keys

7 JW Marriott Marco Island Beach Resort

Marco Island — 177 Keys

Absence of Full-Service Beachfront Resorts in Marriott Bonvoy’s Reservation System

With the scarcity of convention hotels along Florida’s coast, and notably, the absence of any full-service Marriott beachfront properties from Daytona Beach to Hutchinson Island—a span of around 160 miles— the Resort is projected to be in strategic location that may leverage Marriott’s reservation network of more than 141M affiliated members worldwide. (1)

Westin Cocoa Beach Resort

Cocoa Beach — 502 Keys

1 Ritz-Carlton

Amelia Island — 446 Keys

2 Delta

Daytona Beach — 133 Keys

3 Marriott

Hutchinson Island — 274 Keys

4 Marriott

Palm Beach/Singer Island — 177 Keys

(1). Marriott.com

Existing Demand for Westin Cocoa Beach Resort & Spa Development

Sponsor believes that due to the absence of upper upscale hotels in the Space Coast, there is a leakage of at least 3.2M room nights to the Orlando market, and essentially zero capture of demand from the 32.9M (3) room nights generated by the Orlando market.

This potentially presents an interesting opportunity, considering the size and scope of the Resort which which may be able to capture a portion of the immense demand that currently exists.

1. Projected Internally (Consists of Cocoa Beach Visitors, Rocket Launches, Kennedy Space Center, MLB Airport, Port Canaveral and Brevard Zoo)

2. 2022 STR Historical Data

3. 2022 STR Historical Data

Third-Party Valuation by HVS (1)

• The report indicates that the property’s value upon opening in 2026 is $464 million, which is equivalent to ~$924K per key.

• This appraisal underscores the value created by the development, showing a $52M increase when compared to the expected development costs.

(1). 2023 appraisal report for the to-be-developed Westin Cocoa Beach Resort and Spa by HVS, a third-party hotel valuation.

By bringing on the project management team early, we anticipate multiple benefits to the project

• Efficiency of time, the buyout process can take 2-3 months after signing, this approach allows us to hit the ground running on site.

• Potential mitigated risk on long lead construction material orders. We may be able to start shop drawings and order materials earlier using this approach.

• Potential mitigated risk, before we start, we may have 90% of the subcontracts committed reducing the risk of cost fluctuations.

• Driftwood may keep any buyout savings, typically buyout saving first go towards the GC contingency. This approach means it may go towards owner contingency.

• Ability to bring in key subcontractors early to opine on Value Engineering options.

We are excited to start this project off proactively with KAST Construction - a strong well established partner as our general contractor.

Pre-Development Team

Project Development Team

Why we like it

Portfolio Projected Cash Flow Timeline

Cash flow available for preferred interest and other fund expenses

Projected Cash Flow

Luxury Hotels Sales Comparables

Upper Upscale Hotels Sales Comparables

Anticipated Consolidated NOI

All information set forth on this page is subject to change. Nothing herein should form the basis for any investment decision. No assurance can be given that actual returns will meet or exceed the targeted returns (including that they may be materially lower than the targeted returns) or that actual results will otherwise meet expectations or objectives. The target returns presented on this slide are hypothetical in nature, are based on a number of assumptions, do not reflect actual investment results, and are not any guarantee of future results. In addition, a specific investor’s actual performance may be materially different from such illustrative data depending on numerous factors. There are certain limitations inherent in hypothetical results like those portrayed on this slide. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they do not reflect trading in actual client accounts and do not reflect the impact that material economic and market factors may have had on the decision-making associated with actually managing client funds. Unlike an actual performance record, hypothetical performance results do not represent actual trading. The information contained on this slide is intended only for qualified investors who are knowledgeable about investments and the associated risks. No representations or warranties whatsoever are made by Driftwood Capital, LLC or any other person or entity as to the future profitability of investment outcomes or the results of making an investment. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. Potential investors should conduct their own due diligence and consult financial advisors before investing. Past performance is not a guarantee of future results.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

Westin Cocoa Beach

element by Westin Melbourne

Hilton Cocoa Beach

Melbourne Crowne Plaza

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

An investment in the Interests described in this Summary involves certain risks. You should carefully consider all of the following risk factors, in addition to all of the information contained in this Summary and the PPM prior to investing in the Interests. The risk factors described below are not the only ones facing the Fund and the Portfolio Investments. Additional risk factors not presently known or that are currently deemed immaterial may also impair the Fund’s business operations. The Fund’s business, financial condition, results of operations or prospects could be materially and adversely affected by any of these risks. If any of the following risks occur, the Fund’s business, financial condition or results of operations could be seriously harmed. In such case, an investor could lose all or part of its investment.

Risk Associated with the Hospitality and Tourism Industry

• adverse changes in economic conditions or in the hospitality and tourism industry

• the seasonal nature of the hospitality and tourism industries

• significant competition for guests, employees and service providers

• changes in consumer preferences

• changes in operating costs

• increases in costs due to inflation that may not be fully offset by price and fee increases

• changes in tax and governmental regulations

• the costs associated with complying with applicable laws and regulations

General Real Estate Investment Risks

• changes in local and general economic conditions

• changes in the financial condition of buyers and sellers of property

• changes in the availability of debt financing and refinancing

• changes in interest rates, real estate taxes and operating and other expenses

• changes in environmental, zoning and other applicable laws and regulations

• changes in fiscal policies

• changes in utility rates

• development and improvement of competitive properties

Lack of Liquidity in Investments

• Hotel and other real estate investments are generally illiquid. Additionally, the securities held by the Fund in connection with its Preferred Equity Investments may be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. Accordingly, the Fund will have a limited ability to vary its portfolio of investments in response to changes in economic and other conditions. In addition, the Fund may not be able to timely dispose of investments when advantageous or necessary (or complete the disposition of investments under contract to be sold). Any sale of investments the Fund makes may result in the Fund recognizing a loss on the sale.

The list of Risk Factors above is non-exhaustive and any potential investor should review the “Risk Factors” section of the PPM for additional risks and a discussion of all risks identified therein.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.

These securities have not been registered with the Securities and Exchange Commission (the "“SEC” or the “Commission”), or with any state securities commission or any other regulatory authority. The securities are being offered in reliance upon an exemption from the registration requirement of federal and state securities laws and cannot be resold unless the securities are subsequently registered under such laws or unless an exemption from registration is available. Neither the SEC nor any other agency has passed on, recommended or endorsed the merits of this offering (this “Offering”) or the accuracy or adequacy of this Summary. Any representation to the contrary is unlawful.

These securities are offered through Carofin, LLC, Member of FINRA/SIPC. Carolina Financial Securities is an affiliate of Carofin and both Broker-Dealers are affiliates of Carolina Financial Group, LLC. Documents have been prepared by Carolina Financial Securities and have been reviewed and approved by the management of the Company. The information contained herein has not been independently verified and is dependent on information provided by the Company to Carolina Financial Securities, LLC.

Our firms seek to present vital capital with meaningful investment opportunities through the fundamental analysis of the businesses we seek to finance. Such analysis is usually conducted through a First Principles approach.

When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide you. Here are some examples to help you understand what this means:

Proprietary Products: Our firms will often present investments that are only available through them, which may result in a higher placement fee. The Firms will receive the placement fee regardless of your investment performing as expected.

Difference in Fees: Our Firms will receive different fees based on whether any prospective investor purchases Common Interests or Preferred Interests. As such, any prospective investor shall carefully review the terms of these Interests when making an investment decision.

Our firms offer brokerage services to accredited investors, exclusively through the sale of private placements. the offerings we bring to market are carefully selected, and any recommendation you may receive from us will be limited to these offerings. Therefore, we may be unable to adequately compare the risks and benefits of the offerings we bring to offerings presented by other financial professionals. While our firms will often present new investments and discuss such an investment’s risks and benefits with you, the ultimate authority to make such investment rests solely with you.

Our firms do not hold any investor cash or securities, and securities offered by us often have no easily assessable market value, so our firms will not monitor the market value of your investment on an ongoing basis. The investments we present often require a minimum investment of $5,000 for equity offerings and $10,000 for debt offerings. Fees and costs may reduce any amount of money you make on your investments over time. Our firms are mostly compensated through placement fees, which are payable by the issuer, meaning that the firms will be compensated by receiving a percentage of the funds raised in an offering, regardless of the investment performing as expected. Such placement fee is usually between 3% and 7%. Given that different investments have different placement fees, we may often have a conflict of interest when presenting these investments to you. The Firms’ bankers are often compensated by receiving a percentage of the placement fee, and may have their own conflict of interest when presenting you with offerings they structure.

Private placements are high risk and illiquid investments. As with other investments, you can lose some or all of your investment. Nothing in this document should be interpreted to state or imply that past results indicate future performance, nor should it be interpreted that FINRA, the SEC or any other securities regulator approves of any of these securities. Additionally, there are no warranties expressed or implied as to accuracy, completeness, or results obtained from any information provided in this document. Investing in private securities transactions bears risk, in part due to the following factors: there is no secondary market for the securities; there is credit risk; where there is collateral as security for the investment, its value may be imped if it is sold. Please see the Private Placement Memorandum (PPM), and the complete list of contents of this Offering Package for a more detailed explanation of the securities Summary of Terms, Investor Suitability Standards, Confidentiality, Securities Matters and Risk Factors.

THE DESCRIPTION OF THE PROJECT HEREIN IS SUMMARY IN NATURE AND NO POTENTIAL INVESTOR SHALL MAKE AN INVESTMENT DECISION WITHOUT REVIEWING IN FULL THE PRIVATE PLACEMENT MEMORANDUM DESCRIBING THE TERMS AND RISKS IN MORE DETAIL. THE INFORMATION HEREIN IS FOR AUTHORIZED PARTIES ONLY AND NO PORTION OF THIS INFORMATION MAY BE REPRODUCED OR DISTRIBUTED IN ANY FORMAT NOR REFERENCED OR QUOTED WITHOUT THE EXPRESS WRITTEN APPROVAL OF DRIFTWOOD CAPITAL, LLC.