PUBLIC NOTICE OF CHAPTER 11 SALE: S&G Hospitality, INC

PUBLIC NOTICE OF CHAPTER 11 BIDDING PROCEDURES FOR EQUITY IN S&G HOSPITALITY, INC.

BID PROCEDURES

Set forth below are the bid procedures (the “Bid Procedures”) to be employed with respect to the “New Equity Infusion” proposed to be made into S&G Hospitality, Inc. (“S&G”) under the proposed first amended chapter 11 plan (the “Plan”) for it and its debtor subsidiaries Buckeye Lodging LLC, Lancaster Hospitality, LLC, and Sunburst Hotels, LLC. Buckeye Lodging, LLC owns the Red Roof Plus located at 5125 Post Road, Dublin, Ohio 43017. Lancaster Hospitality, LLC owns the Hampton Inn Lancaster located at 2041 Schorrway Drive NW, Lancaster, Ohio 43130. Sunburst Hotels, LLC owns the Quality Inn & Suites Polaris North located at 7500 Vantage Drive, Columbus, Ohio 43235. Please take notice that under the Plan, Buckeye Lodging LLC, Lancaster Hospitality, LLC, and Sunburst Hotels, LLC will be assuming certain indebtedness, including an $11 million amended and restated promissory note with their existing lender, obligations under their franchise agreements (including to make renovations and capital improvements required by the franchisors), and other obligations as spelled out in the Plan.

Any person or entity wishing to submit higher and better bids for the New Equity Infusion must submit to counsel to S&G on or before May 2, 2025 at 4:00 p.m. the following:

(1) a marked copy of the Letter of Intent with SDGD Enterprises, LLC (the “LOI”) showing any changes being proposed as part of the bid to the LOI;

(2) a marked copy of the Plan showing any changes being proposed to the Plan as part of the Bid;

(3) information demonstrating the ability to close on the transaction proposed by the Bid;

(4) information demonstrating that the bidder is likely to be approved as the assignee of the Debtors’ franchise agreements by the respective franchisors; and

(5) a good faith deposit of $50,000.

All interested parties are encouraged to review the United States Bankruptcy Court for the Southern District of Ohio’s March 27, 2025 order for additional details regarding the Bid Procedures and to review the Plan (including all of its exhibits and any future amendments to the Plan) for more detail regarding the details of the proposed transaction.

Auction

If the Debtors determine based on a review of all bids received that there are one or more Qualified Bids for the right to make an equity infusion under the Plan, an auction (the “Auction”) shall be held on May 7, 2025 at 10:00 am Eastern Daylight Savings Time at the offices of Carpenter Lipps LLP, 280 N. High Street, Suite 1300, Columbus, OH 43215 or at such later time or such other place as the Debtors shall designate and notify all persons or entities who have submitted such a Qualified Bid.

Court Approval

Please take notice that the winning bid at the Auction will still need to be approved by the Bankruptcy Court and the proposed Plan be confirmed for the transaction to close.

Further Information:

Copies of the Order approving the bidding procedures, the Plan, and associated documents may be obtained by visiting https://innvitehospitality.com/ and clicking on the link at the top labeled “S&G Hospitality Chapter 11.”

For additional information contact regarding S&G’s bankruptcy case or the Bid Procedures, please contact counsel to the Debtors: David Beck, [email protected], (614) 365-4142.