PRESTIGE HOSPITALITY OPPORTUNITY FUND I. Simple, Diverse, Professional

Transcription

1 PRESTIGE HOSPITALITY OPPORTUNITY FUND I Simple, Diverse, Professional

2 OFFERING HIGHLIGHTS: > Internationally branded hotels > $10,000 minimum investment > Quarterly distributions from operations > Growth in equity realized upon sale of hotels > Return of contributed capital prior to profit sharing Prestige Hospitality Opportunity Fund I OUR PROCESS Investors Returns > Access to cumulative 8% hurdle rate One Fund Many Hotels The primary function of the Prestige Hospitality Opportunity Fund I is to provide investors with stable distributions from operating income and growth in equity by purchasing, professionally managing and then selling internationally branded North American hotels. The Fund intends to buy, improve, and operate 3 5 hotels with internationally recognized brands such as Marriott, Sheraton/Starwood, Holiday Inn, and Hilton; with an emphasis on Canadian hotels located in major urban BUY branded hotels or hotels which can be branded. IMPROVE the hotels through better management, more efficient operations, and renovations. OPERATE using professional managers to maximize guest experience and increase revenue. SELL the hotels to maximize returns to the investors. Net proceeds from operations will be distributed quarterly while proceeds from the equity growth will be realized from the sale of the hotels. The Fund Management will continually monitor the hospitality real estate market and the capital markets with a view towards maximizing the disposition value of its hotel properties. While the fund intends to hold the hotels for 3 5 years, Management will be opportunistic and all of the hotels will be evaluated on an annual basis for disposition. Upon the sale of a hotel the profits and the invested capital will be distributed to the investors. > 70% 90% profit sharing > RRSP, TFSA, LIRA, RESP eligible > Early investor discount > Redemption clause of $75,000 per quarter > Intended 3 5 year hold > Multiple hotels in the fund > Professionally managed hotels centres. Prestige Hospitality Group will lever its relationships with real estate brokers, hotel property owners and industry participants to identify hotels or potential acquisition. Management intends to make the improvements required to increase revenues, operating income and overall asset value. World-Class hospitality for your investment portfolio.

3 THE KEYS TO SUCCESSFUL FUND MANAGEMENT: > Abundant deal flow due to current market conditions > In-depth industry knowledge > Established brand management expertise An Industry with Opportunity 4 out of 5 of family owned business have no formal succession plans (1) creating numerous buying opportunities. The hospitality industry is changing and changing quickly. Many long-time hotel owners want to retire and enjoy the fruits of their labour but are struggling to find a workable exit strategy few have plans for succession and feel that they are trapped. Our Fund can help. According to Benjamin Tal of CIBC, 30% of current business owners will exit ownership or transfer control of their businesses within five years. (1) The high cost of buying a hotel means there are few buyers, creating a lopsided market where sellers outnumber the buyers. Prestige Hospitality Opportunity Fund I was designed to make the most of this opportunity by seeking owners who are willing to sell their hotel outright or partner with the Fund by selling a portion of their business. Benefits of Branding Hotels in the Fund will be internationally branded hotels. International brands add value to individual hotel properties due to global distribution systems, loyalty programs, standardized quality and name recognition; resulting in higher operating volumes. Internationally branded hotels are also less volatile in terms of Net Operating Income (NOI), Occupancy, and Average Daily Rate (ADR) (2) all key metrics in determining the performance and profitability of a hotel. (1) Inadequate Business Succession Planning A Growing Macroeconomic Risk by Benjamin Tal CIBC Economics November 13, 2012 (2) Do Brands Matter International Journal of Hospitality Management John W. O Neill > Rigorous acquisition analysis process > Ability to identify successful locations > Operational turn around expertise Internationally branded hotels benefit from global distribution systems, loyalty programs, and name recognition.

4 OPERATIONAL ACUMEN > Extensive international brand management experience > Currently operate 11 branded locations worth over $330M > Active management participation > Currently manage over 1000 employees Excellence in Operation The Fund is spearheaded by 4 Principals who are specialists in international brand management. The Principals excel in purchasing struggling businesses and turning them into thriving enterprises. Collectively, they currently oversee 11 separate locations BRANDS CURRENTLY UNDER MANAGEMENT > Toyota > Lexus > Scion Previous Investment Opportunities The Calgary Airport Hotels and Conference Centre is a three phase hospitality development located immediately north of the Calgary International Airport. The project, when completed, will feature 3 Hilton branded hotels (Hampton Inn, Homewood Suites and Hilton Hotel) as well as a state of the art 30,000 ft 2 convention centre. NEWLY OPENED: HAMPTON INN > Opened December 2013 > 135 rooms > Pool and fitness facility > 5 minutes to the Calgary Airport > 24 hour shuttle encompassing 7 different international brands with an asset value over $330 Million. Over the course of the last 20 years, they have operated 23 branded locations worth a total of $560 Million. The Principals currently employ over 1000 people. They know success hinges on engaging the best talent, providing accurate direction, and supplying the right > Hampton Inn by Hilton > Homewood Suites by Hilton To date, the Prestige Hospitality Group has successfully developed and is now operating the 135 room Hampton Inn by Hilton Calgary Airport North and the 122 room Homewood Suites by Hilton Calgary Airport. These hotels complete the first 2 phases of the proposed 3 phase project. HOMEWOOD SUITES > Opened April 2014 > 122 suites > Luxury extended stay > Pool and fitness facility > 5 minutes to the Calgary Airport > 24 hour shuttle resources. As active participants in all aspects of the For this project, management has entered into agree- business, the Principals initiative, knowledge and ments with Hilton Worldwide to have these hotels experience all contribute to the success of our professionally managed to their world-class standards. Featuring franchised locations of: opportunities to the benefit of our investors. These agreements have provided Prestige Hospitality Group with a platform upon which they have built a Guest loyalty program members can account for up to 60% of hotel revenue. world class operational facility; creating unparalleled hospitality experiences for travelers. In turn generating solid performance for their investors.

5 ANNOUNCING Courtyard by Marriott Waterloo, St. Jacobs The Courtyard Waterloo St. Jacobs, currently under ANNOUNCING Marriott Development Deal of the Year, 2015 The TownePlace Suites by Marriott, London contract, features a total of 118 well-appointed TownePlace Suites by Marriott London is currently guestrooms, 1300 square feet of flexible meeting space across 4 rooms, ample on-site parking, an oversized fitness centre, and The Bistro for breakfast and dinner. COURTYARD BY MARRIOTT WATERLOO, ST. JACOBS under contract. It offers an extended-stay product featuring 126 guest suites with a fully equipped kitchen, separate living and sleeping areas, 980 square feet of flexible meeting space across 2 rooms, ample on-site THE TOWNEPLACE SUITES BY MARRIOTT LONDON The Hotel has recently undergone a $3.9 million renovation and conversion to the Courtyard by Marriott. The guestrooms average 330 square feet combining comfort and functionality with a large desk, ergonomic chair sofa bed, marble bathroom, mini refrigerator, microwave and 32-inch LCD televisions. Larger studio suites are equipped with a modern fireplace and whirlpool tubs, two-room suites are also available. > Recently renovated > 118 guestrooms including suites and 2 bedroom options > Bistro for breakfast and dinner > Oversized fitness area > Business centre > Conference space > Excellent location with parking, and fitness centre. Guests have access to a complimentary buffet breakfast, convenience store, complimentary wireless internet, flat screen televisions with cable, onsite laundry service and outdoor patio space with a BBQ grill. The $6.5 million renovation, completed in spring 2015, resulted in a total transformation of all guest facing spaces such as guestrooms, corridors, lobby, meeting spaces and kitchen areas. > Recently renovated > 126 guest suites with fully equipped kitchens > Fitness area > Business centre > Conference space > Excellent location with easy access to major The Location Given its prime location, superior branding, and close proximity to many attractions including Canada s Silicon Valley the hotel has the ability to grow market share and increase occupancy. easy access to major highways, rail and airports > Located in a vibrant region with strong growth > Plenty of on-site parking The Location Given its prime location, superior branding, and close proximity to many attractions, businesses and universities, the hotel is poised to grow market share and increase occupancy. highways, rail and airports > Located in a vibrant region with strong growth > Plenty of on-site parking

6 Prestige Hospitality Opportunity Fund I OFFERING HIGHLIGHTS: Taking advantage of industry opportunities created by succession planning issues and large barriers to entry. > Internationally branded hotels > $10,000 minimum investment Simple The premise of the Fund is simply to buy operating > Quarterly distributions from operations hotels and make them perform better. Structural enhancements and improvements in operations will > Growth in equity realized upon sale of hotels cause the value of the hotels to increase. > Return of contributed capital prior to profit sharing Who We Are Prestige Hospitality Group is creating a portfolio of hospitality hotels through a combination of development and acquisition strategies. We have structured our new Prestige Hospitality Opportunity Fund I to give all WE BELIEVE IN... > Principals providing up front capital as equity > Active management participation Diverse The goal is to spread the financial risk by buying multiple hotels. This diversification is designed to reduce the volatility of returns to the investors. Professional Our internal systems are specifically designed to utilise industry best practices and ensure the best talent is > Access to cumulative 8% hurdle rate > 70% 90% profit sharing > RRSP, TFSA, LIRA, RESP eligible > Early investor discount investors access to the hospitality industry. This new access can help provide diversification to existing investment portfolios. > Investor/Principal alignment > Investors stand shoulder to shoulder with the Principals engaged during the acquisition phase, through the daily operational management, to the sale of the property. > Redemption clause of $75,000 per quarter > Intended 3 5 year hold Our investment opportunities are built on sound business principles and are structured for optimal investor alignment. We do not charge annual management fees on > Long standing relationships > Open communication Please contact one of our Exempt Market Dealer (EMD) partners to learn more about the details of our offering. For EMD partner information visit > Multiple hotels in the fund > Professionally managed hotels investor funds* or recoup initial invested capital from investors funds. When you invest with Prestige, you stand shoulder to shoulder with the Principals who invest their own money into all of their opportunities. Leaders in Hospitality Investing *A management fee of 2% of gross revenue from each hotel acquired by the Fund will be paid to a party related to the Principals. This summary does not constitute an offering of securities and cannot be relied upon for making your investment decision. It is qualified in its entirety by the offering documents of the Issuer. Please read the Issuer's offering documents thoroughly before investing. Descriptions of the Issuer or the Offering in this summary may vary from similar descriptions presented in the Issuers offering documents and, where this summary differs, the Issuer's offering documents prevail. All terms and phrases in this document which are not otherwise defined herein have the meanings given to them in the Issuer's offering documents.

7 PRESTIGE CAPITAL INC. p: , Ave NE Calgary, AB T3J 0R3 World-class hospitality for your investment portfolio V3