MYX Hotels Presentation

C o m p le tio n S ta tu s


Short-Term Strategy Feasibility of the

Concept

BEP by End of FY 3

Long-Term Strategy Sustainable Value to

Shareholders

Patent the Brand

Expansion of the Concept through Sale


Seed Capital Founders

Crowd Funding

Private Investors

REIT


Number of Rooms 304Development Cost /Room 180,000 Total Development Cost 54,720,000

Loan to Cost Ratio 60%Loan Financing 32,832,000 Equity Financing 21,888,000 Interest Rate 6%Interest Payment 131,328

Required Equity Return% 20%Required Cash to Owners 4,377,600

Operating ExpensesFixed Costs 4,901,877 Interest Expense 131,328 Equity Requirements 4,377,600 Variable Costs 40% Breakeven Revenue 15,684,675

Required Total Revenue 15,684,675 Assumed Rooms Revenue% 80%Required Rooms Revenue 12,547,740 Required RevPAR $113.08

Required Occ% 75% 85%Required ADR $150.78 $133.04 RevPAR $113.08 $113.08

Non Operating Fixed ExpensesProperty Taxes 23,600 Insurance 353,460 Incentive Fees - Total Non Operating Expenses 377,060

Required GOP 508,388 Required GOPPAR $4.58

Breakeven Analysis

Number of Rooms 304Development Cost /Room 180,000 Total Development Cost 54,720,000

Loan to Cost Ratio 60%Loan Financing 32,832,000 Equity Financing 21,888,000 Interest Rate 6%Interest Payment 131,328

Required Equity Return% 20%Required Cash to Owners 4,377,600

Operating ExpensesFixed Costs 4,901,877 Interest Expense 131,328 Equity Requirements 4,377,600 Variable Costs 40% Breakeven Revenue 15,684,675

Required Total Revenue 15,684,675 Assumed Rooms Revenue% 80%Required Rooms Revenue 12,547,740 Required RevPAR $113.08

Required Occ% 75% 85%Required ADR $150.78 $133.04 RevPAR $113.08 $113.08

Non Operating Fixed ExpensesProperty Taxes 23,600 Insurance 353,460 Incentive Fees - Total Non Operating Expenses 377,060

Required GOP 508,388 Required GOPPAR $4.58


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11Beginning Balance - 36,225,072 17,730,144 (764,784) 10,486,601 21,737,985 24,077,910 28,417,834 31,757,758 31,009,143 32,260,527

Sources Construction Loan 32,832,000 - - - - - - - - - - Other Debt - - - - - - - - - - - Equity 21,888,000 - - - - - - - - - - Room Revenue - - - 15,000,000 15,000,000 11,088,540 11,088,540 11,088,540 10,000,000 9,000,000 9,000,000 Other Revenue - - - 8,000,000 8,000,000 5,000,000 5,000,000 5,000,000 4,000,000 4,000,000 3,000,000 Total Sources 54,720,000 - - 23,000,000 23,000,000 16,088,540 16,088,540 16,088,540 14,000,000 13,000,000 12,000,000

Uses Fixed Costs - - - 4,901,877 4,901,877 4,901,877 4,901,877 4,901,877 4,901,877 4,901,877 4,901,877 Interest Expense 131,328 131,328 131,328 131,328 131,328 131,328 131,328 131,328 131,328 131,328 131,328 Variable Costs - - - 1,960,751 1,960,751 1,960,751 1,960,751 1,960,751 1,960,751 1,960,751 1,960,751 Equity Distributions - - - 4,377,600 4,377,600 4,377,600 4,377,600 4,377,600 4,377,600 4,377,600 4,377,600 Property Taxes 23,600 23,600 23,600 23,600 23,600 23,600 23,600 23,600 23,600 23,600 23,600 Insurance 100,000 100,000 100,000 353,460 353,460 353,460 353,460 353,460 353,460 353,460 353,460 Construction Costs 18,240,000 18,240,000 18,240,000 - - 2,000,000 - 1,000,000 3,000,000 - - Total Uses 18,494,928 18,494,928 18,494,928 11,748,616 11,748,616 13,748,616 11,748,616 12,748,616 14,748,616 11,748,616 11,748,616

Ending Balance 36,225,072 17,730,144 (764,784) 10,486,601 21,737,985 24,077,910 28,417,834 31,757,758 31,009,143 32,260,527 32,511,912

Cash Flow 36,225,072 17,730,144 (764,784) 10,486,601 21,737,985 24,077,910 28,417,834 31,757,758 31,009,143 32,260,527 32,511,912

36,225,072

17,730,144

(764,784)

10,486,601

21,737,985 24,077,910

28,417,834

31,757,758 31,009,143 32,260,527 32,511,912

(5,000,000)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

1 2 3 4 5 6 7 8 9 10 11

CASH

FLOW

YEAR

Cash Flow Forecast

Innovative Hotel Application

Mobile Specific Rate Plans

Integrated with Point-of-Sale and Property Management Systems

No Long Lines at Check-in/Check-out



Shifting Burden of Energy Use to the Guest

Daily Tips Via MYX App

Monitors Energy & Water Consumption


Daylighting

LEED Platinum

Costs Associated 6% Over Standard

Recycled Materials, Light Rail, Bicycles and More.


Downtown Phoenix

Many Nearby Attractions

Sky Harbor Airport is Five Miles Away

Light Rail Station

UBER & Taxi Service


Culture Control Given to Guests

Ratings AAA Four Diamond Forbes Four Star

Assurance Inspections by

LRA by Deloitte


304 Guest Rooms

10,000 Square Feet of Meeting Space

Standard Room Amenities

Hotel Amenities

Club MYX


Primary Outlet Progressive Italian with Sonoran

Desert Flare

Lobby Lounge Eco-Distillery Local Artist Venue

Pool Bar & Grill Spanish & Italian tapas Outdoor Nightclub

Juice Bar

In-Room Dining


State-of-the-Art Gym Facility with Connectivity to Major Apps

Zwift Corner

250 USD Monthly Membership

Community Engagement and Multiplier Effect

Positive Word-of-Mouth


Renaissance – ADR $269, 445 Rooms

Hotel Palomar – ADR $292, 242 Rooms

W Scottsdale – ADR $273, 230 Rooms

Hotel Valley Ho – ADR $278, 194 Rooms


Compliance with Phoenix Fire Code

Relationship with Phoenix FD & PD

Proximity to Major Hospital and Trauma Center

“Unqualified Belief in the Unified Chain of Command”


Phase 1

Authoritative - Coaching Style

Moment of Truth

Phase 2

Affiliative – Democratic

True Staff Personality


Projected Labor Hours: 8,886

Projected Hourly Wages: $57,328

Projected Management Salary: $84,642

Bi-Weekly Payroll

MYX Hotels Presentation

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