Art Factory Hotels Proposal 1 Art Factory Hotels Proposal Table of Content • Title page - pg 1 • Table of content - pg 2 • Overview - pg 3 • External Rendering- pg 4 • Internal Rendering - pg 5 • • Room Internal Rendering - pg 12 • Restaurant Elements - pg 13 • Amenities Program - pg 14 • Capital Cities Five year Pro Forma - pg 15-17 Lobby Floor plan - pg 7 • Global Cities Five year Pro Forma - pg 18-19 • Lobby Graphics - pg 8 • Global List of 30 Cities for Art Factory Hotels - pg 20 • Typical Floor plan - pg 9 • Global map of 30 Cities for Art Factory Hotels - pg 21 • Room Plan Base Floor- pg10 • Team Members - pg 22- 24 • Room Plan Mezzanine - pg 11 • Strategic Partners - pg 25-34 2 Art Factory Hotels Proposal Overview A new concept in urban hotels for edgy people who do not want to stay at The Plaza. Art Factory Hotels will present an immediately different context from the standard bourgeois model. All living spaces are set up as artist's lofts with mezzanine sleeping areas, large open areas and even a small high end kitchen. Combined with furnishing and equipment typical for loft spaces, and a deconstructive look for walls, windows and ceiling, the Art Factory Hotels room will be like staying in an artist's loft and not your parent's hotel. Art Factory Hotels will be located in emerging, cutting edge areas of important cities. Public areas will reinforce the industrial look and incorporate a hot restaurant and exciting bar. The exterior will have the look of a repurposed factory building. All great hotel brands are performance art. They provide not just a bed but an opportunity to participate in a bit of a fantasy. The Art Factory Hotels product will be aimed at the top of the market and will have room rates competitive with the best hotels in town. The Art Factory Hotels demographic group being targeted is between 21 to 45. The Focus will be on guests who are able to afford the experience they want and creatively oriented. Despite the artist loft look, the hotel will offer 5 star amenities including 24 hour room service, state of the art business center, gym 3 and extraordinary concierge services. Art Factory Hotels Proposal External Rendering 4 Art Factory Hotels Proposal Internal Rendering 5 Art Factory Hotels Proposal Lobby Floor Plan 6 Art Factory Hotels Proposal Lobby Graphics 7 Art Factory Hotels Proposal Typical Floor Plan 8 Art Factory Hotels Proposal Room Plan | Base Floor 9 Art Factory Hotels Proposal Room Plan | Mazzanine 10 Art Factory Hotels Proposal Room Internal Rendering 11 Art Factory Hotels Proposal Restaurant Elements 12 Art Factory Hotels Proposal Amenities Program • • • • • 24 hour Room Service Private Dinning Catering Four Star restaurant for breakfast, lunch and dinner with a lounge component as well. VIP Assistant In Room Amenities: – Totally wired smart rooms – Big screen TV – Door card receiving lights, air conditioning, drapes shades, dimmer switches for lights from bedside • • • • • • • • • • • Rooftop Lounge Outside Deck Low Carbon Footprint Model Upscale Bathroom Fixtures Internet TV Anti-theft Warning System Same Day Laundry Service Video Conference System 24 hour Self-service Key Access Business Center with VIP Assistant 24 hour gym with Sauna, Steam and Jacuzzi 13 Art Factory Hotels Proposal Capital Cities Five Year Pro Forma Destination Hotel Partners Art Facotry Hotels Capital Cities 5 year Pro Forma Closing and Construction Costs Land Purchase Closing Bank Fees Mortgage Recording Taxes Legal Fees Feasibility Study Title Insurance Prepaid Exp Environmental Phase I Accounting/Audit Broker Fee 2,000,000 2.0% 2.80% 455,915 638,280 50,000 25,000 18,000 0 40,000 50,000 0 0.9% 0% Total Closing Costs 1,277,195 Soft Costs Arch 2.0% Interior Design 1.0% Engineering 0.5% Expeditor Entitlements / Permits / Zoning Consultant Construction Manager 2.0% Developer Fee 7.0% Insurance Pre-opening Expenses $1,000 Interest Reserve(avg balance $9.0M at avg int rate of 10%) Working Capital $2,000 Contingency 5.0% Total Soft Costs Hard Costs New Construction FF&E Contingency Total Hard Costs&FFE Total Closing, Hard and Soft Costs $250 of Hard Costs of Hard Costs of Hard Costs of Hard Costs of Hard Costs per room per room SF 88,000 $15,000 per room 5.0% 440,000 220,000 110,000 20,000 50,000 440,000 1,540,000 150,000 90,000 1,367,744 180,000 230,387 4,838,131 22,000,000 1,350,000 1,100,000 24,450,000 30,565,326 14 Art Factory Hotels Proposal Capital Cities Five Year Pro Forma Destination Hotel Partners Captial Cities Art Factory Hotels All amounts U.S. $ x 1,000 Year 1 $ No. of rooms Rooms available Rooms sold Occupancy % Average Rate Hotel Year 2 $ % 90 32,850 23,981 73.0% $260 Year 3 $ % 90 32,850 24,638 75.0% $265 Year 4 $ % 90 32,850 24,966 76.0% $269 Year 5 $ % 90 32,850 25,623 78.0% $271 % 90 32,850 25,952 79.0% $289 Revenues Rooms Telecom Other Income 6,235 48 50 6,333 98.5% 0.8% 0.8% 100.0% 6,529 49 53 6,631 98.5% 0.7% 0.8% 100.0% 6,716 50 55 6,821 98.5% 0.7% 0.8% 100.0% 6,944 51 58 7,053 98.5% 0.7% 0.8% 100.0% 7,500 52 61 7,613 98.5% 0.7% 0.8% 100.0% 935 48 13 996 15.0% 100.0% 25.0% 15.7% 1,567 49 13 1,629 24.0% 100.0% 25.0% 24.6% 1,545 50 14 1,608 23.0% 100.0% 25.0% 23.6% 1,528 51 14 1,593 22.0% 100.0% 25.0% 22.6% 1,650 52 15 1,717 22.0% 100.0% 25.0% 22.6% Operating Department Income 5,337 84.3% 5,001 75.4% 5,213 76.4% 5,460 77.4% 5,896 77.4% Undistributed Operating Expenses Administrative & General Marketing Repairs & Maintenance Heat, Light & Power Franchise Fees Asset Management Fee Total Undistributed Operating Expenses 380 253 190 190 253 127 1,267 6.0% 4.0% 3.0% 3.0% 4.0% 2.0% 22.0% 431 133 199 3 265 133 1,031 6.5% 2.0% 3.0% 3.0% 4.0% 2.0% 18.5% 409 136 205 205 273 136 1,228 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% 423 141 212 212 282 141 1,270 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% 457 152 228 228 305 152 1,370 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% Gross Operating Profit Rest Lease Total Fixed Expenses Management Fees Insurance Land Lease Real Estate Tax Reserve for capital replacements Total Fixed Expenses 4,071 500 4,571 64.3% 3,971 500 4,471 59.9% 3,985 500 4,485 58.4% 4,190 500 4,690 59.4% 4,525 500 5,025 59.4% 190 60 0 1,140 127 1,517 3.0% 0.9% 0.0% 18.0% 2.0% 23.9% 199 66 0 464 199 928 3.0% 1.0% 0.0% 7.0% 3.0% 14.0% 205 73 0 477 273 1,028 3.0% 1.1% 0.0% 7.0% 4.0% 15.1% 212 80 0 494 282 1,067 3.0% 1.1% 0.0% 7.0% 4.0% 15.1% 228 88 0 533 305 1,154 3.0% 1.2% 0.0% 7.0% 4.0% 15.2% Cash flow before Debt Service 3,054 Total Revenues Departmental Expenses Rooms Telecom Other Income Total Departmental Expenses 3,543 3,457 3,623 3,872 15 Art Factory Hotels Proposal Capital Cities Five Year Pro Forma Financing Closing, Hard & Soft Costs Land purchase Total Cost Funding Requirment Rate Term Debt Equity Debt Service at Year 1 All amounts U.S. $ x 1,000 Equity Cash Flow before Debt Service Perm. Debt Service Sale at End of 5th Year Loan Balance at end of 5th Year Cash Inflows/Outflows Per Room 30,565,326 2,000,000 32,565,326 32,565,326 6.0% 25 70% 22,795,728 30% 9,769,598 1,783,235 Construction Year -2 Year -1 -9,770 Cap Rate Year 2 Operations Year 3 Year 4 Year 5 0 0 3,054 -1,783 3,543 -1,783 3,457 -1,783 3,623 -1,783 -9,770 0 1,271 1,759 1,674 1,840 3,872 -1,783 43,019 -20,501 24,606 1.71 1.99 1.94 2.03 2.17 9% DSCR IRR (Leveraged) Year 1 24.21% 16 Art Factory Hotels Proposal Global Cities Five Year Pro Forma Destination Hotel Partners Art Factory Hotels Global Cities 5 Year Pro Forma Closing and Construction Costs Land Purchase Closing Bank Fees Mortgage Recording Taxes Legal Fees Feasibility Study Title Insurance Prepaid Exp Environmental Phase I Accounting/Audit Broker Fee 40,000,000 (assuming a land lease) 2.0% 2.80% 1,001,387 1,401,941 50,000 25,000 360,000 0 40,000 50,000 0 0.9% 0% Total Closing Costs 2,928,328 Soft Costs Arch 2.0% Interior Design 1.0% Engineering 0.5% Expeditor Entitlements / Permits / Zoning Consultant Construction Manager 2.0% Developer Fee 7.0% Insurance Pre-opening Expenses $1,000 Interest Reserve(avg balance $9.0M at avg int rate of 10%) Working Capital $2,000 Contingency 5.0% Total Soft Costs Hard Costs New Construction FF&E Contingency Total Hard Costs&FFE Total Closing, Hard and Soft Costs $275 of Hard Costs of Hard Costs of Hard Costs of Hard Costs of Hard Costs per room per room SF 88,000 $20,000 per room 5.0% 484,000 242,000 121,000 20,000 50,000 484,000 1,694,000 150,000 92,000 3,004,160 184,000 326,258 6,851,418 24,200,000 1,840,000 1,210,000 27,250,000 37,029,746 17 Art Factory Hotels Proposal Global Cities Five Year Pro Forma Destination Hotel Partners Global Cities Five Year Development and Operating Pro Forma All amounts U.S. $ x 1,000 Year 1 $ No. of rooms Rooms available Rooms sold Occupancy % Average Rate Hotel Year 2 $ % 92 33,580 27,536 82.0% $429 Year 3 $ % 92 33,580 29,215 87.0% $455 Year 4 $ % 92 33,580 29,886 89.0% $482 Year 5 $ % 92 33,580 30,222 90.0% $511 % 92 33,580 30,558 91.0% $542 Revenues Rooms Telecom Other Income 11,813 55 50 11,918 99.1% 0.5% 0.4% 100.0% 13,285 58 53 13,396 99.2% 0.4% 0.4% 100.0% 14,406 60 55 14,521 99.2% 0.4% 0.4% 100.0% 15,442 60 58 15,560 99.2% 0.4% 0.4% 100.0% 16,550 61 61 16,672 99.3% 0.4% 0.4% 100.0% Rooms Telecom Other Income Total Departmental Expenses 1,772 55 13 1,839 15.0% 100.0% 25.0% 15.4% 3,188 58 13 3,260 24.0% 100.0% 25.0% 24.3% 3,313 60 14 3,387 23.0% 100.0% 25.0% 23.3% 3,397 60 14 3,472 22.0% 100.0% 25.0% 22.3% 3,641 61 15 3,717 22.0% 100.0% 25.0% 22.3% Operating Department Income 10,078 84.6% 10,136 75.7% 11,134 76.7% 12,088 77.7% 12,955 77.7% 715 477 358 358 477 238 2,384 6.0% 4.0% 3.0% 3.0% 4.0% 2.0% 22.0% 871 268 402 3 536 268 2,079 6.5% 2.0% 3.0% 3.0% 4.0% 2.0% 18.5% 871 290 436 436 581 290 2,614 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% 934 311 467 467 622 311 2,801 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% 1,000 333 500 500 667 333 3,001 6.0% 2.0% 3.0% 3.0% 4.0% 2.0% 18.0% 7,695 1,105 8,800 64.6% 8,057 1,105 9,162 60.1% 8,520 1,105 9,625 58.7% 9,287 1,138 10,425 59.7% 9,954 1,172 11,126 59.7% Total Fixed Expenses 358 60 0 2,145 238 2,801 3.0% 0.5% 0.0% 18.0% 2.0% 23.5% 402 66 0 938 402 1,807 3.0% 0.5% 0.0% 7.0% 3.0% 13.5% 436 73 0 1,016 581 2,106 3.0% 0.5% 0.0% 7.0% 4.0% 14.5% 467 80 0 1,089 622 2,258 3.0% 0.5% 0.0% 7.0% 4.0% 14.5% 500 88 0 1,167 667 2,422 3.0% 0.5% 0.0% 7.0% 4.0% 14.5% Cash flow before Debt Service 5,999 Total Revenues Departmental Expenses Undistributed Operating Expenses Administrative & General Marketing Repairs & Maintenance Heat, Light & Power Franchise Fees Asset Management Fee Total Undistributed Operating Expenses Gross Operating Profit Restaurant /OFFICE Lease Total Fixed Expenses Management Fees Insurance Land Lease Real Estate Tax Reserve for capital replacements 7,354 7,520 8,167 8,704 18 Art Factory Hotels Proposal Global Cities Five Year Pro Forma Financing Closing, Hard & Soft Costs Land purchase Total Cost Funding Requirment Rate Term Debt Equity Debt Service at Year 1 All amounts U.S. $ x 1,000 Equity Cash Flow before Debt Service Perm. Debt Service Sale at End of 5th Year Loan Balance at end of 5th Year Cash Inflows/Outflows Per Room 37,029,746 40,000,000 77,029,746 77,029,746 6.0% 25 65% 50,069,335 35% 26,960,411 3,916,760 Construction Year -2 Year -1 -26,960 Cap Rate Year 2 Operations Year 3 Year 4 Year 5 0 0 5,999 -3,917 7,354 -3,917 7,520 -3,917 8,167 -3,917 -26,960 0 2,082 3,437 3,603 4,250 8,704 -3,917 96,712 -45,028 56,471 1.53 1.88 1.92 2.09 2.22 9% DSCR IRR (Leveraged) Year 1 19.01% 19 Art Factory Hotels Proposal 30 cities for Art Factory Hotels 1. New York 2. Boston 3. Washington DC 4. Miami 5. Chicago 6. Toronto 7. New Orleans 8. Austin 9. Vancouver 10. San Francisco 11. Los Angeles 12. Shanghai 13. Beijing 14. Hong Kong 15. Singapore 16. Sydney 17. London 18. Paris 19. Berlin 20. Rome 21. Amsterdam 22. Barcelona 23. Sao Paulo 24. Tokyo 25. Dubai 26. Tel Aviv 27. Seoul 28. Oslo 29. Copenhagen 30. St. Petersburg 20 Art Factory Hotels Proposal Global map of 30 cities for Art Factory Hotels 21 Art Factory Hotels Proposal Team Members President and CEO of Destination Hotel Partners, LLC a global hotel development company specializing in hotels, resorts, and mixed-use development. Vice Chairman CEO of China Topsun Hotels International Group Ltd., a Chinese based joint venture hotel development company. Vice Chairman CEO of Goldstone Hospitality Group LLC, a New York based joint venture hotel development company. James Bates has a long and successful track record in the hospitality industry for over 35 years. His innovative and dynamic approach to building brands, developing new product and Destination Hotel Partners, LLC, executing excellent return on investment makes him a sought after expert in the market. Mr. Bates has held senior management positions with Hilton Hotels, Canadian Pacific, Best Western International, Hampshire Hotels and Resorts, Helmsley Hotels, Boutique Hotels & Resorts James C. Bates, International as well as several independent properties and projects. President & Mr. Bates began his career in Beverly Hills, California at the Beverly Hills Hotel, CEO Beverly Wilshire Hotel, and The Beverly Hilton Hotel. James Bates has served on several advisory boards including: Travel Industry Association of America, Pow Wow Planning Committee, World Travel Mart, ITB Berlin, Luxury Travel Expo, Best Western International EMAC Committee, Choice Hotels, Cendant Preferred Partners Committee, NYSAE We Love New York Day Chairman and NYSAE Chairman Associates Committee, Hotel Sales & Marketing Association International and Leading Hotels of The World Marketing Advisory Committee. Mr. Bates has served on numerous Convention and Visitors Bureaus Boards of Directors and advisory boards worldwide; and has participated on numerous panels and guest speaking engagements worldwide including NAFEO Conference, Nixon Peabody IPED Conference and White House Initiative on HCBU’s, and Shangri La Asia Conference. 22 Art Factory Hotels Proposal Team Members Thomas Campiglia, Architect Mr. Campiglia is an established member of the American Institute of Architects, A fellow of the Frank Lloyd Wright Foundation, certified member of the National Architectural Review Board and is licensed to practice Architecture in New York, New Jersey, Connecticut and California. He has worked as a Senior Architect for the international firm of Ellerbe Becket Architects. He maintains his practice as President of TCA Architecture, a professional Architectural Administrative Practice in New York City. Currently Mr. Campiglia is a consultant to Destination Hotels Partners, LLC, Lawyers Inns LLC, Canyon / Agassi, Columbia University, Emblem Health Insurance, Mercy College and Ann Taylor Corporation. He has extensive experience in both building renovation and new construction, and has developed designs for Beaver Creek Ski Resort in Colorado, Woodlands Inn in Houston Texas, Kiahuna Village in Kawai, Hawaii, Squaw Valley and various resorts. Mr. Campiglia has received awards for his work with the New York City Center for Abused Children for the design of Brooklyn Children’s Advocacy Center, a Merit Award for the Museum of Santa Barbara Design Competition and recently received the Albert Meiniker Award for 23 the design of a room for a child with spastic quadriplegia. Art Factory Hotels Proposal Team Members Gary Jacobs With 30 years of experience in operating and designing kitchens, bars, concessions and serveries across the country, in the Caribbean and Europe, Gary Jacobs has a long history of addressing both the pre- and post construction demands of all levels of foodservice operations. In designing a facility, he is as concerned with first cost, fit and flow as he is with durability, adaptability and ease of long term maintenance. With a long and distinguished list of clients that he has built over the years, Gary has been able to learn from the best, and has identified the elements common to all successful operations. Among the designers and architects he has collaborated with are Rockwell Group, Jeffrey Beers International, Bogdanow Partners, Ten Arquitectos, Costas Kondylis & Partners and Yabu Pushelberg. 24 Art Factory Hotels Proposal Team Members Allen Ostroff Allen Ostroff has over 25 years of experience as the Managing Director of Prudential Insurance Company’s Realty Group and Prudential Securities where he provided a wealth of experience in structuring acquisitions, development, and asset and financial management. He created a $3.6 billion hotel equity portfolio and a $1 billion shopping center portfolio. His expertise and successes in overseeing investments and operations in 4-5 star hotels representing 30,000 rooms and 175 restaurants adds significant management depth and focus on the core issues of control, efficiency, and value maximization. Mr. Ostroff knows the hotel business trade, having led the key due diligence process and financial structuring in over 200 acquisitions. Prior to joining Prudential, Mr. Ostroff served as the General Manager of the 2,000 plus room New York Hilton, Operations Manager at New York’s famed Waldorf Astoria, and Group Vice President of Americana Hotels. 25 Art Factory Hotels Proposal Strategic Partners Horwath HTL - Hospitality Consultant Tihany Design - Interior Design JP Morgan Chase - International Bank Ernst & Young - Accounting Norton Rose LLP- Legal Jacobs, Doland & Beer - Food Service Design Hotel Dynamics, LLC - Owners Representative Buy China Direct - FF& E Consultant 26 Art Factory Hotels Proposal Strategic Partners Horwath HTL Horwath HTL is the largest specialist consulting network in this sector, with 50 offices in 39 countries. Our unrivalled global reach is matched by a unique depth of knowledge and experience gained from thousands of projects over many years, in all kinds of economic climates. We remain the number one choice for hotel and real estate companies, as well as financial institutions looking to invest in the industry. Whatever and wherever your project, we offer the reassurance of an internationally consistent quality of service combined with local solutions. 27 Art Factory Hotels Proposal Strategic Partners Tihany Design | Adam D. Tihany Adam D. Tihany is widely regarded as one of the world’s preeminent hospitality designers. His sophisticated, often groundbreaking designs are the result, in part, of his unique global perspective. Recognized for his design versatility, Tihany has conceived innovative restaurant concepts in many of the world's most cosmopolitan cities and exclusive resorts. His more significant projects include the signature C restaurant for chef Charlie Trotter at the One&Only Palmilla resort in Cabo San Lucas, the restaurant and bar at the Mandarin Oriental Hyde Park in London, the Aleph hotel in Rome (winner of the 2003 European Hotel Design Award), the historic King David and the Dan Eilat hotels in his native Israel, and, for the Maccioni family, Le Cirque in Las Vegas and Mexico City, and Osteria del Circo in New York and Las Vegas. Tihany's retail projects include Fred Leighton, the Madison Avenue jeweler. His first major architectural commission, Hangar One, a private aviation club in Scottsdale, Arizona, took off in 2003. Over the years, Tihany has collaborated with select manufacturers, such as Christofle, Frette and McGuire, to create products of contemporary elegant design. He has curated and designed two major exhibits in conjunction with the Milan Furniture Fair: In April 2004, his interactive Dining Design explored the cultural phenomenon of restaurant design; his Grand Hotel Salone in 2002 simulated a boutique hotel lobby. Tihany's outstanding contribution to the world of design has been recognized with numerous honors and awards including an Honorary Doctorate from the New York School of Interior Design. He was named Bon Appetit's Designer of the Year in 2001, and was inducted into the Interior Design Hall of Fame in 1991. His monograph, Tihany Design, was published by Monacelli Press in 1999. Tihany Style will be published by Mondadori Electa in May 2004. 28 Art Factory Hotels Proposal Strategic Partners JP Morgan Chase JPMorgan Chase is one of the oldest financial institutions in the United States. With a history dating back over 200 years, here's where we stand today: We are a leading global financial services firm with assets of $2.3 trillion. We operate in more than 60 countries. We have more than 240,000 employees. We serve millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients. We are a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. Our stock is a component of the Dow Jones Industrial Average. 29 Art Factory Hotels Proposal Strategic Partners Ernst & Young Ernst & Young is a global leader in assurance, tax, transactions, and advisory service. Our 167,000 people are united by our shared values, which inspire our people worldwide and guide them to do the right thing, and our commitment to quality, which is embedded in who we are and everything we do. Ernst & Young is committed to doing its part in building a better working world for our people, for our clients and for our communities. 30 Art Factory Hotels Proposal Strategic Partners Norton Rose LLP Norton Rose is a leading international legal practice. We offer a full business law service to many of the world’s pre-eminent financial institutions and corporations from offices in Europe, Asia, Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing how our clients’ businesses work and understanding what drives their industries is fundamental to us. Our lawyers share industry knowledge and sector expertise across borders, enabling us to support our clients anywhere in the world. We are strong in financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and pharmaceuticals and life sciences. On June 1, 2013 Norton Rose will join forces with leading U.S. law firm Fulbright & Jaworski L.L.P. to form Norton Rose Fulbright. With 3800 lawyers and 54 offices, including 11 in the USA, Norton Rose Fulbright will be one of the largest global legal practices, with significant depth of expertise in the world’s leading business and financial centers. 31 Art Factory Hotels Proposal Strategic Partners Jacobs, Doland &Beer Jacobs, Doland &Beer is a New York City based foodservice design firm specializing in the planning and construction of all segments of commercial foodservice and hospitality venues, both across the U.S. and overseas. Jacobs, Doland &Beer specializes in developing back- and front- of house foodservice solutions. Since one cannot thrive without the other, we use an integrated approach to foodservice design to bring our clients’ concepts to life. We strive to meet our clients’ needs - timelines, budgets, foodservice program sustainability - without sacrificing the quality of the end result, whether designing retail operations or high- throughput production kitchens. From initial concept development, through design and implementation, Jacobs, Doland &Beer design specialists work closely with owners, chefs, architects and engineers through all phases of new construction and renovation projects. 32 Art Factory Hotels Proposal Strategic Partners Hotel Dynamics, LLC Hotel Dynamics represents the hospitality industry's top experts in asset management, financing, owner's representation and construction management. Hotel Dynamics will strive to maximize the value of your asset and capital through extensive due diligence for acquisition, rebranding and repositioning, property renovation, new construction and asset management. Our Team will bring unmatched expertise to all phases of the asset's lifecycle for a wide array of clients. The process starts with conducting due diligence that will enable asset owners to make the right acquisition or development decisions. We then transition our skills to managing the asset and formulating a plan to reposition the asset for long-term profitability. In the event that the repositioning decision includes any form of construction or brand PIP, we can seamlessly plan and implement the construction and renovations. 33 Art Factory Hotels Proposal Strategic Partners Buy China Direct BCD is a multinational company based in Guangzhou, China with offices in US, Central America, and independent agents in South America, South Africa and Australia. Our company objective is to be the leading world wide building materials supply chain by providing factory direct materials straight to the developers' door steps at tremendous savings. We specialize in interior finishes and decorative building materials ranging from kitchen cabinets, bathroom vanities, tubs, toilets, showers, taps and faucets, doors, windows, ceramic, porcelain, glass and stone tiles to wood flooring and other decorative essentials. We aim to give our clients the competitive advantage in todays ever difficult market by adding a global perspective and allowing small to mid size companies to order direct from the factories. We are your partners from the moment we start to work together. We provide manufacturing, sourcing, QC, CAD design and other logistic services direct to your doors step. 34