05

Investor Economics

Return profile, downside protection and exit framework.

INVESTOR ECONOMICS

Investor Return Profile

Designed to frame Investor-style underwriting and diligence priorities.

Downside Case

  • Slower rollout and flat exit multiples.
  • Real estate stabilization and independent monetization provide asset-backed support.
  • Objective: preserve capital with mid-teens IRR potential.

Base Case

  • 22%-25% target IRR.
  • 2.5x-3.0x MOIC over 36-60 months.
  • Growth driven by new units, M&A, and margin expansion.

Upside Case

  • Accelerated openings and higher same-store performance.
  • Portfolio multiple expansion as EBITDA scales and the buyer universe increases.
  • Potential 3.5x+ MOIC under accelerated growth case.
INVESTOR ECONOMICS

Illustrative Ownership Waterfall

Simple and IC-friendly economics.

01 Return of Capital

75% LP / 25% GP distributions until investors receive full return of invested capital.

02 Preferred Return

8% non-compounding preferred return to investors, subject to final documentation.

03 Residual Split

Residual distributions split per final structure; source deck indicates 25% LP / 75% GP after hurdles.

Investor Alignment Note

The simplified structure is intended to prioritize return of capital, clear preferred-return mechanics, and alignment between LPs and the sponsor.

RISK / DOWNSIDE

Downside Protection & Capital Preservation

The platform is designed to avoid being underwritten as a purely unsecured restaurant operating risk.

Stress Assumptions

  • 30% slower unit rollout across all markets.
  • Flat exit multiples versus entry.
  • Higher interest-rate environment.
  • Liquidity reserves are maintained during early deployment.

Protection Mechanisms

  • Real estate assets stabilized and monetized independently.
  • Stage capital to milestone-based openings and acquisitions.
  • Hold operating reserves and avoid forced asset sales.
  • Use refinancing or PropCo sale as a separate liquidity path.

Investor Outcome

  • Capital preservation focus even if rollout pace slows.
  • Asset coverage and refinance options support liquidity.
  • Multi-brand diversification reduces reliance on any one concept.
  • REO Venues can be separated from the OpCo exit timing.
RISK / DOWNSIDE

Institutional Risk Register & Mitigants

What can go wrong and how management will control it.

Construction Cost / Delays

Second-generation venues, hard bids, contingencies, lender controls, and gated capital release.

Brand Rights / M&A Risk

Definitive agreements, exclusivity, diligence checklists, and fallback concepts before capital deployment.

Labor / Margin Pressure

Centralized recruiting, scheduling analytics, standard labor models, and purchasing scale.

Site Selection Risk

Market scorecards, traffic data, tourism, income, competitor mapping, and opening KPI gates.

Management Bandwidth

Regional operators, shared services, board reporting cadence, and market-level accountability.

Leverage / Rate Risk

Conservative DSCR sizing, reserves, fixed-rate options, and refinance timing discipline.

EXIT STRATEGY

Exit Framework

Multiple monetization paths can be pursued depending on operating performance, real estate values, and capital market conditions.

Strategic Sale

Global hospitality groups are seeking premium concepts, operational infrastructure, and market footprint.

PE Recap

Sponsor and investors sell or recapitalize at platform EBITDA scale while retaining upside.

PropCo Monetization

Sell, refinance, or spin off the real estate portfolio independently from OpCo timing.

Hybrid Transaction

Combine OpCo recapitalization with REO Venue sale/refinance to optimize proceeds and tax planning.

Illustrative EV Range at $86M EBITDA

Bar chart comparing four financial figures.

Source deck references luxury / lifestyle hospitality platform valuation ranges of 10.0x-16.0x EBITDA; all exit multiples require third-party market support before external distribution.

RISK / DOWNSIDE

Institutional Risk Register & Mitigants

What can go wrong and how management will control it.

1. Capital Formation

  • Finalize anchor investor terms and target check allocation.

  • Prepare a subscription timeline, a soft-circle process, and diligence materials.

2. Deal Readiness

  • Finalize brand rights, acquisition terms, and real estate control status.

  • Build a defensible project-level model and capital call schedule.

3. Institutional Package

  • Package deck, one-page teaser, IC memo, VDR index, diligence FAQ, and bank-ready Excel model.

  • Reconcile waterfall and governance terms before formal investor distribution.

Positioning line: Shared Hospitality is building an institutional premium hospitality platform through disciplined buy-and-build consolidation, centralized operations and real estate-backed value creation.

NEXT STEPS

Next Steps

  • 1. Capital Formation

    Finalize anchor investor terms and target check allocation.

    Prepare subscription timeline, soft-circle process and diligence materials.

  • 2. Deal Readiness

    Finalize brand rights, acquisition terms and real estate control status.

    Build a defensible project-level model and capital call schedule.

  • 3. Institutional Package

    Package deck, one-page teaser, IC memo, VDR index, diligence FAQ and bank-ready Excel model.

    Reconcile waterfall and governance terms before formal investor distribution.

Positioning line: Shared Hospitality is building an institutional premium hospitality platform through disciplined buy-and-build consolidation, centralized operations and real estate-backed value creation.

Financial Model Source Appendix

Original tables, graphs, and rollout schedules were reinserted for investor diligence.

Bar chart of property values over years

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