Transforming hotel cashflows into tradable, institutional-grade securities
The hospitality industry generates trillions in cash but remains structurally illiquid between refinancing events. Current investors face a stark choice: accept multi-year lockups in private equity or settle for public REITs with limited asset-level transparency.
HIUs bridge this gap by creating securitized, investor-grade claims on hotel cashflows with standardized risk metrics and optional liquidity. We're making hotel income comparable and tradable at institutional scale.
Multi-trillion dollar hospitality ecosystem
Billions in diversified float
Launch HIU sub-funds with engineered private liquidity through tenders and LP-led secondaries. Institutional governance with trustee-controlled waterfalls.
Graduate to broker-dealer sponsored ATS and public exchange marketplace. Expand investor access and capture market-making economics.
HIUs are senior, pass-through revenue interests issued by SPVs holding perfected interests in hospitality cashflows. Two primary variants serve different investor needs:
First-priority interests in 30-60% of property-level NOI after taxes and essential OpEx. Focused on stabilized, branded select-service properties.
Pass-through interests in management and franchise fees with step-down protections tied to performance thresholds.
Our proprietary metrics are embedded in pricing, protections, and disclosures, creating transparent risk-adjusted returns:
Deal IRR minus hospitality benchmark minus calibrated Illiquidity Premium based on public REIT spreads.
Efficiency measure: AHA divided by modeled cashflow volatility adjusted for brand and market dispersion.
Composite capturing exit timing risk, CapEx shocks, and refinancing constraints. Dictates reserve multipliers.
Blends sovereign spreads, FX volatility, tourism flows, and political risk. Triggers mandatory hedging above thresholds.
Quarterly tender offers of 5-10% NAV, LP-led secondaries, and multi-class share structures align investor preferences with asset cycles.
Quarterly NAV liquidity
With call and put features
Bay Street earns management fees (1.00-1.50% of NAV), performance fees (10-15% over 7-8% hurdle), and structuring fees (0.50-0.75% of RPN PV). Operating leverage drives margin expansion as AUM scales.
Constitute sub-funds, finalize PPMs, hire admin/trustee. One-time formation: $1.8-2.8M
Template RPNs, secure consents, integrate data. Technology build: $2.1-3.4M
Close first RPNs, establish distributions. Annual OpEx: $6.2-7.5M steady state
ATS filing, continuous trading, $1.5-2.0B float with 40-60% EBITDA margins
Progress private placements while preparing ATS filings. KPI: <2 regulator RFI cycles per filing.
Anchor programs and guaranteed market-making. KPI: ADV/float ≥0.20% by Month 18.
RMS-calibrated reserves and deferral modes. KPI: distribution coverage ≥1.20×.
SOC2 Type II, tested disaster recovery. KPI: RTO ≤2h, RPO ≤15m.
Bay Score triggers provide automatic protections: scores <65 open investor put windows, while BMRI >60 enforces mandatory hedging.
HIUs represent the first standardized, risk-scored pathway to hotel income with institutional governance and engineered liquidity. Our quantamental framework transforms opaque real estate cashflows into transparent, tradable securities.
Phase I delivers immediate market entry through Singapore VCC with proven private liquidity mechanisms. Phase II scales to public exchange, capturing market infrastructure economics while broadening investor access.
Quantamental metrics embedded in legal covenants
$2B+ addressable float within 36 months
40-60% EBITDA margins by Year 3
Hospitality Income Units (HIUs)