Hospitality generates recurring, contractually anchored income streams from asset-level net operating income (NOI) to operator management and franchise fees. Yet these income flows remain structurally illiquid, locked inside private equity fund vintages or REIT share classes that blur asset-level visibility.
Investors must choose between illiquid private equity or public REIT exposure, neither providing direct, standardized, and tradable access to the underlying income. The HIU Secondary Exchange transforms this landscape.
5-10
Years Locked
Private hotel deals lock capital for extended periods
$3T+
Market Size
Multi-trillion dollar hospitality industry
Solving Critical Market Gaps
Structural Illiquidity
Private hotel deals lock capital for 5–10 years, with exits dependent on refinancing or M&A events. Investors lack flexibility and liquidity options.
Opaque Pricing
Current secondary transactions rely on bespoke negotiations and off-market brokers, with no real-time price discovery or transparent benchmarks.
Asymmetric Access
Public REITs aggregate hospitality exposure but leave investors with market beta and no look-through to asset-level NOI performance.
Institutional investors demand liquid, transparent, benchmarked access to hospitality cashflows. The HIU Exchange delivers tradable units, standardized disclosures, and benchmark-linked pricing tied to Bay Street's quantamental framework.
Exchange Architecture & Monetization
Legal & Structural Design
HIUs issued from bankruptcy-remote SPVs with trustee oversight
Underlying assets include NOI streams and franchise fees
Standardized reporting anchored in Bay Score™ thresholds
Institutional-grade clearing and counterparty protection
Market Model
Primary issuance through Bay Street SPVs, secondary trading for institutions, and market maker liquidity provision with incentivized fee structures.
Revenue Streams
5-10
Basis Points
Transaction fees per trade
100%
Data Control
Proprietary hospitality dataset
Additional revenue from data subscriptions, analytics overlays, certification fees, and index licensing creates a diversified income model.
Strategic Implementation Roadmap
1
Phase 1: Proof of Concept (0-12 months)
Launch with Bay Street-originated HIUs from Fund I/II assets. Secure regulatory sandbox approval and establish custodian partnerships for institutional-grade settlement.
2
Phase 2: Early Adoption (12-24 months)
Open listings to Bay Street-certified sponsors. Create HIU Index™ benchmark and introduce LP data dashboard subscriptions for market participants.
Attract third-party issuers and license HIU Index to ETF providers. Integrate cross-listing with alternative trading systems like Nasdaq Private Market.
"This is not simply a trading platform — it is the infrastructure layer for turning hospitality into a transparent, comparable, and liquid asset class on par with corporate credit and listed real estate."