HIU Secondary Exchange

Unlocking Liquidity and Transparency for Hospitality Income

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The Multi-Trillion Dollar Opportunity

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 Scoreâ„¢ 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 Indexâ„¢ benchmark and introduce LP data dashboard subscriptions for market participants.

3

Phase 3: Scale & Institutionalization (24-48 months)

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."