Accountability | Transparency | Growth
Management Team
❖ Mahesh Kansagra
➢ 31 years marketing & manufacturing
➢ 17 years hotel ownership & management
■ Wyndham, G6, Choice
❖ Darshan Kansagra
➢ 19 years hotel ownership & management
■ Best Western, Hilton, Hyatt, Wyndham, Choice
➢ 13 years retail & convenience store
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Current/past projects
Location: Utah Independent project
Acquired: July
Units:
CoC: %
Location: Wyoming
Acquired: Aug
Sold: Apr Units: CoC: %
Location: Utah
Acquired: Aug
Units:
Coc: %
Location: Utah
Acquired: Aug
Units:
Coc: %
Location: Wyoming
Acquired: Aug
Units:
CoC: %
Location: Utah
Acquired: Oct
Units: Best of Ramada award recipient
CoC: %
Location: Pennsylvania Acquired: Nov
CoC: %
Location: Utah
Educational Child Care Under Construction . acres , sq ft
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Information
Why Invest?
● Newer Construction
● Interstate 25
● Strategically located mid-way Denver, CO to Cheyenne, WY
● UCHealth Medical Center of the Rockies
● University of North Colorado (20 mins)
● Local & National Retailers
● Tons of Outdoor Activities
● Economic development
● Mismanaged property
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Comfort Suites Loveland
$12,000,000
$130,435
per room
$100,000
$12,100,000
$4,000,000
Purchase Price
Price
Capital Improvement Budget
Total Capitalization
Down Payment
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92 rooms
2017 Year Built
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Lobby
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Pool slide
Mar ‘23 Pre-Acquisition Underwriting, Due Diligence, Inspections, Licenses, Appraisal, Loan approval, Set-up Entities, Bank account Acquisition Human Resources paperwork, Merchant account set up, Utilities transfer, Jun ‘23 Jul ‘23 Management Employee hiring & training, Set Goals, Improve Revenue Management, Re-emphasize on Customer Service training. Nov ‘23 Renovation Finalize budget & start staggered renovation 20262027 Refinance Best interest rate & cash out for next deal Confidential Information
Strategy Roadmap
Pro-forma Cash Flow Projections
YE ROE: 2026 - 11.22% 2027 - 11.84%
Note: ROE is Including, 4% Cash Reserve for Capital Improvements
2022 2023 2024 2025 Revenue $2,965,677 $3,113,961 $3,222,949 $3,287,408 Operations + R&M $903,118 30.5% $768,553 24.7% $791,610 24.6% $815,358 24.8% Admin & General $163,488 5.5% $262,398 8.4% $270,270 8.4% $278,378 8.5% IT & Telecom Sys $36,976 1.2% $35,867 1.2% $34,791 1.1% $33,747 1.0% Sales & Marketing $11,475 0.4% $12,049 0.4% $12,651 0.4% $13,284 0.4% Franchise fees $385,538 13.0% $404,815 13.0% $418,983 13.0% $427,363 13.0% Prop Ops & Maint $56,200 1.9% $59,853 1.9% $59,854 1.9% $59,855 1.8% Utilities $108,792 3.7% $114,232 3.7% $119,943 3.7% $125,940 3.8% Total Var Exp $1,665,587 56.2% $1,543,535 49.6% $1,588,160 49.3% $1,627,985 49.5% Management Fees $118,627 4.0% $124,558 4.0% $128,918 4.0% $131,496 4.0% Tax- RE & Personal $245,595 8.3% $248,051 8.0% $250,531 7.8% $253,037 7.7% Insurance $47,345 1.6% $48,765 1.6% $50,228 1.6% $51,735 1.6% Total Fix Exp $411,567 13.9% $421,375 13.5% $429,678 13.3% $436,268 13.3% Reserve for Cap Ex $118,627 4.0% $124,558 4.0% $128,918 4.0% $131,496 4.0% NOI $769,896 26.0% $1,024,493 32.9% $1,076,194 33.4% $1,091,658 33.2% ROE 8.41% 10.13% 10.65% Confidential Information
Use of funds
USE $ AMOUNT $ / ROOM % OF TOTAL Purchase $12,000,000 $130,435 93.76% Financing Cost $90,000 $978 0.70% Closing Cost (SBA) $315,000 $3,424 2.46% Franchise Transfer $73,600 $800 0.58% Lender RE, T&I $150,000 $1,630 1.17% Contingency Escrow $50,000 $543 0.39% Acquisition Fees $120,000 $1,304 0.94% Rate Cap Purchase $0 $0 0.00% Total $12,798,600 $139,115 100.00% Confidential Information
Investment - Exit Strategy
● Asset fair market valuation
● Existing partner first right of refusal
● Trade the asset
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Key Real Estate Terms & Definitions
Capitalization Rate (cap Rate - A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property.
● When acquiring income property, the higher the capitalization rate ("Cap Rate*), the better.
● When selling income property, the lower the Cap Rate the better.
● A higher cap rate implies a lower price, a lower cap rate implies a higher price.
Cash Flow - Cash generated from the operations of a company, generally defined as revenues less all operating expenses.
Cash-on-Cash - A rate of return often used in real estate transactions. The calculation determines the cash income on the cash invested. Calculated: Annual Dollar Income Return/ Total Equity Invested= Cash-on-Cash
Investor Average Annual Return, excluding disposition - The average return per year during the investment hold. This calculation does not include the return of invested capital.
Investor Average Annual Return, including disposition - The average return per year including profits from disposition.
Internal Rate of Return (IRR) - The rate of return that would make the present value of future cash flows plus the final market value of an investment opportunity equal the current market price of the investment or opportunity. The higher a project's internal rate of return, the more desirable it is to undertake the project.
Return on Equity (ROE) - The amount of net income returned as a percentage of shareholders equity.
● ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/ Shareholders Equity
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Legal Disclaimer
● The information contained in this document, presentation, and other marketing materials related to this project (the "Information") is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice or tax advice. We advise all parties to do their own research and obtain independent financial, legal and professional advice before making any investment and business decisions. Your personal individual financial circumstances must be taken into account before vou make any investment decision.
● MDK Hotels ("MDK"), its directors, officers, presenters, affiliates, distributors, promoters and employees cannot and do not guarantee investment results, whether based on this Information or otherwise. The Information supplied is always subject to alteration without notice. MDK and its directors, officers, presenters, affiliates, distributors, promoters and employees may hold shares and/or obtain fees and/or other benefits from the projects and/or companies described and promoted in the Information. To the extent permitted by law, MDK gives no warranty and make no representation as to the accuracy of any description, illustration, rendering, photograph or statement relating any of the content in this document, and accept no liability for any loss which may be suffered by any person who relies either wholly or in part upon the information presented in this document and the Information, MDK disclaims all liability for all decisions made based on this presentation.
● The site plans, photos, and renderings that are contained in the Information are illustrative and conceptual only, and are always subject to change without notice and cannot be relied on. All parties must only rely upon the contents of any legal agreements, formal disclosure statements, and their own research and inquiries in relation to any property or. investment to be acquired and/or legal contracts entered into.
● Representatives presenting opportunity either have an ownership stake or solely represent the interests of the owner in any opportunity presented. In no way does anyone involved with this opportunity represent the buyer, and there shall not exist an agency relationship, either explicit or implied, both now and in the future. The buyer shall have the right to representation by an agent and a broker becomes the buyer's agent by agreeing to represent the buyer, usually through a written representation agreement. The buyer agrees to be solely responsible for compensating their agent.
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