Hale Proposal Binder

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Paramount Hotels is pleased to submit this proposal for the continued management of HALE ʻO LĀʻIE. Thus far, we have been privileged to manage the project under HHFDC, to support the recovery efforts for the kamaʻāina affected by the Maui wildfires. We look forward to our continued collaboration with the County of Maui to further enhance the facility's operations and impact. This proposal outlines the scope of management services we will provide, including strategic planning, financial management, operations, oversight, and sales/marketing. Our approach aligns with the County of Maui's objectives to meet the needs of the community. Within it, we’ll explore:

Scope of Services:

• Define tasks and deliverables, with clear timelines and milestones.

• Establish reporting structure and communication frequency.

Performance Metrics:

• Identify key performance indicators (KPIs) for success (e.g., revenue growth, cost reduction, customer satisfaction, operational efficiency).

Fees and Payment:

• Outline proposed fees, including retainer, monthly charges, and performance incentives, with payment schedule and terms.

Implementation Timeline:

• Provide a detailed onboarding and implementation plan with key phases and deadlines.

Team Composition:

• Introduce key personnel managing the project, highlighting their qualifications and expertise.

Exit Strategy:

• Describe the contract termination process, including notice periods and transition plans.

Thank you for your consideration. We are committed to supporting the continued success of HALE ʻO LĀʻIE and promoting the well-being of the Maui community.

HALE O LAIE 2025-26 PROFIT AND LOSS SUMMARY PAGE

HALE O LAIE 2025-26 PROFIT AND LOSS SUMMARY PAGE

HALE `O LĀ’IE acknowledges once-plentiful indigenous `ie`ie vine. As efforts continue to restore this important resource important to daily life in old Hawai`i, the vine is symbolic of the resilience of our modern-day Maui Nui community. Just as the `ie`ie vine stretches out and each strand is gathered and brought togetherwoven to make a strong cord –so too will HALE `O LĀ’IE strengthen our community.

HALE `O LĀ’IE has a new life as temporary housing for individuals and families displaced by last year’s wildfires. The residences are newly renovated and include 179 tastefully appointed furnished studios and suites within the six-story building within the 6.27-acre, lushly landscaped community. Light-filled studio residences include private lanais accessed by large sliding glass doors and vinyl plank hardwood floors. The studios have bathrooms with bathtubs and standing showers.

Located in the South Maui in a the community of K īhei, HALE `O L Ā ’IE is situated arming and quiet neighborhood with two supermarkets, public elementary and intermediate schools, and numerous dining options within several walkable blocks. The family - friendly urban area also has easy access to parks, shopping centers and markets, in addition to public transportation. K īhei is about a 30 - minute drive to Kahului and a 45 - to 60 - minute drive to Lahaina .

1 King Bed | 1 Bathroom | 1 Closet

364 Interior sq.ft. | 121 sq. ft. Lanai

Studio King residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate a king - size platform bed, work desk with office chair, accent table with upholstered chairs, a dresser, and a generous bathroom with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space.

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no onsite mailboxes

1 Queen Bed | 1 Bathroom | 1 Closet 378 Interior sq.ft. | 120 sq. ft. Lanai

Studio Queen residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate a queen - size platform bed, two desks, a dresser, and a generous bathroom with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space.

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no onsite mailboxes

2 Queen Beds | 1 Bathroom | 1 Closet

378 Interior sq.ft. | 120 sq. ft. Lanai

Studio Double Queen residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate two queen - size platform beds, two desks, a dresser, and a generous bathroom with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space.

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no onsite mailboxes

1 King Bed | 2 Bathrooms | 2 Closets | 1 Parlor Suite w/ Kitchenette 670 Interior sq.ft. | 119 sq. ft. Lanai

Studio Suite King residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate a king - size platform bed, a bonus parlor room kitchenette equipped with mini refrigerator and microwave, additional soft seating within living space, work desk with office chair, accent table with upholstered chairs, a couple dressers, and generous bathrooms with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no onsite mailboxes

2 Queen Beds | 2 Bathrooms | 2 Closets | 1 Parlor Suite w/ Kitchenette 999 Interior sq.ft. | 120 sq. ft. Lanai

Studio Suite Double Queen residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate two queen - size platform beds, a bonus parlor room with kitchenette equipped with mini refrigerator and microwave, additional soft seating within living space, work desk with office chair, accent table with upholstered chairs, a couple dressers, and generous bathrooms with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space.

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no on-site mailboxes

1 King Bed | 1 Bathroom | 1 Closet

360 Interior sq.ft. | 120 sq. ft. Lanai

Studio King + Kitchenette residences are fully furnished with cool- toned décor and vinyl hardwood floors. Residents will appreciate a king - size platform bed, in - unit kitchenette equipped with mini refrigerator and microwave, work desk with office chair, accent table with upholstered chairs, a dresser, and a generous bathroom with ample counterspace and a shower tub. A glass slider to the lanai allows for ample natural light and air while extending the studio’s living space.

AMENITIES

HALE `O LĀ’IE’s full offering of amenities includes a pool, wellequipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and on-site parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no on-site mailboxes

Welcome to HALE `O LĀ’IE.

A community of families. Children. Friends. Kamaʻāina rebuilding their lives.

Residents enjoy 6.27 lush acres complete with a pool, manicured paths and outdoor grilling and gathering spaces. Thoughtful amenities designed to restore normalcy, joy, and health…like a community kitchen for homecooked meals, a fitness center and game room, a sophisticated lobby for greeting guests and gathering with friends. And even a proper on-site laundry so as not to disturb your familiar weekly routine.

AMENITIES

Hale ‘O Lā'ie’s full offering of amenities includes a pool, well-equipped fitness center, on-site laundry facilities, community kitchen with dining area, outdoor grilling and dining area, shared common areas and workspaces, a game room with foosball and ping pong tables, and onsite parking.

§ Electricity, hot water, refuse service, air conditioning, and basic cable TV included

§ Camera-monitored building with electronic key access

§ 100% smoke-free indoor facility with designated outdoor smoking area

§ On-site laundry facilities available, with weekly linen and towel service currently offered

§ P.O. boxes are suggested as there are currently no onsite mailboxes

RESIDENCES

Select from 179 tastefully appointed, newly remodeled, furnished studios and suites for peaceful restoration … light-filled with private lanais accessed by large sliding glass doors and vinyl plank hardwood floors. A safe and sophisticated place to call home.

Kahului-Wailuku-Lahaina - HI USA

The Kahului-Wailuku-Lahaina multifamily market has a vacancy rate of 6.8% as of the fourth quarter of 2024. Over the past year, the market's vacancy rate has changed by 3.6%, a result of 324 units of net deliveries and 228 units of net absorption.

Kahului-Wailuku-Lahaina's vacancy rate of 6.8% compares to the market's five-year average of 4.3% and the 10-year average of 4.1%.

As of the fourth quarter of 2024, there are no multifamily units under construction in Kahului-Wailuku-Lahaina. In comparison, the market has averaged 78 units under construction annually over the past 10 years. The Kahului-Wailuku-Lahaina multifamily market contains roughly 2,400 units of inventory. The market has approximately 840 units rated 4 & 5 Star, 1,100 units

KEY INDICATORS

rated 3 Star, and 390 units rated 1 & 2 Star.

Market rents in Kahului-Wailuku-Lahaina are $2,420/month, compared to the national average of $1,730/month. Rents average around $2,660/month for 4 & 5 Star buildings, $2,340/month for 3 Star properties, and $1,240/month for 1 & 2 Star assets.

Rents have changed by 10.6% year over year in KahuluiWailuku-Lahaina, compared to a change of 1.0% nationally. Market rents have changed by -0.5% in 4 & 5 Star buildings year over year, 23.0% in 3 Star buildings, and 1.1% in 1 & 2 Star buildings. Annual rent growth of 10.6% in Kahului-Wailuku-Lahaina compares to the market's five-year average of 3.1% and its 10year average of 3.6%.

Vacancy

ABSORPTION, NET DELIVERIES & VACANCY

Kahului-Wailuku-Lahaina

OVERALL & STABILIZED VACANCY

Vacancy

VACANCY RATE

Kahului-Wailuku-Lahaina

VACANCY BY BEDROOM

MARKET RENT PER UNIT & RENT GROWTH

MARKET

Construction

Under Construction Properties

Sales

Average annual inventory turnover in Kahului-WailukuLahaina is 54 units over the past five years and 45 units over the past 10 years. Average annual sales volume over the past five years is $4.9 million and $5.6 million over the past 10 years.

Estimated multifamily market pricing in Kahului-WailukuLahaina is $320,000/unit compared to the national

Kahului-Wailuku-Lahaina Multi-Family

average of $220,000/unit. Average market pricing for Kahului-Wailuku-Lahaina is estimated at $430,000/unit for 4 & 5 Star properties, $280,000/unit for 3 Star assets, and $190,000/unit for 1 & 2 Star buildings. The estimated market cap rate for Kahului-WailukuLahaina multifamily is 5.6% compared to the national average of 6.1%.

MARKET CAP RATE

Sales Past 12 Months

Economy

KAHULUI-WAILUKU-LAHAINA EMPLOYMENT BY INDUSTRY IN THOUSANDS

JOB GROWTH (YOY)

UNEMPLOYMENT RATE (%)

NET EMPLOYMENT CHANGE (YOY)

MEDIAN HOUSEHOLD INCOME

POPULATION GROWTH (YOY

%)

Economy

NET POPULATION CHANGE (YOY)

DEMOGRAPHIC TRENDS

Source: Oxford Economics
Source: Oxford Economics

Submarkets

KAHULUI-WAILUKU-LAHAINA SUBMARKETS

Submarkets

SUBMARKET RENT

OVERALL VACANCY & RENT

OVERALL SALES

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred. The price index is not smoothed.

4 & 5 STAR SALES

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred. The price index is not smoothed.

3 STAR SALES

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual

The

smoothed.

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred. The price index is not smoothed. 11/27/2024

DELIVERIES & UNDER CONSTRUCTION

Bezos Academy is building a network of tuition-free, Montessori-inspired preschools in underserved communities.

Our preschools offer year-round programming, five days a week, for children ages 3-5 years old.

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