KPDG_Business_Plan_Pitch_Deck_Checklist_SF_1_05pm.docx

Cover Letter:

Attention: David Bailey BFI and Consulting 5306 Crane Hill Court Saint Cloud, FL 3411

Subject: Hotel Development Projects in Kissimmee, Florida.

Dear Mr. Bailey

The Kissimmee Place Development Group, Inc. (KPDG) is delighted to present the attached prospectus for the development of two (2), KPDG fostered projects to be developed within a Public Private Partnership with the City of Kissimmee, Florida. This premier development will be strategically located in the heart of the Osceola County, one of the fastest growing Counties in Florida.

The Proposed Projects will consist of the following profit centers:

1) A 122-room Hyatt Studios Hotel at Kissimmee Gateway Airport

2) A Kissimmee Place Hotel and Conference Center featuring:

a. A 160-room Hyatt Place hotel with 5,000 sf of conference space

b. An additional 140-room expansion to the Hyatt Place Hotel with 25,000 SF of conference space

Our proposal outlines a comprehensive review of the market conditions, the development team, anticipated Kissimmee government support, business model and financing package requests. This proposal should also be read with the attachments as shown on the next page in the Table of Contents. We are asking for an investment of $114,775,964.79 for Project Construction with a Contingency applied of 10% as well as Administrative and Pre-Operation dollars for all phases of the development combined. We stand ready to answer any questions or concerns you may have and look forward to working with you on this exciting development.

Joe Crane, Managing Partner Juan R. Lopez, Managing Partner Santiago M. Fernandez, Managing Partner

1. Project Background

a. Overview of Needs Assessment and Project Rationale The City of Kissimmee, like most cities in Florida, has gone through periods of growth and prosperity interspersed with periods of economic instability. The opening of Disney World in the 1970s brought exponential growth to the City. In one decade alone, the City grew by 118%. That growth, however, was followed by a decline that hit the downtown and the Vine Street corridor was particularly hard economically. The economic challenges faced by Downtown Kissimmee over the past several decades were answered with the creation of the Kissimmee CRA in 1992.

The City Commission of the City of Kissimmee, Florida, had determined that it’s Downtown District was an area in need of redevelopment. The City found the necessity to organize a Community Redevelopment Agency (CRA) within a specifically, bounded area in and around the downtown district. This area is outlined and shown in green in Figure 1 below.

The CRA masterplan was realigned in 2012 and is focused on the rehabilitation, conservation, or redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, morals, or welfare of the residents of the City of Kissimmee. Furthermore, and Pursuant to Florida Statute 163.357, the City Commission of the City of Kissimmee had declared itself to be the Community Redevelopment Agency board.

A comprehensive market survey from the HVS Market Study written in 2018 is an attachment to this Plan as noted in the Attachments section of the Table of Contents. The Market Area Analysis section of the HVS Report, detailing demographics, major market attractions, and business markets, can be found on pages 22-41. The Supply and Demand Analysis section of the HVS Report, which describes lodging demands and local market forces in Kissimmee, is located on pages 45-68. Below is a brief overview of the highlights and updated data from the 2018 report.

Figure 1- Map showing CRA Boundary and proximity to the Lake “Toho” Waterfront

In June of 2024, assisted by Miami Appraisal Solutions (MAS), KPDG performed a market appraisal analysis (provided in addition) for the two properties that are further described in this proposal as the intended Hyatt Hotel Project Sites. One site is at KGA and the other at Toho Square. Three projects were proposed for this MAS analysis, A 100-room Hotel at KGA, a 120-room Hotel at Toho Square and a 60-unit Apartment House. The study showed an aggregate IRR for the three projects proposed as 12.3% in year 10. KPDG then enlisted the hotel management group, Resolute Road, to assist in analyzing the Market absorption potential of the venture.

The Trailing 12-month occupancies in the Kissimmee East are 61.7% which is 10.6 % lower than the Greater Orlando market average at 72.3% for the same period. New construction is limited to a 160-room hotel project representing a change in the current submarket trend upwards in respect to the 10-year market contraction experienced since 2014. The primary sources of lodging in the East Kissimmee Market are low-rent hotel and motel offerings along US 192 Irlo Bronson Highway (a few examples shown below). The night Stay pricing of these hotels is $ 50 to $60 per night.

Figure 2- Images of Best Offering lodging in the Eastern Kissimmee Market 2024 along Irlo Bronson Highway- US 192

Ambassador Inn 2-star offering ($58/Night) Quality Inn 2-Star Offering ($58/Night) Home 1 Suites 2-Star offering ($58/Night)

Location ‘B’ Location ‘A’

Figure 3- Map Showing the KPDG Proposed KGA and Lake ‘Toho’ (Kissimmee Lakefront Park) Sites within the East Kissimmee Hotel Market

Figure 4- Chart showing Key Performance Indicators in the 2023- 2024 12-month period.

The most recent study performed by Resolute Road on behalf of Kissimmee Place Development Group, Inc. (KPDG), analyzed the ability for the Greater Kissimmee market to absorb a 122-room Hyatt Studios Hotel and a 200- room Hyatt Place along with conference space. This study was performed with information obtained from the Smith Travel Research (STR) Reports for of the aggregate hotel portfolio (shown above) in the Greater Kissimmee Market acquired on 9/27/2024. The 5-year outlook Showed a positive cashflow in year 1 of operation. This report is provided in its entirety along with this Business Plan.

The Kissimmee West Submarket is characterized by larger resort Hotels focus on Leisure Travel and directly related to the Themed Park Tourism in the Central Florida Market. The Kissimmee East submarket information shows an average of 138 rooms per building versus the larger 271 rooms per building offered in the West submarket. The national standard is 90 rooms per building.

Figure 5- Greater Kissimmee Market Comparable set of Hotels for New Hyatt Hotels absorption Study.

City and County Participation The City of Kissimmee fully supports our development initiative. Before our involvement, the City invested in a downtown parking garage and commissioned a 2018 market study for a hotel and apartment complex on the Tho Square Site at Pleasant Street. Key officials, including former Mayor Jose Alvarez, City Manager Michael Steigerwald, KGA Airport Director Shaun Germolus, and Economic Development Director David Rodriguez, are actively collaborating with our team. We have formed the KPDG entity with the specific intention of entering into this Public Private Partnership (P3) with the City of Kissimmee pursuant to State Statute 255.065 that allows for the transaction.

County participation will determine the ultimate scale of the Public Project that is built at the Toho Square Property in that the County is capable of funding 70% of public space with the Tourist Development Tax Dollar (TDT). The Phase II Hyatt Place is anticipated to be performed in two Phases; Phase IIa that houses 160 rooms and 5,000 sf of conference space and Phase IIb that houses 140 additional rooms and an additional 25,000sf of conference space. The final program is reliant on public participation in the form of grants and subsidies. Meetings with county officials indicate that a need for public conference space is an ideal amenity that is needed in the Downtown area.

Figure 6- Proposed intent of the KPDG Public Private Partnership This Prospectus presents a comprehensive vision for the development of 422 rooms total, proposed as a 122-room Hyatt Studios Hotel at Kissimmee Gateway Airport and a 300-room Kissimmee Place Hotel and Conference Center in Downtown Kissimmee overlooking Lake Tohopekaliga (Toho) Waterfront District. The Kissimmee Place Development Group, Inc. (KPDG) was established solely for the purpose of entering into this Public Private Partnership (P3) agreement with the City of Kissimmee to successfully execute the outcome of these projects. KPDG has submitted an unsolicited proposal with the City that when awarded will allow KPDG all rights to Design, Build Finance Operate and Manage the venture.

The Specific Need The Kissimmee Downtown area is lacking a major hotel brand. Although the ‘192’ corridor is dotted with motels, available at sub-market potential rates of an average of $50- $60 dollars a night, there is no true quality offering in the central business district (CBD) nor CRA area. The City of Kissimmee’s Downtown District, when analyzed strategically, is positioned 20-25 minutes from Disney, 8-10 minutes from Neo City (which recently received $300M in semiconductor funding), has direct access to Sunrail and Amtrak, hosts seven international flight schools, hosts 3 Major National fishing tournaments annually, and has been the fastest-growing county in Central Florida since 2009.

The downtown Kissimmee hotel presents an excellent opportunity for an economical lodging solution for families visiting the Orlando area, being just 25 minutes away from Disney World Orlando. This proximity offers a convenient and cost-effective option for budget-conscious travelers seeking to experience the magic of Disney without the high accommodation costs often associated with staying on Disney property. Additionally, the airport hotel will be only 20 minutes from Disney, providing a similar economical advantage for visitors flying in.

KPDG has identified, from analysis and from community interviews, the need for 422 mid-to-upper-scale hotel rooms, as well as the need for 30,000 sf of conference space from interviews within the community and has verified the financial feasibility based on conservative proforma metrics. KPDG has received signed Letters of Intent from Hyatt Hotels Development Group for two hotels. KPDG has identified these two hotels as Phase I, The 122-room Hyatt Studios we will offer at KGA (KGA) and Phase II, the 300-room Hyatt Place Hotel and 30,000 sf Conference Center. Agreements are being finalized, with a formal groundbreaking for Phase I, Hyatt Studios Hotel anticipated to be announced for January 14, 2025. The Phase II, Hyatt Place Hotel and Conference Center is anticipated to break Ground in mid-April of 2025. The project locations are identified in the key map above as location A and Location T.

The Solution: Two Comanaged Hotel Sites in Downtown Kissimmee The City will lease 8.5 acres in the Northern Development Zone of KGA to the KPDG venture. The Hyatt Studios Hotel will occupy the westernmost 2 acres, valued as entrance equity in the KPDG venture. Similarly, 1.5 acres at Toho Square along Pleasant Street in Downtown Kissimmee will be leased. Both leases are for forty-nine years with three ten-year extensions, totaling seventy-nine years.

Figure 7- Proposed Sites showing Phase I & Phase II Locations

KPDG Hyatt Studios Hotel Patron Demographics The Hyatt Studios Kissimmee Gateway Hotel will cater to the Aeronautical Community at KGA, including six Pilot Training Schools currently booking rooms outside Kissimmee. Interviews with Flight Simulation & Training Companies at KGA indicate that their facilities will double in size over the next five years, creating a demand for on-campus student housing. Airport tenants, interviewed from late 2023 to early 2024, expressed a need for airport accommodation to support their diverse training methods and student stay durations. These tenants also have corporate needs requiring travel to KGA for monthly operations, necessitating nightly and weekly accommodations.

The chart below summarizes the demand for room nights versus the available room nights KPDG will offer with its first development, The Hyatt Studios Hotel at KGA.

Figure 8- Chart showing patronage by percentage to duration of stay at KGA.

We expect 60% of airport hotel patrons to stay 9 days or less for one-to-two-week flight training sessions. About 12% will stay up to 30 days for more intense training, while Aeronautical Colleges will require 90-day stays, making up 28% of annual patronage.

Tenant interviews highlight a need for safe, secure interim housing with extended stay amenities like in-room kitchens and laundry facilities.

Simulation, Training, Flight Schools and MRO Facilities at KISM The KGA Hyatt Studios Hotel meets the critical need for quality accommodation to support the seven flight schools and Cirrus Maintenance Facility. The airport also serves regular commercial flights with the ability to house pilots and crew regularly. Flight Schools and Pilot Training Programs will provide the additional patronage as follows:

· Aerostar, a prominent flight school, hosts 75 international students annually and 50 experienced pilots monthly for retraining. Currently, these students stay in rundown motels, and pilots lodge 40 minutes away in Orlando. The new hotel will provide convenient and comfortable accommodation, improving the experience for both groups.

· Aviator College, and Avianca also drive demand for nearby lodging, with Aviator College hosting 70 students per semester for four-week periods, and Avianca running a three-week avionics program with 20 students at a time.

· Cirrus Aircraft, known for their parachute-equipped aircraft and annual sales of 400 planes, has a major facility at Kissimmee Airport for new pilot training, yearly certifications, and aircraft maintenance requiring several days of stay in Kissimmee.

KPDG has plans to build a 4-simulator Flight training Campus with supporting classroom areas and student accommodation. The global demand for pilot training will support the remaining patronage at the Hyatt Studios Hotel.

Figure 9- Hyatt Studios Offering Letter of Intent to Franchise a Hyatt Studios at KGA KPDG Hyatt Place Hotel Patronage The Hyatt Place Downtown Kissimmee promises to be an income generator in the Mainstreet Community. The 300-room mid-to-upper-scale hotel and supporting 30,000 square foot conference center are expected to bring patronage to Downtown Kissimmee that will ignite activity in local retail shops and restaurants. KPDG will be working closely with the Kissimmee Chamber to develop a restaurant and retail program for the Hotels that is uniquely Kissimmee. As a mission partner and part of our core IPD Team, the Kissimmee Stakeholders will have input early in the design of the Hotel, Conferences Center, Retail Environment ant the multiple food and beverage options provided.

Proposed 300-room Hyatt Place & Conference Center

Figure 10- Aerial view of proposed development facing west toward downtown Kissimmee The Investment Package We are seeking investment support from an equity Joint Venture partner of 100% of project costs incorporating a grace period for the initial three years of construction. Throughout this grace period, we propose deferring regular interest payments, with both the grace-period interest and principal to be repaid upon the property's eventual sale at the end of the term. Notably, to accommodate projected shortfalls during years 3-4, essential for property stabilization, we anticipate the need for additional borrowing beyond base construction costs for pre-operational expenses during the anticipated 2-year stabilization period for a total of $114,775,964.79.

We are in the process of negotiating Construction and Operational Subsidies with the City of Kissimmee and Osceola County. This incentivization will come from established funding sources such as the CRA Pioneer Fund from the City and the County Tourist Development Tax Dollars fund. We have negotiated key dollars with Hyatt at this time of $660,000 dollars. We have itemized all Costs and anticipated Subsidies in the latest 422-Key Proforma (presented under separated cover).

Anticipated Outcomes The appraiser's analysis anticipates a two-year construction period for Phase I (Hyatt Studios) and three (3) years for the Hyatt Place Hotel and Conference Center, with a total Construction cost of $102.48 million. After 10 years, the net operating income (NOI) is expected to exceed $21.8 million, with an estimated resale value of $225.2 million. The cumulative Net Present Value (NPV) is $209.5 million unlevered, with an Internal Rate of Return (IRR) of 22.96%. This considers the P3 arrangement with the City of Kissimmee and the added value of city resources providing construction and operational subsidies, reducing upfront costs and offering tax abatement relief to boost NOI. The appraiser used conservative estimates for room rates, occupancy levels, and development costs. We expect a higher ROI but base our financials on a conservative model.

b. Implementation, Execution, and Operational Capacity Planned methodology for implementation: Our Integrated Project Delivery (IPD) Team:

The KPDG Executive Leadership Team, delivering the Hyatt Hotels projects, includes a Construction Professional, a Planning & Design Professional, and a Community Outreach Professional, boasting a collective 70 years of experience in performing both public and private projects. Our Integrated Project Delivery (IPD) team includes in addition to our core partners, a certified appraiser, a leading architecture firm with over 50 hotel designs in the past year, and a real estate attorney versed in government procurement and hotel transactions. Resolute Road will manage the hotels and conference center under KPDG's contract. Detailed descriptions of the entire team are provided below.

Our IPD Approach KPDG has assembled the IPD Team for seamless hotel delivery, expertly handling appraisal data, market studies, and securing essential support from Osceola County. This Prospectus is based on an extensive 2018 Hotel Market Study by HVS for the City of Kissimmee, a May 2024 appraisal by Miami Appraisal Solutions, and thorough research by our Development Team. Crane leads as Prime contractor, with Third Voyage Properties overseeing project milestones and payment applications. Juan Lopez handles communications and community outreach. Woolpert provides architectural and engineering services, while EcoStasis ensures environmental permitting. Melissa Montgomery, as in-house attorney, resolves internal agreements and on-site conflicts. Our experienced team foresees that this IPD approach will swiftly resolve on-site conflicts and complications to ensure the projects will remain on track.

Detail the execution timeline and milestones.

Hyatt Kissimmee Gateway Airport is anticipated to an official break-ground in January 2024. The necessary planning, design and engineering (PDE) is in progress. All major disciplines have been onboarded into the IPD Team that meets bi- weekly from November 3rd, 2024, until the project is delivered an occupancy achieved in 2026. Below is a detailed project schedule produced for our IPD Team tracking of the project. We are producing a master schedule including the 300-room Hyatt Place. Site Surveys have been conducted and Concept Site Plan (6) of the 122-room prototype Hyatt Studios Hotel is in progress.

We anticipate the Hyatt Studios project will be completed in the Fourth Quarter of 2026 allowing time for pre-operations to be established and the Hotel to be operational occupied and producing revenue in January 2027. As equity shareholders, we are committed to streamlining the design-build process using this IPD delivery method. In general, building materials will be owner supplied. All FF&E will be direct-to-the-owner supplied. This process will serve to lower costs, minimize lead times and accelerate construction schedules.

The City of Kissimmee as the public partner in this transaction is committed to assisting KDG in delivering these projects to their highest level of quality, on time and within budget. They have extended their development leadership to our team to ensure all the permits are in place from day 1 groundbreaking.

Crane and Associates and The Woolpert Team are experienced design-build experts on large complex public and private projects. The Woolpert Architecture & Engineering Hospitality Team has accomplished 300 hospitality brand hotels over the last decade (see attached profile).

Operational Capacity: including personnel and resources.

A 100% Dedicated Partnership The Project Design Build Team is composed primarily of the three owners we will serve in oversite of the project through the planning, design, construction, pre-operations and operations phases of both Hotels and Conference center. Crane and Associates, Inc., led by one of KPDG Managing Partners, Joe Crane, will serve as the prime contractor and Owner Representative on all aspects of Construction. Santiago Fernandez, also a KPDG Managing partner is Program Manager and owner representative on all procurement of Professional Services and Supplies to the Projects. Juan Lopez, our Managing Partner is our corporate communications expert and will provide internal communication as human resource officer internally and public communications and outreach to the City, The County and the Greater Kissimmee Community.

Operational Management: Resolute Road Hospitality KPDG has enlisted the services of Resolute Road Hospitality (RRH) to perform pre-operations services with the IPD Team.

Resolute Road Hospitality is a national, full-service third-party hotel management company. Resolute Road is an award-winning team that has decades of experience managing hotels. We are an organization built around our most valued resource, people. With roots in hotel ownership, The Resolute Road team has managed hotels as 'owner- operators' for decades and in recent years have expanded into providing third party management since the year 2020.

Resolute Road Managed Hotels earn 18.5% more per room than other hotels in their sub-market. Resolute Road promises to manage the assets with integrity, transparency, open communication and above all, excellent performance. Resolute Road will benefit partially from our profits and pledges to act as your partner and keep our best interest at the center of everything we do. They will be engaged throughout the design to ensure operational efficiencies are in place from the onset. They will bring their years of promotion and management to bear.

The RRH executive team works closely with KPDG General managers and the Hyatt Hotel brands to create strategies, monitor performance, and promote continuous improvement to ensure seamless operations that create positive growth opportunities for everyone involved. RRH on property teams and corporate teams will work together to deliver thorough and timely financial reporting to owners. Reporting includes a detailed review of revenue and sales strategy, operating expenses and market positioning. RRH tried-and-true talent acquisition and leadership development programs are tailored to the needs of each market and property in operation. RRH will support Juan Lopez with HR Management. RRH will work closely with Hyatt Promotions and Experience Kissimmee to promote our hotel venues globally and within the Central Florida travel and tourism market.

Financial Plan Attached in the appendix is an aggregate proforma for the 422 Hotel Keys in Downtown Kissimmee. The proforma is attached as an excel document under separate cover. Construction costs are broken down into HVS development matrix categories and submitted in the Excel Spreadsheet. An Excel Spreadsheet as a Project Summary with Detailed Costs and the necessary capital raise is also attached.

The Proposed Projects will consist of the following profit centers:

1) A 122-room Hyatt Studios Hotel at Kissimmee Gateway Airport

2) A Kissimmee Place Hotel and Conference Center featuring:

a. A 160-room Hyatt Place hotel with 5,000 sf of conference space

b. An additional 140-room expansion to the Hyatt Place Hotel with 25,000 SF of conference space

The total required capital is $ $114,775,964.79 for Project Construction with a Contingency applied of 10% as well as Administrative and Pre-Operation dollars for all phases of the development combined.

c. Required Assessments Our proposal is informed by what KPDG considers to be a comprehensive overview of the current market conditions, the development teams’ capacity to deliver the intended product, the anticipated City of Kissimmee and Osceola County government support, Hyatt Hotel Franchise model information. The aggregate proforma showing construction cost in balance to projected revenues is based on KPDG incorporation of the information in total. This proposal should also be read along with the additional attachments provided in the appendix as noted in the Table of Contents and included as the following list:

Feasibility studies

Market analyses

Legal and compliance certifications

Expert opinion letters as applicable

2. Project Description

a. Goals Mission:

To Design, Build, Finance, Operate and Manage P3 Public, Commercial and Infrastructure Projects within Public Private Partnerships between KPDG and The City of Kissimmee, a State of Florida Municipal Corporation.

Objectives:

Establish Public Private Partnership (P3) as contractual agreement with the City of Kissimmee for a 79-year period

Design 122-room Hyatt Studios and 300 room hotels

Build 422 room and 30, 000 SF of conference space

Finance 100% of the necessary project dollars with venture partner and minimal debt

Operate both hotels for the term of the contract, promote the facilities globally

Manage all assets related to the venture throughout multiple life cycles in an effective manner

b. Target Beneficiaries and Geographic Focus According to Visit Orlando, Central Florida’s premier source of travel and tourism information (including Greater Kissimmee and Osceola County), 74 Million people Visit Orange, Osceola and Seminole Counties annually, the travel and tourism market employs 464,000 workers, generates $92.5 Billion in economic impact, pays $27 Billion in wages and provides $6.6 Billion in revenue. The central Florida Travel and tourism market grew 5.6% between 2023 and 2024. These taxes serve to pay for Arts & Culture Programs, Local Education Programs, Public Safety and Infrastructure.

The primary beneficiaries are patrons, foreign and domestic, seeking reasonably priced options for mid to upper scale lodging in the East Kissimmee Area. Families and Organizations seeking Wedding and Event Options in the East Kissimmee Area will benefit as well.

The secondary beneficiaries are the citizens of Kissimmee who will benefit from a larger tax base, Tourist Development Tax dollars and outside dollars spent in their community at Restaurants and Retail Shops. Small Businesses will benefit from the travel and tourism both local and domestic brought into the community.

According to Visit Orlando, Central Florida’s visitor spending jumped 5.4% in 2023, settling at $58.5 billion from $55.5 billion the previous year. This means that visitors spent more than $160 million daily, reducing the annual tax burden by $7,400 per household in the Orlando region. Of the total visitor spending to the three counties in 2023, 85% was in Orange County, 12% in Osceola and 3% in Seminole County.

KPDG hopes to increase the baseline from travel and tourism spending in Osceola County and target a fractional percentage of what is currently 19.2 million dollars spent in Osceola County Daily from travel and tourism spending.

Demographic segment targeted (A Global Market) In May 2025, Visit Orlando also announced that Central Florida welcomed 74 million visitors, reaffirming its status as the most visited destination in the U.S. Notably, international visitation surged by 25%, reaching 6 million visitors. Spending by international visitors grew by 29% in 2023, reaching $5.4 billion and accounting for 9% of all spending.

(Source: https://www.visitorlando.org/media/press-releases/)

KPDG intends to work side-by-side Visit Kissimmee to increase visitation to Downtown Kissimmee and promote the 422-room venture as two Hyatt Hotels. The details of our intended activity are presented below.

c. Planned Activities and Key Indicators Marketing and Sales Plan As franchise members of the Hyatt Brand, our Kissimmee Hyatt Studios and Hyatt Place Hotels will be promoted through the World of Hyatt Program. This program features over 1,300 locations across 25+ distinctive brands, offering members rewards and new experiences. The Brand Explorer Award provides a free night at a Category 1-4 hotel for every five unique Hyatt brands visited.

Experience Kissimmee Experience Kissimmee (EK), the official tourism authority for Osceola County, will promote our Kissimmee hotels as premier destinations for leisure, business, and sports travelers. EK's sales, marketing, and communications programs attract over 9 million overnight guests annually. Their goal is to position Kissimmee as the perfect balance of thrilling adventures and relaxing moments, enhancing its reputation as a top vacation spot.

EK's campaigns highlight Kissimmee’s access to theme parks and outdoor experiences, offering visitors unique attractions like zip lining over alligators, shopping, and memorable dining experiences. With over 70,000 accommodation options, visitors can find their perfect stay. We will collaborate with over 900 local partners to promote the Kissimmee Gateway Airport Hyatt Studios and Kissimmee Place Hotel and Conference Center, showcasing everything Greater Kissimmee has to offer.

Weekly Marketing activities:

The KPDG Operations Team led by our Consultants at RRH will, qualified leads, store traffic, or appointments by way of the following list of planned activities:

Please visit Experience Kissimmee at https://www.experiencekissimmee.com

Define key performance indicators (KPIs) to measure progress KPDG is a profit venture and will measure performance primarily based on revenue generation. Year on Year differences in keeping with CPI and like market trends will be measure from data collected in the Central Florida Market as expressed above with inputs from organizations like Visit Orlando and Experience Kissimmee. We will receive monitor information from Hospitality Sector Reports such as the Smith Travel Research (STR) monthly data. STR delivers data and analytics that are confidential, accurate and actionable, and our comprehensive solution empowers KPDG to strategize and compete within the Greater Orlando/Kissimmee/Sanford MSA.

RRH as our Hospitality Consultant has performed a Five-Year Baseline Proforma Model metric expectation of the revenue for both a 122-room Hyatt Place and a 200-room Hyatt Place at a first-year entry into the Greater Kissimmee Market in Q4 of 2026. Changes Occupancy Rates, Average Daily Rates & ultimately, Revenue Per Average Room Rate (RevPAR) to this five (5) year Baseline Revenue Generation and Operational Cost Model as projected will serve as the Key performance indicators of our success. We will monitor progress monthly for shareholders and report our progress annually as a Fiscal Year report.

Business Plans will be updated annually beginning with strategic sessions in October of the previous year. Annual reports will be created by the end of the year for valuation and reporting of equity increases. Shareholder equity will be evaluated by a third-party financial group and distributed annually.

d. Assumptions and Risk Mitigation Strategy KPDG interviewed key tenants throughout the past year of the Kissimmee Downtown area including downtown Café owners and shopkeepers, as well as airport flight school owners at KGA to better understand the needs of the community. It was evident from these interviews that the community was underserved with regard to short-term lodging and mid to upper-level quality extended hotel stays.

Key Assumptions made through the Planning Phase were that in answering this need for lodging, the projects analyzed, whether hotels or apartments, should be profitable ventures on their own merit. The land component was understood to be nearly 12% of the total project costs for development. The City owned land in the Downtown CRA District that was underserved, and that if developed under a P3 scenario would benefit the City of Kissimmee, by priding inner City lodging and delivering a return on investment to the general public both as an Ad Valorem proposition as well as the project’s ability to draw patronage to the Downtown Area. The City owned airport land north of Martin Luther king Jr. Boulevard has remained undeveloped since its availability. KPDG investigated both this site at the Airport and the Downtown Toho Square Site. All projects, as noted in the above introduction section, came back with double figure returns.

The KPDG Team saw the opportunity to both create a public private partnership with the city for the use of these lands as well as form the P3 entity Kissimmee Place Development Group, Inc. so that publicly owned assets could be presented into the project readily and the City could bring all efforts of the public realm to mitigate project risk. Subsidizing public space and amenities through the County Tourist Development Tax Dollar (TDT) would benefit the community in providing the sought-after conference space and necessary parking for community events and group meetings.

KPDG is in final negotiations with the City regarding land lease agreements and has begun early communications with the County regarding public conference space funding from TDT sources. The Phased Development Strategy is for KPDG to begin construction ground-breaking in Q1 of 2025 for the Hyatt Studios project at KGA. This project has the least path of resistance as it is a prototype build and can earn revenue in 18 to 24 months from its inception date. Phase II the Hyatt Place Build will be developed in two parts. Phase IIa will be the 160-room Hyatt Place build as a prototype Hotel. There will be some level of customization within the first three floors to accommodate structural parking and retail space at the ground level as necessary. This build will accommodate prototypically 5,000 sf of conference space on the second and third floors. Phase IIb is a variable build at this time. The remaining 140 rooms are intended be built as prototypical Hyatt Place rooms. The primary risk and ultimate reward for this build is 25,000 sf of additional conference space. KPDG will negotiate subsidies from the City and County to accomplish the Kissimmee Place Conference Center that will be housed in the North portion of the Toho Square Site. Revenues from this portion of the project will raise the project internal rate of return (IRR) near 22%.

KPDG will employ an Integrated Project Delivery (IPD) method which is essentially a design-build procurement where the owner retains managerial control over the D-Build process. We understand this managerial control will help us to mitigate design- build construction risk in that Crane as the Prime contractor and equal partner in this venture will serve as Owner Authorized Representative throughout the Design-Build process.

Third-Party Vendor Risk Mitigation is also a concern we have intentions to mitigate. We intend to deliver the Hyatt prototype as totally owner furnished endeavor. This accounted for in our proforma as the procurement methodology itemization. KPDG Operational Risk Management is made easier in that we have strict procurement protocols applied from the acquisition of professional services to the control of Operational expenditures to Capital Expenditures. Project Controls are in place to ensure that our project approach as Owner Authorized Representatives in oversight of the Design, Building, Operations, Management and Maintenance of the project will be successful in keeping cost low while ensuring that revenue generation optimized.

e. Project Management Arrangements Team structure, roles, and responsibilities.

The following charts explain how the KPDG venture will be managed and operated. The Executive Leadership Team ELT consists of our three Managing Partners who will also serve as the managing Board of Directors. The ELT will be supported by our in-house Legal Counsel and our Comptroller. Investment partners will remain in contact with our board of directors and will be considered silent partners throughout the life of the venture. The City of Kissimmee will be a direct P3 investment partner in the venture and will have specified points of contact and inputs contractually throughout the life of the venture. KPDG will produce an annual report to communicate the state of the venture to all investment partners. The ELT will serve as Owner Representatives through Construction and serve as Oversight Managers during Operations.

KPDG Mission: “To Design, Build, Finance, Operate and Manage Public, Commercial and Infrastructure Projects within Public Private Partnerships(P3) between KPDG and The Federal Agencies, State Agencies, County Administrations and Municipal Corporations.”

Operational Structure Daily operation will be managed during two distinct modes, Project Capitalization & Program Operations. During construction the focus will be on Capital Expenditure and Construction Project Delivery. The IPD Team will be fully assembled including our in-house General Contractor, Program Manager and Communications Director (see IPD Chart above). After construction we will focus more on Operational Expenditures and streamlining Program Operations to ensure profitability. All procurement of Professional Services will be scrutinized in Procurement Review Committee and according to our corporate protocols prior to execution. Our Professional Services Committee will oversee the selection of goods and services providers. Lastly, all Contracts whether in execution and or closing will be managed by our Contract Services Committee. All vendors will be processed in this manner.

KPDG Management Chart

KPDG Holding Companies, Governance and Reporting KPDG is a C- Corporation established in the State of Florida. It functions distinctly as a holding company for three (3) subsidiaries of KPDG that are C-Corporations in the state of Florida and are focused on performing Commercial Real Estate transactions for separate purposes. Each Land hold will be a separate venture and is considered severable as its own profit center. KPDG-KISM will hold all Kissimmee Gateway Airport Related Ventures. KPDG-TOHO will encompass all Lake ‘Toho’ waterfront related projects. All program management decisions, financial distributions and project accountability will occur through KPDG-EDCA. The KPDG comptroller will be in oversight of all pay applications for product delivery and professional services rendered.

3. Government and Communities

a. Necessary Permitting or Approvals Shown below is a sample schedule from a previous Hyatt Place Project of similar size. The Schedule shows a detailed outline as to permitting applications anticipated and duration of time for obtaining these permits.

b. Participation of Beneficiaries The Partnership is established to allow for the contractual contribution of assets and equity between the City of Kissimmee and the Private Entity. Kissimmee Place Development Group Inc. is the Economic Operator and ‘Special Purpose Company that will facilitate all transactions. KPDG is granted all Right to Design Build Operate and Manage the assets through the Public private Partnership Agreement.

The City of Kissimmee is a Key Stakeholder and will have participation early in the hotel branding process. The Investment Partners as Lenders remain silent partners throughout. They are compensated through predetermined Senior Debt Agreements and Senior Equity Agreements. A monthly report will be distributed of progress to all Key Stakeholders and will be available electronically.

c. Partnership Structure There are three equity Partners as Board Officers under KPDG. They are compensated through equity percentages that are predetermined in shareholder agreements. KPDG will serve as the company in oversight of the Development Project and in Oversight of the Management of the Hotels and CRE assets. The IPD Team has been contracted by way of Professional Services Agreement Contracts. Hotel Management Services will be contracted by way of 3-to-5-year Management Services Agreements.

d. Coordination KPDG-EDCA will remain the Program Management Entity in oversight of Operations and Maintenance of the assets. Specialists are in place as extension of staff services to ensure contracts are met and compensation in appropriately distributed. The KPDG comptroller, Alisha Stewart, and our in-house legal counsel, Melissa Montgomery, will assist Program manager, Santiago Fernandez in ensuring that all project deliverables have been met prior to contract compensation.

Weekly progress meetings. Monthly updates. Annual Reports. All reporting efforts will be managed through KPDG-EDCA to avoid duplication of efforts. All P.O.C. and public communication efforts with stakeholders will occur through KPDG-EDCA.

e. Environment The following language is embedded into our lease agreement in anticipation of any environmental regulations we will adhere to in development and operations KPDG will adhere to all applicable laws.

Environmental Laws shall mean and include all Federal, State and local statutes, ordinances, regulations and rules relating to environmental quality, health, safety, contamination and clean-up, as they currently exist or may exist in the future, including, without limitation, the Clean Air Act, 42 U.S.C. §7401 et seq.; the Clean Water Act, 33 U.S.C. §1251 et seq.; the Water Quality Act of 1987; the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), 7 U.S.C. §136 et seq.; the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. §1401 et seq.; the Noise Control Act, 42 U.S.C. §4901 et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. §6901 et seq., as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. §300f et seq.; the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §9601 et seq., as amended by the Superfund Amendments and Reauthorization Act, and the Emergency Planning and Community Right to Know Act, and the Radon Gas and Indoor Air Quality Research Act; the Hazardous Material Transportation Act, 49 U.S.C. §9601 et seq.; the Toxic Substance Control Act (“TSCA”), 15 U.S.C. §2601 et seq.; the Atomic Energy Act, 42 U.S.C. §2011 et seq.; and the Nuclear Waste Policy Act of 1982, 42 U.S.C. §1010 et seq.; all State environmental protection, super lien and environmental clean-up statutes, with implementing regulations and guidelines and all local laws, regulations and ordinances insofar as they are equivalent or similar to the Federal laws recited above or purport to regulate Hazardous Materials, and judicial interpretations of each of the foregoing.

We will perform general sustainability measures throughout both hotels implementing when possible best practices as follows:

Energy conservation Amenities Waste reduction and efficiency Promoting sustainable means of transportation Choosing cleaning products wisely with minimum impact on the environment Careful selection of local food products at the hotel restaurant Encouraging guests to make sustainable decisions Promoting ecotourism Water conservation Operational changes necessary to reduce waste

4. Monitoring and Reporting of Execution and Operating Plan

a. Monitoring Framework The Kissimmee Place Development Group (KPDG) will utilize Sage software for comprehensive project monitoring. This will include tracking financial performance, procurement schedules, resource allocation, and construction progress. Sage Intacct, in particular, will provide real-time data analysis, variance tracking, and compliance monitoring.

Tools

· Sage Intacct: For financial management and KPI tracking

· Sage Construction and Real Estate (CRE): For project-specific milestones, scheduling, and materials tracking

· Integrated Dashboards: Centralized monitoring of costs, timelines, and performance metrics Frequency

· Daily: Real-time updates and issue alerts using Sage Intacct

· Weekly: Performance summaries generated by Sage CRE

· Monthly: Comprehensive variance and compliance reports shared with stakeholders Baseline Data Key performance indicators (KPIs) will be based on project timelines, budgets, and initial resource allocations. Baseline data is established using the financial proforma and market analyses outlined in the business plan.

Periodic Reviews

· Quarterly Reviews: Detailed reviews of financial health and project milestones

· Annual Audits: Conducted to ensure compliance with contractual obligations and financial targets

b. Reporting Mechanisms Reporting Formats

· Standardized reports generated through Sage Intacct in PDF and Excel formats

· Visual dashboards showcasing real-time data and trends

· Custom project reports with charts and summaries available through Sage CRE Schedules

· Weekly Reports: Progress summaries delivered each Friday to internal teams

· Monthly Reports: Financial and construction updates sent to stakeholders on the last business day of the month

· Annual Reports: Comprehensive review prepared at the end of each fiscal year

· Internal Teams: Project management and finance teams to ensure project alignment

· City of Kissimmee and County Officials: To track public-private partnership (P3) objectives and outcomes

· Investors and Lenders: Regular updates to ensure transparency and build trust

· Hotel Management Teams (Resolute Road Hospitality): To align construction with operational goals image2.jpeg image3.png image4.png image5.png image6.png image7.png image8.png image9.png image10.png image11.emf image12.png image13.png image14.emf image15.png image16.jpeg image17.png image18.png image19.png image20.png image21.png image22.png image23.png image24.png image25.png image26.png image1.png