HOTELA Appendix

📋 Executive Summary

The global hotels & resorts industry continues its strong post-pandemic recovery, with 2025 projected to be a record-setting year. According to IBISWorld's latest data, global revenue for this sector will reach ¥270 trillion in 2025 ($1.8T USD @ ¥150/USD). This massive expenditure vanishes the moment guests check out, with zero residual value or ownership rights—a fundamental inefficiency that HOTELA addresses.

📊 Market Size & Growth

• Current growth driven by pent-up pandemic demand, rising disposable incomes, and emerging market expansion
• Growth expected to normalize after 2025 with CAGR forecast of 4-7% from 2026 onward

🏨 Segment Breakdown

🥂 Luxury Hotels (2025)

Key Drivers:

• Affluent consumer demand for premium, boutique, and wellness-driven experiences
• Expansion of global luxury hotel brands in Asia-Pacific and the Middle East
• Rising importance of eco-luxury and personalized digital experiences

Other Segments:

• Mid-scale & Budget Hotels: Lead in occupancy rates due to competitive pricing and business travel resurgence
• Resorts: Growth driven by work-from-anywhere trends and all-inclusive destinations

🌎 Regional Revenue Share (2025)

🔍 Key Trends & Drivers

• Post-pandemic rebound: Massive rebound in travel demand since 2021, with global tourism at 90-95% of pre-pandemic levels in 2025
• Luxury travel boom: Upsurge in personalized and experience-driven luxury tourism
• Technology & digital transformation: Increased use of AI, smart rooms, mobile check-in, and contactless services
• Sustainability focus: Eco-conscious travelers driving demand for green hotels and responsible hospitality operations
• Geopolitical & economic factors: Inflation, currency fluctuations, labor shortages, and regional instability remain external risks

🏢 Key Players

• Marriott International
• Hilton Worldwide
• Accor Hotels
• Wyndham Hotels & Resorts
• InterContinental Hotels Group (IHG)

These companies continue global expansion via franchising and acquisitions, with a growing focus on luxury and lifestyle sub-brands.

📈 Outlook

After rapid post-COVID recovery, revenue growth is expected to stabilize from 2026 onward.

The global hotels & resorts industry remains one of the largest and most profitable verticals in the global travel ecosystem, buoyed by innovation, rising demand, and digital transformation.

Revenue Streams

Japanese Property Law Compliance

• HOTELA Days™ structured as registered property rights under Japanese law
• Full compliance with Financial Services Agency (FSA) regulations
• Partnership with licensed real estate transaction specialists
• Clear ownership rights transferable through inheritance

Market Positioning

📍 Property Overview

💰 Funding Sources

• Initial Investor Loan (2022): Strategic loan from early believer in the HOTELA vision
• Personal Business Funds: Reinvested profits from Kyle Burns' other successful ventures
• Company Divestments: Proceeds from sale of majority of previously owned companies to focus on HOTELA
• Total Cash Deployed: ¥400 million for property acquisition

🏗️ The COVID Opportunity

The Niseko property presented a unique opportunity born from pandemic-era challenges:

• Original Developers: Hong Kong-based investors unable to enter Japan during COVID-19 border closures
• Construction Challenges: Unable to raise funds remotely to pay construction contractors
• Accumulated Debt: ¥1.8 billion in construction and contractor debt accumulated during development
• Distressed Sale: Developers needed immediate liquidity and local management presence

📊 Strategic Debt Management

HOTELA has successfully restructured the assumed debt:

✨ Value Creation