Invest in development of a 5-star all inclusive beach resort & spa near Cartagena, Colombia. Book early to receive valuable incentives. Experienced team of developers, architects, hotel managers. Hotel will be operated by one of the top brands in the luxury all-inclusive hotel category

1. Investment Opportunity

2. INVESTMENT
 Series 1 Non-Voting Units
 Name: Development of a 5-star Hotel & Resort in
Cartagena/Colombia
 Number of units: 5,000
 Price per unit: $1,200
 Annual dividend: 12%
 Redemption: Greater of market price and the issue
price per unit at end of the fourth year

3. VISION
 BUILD A UNIQUE, LUXURIOUS BEACH RESORT & SPA IN
CARTAGENA
 THE ONLY 5-STAR ALL-INCLUSIVE
 WITH ADULTS ONLY AND FAMILY SECTIONS
 BUILT AROUND A MASSIVE BLUE WATER LAGOON

4. MARKET OPPORTUNITY
 CARTAGENA is an emerging mass market tourist
destination, reminiscent of the Mayan Riviera & Punta
Cana in their early development

5. THE PROBLEM
 Successful vacation destinations offer a full range of
hotel types
 Cartagena falls short on luxury all-inclusives. There are
only two all-inclusive hotels in Cartagena and none of the
hotels planned and under construction have been
designated as all-inclusive.
 All-Inclusive vacationers search for new destinations and
a “different experience”
 Cartagena & its historic center fill the first need but
current and new hotel developments are not meeting the
differentiation need

6. OUR PRODUCT
 5-star All-Inclusive Resort & Spa
 Massive Lagoon with a Blue Water, White Sand Beach – the only one in
Cartagena
 Two hotels in one...Adults Only and Families
 Luxurious Villas & Rooms in and around the lagoon. None less than 60 m2
 Gourmet Dining – 6 dining venues, providing a unique, high quality culinary
experience
 Variety of Pools
 Entertainment that dazzles
 First class Spa & Sport complex
 Child’s Play - multi sensory nursery, unique outdoor play facilities and the
highest quality childcare

7. CONCEPT
 Hotel design taken from two concepts:
 Villas in the water (Maldives)
 Man-made blue water lagoon

10. THE MASTER PLAN

11. VILLA SUITES

12. HOTEL TOWER

13. Hotel Cost
 Capital Cost – US$100million
 Land $16,000,000
 Construction Costs $44,000,000
 Furniture & Fixtures $11,000,000
 Professional Fees & Services $ 7,000,000
 Working Capital $15,000,000
 Capitalized interest $ 7,000,000

14. SOURCE OF FUNDS
• Crowdfunding $ 6,000,000
• Debt Financing $ 45,000,000
• Sale of Real Estate $ 57,000,000
• Total $108,000,000
 NOTE: $6,000,000 of the Sale of Real Estate proceeds will be used to
redeem the Series 1 Units and $2,000,000 will be used for working
capital.

15. TRACTION
 PROMOTER: Alberto Araujo, part of team that built two hotels
 DEVELOPER: Fernando Araujo & Prodegi, led the design and
construction of hotels in Cartagena & Panama
 ARCHITECT: Carlos Ott, known for award-winning designs
 HOTEL MANAGEMENT COMPANY: Karisma, offers a unique,
luxurious product and complete distribution system
 REAL ESTATE COMPANY: Araujo y Segovia, one of the largest
real estate companies in Colombia will lead the marketing
and selling of real estate to Colombian investors
 LAND: 91 hectares prime, spectacular beach front real estate

16. KARISMA HOTELS & RESORTS
 Brands
 El Dorado Spa Resorts & Hotels - Adults Only
 Azul Hotels - Adults & Families
 Gourmet Inclusive® Experience
 Hotel operations in Colombia, Mexico, Jamaica, and Europe
 Knows Colombia
 Supported by an extensive Tour Operator Network
 Centralized marketing, sales, call centre, social networking

17. MARKETING
 Winter primary markets
 Northeast & Midwest USA
 Canada
 Colombia
 Summer primary markets
 UK & Europe
 Southern USA
 South America
 Colombia

18. GROWTH STRATEGY
 Core Tour Operators: will add origin markets
 Specialty tour operators: new origin markets
 Piggyback on expected airline flight frequencies and
continuous promotions

19. COMPETITION
 In Cartagena
 All-inclusive Hotels:
 Decameron Baru
 Occidental Grand Cartagena
 4 and 5 Star EP Hotels
 Other vacation destinations 4 and 5 Star All-inclusive
 Mexico: primarily Cancun/Riviera Maya
 Dominican Republic: primarily Punta Cana
 Cuba
 Caribbean

20. SWOT analysis
 STRENGTHS
 Hotel Concept
 2 hotels in one
 Experienced Team
 Cartagena & its historic center
 Reliable year round warm
weather
 Karisma
 OPPORTUNITIES
 Develop extra land
 WEAKNESSES
 Colombia’s reputation
 THREATS
 Lack of airlift to Cartagena
 Hotel capacity

21. REVENUE MODEL
 Several channels of distribution in play:
 Tour operators
 Online travel agencies
 Travel agency networks
 Direct sales
 Convention organizers
 Rates for each depend on commitment and volume

22. REVENUE MODEL
Base Room Rates AIPPPN Mix US$ COP$
(all-inclusive per person
per night)
HOTEL ROOMS
Tour Operators $100 35% $35
Online Travel Agencies $120 35% $42
Groups and Conventions $160 10% $16
Atolones Direct Sales $160 20% $32
$125 $312,500
$310,000
VILLAS
Tour Operators $140 25% $35
Online Travel Agencies $170 40% $68
Groups and Conventions $220 10% $22
Atolones Direct Sales $220 25% $55
$180 $450,000
$450,000
VILLA SUITES
Tour Operators $175 15% $26
Online Travel Agencies $210 45% $95
Groups and Conventions $280 10% $28
Atolones Direct Sales $280 30% $84
$233 $581,875
$580,000

23. -
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 10
US$millions
Summary Income Projection
Sales
EBITDA
Income After Tax

24. FINANCIALS – in COP$MILLIONS
Year 1 Year 2 Year 3 Year 4 Year 5 Year 10
Sales $120,117 $131,023 $142,644 $155,446 $168,199 $229,980
Direct costs 30,592 33,617 36,869 40,474 44,117 58,611
Direct profit 89,525 97,406 105,775 114,972 124,081 171,369
Operating exp. 44,094 47,437 50,985 54,861 58,747 78,032
Asset Replacement 4,204 5,241 5,706 6,218 6,728 9,199
Mgmt Fees 8,842 9,625 10,521 11,511 12,488 17,491
EBITDA 32,385 35,103 38,563 42,382 46,118 66,647
Depreciation 12,275 12,275 12,275 12,275 12,275 12,275
Non operating 14,065 13,712 13,034 12,224 11,401 8,121
Income Before Tax 6,045 9,117 13,253 17,883 22,443 46,251
Cree tax 544 820 1,192 1,609 2019 4,162
Income After Tax 5,501 8,297 12,061 16,274 20,424 42,089
Net Margin 5% 6% 8% 10% 12% 18%
Occupancy 65% 68% 71% 74% 77% 80%
ADR per Person 444,692 462,840 480,979 500,218 520,226 691,623

25. FINANCIALS – in US$000’S
Year 1 Year 2 Year 3 Year 4 Year 5 Year 10
Sales $44,620 $47,714 $50,926 $54,409 $57,721 $71,489
Direct costs 11,364 12,242 13,163 14,167 15,140 18,219
Direct profit 33,256 35,472 37,763 40,242 42,581 53,270
Operating exp. 16,379 17,275 18,203 19,202 20,160 24,256
Asset Replacement 1,562 1,909 2,037 2,177 2,309 2,860
Management Fees 3,285 3,505 3,756 4,029 4,286 5,437
EBITDA 12,030 12,783 13,768 14,834 15,826 20,717
Depreciation 4,560 4,470 4,382 4,296 4,212 3,816
Non-Operating 5,225 4,993 4,653 4,279 3,912 2,524
Income Before Tax 2,246 3,320 4,732 6,259 7,702 14,377
Cree Tax 202 299 426 563 693 1,294
Income After Tax 2,043 3,021 4,306 5,696 7,009 13,083
Net Margin 5% 6% 8% 10% 12% 18%
Occupancy 65% 68% 71% 74% 77% 80%
ADR per Person 165 168 172 175 179 215

26. OUR DEVELOPMENT TEAM
The Architect: Carlos Ott The Developer: Fernando Araujo
Founder: Leo DesrochersFounder: Alberto Araujo

27. OUR BOARD
LEO DESROCHERSALBERTO ARAUJO
JUAN JAIME FLOREZ CAMILLO CAVIEDES

28. KEYS TO SUCCESS
 Product Differentiation; value for money
 Karisma’s 5-star management and their distribution
system
 An outstanding service ethic from top to bottom
 Cartagena’s growing appeal

29. INVESTMENT
 Series 1 Non-Voting Units
 Name: Development of a 5-star Hotel & Resort in
Cartagena/Colombia
 Number of units: 5,000
 Price per unit: $1,200
 Annual dividend: 12%
 Redemption: Greater of market price and the issue
price per unit at end of the fourth year

30. USE OF CROWDFUNDS
 Land Purchase – payments 1 & 2 US$5,323,000
 Startup Funds 367,000
 Design Work 180,000
 General Working Capital 130,000