ELF Common Share Offering
- 1. Corporate Housing Solutions for Corporations and Industries
- 2. Lodging solutions tailored for workers and industries needs Silicon Valley Executive Homes (Corporate team & Executives) ELF Express Hotel (Refinery & Construction workers) Boutique Hotels (Tech Professional (San Francisco)) Key Ingredient: Corporate Relationships Stanford University, Cisco Intel, Facebook Tech Crunch, Celtic Media Centers, Law Firms, Incubators, Insurance, Relocation, Development Teams
- 3. Corporate-Stay Model Positive Impact on All Key Real Estate Metrics Rental Rents (2X to 3X unfurnished long term rates) Occupancy 85% to 100% Hotel rates w/o the high operating costs Improves Cap Rate (to 12 to 13%) National Avg. Cap Rate (7%) Cap Rate= Net Operating Income/Property Value Higher Cap Rate = Higher Property Value
- 4. Case Study: 2 bedroom 1.5 bath Mountain View, CA Since June, 2012 Unfurnished Market Rent: $2,500.00 Furnished Average Earnings: $5,662.50 Over double market rent!
- 5. Value of Corporate-Stay Generate Superior Cash Flow Assemble Valuable Real Estate Portfolio High Rents > NOI >High Debt Coverage > Access to Financing High Occupancy> NOI> Profitability >Financing> Shareholder Returns Extended Stay <lower expenses > NOI> Cap Rate> Values Improves Cap Rate(12 to 13%)> Increases Property values Cap Rate= Net Operating Income (NOI)/Property Value Property Value = NOI/Cap Rate Increase Property Value with Corporate Stay Eventual Upload Portfolio to REIT
- 6. ELF Homes, Inc. Assignment Worker Hotels ELF Express Hotel Baton Rouge Silicon Valley Executive Homes Expand Properties Tech Professional Hotels San Francisco 28 Room Hotel
- 7. How Do We Differentiate?
- 8. 1. The Right Location Close to large corporations Walking distance to restaurants Close to public transportation Safe neighborhood 2. The Right Property One bathroom per bedroom Private yard One bedroom/bath on first floor Accessible shower In-home laundry Updated kitchen Multiple work spaces At least two bedrooms Purchase price under 1.5M 5 Key Success Factors
- 9. 3. Decorate to Impress Do it professionally Choose a color scheme to pop Avoid the Ikea look Get professional photos 4. Amenities & Service Use luxury linens Fully outfit the kitchen Provide double supplies Set up your maintenance ahead of time Train your cleaners properly Go for a high level of customer service to attract the right guests 5 Key Success Factors
- 10. 5. Advertising & Sales Credibility is critical Establish a web presence Start with Homeaway and Airbnb (ELF uses 15+ sites) Respond to inquiries within 2 hours Build reviews & references Reduce rates in slower seasons (esp May and December) Don’t book ahead – 30 day window for short stays Use your best professional photos 5 Key Success Factors
- 11. Van Ness Tech Hotel San Francisco, CA Following up our expansion to San Francisco Property Facts JV with Urban Pioneer 28 hotel rooms Ideal Location
- 12. Revenue Growth $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2009 2010 2011 2012 2013 Projected 2014 In USD 4 houses 7 houses 12 houses 10 houses 14 houses
- 13. Use of Proceeds Double the number of Doors offered by ELF Homes, Inc. Add more properties to Portfolio Offering of Common Stock