INVEST IN ULTRA LUXURY TRAVEL
UTOPIAN LVH IS A $6,000,000 PRE-IPO INVESTMENT OPPORTUNITY IN THE LUXURY SHORT-TERM RENTAL INDUSTRY.
With over $600,000,000 in assets under management in seven highly sought-after vacation destinations in North and Central America, Utopian LVH is an emerging market leader and an Inc. 5000 company, experiencing 26.7% year-over-year growth since 2015.
Proceeds from this raise will primarily be used to fund acquisitionsI. One potential acquisition current under LOI will add 65% to Utopian's gross income, increase Utopian LVH oeprating revenues from $4.2M to 7.1M and will more than double EBITDA to $1.954M in 2018. Following the acquisition, Utopian LVH’s gross revenues are projected to exceed $24M over the next 12 months.
Following the successful capital raise Utopian LVH intends to file a Qualified Offering to begin trading as a public company.
|Utopian, Target & Combined 2018 Summary (000’s)|
|Cost of Goods||$7,958||$5,030||$12,988||67%|
|Normalized Net Income||$845*||$1109**||$1,954||131%|
|*Excludes 2018 revenue and expenses associated with discontinued destinations. Includes savings resulting from reorganization and a corresponding reduction in headquarters personnel.|
|**Excludes trailing revenue from December 2017 transactions among other adjustments.|
The uses of funds include the following:
To Seller for Acquisition: $3.0M
Interest and equity Reserve: $2.0M
Utopian LVH is a leader in vacation rental-management services for luxury homeowners and their guests. Headquartered in Park City, Utah, Utopian LVH represents luxury and ultra-luxury homes in key vacation destinations, including Park City, Palm Springs, Hawaii, Lake Tahoe, Arizona, and Belize. We manage properties exclusively, outfitting, staging, photographing, and marketing them to luxury clientele throughout the world, maintaining them to luxury standards, and providing the ultimate in concierge, housekeeping, and home services to homeowners and guests.
In a very real sense, each of our destinations is comparable to a luxury hotel that is collectively owned by our homeowners. Utopian LVH is the hotelier.We take care of the properties, market the properties, take reservations, register our guests, and provide guests and owners with the ultimate in guest services during their stays.
Utopian LVH’s mission is to deliver an exceptional selection of luxury vacation residences, unparalleled professional service, and a consistent world class experience to the benefit of all stakeholders.
A Lack of Consistency in Short-Term Luxury Rentals
We formed Utopian LVH in 2011, because we could see that the short-term rental market was failing to meet the needs and expectations of its luxury clientele.
Luxury clientele—people who can afford to rent luxury properties at premier vacation destinations—are accustomed to staying in top luxury hotels, where they know they will receive the highest standards in accommodations and service. But when they rented a luxury home for their vacation, other than as shown by pictures, they did not know what they would get. What was missing most from their luxury vacation rental experience was a consistent luxury standard, like they found at the Ritz Carlton, Four Season, or Fairmont—and the confidence that it would be delivered.
It was not only guests who were adversely affected by lack of a consistently applied luxury standard. Homeowners were often adversely affected as well, because they did not have confidence in the care, custody, and control of their vacation home, and they did not know what to expect when they returned.
A World-Class Hospitality Platform
Utopian has aggregated luxury homes and paired them with a hotel-like organization and infrastructure to provide our homeowners and guests with a consistent, luxury, experience across all properties within each destination.
The Business Model
Every Guest is a Potential Homeowner
Utopian LVH’s business requires the aggregation of luxury vacation homes in golf, beach, or mountain/ski destinations. We are able to aggregate homes because we provide owners with better return on investment, better service, and greater peace of mind, all of which leads to homeowner referrals and a stable inventory. In mature markets such as Park City, our annual turnover is below five percent.
Utopian LVH is a Leader in a Growing Market
The short-term luxury-rental market is a $167.9B* industry and is experiencing 13.5%** year-on-year growth in the US.
Like most luxury hotels, Utopian uses its own web-site and its own dedicated sales team to book guest stays, but we also distribute our offerings and book through third-party booking agents (also known as distribution channels) such as AirBnB, VRBO, and Bookings.com.
Utopian currently receives 48% of its bookings through third-party channels. 52% of our bookings are direct. As we expand the Company, we will strengthen our brand, develop relationships with our guests, and improve our percentage of direct bookings. Our goal is to have 80% of our booking direct within five years.
Capitalizing on Success
Since its founding in Park City in 2011 by seasoned entrepreneur Jeff Jenson, Utopian LVH has been growing annually by 20% to 40% with no outside capital.
This organic growth has refined the company's business model within its three market segments: premier beach, mountain/ski, and desert/golf destinations.
Having spent eight years, building a hotel-like organization and infrastructure and developing relationships with homeowners and guests, our growth strategy is able to capitalize on the foundation we've already built as we expand within mature, emerging, and new markets.
The Company’s goal is to achieve 50 worldwide markets with at least 50 residences per market. Our strategy for achieving that goal is to grow by entering underserved markets before entering contested markets. We will augment our organic expansion by making targeted acquisitions of successful luxury vacation rental companies whose ownership seek an exit. We conservatively estimate that each market with 50 residences will generate $5M+ in gross rental income and fees and contribute $650K to Utopian LVH’s EBITDA.
The Marketing and Sales Strategy
Building a Focus on Services Leads to Repeat Customers
The marketing team at Utopian LVH focuses on new-media and traditional approaches to marketing. In addition to a powerful, optimized website, Utopian LVH makes appropriate use of third-party booking services such as AirBnB, VRBO, and Bookings.com to drive sales.
A Service Platform that Sets Us Apart
Utopian LVH’s business is to provide luxury vacation rentals to a luxury minded clientele. Each of our destinations is comparable to a luxury hotel that is collectively owned by our homeowners. We are the hotelier who takes care of the properties, markets the properties, takes reservations, registers our guests, and provides them with the ultimate in guest services during their stays.
A High Standard of Excellence and Experience
Founder Jeff Jenson has a capital markets background and has taken over 70 private companies public. The team also has a combined 60+ years in marketing and business development experience and over 100 years of combined experience in the hospitality sector, primarily with ultra luxury resorts.
We are dedicated to making rental home Ownership stress-free. We take pride in protecting owner assets and providing all stakeholders with the luxury experience they deserve.
Continuing to Grow as a Leader in the Industry
With the proceeds from this raise that will be devoted to infrastructure, we will continue development of a customized version of the Light Maker Property Management system (“LMPM”), with which we went live in November of last year. The further development of LMPM will extend the capabilities of Utopian’s property management systems down to the guest/owners in the form of iPad Home Manuals and down to housekeepers, maintenance personnel, and guest services personnel by way of mobile devices and associated applications.
We have invested in a talented and experienced team at Utopian LVH, and we want to continue to grow that team. With the funds from this raise, we plan to hire two more full time employees to our marketing team and allocate more funds to marketing efforts. We also plan on hiring a full time HR/administrative professional and a seasoned hospitality expert currently working as an independent contractor as a full time employee in Southern California.
This offering is the Company’s first attempt at raising outside capital, so it provides a unique opportunity for individual investors to get in early without incurring many of usual startup and early-stage risks. Join us today in setting the industry standard for world-class vacation experiences!
Utah 100 winner, ranked as one of the fastest growing companies in Utah #38October, 2018
Inc. 5000 winner, ranked as one of the fastest growing companies in America #4181August, 2018
Utah 100 winner, ranked as one of the fastest growing companies in Utah #75October, 2017
Inc. 5000 winner, ranked as one of the fastest growing companies in America #914August, 2017
Inc. 500 winner, ranked as one of the fastest growing companies in America #350August, 2015