Utopian is an inc500 growth company recipient in the luxury short term vacation rental sector. Our brand promise is ROI & our mission is to create a world class experience for all stakeholders.
UtopianLVH is a leader in vacation rental-management services for luxury homeowners and their guests. Headquartered in Park City, Utah, UtopianLVH 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. 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.
UtopianLVH’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 UtopiaLVH in 2011, because we could see that the short-term rental market was failing to meet the needs and expectations of its luxury clientele.
That Luxury clientele—people who can afford to rent luxury properties at premiere 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 kind of sheets and towels could they expect? Whether there would be an adequate supply of the wide variety of glasses, wine glasses, and champagne flutes. Whether there would be all the tableware, silverware, required for entertaining. Would the kitchen have good pots and pans? Whether there would be housekeeping services, concierge services—any luxury services at all. What was missing most from their luxury vacation rental experience was 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 homes and did not know what to expect when they returned.
Utopian LVH is a Leader in a Growing Market
The short-term luxury-rental market is a $167.9B industry and is experiencing 26% year-on-year growth in the US.
Utopian’s segments of the short-term-luxury-rental include properties at select mountain/ski, golf, and beach destinations where there is a large inventory of luxury vacation properties and where the ratio of vacation homes to residences is high. Because Utopian’s business is providing fulsome vacation-rental-management services to owners and guests, our business is not directly competitive with well-known distribution channels such as AirBnB, VRBO, and Bookings.com. AirBnB, VRBO, and Bookings.com are third-party booking agents—each Utopian Destination is the equivalent of a luxury hotel.
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.
Utopian’s long-term goal is to grow the Company to include 50 vacation destinations with a minimum of fifty homes per destination. Our short-term plan calls for the Company to expand to a minimum of eleven destinations by year five through organic expansion into under-served markets and, when economically justified, through acquisition of successful luxury rental management companies in mature markets.
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.
Maintenance and Housekeeping ensure that our properties are guest and owner ready. When the Sales Team books a guest or owner stay, they also determine how often they will want housekeeping, whether there are pets or other considerations, and whether or not they are planning on any special events. After a stay has been booked, Concierge Services reaches out to help with travel arrangements, reservations, equipment rentals, and shopping lists so that the home can be appropriately provisioned and made ready for their arrival. Before a stay, homes are re-inspected, lights are on, the temperature is set, and a Utopian representative is at the home waiting to introduce the home, provide an electronic home manual, answer questions, and otherwise assist in the arrival.
During a stay, housekeeping provides daily or biweekly as requested by the guest or owner, and normal concierge services are available twelve hours a day. The Services desk, and through it, maintenance, and security personnel, is always available, 24 hours a day.
After a stay, the property is inspected, inventoried, and brought back to owner/guest ready condition, periodically inspected and maintained, tracked within the Company’s property management system, so that homeowners and guests will know that they will be afforded a five-star experience when they return.
The Business Model
Every Guest is a Potential Homeowner
UtopianLVH’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 and because our performance with and on behalf of homeowners, All of which leads to homeowner to homeowner referrals and a stable inventory. In mature markets such as Park City, our annual turnover is below five percent.
UtopianLVH frequently becomes a catalyst for vacation home purchases, making and receiving referrals to real estate professionals. Vacationers that have an exceptional experience in a destination often begin looking for properties within the destinations. UtopianLVH’s guests have visibility into how the luxury vacations rental market works and the extent that the rental income could underwrite their investment. Most importantly, they know that UtopianLVH will manage their property to luxury standards, making their ownership experience financially and personally rewarding.
To oversee the marketing and management of their homes, Utopian charges owners a commission of thirty percent (30%) in emerging markets and thirty-five percent (35%) in mature markets. The average Utopian short term vacation rental guest stays 5.5 days and spends $1,350 per night, generating gross rental income of $7,425 per reservation. UtopianLVH’s most expensive residence generates $20,000 per night in gross rental income.
After eight years of profitable, self-funded expansion into ten markets, and refinement of its business model, UtopianLVH is now poised for sustained, rapid growth.
Capitalizing on Success
Since its founding in Park City in 2011 by seasoned entrepreneur Jeff Jenson, UtopianLVH has been growing annually by 20% to 40% with no outside capital.
This organic growth has accompanied by the company’s development and refinement of its 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 similar to Walmart’s early expansion, in that we intend 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 $750K to UtopianLVH’s EBITDA.
The Marketing and Sales Strategy
Building a Focus on Services Leads to Repeat Customers
The marketing team at UtopianLVH focuses on new-media and traditional approaches to marketing. In addition to a powerful, optimized website, UtopianLVH makes appropriate use of third-party booking services such as AirBnB, VRBO, and Bookings.com to drive sales.
For its marketing efforts directed toward customers (owners and former guests), the UtopianLVH Marketing Team won the Trello "Get ‘Stuff’ Done" award last year for being the most productive user of Trello’s customer relationship management (CRM) platform .
With proceeds from this offering, the Company will hire two additional marketing personnel and will devote additional resources for marketing campaigns, including campaigns with affinity groups such as alumnae organizations with which our employees, owners, and guests have existing relationships, which will target both luxury vacation homeowners and guests.
A Service Platform that Sets Us Apart
UtopianLVH’s business is to provide luxury vacation rentals to a luxury 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.
Because Utopian’s business is providing fulsome vacation-rental-management services to owners and guests, our business is not directly competitive with well-known distribution channels such as AirBnB, VRBO, and Bookings.com. UtopianLVH’s principal competition is from other luxury hotels and from competitive luxury-vacation-rental providers.
UtopianLVH’s distinctive competence and our key differentiator is our ability to provide our homeowners and guests with a consistent, luxury, experience across all properties within each destination. Our culture is built on that ability—and that ability is built into our culture.
Income (from Destinations)
Destination Cost of Goods
Net Income (from Destinations)
*Normalized EBITDA gives allowances for discontinued operations
In 2018 we generated $5.1M in commissions and fee income. We had EBITDA of $849K after taking into account an allowance for discontinued operations. The Company currently has an LOI in place for an acquisition that will increase our commissions and fee income by $3,045,038 and EBITDA BY $1,109,598 per year.
We want to build a solid shareholder base though a CF financing round and this Reg D 506(c), file a Reg. A and then file a Registration Statement and a Form 15c211 to begin trading as a public company.
Diversification Across Multiple Destinations
Our portfolio manages over $750,000,000 in assets and includes properties in:
Park City, UT
Palm Springs and the Coachella Valley, CA
Lake Tahoe, CA & NV
Wine Country, CA
The Big Island, HI
A High Standard of Excellence and Experience
Founder Jeff Jenson has a capital markets background and has taken 70-80 companies public. The team also has a combined 60+ years in marketing and business development experience, and they bring a wealth of knowledge regarding Four Seasons-style guest services.
We are dedicated to making owning a rental home stress-free. We take serious pride in protecting your assets with honesty, integrity, care, and control. One of our favorite mottos is: “teamwork makes the dream work,” and our family will do whatever it takes so that you can achieve your goals. Utopian's success comes down to the passionate team and their defining characteristics - humble, hungry, and smart.
The Investment and Use of Funds
The Company has identified its first acquisition target, which will add two new markets,76 luxury homes under management, approximately 68% increase in annual recurring revenues and approximately 230% increase in Net Operating Income before fully realizing operating efficiencies.
Income (from Destinations)
Destination Cost of Goods
Net Income (from Destinations)
*Normalized EBITDA includes allowances for discontinued operations
The target acquisition is a under Purchase & Sale contract for $5.0M. Terms include $3.0M in cash at closing plus the assumption of a seller note for $2.0M with a two-year term and 6% coupon.Utopian is seeking $6.0M in equity, debt or some combination.The uses of funds include the following:
To Seller for Acquisition: $3.0M
Interest and equity Reserve: $2.0M
Infrastructure investment $1.0M
For the investment of $6.0M in equity, investor will receive equity at a $7.5M valuation with 10% warrant coverage and if in the form of debt the investor will receive convertible notes with an 8% annualized interest rate, conversion at a 20% discount to the next rounding of financing and 10% warrant coverage.
Continuing to Grow as a Leader in the Industry
With the infrastructure investment funds from this raise, we finalize the development of a customized version of the Light Maker Property Management system (“LMPM”), with which we were able to go 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 members to our marketing team and allocate more funds to marketing efforts. We also plan on hiring an 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 to get in early. We could go private equity, but we've chosen to approach this raise through crowdfunding, so we can be more independent, nimble, and continue to perform at a high level to satisfy our customers. 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
inc5000 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
inc5000 winner, ranked as one of the fastest growing companies in America #914August, 2017
inc500 winner, ranked as one of the fastest growing companies in America #350August, 2015
Utopian was founded to fill the niche of luxury vacation rental marketing and management for both guests and homeowners.
Utopian has paired a four seasons equivalent five start hospitality platform with luxury residences.
We put the protection of our homeowners assets first and then build services to help create lasting memories.
ROI is Utopian's brand promise. We achieve our brand promise through our best in category sales and marketing strategies and a ever growing list of enthusiasts or repeat customers.
Hard work and a core value of doing whatever it takes.
Processes, systems and a technology platform that was designed for what we do with our residences, owners and guests.
There is a risk of opportunity cost that a better rate of return may be available elsewhere if interest rates were to increase.
There is a credit risk that the earnings will decrease due to a downturn in the economy and the company may be unable to repay the principal and interest costs.
There is a key man risk that something could happen to our founder Jeff D. Jenson, which could adversely affect the company. There is also a risk that a key member of the management team could become incapacitated or quit, which would also adversely effect the business.
Technology plays a role in operating the business. Lack of technology integration and/or development could adversely effect the management teams ability to manage the inventory, sales, marketing, accounting, operations, guest services and owner reporting.
The vacation rental sector is highly competitive and there are thousands of vacation rental listing websites in the United States and abroad that compete directly with us for listings, travelers, or both, such as vacasa.com, turnkey.com, HouseTrips.com, Booking.com, Airbnb, @Leisure, InterHome, James Villas, TripAdvisor and Wyndham Worldwide. Many of these competitors offer free or heavily discounted listings or focus on a particular geographic location or a specific type of rental property. Some of them also aggregate property listings obtained through various sources, including the websites of property managers some of whom may also market their properties on our website or we market our residences on their websites.