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Utopian LVH, Inc.

Utopian LVH, Inc.

UTOPIAN LVH IS A $6,000,000 PRE-IPO INVESTMENT OPPORTUNITY IN THE LUXURY SHORT-TERM RENTAL INDUSTRY.

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Deal Type

Convertible Note

Funding Goal

$6,000,000

Current Reservations

$1,315,000

Minimum Reservation

$5,000

Deal Stage

Series A

Interest (% per year)

8.00%

Term Length (Months)

36 months

Valuation Cap

$7,500,000

Conversion Discount (%)

20%

Warrant Coverage (%)

N/A

Open Date

04/02/2019

Maximum Reservation

$6,000,000

Closing Date

07/31/2019

Elevator Pitch

Utopian LVH is a $6,000,000 pre-ipo investment opportunity in the exploding luxury short term vacation rental industry.

KPIs

$12,176,000 Sales
46 Employees
Cash Flow Positive
5000 Users

Company Overview

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)
Utopian Target Combined % Increase
Gross Income $12,178 $7,918 $20,096 65%
Cost of Goods $7,958 $5,030 $12,988 67%
Expenses $3,846 $1,510 $5,356 39%
Net Income $374 $1,378 $1,752 752%
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

Infrastructure: $1.0M

Total $6.0M

Company Description

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.

Mission

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.

The Problem

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.

The Solution

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.

The Market

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.

The Roadmap

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.

The Competition

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!

Traction

  • Utah 100 winner, ranked as one of the fastest growing companies in Utah #38

    October, 2018
  • Inc. 5000 winner, ranked as one of the fastest growing companies in America #4181

    August, 2018
  • Utah 100 winner, ranked as one of the fastest growing companies in Utah #75

    October, 2017
  • Inc. 5000 winner, ranked as one of the fastest growing companies in America #914

    August, 2017
  • Inc. 500 winner, ranked as one of the fastest growing companies in America #350

    August, 2015

Press Mentions

Key Customers & Partners

Homeaway Airbnb inc5000 USA Today booking.com underdog.nyc Bridal Pulse

Testimonials

Chris Wilson
Chris Wilson
Owner
"“As an owner, I have been very pleased with points of service which I consider critical for successful property management. My experience with their agents includes their excellent local knowledge of rental marketplace which leads to getting top dollar for my property.... I highly recommend Utopian LVH for their overall outstanding service.” "
Mark Sletten
Mark Sletten
Berkshire Hathaway Assoc Broker & Realtor
"Utopian took over rental management for a client of mine who owns a Paintbrush home in Empire Pass last year. Even though is was only the first year they managed it, they increased the revenue by 2.5x and reduced expenses. If you can make the switch you should. "
Marny Schlopy
Marny Schlopy
Realtor at Caldwell Banker Residential Broker
"I have recommended several homeowners to Utopian. Their team outperforms the competition and no one in Park City can come close to matching their rental income numbers. They are a true pleasure to work with."

Frequently Asked Questions

Why was Utopian founded?

Utopian was founded to fill the niche of luxury vacation rental marketing and management for both guests and homeowners.

What differentiates Utopian?

Utopian has paired a four seasons equivalent five start hospitality platform with luxury residences.

What is Utopian's key responsibility?

We put the protection of our homeowners assets first and then build services to help create lasting memories.

What is Utopian's brand promise? How is it achieved?

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.

How has Utopian achieved success?

Hard work and a core value of doing whatever it takes.

How has Utopian become a best in class service provider?

Processes, systems and a technology platform that was designed for what we do with our residences, owners and guests.

Risks & Disclosures

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.

Documents

Confidential

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