Frenchman’s Reef Resort & Morning Star Beach Resort November 2018
Frenchman’s Reef Resort & Morning Star Beach Resort Key Facts & Figures Q2 2020 Projected Reopening $20M+ Brand Support $30M USVI Support $370+ Stabilized ADR $25M Stabilized EBITDA 2
Renowned Team of Experts Supporting Rebuild Kollin Altomare Architects WhiteSpace (Design) The Johnson Studio (F&B Design) Four Seasons Punta Mita Resort & Spa Four Seasons Scottsdale at Troon North The Ritz-Carlton Grand Cayman The Ritz-Carlton Laguna Niguel Four Seasons Hotel Austin (Blue, Seven, Taikun, Ritz Lobby Bar) The Fairmont Scottsdale Princess Resort Ritz-Carlton Half Moon Bay Lobster Sea Bar Grille (Miami Beach) The Ritz Carlton, Kapalua Maui Del Frisco’s Double Eagle Steakhouse (Dallas) Maris Collective (Retail, Concepts, Programming) Richard Sandoval Group (Celebrity Chef) Four Seasons Maui Four Seasons Nevis Four Season Anguilla Four Seasons Punta Mita Fairmont Kea Lani, Maui Maya (NYC, Dubai) Toro Toro (Abu Dhabi) 3
Frenchman’s Reef Resort • Frenchman’s Reef Resort is St. Thomas’s flagship resort - Located on approximately 21 acres of picturesque land overlooking Charlotte Amalie Bay & the Atlantic Ocean - Features over 1,200 linear feet of beach - Iconic asset with the most visible location and view to island • Frenchman’s Resort is prominently visible by all cruise passengers at the entrance of the Port of St. Thomas - Average of 1.8M cruise visitors per year • Largest hotel on the island and largest private employer • Currently unencumbered of brand and management • 384 rooms with ~30K SF of meeting space, full- service spa and numerous restaurant and bar options and 94 additional keys at Morning Star 4
Renovation Will Completely Reposition Frenchman’s Reef Fully-renovated guestrooms New lobby and public spaces Redesigned pool, beach and spa experience Enhanced restaurant & bar experiences through partnership with celebrity chef Richard Sandoval Improved retail outlets and layout New power system, waste water treatment plant and sea water treatment system - Will drive significant annual savings ($2M) 5
Morning Star Repositioned as a Boutique, Luxury Resort • 94 beachfront rooms will be up- branded to luxury, boutique resort • Distinct branding and luxury identity (e.g. Autograph Collection or Curio) • Targeting $500 ADR • Guestroom renovation ($150K per key) - Comp to Scrub Island Resort, Park Hyatt St. Kitts and Kimpton Seafire • Reimagined lobby, pool, restaurant (Cayman Islands) and bar 6
Significant Upside with Two Vastly Improved Resorts Average Daily Rate Completely renovated and rebuilt $502: Morning Star assets $372 +47% $253 $341: Frenchman’s Significant rate upside (47%) 2016A Stabilized Performance Independent manager to improve profitability and residual value EBITDA ($M) $25.0 +51% Increased resort fee for added $16.6 activities and amenities Reimagined F&B experiences to 2016A Stabilized Performance drive F&B revenues EBITDA Margin 27.8% Enhanced tax benefits +320bps 24.8% Infrastructure improvements to drive significant annual savings ($2M) 2016A Stabilized Performance 7
Frenchman’s Reef Main Lobby Rendering 8
Frenchman’s Reef Main Tower Guestroom Rendering 9
Morning Star Lobby Rendering 10
Morning Star Guestroom Rendering 11
