Prime Hospitality Management Group · rigorously tested each home to be sure that it has all ... bathroom amenities, and linens and towels included ØRange of Studios, one, and two-bedroom

“ReshapingthewayEgyptiansLive”

Prime Hospitality Management Group


Contoso Ltd.

AboutUs○ PHMG is Egypt’s first dedicated property rental and management

company, with a focus on residential, hotel, and office properties

○ We have a growing and successful track record in ground-up construction, renovation, finishing, brokerage, real estate and hospitality management as both an owner and operator

○ We are a hospitality brand that goes guarantees a premium experience through a combination of high-touch services, mobile technology, and state-of-the-art facilities

○ PHMG (our hospitality management company), in partnership with Prime Capital (Real estate development), are working hand in hand to grow the company portfolio.

○ PHMG’s management team is experienced in both owning and operating high-quality real estate, positioning PHMG to be the ideal partner for owners looking to maximize the value of their Property

OurMission:Transform living standards in Egypt

Maximize yield, returns and efficiency for real estate property owners

Deliver premium hospitality services using innovative techniques and technology

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○ The Group owns or is affiliated with several brands that will provide direct synergies to PHMG○ These synergies (outlined below) will serve to ensure a quick ramp-up of operations at PHMG Egypt, as well as

cost savings through favorable terms/contracts, which together promote profitability

GroupSynergies

Coastal

Upscale

residential

buildings

A Selection of luxury handpicked units in the City

Budget accommodation

PHMG

PRIME SELECTPRIME HOLIDAYSPRIME INN

Contoso Ltd.

TimelineOur team of 45 employees has been managing rental properties since 2015; expected to reach over 200 units by mid 2020

2015

JAN APR

PrimeResidentialFounded

JUL OCT JAN

PrimeResidenceNewCairoILaunch(17Unitsfull

building)

APR JUL OCT JAN APR

PrimeResidenceNewCairoPhaseIILaunch(23Units

fullbuilding)

JUL OCT

2018

JAN APR JUL OCT JAN APR AUG OCT JAN APR JUL OCT

4

2016 2017 2019 2020

PrimeNorthCoastPhaseILaunch(1Villa)

PrimeNorthCoastPhaseIILaunch(3Villas)

PrimeSelect(12Units)PrimeResidence

PyramidsEdenLaunch(75unitsExpected)

PHMG Corp.


Contoso Ltd.

Team

KhaledEl-SayyadManaging Partner

5PHMG Corp.

Khaled is the owner and CEO of Prime Capital, responsible for all areas of the group’s real estate and development operations and leads PHMG’s in-house marketing team. He has over 7 years of commercial and residential real estate investing in Egypt. Prior to founding the Prime Brand.

Khaled sits on the board of Auto Group El Kasrawy, one of Egypt’s largest automotive distributors. He holds a Bachelor of Business Administration from the George Washington University and a Public Relations and Communications Masters Degree from the Georgetown University.

MoatazAminManaging PartnerMoataz is the CEO of PHMG and oversees prime’s growth plan. He has over 28 years of hospitality and tourism experience.

Moataz currently managing all aspects of hospitality operations, new projects assessment and startups. Also he is the founder and managing director of 2travel2egypt, one of the pioneer e-tourism travel companies in Egypt.

He holds a Bachelor of Business Administration from Faculty of Commerce, Alexandria University 1998, with post graduate in Sales and marketing from AUC in 1991

AhmedEl-SahartyPartnerAhmed oversees Prime’s investments and sales strategy. He has over 5 years of experience investing in the MEA region, he is currently a VP at TRG management, an investment management firm based in New York.

Ahmed has previously worked for Briarwood Capital, CI Capital and the Rock Creek group.

He has a Bachelor’s degree from the University of Toronto and is fluent in Arabic, French and Spanish.

KarimEl-SayyadPartnerKarim oversees Prime’s growth and business development initiates. He has over 5 years of investment banking, capital markets, and real estate experience.

Karim currently serves as an Investment Associate at FREO Group, a global real estate private equity firm with over $2bn in assets, in their New York office.

Karim has previously worked for Rockdale Partners and Berenson & Company in New York. He holds a Bachelor’s degree, cum laude, from the Wharton School of the University of Pennsylvania.


OurServices

Ø Sales and Marketing:

o Short and Long-term Property Management

o Vacation and Corporate Rentals

o Inventory/Reservations Management

o Revenue and Yield Management

o Professional Property Photography

o Loyalty Club Program

o Social Media

o Market research and Intelligence

o Property Consultancy and Assessment

Furniture and Design:

o Interior Design

o Furniture Supply and financing


OurServices

Ø Operations:o Regulatory compliance

o Concierge services

o Housekeeping

o Laundry/Dry Clean

o Maintenance support

o Brokerage & Leasing

o Expense Management

o Guest Orientation

o Utilities payment management

Finance:

o Accounts receivables, payables, Balance Sheet and P&L Stores Management / Stock control, Purchasing Management

oPrime Hospitality Management Group

Contoso Ltd.

PropertyConsultancyandAssessment

Step1TheProduct

• Assessing the asset and determining its fit within our product offering (Residence, Select, Holidays, Budget etc.)

Step2TheService

• Determining the level of services needed for product-market fit, based on our knowledge of location, asset quality and market demand

Step3TheReturn

• Presenting a budget with any required capital investments or maintenance work

• Forecasting profitability and returns for the asset

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This process helps us create a game plan to transform dormant properties into institutional, profitable assets.


Contoso Ltd.

Financial&AccountingServices

Collection

Ensuring collection and rental settlements

Reporting

Quarterly financial reports

Analysis

Financial analysis ensuring cost optimization,

optimum profitability, and highest yield on asset

Budgeting

Budgeting for construction, renovations, remodeling or

any other property expansion plans

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Brokerage&LeasingIncreasing occupancy through our brokerage and leasing services:

Occupancy

Increasing occupancy with high-quality tenants through listings on

different channels: digital platforms, agencies, corporate partners

Diversification

Focus on diversifying the revenue base by managing both short term and long-

term leases

Brand

Leveraging our brand equity, built on providing quality rental services, to achieve the highest rents

possible

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Prime

PHMG Corp.


…


OurProperties

Contoso Ltd.

PrimeResidenceNewCairo○ Our properties are designed to make our guests’ stay

extra convenient, providing concierge and security services in addition to housekeeping and laundry. PHMG has meticulously hand-selected, visited and rigorously tested each home to be sure that it has all the ingredients for a great stay.

○ Thanks to our superb locations, facilities and services offerings, guests choose to stay at Prime for leisure, corporate, and business stays. Prime promise to guests is that they guaranteed to feel at home.

○ The properties are in the heart of New Cairo, just few steps away from the American University, the German University and the Future University and minutes away from Point 90, Galeria and Downtown Malls

○ The properties offer short term and extended stays, and caters to individuals and families, corporates and executive travelers for work or pleasure

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PrimeResidenceNewCairo○ Our serviced apartments come fully-furnished with a well-equipped

kitchen or kitchenette, bathroom amenities, and linens and towels included

Ø Range of Studios, one, and two-bedroom apartments available○ Prime Residence New Cairo I: 17-unit apartment community has

experienced 90%+ occupancy rates

○ Prime Residence New Cairo II: 23-unit apartment community adjoined to Prime Residence New Cairo I; launched in January 2018, is now boasting 95%+ occupancy rates

○ 8.2/10

○ 278 reviews

.

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NearbyAttractions:Ø Point 90 MallØ Concord Plaza MallØ Meeting Point MallØ American University of Cairo (AUC)Ø Future UniversityØ German UniversityØ El Zohour Club New Cairo Ø Cairo Festival City MallØ Down Town MallØ Americana Plaza Mall

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PrimeAmwajNorthCoast○ 700 sqm beachfront properties in the Amwaj

Compound in the North Coast of Egypt, each with a 4-bedroom, 4-bathroom layout

○ The luxurious beachfront villas can accommodate up to 8 adults in 4 master bedrooms with stunning sea views and a spacious garden, in addition to separate rooms for a nanny and a driver

○ 100% occupancy for three consecutive summer seasons (May 15- Sept 15) in 2017, 2018 and 2019

..

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Future Projects


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PrimePyramidsEdenRock-6thOctober○ 75 Luxury Serviced apartments in a Gated community

located on the Cairo–Alexandria desert road at km 22

○ Best-in-class location with proximity to major highways, the Grand Egyptian Museum, the Pyramids, and other residential compounds

○ 180-degree panorama with breathtaking views of the Giza Pyramids and the Cairo skyline

○ Green spaces covering almost 70% of the project, with every unit enjoying access to a private garden

○ Two on-site retail shops, a mini-market and laundry facilities

○ VIP Lounge and meeting room

○ Gym and health club equipped to accommodate up to 40-60 guests

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OntopoftheworldEnjoythisamazing180° panoramawithbreathtakingviewsoftheGizaPyramids,thesurroundingswayingpalmswhilebeinginyourprivateretreatinasecureandtranquilambience

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AnExclusivesiteover-lookingthePYRAMIDSplateauandrightbetweenamazinglandmarksofCairolikeGEM,SmartVillage,MediaCityandothers

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MarketDynamics


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AnInformalMarketWe believe the residential rental market in Egypt is informal and mis-managed.

Sourcing

95% of Rental properties are sourced through brokers, building porters, owners

(through paper ads and online listings).

Construction

99% of rental properties are condominiums. Constructed to

be owned not rented.

Management

90% of rental properties are managedby their owners.

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AcceleratedGrowthintheRentalMarket• The Rental market lagged the devaluation correction of the EGP in

2017 and has already bottomed during 2018.

• The rental market’s growth is expected to accelerate going forward.

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Source: JLL Q1 2019 Report


Contoso Ltd.

Acceleratedgrowthintherentalmarket• Sales numbers are declining while rentals are increasing y-o-y & q-o-q.• New Cairo is currently yielding higher returns than in 6th of October.

Which explains PHMG primary focus on the New Cairo Market

24Source: JLL Q1 2019 Report

PHMG Corp.


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IncreasingCostsandHighUnfinishedInventory• The Egyptian consumer confidence has been pressured by

inflationary pressures in the past 2 years.

• Salaries and wages in Egypt have not yet reflected the full impact of the EGP devaluation ~55%, which has affected the real purchasing power of the Egyptian consumer.

• The costs of construction, finishing and home furnishing have doubled since 2016.

• High interest rates make it very difficult for consumer to resort to debt financing.

• High level of inventory of delivered yet unfinished units in greater Cairo and the North Coast. The market expect 60K units new units to be delivered in Cairo by 2020.

• We believe these dynamics have increased demand for rental units.

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HospitalityMarketDeteriorationFollowingDecadeofTouristDrought• The quality of the hospitality market has deteriorated after a decade

of tourist drought. The industry is well positioned for an industry rebound

• Hotel Occupancy in Cairo dropped to 56% in 2016 and the Average Daily Rate reached $89.

• Tourist numbers nearly doubled in 2018 y-o-y from 5.8 million to 9 million. Today, RevPar is at $101 and occupancy reached 77%.

• Tourism calibers and industry professionals have left the country over the past decade.

• However, we’ve witnessed the inflows industry professionals returning to fill job vacancies as hotels have been renovating and enhancing their services.

• Government initiatives (national Museum) and Sports tourism (CAF) are expected to increase tourist inflows in the medium term.

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ResidenceMobilityExtremelyDifficult,DespiteDireNeedForFaster/EasierRelocation• The costs, logistics and feasibility of relocating your residence in

Cairo make it extremely difficult.

• The urban expansion has made it necessary for residence relocation and, rentals are essential for this transformation to take place.

27PHMG Corp.

Downtown Cairo

New Developments

New Administrative Capitol


Contoso Ltd.

OurGoals

TheOpportunity

We believe our service provides an opportunity to leverage on these market

inefficiencies. By providing the first rental property management concept in

Egypt.

TheMission

Our main goal is to institutionalize the

property rental market and maximize the profitability on Real Estate assets to

provide the highest returns for its owners.

TheGoal

Enhance and simplify housing mobility and

standards

TheProduct

Catering to different segments: Economy,

Select, Luxury, Holidays

TheResults

46 Units under management and growing

28PHMG Corp.


ThankYou

Contoso Ltd.PHMG Corp.


Documents

Prime Hospitality Management Group · rigorously tested each home to be sure that it has all ... bathroom amenities, and linens and towels included ØRange of Studios, one, and two-bedroom