Risk Disclosure Statement

Rental rates and occupancy depend on local demand, macroeconomic conditions, tourism/business travel, and competitive supply.

A fall in local demand or an oversupply of comparable listings may lower achievable daily/monthly rates or lengthen vacancy periods.

A new hotel or serviced-apartment cluster opens near a portfolio property and reduces average daily rates by 20%.

We target high-demand micro-locations, actively monitor market comps, and adjust pricing strategies. However, price declines directly reduce distributable income.

Expect variable returns tied to market cycles; do not assume historical yields will repeat.

Periods with low bookings (seasonal downturns, off-peak months, long gaps between guests).

Reduced occupancy means lower gross receipts and may result in zero or reduced payouts after expenses.

Covid-style travel restrictions or local events being canceled lead to extended low occupancy.

Diversifying property types, listing across multiple platforms, maintaining a marketing reserve, and offering flexible long-stay options. Nevertheless, prolonged vacancies can exhaust reserves and delay distributions.

Changes in municipal by-laws, state or central regulations, taxation rules, short-term rental licensing, or zoning that affect operation or income.

New restrictions or licensing costs can force temporary closure, reduce nights available for rent, or increase compliance costs.

A municipal ban on short-term rentals in a city district.

We maintain legal counsel, register required licenses where possible, and structure contracts to adapt. Regulatory changes can still materially impair income or require operational adjustments.

Dependence on third-party platforms (Airbnb, Booking.com, OYO etc.) for visibility and bookings. Platform policy changes, fee increases, or delisting can reduce net income.

Platform algorithm changes or higher commissions reduce net rental yield.

A platform increases commission or changes search ranking rules, reducing bookings.

Multi-channel distribution, direct booking efforts, and proprietary marketing. Still, platform dependence remains a risk that can materially affect revenue.

Failures in day-to-day management—poor guest experiences, inadequate cleaning, maintenance delays, supplier failures, staff issues.

Poor operations reduce guest ratings and bookings; emergency repair costs can be large.

Major AC failure in peak season requiring expensive replacement and loss of bookings.

Standardized SOPs, vetted vendors, maintenance reserves, insurance where applicable, and ongoing audits. Operational failures may still occur and affect income or require additional capital.

Properties require ongoing capex (furniture replacement, deep refurbishments) and occasional major repairs (plumbing, electrical, structural).

Large capital outlays reduce distributable cash and may require calls on reserves or capital.

Structural repairs after discovering water damage during refurbishment.

A planned reserve for capex and preventive maintenance; however, extraordinary repairs can exceed reserves and delay rentals.

Insurance may not cover all loss types or may be expensive; claims may be disputed. Liability exposures (guest injury, third-party claims) can create financial and reputational risk.

Gaps in coverage could leave the Company or investors exposed to losses.

Guest injury in a property leading to claim costs in excess of policy limits.

Maintain commercially reasonable insurance cover for property damage, public liability and business interruption where available. Insurance limitations may still leave residual risk.