Selected Brands

BVIH and its parent company, Markinch Realty Corporation (MRC), have established a working relationship with several of North America's largest and most successful hotel franchisors. Management will consider joint-venture arrangements with brand companies that fit with the overall development and execution of the management business plan. Emphasis will be directed toward branding.

Supply & Demand Analysis

BVIH/MRC initial projections are based on additional acquisitions of recognized, operating hotels, in tourist destinations in the Dominican Republic. Branding attributes such as name recognition, reservation contribution, facilities, and amenities will have an impact on the subject's ability to capture existing demand in the market and projected performance.

All acquisitions will be branded and affiliated with other local tourist-driven establishments catering to tourism. The hotel acquisitions will be affiliated with a strong central reservation system (CRS), such as Expedia, Instant World Bookings, etc. Any acquired hotel will have a suitable past history in the immediate area that can be marketed to past users. The subject will be well constructed ensuring adequate upgrading ability to provide quality facilities and amenities, in order to raise the star level.

The Five Phase Development Program

BVIH/MRC, has established an ambitious hotel/club development program that calls for the implementation of 15 hotel development acquisitions during the next 5 years. The program is based on fractionalizing the hotel. This program will commence with 2 acquisitions in the first fiscal year ending December 31, 2009, followed by 3 acquisitions in the second fiscal year, 3 acquisitions or new-build in each of the next 2 fiscal years and 4 new-builds in the fifth fiscal year.

To date, 1 hotel has been acquired, namely the Hotel Casa Cayena situated in Sosua. This hotel has 25 rooms and management is presently making plans for an expansion to include 1 bedroom and 2 bedroom, lock-off units, with a potential to expand the hotel to approximately 57 units. All subsequent developments have been assumed to comprise 25-50 rooms. In fact, these hotels will vary in size from 25 to 75 rooms although it is expected that the 50 room average will be maintained.

Development Criteria

Selected sites will encompass qualities that will enable the developed hotels to achieve exceptional profitability based on fractionalized sales of room/units. Such hotels may be, a) green field, new-build developments b) acquisitions of existing under-performing (and under-exploited) hotels to be reconfigured, re-branded and repositioned, or c) conversions of other forms of real estate (e.g. under-performing office buildings) conducive to conversion to hotel use.

Each of the initial developments will include one or more "partners", e.g. a well-established marketing syndication located in a high-profile location marked by the presence of a major internationally-known employer or an internationally attractive leisure travel infrastructure.

Projects selected may span the breadth of the 3-5 star, full service, hotel segments both in terms of quality level and configuration. However, profit potential and/or relative risk will be the primary selection criteria.

Initial Phase 1 opportunities will be sought within the Sosua-Cabarete-Puerto Plata area of the North Coast of the Dominican Republic in order to facilitate management effectiveness and control, as well as assuring lower acquisition costs.

Phase 2 developments will be located in geographical areas selected for their multi-location, hotel development potential, including; Nagua-Samana-Las Terrenas in the North-East Coast of the Dominican Republic.

Phase 3 projects will be focused opportunistically on developments which hold the promise of exceptional profitability and value generation, including; Santiago-La Vega-Bonao in the Central Mountain area of the Dominican Republic.

Phase 4 and 5 projects will be focused on the 5 star, highly sought after prime beach locations of the Caribbean Sea, namely; Santo Domingo-La Romana-Punta Cana situated in the South-East Coast of the Dominican Republic.

The five (5) phase program will result in total coverage of the country, resulting in the ability of Club Members to travel to 15 different facilities throughout the Island.