The project is structured around three specialized partners: Continuum Hospitality Group, which acts through its group companies as an advisory partner and manager of the hotel under a management contract. Continuum Hospitality Group is an independent business group based in Madrid with approximately 300 million euros in assets under management, dedicated to investment, development and hotel management in the Iberian and European market. It has a portfolio of 18 hotels with about 2,500 rooms, of which 14 hotel establishments are in operation, in addition to a track record that includes 15 developments from scratch, more than 10 repositionings and all franchised with 9 prestigious international brands belonging to the Accor, Hilton, IHG, and Marriott groups.

Alta Real Estate will act as the delegated promoter, responsible for originating the opportunity and for delivering the asset under a "turnkey" design and construction contract, with a fixed cost and deadline, guarantees and penalties. Alta Real Estate is the development division of a family group that, together with its construction company Aldara, has more than 30 years of experience and more than 100 projects executed in sectors such as hotel, residential, commercial and infrastructure. With a team of more than 120 professionals, the group offers a comprehensive "turnkey" service that ranges from land acquisition and capital raising to construction, positioning itself as a highly solvent promoter and builder partner.

For the design of the project, Alberto Martín de Lucio, one of the architects with the greatest projection and volume of signature currently in the Community of Madrid, is counted on.

The hotel will be managed by Continuum Hotel Management under the Holiday Inn Express brand by virtue of a franchise contract with IHG Hotels & Resorts.

Alta Real Estate has already signed the earnest money contract for the acquisition of the plot with the owner of the land, and the incorporation of Urbanitae investors and Continuum investors into the operation is expected in the fourth quarter of 2026.

The viability of the project has been validated through independent due diligence in its two critical dimensions: technical, commercial.

The contributions of Urbanitae investors will be made through a capital increase in the vehicle company that will group the platform's investment in the project: PENDRAGON OPPORTUNITIES 5, S.L. This company, in turn, will carry out a capital increase in the project's promoter company, HIEX MADRID SUR HOTEL, S.L.U.

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STRUCTURE

The operation is structured via a capital increase, where both the Urbanitae investors and the co-investors will make a capital contribution to the promoter company of the operation of 8,475,000 € (83% of the total Equity), of which Urbanitae will participate with 1,000,000 €, expandable by an additional 4,000,000 €. The advisory partner's investors (Continuum Hospitality Group) will make a contribution to the promoter company for a total amount of 1,735,000 €, (17% of the total Equity).

Additionally, it is planned to resort to bank financing for the development and construction of the project, where indicative terms have already been received to grant the developer mortgage loan.

WHY INVEST?

There are several reasons to invest in this project:

●       International reference brand: the hotel will operate under the Holiday Inn Express brand (HIEX - IHG), the fastest growing brand of the fourth largest hotel group in the world, with ~160 million members in its loyalty program. The brand's backing validates the target ADR, boosts direct sales, and reduces dependence on OTAs.

●       Construction at a fixed price and term: the development is carried out through a "turnkey" delegated promotion contract with Alta Real Estate that sets cost and term with guarantees and penalties, mitigating the main risk of a ground-up project: cost and schedule deviation.

●       Location with structural demand and scarce supply: the southeast corridor of Madrid concentrates recurring corporate and logistical demand (Mercamadrid, industrial estates, hospitals) and strong future residential growth (Los Berrocales, Los Ahijones, Valdecarros), against a limited, obsolete hotel offer without international brands.

●       Differential positioning against competition: the local market is dominated by budget product and outdated 4-star hotels. Holiday Inn Express is positioned in a midscale segment with scarce supply and a competitive ADR, backed by comparables from the Madrid area, where the brand achieves a rate premium of up to 24% against other hotels in the area.

●       Conservative leverage: the operation is structured with a target LTV of 42%, a prudent level of debt for a development with an international brand.

●       Double market validation: in addition to Urbanitae's own analysis, the business plan is supported by the commercial due diligence of Cushman & Wakefield and conservative exit assumptions (exit yield of 7.5%).

ECONOMIC SCENARIOS

According to the CNMV's criteria, in addition to the base (favorable) scenario proposed by the Manager and contrasted by Urbanitae, two additional scenarios must be published in Equity projects that show potential variations in the business plan.

1.   FAVORABLE

The base, or favorable, scenario contemplates the execution of the development and the sale of the stabilized asset at an exit yield of 7.5%. The forecast of total net income amounts to € 40,813,096, while the estimate of total costs for the execution of the project corresponds to € 30,654,607.

2.   MODERATE

The moderate scenario contemplates a rise in the exit yield (Exit Yield) from 7.5% to 9.38% which reduces the estimated sale price by 20%, placing the total income at € 33,585,089. This decrease entails a reduction in associated taxes, resulting in total project costs of € 28,654,842. Since the project would not generate a 15% IRR, the sponsor would not obtain a promote fee.

3.   UNFAVORABLE

The unfavorable scenario contemplates a downward deviation of the estimated sale price of the asset and a reduction of the estimated initial rent of the new lease to be formalized, wide enough to obtain a negative result, with partial loss of the contributed capital. In this case, the estimate of operating income from the exit (Exit NOI) has been reduced by 22% and a rise in the exit yield (Exit Yield) c.25%, up to 9.38% (compared to 7.5% in the base scenario). In this scenario, the income decreases to € 26,777,209 (costs are reduced compared to the favorable scenario due to the reduction in corporate tax and marketing fees).

According to the supervisor's criteria, crowdfunding platforms should not communicate the estimated profitability in an Equity project. The total profitability of a project is the REVENUE FORECAST minus the COST ESTIMATE, divided by the TOTAL EQUITY. For example, in the FAVORABLE scenario, the calculation would be REVENUE FORECAST (€40,813,096) minus COST FORECAST (€30,654,607) divided by the TOTAL EQUITY (€10,210,000). The result of this quotient multiplied by 100 will represent the profitability percentage on the capital contributed in this scenario.

The forecasts are mere estimates, and are subject to variations that may arise from the economic, social or other nature throughout the duration of the project.

MARKET

To validate the main hypotheses of the investment opportunity (acquisition price, development costs, operational business plan and estimated divestment price), Urbanitae, in addition to its own analyses, relies on commercial due diligence, where the market, sales transactions and operational projections are analysed, and a technical due diligence, where the technical feasibility of the project and the assumed costs are analysed. Both due diligences have been prepared by top-tier entities.

WHEN WILL I RECOVER THE INVESTED MONEY?

The business plan for this project contemplates an investment period of 44–48 months:

●       Fourth quarter of 2026: Urbanitae's entry and purchase of the asset (plot).

●       Second quarter of 2027: granting of the license and start of construction works. The license was applied for in July 2026.

●       First quarter of 2029: completion of the works.

●       First / second quarter of 2029: opening of the hotel and start of operations.

●       Fourth quarter of 2030: sale of the asset and distribution of profits to investors.

It is important to bear in mind that in all real estate investment, the deadlines can be affected both upwards and downwards.

RISKS

All investments carry a risk. We detail the clearest risks we have identified for this project, along with the measures that mitigate them:

Promoter risk: insolvency, fraud or incompetence of the promoter. Mitigated by the solid and proven track record of Alta Real Estate and its construction structure Aldara, with more than 100 projects executed.

Construction risk: deviation in costs or construction deadlines. Mitigated by a delegated promotion contract "turnkey" with a fixed price, closed deadlines, and guarantees and penalties for non-compliance, which transfers the construction risk to the promoter.

Licensing risk: refusal or delay by the City Council in granting the building license. Mitigated because the license has already been applied for (July 2026), with an estimated acquisition for the second quarter of 2027, and because the "turnkey" contract includes a schedule of milestones and contractual guarantees.

Commercial risk (disinvestment): deviation of the sale price or extension of the marketing deadlines. Mitigated by (i) the attractiveness of the product for family offices and institutional investors, (ii) a conservative exit hypothesis (exit yield of 7.5%), (iii) the strategy of early marketing from the beginning of construction.

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Warnings and Risks

Urbanitae Real Estate Platform (Urbanitae) does not hold the status of an investment services company, nor a credit institution and is not attached to any investment guarantee fund or deposit guarantee fund. The information published by Urbanitae Real Estate Platform on its Website is for informational purposes only and can in no case be considered as recommendations to investors.

The crowdfunding projects published by Urbanitae on its Website are not subject to authorization or supervision by the National Securities Market Commission or the Bank of Spain, therefore, all the information provided by the sponsor in relation to the projects has not been reviewed by them.

Urbanitae expressly informs that, in case of non-compliance with the total volume of investment of the project, the deadline for fundraising may be exceeded by up to 25%, maintaining the same investment conditions. Also, the project may be financed by Urbanitae when at least 90 percent of the financing objective has been reached, once the participation in the project that the platform itself may have is discounted. All this as established in Article 69 of Law 5/2015 on Business Financing Promotion.

Investing in the projects published on this Website may entail certain risks, such as, the risk of total or partial loss of the invested capital, of not obtaining the expected monetary return or of lack of liquidity. Therefore, we warn investors to only invest an amount they are willing to lose and we suggest they diversify their investments to minimize and mitigate potential risks. In the event that the sponsor is unable to return or remunerate the funds received, Urbanitae will not return the investors their investment made.

This project will be open to any investor registered in Urbanitae, and any of the following registered persons may invest in it:

●       Urbanitae partners who own at least 20% of the share capital or voting rights;

●       Urbanitae managers or employees;

●       Individuals or legal entities linked to these partners, managers or employees by control.

In this regard, Urbanitae guarantees that the investments of any of these individuals will be made through the platform, under the same terms and conditions as any other investor, without receiving any preferential treatment, or privileged access to information compared to the rest of the investors registered in Urbanitae. In accordance with the Internal Conduct Regulation of Urbanitae, these investors are obliged to internally communicate these operations.

Once the investment in the project is closed, Urbanitae will provide in the project's investment area information about the amount invested by these investors, the type of investor who has made the investment, and the percentage it represents with respect to the total financed, always complying with the data protection policy.