The project is structured around three specialised partners: Continuum Hospitality Group, which, through companies within its group, acts as advisory partner and hotel manager under a management agreement. Continuum Hospitality Group is an independent Madrid-based business group with approximately €300 million in assets under management, focused on hotel investment, development and management in the Iberian and European markets. It has a portfolio of 18 hotels with nearly 2,500 rooms, 14 of which are currently in operation, as well as a track record that includes 15 ground-up developments and more than 10 repositionings, all franchised under 9 prestigious international brands belonging to the Accor, Hilton, IHG and Marriott groups.

Alta Real Estate will act as delegated developer, responsible for originating the opportunity and delivering the asset under a turnkey design-and-build contract, with fixed cost and timeline, guarantees and penalties. Alta Real Estate is the development arm of a family-owned group which, together with its construction company Aldara, has more than 30 years of experience and over 100 completed projects in sectors including hospitality, residential, commercial and infrastructure. With a team of more than 120 professionals, the group offers a comprehensive turnkey service covering everything from land acquisition and capital raising to construction, positioning itself as a development and construction partner of the highest solvency.

The project has been designed by Alberto Martín de Lucio, one of the most prominent architects in the Community of Madrid today in terms of profile and volume of commissions.

The hotel will be managed by Continuum Hotel Management under the Holiday Inn Express brand, pursuant to a franchise agreement with IHG Hotels & Resorts.

Alta Real Estate has already signed the deposit agreement (contrato de arras) with the landowner for the acquisition of the plot, and Urbanitae investors and Continuum investors are expected to join the transaction in the fourth quarter of 2026.

The project's feasibility has been validated through independent due diligence covering its two critical dimensions: technical and commercial.

Urbanitae investors' contributions will be made through a capital increase in the special purpose vehicle that will hold the platform's investment in the project: PENDRAGON PROPERTIES 5, S.L. This company will, in turn, carry out a capital increase in the project's development company, HIEX MADRID SUR HOTEL, S.L.U.

----------------

STRUCTURE

The transaction is structured as a capital increase, whereby Urbanitae investors and co-investors will contribute €8,475,000 (83% of total Equity) to the project's development company, of which Urbanitae will contribute €3,000,000 (the first 2 tranches of €1,000,000 have already been funded on the platform with great success and demand), extendable by an additional €2,000,000. Investors of the advisory partner (Continuum Hospitality Group) will contribute a total of €1,735,000 (17% of total Equity) to the development company.

In addition, bank financing is expected to be used for the development and construction of the project, and indicative terms have already been received for the developer mortgage loan.

WHY INVEST?

There are several reasons to invest in this project:

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

●       Fixed-price, fixed-term construction: the development is carried out under a turnkey delegated development agreement with Alta Real Estate that fixes cost and timeline with guarantees and penalties, mitigating the main risk of a ground-up project: cost and schedule overruns.

●       Location with structural demand and limited supply: Madrid's south-east corridor concentrates recurring corporate and logistics demand (Mercamadrid, industrial estates, hospitals) and strong future residential growth (Los Berrocales, Los Ahijones, Valdecarros), against a limited, outdated hotel supply with no international brands.

●       Differentiated positioning versus competitors: the local market is dominated by budget products and outdated 4-star hotels. Holiday Inn Express is positioned in an undersupplied midscale segment with a competitive ADR, supported by comparables in the Madrid area, where the brand achieves a rate premium of up to 24% over other hotels in the area.

●       Conservative leverage: the transaction is structured with a target LTV of 42%, a prudent level of debt for an internationally branded development.

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

ECONOMIC SCENARIOS

In accordance with the CNMV's criteria, in addition to the base (favourable) scenario put forward by the Manager and reviewed by Urbanitae, two additional scenarios must be published for Equity projects showing potential variations in the business plan.

1.   FAVOURABLE

The base, or favourable, scenario assumes completion of the development and the sale of the stabilised asset at a 7.5% exit yield. Total net income is forecast at €40,813,096, while total costs for executing the project are estimated at €30,654,607.

2.   MODERATE

The moderate scenario assumes an increase in the exit yield from 7.5% to 9.38%, which reduces the estimated sale price by 20%, bringing total income to €33,585,089. This decrease entails a reduction in associated taxes, resulting in total project costs of €28,654,842. As the project would not reach a 15% IRR, the sponsor would not receive a promote fee.

3.   UNFAVOURABLE

The unfavourable scenario assumes a downward deviation in the asset's estimated sale price and a reduction in the estimated initial rent under the new lease agreement to be entered into, large enough to produce a negative result, with partial loss of the capital contributed. In this case, the estimate of exit operating income (Exit NOI) has been reduced by 22%, together with an increase in the exit yield of c.25%, to 9.38% (compared with 7.5% in the base scenario). In this scenario, income falls to €26,777,209 (costs are reduced due to lower corporate income tax and marketing fees).

In accordance with the supervisor's criteria, crowdfunding platforms must not communicate the estimated return on an Equity project. The total return of a project is the FORECAST INCOME minus the ESTIMATED COSTS, divided by the TOTAL EQUITY. For example, in the FAVOURABLE scenario, the calculation would be FORECAST INCOME (€40,813,096) minus FORECAST COSTS (€30,654,607) divided by TOTAL EQUITY (€10,210,000). The result of this quotient multiplied by 100 gives the percentage return on the capital contributed in this scenario.

Forecasts are merely estimates and are subject to variations that may arise from economic, social or other circumstances over the life of the project.

MARKET

To validate the main assumptions of the investment opportunity (acquisition price, development costs, operating business plan and estimated exit price), Urbanitae, in addition to its own analysis, relies on a commercial due diligence, which analyses the market, sales transactions and operating projections, and a technical due diligence, which analyses the technical feasibility of the project and the assumed costs. Both due diligence reports have been prepared by top-tier firms.

WHEN WILL I GET MY MONEY BACK?

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

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

●       Second quarter of 2027: grant of the building permit and start of construction works. The permit was applied for in July 2026.

●       First quarter of 2029: completion of works.

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

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

Please bear in mind that in any real estate investment, timelines may be extended or shortened.

RISKS

All investments involve risk. Below we set out the main risks we have identified for this project, together with the measures that mitigate them:

Developer risk: insolvency, fraud or incompetence of the developer. Mitigated by the solid, proven track record of Alta Real Estate and its construction company Aldara, with more than 100 completed projects.

Construction risk: cost overruns or delays in the works. Mitigated through a turnkey delegated development agreement with a fixed price, fixed timeline and guarantees and penalties for non-compliance, which transfers construction risk to the developer.

Permit risk: refusal or delay by the City Council in granting the building permit. Mitigated because the permit has already been applied for (July 2026), with approval expected in the second quarter of 2027, and because the turnkey agreement includes a milestone schedule and contractual guarantees.

Commercial (exit) risk: deviation in the sale price or longer marketing periods. Mitigated by (i) the product's appeal to family offices and institutional investors, (ii) a conservative exit assumption (7.5% exit yield), and (iii) an early marketing strategy from the start of construction.

---------------------------------------

Warnings and Risks

Urbanitae Real Estate Platform (Urbanitae) is neither an investment firm nor a credit institution and is not a member of any investor compensation scheme or deposit guarantee scheme. The information published by Urbanitae Real Estate Platform on its Website is for information purposes only and shall under no circumstances be considered a recommendation to investors.

The crowdfunding projects published by Urbanitae on its Website are neither authorised nor supervised by the Comisión Nacional del Mercado de Valores (CNMV) or the Banco de España; therefore, none of the information provided by the sponsor in relation to the projects has been reviewed by them.

Urbanitae expressly states that, if the full investment amount of the project is not reached, the fundraising period may be extended by up to 25%, under the same investment conditions. Likewise, the project may be funded by Urbanitae once at least 90 per cent of the funding target has been reached, after deducting any stake in the project that the platform itself may hold. All of the above in accordance with Article 69 of Law 5/2015 on the Promotion of Business Financing.

Investing in the projects published on this Website may entail certain risks, such as the risk of total or partial loss of the capital invested, of not obtaining the expected financial return, or of lack of liquidity. We therefore advise investors to invest only an amount they are prepared to lose and suggest that they diversify their investments to minimise and mitigate potential risks. If the sponsor is unable to repay or remunerate the funds received, Urbanitae will not reimburse investors for their investment.

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

●       Urbanitae shareholders holding at least 20% of the share capital or voting rights;

●       Urbanitae directors or employees;

●       Natural or legal persons linked to such shareholders, directors or employees by control.

In this regard, Urbanitae guarantees that investments by any of these persons will be made through the platform, on the same terms and conditions as any other investor, without receiving any preferential treatment or privileged access to information compared with other investors registered with Urbanitae. In accordance with Urbanitae's Internal Code of Conduct, these investors are required to report these transactions internally.

Once the investment in the project has closed, Urbanitae will provide, in the project's investment area, information on the amount invested by these investors, the type of investor that made the investment and the percentage it represents of the total amount funded, always in compliance with the data protection policy.