APPENDICES

APPENDIX A: GLOSSARY — EVERY TERM DEFINED

ACR (Asset Coverage Ratio): Ratio of hotel value + reserves to total HPOT issued. Healthy ACR >1.0. Formula: (Hotel Value + Reserves) / Total HPOT.

ADR (Average Daily Rate): Average price per occupied room. Formula: Room Revenue / Rooms Sold.

Bankruptcy Remoteness: Legal isolation of SPV from other entities. If one hotel fails, creditors cannot reach other assets.

BSC (Binance Smart Chain): Blockchain network where HRPT and HPOT tokens are issued. EVM-compatible, low fees (~$0.50 per transaction).

CapEx (Capital Expenditures): Major improvements or renovations (e.g., bathroom overhaul, new HVAC). Funded from reserves.

CIS (Collective Investment Scheme): Swiss regulatory category for pooled investment funds. Homeunity aims to avoid CIS classification.

Comp Set: Comparable hotels in same market (used for benchmarking performance).

Digital Twin: Virtual replica of hotel operations (real-time data dashboard).

Disposition: Sale of hotel. Requires 75% HPOT holder vote. Proceeds distributed pro-rata.

DLT (Distributed Ledger Technology): Blockchain. Swiss law recognizes DLT-based Registerwertrechte.

FINMA: Swiss Financial Market Supervisory Authority (regulator).

GOP (Gross Operating Profit): Revenue minus departmental expenses (before fixed costs like property tax, insurance).

HAFS (Homeunity Asset Facilitation System): Onboarding platform for HPOT issuance. Includes KYC, suitability checks, payment processing.

HPOT (Homeunity Participation Object Token): Token representing participation in hotel NOI. One series per hotel. Swiss Registerwertrechte.

HRPT (Homeunity Protocol Token): Utility token for Travel Club access. No profit rights. Fixed supply (300M).

KYC (Know Your Customer): Identity verification process (passport, proof of address, liveness check).

Lock-Up Period: Time during which HPOT cannot be transferred (typically 90 days after issuance).

NAV (Net Asset Value): Hotel value (appraised or estimated) divided by total HPOT. Example: $11M hotel / 10M HPOT = $1.10 NAV.

NOI (Net Operating Income): Revenue minus operating expenses. Source of HPOT distributions. Formula: Revenue - OpEx.

Occupancy Rate: Percentage of rooms occupied. Formula: Rooms Sold / Total Rooms Available.

OTA (Online Travel Agency): Booking.com, Expedia, Hotels.com, etc. Typically charge 15-25% commission.

PMS (Property Management System): Hotel software for reservations, check-ins, billing (e.g., Opera, Cloudbeds).

Record Date: Snapshot date for distribution eligibility. Hold HPOT on record date → receive distribution.

Registerwertrechte: Swiss legal term (Art. 973d CO) for registry-recorded contractual rights. Foundation of HPOT.

Reserve Fund: Pool of capital (20% of NOI) set aside for CapEx and emergencies.

RevPAR (Revenue Per Available Room): Key hotel metric. Formula: ADR × Occupancy.

SPV (Special Purpose Vehicle): Separate legal entity owning one hotel. Provides bankruptcy remoteness.

Supermajority: 75% vote threshold for major decisions (disposition, operator change, debt).

Travel Club: Homeunity membership program. HRPT holders access internal hotel rates (50-85% below market).

Waterfall: Priority order for cash distributions (OpEx → Reserves → Fees → HPOT holders).