NYLO Hotels Development - Expansion & Growth

NYLO has set the goal of having 50 hotels open or under construction by end of 2015. This includes both
NYLO and XP by NYLO hotels. NYLO's growth plan will be accomplished by pursuing three avenues simultaneously:

1. Corporate owned, developed and operated hotels.
2. Franchise agreements with third party owners, developers and operators.
3. Management agreements with third party owners, developers and operators.

As a core part of its business plan, NYLO made the strategic decision not to launch the franchising until it had developed, constructed and operated at least a few corporately owned hotels in order to fully understand the product from a developer's perspective.

NYLO will continue to corporately develop, own and operate additional hotels going forward; however,
franchising and managing hotels for third parties will play an increasingly significant role in the brand's growth. NYLO first made the brands available for franchising in February 2008 and has filed a franchise disclosure document (FDD) in 47 states and is therefore licensed to sell franchises in 47 states.

NYLO offers developers and franchisees an innovative concept that is efficient to construct and the personal support of its experienced senior management team.

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