Advanced financial model presenting an acquisition scenario for a Hotel.
The main purpose of the model is to enable users to get into details of every step of a hotel operating analysis and project a hotel asset’s cash flows.
The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.
• The template includes Input Tabs (gold color) and Output Tabs (dark blue color)
• Formulas are in black, hard-coded numbers in blue, and links from other worksheets in green.
• User needs to update only the blue colored hard-coded numbers
• As a general rule, try to avoid changing the formulas in the cells in the output tabs. Please contact us if you need assistance on the functionality of the template
This Tab includes General Hotel Business Data as well as Revenue and Cost of Sales Drivers & Assumptions.
User needs to update all blue-colored numbers for the calculations in the model to function properly.
The summary tab includes all the critical information about returns and assumptions ready for a third party to review.
This page summarizes the following:
• General Info & Timing
• Acquisition, Financing and Exit Assumptions
• Risk & Return Metrics
• Year 1 Net Operating Income Breakdown
• Partnership Level Return Summary
• Market Penetration Summary
• Sensitivity Analysis
Cash Flow Summary
The CF Summary tab gives the user a high-level review of the entire investment cash flow, from acquisition to disposition.
It includes unlevered and levered cash flows and free and clear return, cash on cash return, debt service coverage ratio, and the debt yield metrics per year.
This tab includes 3 Statements Financial Model for a 10-Year Forecast
User needs to update the blue colored figures in the Assumptions Section
COMPS & Penetration Analysis
This tab includes competitive data to analyze the project against the competition with regards to occupancy, ADR, and RevPAR.
User needs to input the room count for the hotel comps, competition occupancy rates, and the projected ADR of the comps set
Waterfall – IRR Hurdles
This tab contains a standard 4-tier IRR hurdle waterfall model to distribute proceeds between the general partner and limited partner.
User can adjust the equity contribution split as well as the tier 1 proceeds split, and promote and hurdle rate in each tier.
All the assumptions can be altered using the blue cells in the Promote Structure box.
Revenue & COGS
This tab is used to calculate Revenue & COGS per Service
User needs to input the occupancy rate and the ADR Growth Rate.
Revenue and COGS calculation are based on these two inputs and the initial inputs in the Home Tab
For Other Departments Revenue and COGS calculations, the user needs to update the blue colored figures containing Year 1 Assumptions and Growth Rate %
– This tab includes Hotel Payroll per Department. User needs to input the number of employees and the average monthly salary per position and the payroll tax rates
– On the top of the sheet, there is an option to calculate the forecasted payroll based on either an annual growth percentage or as a percent of total revenue.
– User need to select the desired option from the drop-down list (cell C10)
This tab includes a detailed analysis of Variable and Fixed Operating Expenses.
In every Expense Category, the user has the option to calculate the results based on either an annual growth percentage or as a percent of revenue by selecting the desired calculation method from the drop-down lists included in the blue colored cells in column C.
Throughout the tab, the user needs to carefully update all blue-colored figures for the calculations to work properly.
This tab presents the Capital Expenditures throughout the 10 Year Forecast and calculates fixed assets depreciation
User needs to manually input, opening balance, additions, and depreciation rate % in each Fixed Asset Category
Help & Support
Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in these instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.