Hotel Investment Financial Model

The Hotel Investment Financial Model provides a framework to forecast the expected cash flows for a hotel investment and calculates the relevant investor metrics such as the IRR (levered and unlevered).

Hotel_Investment
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This financial model has been reworked based on the feedback received on the previous hotel valuation model. This model now is an alternative version of the Hotel Valuation Model. The main focus of the analysis of this financial model lies in IRR.

The Hotel Investment Financial Model provides a framework to forecast the expected cash flows for a hotel investment and calculates the financial metrics of relevance to investors such as the IRR (levered and unlevered).

The Excel model template provides the following:

  • Executive Summary with key charts, key metrics, and key assumptions. Simply change the assumptions on the right and see immediately the effect on the charts for easy to understand
  • Yearly financial projections for 10 years
  • Key Metrics
    • Average room rate
    • Average occupancy rate
    • Number of rooms
  • Revenue Streams
    • Room rental
    • Food & Beverage
  • Costs
    • Commission costs for affiliate marketers and transaction costs
    • Cost of sales
    • All other operating expenses (OPEX) costs (modeled as fixed costs)
  • Financial Statements (Yearly) – Income Statement, Balance Sheet, Cash Flow Statement
  • IRR analysis based on levered cash flows
  • Sensitivity Analysis on IRR with Switch for levered and unlevered IRR
  • Valuation comparison based on alternative methods such as Discounted Free Cash Flow (DCF), EBITDA multiple and cap rates
  • Debt schedule which models two layers of financial debt (junior and senior debt) – if needed
  • Fixed asset depreciation schedule with different categories of fixed assets
  • Forecast of all relevant financial ratios
  • Print-friendly layout including charts and graphs

The Executive Summary page provides the hotel investor with a comprehensive overview of the financial economics of the envisaged investment in a hotel.

The model is available in two versions, one with only a preview pdf file (Free Version) and all cells editable in Excel (Paid Version).

Filetype: .xlsx (Microsoft Excel 2008 for Mac) and .pdf

 

 

Users who purchased Hotel Investment Financial Model, also purchased:
Hotel Financial Model and Valuation
Hotel Financial Model and Valuation
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Reviews

  • Avatar How to change currency

    is it possible to change the currency ? how ?

    1 of 2 people found this review helpful.

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    • Hi Maxime, thank you for leaving a review of this model template. Regarding your question, as you can see in the Assumptions Section > General Assumptions, you can change the Currency accordingly.

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  • Avatar Hotel

    It’s a nice model if you manage everything. There should be a option based on new hotel dynamics. Buying a asset and adding a management company. The management company pays a fix rent + variable rent, per room. Obviously having a deposit (6 months , etc). Hotel business are becoming more and more complex and specialization is going this way.

    Thanks,

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  • Avatar Great model BUT have a question

    Hi! Very clear and easy to use model. However, on the balance sheet page, how did you obtain the value of 6’569’000 for Equity under the column “Closing”. Somehow the excel formula does not show the formula. It surely cannot be Asset – liabilities. Can anybody clarify?

    1 of 2 people found this review helpful.

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    • The Closing Balance Sheet is just pro forma to set the starting point for the Balance Sheet going forward for those who like to see a proper Balance Sheet. The $6'569'000 is the amount needed so that Assets = Liabilities + Sh. Equity at the time you acquire the asset. For the model this calculation is not relevant as IRR calculation bases on future cash flows and not on the balance sheet you acquire at point of purchase. If you feel this is confusing, simply set the figures in the closing balance sheet to zero as its really not relevant for the calculation. We might change this in the next model version to avoid confusion.

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  • It is quite clear and useful to people who has no financial background

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  • Avatar sales

    hi

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