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 on 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
- 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 the input cells editable (Free Version) and all cells editable (Paid Version).
Filetype: .xlsx (Microsoft Excel 2008 for Mac)
A screenshot of the Executive Summary Page is provided below.
|Industry||Financial Model, Hospitality, Hotel|
|Summary||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).|
|Screenshots / Pictures|
|Use Cases||DCF Model, Excel, Financial Feasibility, Financial Projections, IRR, Price Per Room, Sensitivity Analysis, Valuation|