DCF Model, Excel, Financial Projections, NPV (Net Present Value), Sensitivity Analysis, Valuation

The Hotel Valuation Financial Model provides the framework to value a hotel via the Discounted Cash Flow (DCF) method.

Based on user’s feedback we have reworked this model to focus on the DCF value and also have added the Sensitivity Analysis to it. The previous IRR analysis part now is included only in a separate Hotel Investment Model.

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 Assumptions
- Average room rate
- Average occupancy rate
- Number of rooms
- Commission costs for affiliate marketers and transaction costs
- Cost of sales
- All other operating expenses (OPEX) costs (modeled as fixed costs)
- Discount Rate (WACC)
- Exit EV/EBITDA Multiple
Revenue Streams
- Room rental
- Food & Beverage
Financial Statements (Yearly) – Income Statement, Balance Sheet, Cash Flow Statement
DCF Valuation Analysis
Sensitivity Tables
- Show the results what happens when key assumptions such as the average room rates or occupancy rates will be changed
- Switch for Enterprise Value / Equity Value
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