Hotel Development or Acquisition Financial Feasibility Spreadsheet

 This underwriting template was designed specifically for starting acquiring a hotel. I've done a range of residential and commercial real estate financial models / templates, but never specifically for a hotel. It ended up being a combination of logic from hospitality style models and short-term rentals. Everything came together wonderfully and this financial model is very useful.

$45.00 USD

After purchase, the template will be immediately available to download in Excel. This spreadsheet is included in the real estate templates bundle as well.


Debt / Fixed Cost Logic Upgrades

Initial Debt / Fees / Acquisition / Development Assumptions:

  • User can define up to 6 sections for how the endeavor begins. The user can utilize a single cost section or a combination of multiple sections. Each initial cost section has 22 slots. These could be things like purchase price, closing costs, construction, development, and other soft / hard costs. I built it on a monthly schedule to give maximum flexibility. For each row, there is now a yes/no selector for financing and the percentage financed.
  • The above sections are all subject to fees charged to the deal and paid to the GP / Sponsor. The user can define the % (if any) of each of those costs that populate as fees. This would be things such as 'acquisition fee' , 'renovation management fee' , 'and anything else as a % of startup cost'.
  • These initial costs have the option to run through an interest only loan, flow directly to a regular p+i loan, or be fully funded by equity (user can define the % of the total costs that are financed (management fees excluded). There is an option for a REFI to happen on a defined month in the future and all the terms / prepay fees therein.

Booking Revenue / Rent Roll Schedule:

  • User can define up to 20 room types, the count of each room type, and the base booking rate per night (also define annual base room rate growth).
  • There are configurations for the % variance from base price for each base room rate over each month of the year. This accounts for supply/demand seasonality.
  • There are configurations for the occupancy rate for each month of the year and an improvement percentage can be entered per year.

Operating Expenses:

  • There is a staff schedule with definable inputs for staff type, count, monthly cost, annual growth rate and payroll taxes/benefits.
  • A separate schedule exists for fixed expenses, their monthly amount, start month, and annual growth rate

Equity Structure:

  • First option is a simple cap table with defined inputs for total equity contributed by LP/GP and a defined percentage for how much of the distributions flow back to each. The model will solve for minimum equity required based on all negative cash flows.
  • The second option is an monthly IRR hurdle-based waterfall where there are defined equity contribution rates and the distribution rates vary based on the return achieved by the LP. All acquisition / management fees are deal expenses and get paid as income to the GP. IRR / equity multiple will be display for both sides of the real estate joint venture structure and this is based on monthly cash flows.

Output Summaries:

  • Monthly / Annual operating / cash flow detail
  • Monthly / Annual Income Statement, Balance Sheet, and Cash Flow Statement
  • DCF Analysis / IRR for project as a whole, Investor, and Sponsor
  • Annual Executive Summary (shows deal level financial performance)
  • Operating Visualizations
  • Income report for the Sponsor and Investor (all contributions and source streams)

More Features:

  • Up to 10 Year Forecast
  • Dynamically select end month
  • Select if the hotel is sold or not at termination of the financial forecast
  • Exit value based on trailing 12-month NOI and a defined exit cap rate
  • Going-in cap rate calculation
  • Includes depreciation drivers for each initial cost section
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