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 both the real estate model and hospitality financial model bundles 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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