In this template we cross between hospitality and real estate. The model is flexible to handle all sorts of approaches to this type of business. The business of buying or developing or renting a property and putting together events for a fee. Think weddings, corporate events, or private parties.
$75.00 USD
After purchase, the template will be immediately available to download. It is also included in the real estate bundle, the industry-specific bundle, the hospitality bundle, and the Super Smart Bundle.
Initial Acquisition or Development Assumptions
- If you are acquiring a property, define purchase price, acquisition loan amount, seller financing loan if applicable, general loan terms, and renovations if necessary. There is an option to REFI the initial loans at some future month the user can define.
- If this is a joint venture with GP fees, define acquisition fees, debt placement fees, and any other initial fees.
- If you are developing a property from the ground up, there is a 'Development' tab to define all hard / soft costs, the percentage of those costs that hit cash flow each month, a defined LTC (loan-to-cost) percentage, and non-financed development costs if applicable. The construction loan is dynamic, with an I/O period, rate, month of switch to permanent loan, and option to REFI that in the future.
- REFIs are based on a defined cap rate against the trailing 12 months from the REFI month and LTV rate.
Venue Assumptions
- Define the count of events per year for up to three types of events.
- Define seasonality for each event type (percentage of the total events that are planned to happen in each month of a given year).
- Configure five revenue streams, including basic rental fee, catering fees, beverage / bar packages, add-ons, and 3rd party vendor partnership referral fees.
- There is a helper tab to help drive expected costs for catering and show margins for three catering package types. The bar packages and add-ons have defined margins expected to be earned as well as bartender costs to drive costs for those items. 3rd party partnerships have a defined referral fee rate.
- Define all direct fixed costs per event that are not accounted for above (up to 9 slots per event type).
OPEX
- To account for things like maintenance, repairs, year-round staffing, legal fees, potential leasing if you are not buying / building the property, there is a tab to define the start month of each cost, the starting annual cost, and expected growth of that cost over time.
- Additionally, this has a section to define costs as a percentage of revenue, which helps to account for things like property management fees.
Cash Flow Management
- Each of the investor return areas has a place to define the cash invested and cash distributed. There is a formula that shows how much cash is in the operating account over time based on these two things affecting the operating cash flow itself.
Joint Venture Assumptions (4 scenarios)
- Monthly IRR hurdles with defined contribution rates, IRR hurdles, and distribution rates.
- Simple split where minimum equity required is the investment and there are inputs for contributions and distributions (no hurdles, just a straight pro rata split).
- Annual IRR hurdles with defined contribution rates, IRR hurdles, and distribution rates. This runs off the 'DCF Analysis' tab that organizes the cash flow properly into annual periods.
- Preferred return for the final scenario and this has an input for an investor preferred return as well as how cash is split during the preferred return phase, up until equity is fully repaid, and thereafter.
Note, you don't have to use any or the above or you can just use one of them. Simply hide any tabs that are not relevant. Those joint venture tabs are all standalone independent tabs that are summarized on the Global Control tab.
Other Summaries
- Sources and Uses (detailed view and broad view). This is dynamic and will update as the minimum cash position month changes. You will get a clear view of all the cash required during the stabilization phase of the project and then after the minimum cash position is reached, all items beyond that are part of operations and no longer a source or use. The formulas do all these calculations automatically.
- IRR and Equity multiple reports for each of the four scenarios.
- Annual Executive Summary as well as a summary on the primary venue assumption tab so the user can see how different inputs affect all aspects of the financials.
- Monthly and Annual Pro forma, which shows a detailed look at all revenues, expenses, Net Operating Income, debt, exit, and final cash flow.
Keep in mind, if you are just focusing on the service part of this business and plan on leasing the property instead of owning it, simply 0 out the purchasing / development assumptions and enter your lease costs in the OPEX tab. The exit value will still be relevant and will take your operating income as the lever to understand potential exit proceeds.
Also note, as you change the assumptions, this will result in differing cash requirements and available distributions. You will need to adjust the equity invested amount for joint venture scenarios 1, 3, and 4 accordingly. For scenario 3 and 4, you will also need to adjust the distributions, but for scenario 1, that is all automated. Scenario 2 is fully automated, so you never have to change anything on that view.
I also offer financial model customization services.
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