What’s the best resource for learning how to underwrite hotels and projecting the revenue and expenses for them? I understand the asset class, but struggle with the assumptions behind them. The model we use requires a deep dive for all line items.
FYI - currently underwriting a hotel development which is my first hotel UW
What specific assumptions are you struggling with?
Mostly some miscellaneous revenue like a spa and retail, then operating expenses. I know the expenses are based on either a fixed dollar amount, %, POR, or PAR of their revenue, but to really take a deep dive into things like housekeeping labor or A&G is where I get stuck. What sources do you use to predict things like staffing and wages?
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