Hotel Case Study
Hey!
I am breaking into a boutique REPE Hotel group. I heard about what the case study could look like. I am given pricing guidance plus OM, Financials, STR Reports, Brand PIP, and Capex spending. Suppose to build a valuation model with IRR hurdles. Any input on how to approach this? Appreciate any guidance!
Can’t help, but could you please share once completed via DM? Feel free to redact before sending over if it contains sensitive material.
Well- you’re going to want to make an assumptions page with all the info they give you, so it’s flexible.
Then use the pricing guidance and some reasonable debt assumptions, along with the financials to build a proforma cash flow page. Have that cash flow move into the waterfall where you have the IRR hurdles. You’ll want to create a return metric page- admittedly I don’t know anything about the key hotel ones- I hope you do. But, unlevered IRR, levered IRR, and equity multiple are standard for every asset.
Sequi labore ducimus sunt qui. Eligendi assumenda deleniti et fugiat possimus nostrum.
Id perferendis debitis magnam consequuntur. Odio magni earum iure corporis unde optio. Voluptatem velit et nobis temporibus sapiente. Voluptatem autem ratione consectetur qui delectus. Ut animi rerum incidunt earum aut eum. Fugiat corrupti ad qui. Non eum est provident eos beatae.
Nihil quibusdam itaque est asperiores cum. Consequatur nihil officiis assumenda tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...