Hotel Ground Up Development Financial Model
Hi guys, i just started working at this small REPE and was assigned to model a hotel ground up development with monthly cash flow model and interim/perm loan and 2 tier waterfall,...I havent done modeling a hotel before, so I am really stressed out now, I just wonder if anyone could share with me their templates just so i can learn the gist of the this...thank you so much guys!!
I know this is not exactly what you wanted, but tossing it out there for you (until something better comes your way): http://www.getrefm.com/hotel-excel-model-templates-page-40
Thanks! But i dont know if i wanna pay that much for this...
It's worth it. Most of the time - with anything - you get what you pay for. You can't get too far if you are lazy AND cheap.
It seems like your stress stems from the hotel product type:
Monthly CF
Revenue Room Rev - ADR * # of keys * # days in the month * Occupancy Food & Beverage Rev - $/occupied room Telephone Rev - $/occupied room
Departmental Expenses Room Exp - % of departmental rev Food/Bev Exp - % of departmental rev Telephone Exp - % of departmental rev
Undistributed Expenses Franchise Fee - % of total revenue Management Fee - % of total revenue Utilities - $/occupied room R&M - $/year Advert & Marketing - $/year G&A - $/year
Fixed Expenses RET Insurance
NOI FFE Reserves - % of total revenue Interest Exp
NCF
Hotel major CF inputs: 1) Annual ADR % growth 2) Occupancy % by year 3) Growth rate of other revenues (keep it simple, no need to break down all departmental rev) 4) Annual RET growth
You can assume margins on departmental rev to departmental exp will remain stable. This will alleviate major headaches.
Don't worry about modeling seasonality- a buyer will value the subject on TTM financials. That being said, don't worry about modeling a cap rate dispo on FWD-12 NOI (for the same reason)
You want to make sure you include a Revenue Multiple within the dispo calculation trigger (the trigger will allow you to dispo by cap rate, $/key, OR revenue multiple).
Very helpful info. Thank you.
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