Hotel Model Test

What kind of role? Modeling anything is as complicated as you want to make it and depends on how detailed you want to get. Models don’t need to be detailed unless that’s what the prompt calls for (doesn’t matter what sector it is).

My guess is they’ll give you a historical P&L and/or a 1 year budget or reforecast and then tell you to make some growth, margin, and adr/occ assumptions to create a 5 year projection. You might even get a STR report and get asked to include penetration assumptions. They’ll probably also ask you to include some capex assumptions and to value the property to a achieve a certain IRR, cap rate, or yield on cost. Goes without saying that it will likely be a levered analysis so you’ll also need to model simple debt (typically fixed interest rate with proceeds on an LTV, maybe with or without amortization) and find the levered metrics (lev IRR, cash yields, equity multiple). Asking you to include sensitivity tables is also pretty standard.

1.5 hrs is actually a decent amount of time / not unreasonably short. If it’s for a more competitive role (REPE) or experienced hire, you’ll also likely be asked to model a JV waterfall with at least two tiers (typically only IRR). That said, if you’re asking what’s in a modeling test, then my guess is this is a pretty junior role and that won’t be included. If you can do the above, then you’ll be ready for practically any junior Acq or AM role.