Hotel Ground Up Development Financial Model

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).