Every hotel pro-forma you will be shown leads with a RevPAR and stops at a proud owner cash flow. A lender does neither. It discounts RevPAR to the NOI the property actually nets, after a management fee and an FF&E reserve the seller never booked, caps that at a going-in rate, and hands you a brand-mandated Property Improvement Plan cheque at closing. This model does exactly that on one screen, with every number a formula you can audit.
It is written for the first-time hotelier, the owner-operator and the small hospitality buyer using an SBA 7(a) or 504 loan, and it is an acquisition-underwriting model rather than another operating pro-forma. A RevPAR revenue engine takes keys times ADR times occupancy into rooms and other revenue with the RevPAR tie-out. A USALI flow-through carries departmental and undistributed costs, including the franchise fee, down to GOP, then applies the two invisible deductions, management fee and FF&E reserve, to reach the NOI a bank will actually underwrite.
The signature tab is the price bridge: the broker's per-key comparable sits beside the bank's income method, producing two prices, the overpay avoided, and the DSCR implied at each. In the base case, a 60-key midscale select-service property runs ADR $95, occupancy 62%, RevPAR $58.90 and total revenue of about $1,400,000. GOP is $532,000 (38.0%) and underwritten NOI is $332,000 (23.7%) against a naive $437,000. The bank price is $3,163,555, or $52,726 per key, against a broker price of $4,500,000, or $75,000 per key, an overpay avoided of $1,336,445, which is 29.7%. The PIP adds $360,000, total project cost is $3,646,461 and the SBA loan is $2,625,452 at 72% leverage with a 28% injection.
Coverage is printed honestly: DSCR true 1.28x, naive 1.69x, 0.84x in a RevPAR down case of minus 15%, and 0.93x at the broker's price, which is below 1.0x. Rooms coverage is 4.98x and yield-on-cost 9.1%. The five-year MOIC of 1.58x is labelled leverage-amplified and there is no live IRR by design. A capital stack tab handles buyer equity, the seller note with a full-standby or amortizing lever, and the loan, with DSCR gate, leverage and injection checks. A dedicated view nets the RevPAR lift of a flag against its franchise fee and its PIP, so the flag is not treated as free. Three segment profiles, economy highway, midscale select-service and upper-midscale branded, show that the premium segment trades at a lower cap rate, so you pay up and coverage thins.
You get a 10-tab Excel model in which every cell is a formula and which is Google Sheets safe, a plain-English guide PDF and a README. The limits are stated: the reference bands are industry-representative, drawn from sources such as STR/CoStar, HVS, CBRE, AHLA, AAHOA and BLS, and should be replaced with the target's own STR report and trailing-twelve P&L. The down case is one declared mechanism rather than a recession back-test. Educational planning tool, not financial, legal or tax advice.
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Source: Best Practices in Hotel Industry, Integrated Financial Model Excel: Boutique Hotel and Motel Acquisition Underwriting Model Excel (XLSX) Spreadsheet, ProformaWorks
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