Boutique Hotel and Motel Acquisition Underwriting Model – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. The price bridge puts the broker's per-key comparable next to the bank's income method: $75,000 a key against $52,726, two prices, the overpay avoided, and the DSCR implied at each.
2. The two deductions a seller's P&L hides, a management fee and an FF&E reserve, take a naive $437,000 of NOI down to the $332,000 a bank underwrites, and that gap is the DSCR gap.
3. The Property Improvement Plan is priced as a real cheque at change of ownership, $360,000 in the base case, loaded into total project cost and into the loan rather than assumed away.

HOTEL INDUSTRY EXCEL DESCRIPTION

Boutique Hotel and Motel Acquisition Underwriting Model is an Excel template (XLSX) with a supplemental PDF document available for immediate download upon purchase.

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.

Source: Best Practices in Hotel Industry, Integrated Financial Model Excel: Boutique Hotel and Motel Acquisition Underwriting Model Excel (XLSX) Spreadsheet, ProformaWorks