Hotel Acquisition – 10 Year Financial Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. Advanced financial model presenting a potential Hotel acquisition.
2. Enables users to get into details of every step of a hotel operating analysis and project a hotel asset's cash flows.

VALUATION MODEL EXAMPLE EXCEL DESCRIPTION

This product (Hotel Acquisition – 10 Year Financial Model) is an Excel template (XLSX), which you can download immediately upon purchase.

A hotel acquisition involves purchasing an existing hotel property as an investment, typically for generating revenue through guest stays, events, and amenities. The process includes financial analysis, property valuation, due diligence on the building's condition, existing management contracts, occupancy rates, and market performance. Investors may seek value-add opportunities through renovations, rebranding, or improved management. A successful hotel acquisition can generate consistent cash flow and long-term appreciation in a prime location.

This Financial model presents an investment scenario of a Hotel, from the acquisition of the property to a potential future sale. The model contains the basic elements required to determine a range of possible IRR returns to an investor, given a high-level set of assumptions about the asset's operating forecasts, leverage, and exit price.

Model Structure

•  General Setup & Acquisition Inputs
Operating and Acquisition-related inputs, including Project Timing, Acquisition, Renovation and Property Sale Assumptions, Hotel Metrics (6 Room Types, Hotel Guests, Bookings Length, etc.), Revenue (Accommodation, F&B, Retail Shops, Spa, etc.), Operating Expenses, Capital Expenditures and Financing through Equity and 2 Loan types.

•  Room Prices and Occupancy Rates
Assumptions for room rates per Apartment type including low and high season and room expenses. The Occupancy rates tab includes assumptions for Hotel's avergae occupancy rate per month and year.

•  Debt Schedules
Amortization Schedules for the 2 types of loans provided in the model

•  Monthly Cash Flow
Monthly CF presents all the operating cash flows of the property over monthly periods.
It allows users to control the timing and how the cash flows over that time.

•  Annual Cash Flow
A roll-up of the monthly cash flows into annual periods from property acquisition to disposition. It includes also calculation of Stabilized yield on equity and cost and property sale taxes

•  Performance Reports
The model includes Break-even Analysis, KPIs and Perfomance dashboard reports assisting users to monitor hotel's operations and profitability.

•  Project Returns
Report presenting project unlevered and levered returns (Pre-Tax & After-Tax IRR, MOIC, Cash Outflows, Inflows and Profits)

•  Investors' Returns Waterfall
A 4-tier IRR hurdle waterfall model to distribute proceeds between investors. The model allows for up to four tiers (IRR hurdles) and assumes only one sponsor (i.e., GP) and one LP. The first tier distributes cash flow to the partners until the LP has achieved some defined preferred return and received a full return of capital. Assuming the preferred return hurdle is hit in tier one, cash flow is distributed in tiers two through four based on a defined promote structure and hurdle rates as outlined by the user.

•  Acquisition Summary:

A high-level summary of the project key info, including:

•  Key Project Metrics (Total Rooms, ADR, RevPAR, TRevPAR, NOI PAR, Acquisition and Exit Yield, Stabilzed Yield on Equity and Cost)
•  Uses & Sources of Cash
•  Operations Summary (Gross Revenue, Net Operating Income, Net Cash Flow)
•  Property Sale and Project Level Return Metrics (Unlevered & Levered)
•  Partnership Level Return Summary (LP's & GP's)
•  Dashboard

Detailed instructions for the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you, however, experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.

Source: Best Practices in Valuation Model Example, Hotel Industry Excel: Hotel Acquisition – 10 Year Financial Model Excel (XLSX) Spreadsheet, Profit Vision