Hotel Complex - Financial Model (5 Yrs. DCF and Valuation) (Excel XLSX)

The Hotel Complex financial model is a comprehensive tool designed to analyze the financial aspects of a multi-facility hotel operation. It encompasses key components such as revenue streams, operating expenses, occupancy rates, room rates, and financial projections. This model provides insights into the financial performance of the hotel complex, enabling informed decision-making, budgeting, pricing optimization, and growth planning.
Key Components:
•  Revenue Streams: The model assesses revenue sources from room bookings, food and beverage services, and mobile app memberships.
•  Operating Expenses: It includes costs for staff, maintenance, utilities, marketing, administrative expenses, and other operational expenditures necessary to run the hotel complex.
•  Occupancy Rates and Room Rates: The model factors in projected occupancy rates and room rates, influencing revenue and profitability.
•  Financial Projections: It generates forecasts for revenue, expenses, profit margins, and cash flow, allowing stakeholders to assess the financial health and growth potential of the hotel complex, as well as the valuation of the business.
Key Benefits:
•  Informed Decision Making: The Hotel Complex financial model empowers owners and operators to make data-driven decisions regarding pricing strategies, marketing campaigns, facility upgrades, and resource allocation.
•  Budgeting and Cost Control: By providing a comprehensive overview of expenses and potential revenues, the model assists in budgeting and cost control measures, ensuring financial stability.
•  Pricing Optimization: The financial model aids in optimizing pricing strategies by considering market conditions, occupancy rates, and competitive rates, ensuring profitability and occupancy.
•  Growth Planning: Financial projections support growth planning by allowing stakeholders to assess the potential outcomes of expanding facilities (3 locations are included) or improving services.
In summary, the Hotel Complex financial model offers valuable insights into the financial performance and growth potential of a multi-facility hotel operation. It supports informed decision-making, budgeting, pricing optimization, and growth planning, all of which contribute to the success and profitability of the hotel complex.
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MODEL GUIDELINES
So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.

On the manual tab you can feed the general information for the model such as: project name & title, responsible, timeline of the model and date and currency conventions.

Additionally, there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.

There is also color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents, and checks).

Moving on to the inputs (inputs have been separated into several tabs based on the inputs needed such as sales, costs, SG&A, etc.). Detailed inputs for revenues such as occupancies per day of the week, number of rooms per category, pricing per room type, spent for drinks and food, costs splits between direct costs (direct labor costs, and direct non labor cost) and indirect costs (such as headquarter staff, maintenance, utilities, admin costs as well as other costs), working capital (receivables, payables, and inventory), fixed assets and capex (split into initial investment and new maintenance capex), debt & equity financing as well as valuation assumptions (such as discount rates used in the weighted average cost of capital).

In the summary tab you can see a high-level report with the main metrics and value drivers of the model. It can be readily printed on one page for your convenience.
In the Hotel Metrics tab, the major KPIs of an hotel business are presented (RevPAR, TrevPAR, Occupancy, ADR, GOPPAR).
Calculations: this is where all calculations are performed. The revenues are calculated and deducting the operating costs adjusted for inflation the operating profit is resulting. Based on the assets financed and the gearing of the financing the interest and depreciation are occurring. By using the working capital assumptions, the impact of the business cycle is presented. Finally, depending on the level of the investment considered the relevant debt financing is calculated (Long term debt and overdraft).

In the Financials tab: everything is aggregated here into the relevant statements: profit and loss, balance sheet and cash flow.

Moving to the Valuation tab, a valuation is performed by using the free cash flows to the firm and then a series of investment metrics are presented (Net Present Value, Internal Rate of Return, Payback Period, Discounted Payback Period).

In the Graphs tab: Various graphs present the business metrics, revenues, operating costs, and profitability. Then multiple charts present the cash flows which results in a valuation on a project basis as well as on an equity basis together with the feasibility metrics.

Checks: A dedicated worksheet that makes sure that everything is working as it should!

Important Notice: Yellow indicates inputs and assumptions that the user can change, blue cells are used for called up cells, and white cells with black characters indicates calculation cells.