Hotel Underwriting and Valuation Model – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Analyze hotel operations and value in one linked model, from room revenue and USALI profit metrics through a 10-year DCF.
2. Evaluate capital structure and investor returns using LTV, DSCR, leveraged and unleveraged IRR, equity multiple, and debt amortization.
3. Test valuation assumptions and joint-venture economics with sensitivity tables plus a preferred-return and promote waterfall.

VALUATION EXCEL DESCRIPTION

Hotel Underwriting and Valuation Model is an Excel template (XLSX) available for immediate download upon purchase.

Hotel Underwriting and Valuation Model is a fully editable financial model for evaluating hotel investments. It is designed for real estate analysts, hotel investors, finance professionals, students, and advisors who need a structured starting point for hotel underwriting without building a model from scratch.

The workbook follows the economics of a hotel as both an operating business and a real estate asset. Users enter assumptions in a dedicated Inputs worksheet. The remaining worksheets calculate operating performance, valuation, debt service, investor returns, sensitivity ranges, and joint-venture distributions. Editable inputs are visually distinguished from formulas and linked cells so users can understand where changes should be made.

The model includes seven worksheets and 730 formulas. The USALI operating statement projects rooms, food and beverage, and other revenue; departmental costs; undistributed operating expenses; management fees; fixed charges; FF&E reserve; EBITDA; and key hotel metrics such as ADR, occupancy, RevPAR, GOPPAR, and EBITDA per available room. The DCF worksheet projects ten years of unlevered cash flow and estimates terminal value using an exit yield. It also shows value per room, entry yield, discount to asking price, and other acquisition metrics.

The debt and returns module calculates acquisition financing, amortization, interest expense, DSCR, leveraged cash flow, leveraged and unleveraged IRR, and equity multiple. A two-dimensional sensitivity table shows how value changes across exit-yield and discount-rate assumptions. The joint-venture waterfall models capital contributions, preferred return, return of capital, promote, and partner-level returns.

The included example is a fictional four-star urban hotel with 150 rooms in Madrid operating throughout the year. The assumptions are educational and do not represent a real property. Users can replace them with their own assumptions to analyze urban hotels, resorts, or seasonal assets. The workbook is written in Spanish and contains no macros or external links.

This model is intended as an analytical and educational tool. It simplifies certain tax, working-capital, and sale-tax considerations and does not replace a formal valuation, legal advice, tax advice, or project-specific due diligence.

Source: Best Practices in Valuation, Hotel Industry Excel: Hotel Underwriting and Valuation Model Excel (XLSX) Spreadsheet, Roberto Hernando Gómez