The Hotel Acquisition &
Renovation Pro-form is an excel-based tool for accessing the viability of
acquiring an existing hotel and subsequent renovation. The model is monthly in
nature, and it is 100% unlocked with transparent and easy-to-understand formulas
that can be customized to the user's needs.
It bases the expense of the
renovation on monthly multi-room renovation with the option to stop activities
during the renovation period.
The operating Cash flow is
projected by considering key metrics, such as occupancy rates, the average
daily rate (ADR), revenue per room occupied/sold for the different departments,
and the combination of fixed and variable costs, making the template perfectly
fitted to this type of real estate.
The user only needs to input
information into the cells formatted in the dark blue font in the input sheet.
Any other formats are formulas or labels.
The Model is
provided the template with information from a hypothetical business model for a
Fast Food Franchise for demonstration.
• Revenue & COGS Projections:
Sales Breakdown and distribution costs by different Departments, allowing the
assessment of the profit for the different departments,
• Undistributed Expenses: modeled
as Fixed and Variable
Financing: Modeling of the
acquisition and permanent Loan
Sale valuation of the hotel based
on forwarding Net Operating Income (NOI)
Assumptions: Input of operating
metrics such as ADR, RevPAR, RevPOR, Department, etc.
Summary: Summary of the main KPIs,
key drivers, and Dynamic Charts and sensitivity analysis
Hotel pro forma annual cash flow
Hotel pro forma monthly cash flow
Operational Overview: Snapshot of
the leading Operating KPI
Equity waterfall 4 Tier waterfall