A.CRE Hotel Valuation Model in Excel (Updated Sept 2022)
I am excited to introduce our new Hotel Valuation (Acquisition) Model to underwrite both stabilized and value-add hotel opportunities. This hotel pro forma is designed to allow users to do everything from a quick back of the envelope exercise to a fulsome and detailed underwriting exercise in which the user can get into the weeds of projecting a hotel asset’s cash flows. There is a lot to learn about this model, so I’ve created a tutorials page, which you can access here.
Hotel Valuation Model Overview
The model is built out with the following tabs:
Here is where the links to various sources of information and version notes as the model is updated can be found.
The summary tab holds all the critical information about returns and assumptions ready for a third party to review. Many of the key inputs will be adjusted from this page as we will show you in the tutorials page. This page summarizes the general info and timing; acquisition, financing, and exit assumptions; risk and return metrics; year 1 cash flows; partnership level return summary; penetration analysis; and a sensitivity analysis.
CFSummary (Cash Flow Summary)
This tab removes the detailed line items from the Operating Cash Flow tab to show a clean and easy to digest, rolled up annual cash flow.
OpCashFlow (Operating Cash Flow)
This tab allows the user to see the detailed line items over the hold period. This tab is particularly information rich with not only the detailed cash flow line items, but also many important pieces of information in the header such as the annual RevPAR, ADR, and their respective growth over the hold period.
In this tab you have the ability to underwrite five different F&B options with great flexibility.
OthOppDepts (Other Operating Departments)
If there are other departments within the hotel outside of the rooms and F&B, it is within this tab that you can input up to five additional department assumption
OthExpenses (Other Expenses)
Rooms, undistributed expenses, franchise fees, management fees, fixed expenses, and CapEx and FF&E reserve assumptions are all input here.
Penetration (Penetration Analysis)
Competitive Set data is input here to analyze the project against the competition with regards to occupancy, ADR, and RevPAR.
Waterfall – IRR Hurdles
This tab contains a 4-tier waterfall model with IRR hurdles to split proceeds between an LP and GP.
This version of the model is only compatible with Excel 2013, Excel 2016, and Excel 365
Download the A.CRE Hotel Valuation Model in Excel
To make this model accessible to everyone, it is offered on a “Pay What You’re Able” basis with no minimum (enter $0 if you’d like) or maximum (your support helps keep the content coming – typical real estate hotel models sell for $300+ per license). Just enter a price together with an email address to send the download link to, and then click ‘Continue’. If you have any questions about our “Pay What You’re Able” program or why we offer our models on this basis, please reach out to either Mike or Spencer.
We regularly update the model. Paid contributors to the model receive a new download link via email each time the model is updated.
- Unlinked exit cap reference to data table to correct summary results. All scenario options are now hard coded.
- Minor formatting update.
- Added link to a video to explain how to fix the data table issue for those that experience it in the F&B tab.
- Added Sensitivity Analysis to Summary Page
- Added Transfer PIP Cost to Acquisition Assumptions
- Put Franchise Fee Under Undistributed Expenses
- Removed Major Capital Expenditures Line Item
- Fixed formatting and minor errors
- Product launch
- Added 4-tier Waterfall Model with IRR Hurdles
- Fixed bugs in rows 20, 21, 26, and 27 of the CFSummary tab