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CASE STUDY
InteractiveHotel Feasibility & Investment Model
A 220-key hotel feasibility model from market demand to USALI NOI, development financing, IRR and an LP/GP waterfall.
Business challenge
A hotel developer needed to show investors and lenders whether a new upscale hotel was worth building and how returns would be shared.
Outcome
Investors see yield on cost, equity IRR and the promote split, and lenders see DSCR and LTV, under each case.
Overview
A 220-key hotel feasibility model from market demand to USALI NOI, development financing, IRR and an LP/GP waterfall. Inside: occupancy and RevPAR ramp vs comp set; USALI departmental P&L to NOI; development budget and draw curve; debt schedule, DSCR and LTV; LP/GP waterfall; sensitivity tables. How to use this model: on the Dashboard sheet, use the drop-down in cell D7 to pick the scenario: Base, Upside or Downside.
Approach
Market demand, occupancy and ADR build rooms and other revenue; staffing and costs give a USALI departmental P&L to NOI. Development budget, draws and the loan set funding; cash flow, exit value, covenants and an LP/GP waterfall complete the returns.
Capabilities
Skills
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