Skip to content
The Financial Modeller
Build free
Accommodation

Hotel financial model, built free.

A three-statement Excel model for a hotel owner-operator (owned, leased or managed by a brand), built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Owns or leases hotels and earns rooms, food and beverage and other revenue, paying a brand operator management or franchise fees where the hotel is not self-operated.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued three ways

    Discounted cash flow, trading multiples and net asset value, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Hotel sample model.xlsx
The Summary sheet of the sample hotel model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a hotel.

  1. How it earns revenue3 formulas
    Rooms revenue · All hotels
    Rooms revenueOccupied room nightsHotel average daily rate (ADR)
    Rooms revenue · All hotels
    Occupied room nightsAvailable room nightsHotel occupancy
    Food, beverage and other revenue · All hotels
    Food and beverage revenueF&B revenue from in-house guestsNon-resident F&B and events revenue
  2. What drives its costs3 formulas
    Management and franchise fees · All hotels
    Lease rentBase rentVariable rent
    Departmental and undistributed costs · All hotels
    Departmental expensesRooms department expensesFood and beverage department expensesOther departments expenses
    Departmental and undistributed costs · All hotels
    Undistributed operating expensesFixed undistributed expensesVariable undistributed expenses
  3. What it invests in3 formulas
    FF&E, refurbishment and depreciation · All hotels
    FF&E and refurbishment capexFF&E reserveScheduled refurbishment and major capex
    FF&E, refurbishment and depreciation · All hotels
    DepreciationDepreciation of building and existing fit-outDepreciation of additions
    FF&E, refurbishment and depreciation · All hotels
    Closing net book valueOpening net book valueFF&E and refurbishment capexDepreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

33 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Net asset valueBook net asset value
  • Interest-rate hedgingHedged share at a fixed rate
  • Portfolio KPIs (per key, like-for-like)Like-for-like RevPAR growthPortfolio ratios computed from summed room nights and revenue (never by adding hotel ratios).
  • LeasesLease register
  • Purchase price and acquisition costsAgreed price plus costs
  • Hold-period cash flowsAsset-level NOI less capex
  • Exit value and exit costsTerminal capitalisation rate
  • Investment returnsIRR, equity multiple and cash-on-cash
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Budget phasingSeasonal profile of twelve monthly weights
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Feasibility metricsCash-flow returns
  • Case selectionStackable stress toggles
  • Discount rate (WACC)CAPM at target gearing
  • Completed valueCapitalised income
  • Hotel registerRoom inventory changes by yearRooms (keys), opening book value and remaining life for each hotel.
  • SeasonalityMonthly seasonal profileIndices that shape occupancy and ADR through the year in monthly or quarterly models.
  • Rooms revenueCompetitive set penetration (MPI × ARI)Room nights available and sold, and rooms revenue at the average daily rate.
  • Food, beverage and other revenueSpend per occupied room plus non-resident F&BRestaurants, bars, banqueting, conferences, spa, parking and other operated departments.
  • Departmental and undistributed costsDepartmental cost ratios plus fixed undistributed costsDepartmental expenses (rooms, food and beverage, other), undistributed operating expenses (administration, sales and marketing, maintenance, utilities) and fixed charges (property taxes, insurance).
  • Management and franchise feesLease rent (lessee operator)What the hotel owner pays a brand or operator — management fees, franchise fees or variable lease rent.
  • Hotel operating profitUSALI summary (GOP and hotel EBITDA)Total revenue, gross operating profit and hotel EBITDA in USALI summary form.
  • FF&E, refurbishment and depreciationFF&E reserve plus scheduled refurbishmentCapex on furniture, fixtures and equipment and refurbishments, and the hotel's net book value and depreciation.
  • Like-for-like comparabilityLike-for-like comparability from trading status
Key numbers

The numbers it tracks.

  1. 01occupancy
  2. 02ADR
  3. 03RevPAR
  4. 04GOP margin
  5. 05EBITDA per key
  6. 06value per key
Used for

What it is used for.

Also used for
  • Asset acquisition
  • Scenarios and sensitivities
Related models

More in accommodation.

Every hospitality and leisure model

Looking for a hotel financial model template? Ours arrives built for your business, with your figures in it.

Running a small business? Read what goes into a small business financial model.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.