Hotel management company financial model, built free.
A three-statement Excel model for a hotel management and franchise company, built from your own figures and checked to balance.
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Asset-light brand owner earning base and incentive management fees and franchise royalties on hotels owned by others, often with a smaller owned or leased portfolio.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued two ways
Discounted cash flow and trading multiples, 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, as Excel draws it.
Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.
Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.
How the model works for a hotel management company.
- How it earns revenue3 formulasRooms revenue · All hotelsRooms revenueOccupied room nightsHotel average daily rate (ADR)Rooms revenue · All hotelsOccupied room nightsAvailable room nightsHotel occupancyFood, beverage and other revenue · All hotelsFood and beverage revenueF&B revenue from in-house guestsNon-resident F&B and events revenue
- What drives its costs3 formulasManagement and franchise fees · All hotelsManagement feesBase management feeIncentive management feeDepartmental and undistributed costs · All hotelsDepartmental expensesRooms department expensesFood and beverage department expensesOther departments expensesDepartmental and undistributed costs · All hotelsUndistributed operating expensesFixed undistributed expensesVariable undistributed expenses
- What it invests in3 formulasFF&E, refurbishment and depreciation · All hotelsFF&E and refurbishment capexFF&E reserveScheduled refurbishment and major capexFF&E, refurbishment and depreciation · All hotelsDepreciationDepreciation of building and existing fit-outDepreciation of additionsFF&E, refurbishment and depreciation · All hotelsClosing net book valueOpening net book valueFF&E and refurbishment capexDepreciation
- How it is funded3 formulasDebtRepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweepDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the year
- How profit becomes cash3 formulasWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in periodWorking capitalTrade payablesCash operating costs (positive)from statementsCreditor daysDays in period
26 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
- Exchange rate (US dollar)Exchange rate by financial year
- Operating expensesHeadcount build by function
- 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
- 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
- Key-metric summaryLast-twelve-month and run-rate metrics
- Covenant tests and headroomLVR, gearing and ICR for property
- SynergiesRun-rate synergies with phasing
- Discount rate (WACC)CAPM at target gearing
- 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 feesHotel management agreement (base + incentive fee)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
The numbers it tracks.
- 01system rooms
- 02net unit growth
- 03RevPAR
- 04fee revenue
- 05fee margin
- 06EBITDA
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See a finished model, sheet by sheetThe 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.