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Property investment and REITs

Hotel and resort REIT financial model, built free.

A three-statement Excel model for a hotel and resort REIT, built from your own figures and checked to balance.

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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 hotels and resorts either leased to operators for fixed and turnover rent, or run by brand operators under management agreements so that the owner earns the hotel's trading profit after base and incentive management fees and an FF&E reserve.

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 two ways

    Discounted cash flow 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 and resort REIT sample model.xlsx
The Summary sheet of the sample hotel and resort REIT 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 and resort REIT.

  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
    Management feesBase management feeIncentive management fee
    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
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
    Equity raising
    Equity raisedEquity raised (net of costs)Equity from an offer, milestone funding, conversions and creditor shares
  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

34 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 forecastCPI glide path
  • Corporate costsManagement expense ratio
  • Working capitalDays-based working capital
  • Income taxFlow-through entity (no entity tax)
  • DebtSingle debt facility
  • Equity raisingScheduled equity raisings
  • Dividends and distributionsPayout of FFO
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • 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 growth
  • Key-metric summaryStandard growth, margin and leverage metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Discount rate (WACC)CAPM at target gearing
  • Tenant receivables, bad debts and depositsArrears days and bad debt %Rent arrears and bad debts, rent received in advance, and security deposits or bonds held for tenants — the property-specific working-capital balances.
  • REIT metrics (FFO, AFFO, NTA, gearing)Operator rent coverThe earnings, balance-sheet and portfolio metrics investors use for property owners — FFO and AFFO, NTA per unit, gearing and covenant headroom, WALE and occupancy, like-for-like growth and rent cover.
  • Acquisitions, disposals and capital recyclingNamed acquisitions and disposalsProperties bought and sold during the forecast — named transactions, generic acquisitions at an assumed yield, and disposals that recycle capital — with transaction costs and gains or losses on sale.
  • Trust and REIT tax statusAustralian attribution MIT with tax-deferred distributionsThe tax rules that come with trust or REIT status — distribution requirements, taxable subsidiaries, tax-deferred distributions and withholding on property income paid to investors.
  • Interest-rate forecastFlat base rate
  • Hotel registerRoom inventory changes by year
  • SeasonalityMonthly seasonal profile
  • Rooms revenueCompetitive set penetration (MPI × ARI)
  • Food, beverage and other revenueSpend per occupied room plus non-resident F&B
  • Departmental and undistributed costsDepartmental cost ratios plus fixed undistributed costs
  • Management and franchise feesHotel management agreement (base + incentive fee)
  • Hotel operating profitUSALI summary (GOP and hotel EBITDA)
  • FF&E, refurbishment and depreciationFF&E reserve plus scheduled refurbishment
  • Like-for-like comparabilityLike-for-like comparability from trading status
  • Property registerUnit-based register (apartments, beds, rooms, storage units)The facts every other part of the model builds on — size, units, ownership share and opening value.
  • Rental incomeBase rent plus turnover rentBase rent earned from tenants and the occupancy that drives it.
  • Property operating costsStatutory land tax and rates on site valueOutgoings and other costs of running the property (rates, land tax, insurance, cleaning, security, repairs, management).
  • Net property incomeFull income waterfallProperty-level income less property operating costs.
  • Capital expenditureMaintenance capex as % of valueMaintenance, refurbishment and development spend added to the property's value.
  • ValuationCap rate calibrated to the latest valuationOpening and closing property value and the fair value movement between them.
Key numbers

The numbers it tracks.

  1. 01RevPAR
  2. 02hotel EBITDA
  3. 03EBITDA per key
  4. 04value per key
  5. 05lease rent cover
  6. 06FFO per unit
  7. 07gearing
Used for

What it is used for.

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

More in property investment and REITs.

Every real estate model

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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.