Hotel/Lodge/Resort/Hospitality Financial Model
Originally published: 25/11/2024 08:47
Publication number: ELQ-32383-1
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Hotel/Lodge/Resort/Hospitality Financial Model

The model is useful for investors looking to venture into the hotel/hospitality business. It includes real estate component of land acquisition and construction

Description
The model is useful for investors looking to venture into the hotel/hospitality business. It includes real estate component of land acquisition and construction of the hotel/resort/lodge. 
The size of land to be acquired is shown in the assumptions plus the land value per acre.
The construction costs and non construction costs of the project are also shown and the time to implement the project. This will vary depending on the room sizes you are looking at and bed capacity.
The business will earn money from various income streams: namely, accommodation, food and beverages, events and conferencing, leisure activities and other additional services such as laundry, airport transfers etc. These are shown in separate tabs. In these tabs, you can manipulate the number guests, seasonality factor, average spend per customer etc.
The cost of sales for the above revenue streams has been expressed as a percentage of the income and can also be flexed.
In the assumptions, the administrative costs have also been shown and can be adjusted accordingly depending on your cost levels in your location.
In the financing section, one can decide the debt to equity mix by adjusting the percentages. 
Financial ratios have also been computed as well as a few performance metrics such as IRR, NPV, payback period to assess the bankability of the project.
The financials tab has both the monthly format (collapsed) and annualized format on same tab. 

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