All-Inclusive Resort Financial Model - Dynamic 10 Year Forecast

Description
Moving away from the old, traditional way of operating, All-Inclusive Resorts now offer a staggering array of ancillaries and luxury services to guests who are more willing to splurge on activities and experiences beyond their initial vacation package purchase. While traditional packages might include hotel, airfare, transportation, food, and beverage as fully covered, many All-Inclusive Resorts are now adding upsell options such as entertainment, kids-zones, local excursions, and upscale restaurants. As a result, overall Total Guest Values are on the rise, and they're bringing all-inclusive resort profits right along with them.
The all-inclusive model allows hotels to drive superior ADRs at hotels by offering a value-add to customers. Along with strong occupancy rates to minimize the cost per guest, hoteliers focus on driving various operating costs down. Thus, operational efficiency is essential to increasing the net operating income while these hotels operate at or near full capacity.
This Financial Model presents an operating scenario of an All-Inclusive Resort and enable users to get into details of every step of a hotel project from operating and profitability analysis, projection of cash flows to a potential future sale.
The model includes assumptions and calculations of two main Revenue Sources (Accommodation and Ancillary Services), Cost of Sales, Payroll and Operating Expenses, Capital Expenditures, financing through Debt & Equity and business valuation multiples.
Outputs of the template include forecasted Financial Statements (3 Statement Model), Profitability Analysis, Breakeven Analysis, Business Valuation including Sensitivity Analysis and Return Metrics (IRR, MOIC, NPV, etc.) and Investors Returns Waterfall.
A variety of KPIs and Financial Ratios (Occupied Rooms and Nights, ADR, RevPAR, Profit Margins, ROE, ROA, etc.) analyzes business performance and the company’s results are presented and summarized on a professional Executive Dashboard.
The model is dynamic and allows users to select the desired forecasted Years (1 to 10).
The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.


Model Structure


Inputs:
• Revenue & Cost of Sales Assumptions including Operating Days, Occupancy Rate, Room types & Prices, Ancillary Services and Direct Costs (Commissions to TAs, Room Expense, Discounts & Promotions, etc.)
• Payroll, OpEx & CapEx Assumptions
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples


Outputs:
• Dynamic 10 Year Financial Forecast (3 Statement Model)
• Profitability Analysis per room type and operating year
• Breakeven Analysis per operating year
• Summary of various KPIs and Financial Ratios (ADR, Revpar, TRevPar, Occupied Rooms, Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
• Business Performance Dashboard
• Business Valuation (incl. Enterprise & Equity Value, DCF, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Professional Executive Summary (can be used for investment decisions)


Detailed instructions on the use of the model are included in the Excel files.



Help & Support


Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.