Quick coherent HOTEL / GUESTHOUSE Valuation and Financial Model - 20 years

Description
This quick and coherent Valuation and Financial model (20 years) will provide you with the most pertinent valuation information and three-statement analysis. As with all real estate models, NPV, IRR, and MIRR are very important metrics. The model quickly assesses all cash flows, income statements, and balance sheets with annual re-valuations which include your estimated capital gains tax liabilities for valuations in the event of you exiting the investment. We make use of the PE Ratio for hotel valuations as opposed to the Cap Rate method used on all other real estate valuations. This is because the hotel is more like a business than most other types of real estate investment. The model allows for any type of gearing circumstance, and we retain all earnings after tax so that it is easy to comprehend the amount of cash in the business and the amounts available for distribution. Naturally, the point of this financial model is to quickly arrive at the IRR and MIRR to ascertain the buying or selling price is viable. The hotel-type investment relies heavily on value add services such as laundry services, storage, food, beverages, etc, hence we have an easy and fast model to adjust should you require more columns and fields currently built into the model. The model will provide you with the most essential valuation and cash flow positions in order to alter your gearing amounts and terms very easily. Irrespective of the PE Ratio guidelines which are well published, the models IRR and MIRR should exceed the funder's rate by some margin to cater to downturns and minimize risks. CGT consideration is very important when one considers exit values and the consequent returns achieved in NPV, IRR, and MIRR.