For hotel owners chevron_right Underwriting model
Free hotel underwriting model for ExcelThe hotel underwriting model, free.
A hotel underwriting model in Excel, built by hotel broker Reed Gizinski to underwrite hotel acquisitions: messy P&Ls cleaned up to USALI, STR comps charted, the PIP and its financing scheduled month by month, a ten-year pro forma, and a three-tier IRR waterfall with sensitivity tables that run the whole waterfall for every scenario.
- table_view23 tabs · inputs in blue, everything else worked out
- printSix one-page printouts for lenders and investors
- infoNeeds Excel 365 or Excel 2021 or later
Your download has started.
Look for Hotel Underwriting Model - Waterfall.xlsx in your downloads. Start on the INSTRUCTIONS tab, then INPUTS.
Want a second opinion on a deal? Request a valuation.
Inside the model
The hotel underwriting model in Excel, tab by tab.
A sample deal run through the model — a fictional 92-key hotel bought for $7.4 million. Pick a tab to see it as Excel shows it. Every figure is worked out by the model from its inputs.
How the hotel underwriting model works, in five steps
Historical financials
Paste the P&Ls into DIRTY P&L as they came. ALLOCATION maps every line to a USALI category with preset codes — or your own — and CLEAN P&L prints the result.
Market data
Two tables on STR INPUT, one for the hotel and one for its comp set. STR PERFORMANCE, the comp table and the charts follow.
Pro forma assumptions
The PIP's scope and cost — or a per-key estimate — with a monthly draw schedule, key money and PIP debt; then INPUTS for price, debt, fees, timeline and exit.
The model
A ten-year pro forma with NOI, debt service and cash flow; senior and refinance debt schedules; and a three-tier IRR waterfall — 10% preferred return, a 12% hurdle, then the promote.
Outputs
DCF, cap rate valuation and IRRs, sensitivity tables where every cell runs the full waterfall, and one-page summaries for the investment, the LPs and the sponsorship.
The model is provided as a general analytical tool, as is — the DISCLAIMER tab says so in full. Check the formulas, inputs and results before relying on them. The sample deal shown is fictional.
Questions
Questions about the hotel underwriting model
What is a hotel underwriting model?
An Excel workbook that turns a hotel's historical P&Ls and its market's data into a forecast and a price: it cleans up the financials, projects revenue and expenses, schedules the debt and the capital plan, and works out the returns an owner or investor can expect.
What does this hotel Excel underwriting model include?
23 tabs: the seller's P&L mapped to USALI categories, STR performance against the comp set with charts, the PIP and its financing month by month, a ten-year pro forma, senior and refinance debt schedules, a three-tier IRR waterfall, DCF and cap rate valuations, sensitivity tables that run the whole waterfall, and six one-page printouts for lenders and investors.
Is the hotel underwriting model free?
Yes. The blank workbook is free for your name and email, and the download starts right away.
Which version of Excel does it need?
Excel 365, or Excel 2021 or later.
Can it underwrite a hotel with a PIP?
Yes. Enter the PIP's scope and cost, or an estimate per key, and the model schedules the draws month by month with key money and PIP financing, and carries them through the pro forma and the returns.
Can someone check my underwriting?
Yes. Request a valuation and Reed Gizinski and the Ruzicka Hotel Team at Marcus & Millichap will look at the hotel and its market.