Question 1

What's included in this hotel pro forma template?

Accepted Answer

The template includes 6 worksheets: an Assumptions sheet where you control all inputs (room count, ADR, occupancy ramp, hold period, debt terms), a Revenue Projections sheet covering rooms, F&B, events, and ancillary income, an Operating Expenses sheet structured to the USALI standard with departmental and undistributed line items, a 10-year NOI Summary with GOP and NOI margins, an Investor Returns sheet showing levered and unlevered IRR, equity multiple, and cash-on-cash returns, and a Sensitivity Analysis sheet with two-variable tables for ADR, occupancy, and exit cap rate scenarios. All formulas are pre-built.

Question 2

Does this work in Google Sheets?

Accepted Answer

Yes. The template is built in Excel (.xlsx) but is fully compatible with Google Sheets. Upload the file to Google Drive, open it with Google Sheets, and all formulas, formatting, and charts will work without modification. You can share it directly from Google Drive with equity partners, lenders, or your acquisition team.

Question 3

Can I customize the revenue and expense categories?

Accepted Answer

Yes — every cell is unlocked. You can add revenue lines for property-specific services (laundry, in-room dining, minibar), adjust the USALI expense categories to match your actual chart of accounts, or remove departments that don't apply (a select-service property won't need a full F&B expense block). The formulas reference column totals so adding or removing rows won't break the model.

Question 4

Is there a money-back guarantee?

Accepted Answer

Yes, we offer a 30-day money-back guarantee. If the template doesn't meet your needs, contact us for a full refund — no questions asked.

Question 5

What's a typical NOI margin for a hotel?

Accepted Answer

Hotel NOI margins vary significantly by property type and market. Full-service hotels typically run 20–35% NOI margins after management fees and fixed charges, while select-service and limited-service hotels can reach 30–45% because they carry lower F&B and staffing costs. Extended-stay hotels often top 40% NOI margins due to lower turnover costs and lean operating models. These ranges assume stabilized occupancy (70–75% for most markets). The NOI Summary sheet in this template shows your margin by year alongside the revenue and expense totals so you can benchmark your projections against these industry norms.

Question 6

What ADR and occupancy should I use in my hotel pro forma?

Accepted Answer

Start with your competitive set data — look at the ADR and occupancy of comparable properties in your market using STR (CoStar) data or franchise disclosure documents if you're acquiring a branded property. For acquisitions, use the prior 12 months of actual performance as your base year, then apply a modest growth assumption (2–4% ADR growth annually is typical in a stable market). For new developments, use the midpoint of your comp set's ADR at stabilized occupancy, with an 18–24 month ramp to reach it. Avoid projecting ADR or occupancy meaningfully above your comp set unless you have a specific operational thesis (brand conversion, repositioning, or adding a major demand driver like an event venue) that justifies the premium.

Question 7

How is a hotel pro forma different from a hotel budget?

Accepted Answer

A hotel budget covers a single operating year — it's an internal management tool for planning labor, marketing spend, and departmental targets against known current performance. A hotel pro forma covers a multi-year investment horizon, typically 5–10 years, and is built to evaluate a transaction or development opportunity. The pro forma focuses on what the property will be worth at exit, how investor returns build up over the hold period, and whether the deal meets a target IRR or cash-on-cash threshold. It's the document that goes to equity partners, banks, and acquisition committees — not the one your hotel GM reviews every month.

Question 8

What's a typical cap rate for hotel investments?

Accepted Answer

Hotel cap rates are generally higher than office or multifamily because hotels carry more operational risk as a business rather than a passive lease. As of recent transaction data, full-service urban hotels typically trade at 6–9% cap rates, while select-service suburban properties trade at 7–10%. Extended-stay and economy hotels can trade at 8–12%. Cap rates compress in high-barrier gateway markets and expand in secondary and tertiary markets. For your pro forma, a common approach is to use a slightly higher exit cap rate than your entry cap rate (or stabilized going-in cap rate) to build in conservatism — typically 25–50 basis points higher than your acquisition assumption.

Question 9

Does the template handle debt financing?

Accepted Answer

Yes. The Investor Returns sheet includes inputs for loan amount (or loan-to-value ratio), interest rate, amortization period, and interest-only period if applicable. The model calculates annual debt service, separates it from operating cash flow, and shows distributable cash to equity investors each year. It also calculates the net sale proceeds after repaying the remaining loan balance at exit, and combines operating distributions with exit proceeds to produce the total levered return metrics (IRR, equity multiple, and cash-on-cash by year).

Hotel Pro Forma Template

What's Inside This Hotel Pro Forma Template

Assumptions

Revenue Projections

Operating Expenses

NOI Summary

Investor Returns

Sensitivity Analysis

Hotel Pro Forma Template Features

How to Use This Hotel Pro Forma Spreadsheet

Why Every Hotel Deal Needs a Pro Forma

Hotel Industry at a Glance

Revenue Drivers

Key Cost Categories

Typical Margins

Seasonality

Key Performance Indicators

Hotel Pro Forma Template FAQ

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