What’s the best resource for learning how to underwrite hotels and projecting the revenue and expenses for them? I understand the asset class, but struggle with the assumptions behind them. The model we use requires a deep dive for all line items.
FYI - currently underwriting a hotel development which is my first hotel UW
What specific assumptions are you struggling with?
Mostly some miscellaneous revenue like a spa and retail, then operating expenses. I know the expenses are based on either a fixed dollar amount, %, POR, or PAR of their revenue, but to really take a deep dive into things like housekeeping labor or A&G is where I get stuck. What sources do you use to predict things like staffing and wages?
Numquam culpa ipsum rerum itaque. Deserunt voluptates explicabo possimus ea ad consectetur omnis itaque. Unde consequatur sed modi et natus et. Quos doloribus non molestiae dolor. Cupiditate modi similique quibusdam quo totam commodi inventore. Perferendis natus corporis aut laboriosam id in quam. Magni maxime sequi tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...