Business financial model file
Independent Hotel Financial Model
Separate hotel refurbishment and opening funding from room-night contribution, staffing and the nights actually available to sell.
Opening investment and working cash
The original 30-room case leases an existing property and refurbishes it; it does not buy a hotel or land. Opening cash must cover fit-out, pre-opening staff, deposit and stock before occupancy receipts arrive. Actual property scope and installed quotes can differ substantially.
| Cash use | $ |
|---|---|
| CAPEX: Thirty-room selected refurbishment | 180,000 |
| CAPEX: Bathrooms/mechanical improvements | 100,000 |
| CAPEX: Public areas and furniture | 50,000 |
| CAPEX: Systems and opening room fixtures | 20,000 |
| Pre-opening: Lease/professional setup | 15,000 |
| Pre-opening: Pre-opening payroll/training | 20,000 |
| Pre-opening: Launch sales campaign | 8,000 |
| Refundable deposit / tied-up cash | 28,000 |
| Opening stock / initial working inputs | 10,000 |
| Reserve: 2 selected fixed-cost months | 110,600 |
| Selected opening cash total | 541,600 |
CAPEX totals $350,000, pre-opening expense $43,000 and working cash $148,600. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
The case budgets a loaded front desk roster, maintenance/housekeeping coordination and manager as fixed roles.$20 per occupied night is outsourced room-turn work, not those same coordinator hours. The distribution allowance is 10% of the$135 rate, with a separate 3% payment assumption.
| Commitment | $ per month |
|---|---|
| Front desk roster: loaded budget | 18,000 |
| Maintenance/housekeeping coordination | 6,000 |
| Manager: loaded budget | 6,000 |
| Property lease | 14,000 |
| Base utilities | 3,500 |
| Insurance | 2,500 |
| Property software | 700 |
| Marketing | 1,200 |
| Base maintenance | 1,800 |
| Shared cleaning/waste | 900 |
| Admin | 700 |
| Total selected fixed cash | 55,300 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 135 |
| Outsourced room-turn housekeeping | 20 |
| Linen/amenities | 8 |
| Distribution commission allocation | 13.5 |
| Percentage-only fee allocation (3%) | 4.05 |
| Contribution before scheduled payroll/fixed OPEX | 89.45 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
Thirty rooms over 30 days supply 900 nominal nights, reduced by 10% unavailability to 810. Planned sold nights are 630. Maintenance blocks and actual housekeeping coverage must match the daily room calendar; annual average occupancy cannot resolve a sold-out date.
For this fixed mix and commitment, whole-unit cash break-even is 619 occupied room-nights per month: ($55,300) ÷ $89.45, rounded up. The aggregate capacity is 810 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 500 | 67,500 | -10,575 |
| 619 | 83,565 | 69.55 |
| 630 (planned) | 85,050 | 1,053.50 |
| 810 | 109,350 | 17,154.50 |
At 500 occupied nights, the lease and front desk commitments continue. Price discounts also reduce contribution on sold nights; the retained guide's demand/channel decision has a separate scope.
Practical KPI definitions
Occupancy is occupied room-nights/actually available room-nights; ADR is net room revenue/occupied nights; room revenue per available night combines both. Track net revenue after channel fees and turn costs, and distinguish room-night economics from a cash balance or property value.
No real-estate purchase, financing, income tax, future refurbishment or food/beverage profit is included. Bookings/deposits, occupancy taxes and channel settlements need a separate cash calendar.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
What the model covers
The official FinModelsLab listing describes an editable five-year Excel model. Rooms and calendar nights establish availability; occupancy produces sold room-nights, which are multiplied by blended room-type ADR. Monthly ancillary income is added separately. Stated outputs include profit and loss, cash forecasts, dashboard charts and break-even/investment indicators.
Use a tested rate-volume assumption
Our original month earns $2,800 at 360 nights and a $110 net rate. At $120, 320 nights produce the same result; 300 nights leave only $1,000. A rate increase cannot be evaluated by holding demand unchanged without evidence.
Reconcile maintenance closures and sold-night denominators before adapting inventory and occupancy. Test rate, room mix and channel cost together against actual booking evidence. The Independent Hotel planning guide develops the original worked case.
Planning guide