Boutique Hotel Financial Model

This Excel model is a highly adaptable and user-friendly tool for creating a 10-year rolling 3-statement financial projection (Income Statement, Balance Sheet, and Cash Flow Statement) with a monthly timeline. It is designed specifically for startup or existing boutique hotel businesses, focusing on revenue generation through room bookings and potentially other related services such as dining and spa services.

The model allows users to input various revenue streams, variable costs associated with hotel operations, operational costs, fixed assets, and financing activities. Following best practices in financial modeling includes clear instructions, detailed line item explanations, checks, and input validations. Additionally, the model features a discounted cash flow (DCF) valuation calculation based on projected cash flows.

Key Outputs

The model's outputs include:

• Detailed monthly financial statements spanning ten years, with annual summaries.
• The valuation sheet is based on discounted cash flow projections.
• Over 30 financial and business ratios for in-depth performance analysis.
• Charts illustrating financial projections and key performance metrics.
• Breakeven analysis to determine the sales volume required to cover costs.
• Dashboard summarizing projected financial statements, key ratios, and financial performance metrics.
• Evolution of cash balance over time.

Model Structure

The model is structured into several sections:

• Assumptions: These are the foundations of the financial model, encompassing critical assumptions about room occupancy rates, pricing, operational expenses (Opex), capital expenditures (CapEx), and startup costs tailored to boutique hotel operations.
• Operations: Calculations for revenue from room bookings, cost of goods sold (COGS), and operational expenses derived from data in the Assumptions sheet.
• Working Capital: Calculates the necessary working capital for day-to-day operations, essential for short-term financial health.
• Debt Model: Structuring debt financing aligned with the business's financial assumptions and requirements.
• Capital Expenditures (CapEx): Expenses related to acquiring and maintaining hotel equipment, facilities, and infrastructure.
• Monthly Financial Statements (Mo-FS): This includes a detailed monthly Income Statement, Balance Sheet, and Cash Flow Statement, integrating operational details and CapEx projections. It also includes provisions for dividend distribution, if applicable.
• Actual Performance: Record actual financial performance as actual data becomes available for comparison with forecasted metrics.
• Annual Financial Statements: Summarizes monthly financial statements to provide a yearly overview.
• Summary: Executive summary of main business metrics for quick assessment.
• Breakeven Analysis: Determining the sales volume needed to achieve profitability is critical for assessing financial viability.
• Ratios: Lists over 20 financial ratios to comprehensively analyze business performance.
• Valuation: Utilizes discounted cash flow (DCF) method to estimate the business's valuation.
• Budget vs. Actual: Compares budgeted figures with actual performance, aiding financial performance evaluation and year-on-year progress tracking.
• Charts: Provides visual representations of financial data to highlight variances and facilitate decision-making.

This structured approach ensures the model comprehensively addresses boutique hotels' financial planning and analysis needs, supporting strategic decision-making and financial management.