Hotel Pro Forma Development
Roger Staiger, FRICS Stage Capital, LLC
(202) 640-8912 [email protected]
Disclaimer All slides in this presentation are the intellectual property of Stage Capital, LLC and Roger Staiger, FRICS. Use of these slides is only permitted when presented by Roger Staiger, FRICS or a designee of Stage Capital, LLC. Further distribution is strictly prohibited.
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Structure 4-Part Sessions: 2-hours each Summary Page (1st half) [Complete] Development/Draw Page [Complete] Pro Forma [Complete] Pulling it all together Amortization Valuation Bottom half of Summary Page
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Hotel Pro Forma Model 125 Key Hotel 75,000 SF; 10,000 Banquet SF
Full Service Development/Construction/Stabilize Focused on BASIC Modeling skills Result: completed scalable and
modular Hotel pro forma model Roger Staiger III [email protected]
Model Summary 125 Keys with Banquet space (Pretax
analysis) Occupancy Rate Average Daily Rate/Escalation Capital Sourcing Develop Costs (HC = $57.0m) Valuation
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Structure/Logic Flow
Roger Staiger III [email protected]
Summary Page
Pro Forma Page (s3)
Amortization Page (s4)
Inputs Section (s1)
Analysis (s4)
Development Page (s2)
Circular Reference
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Inputs Page (1 of 2)
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$ $/Key Revenue Year 1 2 3 Escalation MetricSources 70,687,627 565,501 Rooms
Equity 17,671,907 141,375 Occupancy 68% 72% 75%Investor 1 17,671,907 141,375 Average Daily Rate 280.00 290.00 300.00 3% PORInvestor 2
Debt 53,015,720 424,126 Food & BeverageTranche 1 53,015,720 424,126 Restaurant 50.00 65.00 70.00 3% PORTranche 2 Lounge 20.00 25.00 30.00 3% POR
Banquet 525.00 575.00 650.00 3% PBSFUses 70,687,627 565,501 Other Food & Beverage
Land & Related 6,500,000 52,000 General & Administrative 1,750,000 14,000 Other DepartmentsDev Chrgs & Mun Costs 1,080,000 8,640 Telephone/Internet 1.00 1.00 1.00 1% PORHard Cost Construction 56,475,000 451,800 Garage 5.00 7.00 8.00 3% PORBuidling Operations 2,175,000 17,400 Gift Shop 1.00 2.00 2.00 3% PORFinancing Expense 2,707,627 21,661 Spa 1,000,000 1,200,000 1,500,000 5% Total $
Other Rents & Commissions 8.00 9.00 10.00 3% PORSurplus/(Deficit) 0 Other
PV Reversion 72,226,968 85.33% CharacteristicsPV Operating 12,418,101 14.67% Number of Rooms 125Total 84,645,069 Total Area (sf) 75,000 CF0 (18,649,002) Banquet Area (sf) 10,000 New Present Value 65,996,066 IRR 25.05% DSCR Cash‐on‐Cash
Average 1.67 Average ‐98.81%Minimum 0.78 Minimum ‐193.00%
Input Page (2 of 2)
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Expense Year 1 2 3 Escalation Metric Finance I/PDepartment ConstructionRooms 32.0% 31.0% 30.0% % Rev LtV Const_LtV 75%Restaurant 85.0% 80.0% 80.0% % Rev PrincipalLounge 65.0% 60.0% 60.0% % Rev Term (Years)Banquet 80.0% 72.0% 70.0% % Rev Interest Rate 6.00%Other F&B % Rev Interest Only YTelephone/Internet 100.0% 100.0% 100.0% % Rev Origination Fee 1.00%Garage 50.0% 50.0% 50.0% % RevGift Shop 90.0% 90.0% 90.0% % Rev PermanentSpa 85.0% 80.0% 75.0% % Rev LtV Perm_LtV 75%Other Rents & Commissions 5.0% 5.0% 5.0% % Rev Principal Perm_Princ 53,015,720 Other % Rev Month Take‐Out
Term (Years) 30Unallocated Departments Interest Rate 5%General & Administrative 30.00 31.00 32.00 3% PAR Interest Only YRepairs & Maintenance 22.40 22.40 22.40 3% PAR Origination Fee 0.50%Sales & Marketing 22.40 22.40 22.40 3% PARUtilities 0.50 0.50 0.50 3% PSF Valuation I/POther Capitalization Rate 8%
Sales Expense 10%Other Deductions Discount Rate 6%Management Fee 3.0% 3.0% 3.0% % Ttl RevFF&E Rep and Capital Reserves 3.0% 4.0% 5.0% % Ttl Rev Sales Period 10Property Taxes 600,000 625,000 650,000 3% Total $Insurance 100,000 100,000 100,000 4% Total $Permits & Licenses 20,000 20,000 20,000 2% Total $Equipment Rental 40,000 40,000 40,000 3% Total $Other
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Development Page (1 of 3)
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Development Start 1‐Jan‐14Construction Months 24Opening Date 1‐Jan‐16
1 2 3 4 5 6 7 8 9 10 11 12Cost Item Jan‐14 Feb‐14 Mar‐14 Apr‐14 May‐14 Jun‐14 Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14
Land & Related Land_Rela 6,500,000 Land & Related 6,500,000 100.00%
General & Administrative G_A 1,750,000 Legal Fees 200,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Development Management Fees 600,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Insurance & Warranty 650,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Other G&A 300,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%
Dev Chrgs & Mun Costs Dev_Chrg_ 1,080,000 Development Charges 850,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Building Permits 200,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Municipal Costs 30,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%
Hard Cost Construction HC_Const 56,475,000 General Costs 3,500,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Site Work 1,100,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Concrete Work 7,200,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Masonry 400,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Metals 950,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Carpentry & Millwork 5,100,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Moisture Protection 440,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Windows & Doors 7,100,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Finishing 8,300,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Specialities 1,250,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Equipment 2,100,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Furnishings 7,500,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Special Construction 135,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Conveying System 1,300,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Mechanical 4,100,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Electrical 2,250,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Contingency 3,750,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%
Buidling Operations Building_O 2,175,000 Pre‐Opening Expenses 1,850,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%Working Capital Contribution 325,000 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17% 4.17%
Financing Expense Fnan_Exp 2,707,627 Construction Loan Interest 2,442,548 Financing Fee 265,079 100.00%
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Development Page (2 of 3)
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Cost Item
Land & Related 6,500,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Land & Related 6,500,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
General & Administrative 72,917 72,917 72,917 72,917 72,917 72,917 72,917 72,917 72,917 72,917 72,917 72,917 Legal Fees 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 Development Management Fees 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Insurance & Warranty 27,083 27,083 27,083 27,083 27,083 27,083 27,083 27,083 27,083 27,083 27,083 27,083 Other G&A 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500
Dev Chrgs & Mun Costs 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Development Charges 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 Building Permits 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 Municipal Costs 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250
Hard Cost Construction 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 2,353,125 General Costs 145,833 145,833 145,833 145,833 145,833 145,833 145,833 145,833 145,833 145,833 145,833 145,833 Site Work 45,833 45,833 45,833 45,833 45,833 45,833 45,833 45,833 45,833 45,833 45,833 45,833 Concrete Work 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Masonry 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 Metals 39,583 39,583 39,583 39,583 39,583 39,583 39,583 39,583 39,583 39,583 39,583 39,583 Carpentry & Millwork 212,500 212,500 212,500 212,500 212,500 212,500 212,500 212,500 212,500 212,500 212,500 212,500 Moisture Protection 18,333 18,333 18,333 18,333 18,333 18,333 18,333 18,333 18,333 18,333 18,333 18,333 Windows & Doors 295,833 295,833 295,833 295,833 295,833 295,833 295,833 295,833 295,833 295,833 295,833 295,833 Finishing 345,833 345,833 345,833 345,833 345,833 345,833 345,833 345,833 345,833 345,833 345,833 345,833 Specialities 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 Equipment 87,500 87,500 87,500 87,500 87,500 87,500 87,500 87,500 87,500 87,500 87,500 87,500 Furnishings 312,500 312,500 312,500 312,500 312,500 312,500 312,500 312,500 312,500 312,500 312,500 312,500 Special Construction 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625 Conveying System 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 Mechanical 170,833 170,833 170,833 170,833 170,833 170,833 170,833 170,833 170,833 170,833 170,833 170,833 Electrical 93,750 93,750 93,750 93,750 93,750 93,750 93,750 93,750 93,750 93,750 93,750 93,750 Contingency 156,250 156,250 156,250 156,250 156,250 156,250 156,250 156,250 156,250 156,250 156,250 156,250
Buidling Operations 90,625 90,625 90,625 90,625 90,625 90,625 90,625 90,625 90,625 90,625 90,625 90,625 Pre‐Opening Expenses 77,083 77,083 77,083 77,083 77,083 77,083 77,083 77,083 77,083 77,083 77,083 77,083 Working Capital Contribution 13,542 13,542 13,542 13,542 13,542 13,542 13,542 13,542 13,542 13,542 13,542 13,542
Financing Expense 265,079 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Construction Loan InterestFinancing Fee 265,079 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total Project Development Budget less Loan Interest 9,326,745 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667 2,561,667
Development Page (3 of 3)
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Development Cash Flow:Equity BoP 17,671,907 8,345,162 5,783,495 3,221,827 660,161 ‐ ‐ Equity Draw 9,326,745 2,561,667 2,561,667 2,561,667 660,161 ‐ ‐ Equity EoP 8,345,162 5,783,495 3,221,828 660,161 ‐ ‐ ‐ Equity FV * Financial Close 18,649,002 10,262,745 2,807,051 2,795,403 2,783,804 714,430 ‐ ‐
Construction Debt BoP ‐ ‐ ‐ ‐ ‐ 1,901,505 4,472,679 Construction Debt Interest 2,442,548 ‐ ‐ ‐ ‐ ‐ 9,508 22,363 Construction Debt Draw ‐ ‐ ‐ ‐ 1,901,506 2,561,667 2,561,667 Construction Debt EoP ‐ ‐ ‐ ‐ 1,901,506 4,472,679 7,056,709
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Pro Forma Page (1 of 3)
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Periods 1 2 3 4 5 6 7 8 9 10 11 12Days 31 29 31 30 31 30 31 31 30 31 30 31Month Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 Oct‐16 Nov‐16 Dec‐16
Operations Year 1 1 1 1 1 1 1 1 1 1 1 1
Occupancy 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00% 68.00%Average Daily Rate 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 RevPar 190.40 190.40 190.40 190.40 190.40 190.40 190.40 190.40 190.40 190.40 190.40 190.40
Occupied Rooms 2,635 2,465 2,635 2,550 2,635 2,550 2,635 2,635 2,550 2,635 2,550 2,635 Available Rooms 3,875 3,625 3,875 3,750 3,875 3,750 3,875 3,875 3,750 3,875 3,750 3,875
Department RevenueRooms 737,800 690,200 737,800 714,000 737,800 714,000 737,800 737,800 714,000 737,800 714,000 737,800 Restaurant 131,750 123,250 131,750 127,500 131,750 127,500 131,750 131,750 127,500 131,750 127,500 131,750 Lounge 52,700 49,300 52,700 51,000 52,700 51,000 52,700 52,700 51,000 52,700 51,000 52,700 Banquet 445,890 417,123 445,890 431,507 445,890 431,507 445,890 445,890 431,507 445,890 431,507 445,890 Other Food & Beverage
Total Food & Beverage 630,340 589,673 630,340 610,007 630,340 610,007 630,340 630,340 610,007 630,340 610,007 630,340 Telephone 2,635 2,465 2,635 2,550 2,635 2,550 2,635 2,635 2,550 2,635 2,550 2,635 Garage 13,175 12,325 13,175 12,750 13,175 12,750 13,175 13,175 12,750 13,175 12,750 13,175 Gift Shop 2,635 2,465 2,635 2,550 2,635 2,550 2,635 2,635 2,550 2,635 2,550 2,635 Spa 84,932 79,452 84,932 82,192 84,932 82,192 84,932 84,932 82,192 84,932 82,192 84,932 Other Rents & Commissions 21,080 19,720 21,080 20,400 21,080 20,400 21,080 21,080 20,400 21,080 20,400 21,080 Other
Total Revenue 1,492,597 1,396,300 ######## ######## ####### ####### ####### ####### ####### ####### ####### #######
Department ExpensesRooms 236,096 220,864 236,096 228,480 236,096 228,480 236,096 236,096 228,480 236,096 228,480 236,096 Restaurant 111,988 104,763 111,988 108,375 111,988 108,375 111,988 111,988 108,375 111,988 108,375 111,988 Lounge 34,255 32,045 34,255 33,150 34,255 33,150 34,255 34,255 33,150 34,255 33,150 34,255 Banquet 356,712 333,699 356,712 345,205 356,712 345,205 356,712 356,712 345,205 356,712 345,205 356,712 Other Food & Beverage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total Food & Beverage 502,955 470,506 502,955 486,730 502,955 486,730 502,955 502,955 486,730 502,955 486,730 502,955 Telephone 2,635 2,465 2,635 2,550 2,635 2,550 2,635 2,635 2,550 2,635 2,550 2,635 Garage 6,588 6,163 6,588 6,375 6,588 6,375 6,588 6,588 6,375 6,588 6,375 6,588 Gift Shop 2,372 2,219 2,372 2,295 2,372 2,295 2,372 2,372 2,295 2,372 2,295 2,372 Spa 72,192 67,534 72,192 69,863 72,192 69,863 72,192 72,192 69,863 72,192 69,863 72,192 Other Rents & Commissions 1,054 986 1,054 1,020 1,054 1,020 1,054 1,054 1,020 1,054 1,020 1,054 Other ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total Department Expenses 823,891 770,736 823,891 797,313 823,891 797,313 823,891 823,891 797,313 823,891 797,313 823,891
Gross Operating Profit 668,706 625,564 668,706 647,135 668,706 647,135 668,706 668,706 647,135 668,706 647,135 668,706
Pro Forma Page (2 of 3)
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Unallocated DepartmentsGeneral & Administrative 0.07788439 116,250 108,750 116,250 112,500 116,250 112,500 116,250 116,250 112,500 116,250 112,500 116,250 Repairs & Maintenance 0.058153678 86,800 81,200 86,800 84,000 86,800 84,000 86,800 86,800 84,000 86,800 84,000 86,800 Sale & Marketing 0.058153678 86,800 81,200 86,800 84,000 86,800 84,000 86,800 86,800 84,000 86,800 84,000 86,800 Utilities 0.025123997 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 Other
Total Unallocated Departments 327,350 308,650 327,350 318,000 327,350 318,000 327,350 327,350 318,000 327,350 318,000 327,350
Other DeductionsManagement Fee 44,778 41,889 44,778 43,333 44,778 43,333 44,778 44,778 43,333 44,778 43,333 44,778 FF&E Rep and Capital Rsvs 44,778 41,889 44,778 43,333 44,778 43,333 44,778 44,778 43,333 44,778 43,333 44,778 Property Taxes 50,959 47,671 50,959 49,315 50,959 49,315 50,959 50,959 49,315 50,959 49,315 50,959 Insurance 8,493 7,945 8,493 8,219 8,493 8,219 8,493 8,493 8,219 8,493 8,219 8,493 Permits & Licenses 1,699 1,589 1,699 1,644 1,699 1,644 1,699 1,699 1,644 1,699 1,644 1,699 Equipment Rental 3,397 3,178 3,397 3,288 3,397 3,288 3,397 3,397 3,288 3,397 3,288 3,397 Other
Total Other Deductions 154,104 144,162 154,104 149,133 154,104 149,133 154,104 154,104 149,133 154,104 149,133 154,104 Furnitures, Fixtures and EquipmentNet Operating Income 187,253 172,752 187,253 180,002 187,253 180,002 187,253 187,253 180,002 187,253 180,002 187,253
DebtTranche 1 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 Tranche 2
Total Debt 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899 220,899
Sales ProceedsSales Price ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Sales Expense ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Principal Repay ‐ Tranche 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Principal Repay ‐ Tranche 2
Net Sales Proceeds ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Reversion FCF ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Operating FCF (33,646) (48,146) (33,646) (40,896) (33,646) (40,896) (33,646) (33,646) (40,896) (33,646) (40,896) (33,646)
Total FCF (33,646) (48,146) (33,646) (40,896) (33,646) (40,896) (33,646) (33,646) (40,896) (33,646) (40,896) (33,646)
Pro Forma Page (3 of 3) (Valuation) (Today)
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Valuation: Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 Oct‐16 Nov‐16 Dec‐16Equity (18,649,002) Reversion FCF ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Operating FCF (33,646) (48,146) (33,646) (40,896) (33,646) (40,896) (33,646) (33,646) (40,896) (33,646) (40,896) (33,646)
(18,649,002) (33,646) (48,146) (33,646) (40,896) (33,646) (40,896) (33,646) (33,646) (40,896) (33,646) (40,896) (33,646)
DSCR 0.85 0.78 0.85 0.81 0.85 0.81 0.85 0.85 0.81 0.85 0.81 0.85 Average 1.67 Minimum 0.78
*RevPar Index (Star Report)Cash‐on‐Cash ‐0.18% ‐0.26% ‐0.18% ‐0.22% ‐0.18% ‐0.22% ‐0.18% ‐0.18% ‐0.22% ‐0.18% ‐0.22% ‐0.18%
Average 0.79%Minimum ‐0.26%
PV Reversion 72,226,968 85.33%PV Operating 12,418,101 14.67%Total 84,645,069 100.00%CF0 (18,649,002) New Present Value 65,996,066 IRR 25.05%
Amortization Page (Today)
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PermanentPrincipal 53,015,720 Interest 5.00%Term 30I/O Y
# BoP Principal Interest Payment EoP Annual1 53,015,720 ‐ 220,899 220,899 53,015,720 2 53,015,720 ‐ 220,899 220,899 53,015,720 3 53,015,720 ‐ 220,899 220,899 53,015,720 4 53,015,720 ‐ 220,899 220,899 53,015,720 5 53,015,720 ‐ 220,899 220,899 53,015,720 6 53,015,720 ‐ 220,899 220,899 53,015,720 7 53,015,720 ‐ 220,899 220,899 53,015,720 8 53,015,720 ‐ 220,899 220,899 53,015,720 9 53,015,720 ‐ 220,899 220,899 53,015,720 10 53,015,720 ‐ 220,899 220,899 53,015,720 11 53,015,720 ‐ 220,899 220,899 53,015,720 12 53,015,720 ‐ 220,899 220,899 53,015,720 2,650,786
Annual Summary (1 of 2) (Today)
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Annual Summary: Year 1 2 3 4 5 6Revenue
Rooms 8,710,800 9,526,500 10,265,625 10,573,594 10,920,639 11,217,526 F&B Total 7,442,084 8,706,500 9,921,875 10,219,531 10,554,956 10,841,901 Telephone 31,110 32,850 34,219 34,561 35,002 35,256 Garage 155,550 229,950 273,750 281,963 291,217 299,134 Gift Shop 31,110 65,700 68,438 70,491 72,804 74,784 Spa 1,002,740 1,200,000 1,500,000 1,575,000 1,658,281 1,736,438 Other Rents & Commissions 248,880 295,650 342,188 352,453 364,021 373,918 Other ‐ ‐ ‐ ‐ ‐ ‐
Total Revenue 17,622,273 20,057,150 22,406,094 23,107,592 23,896,921 24,578,954
ExpenseDepartment
Rooms 2,787,456 2,953,215 3,079,688 3,172,078 3,276,192 3,365,258 F&B Total 5,938,112 6,340,950 7,082,188 7,294,653 7,534,078 7,738,898 Telephone 31,110 32,850 34,219 34,561 35,002 35,256 Garage 77,775 114,975 136,875 140,981 145,609 149,567 Gift Shop 27,999 59,130 61,594 63,442 65,524 67,305 Spa 852,329 960,000 1,125,000 1,181,250 1,243,711 1,302,328 Other Rents & Commissions 12,444 14,783 17,109 17,623 18,201 18,696 Other ‐ ‐ ‐ ‐ ‐ ‐ Total Department 9,727,225 10,475,903 11,536,672 11,904,588 12,318,316 12,677,307
Gross Profit 7,895,049 9,581,248 10,869,422 11,203,005 11,578,605 11,901,648
Annual Summary (2 of 2) (Today)
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Unallocated DepartmentsGeneral & Administrative 1,372,500 1,414,375 1,460,000 1,503,800 1,553,158 1,595,381 Repairs & Maintenance 1,024,800 1,022,000 1,022,000 1,052,660 1,087,210 1,116,767 Sale & Marketing 1,024,800 1,022,000 1,022,000 1,052,660 1,087,210 1,116,767 Utilities 450,000 450,000 450,000 463,500 477,405 491,727 Other ‐ ‐ ‐ ‐ ‐ ‐ Total Unallocated Depts 3,872,100 3,908,375 3,954,000 4,072,620 4,204,983 4,320,643
Other DeductionsManagement Fee 528,668 601,715 672,183 693,228 716,908 737,369 FF&E Rep and Capital Rsvs 528,668 802,286 1,120,305 1,155,380 1,194,846 1,228,948 Property Taxes 601,644 625,000 650,000 669,500 691,474 710,273 Insurance 100,274 100,000 100,000 104,000 108,456 112,486 Permits & Licenses 20,055 20,000 20,000 20,400 20,865 21,224 Equipment Rental 40,110 40,000 40,000 41,200 42,552 43,709 Other ‐ ‐ ‐ ‐ ‐ ‐ Total Other Deductions 1,819,419 2,189,001 2,602,488 2,683,707 2,775,102 2,854,009
Net Operating Income 2,203,530 3,483,872 4,312,934 4,446,677 4,598,520 4,726,996
DebtTranche 1 2,650,786 2,650,786 2,650,786 2,650,786 2,650,786 2,650,786 Tranche 2 ‐ ‐ ‐ ‐ ‐ ‐
Total Debt 2,650,786 2,650,786 2,650,786 2,650,786 2,650,786 2,650,786
Net Sales Proceeds ‐ ‐ ‐ ‐ ‐ ‐
Reversion FCF ‐ ‐ ‐ ‐ ‐ ‐ Operations FCF (447,256) 833,086 1,662,148 1,795,891 1,947,734 2,076,210 Total FCF (447,256) 833,086 1,662,148 1,795,891 1,947,734 2,076,210
Inputs - Characteristics Number of Rooms Total Area (sf) Banquet Area (sf)
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Sources Sources Equity Investor 1 Investor 2
Debt Tranche 1 (source) Tranche 2 (source)
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Uses Uses Land & Related General & Administrative Development Charges & Municipal Costs Hard Cost Construction Building Operations Finance Expense
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Input - Revenue Rooms Occupancy Average Daily Rate
Food & Beverage Restaurant Lounge Banquet Other F&B
Other Departments Telephone/Internet Garage Gift Shop Spa Other Rents &
Commissions Other
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Input - Expense Department Rooms Restaurant Lounge Banquet Other F&B Telephone/Internet Garage Spa Rents & Commissions
Unallocated Dept. G&A Repairs & Maint Sales & Marketing Utilities
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Input – Expense (Cont’d) Other Deductions Management Fee FF&E Rep and Capital Reserves Property Taxes Insurance Permits & Licenses Equipment Rental
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Inputs - Finance Tranche 1 Principal Term(years) Interest Rate Interest Only Origination Fee
Tranche 2 Principal Term(years) Interest Rate Interest Only Origination Fee
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Inputs - Valuation Capitalization Rate Sales Expense Discount Rate Sale Period (timing)
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Scalability
The benefit(s) of successful pro forma modeling
Scalability (Incorporating the Waterfall)
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Separation of cash flows according to owners’ agreement Separation of cash flows by yield, NOT by
order Order: Bank vanilla example
“Pref” Rate: Preference Rate Generally provided to Investor Acts as a coupon rate, e.g. Preferred Equity
Waterfall Diagram
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Pari Passu
“Pref” Rate15% good proxy for “Pref”1st Tier
Non Pari Passu split
2nd Tier 2nd Tier rate
N # Tiers
Nth Tier rate
Final Tier
Nth Tier
Example – Final DistributionX % to Promote to Sponsor(1‐X%) distribution Pari Passu
Waterfall Logic
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15% IRR
20% IRR
20% + IRR
Sponsor10%
Sponsor20%
PromoteSponsor40%
Investor90%
Investor80%
Investor90%
Sponsor10%
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Waterfall Addition (100% Scalable)
Roger Staiger III [email protected]
Summary Page
Pro Forma Page (s3)
Amortization Page (s4) Inputs Section
(s1)
Analysis (s4)
Development Page (s2)
Circular Reference
Waterfall Page (Investor) (s5)
ULI – Staiger (Upcoming Seminars)
1) Four part 2-hour series: How to build a Hotel pro forma model (Current Pro Forma Webinar)
2) Four part 2-hour series: Advanced Pro Forma Webinar (Multifamily Focus)
3) Two part 2-hour series: How to develop a waterfall
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Stage Capital List-Serve Daily Capital Markets Summary Daily e-mail New research distributed Updates for Stage Capital Webinars and
information sessions Interested? E-mail Roger @: [email protected]
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Questions?
Let’s Begin (see memorandum for detailed steps of
process at conclusion)