Hotel Pro Forma Development for the Beginner: ULI Online Live Workshop
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Held over four sessions, this new online workshop will guide students step-by-step through the construction of a development pro forma for a mid-size hotel property. Beginning with a blank spreadsheet, the program will take students through the entire project from development through sale. Students will be instructed in the basic differences between a hotel pro forma model and other asset classes such as office or multifamily and the corresponding inputs and structure. At the end of the last session, participants will have completed their own hotel pro forma that will actively link to a cash flow page, allowing students to understand the basic valuation of a hotel and how investment decisions are made.
Each session of the workshop is designed to build on the previous one with each participant having a completed pro forma model at the conclusion. Participants will use learned skills to independently build individual sections and maintain the pace of the workshop. However, to avoid the possibility of anyone falling behind, the completed stages will be distributed the evening of each completed workshop. At the conclusion of the workshop, the instructor’s copy will be distributed, which will provide, at a minimum, a working hotel pro forma model for each participant.
The program is designed to be interactive. The instructor will be available by e-mail between sessions to assist participants. Registrants will have access to the recordings of each of the four sessions.
Session 1: March 19, 2013 1:30-3:30 p.m. ET
The class will begin with a blank spreadsheet. Students will assign cell colors and design borders to separate areas, and create sections for the inputs for the basic hotel model. The amortization page will be provided and reviewed as part of this session.
Session 2: March 21, 2013 1:30-3:30 p.m. ET
Starting with the completed structure from the first session, participants will develop the Construction Draw Page and Development Budget. Participants will understand the general structure of a development budget and how to spread/allocate costs.
Session 3: March 26, 2013 1:30 – 3:30 p.m. ET
In this session participants will develop the pro forma income page for the hotel project down to net income. Participants will understand how to link assumptions and escalate costs over time, and understand basic functions and functionality, such as linking, adding/subtracting, and the subtotal function.
Session 4: March 28, 2013 1:30 – 3:30 p.m. ET
In the final session participants will create a cash flow page for the entire project, i.e. development through sale. Pulling it all together, participants will be valuing the cash flows for investment decisions. Linking the pro forma page to the bottom of the input/summary page and valuing cash flows, students will understanding basic valuation of a hotel and how investment decisions are made.
Roger P. Staiger
Stage Capital, LLC