Boutique Hotel / Motel Acquisition & SBA Underwriting Financial Model

The broker prices this motel at $75,000 a key. The bank sizes it at $52,700 a key. The $1.34M gap is the whole game.

Every hotel pro-forma you will be shown leads with a RevPAR and stops at a proud "owner cash flow." A lender does neither. It discounts the RevPAR to the NOI the property actually nets — after a management fee and an FF&E reserve the seller never booked — caps that at a going-in rate, and hands you a brand-mandated PIP cheque at closing. This model does exactly that, on one screen, with every number a formula you can audit.

Built for the first-time hotelier, the immigrant owner-operator, the small hospitality buyer using an SBA 7(a)/504 loan — hospitality is the single largest SBA lending category. It is an acquisition-underwriting model (RevPAR + FF&E reserve + PIP + SBA/DSCR), not another operating pro-forma.

What it does - RevPAR revenue engine — keys × ADR × occupancy → rooms + other revenue, with the RevPAR tie-out. - USALI flow-through to NOI — departmental + undistributed costs (incl. the franchise fee) → GOP → the two invisible deductions (management fee + FF&E reserve) → the NOI a bank underwrites. - The price bridge (the signature tab) — the broker's per-key comp vs the bank's income method, side by side, to two prices, the overpay avoided, and the DSCR at each price (under 1.0x at the broker price). - The PIP — the brand's Property Improvement Plan at change of ownership, loaded into the total project cost and the loan. - The SBA capital stack — buyer equity + seller note (full-standby/amortizing lever) + the loan, with the DSCR gate, leverage and injection checks. - DSCR true vs naive — the bank number beside the seller's, and the gap that IS the two deductions. - A RevPAR down-case — one honest mechanism; NOI falls faster than revenue, and coverage breaks. - "The flag is not free" — flagged vs independent, netting the RevPAR lift against the franchise fee and the PIP. - 3 segment profiles — Economy Highway, Midscale Select-Service, Upper-Midscale Branded — the premium segment trades at a lower cap, so you pay up and the coverage thins.

Base case (Midscale Select-Service, 60 keys), QA-verified - ADR $95 · occupancy 62% · RevPAR $58.90 · total revenue ~$1,400,000 - GOP $532,000 (38.0%) · underwritten NOI $332,000 (23.7%) vs a naive $437,000 - Bank price $3,163,555 ($52,726/key) vs broker $4,500,000 ($75,000/key) → overpay avoided $1,336,445 (29.7%) - PIP $360,000 · total project $3,646,461 · SBA loan $2,625,452 (72% leverage, 28% injection) - DSCR true 1.28x · naive 1.69x · down-case (RevPAR −15%) 0.84x · at the broker price 0.93x - rooms coverage 4.98x · yield-on-cost 9.1% · MOIC (5y, leverage-amplified) 1.58x · no live IRR by design

What you get — a 10-tab Excel model (every cell a formula, Google Sheets-safe), a plain-English guide PDF, and a README. Educational planning tool, not financial, legal or tax advice.

Honest limits — the numbers are industry-representative reference bands (STR/CoStar, HVS, CBRE, AHLA, AAHOA, BLS); replace them with the target's STR report and trailing-12 P&L. The down-case is one declared mechanism, not a recession back-test. The equity multiple is leverage-amplified; read it next to the yield-on-cost. This is the first acquisition-underwriting model built around RevPAR, the FF&E reserve, the PIP and an SBA/DSCR gate — not the first hotel operating model.