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A 180-key 4-star hotel, on RevPAR.

Sample assumptions, the ADR and occupancy stack that decide the income, and the operator agreement that sits over the top.

Scale180 keys
Program33 months
Yield on cost (stabilised)7.00%

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this hotel example. Every one is editable in Popurise.

Assumption sheet07 lines

Stabilised ADR: $295
Stabilised occupancy: 78%
Stabilised RevPAR: $230
GOP margin (stabilised): 42% of total revenue
Operator base fee: 3% of total revenue
Operator incentive: 8% of GOP
Exit cap rate: 7.25%

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the hotel output set respond.

0104 items

Site and keys

Site area: 1,400 m²
GFA: 9,800 m²
Keys: 180
Avg key area: 28 m²

0205 items

Cost stack

Land: $24.0M
Construction shell and core: $58.8M
FF&E and OS&E: $11.7M
Authority and pro fees: $5.8M
Finance and pre-opening: $6.1M

0304 items

Revenue and timing

Stabilised total revenue: $19.6M pa
Stabilised GOP: $8.23M pa
Stabilised NOI (post lease): $7.45M pa
Ramp to stabilised: Month 6 to 24

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a hotel deal, in one place.

Hero outputYield on cost (stabilised)

7.00%

Secondary metrics08 lines

Total development cost
$106.4M
Stabilised total revenue
$19.6M pa
Stabilised GOP
$8.23M pa
Stabilised NOI
$7.45M pa
Exit value
$102.8M
Cost per key
$591,000
Equity IRR (3 yr hold)
11.8%
Peak debt
$58.0M

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same hotel project. No copied files. The decision is which one to take to investment committee.

Base case

base

Stabilised ADR $295, 78% occupancy, current operator terms.

Yield on cost7.00%
Spread to exit cap−25 bps
Cost per key$591k
Equity IRR11.8%

Verdict

Yield on cost roughly matches exit cap. Margin is in the ramp and the upside cycle.

Downside

downside

ADR holds, occupancy stabilises at 72%, GOP margin slips 200 bps.

RevPAR$212
Yield on cost6.24%
Spread to exit cap−101 bps
Equity IRR6.5%

Verdict

Returns thin. The deal becomes a long hold for cycle recovery.

Stretch

stretch

ADR lifts $25 on supply tightening. GOP margin holds at 44%.

RevPAR$250
Yield on cost7.85%
Spread to exit cap+60 bps
Equity IRR16.4%

Verdict

Strong outcome. Hotels reward supply discipline more than any other typology.

06 / Decision takeaway

Hotels are operating businesses with a real estate wrapper. RevPAR is the single income line and it decides the deal. The operator agreement controls how much GOP becomes property NOI.

Hotel feasibility solution

Open

Hotel feasibility model

Open

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