Simulation
The central aspect of a hotel project development is the profitability simulation, which combines the hotel's operating calculation and the investment calculation. Due to the long duration of the leases, the magnitude of the investment and the complexity of the leases, the planning horizon for a simulation is usually 15 years aligned.
The simulation offers the possibility to compare the concepts on a monetary level at an early stage of the project. In the further course, the simulation is an instrument for the operator selection, the safeguarding of economic interests during construction or the redevelopment of a property.
Room program
The space program is used to determine the space required for a hotel concept. The areas for different purposes are identified (lobby, hotel rooms, kitchens, catering areas, staff rooms, etc.).
Investment costs
The costs of the investment are determined in the capital costs. Based on the areas shown in the space plan and the concept, the construction costs of the hotel are calculated using benchmarks. In hotel projects, this usually also includes the operating equipment and the operational costs for TSA, small inventory and pre-opening.
Operating budget
The operating statement shows the operator's financial planning for several years. Structured as a profit and loss statement, the expenses and income are listed by profit center and the respective profits or losses are shown.
Personnel expenses
A major cost driver in operations is personnel. Therefore, a detailed determination of personnel costs is essential for calculating success.
Rental income
The operating and investment calculations intersect when it comes to rental income: rents are the main source of income for the investor and a significant expense item for the operator. The structuring of rents in a hotel lease can take a variety of forms; they vary depending on the concept and operator.
Financing model
The financing model shows the investor the possibilities for optimizing the return on equity
Renewal costs
Renovation costs are essential for hotel investments. Payments into a corresponding fund have a significant impact on both the investor and operator side.