+ CUSTOM MODEL BUILDER
This guides you through a series of questions, allowing you to achieve the exact model you need. Our competitors usually have one hotel acquisition model template for hotel acquisition, whereas we have 16 different versions of our hotel acquisition model to cater to your individual needs.
Competitor hotel acquisition models are too simple. They might only have 2-3 tabs in total which sounds great, but that means you are inputting assumptions directly into the cashflows which is not a good practice. It could also mean that the hotel acquisition model is missing some much needed complexities that institutional investors look for. The TSM hotel acquisition model has dedicated inputs found on the Assumptions and Construction Budget tabs. Also, most competitor models don’t use iterative calculations. Without iterative calculations, the sizing of the debt is incorrect. Our models use iterative calculations to calculate the construction interest so there is no need for manual plugs that you could forget to update.
+PRECISION
Our hotel acquisition models are precise and easy to use. Look at the version history of other competitor hotel models and you will see the number of mistakes and miscalculations that have been supposedly fixed. It is almost as though the competition is using their customers to vet their own products! We have tested all the calculations and functions in our models BEFORE we offer them to our customers.
+FUNCTIONALITY
We generally have more functionality and control over the assumptions. There are countless examples, but our hotel acquisition models have annual control over the revenue and expense inflations. For the exit value calculation, you can select if the cap rate is applied to a forward 12 NOI or a trailing 3-month NOI. For debt, we have the ability to have fixed/floating loans, SOFR caps/floors, and can size the debt based on an LTV calculation. Again, there are too many examples to list out, but you get the idea.
+EXPERTISE
We are experts at waterfall calculations. Our founder regularly teaches on private equity waterfall calculations at Harvard Business School. Our waterfalls in our hotel acquisition models can be either driven off promote or as a percentage of cashflows.
+EASE
We have made the underwriting process as easy as possible. We have included instruction manuals inside each hotel acquisition model and all models include 1-hour of free consultation with one of our financial analysts to answer any questions you have on the model or underwriting a specific investment. We are based in Dallas, Texas and can always be reached by email or phone to support you.
+CRADLE TO GRAVE
We have designed our hotel acquisition models to be used cradle to grave. Our competitor’s models have been designed to simply underwrite deals. Our hotel acquisition models have been built out to be updated during the operations of the project and include reforecasts of budgets within the monthly cashflows.