Generate Hotel Financial Projections in 60 Seconds
Hotel financial performance comes down to three numbers: occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR). A 60-room boutique hotel at 72% occupancy and $165 ADR generates about $2.6M in room revenue. But rooms are only part of the picture. Food and beverage, event space, parking, and ancillary services can add 20-40% on top of room revenue. Each stream has its own margin profile and seasonal demand curve, so lenders expect them broken out individually.
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Three steps to your hotel financial projections
Describe your business
Tell us about your business model, revenue streams, costs, and growth expectations.
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Our AI generates 5-year financial projections with income statement, cash flow, and key metrics.
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Sample Output
See what hotel projections look like
Sample projections for a hotel based on real industry benchmarks.
Business Overview
The Linden Hotel is a 45-room boutique hotel under development in downtown Savannah, GA. The ownership group, led by a former Marriott regional operations director with 15 years in hospitality, is converting a historic 1920s building into a boutique property with a ground-floor restaurant and rooftop bar. Room rates range from $189 (standard) to $349 (suite), targeting leisure travelers and small corporate events. Total project cost is $6.8M, financed through $2M in owner equity, $4M in commercial debt, and $800K from two limited partners.
5-Year Financial Projections
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Total Revenue | $2,100,000 | $3,050,000 | $3,680,000 | $4,020,000 | $4,350,000 |
| Room Revenue | $1,550,000 | $2,280,000 | $2,750,000 | $3,010,000 | $3,250,000 |
| Operating Expenses | $1,890,000 | $2,440,000 | $2,760,000 | $2,940,000 | $3,100,000 |
| Net Operating Income (NOI) | $210,000 | $610,000 | $920,000 | $1,080,000 | $1,250,000 |
| Occupancy Rate | 58% | 72% | 78% | 80% | 82% |
Key Financial Metrics
ADR (Average Daily Rate)
$210 → $242
RevPAR
$122 → $198
GOP Margin
28% → 42%
F&B as % of Total Revenue
26%
Full projections include cash flow, balance sheet & more
Everything in your hotel financial projections
5-year revenue forecast
Year-by-year revenue projections based on your pricing, growth rate, and market size.
Expense breakdown
Detailed operating expenses: payroll, rent, marketing, materials, and overhead by category.
Profit & loss statement
Complete P&L with gross margin, operating income, and net profit for each year.
Break-even analysis
Know exactly when your business becomes profitable and the revenue needed to get there.
Done in 60 seconds
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Hotel financial projections FAQ
What occupancy rate should hotel financial projections assume?
New hotels typically achieve 45-55% occupancy in Year 1 as they build brand awareness and online reviews. Year 2 usually reaches 65-72%, and stabilized occupancy (Year 3+) is 75-85% for most markets. Luxury boutique hotels in strong leisure markets (Savannah, Charleston, Nashville) can reach 80%+ at stabilization. Budget hotels near interstate highways often operate at 60-70% but with lower ADR. Model monthly occupancy to capture seasonal patterns. Hotels in tourist markets might hit 90%+ in peak season and drop to 40% in off-season.
How do I calculate RevPAR for hotel projections?
RevPAR (Revenue Per Available Room) = ADR x Occupancy Rate. It's the single most important metric in hotel finance because it captures both pricing power and demand. For example, a hotel with a $200 ADR and 70% occupancy has a RevPAR of $140. Industry averages vary by segment: luxury ($200+), upscale ($120-$180), midscale ($70-$110), economy ($40-$65). Plan for RevPAR growth of 3-8% annually as you optimize pricing through revenue management. Lenders benchmark your projected RevPAR against comparable hotels in the same market to evaluate feasibility.
What operating expenses should hotel projections include?
Follow the Uniform System of Accounts for the Lodging Industry (USALI) for your expense categories. The major buckets: rooms department (housekeeping, front desk, amenities) at 20-28% of room revenue, food and beverage at 65-75% of F&B revenue, sales and marketing at 5-8% of total revenue, property operations and maintenance at 4-6%, administrative and general at 8-10%, and insurance/property tax at 3-5%. Management fees run 3-5% of revenue if you hire a third-party operator. Capital reserves should budget 4-5% of revenue annually for furniture, fixtures, and equipment replacement.
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