Underwriting Tools

Make Better Hotel Investment Decisions

The best hotel investors don’t guess—they underwrite.

Our underwriting tools help owners, investors, and buyers quickly evaluate acquisition opportunities, estimate financing costs, and understand key investment metrics before making a move.

Whether you’re analyzing your first hotel acquisition or evaluating your next portfolio addition, these calculators provide a practical starting point.

Why we publish these

If the math doesn't work, the deal doesn't work

Every hotel acquisition starts with underwriting | Every valuation starts with understanding how financing, operations, and cash flow impact value.

These are simplified versions of the same frameworks our advisors use when evaluating hotels, preparing broker opinions of value, and advising buyers throughout the acquisition process.

Use them to test assumptions, compare opportunities, and better understand the economics behind a hotel investment.

Whats here

01 · Hotel Acquisition Calculator

Quickly estimate total project costs, financing requirements, and monthly debt payments for a hotel acquisition.

Best for:

  • Initial deal screening
  • Financing estimates
  • Purchase planning
  • Renovation budgeting

02 · Hotel Investment & Financing Calculator

Go beyond financing and evaluate the actual performance of a hotel investment.

Calculate: DSCR, Cap Rate, Cash-on-Cash Return, ROI, Price Per Key and more.

Best for:

  • Investment analysis
  • Comparing opportunities
  • Underwriting acquisitions
  • Preparing for lender conversations

01

Quickly estimate what a deal will cost

Before diving into operational analysis, start with the fundamentals.

This calculator helps you estimate total project costs, required equity, loan amounts, and debt service based on purchase price, renovation costs, financing structure, and interest rates. Ideal for buyers who need a quick snapshot of affordability before moving deeper into underwriting.

Financing Tool · 01

Hotel Acquisition Calculator

For illustrative purposes only
Consult your lender
Inputs
$25,000,000
$2,000,000
$500,000
Total Project Cost
$27,500,000
25% · $6,250,000
6.75%
Outputs
Est. Monthly Payment
$143,082
Est. Yearly Payment
$1,716,984
12 × monthly
Loan Amount
$18,750,000
75.0% LTV
Estimates assume conventional commercial financing. Actual rates, terms, and requirements vary. Not financial advice — consult your lender and advisors.

02

Analyze the investment, not just the purchase

A great acquisition price doesn’t always mean a great investment.

This calculator incorporates operating performance and financing assumptions to help you evaluate projected returns, debt coverage, and overall investment viability. Adjust revenue, NOI, room count, financing terms, and project costs to understand how changes impact returns.

Underwriting Tool · 02

Hotel Investment & Financing Calculator

For illustrative purposes only
Not investment advice
Project Costs
$18,000,000
$2,500,000
$450,000
Total Project Cost
$20,950,000
Financing
30% · $5,400,000
7.25%
Operations
120 keys
$5,800,000
38% · $2,204,000
Implied OpEx: $3,596,000
Headline Metrics
DSCR
1.78x
NOI ÷ Annual Debt Service
Cap Rate
10.5%
NOI ÷ Total Project Cost
Cash-on-Cash
11.8%
Cash flow ÷ cash invested
ROI on Equity
17.5%
Cash flow ÷ down payment
Debt Service
Mortgage · Monthly
$91,144
70.0% LTV · $12,600,000 loan
Mortgage · Annual
$1,093,728
12 × monthly payment
Deal Metrics
Price Per Key
$175K
Total project cost ÷ 120 keys
Revenue Multiplier
3.10x
Price ÷ Annual Room Revenue
Annual Cash Flow After Debt $1,110,272
Estimates assume conventional commercial financing and stabilized operations. Actual rates, terms, and operating ratios will vary. Not financial, tax, or legal advice — consult your lender and advisors.

How to read the output

The numbers that matter most

01

DSCR (Debt Service Coverage Ratio)

Measures a property’s ability to cover its debt obligations.

Most hospitality lenders look for a DSCR of 1.25x or higher. A higher ratio generally indicates stronger lender confidence and lower financing risk.

02

CAP RATE

Measures the relationship between income and value.

Cap rates vary by hotel type, location, market conditions, and asset quality, making them one of the most widely used metrics when comparing investment opportunities.

03

CASH-ON-CASH RETURN

Measures the annual return on the actual cash invested in the deal.

For many investors, this is one of the clearest indicators of how effectively equity is being deployed.

Need a real underwriting model?

These hotel investment calculators provide directional guidance. Our team can build a full analysis tailored to your specific property or acquisition opportunity.

Our Valuation team produces operator-grade BOVs in 7–10 days. Includes the full P&L rebuild, PIP impact, comp set analysis, and a defensible asking range. No obligation to list.