Ground Lease & Rent Review Model: Ground Lease Rent Calculator Spreadsheet
Full description
For hotel owners, asset managers and finance leads who pay ground rent or are negotiating a ground lease. The model runs the same hotel through six rent structures over 20 years: fixed, fixed with step-ups, indexed with a floor and a cap, turnover, hybrid and market review. You pick the review cycle (three cycles are inputs), a rent-free or reduced-rent period and the structure to run. The model returns contractual rent, rent cover (earnings before rent divided by rent), rent as a share of revenue with an affordability flag, net cash to the owner and NPV. A Cases tab shows all six structures at all three cycles, and four stress grids re-run the whole model for a revenue fall or rise and for different index caps and floors. A companion workbook calculates a rent review on an index, fixed step or market basis, with notice dates, back-rent and a six-review calendar. A 10-page guide explains the equations with a worked example.
What is inside
- Ground_Lease_Rent_Model.xlsx: 11 tabs, 8,580 formulas, 2 native charts, 21 drop-down and input rules
- Assumptions with 6 rent structures, 3 review cycles, cover and affordability limits and live selections; Forecast and Rent Schedule with 20 years of revenue, index and rent
- Cash Flow: rent cover, rent share of revenue, flags, capex reserve, tax, net cash and NPV for the structure you pick
- Cases: 4 matrices of 6 structures by 3 cycles; Sensitivity: 3 revenue stress grids (6 x 5) and an index cap by floor grid (5 x 5)
- Engine: 74 rows, each a full 20-year model, so every grid cell is a real recalculation
- Dashboard with 9 KPI tiles, a check tile and 2 charts; 12 integrity checks; Method tab with 14 documented calculations
- Rent_Review_Calculator.xlsx: 5 tabs, 170 formulas, 1 chart, 9 integrity checks, a 6-review calendar and a 5 x 5 index by cap grid
- Ground_Lease_Rent_Guide.docx and PDF: 10 pages in 11 sections with equations, a worked example read from the workbooks, a 13-item lease review checklist and common mistakes
- README.txt and LICENSE-and-Terms.txt
How it works
- Enter the hotel, base rent, lease terms for each structure, the three review cycles and your limits on Assumptions.
- Enter occupancy for 20 years, the index change for each year and any rent-free shares.
- Pick a structure and a review cycle, and read the Dashboard, Cash Flow and the flags for cover and affordability.
- Compare all structures on Cases, stress them on Sensitivity, and use the companion workbook when a review is due.
Details
- Formats: 2 Excel workbooks (.xlsx), 1 guide in Word (.docx) and PDF, English
- Software: Excel 2016 or later, or LibreOffice Calc 7 or later
- No macros, no external links, no data tables, no array formulas
- 4 files plus README and license; instant digital download
Good to know
- Sample data is illustrative. Replace it with your own figures. Amounts are in thousands of currency units, before financing.
- Lease wording, index rules, tax and review rights differ by contract and place. Verify local requirements and have counsel review any real lease.
- The model is arithmetic on your inputs. It does not interpret a lease and it is not legal, financial or tax advice.
- The review calculator shows days to the notice deadline from today's date, so that figure changes every day.
- Single-user license. Do not redistribute.
FAQ
What is rent cover?
Earnings before rent divided by the contractual rent. Lenders and landlords often look for 1.5x to 2.0x or more. You set the minimum and the target, and the model flags each year that falls below them.
Which rent structures does it compare?
Fixed, fixed with step-ups, indexed with a floor and a cap, turnover with a breakpoint and a minimum, hybrid (the higher of the indexed rent and a share of revenue) and market review that resets rent to a share of revenue, upward only if you choose.
Can I change the review cycle and add a rent-free period?
Yes. Three review cycles are inputs and you pick the one to run. Rent-free and reduced-rent periods are a row of shares of rent payable, one for each year.
Does it only work for hotels?
The sample is a hotel, but the inputs are generic. Any operating business that pays ground rent on revenue and costs can use it.
Do I need macros or add-ins?
No. Every result, including the stress grids, is a standard worksheet formula.
