Hotel Management Agreement Fee Calculator: Hotel Management Fee Spreadsheet for Owners

Full description

For hotel owners, asset managers and investors who are reviewing management agreement term sheets or checking the fees on a signed contract. You enter a 10-year operating forecast once and type the terms of up to three offers. The workbook works out base fee, incentive fee on GOP or Adjusted GOP with an owner priority, system, marketing and reservation fees, and the reserve for replacement for each year. It then shows fees as a share of revenue and GOP, the owner cash flow after fees, the NPV of each offer and a rank, plus an annual check of the operator invoice against the agreed terms.

Save with a bundle: this template is also in the Hotel Finance, Development & Pre-Opening Bundle, 10 templates for $35 instead of $76. All 141 templates are in the All-Access Hospitality Template Library for $79.

What is inside

• Hotel_Management_Agreement_Fee_Calculator.xlsx: 8 tabs, 983 formulas, 4 native charts, 10 drop-down or number rules.
• Settings: currency label, first year, rooms, owner investment, discount rate, fee ceiling, invoice tolerance and 2 drop-down lists, with a plain-English note on the 3 owner priority methods.
• Operating_Forecast: a 10-year base case with 15 lines: occupancy, ADR and ADR growth, rooms and other revenue, GOP margin before brand fees, fixed charges and RevPAR.
• Term_Sheets: 3 offers side by side with 20 terms each (base fee steps, incentive basis and rate, priority method and %, system, marketing and reservation fees, reserve steps, revenue premium, one-time fees, key money) and the priority amount by formula.
• Fee_Projection: 21 lines a year for each offer over 10 years, with red flags for fees above your ceiling and a Met or Not met test for the owner priority.
• Compare_Offers: 14 columns per offer, including net fees, NPV of fees, fees % of revenue and GOP, owner cash flow, owner NPV and rank, with 2 charts.
• Annual_Fee_Check: enter one year of actual results and the invoice; 6 fee lines show due, invoiced, variance and a Query flag.
• Dashboard: pick an offer to see 8 KPI tiles, fees by year and owner cash flow for all 3 offers.
• README.txt and LICENSE-and-Terms.txt.

How it works

1. Enter the rooms, owner investment and discount rate on Settings.
2. Type your 10-year base case on Operating_Forecast.
3. Enter each offer's terms on Term_Sheets and choose the incentive basis and priority method from the drop-downs.
4. Read Fee_Projection and Compare_Offers, then pick an offer on Dashboard.
5. Once signed, run Annual_Fee_Check each year against the operator invoice.

Details

• Format: Excel workbook (.xlsx). No macros.
• Language: English. Currency is a label you choose.
• Software: Excel 2016 or later, or a spreadsheet program that opens .xlsx files, such as Google Sheets.
• Delivery: instant digital download. Nothing is shipped.

Good to know

• The forecast, terms and invoice in the file are illustrative, not market benchmarks. Replace them with your own figures.
• Fee definitions differ between contracts. Check how your agreement defines GOP, Adjusted GOP and the owner priority before you rely on a result.
• This is a calculation tool, not legal, tax or investment advice.
• Single-user license. Do not share or resell the files.

FAQ

Can it handle an incentive fee that only applies after the owner gets a return?

Yes. Choose Fee on excess or Subordinated as the priority method and enter the priority % of investment.

What if my contract has a different base fee each year?

Enter separate rates for Year 1, Year 2 and Year 3 onward. Edit the formulas if you need more steps.

Can I compare a branded offer with an independent operator?

Yes. Use the revenue premium and GOP margin adjustment on Term_Sheets to reflect the difference in performance you expect.

Does it include debt service or income tax?

No. Owner cash flow is before debt service and tax.

Is this a physical product?

No. It is a digital download. Refund terms follow the store policy at the time of purchase.