Hotel Management Agreement Performance Test Calculator: two-part GOP and RevPAR index operator performance test
Full description
For hotel owners, asset managers and financial controllers who must judge an operator against the performance test in a management agreement. You enter five years of monthly budget and actual GOP, revenue, hotel and competitive set RevPAR, and flag force-majeure months. The workbook runs both parts of the test for each fiscal year: actual GOP against a share of budget GOP, and the day-weighted RevPAR index against its threshold. It applies the failure rule you choose, skips years before the first test year or with too few tested months, works out the cure payment the operator must make to avoid failing and whether that cure is allowed under the cure count, the cap and the operator's election, then tracks consecutive failed years to flag the owner's termination right. A fee recap computes the base fee, an incentive fee subordinated to the owner's priority return, owner cash flow and a priority check. Sensitivity grids re-test all five years at 25 threshold pairs with SUMPRODUCT formulas.
Save with a bundle: this workbook is also in the Hotel Finance & Investment Pro Bundle, 25 workbooks for $59 instead of $329. All 100 Pro workbooks are in the Pro Library for $119, and all 241 templates and workbooks are in the Ultimate Hospitality Library for $149.
What is inside
- Hotel_Management_Agreement_Performance_Test.xlsx: 10 tabs, 1,156 formulas, 2 native charts, 13 integrity checks, a Method tab with 17 calculation notes.
- Sample data (illustrative): 220-room hotel, 60 months over 5 fiscal years, 3 force-majeure months, cure elections and fixed charges by year.
- Annual test engine: 32 visible calculation steps per year, from tested months to the termination right.
- Fee recap: base fee, incentive fee calculated and payable, fee withheld by subordination, owner cash flow, priority check and owner yield.
- Sensitivity: failed test years and cure payments needed at 25 GOP and index threshold pairs, plus the Both and Either rules side by side.
- Dashboard: 10 KPI tiles, a check tile, a pass/fail strip by year, a monthly RevPAR index trend chart, a GOP vs threshold chart and a year summary, printable on one page.
- Owner_Report: one-page summary of results, fees and findings with sign-off lines.
- README.txt and LICENSE-and-Terms.txt.
How it works
- Enter the thresholds, failure rule, consecutive years, first test year, cure rights and fee terms on Assumptions.
- Enter 60 months of GOP, revenue and RevPAR for the hotel and the comp set, and mark force-majeure months.
- Set the operator's cure election by year and the fixed charges.
- Read each year's result before and after cure, the cure amount and the termination flag on Annual_Test and the Dashboard.
- Test borderline results on Sensitivity, confirm Checks shows ALL OK and print Owner_Report.
Details
- Format: XLSX workbook.
- Language: English.
- Software: Excel 2016 or later, or LibreOffice Calc. No macros, no data tables, no add-ins.
- Annual test on five fiscal years with monthly inputs, any currency.
- Delivery: instant download.
Good to know
- Sample data is illustrative and does not describe any hotel or market.
- Not legal or financial advice. Agreements define GOP, the comp set, force majeure and cure rights in different ways: read yours and take advice before you serve a notice.
- Thresholds, cure caps and fee terms are inputs: verify local requirements.
- Single-user license.
FAQ
Does a year fail if only one part fails?
You choose. The default rule fails a year only when both parts fail, which is the common form. Switch to Either part fails for a stricter test.
How are force-majeure months handled?
Months marked Yes are removed from both parts. A year with fewer tested months than your minimum is not tested and does not break a run of failed years.
How is the cure amount calculated?
Cure = GOP threshold x budget GOP - actual GOP for the tested months. The model then checks the cure right, the number of cures left, the cap as a share of that year's fees and the operator's election.
Can I test the incentive fee without subordination?
Yes. Set the subordination switch to No and the incentive fee is paid in full on adjusted GOP.
How do I know the formulas are right?
The Checks tab runs 13 tests, including an independent SUMPRODUCT recalculation of the RevPAR index and a reconciliation of GOP to fees, reserve, fixed charges and owner cash flow. The Method tab shows how each result is built.
