Resource Library

Cash Flow Projection for Hotel Project

Image of signage that reads "HOTEL". Case study on cash flow projection for hotel project.

One of our real estate clients, received a hotel chain’s proposal to build on his property. Before meeting with the chain, he asked us to evaluate the hotel’s five — year cash flow projection. Utilizing cutting-edge cash flow projection software,  RINA’s team with 13 years of hotel experience compared the proposal to the actual financial statements of 52 California hotels with sales in the projected range. With the significant differences now identified, we prepared a new series of five-year projections using the differences as variables. Our report pinpointed the proposal’s most sensitive assumptions and then offered alternative cash flows based on our analysis.  After reviewing  RINA’s report, our client asked us to present it at his meeting with the chain.  

When asked to comment on this experience, our client said:

I didn’t realize until recently that RINA, who has been my CPA for my entire professional life, has services that go beyond what you normally think of as accountants. I have a pro forma on the addition of a boutique hotel to an existing property, an artisan built building that has a lot of charm. RINA reviewed the pro forma and raised some questions about the second year growth in income.  We met with the Chief Operating Officer, a founder of the hotel group,  and reviewed the material.  He explained why it got such a boost in year two. The meeting lasted an hour or so and helped get some traction to the numbers and we got to see just how hands on the Chief Operating Officer is with the numbers and their operations. It was reassuring and gave me confidence in going further with the proposed project.

Contact RINA

Join Our Mailing List