Refurbishment: Capex per Key, RevPAR Uplift, Payback and Value Creation
This lesson is part of the course
In this lesson
You size a rooms refurbishment from capex per key, turn the expected RevPAR uplift into extra NOI, work out the simple payback including the NOI lost during the works, and test whether the value created beats the cost.
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Lessons in this course
- Revenue Build-Up: Room Nights, ADR, RevPAR and Other Revenue Locked
- Departmental Profit: Variable and Fixed Costs in Rooms, F&B and Other Departments Locked
- Undistributed Costs and Gross Operating Profit (GOP) Locked
- Management Fees, FF&E Reserve and Net Operating Income (NOI) Locked
- Valuation: NOI ÷ Cap Rate, Value per Key and Sensitivity Locked
- Lease vs Management Contract: Who Carries the Risk? Locked
- Refurbishment: Capex per Key, RevPAR Uplift, Payback and Value Creation Locked
- Five-Year Hold: Purchase, Exit at a Terminal Cap Rate, IRR and Chart Locked