How to analyze profit and loss with 20 rooms hotel/resort style STR

[Daniel Rozen]

Hello BP community,

i found a potential buy with dilapidated multi-family property which used to be hotel or resort and zoned for commercial use. Its on the lake and got couple of different size buildings which in total count about 20 rooms which can be renovated and rented out as STR for various occasions including corporate parties, weddings etc.

I have a robust excel spreadsheet model (graciously obtained from BP awhile ago) which i modified to fit my needs of evaluating single residence home with various parameters including ARVs, taxes, mgmt fees, financing etc. (see attached picture)

My question to you is how is the process or logic different in analyzing this potential project than what i am  or many of us currently doing for SRH?  Is it just a matter of scaling up by factor of 20 which is the number of rooms which can be rented out?

Some of the assumptions are i applied were: ADR (very conservative for the area), Occupancy rate (below 40% to be conservative), rehab cost is probably too conservative and will be more but still will make sense as we'll build value into project. 

On paper, the deal looks sweet! But i know i am missing something here. What do you advise i take into consideration when evaluating this project?

thanks much for your help.

Daniel