Client

Our client is one of Australia leading hotel groups, with a mixture of new development, re-development and investment assets.

Brief

Our brief was to develop a scalable consolidation planning and strategy model for the group.

The client required a model that could import and consolidate underlying hotel model information, allowing operational sensitivities to be layered over the top. The model also needed to model portfolio funding and a complex tax structure.

More specifically, the model also needed to:

• roll forward for historical data each month (both trial balance and operational system data);
• analyse historical operational performance of each hotel against benchmarks;
• include a wide range of forecast operational, occupancy, PAR and POR sensitivities;
• support corporate finance activity, such as new facilities / raisings;
• support operational activity, such as asset sale, new purchases and development; and
• facilitate both management and more deal-focussed reporting.

Solution

The final model was a comprehensive consolidation piece that imported baseline operational and financial forecast figures from a suite of underlying hotel models (maintained by a geographically dispersed team).

The model allowed the central FP&A team to analyse the bigger picture, i.e. group and dissect the portfolio, not only operationally but at a broader, more strategic corporate finance level.

The model was also constructed to include:

• individual hotel modules, that the user could add as acquisitions were proposed;
• rolling monthly analysis, as well as (FY and CY) annual financial statements;
• comprehensive rolling hotel valuation functionality; and
• trend-reporting from detailed operational data through to key corporate ratios.

Modano Benefits

In terms of integration with the Modano software, the model also automated the following model development processes:

• monthly roll-forward for historical datasets;
• annual roll forward to rebase the model;
• adding new hotels;
• inserting new debt tranches and equity raisings; and
• adding more cost lines; and so on.

Two months following completion, the model was used for a capital raising, without the need for any separate / supporting deal model.