ALEHOSTProperty assessmentProperty assessment

Accommodation project · Madrid

Calculate your property's performance

Explore how price, occupancy, costs and investment affect your property's annual results.

01

Set up your scenario

The three options are calculation assumptions, not statistics or target returns.

Capacity and revenue
Operating costs

Management is included in the costs. The scenarios adjust fixed costs to leave the owner 42%, 46% or 50% of revenue before reserves, financing and tax. These are editable assumptions, not guaranteed margins.

Capital and upkeep

Investment includes acquisition and associated costs, building works, equipment, opening costs, contingencies and working capital. The reserve is calculated on revenue and deducted after NOI.

Your simulation results

Discover your project's figures

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Price and occupancy

ADR
RevPAR

Revenue per occupied room and per available room, respectively.

Annual revenue

Accommodation only. Food and beverage, events and other revenue are not included.

Estimated annual NOI

Operating income for the owner before reserves, financing and tax.

Operating yield on cost

Estimated NOI ÷ total investment. This is not IRR or the investor's net return.

From revenue to cash flow

Accommodation revenue
− Variable costs
− Fixed costs
= NOI
− Replacement reserve
Cash flow after reserveBefore debt service and income tax

Context, not a forecast

Hotel market benchmark
for the Madrid region.

ADR · 2025€146.9

RevPAR · 2025€108.5

Regional average for hotel establishments. This is not an average for Madrid city or holiday apartments, or an Alehost result. This tool's assumptions were chosen to explain the calculation; they were not estimated from these data.

Source: Community of Madrid, June 2026 report, p. 19 ↗

What this calculation includes

As an investment benchmark, CBRE reports a Madrid prime hotel yield of 5% in the first quarter of 2026. This benchmark concerns prime assets with their own prices and contracts; it does not represent this example's yield on cost or the expected return of any guesthouse, hotel or apartment. Source: CBRE, 3 June 2026 ↗

One property, one period

The figures must relate to the same rooms and the same year. Do not mix ADR per room, occupancy per bed and bookings across a whole portfolio. A booking is not the same as one room-night sold.

Costs counted once

Management, utilities, maintenance and other operating expenses must be included in fixed or variable costs. They are not deducted again as a second fee. The replacement reserve is calculated after operating income.

Transparent formulas

RevPAR = ADR × occupancy.
Revenue = rooms × days × RevPAR.
Estimated NOI = revenue − variable costs − fixed costs.
Yield on cost = estimated NOI ÷ investment.
Cash flow after reserve = estimated NOI − revenue × reserve rate.

What is excluded

Amounts exclude VAT. NOI is estimated operating income, not an audited result. Financing, income tax, capital appreciation and future sale proceeds are excluded. The property assessment must validate the cost scope and the contract; the simulation does not guarantee results.