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Three groups of assumptions drive Parafin’s financial outputs: revenue, budget, and investment. Change a number, then press Enter or click outside the field. Parafin recalculates every variant in the project, so the ranked list can reorder and a different design can come out on top.

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Where the starting numbers come from

Every assumption arrives filled in before you touch it. The revenue and budget figures come from the brand you picked: blended ADR, blended occupancy, hard cost per gross square foot, soft cost per gross square foot, and land cost per square foot are all set per brand. Investment assumptions start from one set that is the same for every brand. Blue numbers are the ones you type. The totals Parafin works out from them show in grey. Your edits stay on that project. They don’t change the brand’s numbers or your next project, and a teammate sees them only if you share a copy.

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Editing assumptions from the variant popup

Open every project assumption from a single place by clicking Edit Assumptions in the variant popup. Your changes are reflected across every variant in the project, not just the selected one.
Editing project assumptions in the side panel

Editing project assumptions from the variant popup

The Edit Assumptions panel opens on the right of the screen. It has three tabs: Budget, Revenue, and Investment. Each row is a group of fields. The number on a row is the group’s current value; click the row to open it.

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Budget

Enter land acquisition, hard costs, soft costs, FF&E, developer overhead, and project contingency. Line items Parafin doesn’t break out separately (OS&E, IT, pre-opening) go into soft costs. Developer overhead and contingency are entered as percentages of the total budget.
Edit AssumptionsUSDClose
BudgetRevenueInvestment
Land$3,500,000
Hard Costs$200/gsf
Soft Costs$30.00/gsf
Custom Budgets$0
Construction Loan
Developer Overhead & Fee4.00%
Contingency Allowance5.00%
Guestroom FF&E
See Budget assumptions for every field on this tab.

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Revenue

Set stabilized-year revenue for guestrooms, meeting rooms, and food & beverage. For each room type, enter ADR and occupancy. The Food & Beverage Revenue row appears only for brands with a food and beverage area.
Edit AssumptionsUSDClose
BudgetRevenueInvestment
Guestroom Revenue$118.80 RevPAR
Function Spaces Revenue$100/sf
Food & Beverage Revenue$100/sf
Custom Revenue
See Revenue assumptions for every field on this tab.

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Investment

Set NOI margin, disposition, and financing. Construction loan interest is included in the project budget. The sale date assumes the first hypothetical stabilized year.
Edit AssumptionsUSDClose
BudgetRevenueInvestment
Net Operating Income45.0%
Investment
See Investment assumptions for every field on this tab.