Budget assumptions

The Budget tab in Edit Assumptions sets every cost input behind the Development Budget. Adjust a field, then click Recalculate and the model refreshes the outputs. Each section below is one accordion in the tab.

Land Acquisition

Field	What it means	Units
Land Acquisition	The purchase price of the site.	$/sf or $/ac

Enter the land cost per square foot or per acre. The model converts to a total using the site area.

Hard Costs

Field	What it means	Units
Hard Costs	The vertical construction cost of the building.	$/gsf or $ per key

Enter hard costs per gross square foot or per key. A Cost index toggle scales the figure between a base index of 1.00 and a location-specific construction index, so the same base cost reflects local pricing.

Soft Costs

Field	What it means	Units
Soft Costs	Design, permitting, and other non-construction costs.	$/gsf or % of Hard Costs

Enter soft costs per gross square foot or as a percentage of Hard Costs. The same Cost index toggle applies.

Custom Budgets

Field	What it means	Units
Add custom budget	An extra budget line for a cost the standard fields don’t capture.	$

Add a custom line, name it, and enter its amount. Custom lines flow into the Total Budget and can be included in the Developer Overhead & Fee and Contingency Allowance calculations.

Developer Overhead & Fee

Field	What it means	Units
Developer Overhead & Fee	The developer’s fee and overhead, applied as a percentage of the selected cost lines.	%

The percentage applies to the items you select — Land, Hard Costs, Soft Costs, Guestroom FF&E, and any custom lines.

Contingency Allowance

Field	What it means	Units
Contingency Allowance	A reserve held against cost overruns, applied as a percentage of the selected cost lines.	%

Choose which cost lines the contingency applies to.

Guestroom FF&E

Field	What it means	Units
Guestroom FF&E	Furniture, fixtures, and equipment for the guestrooms, set per key for each room type.	$/key

Set a per-key FF&E budget for each room type in the mix.

Construction Loan

Field	What it means	Units
Loan-to-Cost	Share of the Total Budget funded by the construction loan.	%
Interest Rate	Annual interest rate on the construction loan.	%
Fees	All origination, lender, and closing costs for sourcing the loan.	%
Period	Time from land acquisition to the end of the first operating year; spreads development costs and sets the interest reserve.	months

For the outputs these inputs feed, see Reading your result tables.

​Land Acquisition

​Hard Costs

​Soft Costs

​Custom Budgets

​Developer Overhead & Fee

​Contingency Allowance

​Guestroom FF&E

​Construction Loan