{"product_id":"condo-hotel-startup-costs","title":"How Much Does It Cost To Start A 67-Key Condo Hotel?","description":"\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\n\u003cp\u003eIt costs at least \u003cstrong\u003e$944,000\u003c\/strong\u003e of minimum opening cash in this condo hotel model before adding any unmodeled land purchase, building acquisition, or major construction budget The researched startup CAPEX is \u003cstrong\u003e$230,000\u003c\/strong\u003e, including a \u003cstrong\u003e$25,000\u003c\/strong\u003e property management system, \u003cstrong\u003e$60,000\u003c\/strong\u003e common-area furniture, \u003cstrong\u003e$40,000\u003c\/strong\u003e kitchen equipment, and other opening assets Pre-opening and early ramp-up cash must also cover about \u003cstrong\u003e$63,050\u003c\/strong\u003e per month of fixed overhead and payroll in Year 1 Total funding can rise sharply when acquisition, renovation, legal condo structure, furniture, fixtures, and equipment (FF\u0026amp;E), working capital, and debt service are added\u003c\/p\u003e\n\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eEstimate Startup Costs with Calculator\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-capex-calculator\" aria-label=\"Condo Hotel Startup CAPEX Calculator\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Startup CAPEX calculator.xlsx\" data-source-site-name=\"Financial Models Lab\" data-source-site-url=\"https:\/\/financialmodelslab.com\" data-source-page-title=\"Condo Hotel Startup CAPEX Calculator\" data-note-title=\"Scope note\" data-note-text=\"Excludes inventory, payroll runway, deposits, debt service, working capital, launch marketing spend, and operating losses. This block covers capitalized startup spend only.\"\u003e\u003cdiv class=\"fml-capex-card\"\u003e\n\u003cheader class=\"fml-capex-header\"\u003e\u003cdiv class=\"fml-capex-heading\"\u003e\n\u003cp class=\"fml-capex-eyebrow\"\u003eStartup CAPEX\u003c\/p\u003e\n\u003cp class=\"fml-capex-intro\"\u003eEstimates capitalized startup assets only for a condo hotel. Base scenario is anchored to the modeled $230,000 opening CAPEX from the listed build-out and equipment items.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-scenarios\" aria-label=\"Scenario presets\"\u003e\n\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"lean\"\u003eLean\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"full\"\u003eFull\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-capex-layout\"\u003e\n\u003cform class=\"fml-capex-inputs\"\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eProperty Tech and Security\u003c\/span\u003e\u003csmall\u003ePMS, IT setup, and security system for guest operations and control.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"propertyTechSecurity\" data-capex-kind=\"money\" data-capex-label=\"Property Tech and Security\" data-capex-note=\"PMS, IT setup, and security system for guest operations and control.\" data-lean=\"52000\" data-base=\"63000\" data-full=\"78000\" name=\"propertyTechSecurity\" type=\"text\" inputmode=\"numeric\" value=\"63,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eKitchen Equipment\u003c\/span\u003e\u003csmall\u003eInitial F\u0026amp;B kitchen equipment for food service setup.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"kitchenEquipment\" data-capex-kind=\"money\" data-capex-label=\"Kitchen Equipment\" data-capex-note=\"Initial F\u0026amp;B kitchen equipment for food service setup.\" data-lean=\"32000\" data-base=\"40000\" data-full=\"52000\" name=\"kitchenEquipment\" type=\"text\" inputmode=\"numeric\" value=\"40,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eCommon Area Furniture\u003c\/span\u003e\u003csmall\u003eShared-space furniture and guest-facing common-area fit-out.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"commonAreaFurnishings\" data-capex-kind=\"money\" data-capex-label=\"Common Area Furniture\" data-capex-note=\"Shared-space furniture and guest-facing common-area fit-out.\" data-lean=\"48000\" data-base=\"60000\" data-full=\"76000\" name=\"commonAreaFurnishings\" type=\"text\" inputmode=\"numeric\" value=\"60,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eSpa and Fitness Equipment\u003c\/span\u003e\u003csmall\u003eWellness equipment for spa and fitness guest amenities.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"spaFitnessEquipment\" data-capex-kind=\"money\" data-capex-label=\"Spa and Fitness Equipment\" data-capex-note=\"Wellness equipment for spa and fitness guest amenities.\" data-lean=\"22000\" data-base=\"30000\" data-full=\"42000\" name=\"spaFitnessEquipment\" type=\"text\" inputmode=\"numeric\" value=\"30,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eLaundry and Digital Assets\u003c\/span\u003e\u003csmall\u003eLaundry equipment plus digital marketing assets tied to launch readiness.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"laundryAndDigitalAssets\" data-capex-kind=\"money\" data-capex-label=\"Laundry and Digital Assets\" data-capex-note=\"Laundry equipment plus digital marketing assets tied to launch readiness.\" data-lean=\"28000\" data-base=\"37000\" data-full=\"48000\" name=\"laundryAndDigitalAssets\" type=\"text\" inputmode=\"numeric\" value=\"37,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eContingency Reserve\u003c\/span\u003e\u003csmall\u003eCovers scope creep, price swings, and small rework in startup CAPEX.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-percent\"\u003e\n\u003cinput data-capex-field=\"contingencyReserve\" data-capex-kind=\"percent\" name=\"contingencyReserve\" type=\"range\" min=\"5\" max=\"15\" step=\"1\" data-lean=\"5\" data-base=\"10\" data-full=\"15\" value=\"10\"\u003e\u003coutput data-capex-output=\"contingencyValue\"\u003e10%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/form\u003e\n\u003caside class=\"fml-capex-results\" aria-live=\"polite\"\u003e\u003cspan class=\"fml-capex-tag\"\u003eCAPEX output\u003c\/span\u003e\u003cdiv class=\"fml-capex-total\"\u003e\n\u003cspan\u003eTotal startup CAPEX\u003c\/span\u003e\u003cstrong data-capex-output=\"totalCapex\"\u003e$253,000\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdl class=\"fml-capex-result-list\"\u003e\n\u003cdiv\u003e\n\u003cdt\u003eSubtotal before contingency\u003c\/dt\u003e\n\u003cdd data-capex-output=\"subtotal\"\u003e$230,000\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eContingency amount\u003c\/dt\u003e\n\u003cdd data-capex-output=\"contingencyAmount\"\u003e$23,000\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eLargest cost driver\u003c\/dt\u003e\n\u003cdd data-capex-output=\"largestDriver\"\u003eProperty Tech and Security\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003c\/dl\u003e\n\u003cdiv class=\"fml-capex-chart\" aria-label=\"CAPEX cost category breakdown\"\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eTech\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"propertyTechSecurity\" style=\"--fml-capex-share: 27%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"propertyTechSecurity\"\u003e27%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eKitchen\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"kitchenEquipment\" style=\"--fml-capex-share: 17%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"kitchenEquipment\"\u003e17%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eCommon Area\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"commonAreaFurnishings\" style=\"--fml-capex-share: 26%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"commonAreaFurnishings\"\u003e26%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eSpa\/Fitness\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"spaFitnessEquipment\" style=\"--fml-capex-share: 13%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"spaFitnessEquipment\"\u003e13%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eLaundry\/Digital\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"laundryAndDigitalAssets\" style=\"--fml-capex-share: 16%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"laundryAndDigitalAssets\"\u003e16%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-capex-export\" type=\"button\" data-capex-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/aside\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-note\"\u003e\n\u003cspan class=\"fml-capex-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003eScope note\u003c\/strong\u003e Excludes inventory, payroll runway, deposits, debt service, working capital, launch marketing spend, and operating losses. This block covers capitalized startup spend only.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003cdiv class=\"container_new_design_blog\"\u003e\n\n\u003cdiv class=\"text-section_blog text-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"line_top_blog\"\u003e\u003cbr\u003e\u003c\/div\u003e\n\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat does the Condo Hotel CAPEX screenshot show?\u003c\/span\u003e\u003c\/h3\u003e\n\n\u003cp\u003eThis \u003ca href=\"\/products\/condo-hotel-financial-model\"\u003eCondo Hotel Financial Model Template\u003c\/a\u003e screenshot shows startup CAPEX, timing, and depreciation fields—organize assumptions for \u003cstrong\u003elender readiness\u003c\/strong\u003e.\u003c\/p\u003e\n\n\u003ch4\u003eScreenshot highlights\u003c\/h4\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDeveloper budget tab\u003c\/li\u003e\n\u003cli\u003eOperating forecast tab\u003c\/li\u003e\n\u003cli\u003eReserve and debt tabs\u003c\/li\u003e\n\u003cli\u003eCAPEX and startup costs\u003c\/li\u003e\n\u003cli\u003eLaunch timing fields\u003c\/li\u003e\n\u003cli\u003eDepreciation or amortization\u003c\/li\u003e\n\u003cli\u003eFive-year model period\u003c\/li\u003e\n\u003cli\u003eUnit-owner payouts\u003c\/li\u003e\n\u003cli\u003eOperating ramp-up\u003c\/li\u003e\n\u003cli\u003eFinancing assumptions\u003c\/li\u003e\n\u003cli\u003e$230k startup CAPEX\u003c\/li\u003e\n\u003cli\u003e$944k Month 1 cash\u003c\/li\u003e\n\u003cli\u003e67 keys, 550% occupancy\u003c\/li\u003e\n\u003cli\u003eYear 1 EBITDA check\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003cdiv class=\"image-section_blog image-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"preview-card\" data-preview-src=\"\/cdn\/shop\/files\/condo-hotel-financial-model-capex-financialmodelslab_ae387edc-c8e7-4e2f-9551-dc283a8545bd.webp\"\u003e\n\u003cimg class=\"preview-img\" width=\"100%\" height=\"auto\" src=\"\/cdn\/shop\/files\/condo-hotel-financial-model-capex-financialmodelslab_ae387edc-c8e7-4e2f-9551-dc283a8545bd.webp?width=500\" alt=\"Condo Hotel Financial Model capex inputs showing customizable capital expenditure categories, schedules and timing to plan construction, renovations and asset purchases for accurate cash needs and scenario-ready forecasts\"\u003e\n\u003cdiv class=\"preview-overlay\"\u003e\n\u003cbutton class=\"preview-btn\" type=\"button\" style=\"align-items: center; vertical-align: middle; display: inline-flex; justify-content: center; gap: 6px; line-height: 1;\"\u003e\nPREVIEW \u003csvg fill=\"#fff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\" role=\"presentation\" viewbox=\"0 0 448 512\" width=\"14\"\u003e\u003cpath d=\"M416 176V86.63L246.6 256L416 425.4V336c0-8.844 7.156-16 16-16s16 7.156 16 16v128c0 8.844-7.156 16-16 16h-128c-8.844 0-16-7.156-16-16s7.156-16 16-16h89.38L224 278.6L54.63 448H144C152.8 448 160 455.2 160 464S152.8 480 144 480h-128C7.156 480 0 472.8 0 464v-128C0 327.2 7.156 320 16 320S32 327.2 32 336v89.38L201.4 256L32 86.63V176C32 184.8 24.84 192 16 192S0 184.8 0 176v-128C0 39.16 7.156 32 16 32h128C152.8 32 160 39.16 160 48S152.8 64 144 64H54.63L224 233.4L393.4 64H304C295.2 64 288 56.84 288 48S295.2 32 304 32h128C440.8 32 448 39.16 448 48v128C448 184.8 440.8 192 432 192S416 184.8 416 176z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n\u003c\/button\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much money do you need to start a condo hotel?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eYou need at least \u003cstrong\u003e$944,000\u003c\/strong\u003e in Month 1 funding to start this Condo Hotel, not just the construction budget; see \u003ca href=\"\/blogs\/kpi-metrics\/condo-hotel\"\u003eWhat Is The Current Occupancy Rate For Condo Hotel?\u003c\/a\u003e before locking the revenue case. That funding includes \u003cstrong\u003e$230,000\u003c\/strong\u003e in startup CAPEX and setup for \u003cstrong\u003e67 available units\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCash Needed\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFund \u003cstrong\u003e$944,000\u003c\/strong\u003e minimum Month 1 cash\u003c\/li\u003e\n\u003cli\u003eInclude \u003cstrong\u003e$230,000\u003c\/strong\u003e startup CAPEX\u003c\/li\u003e\n\u003cli\u003eAdd legal and regulatory setup\u003c\/li\u003e\n\u003cli\u003eCarry pre-opening payroll and contingency\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eRevenue Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003ePlan around \u003cstrong\u003e67 units\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eUse studios through penthouses\u003c\/li\u003e\n\u003cli\u003eModel ADRs from \u003cstrong\u003e$180-$850\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eValidate the \u003cstrong\u003e550% occupancy\u003c\/strong\u003e input\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is the biggest cost to open a condo hotel?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eThe biggest cost to open a Condo Hotel is usually \u003cstrong\u003esite control plus development scope\u003c\/strong\u003e — buying land, acquiring an existing building, or converting one, not software or opening marketing. The source model only shows \u003cstrong\u003e$230,000\u003c\/strong\u003e in non-real-estate opening CAPEX, which is about \u003cstrong\u003e$3,433 per key\u003c\/strong\u003e on a \u003cstrong\u003e67-key\u003c\/strong\u003e model, so the real spend comes from land, hard construction, and build-out on top of that. Local labor, permitting, life-safety upgrades, accessibility work, amenity packages, and service standards can easily outweigh the smaller setup line items.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMain cost driver\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003eSite control\u003c\/strong\u003e sets the budget floor.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eGround-up development\u003c\/strong\u003e is the costliest path.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e67 keys\u003c\/strong\u003e makes per-key math matter.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$230,000\u003c\/strong\u003e excludes real estate and hard build costs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost pressure points\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003eLabor\u003c\/strong\u003e can move fast by market.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003ePermitting\u003c\/strong\u003e can slow and raise spend.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eLife-safety and accessibility\u003c\/strong\u003e upgrades add real cost.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eAmenity and service standards\u003c\/strong\u003e raise the build-out.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow do you fund a condo hotel and build the financial model?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eFund \u003cstrong\u003eCondo Hotel\u003c\/strong\u003e by splitting the model into \u003cstrong\u003edeveloper CAPEX\u003c\/strong\u003e, unit sales, hotel operating revenue, owner payouts, reserves, and debt service, because the current outputs show \u003cstrong\u003e$944,000\u003c\/strong\u003e minimum cash in Month 1, \u003cstrong\u003e$230,000\u003c\/strong\u003e startup CAPEX, \u003cstrong\u003eMonth 1 breakeven\u003c\/strong\u003e, \u003cstrong\u003e1-month payback\u003c\/strong\u003e, \u003cstrong\u003e3338%\u003c\/strong\u003e ROE, and \u003cstrong\u003e0%\u003c\/strong\u003e IRR. Here’s the quick math: model revenue from \u003cstrong\u003e67 Year 1 available units\u003c\/strong\u003e, \u003cstrong\u003e550% occupancy\u003c\/strong\u003e, midweek and weekend ADR tiers, plus extra income lines, but lenders will still test absorption, legal structure, reserve cash, and debt coverage. Those assumptions need validation before any investor use.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFunding stack\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSeparate \u003cstrong\u003eCAPEX\u003c\/strong\u003e from unit sales\u003c\/li\u003e\n\u003cli\u003eKeep hotel ops cash distinct\u003c\/li\u003e\n\u003cli\u003eSet owner payouts after reserves\u003c\/li\u003e\n\u003cli\u003eMatch debt service to source cash\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eBank tests\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShow \u003cstrong\u003e$944,000\u003c\/strong\u003e Month 1 cash\u003c\/li\u003e\n\u003cli\u003eShow \u003cstrong\u003e$230,000\u003c\/strong\u003e startup CAPEX\u003c\/li\u003e\n\u003cli\u003eShow \u003cstrong\u003e67\u003c\/strong\u003e units in Year 1\u003c\/li\u003e\n\u003cli\u003eStress \u003cstrong\u003eoccupancy\u003c\/strong\u003e, reserves, debt coverage\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCalculate Fuding Needs\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-summary-static\" aria-label=\"Condo Hotel Startup Cost Summary\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Condo Hotel Startup Cost Summary Table.xlsx\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Condo Hotel Startup Cost Summary\" data-source-url=\"\"\u003e\u003cdiv class=\"fml-summary-static-card\"\u003e\n\u003cheader class=\"fml-summary-static-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-summary-static-eyebrow\"\u003eStartup cost summary\u003c\/p\u003e\n\u003cp class=\"fml-summary-static-description\"\u003eThis table splits modeled startup CAPEX from excluded launch cash needs for the condo hotel.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-actions\"\u003e\n\u003cdiv class=\"fml-summary-static-scenarios\" aria-label=\"Highlight scenario\"\u003e\n\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"low\"\u003eLow\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"high\"\u003eHigh\u003c\/button\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-summary-static-export\" type=\"button\" data-summary-export\u003eEXPORT XLSX\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003csection class=\"fml-summary-static-metrics\" aria-live=\"polite\"\u003e\u003cdiv class=\"fml-summary-static-metric is-primary\"\u003e\n\u003cspan\u003eHighlighted CAPEX\u003c\/span\u003e\u003cstrong data-summary-metric=\"capex\"\u003e$230,000\u003c\/strong\u003e\u003csmall data-summary-metric=\"scenario\"\u003eBase planning example\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric is-warning\"\u003e\n\u003cspan\u003eExcluded cash needs\u003c\/span\u003e\u003cstrong data-summary-metric=\"working\"\u003e$944,000\u003c\/strong\u003e\u003csmall\u003eOutside CAPEX total\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric\"\u003e\n\u003cspan\u003eFunding need\u003c\/span\u003e\u003cstrong data-summary-metric=\"funding\"\u003e$1,174,000\u003c\/strong\u003e\u003csmall\u003eCAPEX + excluded cash needs\u003c\/small\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cdiv class=\"fml-summary-static-table-wrap\"\u003e\u003ctable class=\"fml-summary-static-table\"\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth scope=\"col\"\u003eCost Category\u003c\/th\u003e\n\u003cth scope=\"col\" class=\"fml-summary-static-estimate-header\" data-summary-estimate-header\u003eBase Estimate\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eMain Cost Driver\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eCAPEX Calculator\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-summary-row data-low=\"100000\" data-base=\"112000\" data-high=\"125000\" data-capex=\"true\"\u003e\n\u003ctd\u003eFurniture, spa, and laundry equipment\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$112,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eCommon-area furniture, spa, and laundry fit-out\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"40000\" data-base=\"45000\" data-high=\"50000\" data-capex=\"true\"\u003e\n\u003ctd\u003eProperty management and IT systems\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$45,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003ePMS and IT infrastructure\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"36000\" data-base=\"40000\" data-high=\"45000\" data-capex=\"true\"\u003e\n\u003ctd\u003eF\u0026amp;B kitchen equipment\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$40,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eInitial kitchen and service line equipment\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"16000\" data-base=\"18000\" data-high=\"20000\" data-capex=\"true\"\u003e\n\u003ctd\u003eSecurity and access systems\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$18,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eBuilding security hardware and controls\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"12000\" data-base=\"15000\" data-high=\"18000\" data-capex=\"true\"\u003e\n\u003ctd\u003eLaunch marketing assets\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$15,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003ePre-opening digital brand assets\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr class=\"is-excluded\" data-summary-row data-low=\"850000\" data-base=\"944000\" data-high=\"1100000\" data-capex=\"false\"\u003e\n\u003ctd\u003eOpening cash buffer\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$944,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eMonth 1 cash runway and operating reserve\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill is-no\"\u003eNo\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cfooter class=\"fml-summary-static-note\"\u003e\u003cspan class=\"fml-summary-static-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Ranges are planning assumptions; row 6 excludes non-CAPEX cash needs like working capital and opening reserve.\u003c\/p\u003e\u003c\/footer\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCondo Hotel Core Five Startup Costs\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eProperty Acquisition and Site Control Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eSite Control\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eProperty acquisition\u003c\/strong\u003e is a separate startup line. It covers the \u003cstrong\u003eland or building purchase\u003c\/strong\u003e, deposits, due diligence, appraisals, environmental review, surveys, title work, and closing costs. Keep it separate from construction, FF\u0026amp;E, financing fees, and opening working capital, so the budget shows what is tied to the site versus what funds the build and launch.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eCost Drivers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe source model does \u003cstrong\u003enot\u003c\/strong\u003e include a purchase amount, so this stays a \u003cstrong\u003euser-entered line\u003c\/strong\u003e. Use the asking price or LOI, then add quoted fees for title, survey, appraisal, and environmental work. Price it against \u003cstrong\u003emarket tier\u003c\/strong\u003e, zoning, resort location, existing hotel condition, parking rights, amenity rights, and whether units sell before or after opening.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eBudget Inputs\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eHere’s the quick math: acquisition cost equals the purchase price plus \u003cstrong\u003erefundable\u003c\/strong\u003e deposits and \u003cstrong\u003enonrefundable\u003c\/strong\u003e diligence and closing cash. Track each item separately, because some cash comes back if the deal dies and some does not. That split matters for funding, since it shows how much money is truly at risk before construction starts.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eCash at Risk\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo reduce loss, close only after title, zoning, and use rights clear. The biggest mistakes are paying too early, skipping environmental review, or assuming amenity and parking rights are included. Keep the earnest money deposit refundable where possible, then let counsel confirm which fees are \u003cstrong\u003enonrefundable\u003c\/strong\u003e before you wire the next dollar.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eConstruction, Renovation, or Conversion Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eHard-Cost Base\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003e67\u003c\/strong\u003e Year 1 available units means the model needs a user-entered hard-cost base. Use \u003cstrong\u003ecost per key × 67\u003c\/strong\u003e or a total project budget, then keep \u003cstrong\u003econtingency\u003c\/strong\u003e, soft costs, FF\u0026amp;E, legal structuring, and working capital outside the construction line.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eWhat It Covers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis line covers guestroom unit build-out, corridors, lobby, back-of-house, elevators, life-safety systems, accessibility upgrades, amenities, and contractor contingency. Keep it to \u003cstrong\u003ehard costs\u003c\/strong\u003e only so the subtotal stays clean and lender-ready.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eGuestroom and common-area build-out\u003c\/li\u003e\n\u003cli\u003eExclude FF\u0026amp;E and legal\u003c\/li\u003e\n\u003cli\u003eAdd contingency as a separate line\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eHow To Model\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eStart with user-entered \u003cstrong\u003ecost per available key\u003c\/strong\u003e or a full project budget. Divide the budget by \u003cstrong\u003e67\u003c\/strong\u003e to get a per-key view, then show the \u003cstrong\u003econstruction subtotal\u003c\/strong\u003e and contingency separately for ground-up, acquisition renovation, and hotel-to-condo-hotel conversion.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse one budget per path\u003c\/li\u003e\n\u003cli\u003eShow subtotal before contingency\u003c\/li\u003e\n\u003cli\u003eCompare all three scenarios\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eKeep It Separate\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eDon't mix this with soft costs, FF\u0026amp;E, or opening cash. Clean separation makes investor review easier and shows how much capital is tied to construction versus closing, legal work, and first-month operating cash.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eFF\u0026amp;E and OS\u0026amp;E Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eFF\u0026amp;E Scope\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eFF\u0026amp;E and OS\u0026amp;E\u003c\/strong\u003e cover the durable items and opening supplies guests and staff use every day: beds, case goods, unit furniture, kitchenette items, lobby furniture, spa and fitness gear, signage, linens, smallwares, and guest supplies. In this model, the listed CAPEX totals \u003cstrong\u003e$170,000\u003c\/strong\u003e across common areas, spa, kitchen, laundry, and security.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eBudget Inputs\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eHere’s the quick math: \u003cstrong\u003e$60,000\u003c\/strong\u003e common-area furniture, \u003cstrong\u003e$30,000\u003c\/strong\u003e spa and fitness equipment, \u003cstrong\u003e$40,000\u003c\/strong\u003e kitchen equipment, \u003cstrong\u003e$22,000\u003c\/strong\u003e laundry equipment, and \u003cstrong\u003e$18,000\u003c\/strong\u003e security system. Separate this from construction, software subscriptions, and replacement reserves. Ask for unit counts, vendor quotes, and which items are per suite versus shared space.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse unit counts × unit prices\u003c\/li\u003e\n\u003cli\u003eGet quotes on shared areas\u003c\/li\u003e\n\u003cli\u003eTrack opening inventory separately\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eCost Control\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eBuy shared items in packages, but don’t cheap out on guest touchpoints like beds, linens, and lobby seating. A good rule is to lock specs early, get two to three bids, and keep OS\u0026amp;E tight so it doesn’t bleed into construction. One clean line item beats a messy lump sum.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStandardize room packages\u003c\/li\u003e\n\u003cli\u003eBid furniture in one round\u003c\/li\u003e\n\u003cli\u003eDelay nonessential decor\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eOwner vs. Program\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf units are individually owned, confirm whether \u003cstrong\u003eunit owners\u003c\/strong\u003e or the \u003cstrong\u003ehotel program\u003c\/strong\u003e pays for in-unit furniture packages. That choice drives cash need, owner onboarding, and consistency across suites. Write the funding rule into the rental agreement or unit package schedule before you buy anything.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eLegal, Permitting, and Professional Services Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eWhat it covers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis bucket covers \u003cstrong\u003ezoning\u003c\/strong\u003e, permits, architectural and engineering sign-off, the condo declaration, homeowners association documents, the management agreement, rental program papers, securities counsel where needed, accounting, and insurance review. The source model shows \u003cstrong\u003e$1,600 per month\u003c\/strong\u003e for ongoing legal and accounting, or \u003cstrong\u003e$19,200 a year\u003c\/strong\u003e, but condo formation and permitting are not separately priced. Use \u003cstrong\u003equalified local counsel\u003c\/strong\u003e; this is not legal advice.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eHow to price it\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eEstimate this line from local quotes, then add the months you expect legal and accounting to stay open. Here’s the quick math: \u003cstrong\u003emonthly fee × months of coverage\u003c\/strong\u003e, plus filing fees, plan review, and any securities work. The real cost swings with \u003cstrong\u003estate law\u003c\/strong\u003e, unit sales structure, rental-pool economics, lender demands, and whether you are converting an existing property or building new.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse fixed-fee quotes first.\u003c\/li\u003e\n\u003cli\u003eSeparate filing fees from counsel.\u003c\/li\u003e\n\u003cli\u003eBudget more for conversions.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eHow to trim it\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eControl spend by bundling counsel early, locking the ownership and rental model before drafting, and avoiding redesign after lender comments. One clean document set is cheaper than repeated edits. Save money by getting zoning and permit paths confirmed first, because late changes can add another round of drafting, review, and filing.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eConfirm the structure before drafting.\u003c\/li\u003e\n\u003cli\u003eAsk for one review team.\u003c\/li\u003e\n\u003cli\u003eFix zoning issues early.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eWhat drives the bill\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe biggest price drivers are \u003cstrong\u003estate law\u003c\/strong\u003e, \u003cstrong\u003eunit sales structure\u003c\/strong\u003e, \u003cstrong\u003erental-pool economics\u003c\/strong\u003e, \u003cstrong\u003elender requirements\u003c\/strong\u003e, and whether the deal is a \u003cstrong\u003econversion\u003c\/strong\u003e or new development. If the condo form touches securities rules, bring in securities counsel early. That keeps you from underbudgeting a line that is small monthly but heavy in setup work.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003ePre-Opening, Staffing, and Working Capital Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eOpening Cash\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis bucket covers pre-opening managers, hiring, training, property management system setup, channel setup, website and booking engine, brand launch, unit-owner communications, insurance binders, utilities deposits, supplies, and reserve cash. Keep it outside CAPEX, but still in total funding. The model shows this is a real opening cash need, not overhead noise.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eBuild the Budget\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eEstimate it by months of pre-opening coverage times \u003cstrong\u003e$43,750\u003c\/strong\u003e payroll plus \u003cstrong\u003e$19,300\u003c\/strong\u003e fixed overhead, then add setup quotes and deposits. Year 1 payroll is \u003cstrong\u003e$525,000\u003c\/strong\u003e, so labor is the main burn. Here’s the quick math: one month of payroll plus overhead is \u003cstrong\u003e$63,050\u003c\/strong\u003e before software, supplies, and launch fees.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMonths to opening × monthly burn\u003c\/li\u003e\n\u003cli\u003eGet PMS and web quotes\u003c\/li\u003e\n\u003cli\u003eAdd deposits and supplies\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eControl the Burn\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eProtect quality by staging hires, locking vendor quotes early, and delaying nonessential launch spend until bookings prove out. Do not trim training, owner notices, insurance, or guest-facing systems. The source model’s minimum cash is \u003cstrong\u003e$944,000\u003c\/strong\u003e in Month 1, so weak ramp-up can strain liquidity fast if occupancy lags the \u003cstrong\u003e550%\u003c\/strong\u003e Year 1 assumption.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStage\nhires by opening date\u003c\/li\u003e\n\u003cli\u003eDelay nice-to-have launch items\u003c\/li\u003e\n\u003cli\u003eKeep compliance spend intact\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eCash Buffer\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe opening reserve should cover slow ramp, not just day-one setup. With \u003cstrong\u003e$43,750\u003c\/strong\u003e monthly payroll and \u003cstrong\u003e$19,300\u003c\/strong\u003e fixed overhead, the business starts with a \u003cstrong\u003e$63,050\u003c\/strong\u003e monthly burn before one-time launch costs, so the funding plan needs cash on hand, not just signed vendor contracts.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCompare 3 Startup Cost Scenarios\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-scenario-table\" aria-label=\"Condo Hotel Startup Cost Scenarios\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Condo Hotel Startup Cost Scenarios\" data-note-label=\"Planning note\" data-note-text=\"Ranges are researched planning assumptions, not exact quotes or fixed bids.\"\u003e\u003cdiv class=\"fml-scenario-table-card\"\u003e\n\u003cheader class=\"fml-scenario-table-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-scenario-table-eyebrow\"\u003eScenario table\u003c\/p\u003e\n\u003cp class=\"fml-scenario-table-description\"\u003eStartup cost moves with key count, amenity level, and how much build work you take on. The 67-key base model anchors the middle; lean trims scope, and full adds space, service, and soft costs.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-actions\"\u003e\u003cbutton class=\"fml-scenario-table-export\" type=\"button\" data-scenario-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-scenario-table-wrap\"\u003e\u003ctable class=\"fml-scenario-table-grid\"\u003e\n\u003ccaption\u003eLean, Base, and Full condo hotel launch cost comparison\u003c\/caption\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth class=\"fml-scenario-table-stub\" scope=\"col\" data-export-value=\"Scenario\"\u003eScenario\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Lean Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eLean Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLow-capex test\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Base Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eBase Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eBalanced build\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Full Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eFull Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eCapital heavy\u003c\/span\u003e\n\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Launch model\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-launch\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-launch-model.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eLaunch model\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Use a smaller, limited-service condo hotel with fewer keys and simpler guest flow.\"\u003eUse a smaller, limited-service condo hotel with fewer keys and simpler guest flow.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use the 67-key model with standard amenities, 55.0% Year 1 occupancy, and the model's Month 1 cash need.\"\u003eUse the 67-key model with standard amenities, 55.0% Year 1 occupancy, and the model's Month 1 cash need.\u003c\/td\u003e\n\u003ctd data-export-value=\"Build a ground-up or luxury condo hotel with larger common areas, better FF\u0026amp;E, and higher soft costs.\"\u003eBuild a ground-up or luxury condo hotel with larger common areas, better FF\u0026amp;E, and higher soft costs.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Typical setup\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-setup\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-typical-setup.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eTypical setup\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Keep amenity space light and push more acquisition or renovation cost to the owner side.\"\u003eKeep amenity space light and push more acquisition or renovation cost to the owner side.\u003c\/td\u003e\n\u003ctd data-export-value=\"Run the full service mix in the plan: studios through penthouses, housekeeping, F\u0026amp;B, spa, parking, and events.\"\u003eRun the full service mix in the plan: studios through penthouses, housekeeping, F\u0026amp;B, spa, parking, and events.\u003c\/td\u003e\n\u003ctd data-export-value=\"Plan for more service layers, a fuller amenity package, and a broader unit-sales strategy.\"\u003ePlan for more service layers, a fuller amenity package, and a broader unit-sales strategy.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Cost drivers\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-drivers\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-cost-drivers.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eCost drivers\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Fewer keys; lighter amenities; conversion scope; owner-funded renovation; lower soft costs\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eFewer keys\u003c\/li\u003e\n\u003cli\u003elighter amenities\u003c\/li\u003e\n\u003cli\u003econversion scope\u003c\/li\u003e\n\u003cli\u003eowner-funded renovation\u003c\/li\u003e\n\u003cli\u003elower soft costs\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"67-key model; standard amenities; opening CAPEX; Month 1 cash need; staffing buildout\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003e67-key model\u003c\/li\u003e\n\u003cli\u003estandard amenities\u003c\/li\u003e\n\u003cli\u003eopening CAPEX\u003c\/li\u003e\n\u003cli\u003eMonth 1 cash need\u003c\/li\u003e\n\u003cli\u003estaffing buildout\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Higher key count; luxury amenities; higher FF\u0026amp;E; higher soft costs; longer buildout\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eHigher key count\u003c\/li\u003e\n\u003cli\u003eluxury amenities\u003c\/li\u003e\n\u003cli\u003ehigher FF\u0026amp;E\u003c\/li\u003e\n\u003cli\u003ehigher soft costs\u003c\/li\u003e\n\u003cli\u003elonger buildout\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Planning range\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-range\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-planning-range.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003ePlanning range\u003c\/span\u003e\u003cspan class=\"fml-scenario-row-subtitle\"\u003eCAPEX only\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Below base CAPEX\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eBelow base CAPEX\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLowest capital\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$230,000\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$230,000\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eMiddle band\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"Above base CAPEX\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eAbove base CAPEX\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eHighest capital\u003c\/span\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Best fit\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-fit\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-best-fit.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eBest fit\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Fits owners testing demand in a smaller market or a phased opening.\"\u003eFits owners testing demand in a smaller market or a phased opening.\u003c\/td\u003e\n\u003ctd data-export-value=\"Fits founders who want the modeled mid-scale launch and can fund the opening cash need.\"\u003eFits founders who want the modeled mid-scale launch and can fund the opening cash need.\u003c\/td\u003e\n\u003ctd data-export-value=\"Fits sponsors with strong capital and a premium market thesis.\"\u003eFits sponsors with strong capital and a premium market thesis.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-note\"\u003e\n\u003cspan class=\"fml-scenario-table-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Ranges are researched planning assumptions, not exact quotes or fixed bids.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49303523098867,"sku":"condo-hotel-startup-costs","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/condo-hotel-startup-costs.webp?v=1782679580","url":"https:\/\/financialmodelslab.com\/products\/condo-hotel-startup-costs","provider":"Financial Models Lab","version":"1.0","type":"link"}