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Banyan Group / Hospitality

Giving a hospitality concept an investment case.

A planned extended-stay hotel needed a reason for investors to look closer. Pitchwave developed the research and narrative around who would stay, how the product fitted the market, and the financial logic behind the proposal.

Pitchwave’s role

Market research · Investment narrative
Writing · Presentation design

To protect client confidentiality, these illustrative examples use fictional names, figures and project details. They are not original client slides.

01 / Frame the opportunity

Give the concept
a commercial purpose.

The opening connects the hotel format to the guest it is intended to serve. Apartment-style rooms and longer stays become part of a business proposition, giving investors a basis for understanding the market and operating assumptions that follow.

Coastline / Hospitality opportunity · Illustrative01

A hotel built for longer stays

A 120-key, select-service hotel for project teams, visiting clinicians and relocating households in a coastal employment market.

Development scale
120 studios
Target stay
14+ nights
The product

350 sq ft studios with kitchens and workspaces. Weekly housekeeping supports stays of 14–28 nights.

Hotel exterior
Guest room interiorHotel lounge
Investment thesis120 keys / $19.2m development

$160,000 per key, including land, construction, furnishings, fees and contingency. Stabilised target: 78% occupancy at $125 per night.

02 / Build the demand case

Show who would stay.
And how often.

The research connected local demand drivers with the extended-stay product. This reconstructed example makes the logic visible: three guest segments add up to the room nights required by the operating model, with a stay pattern for each.

Coastline / Annual demand mix · Illustrative02

34,164 occupied room nights

Coastal hospitality setting used as a regional context illustration

Stabilised annual booking mix / model allocation

Guest sourceAnnual room nightsStay pattern
Defense & contracting13,666 nights / 40%28-night average stay
Healthcare11,957 nights / 35%21-night average stay
Business & relocation8,541 nights / 25%14-night average stay
Capacity reconciliation

93.6 rooms occupied per night

34,164 occupied nights ÷ 43,800 available nights = 78% occupancy. The remaining 9,636 nights provide a 22% vacancy allowance.

Booking requirementAbout 1,670 stays per year

The segment stay lengths imply a blended stay of about 20.5 nights. These are the bookings needed to meet the base case, not signed room blocks.

03 / Expose the financial logic

Show what the
investment case rests on.

Financial inputs need to be read alongside the market argument. The narrative connects the proposed product and demand case to the financial assumptions, so investors can see what supports the proposition and where further scrutiny belongs.

Coastline / Investment assumptions · Illustrative03

From room nights to operating cash

Annual cash after replacement reserve$1.40m

7.31% unlevered yield on $19.2m cost.
Before debt service and income tax.

34,164 nights × $125 = $4.271m rooms
+ $0.128m other income = $4.399m revenue
− $1.320m variable costs − $1.500m fixed
− $0.176m reserve = $1.403m annual cash

Sensitivity / $125 rate and $1.5m fixed costs held constant

ScenarioOccupancyAnnual cash
Downside72%$1.18m
Base case78%$1.40m
Upside84%$1.63m
One operating model across all scenarios

Other income: 3% of room revenue. Variable operating costs: 30% of total revenue. Fixed costs: $1.50m, including property tax and insurance. Replacement reserve: 4% of total revenue.

Downside check6.14% yield at 72% occupancy

Six points below the base case reduces annual cash by about $223,000. Acquisition leverage and exit value are outside this operating scenario.

What Banyan received

A proposition with
reasoning behind it.

An investor presentation covering the concept, market opportunity, demand drivers, supply gap and financial case. Pitchwave’s work brought the research, investment narrative, copy and design into one sequence.

The resulting materials gave the team a structured way to introduce the opportunity and work through the basis for the investment with prospective backers.

Have a case to make?

A concept to develop.
An investor to convince.

Bring the project, the information you have, and the questions your investors will ask.

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