This chapter presents an overview of hotels, which are at another spectrum of the real estate asset class because they are as much an operating business as they are about the real estate, and demonstrates a pro forma construction of the same. One unique aspect of hotels is the tenor of the leases for the rooms available that is generally a single day. Therefore, hotels are the real estate assets with the greatest sensitivity to economic cycles; they tend to be a leading indicator for economic performance, either entering recession early or recovering sooner. Hotels can re-price their leases on a daily basis as opposed to a multifamily product with year-long leases or commercial/industrial, which can have leases that extend decades, such as ground leases. The components for hotel construction model include the three basic sheets: Summary/Input, Debt, and Pro Forma. However, a Development page will also be added to provide greater insight for a newly developed/renovated hotel.