Looking for a ski lodge business plan? You're in the right place.
A lodge in a mountain town has to answer questions that a year-round hotel can skip. How much does the fit-out cost before the first guest arrives? What do you do in the months when the lifts are closed and the rooms are half empty? Who pays for the staff who have nowhere to live? A generic template will not tell you what a sensible answer looks like.
In this article we'll walk through a complete sample plan for a small lodge in Aspen, Colorado, section by section, so you can see how the pieces fit and write your own. We'll cover the executive summary, the SWOT analysis and, in particular, all of the financials.
Here's what you'll take away:
- Executive summary: a leased building, a three-part funding mix and a seasonal business on one page, so an investor sees the ask at once
- Market section. Two very different seasons described honestly, with no tourism statistic you cannot source
- Rate and occupancy tables that price every month of the year, which gives your revenue line a reason to exist
- What a seasonal payroll and a few leased staff apartments do to the budget, shown before you commit to either
- The first year month by month, so you can find the six months that lose money and size your reserve around them
- Rent, pay raises and a loan schedule traced through five years of profit, cash flow and balance sheet
- A slow-winter case that answers the "what if revenue is 20% short?" question, with the owner's response, the cash trough and the bank covenant
If you're planning a lodge, hostel or small hotel, read this before you write your own. The business is fictional, so take what fits your property and change the rest.
In this plan
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Executive Summary
Ajax Bunkhouse is a 14-room, 24-bed lodge that opens in Aspen, Colorado, on 1 January 2027. Guests book either a private room or a single bed in an eight-bed bunk room. The ground floor holds a café and bar, and a ski room with boot dryers sits beside the front door. The business is Ajax Bunkhouse, LLC, a tenant in a 9,000-square-foot building on a ten-year lease. Founder Anna Kuznetsov runs the house and holds 23% of the units.
The lodge needs $1,392,000: $272,000 from Anna, $920,000 from six investors and a $200,000 bank loan secured on the furnishings and equipment. Of that, $882,000 pays for the contractor build-out (with a 12% contingency) and the equipment, $230,000 covers start-up costs that are expensed at opening, and $280,000 stays as a cash reserve.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $1,966,814 | $2,336,185 | $2,570,436 |
| Net income after start-up costs | ($334,608) | $75,937 | $143,835 |
| Closing cash | $254,881 | $384,843 | $529,803 |
Private rooms average 51% occupancy in Year 1 at $389 a night, and bunk beds 52% at $113. December to March brings in 52% of the year's revenue. Operating profit is only $15,935 for the year, and six months lose money: April, May, June, September, October and November. After depreciation, interest and the start-up costs, Year 1 is a loss, and Year 2 is the first profitable year. Rent cover is thin in Year 1 (1.04 times) and the loan is interest-only that year, so the plan asks the bank for covenant testing to begin in Year 2.
The plan tests a slow winter. With revenue 20% below plan, a dropped hire, thinner seasonal shifts, a pay cut for Anna and no distributions, year-end cash stays positive, but the Year 2 November low falls to an estimated $67,000, below a $75,000 trigger. At that point a $150,000 investor standby commitment and a covenant waiver from the bank come into play.
The product is deliberately mixed. Bunk beds sell to groups who would otherwise split a rented condo, private rooms sell to couples and families, and whole-lodge buyouts sell the weeks when neither is full.
The Lodge
Ownership and the lease
Ajax Bunkhouse, LLC is a Colorado limited liability company, manager-managed by Anna. Equity of $1,192,000 is issued as units in proportion to the cash paid in: Anna 23%, the six investors 77% between them, and no single investor above 20%. Major decisions, such as a sale, new debt or a change of lease, need approval from holders of a majority of units. The investors are local and regional individuals; one is a retired hotel operator who sits on a quarterly review call. Investors have no right to redeem. Their exit is a sale of the business or of their units, or an assignment of the lease with the landlord's consent, and the plan forecasts none. Any raise from outside investors is made under an exemption reviewed by counsel, and this plan is an example, not an offer.
The building is leased from a family trust for ten years with two five-year options, on a triple-net basis. Base rent starts at $240,000, about $27 a square foot, and steps up 3% a year. The tenant also pays 4% of total revenue as percentage rent and about $54,000 a year of property tax, common-area charges and building insurance. Year 1 occupancy cost is $372,673, 18.9% of revenue. The landlord accepts a personal guarantee from Anna in place of a cash deposit, pays for the roof and structure, and agrees in writing to the bank taking a lien on the furnishings and to an assignment of the lease to a buyer of the business, subject to its approval of the buyer. The lease is conditional on the building's lodging use being confirmed in writing by the city.
From lease to opening day
The lease is signed in July 2026. A building permit for interior alterations is applied for in August and expected to be issued by September, and a contractor builds for 14 weeks from October to a 1 January opening. The building already has lodging use, so no change of use is needed; if the city required one, the opening date would not hold. The contract has a 12% contingency and a fixed completion date. Work is staged so the bunk rooms and lounge finish first. A one-month slip would put the January revenue of $207,350 at risk, and the reserve is not sized to absorb it.
What the 9,000 square feet hold
- 14 private rooms, about 3,360 square feet, each with a queen bed and a private bathroom.
- Three bunk rooms of eight beds, about 990 square feet, with a locker, a reading light and a privacy curtain at every bed.
- A café, bar and lounge on the ground floor, about 1,300 square feet, serving breakfast, coffee and an evening bar with no kitchen dinner service.
- A ski room of about 400 square feet with boot dryers and tuning space.
- About 2,950 square feet of corridors, laundry holding, storage and the back office.
Targets for the first two years
- Private-room occupancy of 51% in Year 1 and 59% in Year 2.
- Revenue of $2,336,185 in Year 2, with a profit after tax.
- Month-end cash above $100,000 throughout in the base case, with the November low in each year as the test. The slow-winter case below dips under that line and relies on the standby commitment.
- Three whole-lodge buyouts in Year 1 and five in Year 2.
- First owner distribution in Year 3.
What the lodge sells
| Line | How it is priced | Year 1 share of revenue |
|---|---|---|
| Private rooms | Nightly rate that changes by month, $167 to $632 | 50.3% |
| Bunk-room beds | Nightly rate per bed, $57 to $170 | 25.4% |
| Café, bar and breakfast | $35 per guest-night on average | 17.4% |
| Ski room, rental commissions and retail | $6.50 per guest-night on average | 3.2% |
| Group buyouts | $24,000 flat for three nights | 3.7% |
Permits between lease signing and opening
The lodge needs an Aspen business licence, registration to collect city lodging tax and sales tax, a Colorado liquor licence for the bar in a class that counsel confirms, a county food-service licence for the café, and fire and life-safety sign-off for the bunk rooms. The City of Aspen's finance FAQ states that the city lodging tax is 2.0% and that the business renting out accommodation must collect and remit it. State, county and other taxes may also apply and are not covered here. Guests pay these taxes on top of the room rate, so they sit outside the revenue figures in this plan. Counsel confirms the licence classes before the lease is signed.
Aspen's Two Seasons
Winter carries the year
The lodge's pricing follows the lifts. December to March produces 57% of Year 1 room and bed revenue, and December alone is the single best month. The lodge books holiday weeks with minimum stays and prices them separately from the rest of the month.
Summer and the shoulders
Summer is a real second season, led by festival and conference weekends and by hiking and cycling. June to August produce 27% of Year 1 room and bed revenue, at lower rates than winter. April closes with the lifts, and May, October and November are the months when many mountain properties thin out. The plan stays open in all three and shows what that costs: operating losses of $89,211 in May, $66,960 in October and $89,622 in November.
What the published data can and cannot tell a lender
Local tourism bodies report occupancy and rates for the town as a whole. This plan could not open those reports, and a whole-town average covers every kind of property, including luxury hotels, so a bunk-room bed is a different product. The occupancy and rates here are the lodge's own stated targets, set month by month, and are not taken from any market series.
The other places a guest might sleep
| Alternative | Why a guest picks it | How the lodge differs |
|---|---|---|
| Luxury hotels in town | Service, location and brand | A lower price point, and a social lounge in place of a spa |
| Mid-market hotels and condo-hotels | Kitchens and space for families | Beds sold individually for groups, and breakfast and a bar on site |
| Short-term rentals | Whole-house space for a group | No cleaning fee, no house rules to read and a ski room |
| Down-valley hotels | Lower rates, a drive from the lifts | Walking distance to the lifts and the town |
| Hostels and shared housing | Lowest price | Private rooms, a licensed bar and a staffed front desk |
The table describes categories, not individual properties. Nightly rates change daily and are not quoted.
Strengths, gaps and exposures
| Strengths | Weaknesses |
|---|---|
| Two products under one roof: bed and private room | Six loss-making months in Year 1 and rent cover of 1.04 times |
| An owner-operator who has run a ski-town lodge | One brand-new name in a crowded town |
| Percentage rent that falls when revenue falls | Staff housing is a fixed year-round cost |
| Equity covers 86% of the funding | No second manager with authority over the whole house until month 37 |
| Opportunities | Threats |
|---|---|
| Summer festival and conference weekends | A poor snow year |
| Group buyouts in the quiet weeks | Dependence on online agents for most stays |
| Ski clubs, schools and teams booking direct | Rising wages and staff housing costs |
| Direct bookings from returning guests | Rule changes on rentals and lodging use |
Who Books a Bunk or a Room
Groups of friends and ski clubs
Four to eight people who split a bunk room or take two rooms for a long weekend. They are price-sensitive but book early, usually two to four months ahead, and they eat breakfast and drink at the bar.
Couples and families
They book a private room for three or four nights. They compare the lodge with a rented condo on the total cost of the stay and want a short walk to the lifts, a bathroom of their own and somewhere to dry boots.
Summer visitors
Festival, hiking and cycling guests book closer to the date and stay shorter. They arrive for specific weekends, which is why June, September and October carry the Year 1 buyout dates.
Groups buying the whole house
Wedding parties, ski teams and company retreats pay a flat $24,000 for three nights, including breakfast and a welcome dinner. The guest services and reservations manager sells and runs this line, with Anna taking the enquiries from wedding planners and teams.
| Guest type | Share of Year 1 room and bed nights |
|---|---|
| Friends and ski clubs | 34% |
| Couples and families | 30% |
| Summer visitors | 20% |
| Event crews and visiting workers | 8% |
| Other | 8% |
The shares are the plan's own figures. They are not survey results.
Filling the Beds
How rates move through the year
The lodge sets a rate for each month of Year 1 and applies them to the nights that remain after buyouts. Occupancy is the share of those nights sold.
| Month | Private-room occupancy | Room rate | Bed occupancy | Bed rate |
|---|---|---|---|---|
| January | 54% | $475 | 56% | $140 |
| February | 64% | $497 | 66% | $146 |
| March | 70% | $508 | 72% | $150 |
| April | 40% | $243 | 40% | $74 |
| May | 26% | $167 | 24% | $57 |
| June | 55% | $319 | 56% | $91 |
| July | 68% | $367 | 70% | $102 |
| August | 64% | $351 | 66% | $98 |
| September | 50% | $275 | 50% | $78 |
| October | 30% | $184 | 28% | $61 |
| November | 26% | $173 | 24% | $59 |
| December | 64% | $632 | 66% | $170 |
December's rate is an average for the month. The holiday weeks sell for more and the first two weeks for less.
Five years of occupancy and rate
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Private-room occupancy | 51.1% | 58.7% | 62.4% | 64.5% | 64.5% |
| Average room rate | $389 | $403 | $418 | $433 | $448 |
| Revenue per available room | $199 | $236 | $260 | $279 | $289 |
| Bunk-bed occupancy | 51.7% | 59.4% | 63.0% | 64.9% | 64.9% |
| Average bed rate | $113 | $117 | $121 | $126 | $130 |
| Buyouts | 3 | 5 | 7 | 8 | 8 |
Occupancy rises as the lodge builds a returning-guest base and starts selling buyouts in the shoulder weeks. It flattens near 65% because March reaches an 84% ceiling in Years 4 and 5 and the slow months stay slow.
Direct and agent bookings
About 60% of private-room stays and 70% of bed stays come through online travel agents in Year 1, with a direct share of 40% and 30%. The lodge pays the agents' commission on every one. By Year 3 the direct share is 45% for rooms and 35% for beds, through a booking engine on the lodge's own site, an email list and group sales. The plan keeps the commission percentages flat, which is cautious.
Rules at the desk
Holiday weeks carry a three-night minimum, and the lodge takes a 25% deposit at booking, with holiday weeks and ski-club blocks sold in the autumn before opening. Bunk-room beds are sold singly, and a lodge host places mixed groups so that solo travellers share with other solo travellers. Cancellations are refundable until 21 days before arrival in winter and 7 days in the shoulders, and group buyouts take a 50% deposit.
Where Bookings Come From
What the Year 1 budget buys
The operating marketing budget is $84,000, 4.3% of Year 1 revenue, on top of $55,000 of launch spend. Year 1 produces about 2,240 stays, of which about 750 are direct bookings. Marketing therefore costs about $112 per direct booking, or $185 with the launch included. The agent bookings carry their own cost in direct costs.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Paid search and metasearch | $28,000 | Searches for lodging near the lifts; about 360 direct stays |
| Ski clubs, schools and group partners | $14,000 | Direct deals for blocks of beds; about 150 stays |
| Online-agent listing promotion | $11,000 | Higher placement on the agent sites, with stays counted in the agent share |
| Creators and press | $12,000 | Photography refresh and invited visits; about 90 stays |
| Local events and sponsorship | $10,000 | Presence at festival weekends; about 60 stays |
| Website, email and returning-guest offers | $9,000 | A list that grows from launch; about 90 stays |
Launch spend
The $55,000 launch budget covers photography and video ($14,000), a new website and booking engine ($16,000), creator visits and launch press ($9,000), mailers to ski clubs and schools ($7,000) and signage and an opening weekend ($9,000).
Marketing milestones
- December 2026: website and booking engine live, bookings open for January.
- March 2027: the first ski club books a repeat block.
- June 2027: first whole-lodge buyout.
- December 2027: holiday weeks sold out by October, and the returning-guest list sends its first rebooking offer.
Running the House
A working day
A housekeeping team starts at 8:30 a.m., clears checkouts first and turns rooms by 3 p.m. The front desk is staffed from 7 a.m. to 10 p.m. in winter, and the night host takes over from 10 p.m. The café opens at 7 a.m. for breakfast, runs coffee through the afternoon and becomes the bar from 4 p.m. The ski room is open all day, and the maintenance technician works two days a week plus on call.
Who is on the clock
Seasonal housekeepers, front desk hosts and café staff are hired for the months they are needed. Payroll counts for Year 1 are:
| Month | People on payroll | Month | People on payroll |
|---|---|---|---|
| January | 11.5 | July | 10.5 |
| February | 11.5 | August | 9.5 |
| March | 11.5 | September | 8.5 |
| April | 8.5 | October | 6.5 |
| May | 6.5 | November | 6.5 |
| June | 8.5 | December | 11.5 |
Staff housing
Most seasonal workers need somewhere to live, and the housing market in the valley does not supply it. The county housing authority lists its seasonal apartments as sold out for the season it describes, and the ski company says its own beds cover roughly 20% of its employees. The lodge therefore leases three two-bedroom units down valley at $154,800 a year and rents eight beds to staff at $775 a month each. Staff pay only while they work: 45 seasonal person-months and two year-round staff make 69 paid bed-months, or $53,475. The net cost is about $101,000 a year, and the lease runs all twelve months, including the months when most seasonal staff are off payroll.
The bunk rooms overnight
The night host is on site from 10 p.m. to 6 a.m. five nights a week, and the general manager and the guest services manager each cover one night. Bunk-room beds are assigned at check-in against photo identification, lockers lock with the room key, quiet hours start at 11 p.m., the bar closes at 11 p.m., and an incident log goes to the general manager each morning. Each bunk room has a fire-rated door and its own alarm, as the fire inspector requires.
Systems and suppliers
A property management system runs rates, the booking engine and the channel manager, linked to the smart locks and the point of sale. A commercial linen service collects and returns laundry. Food and drink come from regional wholesalers on weekly orders, and a ski shop on the same street supplies tuning and rental stock on commission.
Licences and cover
- Aspen business licence and lodging tax registration.
- A Colorado liquor licence for the bar, in a class counsel confirms, and a county food-service licence for the café.
- Fire and life-safety approval for the bunk rooms.
- Property, business interruption, general and innkeeper's liability, liquor liability, an umbrella layer and cyber insurance, budgeted at $58,000 in Year 1, plus workers' compensation inside payroll on-costs.
- Written house rules and a guest agreement for every bunk-room booking.
Anna and the Team
Anna Kuznetsov, founder and general manager
Anna has nine years in hotels. She spent four at a 60-room hotel in the French Alps, rising from night auditor to front office manager. She then ran a 32-room independent lodge in a Colorado ski town for five years, with 11 seasonal staff and a bar. Her $272,000 comes from savings and the sale of a condominium. She draws a $98,000 salary.
What Anna has not done yet
Anna has not operated in Aspen before, has not raised money from outside investors and has no formal revenue-management training. The plan covers the gaps with a revenue consultant on a first-year retainer inside professional fees, a quarterly call with the retired hotel operator among the investors and a booking-pace report to all investors each month.
A week without Anna
The guest services and reservations manager runs the house for routine decisions during short absences. Spending, hiring and lender or landlord matters wait for Anna. The assistant general manager, hired in month 37, is the first second person with authority over the whole house.
Reporting to the investors
The investors receive monthly booking-pace reports, quarterly accounts and an annual budget. Distributions begin in Year 3 and are paid pro rata to units. The bank loan carries a 1.25x debt service cover covenant, tested from Year 2, and quarterly accounts. In the slow-winter case the investors have signed a $150,000 standby commitment and the bank has agreed a waiver for Years 1 and 2.
Advisers on call
A hospitality accountant reviews the monthly numbers in Year 1. The lodge belongs to the local chamber and the state lodging association and uses their guidance on rules for employers.
The Lodge in Numbers
The model covers five years, monthly in Year 1 and by year after that. The funding and the operating figures come first, because a lodge with six loss-making months a year is judged on whether its reserve, its rent and its loan terms can carry it through them.
Funding the build-out and the first winter
| Use of funds | Amount |
|---|---|
| Contractor build-out: 14 en-suite rooms, bunk rooms, lounge and café | $560,000 |
| Construction contingency (about 12% of build-out) | $65,000 |
| Beds, bunks, linens, furniture and ski-room boot dryers | $150,000 |
| Café kitchen, bar and cold storage | $75,000 |
| Smart locks, wifi, property system and point of sale | $32,000 |
| Lodging, liquor, food service and fire permits | $22,000 |
| Lease negotiation, LLC and investor documents, architect, permit drawings | $75,000 |
| Launch: photography, website, creators, ski-club mailers | $55,000 |
| Pre-opening hiring, training and staff housing set-up (Nov-Dec 2026) | $78,000 |
| Cash reserve for the spring and autumn shoulder seasons | $280,000 |
| Total uses | $1,392,000 |
| Source of funds | Amount |
|---|---|
| Anna Kuznetsov's savings and condominium sale proceeds | $272,000 |
| Six investors (LLC units, none above 20%) | $920,000 |
| Bank furnishings and equipment loan | $200,000 |
| Total sources | $1,392,000 |
Anna puts in $272,000 (20% of the total), six investors put in $920,000 (66%) as units in the LLC, and a bank lends $200,000 (14%) against the furnishings, kitchen and technology, which cost $257,000, so the loan is 78% of that collateral. The loan is set at 9.75% over five years, interest-only for the first 12 months. The rate illustrates the structure and is not a quoted lending rate. The $560,000 contractor build-out is about $62 a square foot, with a $65,000 contingency of roughly 12%. No contractor has bid on this example, so the figure is an estimate to be replaced by a bid before anyone signs. The $280,000 reserve is sized from the monthly model: the lowest month-end balance in Year 1 is about $163,000 in November, roughly one month of operating costs, and the slow-winter case below tests it. Equity totals $1,192,000. Anna holds 23% of the units and the investors 77%, with no single investor above 20%.
What the figures rest on
- Capacity is 14 private rooms and 24 bunk-room beds in three rooms of eight, which gives 5,110 room-nights and 8,760 bed-nights a year before buyouts. Year 1 private rooms average 51.1% occupancy at $389 a night, a revenue per available room of $199. Bunk beds average 51.7% at $113. The month-by-month figures are in the sales plan.
- Occupancy rises by 8, 12, 14 and 14 percentage points on the Year 1 pattern in Years 2 to 5, with about 60% of that lift in the months that start below 33%. March is capped at 84% and reaches the cap in Years 4 and 5. Rates rise 3.5% a year. Private rooms reach 62.4% at $418 in Year 3 and 64.5% at $448 in Year 5. Beds reach 63.0% and 64.9%.
- December to March produces 57% of Year 1 room and bed revenue. November is the lowest month at $45,766 of total revenue, against $303,625 in December.
- A private room holds 2.1 guests on average, so Year 1 produces about 9,760 guest-nights across rooms and beds. Each guest-night adds $35 of café and bar spending and $6.50 of ski-room, rental-commission and retail income, both rising 3% a year. Café items carry a 30% direct cost and retail 45%.
- About 60% of private-room stays and 70% of bunk-bed stays come through online travel agents at a 15% to 16% commission. With the linen service, card fees and breakfast supplies, direct costs run at 20% of room revenue and 23% of bed revenue. Stays average 3.3 nights in rooms and 3.0 in beds, which gives about 2,240 stays and 750 direct bookings in Year 1. The direct share is set to reach 45% for rooms and 35% for beds by Year 3, but the cost percentages are held flat.
- Whole-lodge buyouts are priced at a flat $24,000 for three nights, including breakfast and a welcome dinner. Year 1 has three (June, September and October), then 5, 7, 8 and 8. The price rises 3% a year. The nights come out of room and bed availability in the months they fall, so they are not counted twice. The guest services and reservations manager sells and runs them; there is no separate sales hire.
- The 9,000-square-foot building is on a triple-net lease. Base rent is $240,000 in Year 1 (about $27 a square foot), rising 3% a year. On top come percentage rent of 4% of total revenue ($78,673 in Year 1) and $54,000 of property tax, common-area and building insurance pass-throughs. Occupancy cost is $372,673 in Year 1, 18.9% of revenue and about $41 a square foot. Earnings before rent cover it 1.04 times in Year 1, 1.49 times in Year 2 and 1.71 times in Year 3. Year 1 is the weak year because the lodge is still ramping. The landlord takes a guarantee from Anna in place of a cash deposit and consents in writing to the bank's lien on the furnishings. No comparable Aspen lease was available to check these rents against.
- Year-round staff are the general manager, the guest services and reservations manager, a night host, the head housekeeper and the café lead. They carry 27% on-costs for payroll taxes, workers' compensation, health cover, Colorado paid-leave premiums and sick leave. Seasonal hourly staff carry 24%, and the part-time technician 15%. The seasonal rows in the personnel table show a full-year equivalent: $47,800 for housekeepers (about $23 an hour), $45,800 for front desk hosts ($22) and $43,700 for café and bar staff ($21), paid only for the months worked. Pay raises of 3% a year are charged as a separate line from Year 2.
- Staffing swings with the calendar. From December to March the lodge has 11.5 people on payroll: five year-round staff, the half-time technician and six seasonal staff. In October and November it has 6.5. The night host is on site every night, so the 24-bed bunk rooms and the bar are never left to one daytime employee. The seasonal pattern repeats every year.
- Three two-bedroom units down valley are leased for staff at $4,300 a month each, $154,800 a year, and eight beds are rented to staff at $775 a month. Staff pay only while they are employed: the 45 seasonal person-months and two year-round staff make 69 paid bed-months, or $53,475, which leaves a net cost of about $101,000. These rents could not be checked against a current source. The county housing authority lists its seasonal apartments as sold out, and Aspen One says its 1,300-plus beds cover roughly 20% of its employees, so a small lodge cannot count on shared housing.
- Marketing is $84,000 in Year 1 on top of $55,000 of launch spend. Against about 750 direct bookings that is $112 a booking from the operating budget and $185 with launch costs included. Year 3 spend of $90,000 against about 1,020 direct bookings is about $88.
- Insurance of $58,000 covers property, business interruption, general and innkeeper's liability, liquor liability, an umbrella layer and cyber cover. No quote has been obtained. Utilities of $56,000 are about $6.20 a square foot. Professional fees of $30,000 cover accounting, legal work, a first-year revenue consultant and payroll support. The furniture and equipment replacement reserve is 2% of revenue in Year 1, because everything is new, 3.5% in Year 2 and 4% from Year 3.
- The fit-out follows a lease signed in July 2026, a building permit for interior alterations issued by September and a 14-week construction schedule from October. The building already has lodging use, so no change of use is needed. If the permit slips a month, the January revenue of $207,350 is the amount at risk, and the work is staged so that the bunk rooms and lounge finish first.
- Advance bookings build before opening: a 25% deposit at booking, with holiday weeks and ski-club blocks sold in the autumn. The lodge reports booking pace to the bank and the investors every month from October 2026. The model does not count the deposits as early cash.
- City lodging tax and sales tax are collected from guests and remitted, so they sit outside revenue. Receivables average 4 days: guests pay at booking or on arrival, and online agents pay out soon after check-in. Income tax is charged at the 21% federal and 4.4% Colorado corporate rates, with the Year 1 operating loss of $104,608 carried forward. The start-up costs are not deducted in the tax line. An LLC normally passes profit through to its members, so corporate rates are a cautious placeholder.
- The bank sets a debt service cover covenant of 1.25x, tested from Year 2, with Year 1 interest-only. Distributions of $50,000, $90,000 and $130,000 are paid in Years 3 to 5, pro rata to units, only from cash the model shows the lodge can spare. The loan is repaid in full by the end of Year 5. Investors have no redemption right. Their exit is a sale of the operating business or the units, or a lease assignment with the landlord's consent, and the plan does not forecast one.
Where the money comes from
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Private rooms | $990,178 | $1,158,085 | $1,254,265 | $1,331,065 | $1,377,652 |
| Bunk-room beds | $499,614 | $583,125 | $631,035 | $666,849 | $690,188 |
| Café, bar and breakfast | $341,585 | $397,545 | $427,510 | $450,329 | $463,839 |
| Ski room, rental commissions and retail | $63,437 | $73,830 | $79,395 | $83,632 | $86,141 |
| Group buyouts and private events | $72,000 | $123,600 | $178,231 | $209,804 | $216,098 |
| Total revenue | $1,966,814 | $2,336,185 | $2,570,436 | $2,741,679 | $2,833,918 |
| Growth on prior year | – | 19% | 10% | 7% | 3% |
Private rooms earn 50.3% of Year 1 revenue and bunk beds 25.4%, so lodging is 75.7% of the total. The café and bar take 17.4%, buyouts 3.7% and the ski room 3.2%. Buyouts grow fastest, from $72,000 to $216,098 by Year 5, because they sell the weeks that individual travellers leave empty.
Year 1, month by month
| Month | Private rooms | Bunk-room beds | Café, bar and breakfast | Ski room, rental commissions and retail | Group buyouts and private events | Total revenue | EBITDA |
|---|---|---|---|---|---|---|---|
| Jan 2027 | $111,321 | $58,330 | $31,794 | $5,905 | $0 | $207,350 | $34,778 |
| Feb 2027 | $124,687 | $64,754 | $33,989 | $6,312 | $0 | $229,742 | $52,017 |
| Mar 2027 | $154,330 | $80,352 | $41,104 | $7,634 | $0 | $283,420 | $93,343 |
| Apr 2027 | $40,824 | $21,312 | $22,428 | $4,165 | $0 | $88,729 | ($56,545) |
| May 2027 | $18,844 | $10,178 | $14,571 | $2,706 | $0 | $46,299 | ($89,211) |
| Jun 2027 | $66,320 | $33,022 | $27,993 | $5,199 | $24,000 | $156,534 | ($4,344) |
| Jul 2027 | $108,309 | $53,122 | $39,918 | $7,413 | $0 | $208,762 | $35,865 |
| Aug 2027 | $97,494 | $48,122 | $37,618 | $6,986 | $0 | $190,220 | $21,590 |
| Sep 2027 | $51,975 | $25,272 | $25,232 | $4,686 | $24,000 | $131,165 | ($23,875) |
| Oct 2027 | $21,638 | $11,478 | $15,253 | $2,833 | $24,000 | $75,202 | ($66,960) |
| Nov 2027 | $18,892 | $10,195 | $14,067 | $2,612 | $0 | $45,766 | ($89,622) |
| Dec 2027 | $175,544 | $83,477 | $37,618 | $6,986 | $0 | $303,625 | $108,898 |
Revenue runs from $45,766 in November to $303,625 in December, and December to March together bring in 52% of the year. Operating profit is positive in six months (January to March, July, August and December) and negative in April, May, June, September, October and November, where the six losses add up to $330,557. June is a small loss of $4,344. The engine spreads percentage rent evenly over the year, so the winter months look a little better, and the slow months a little worse, than a lease billed on actual monthly revenue would show. The lowest month-end cash balance is about $163,000, in November, after allowing for the 4 days guests take to pay.
Who is on the clock
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and general manager | $98,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Guest services and reservations manager | $68,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Night host (overnight, bunk rooms and bar close) | $44,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Head housekeeper | $54,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Café lead | $58,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Maintenance technician (part time) | $38,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Seasonal housekeepers | $47,800 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Seasonal front desk hosts | $45,800 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Seasonal café and bar staff | $43,700 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Assistant general manager | $74,000 | Month 37 | – | – | – | 1 | 1 |
| Total payroll incl. on-costs | $664,597 | $664,597 | $664,597 | $758,577 | $758,577 |
Five year-round staff are on payroll from opening: Anna, the guest services and reservations manager, a night host, the head housekeeper and the café lead, together with a half-time maintenance technician. Seasonal housekeepers, front desk hosts and café staff are paid only for the months they work. The seasonal rows show 1 as a role marker; each has two people from December to March. The assistant general manager joins in month 37, so that a second person holds authority over the whole house. Before then the guest services manager covers Anna's days off for routine decisions only. Anna's $98,000 salary is already in payroll. December headcount is 11 full-time equivalents in Years 1 to 3 and 12 in Years 4 and 5, plus the half-time technician.
Earnings by year
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,966,814 | $2,336,185 | $2,570,436 | $2,741,679 | $2,833,918 |
| Direct costs (booking commissions, linen service, card fees, food and retail cost) | ($452,609) | ($537,610) | ($591,516) | ($630,923) | ($652,149) |
| Gross profit | $1,514,205 | $1,798,575 | $1,978,920 | $2,110,756 | $2,181,769 |
| Payroll incl. on-costs | ($664,597) | ($664,597) | ($664,597) | ($758,577) | ($758,577) |
| Rent | ($240,000) | ($247,200) | ($254,600) | ($262,200) | ($270,100) |
| Utilities | ($56,000) | ($58,000) | ($60,300) | ($62,700) | ($65,200) |
| Marketing | ($84,000) | ($87,000) | ($90,000) | ($93,000) | ($96,000) |
| Insurance | ($58,000) | ($61,000) | ($64,000) | ($67,000) | ($70,000) |
| Professional fees | ($30,000) | ($31,000) | ($32,000) | ($33,000) | ($34,000) |
| Software subscriptions | ($24,000) | ($25,000) | ($26,000) | ($27,000) | ($28,000) |
| Staff housing: three leased two-bedroom units down valley, net of staff contributions | ($101,000) | ($104,500) | ($108,200) | ($112,000) | ($115,900) |
| Property tax, CAM and building insurance pass-throughs (triple-net) | ($54,000) | ($55,900) | ($57,900) | ($59,900) | ($62,000) |
| Percentage rent (4% of total revenue) | ($78,673) | ($93,447) | ($102,817) | ($109,667) | ($113,357) |
| Repairs, snow removal and grounds | ($38,000) | ($41,000) | ($44,000) | ($47,000) | ($50,000) |
| Seasonal recruiting, onboarding and uniforms | ($11,000) | ($11,500) | ($12,000) | ($12,500) | ($13,000) |
| Licence renewals, inspections and dues | ($7,000) | ($7,200) | ($7,400) | ($7,600) | ($7,800) |
| Phones, office and guest supplies | ($9,000) | ($9,500) | ($10,000) | ($10,500) | ($11,000) |
| Furniture, mattress and equipment replacement reserve (2% to 4% of revenue) | ($39,000) | ($82,000) | ($103,000) | ($110,000) | ($113,000) |
| Bad debt and chargebacks | ($4,000) | ($5,200) | ($6,200) | ($6,900) | ($7,400) |
| Annual pay raises (3% a year) | $0 | ($19,938) | ($40,474) | ($70,341) | ($95,208) |
| EBITDA | $15,935 | $194,593 | $295,431 | $260,871 | $271,226 |
| Depreciation | ($101,043) | ($101,043) | ($101,043) | ($101,043) | ($101,043) |
| Interest | ($19,500) | ($17,613) | ($13,232) | ($8,403) | ($3,082) |
| Income tax | $0 | $0 | ($37,322) | ($37,063) | ($40,900) |
| Net income before start-up costs | ($104,608) | $75,937 | $143,835 | $114,362 | $126,202 |
| Start-up costs expensed at opening (legal, permits, launch marketing, pre-opening staff) | ($230,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($334,608) | $75,937 | $143,835 | $114,362 | $126,202 |
Year 1 operating profit (EBITDA) is $15,935, a 0.8% margin. Depreciation of $101,043 and interest of $19,500 turn that into a loss of $104,608 before start-up costs, and the $230,000 of start-up costs expensed at opening bring the Year 1 loss to $334,608. Year 2 is the first profitable year at $75,937, with no income tax because the Year 1 operating loss is carried forward. Year 3 has the widest margin, 11.5% at EBITDA, because payroll stays at its opening level until the assistant general manager joins in month 37. Year 4 falls to 9.5% and Year 5 is 9.6%, as the extra manager and pay raises of $70,341 and $95,208 take effect. Revenue growth slows from 19% in Year 2 to 3% in Year 5 as occupancy settles near 65%.
Cash through the seasons
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($255,119) | $172,932 | $242,310 | $213,528 | $226,234 |
| Fit-out and equipment | ($882,000) | $0 | $0 | $0 | $0 |
| Funding received | $1,392,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | ($42,969) | ($47,351) | ($52,180) | ($57,501) |
| Owner distributions | $0 | $0 | ($50,000) | ($90,000) | ($130,000) |
| Net change in cash | $254,881 | $129,963 | $144,960 | $71,349 | $38,733 |
| Closing cash | $254,881 | $384,843 | $529,803 | $601,151 | $639,885 |
Closing cash is $254,881 at the end of Year 1, after $882,000 of fit-out and equipment and $255,119 of cash used in operations, start-up costs included. It rises to $639,885 by Year 5 while the $200,000 loan is repaid in full and $270,000 is distributed. Year-end balances hide the in-year trough, which is the November figure in the monthly note.
Balance sheet at each year end
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $254,881 | $384,843 | $529,803 | $601,151 | $639,885 |
| Accounts receivable | $21,554 | $25,602 | $28,169 | $30,046 | $31,057 |
| Fit-out and equipment (net) | $780,957 | $679,914 | $578,871 | $477,829 | $376,786 |
| Total assets | $1,057,392 | $1,090,359 | $1,136,843 | $1,109,026 | $1,047,727 |
| Bank loan | $200,000 | $157,031 | $109,680 | $57,501 | $0 |
| Paid-in capital | $1,192,000 | $1,192,000 | $1,192,000 | $1,192,000 | $1,192,000 |
| Retained earnings | ($334,608) | ($258,672) | ($164,837) | ($140,475) | ($144,273) |
| Total liabilities and equity | $1,057,392 | $1,090,359 | $1,136,843 | $1,109,026 | $1,047,727 |
Margins, rent cover and loan cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | 0.8% | 8.3% | 11.5% | 9.5% | 9.6% |
| Net margin (before start-up costs) | -5.3% | 3.3% | 5.6% | 4.2% | 4.5% |
| Payroll incl. pay raises as share of revenue | 34% | 29% | 27% | 30% | 30% |
| Revenue per full-time equivalent at year end | $171,027 | $203,147 | $223,516 | $219,334 | $226,713 |
| Average monthly revenue | $163,901 | $194,682 | $214,203 | $228,473 | $236,160 |
| Monthly revenue needed to cover operating costs | $162,176 | $173,619 | $182,225 | $200,236 | $206,802 |
| Debt service cover (EBITDA / interest + principal) | 0.8x | 3.2x | 4.9x | 4.3x | 4.5x |
Year 1 averages $163,901 of revenue a month against $162,176 needed to cover operating costs, so the year clears them by almost nothing and six months lose money. Year 2 averages $194,682 against $173,619, and Year 3 $214,203 against $182,225. Debt service cover is 0.8x in Year 1, because EBITDA of $15,935 is below the $19,500 of interest, then 3.2x in Year 2 and 4.9x in Year 3. A 1.25x covenant is tested from Year 2, and the bank is told in advance that Year 1 sits below 1.0x. Four winter months supply 52% of Year 1 revenue, so a poor December to March moves the annual result more than any cost line.
A slow winter: revenue 20% lower
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,573,451 | $1,868,948 | $2,056,349 | $2,193,343 | $2,267,134 |
| Net income before start-up costs | ($214,054) | ($60,535) | $26,563 | $83,730 | $96,356 |
| Net income after start-up costs | ($444,054) | ($60,535) | $26,563 | $83,730 | $96,356 |
| Closing cash | $149,746 | $144,046 | $222,248 | $353,340 | $492,429 |
This case cuts every revenue line by 20% in every year. The response: the assistant general manager is dropped; seasonal housekeepers, front desk hosts and café staff fall from two to one in the months when two are on; marketing is cut 20%; Anna takes a 20% pay cut, from $98,000 to $78,400; one of the three staff housing units is given up; the replacement reserve is halved; repairs fall 20% and utilities 8%; no distributions are paid; and percentage rent falls with revenue under the lease. With those steps the lodge loses $214,054 before start-up costs in Year 1 and $60,535 in Year 2, then earns small profits from Year 3. Year-end cash never falls below $144,046, at the end of Year 2, and equity ends Year 1 at $747,946. Year-end figures flatter the position, because December is the cash peak. The lowest Year 1 month-end balance is about $85,000 in November. The engine spreads Years 2 to 5 evenly, so the later troughs are estimates that apply Year 1's December-to-November swing of about $77,000: roughly $67,000 in November of Year 2 and $145,000 in Year 3. Debt service cover is negative in Year 1, 0.96x in Year 2 and 2.3x in Year 3, so the 1.25x covenant is met only from Year 3. The lodge would ask the bank for a covenant waiver for Years 1 and 2 before drawing the loan, and the investors would sign a standby commitment of $150,000 in units or subordinated notes, called if month-end cash falls below $75,000. The estimated Year 2 trough would call it. Without the response, and with only percentage rent falling, cash would turn negative in November of Year 1 and the year would close $27,915 overdrawn. Service is thinner in the response case: one person fewer on each winter shift is a visible cut.
Sources
- Aspen One, Housing information: over 1,300 beds, enough for approximately 20% of employees.
- Aspen/Pitkin County Housing Authority, Seasonal rentals: seasonal apartments listed as sold out; the page does not publish a current rent.
- City of Aspen, Sales and lodging tax FAQ: the city lodging tax is 2.0%, collected and remitted by the person renting out the accommodation. This is the city tax only.
- Colorado Department of Revenue, Corporate income tax guide: C corporation rate of 4.4% for tax year 2025 (4.25% for 2024).
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