Case Study · Financial Model

Iraq Hotel — LBO Model for Bank Financing

A hotel development project in Iraq that needed one thing from its financial model: a bank saying yes. We built the LBO model, did the market research behind every assumption, and supported the lender's questions until the financing conversation could move forward.

Industry

Hospitality · Real Estate

Model Type

LBO · Debt Financing

Purpose

Bank loan approval

Client

David

The Brief

A lender reads a model very differently than an investor does.

David came to us with a hotel development project in Iraq and a clear objective: secure a loan from the bank. That changes everything about how the model is built. An investor wants to see upside; a lender wants to see that the debt gets serviced in every realistic scenario.

The challenge was the market itself. Reliable data on hotel pricing, occupancy, and comparable properties in Iraq is thin. Before the model could be credible, the assumptions had to be — which meant serious research into the local hospitality market: what comparable hotels charge, what availability looks like, and what demand would realistically support.

We structured the engagement as an LBO model — the structure banks expect when debt is doing the heavy lifting — with a full debt schedule and repayment capacity analysis at its core.

How We Worked

The process, step by step.

Stage 01

Call

We started on a call with David to understand the project: the property, the financing target, the timeline, and what the bank would need to see. The scope was defined around the lender, not around us.

Stage 02

Market research

The hardest part of the project. We researched hotel pricing and availability across the region to ground every revenue assumption — average rates, occupancy benchmarks, seasonality, and comparable properties. In a niche market, assumptions are the model.

Stage 03

Model build

A full LBO structure: sources and uses, debt schedule, repayment capacity, and a 3-statement model underneath it, with scenarios stress-testing occupancy and pricing. Built so a credit officer could follow every number to its source.

Stage 04

Lender support

Financing conversations don't end at delivery. We worked with a consultant who met with the bank directly, and we stood behind the model — answering every question that came back about assumptions, structure, and repayment capacity.

What The Model Covered

Built to survive a credit committee.

Sources & uses

Where every dollar of the project comes from and where it goes — equity, debt, and project costs laid out cleanly.

Debt schedule

Drawdown, interest, amortization, and covenants — the section the bank actually reads first.

Revenue build-up

Room rates, occupancy ramp, and seasonality, each grounded in the market research rather than top-down guesses.

3-statement model

Income statement, balance sheet, and cash flow, fully linked, so the repayment story holds together end to end.

Scenario analysis

Base, conservative, and downside cases — demonstrating the loan stays serviceable even when assumptions get uncomfortable.

Research appendix

The market evidence behind the assumptions, documented so questions from the bank had ready answers.

Why there are no screenshots here

This engagement is confidential, so we don't publish the model file or its outputs. What we can show is how we worked — and we're happy to walk you through comparable work on a call.

Want to see the work in person?

Discuss your project and AL Anany will walk you through this project directly.

Discuss your project