A two dimensional axisymmetric quasi-neutral fluid model of an emissive hollow cathode that includes neutral xenon, single charge ions and electrons has been developed. The gas discharge is coupled with a thermal model of the cathode into a self-consistent generic model applicable to any hollow cathode design. An exhaustive description of the model assumptions and governing equations is given. Boundary conditions for both the gas discharge and thermal model are clearly specified as well. A new emissive sheath model that is valid for any emissive material and in both space charge and thermionic emission limited regimes is introduced. Then, setting the emitter temperature to an experimentally measured profile, we compare simulation results of the plasma model to measurements available in the literature for NASA NSTAR barium oxide cathode. Qualitative discrepancies between simulation results and measurements are noted in the cathode plume regarding the simulated plasma potential. Motivated by experimental evidence supporting the occurrence of ion acoustic instabilities in the cathode plume, an enhanced model of electron transport in the plume is presented and its consequences analyzed. Using the obtained plasma model, simulated quantities in the plume are qualitatively comparable with measurements. Inside the cathode, the simulated plasma density agrees well with measurements and is within the ±50 % experimental uncertainty associated with these measurements. A comparison of simulation results of the full coupled cathode model for the NASA NSTAR cathode with experimental measurements is presented in a companion paper, as well as a physical analysis of the cathode behavior and a parametric study of the influence of the operating point and key design choices.