Control of Hotel Real Estate
In most hotels, the physical ownership of the property is separated from the control and management of the hotel. Determining who manages the hotel on a day-to-day basis and whether or not the hotel should affiliate with a brand can make or break your property. Based on his many years of academic and real-world experience, Professor deRoos provides you with the tools and knowledge you need to navigate the options and make sound decisions for your hotel investment.
In this course, you will examine the most prevalent ownership structures in the industry and determine how these structures impact costs, benefits, and risk for both the owner and the hotel company. To evaluate decisions about affiliating with a brand, you will use an Excel-based tool to calculate the costs and benefits of converting an independent hotel to a franchise. Finally, you will examine the most commonly used control mechanism in the industry, the Hotel Management Agreement.
Who Should Take this Course?
This course is designed for managers and professionals with financial or operational responsibility of hotel real estate, investments, financing, or asset management including asset managers, and portfolio managers; professionals working for or aspiring to work for real estate funds, REITs, real estate developers, real estate advisory firms, and others affiliated with the creation and use of real estate as a financial asset, focused on hotel real estate investment projects.
Participants who complete this course will be able to...
List factors that influence decisions about who controls the daily operations of hotels and explain why these factors are influential
Examine the key attributes of contemporary hotel leases and their applicability in different international settings
Evaluate the financial costs and benefits of a proposed franchise agreement
Evaluate letters of intent for new management agreements
Analyze management agreements from the perspectives of owners and operators
Module 1 - Control of Hospitality Assets
- Who Controls the Operations?
- Choosing the Operator and Type of Branding
Module 2 - Negotiating Contemporary Hotel Franchise Agreements
- Evaluating Franchise Affiliation
- Franchises in the Future
Module 3 - Negotiating Contemporary Management Contracts
- Owner-Manager Relationships
- Negotiating the Contract--The Provisions of the Term Sheet
- Case Study--Crafting an Advantageous Management Agreement
- Prof Jan de Roos, Academic Director of the Cornell-Vin University Project, Cornell SC Johnson College of Business