Control of Hotel Real Estate
In most hotels, the physical ownership of the property is separated from the control and management of the hotel. This course explores the ways in which hotel investors separate ownership from control of the hotel and examines the two major decisions faced by owners--first, what are the benefits and costs of franchise affiliation? Second, under what conditions should an owner hire a professional operator?
Participants will learn how management contracts are negotiated and about the motivations of each negotiating party. They will learn to prepare term sheets from the perspectives of both owners and operators to provide insight into how to structure the most advantageous deal. This course also examines contemporary hotel leases prevalent around the world.
Who Should Take this Course?
This course is designed for -
- Managers and professionals in the hospitality industry with financial or operational responsibility for real estate, investments, or management contracts;
- General managers, asset managers, and others with asset management responsibilities;
- Business development professionals with branded operators who have professional interaction with owners;
- Lenders, investors, real estate professionals, and developers who seek entrance into the hospitality real estate market.
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
- Jan deRoos, Ph.D., Associate Professor and HVS International Professor of Finance and Real Estate , School of Hotel Administration, Cornell SC Johnson College of Business
Estimated Hours to Complete Course: 6.0
About the School of Hotel Administration at the Cornell SC Johnson College of Business
The School of Hotel Administration at the Cornell SC Johnson College of Business is shaping the global knowledge base for hospitality management through leadership in education, research, and industry advancement. Accredited by the Association to Advance Collegiate Schools of Business (AACSB), the school provides management instruction in the full range of hospitality disciplines, educating the next generation of leaders in the world's largest industry. Founded in 1922 as the nation's first collegiate course of study in hospitality management, the Cornell School of Hotel Administration is recognized as the world leader in its field.