Financial Analysis of Hotel Investments
A hotel’s real estate is one if its most valuable assets and it is essential to be able to accurately value this critical investment. This course uses practical and theoretically grounded tools of investment analysis and valuation to introduce participants to contemporary practices in lodging investments. Participants will learn to evaluate hotel investments and hotel financing decisions and structure deals that meet the needs of the owner, the operator, and the lender.
This course explores the multiple elements and factors involved in the hotel investment decision including the hotel owner-operator-lender partnership and the different ways each party will evaluate a real estate investment deal. This multi-party view will enable you to negotiate the most favorable agreement based on your priorities and requirements and evaluate alternatives. This course provides thorough coverage of how a deal is structured using debt and equity financing, and the impact of debt financing on equity returns.
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; and 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...
Explain the varied motivations of owners, operators, and lenders in pursuing real estate investments
Examine the different investment approaches taken by owners in the hotel industry
Estimate the return on investment and the return on equity for a prospective hotel investment
Estimate the value of a proposed hotel using a variety of methods
Analyze and evaluate investment projects from the perspective of owners, operators, and lenders
Size a mortgage that meets the needs of different partners
Make informed decisions about the relative attractiveness of hotel investments
- 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.