Valuing Hotel Intellectual Property and Structuring the Capital Stack
Accurately assessing the value of hotel intellectual property is a critical component of structuring the most advantageous deal. This course is designed to develop a high level of financial sophistication in valuing hotel management contracts and valuing franchise agreements in addition to valuing the real assets.
Participants will value the intellectual property rights created in management contracts and franchise agreements and learn how debt and equity capital markets are used to financially engineer enhancements in the value of the real estate. Participants will also learn how to determine the cost of mortgage loans, be introduced to the secondary mortgage market and lodging REIT structures, and learn how to calculate the returns to private real estate fund investors and sponsors. This course emphasizes the role of debt capital in creating value for equity and the role of public and private equity in modern real estate capital markets. Throughout the course, participants use sophisticated spreadsheet tools to support and quantify the analyses, all of which can be used to analyze real-life opportunities.
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...
Estimate the value of hotel management agreements and their impact on shareholder value
Estimate the value of franchise agreements and their impact on shareholder value
Calculate the true costs of loans, taking into account a wide range of possible fees and features
Calculate the cash flow "waterfall" that is part of the promote structure in a private equity fund
Model duration to clarify the timing of cash returns and determine the modified internal rates of return (IRR)
- 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.