For a hotel investment to be successful, you must first have accurate and reliable data about the critical aspects of the hotel operation, such as occupancy, revenue, expenses, and cash flows. But how do you generate these detailed forecasts? In this course, Cornell University professor Jan deRoos leads you through this analysis using the Hotel Valuation Software he developed with HVS International.
Starting with the market study, you will forecast hotel occupancies for new properties and for existing properties and calculate average daily rates using a variety of cutting-edge techniques. Using the occupancy data, you will then forecast hotel cash flows, respecting the fixed and variable revenue and cost structure of a hotel. At the end of this course, you'll estimate of the market value of the hotel, a critical component of any sound investment decision. Given that forecasts are only as accurate as the starting assumptions, you'll learn how to develop data to support your forecasts.
With step-by-step guidance and sophisticated software tools, you will walk away from this course with the skills necessary to conduct detailed forecasts and valuations for any hotel property.
You are required to have completed the following course or have equivalent experience before taking this course:
Financial Analysis of Hotel Investments
Key Course Takeaways
Perform a market study for a particular property
Forecast occupancy and average daily rates
Produce accurate forecasts of income and expenses
Use the income approach to produce an estimate of market value
Produce defensible and supportable estimates using the tools developed in this course
Professor, Nolan School of Hotel Administration, Cornell SC Johnson College of Business
Jan A. deRoos is the HVS Professor of Hotel Finance and Real Estate at the Cornell SC Johnson College of Business. He has devoted his career to teaching and research related to hospitality real estate, with a focus on the valuation, financing, development, and control of lodging, timeshare, and restaurant assets.
Professor deRoos has developed two online executive education programs for real estate professionals: one with a broad real estate industry perspective and a second that focuses on lodging. He co-developed a free web-based tool, the Hotel Valuation Software, with Stephen Rushmore of HVS International. His book on hotel management agreements, co-authored with the late James Eyster, is the seminal academic publication on the topic.
Prior to joining Cornell, Professor deRoos worked extensively in the hotel industry as a construction and engineering manager.
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.
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