Financial Analysis of Hotel Investments

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Course Description PDF

Course Focus

A hotel’s real estate is one of its most valuable assets and it is essential to be able to accurately value this critical investment. To be successful, hotel investors must be able to determine the financial interests of those involved in any project: the owner, the operator, and the lender.

In this course, Professor deRoos demonstrates several analytical tools used by real estate professionals to evaluate hotel investments. You will explore how owners, operators, and lenders evaluate potential hotel projects. Using an Excel-based tool, you will estimate the return on investment and return on equity for a hotel investment.

Debt and equity financing are critical to every project and in this course, you will learn how to estimate the size of a mortgage loan given the lender's requirements. With real-world examples, practical tools, and opportunities to practice, you will develop the skills necessary to structure your own hotel real estate investments.

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.

Key Benefits

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

Topics Include

Module 1 - The Hotel Owner-Operator-Lender Partnership

  1. Partnering Owners, Operators, and Lenders
  2. Different Owners Have Different Reasons to Invest
  3. How Equity Plays the Game

Module 2 - Evaluating the Deal--How Owners, Operators, and Lenders Evaluate Proposed Projects

  1. How the Owner Evaluates the Project
  2. How the Operator and Lender Evaluate the Project
  3. Overview of Hotel Market Valuation Methodologies

Module 3 - Structuring the Deal--Current Equity and Debt Financing Structures

  1. Hotel Financing Cycle--Equity Financing
  2. Hotel Financing Cycle--Debt Financing
  3. Course Project--Investment Construction and Analysis

Faculty

Course Cost US$769
Hours to Complete Course: 6
This course is part of one or more online certificates:

Please choose from the following course start dates:

19 December 2018
02 January 2019
16 January 2019
13 February 2019
27 February 2019
13 March 2019
10 April 2019
24 April 2019
08 May 2019
05 June 2019
19 June 2019
03 July 2019
31 July 2019
14 August 2019
28 August 2019
25 September 2019
09 October 2019
23 October 2019
20 November 2019
04 December 2019
18 December 2019
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