Financial Analysis of Hotel Investments by fct29894

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                                                        Online Certificate Program
Hotel Real Estate Investments and Asset Management
               Six-course Certificate from Cornell University’s School of Hotel Administration

                                           SHA561 Financial Analysis of Hotel Investments
                                                       SHA562 Control of Hotel Real Estate
                         SHA563 Valuing Hotel Investments Through Effective Forecasting
                 SHA564 Valuing Hotel Intellectual Property and Structuring the Capital Stack
                                        SHA565 Developing an Asset Management Strategy
                                   SHA566 Achieving Hotel Asset Management Objectives
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Certificate in Hotel Real Estate Investments and Asset Management
A six-course certificate series from Cornell University’s School of Hotel Administration


                   Certificate Overview
                   Well-structured hotel real estate investments create value and provide benefits to all partners in a
                   deal: owners, management companies, and/or franchisees. Understanding the value of hotel real
                   estate investments and the dynamics of the financial and operational aspects of real estate invest-
                   ments, asset management, and management contracts is critical to the success of mid-level and
                   senior management in the hospitality and real estate industries.

                   This certificate series focuses on developing a comprehensive knowledge base and tool set that
                   enables you to fully understand the complex dynamics surrounding the hotel real estate and manage-
                   ment contracts from the point of view of the property owner, operator, and lender.
                   There are three central themes to this certificate series:

                   -The separation of real estate ownership and control as a way to increase value as vital to contemporary practice
                   -The valuation and financing of hotel real estate investments as a key competency for today’s decision makers
                   -Asset management - a legitimate and respected tool for value creation and value improvement

                   Who Should Take This Certificate?
                   This certificate series 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

                   Certificate Information
                   To earn the Certificate in Hotel Real Estate Investments and Asset Management, students must
                   complete the following six courses:
                   •	  SHA561 Financial Analysis of Hotel Investments
                   •	  SHA562 Control of Hotel Real Estate
                   •	  SHA563 Valuing Hotel Investments Through Effective Forecasting
                   •	  SHA564 Valuing Hotel Intellectual Property and Structuring the Capital Stack
                   •	  SHA565 Developing an Asset Management Strategy

                   Accreditation
                   Participants who successfully complete the five courses in the series receive a Certificate in
                   Hotel Real Estate Investments and Asset Management from Cornell University’s School of Hotel
                   Administration.




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SHA561 Financial Analysis of Hotel Investments                                      SHA562 Control of Hotel Real Estate


A hotel’s real estate is one if its most valuable assets and it is                  In most hotels, the physical ownership of the property is sepa-
essential to be able to accurately value this critical investment.                  rated from the control and management of the hotel. This course
This course uses practical and theoretically grounded tools of                      explores the ways in which hotel investors separate ownership
investment analysis and valuation to introduce participants to                      from control of the hotel and examines the two major decisions
contemporary practices in lodging investments. Participants will                    faced by owners: first, what are the benefits and costs of franchise
learn to evaluate hotel investments and hotel financing decisions                   affiliation? Second, under what conditions should an owner hire a
and structure deals that meet the needs of the owner, the operator,                 professional operator?
and the lender.
                                                                                    Participants will learn how management contracts are negotiated
This course explores the multiple elements and factors involved                     and about the motivations of each negotiating party. They will
in the hotel investment decision including the hotel owner-                         learn to prepare term sheets from the perspectives of both owners
operator-lender partnership and the different ways each party will                  and operators to provide insight into how to structure the most
evaluate a real estate investment deal. This multi-party view will                  advantageous deal. This course also examines contemporary hotel
enable you to negotiate the most favorable agreement based on                       leases prevalent around the world.
your priorities and requirements and evaluate alternatives. This
course provides thorough coverage of how a deal is structured                       Who Should Take This Course?
using debt and equity financing, and the impact of debt financing                   This course is designed for:
on equity returns.                                                                  •	   Managers and professionals in the hospitality industry with financial or
                                                                                         operational responsibility for real estate, investments, or management
                                                                                         contracts
Who Should Take This Course?                                                        •	   General managers, asset manager and others with asset management
This course is designed for:                                                             responsibilities
•	   Managers and professionals in the hospitality industry with financial or       •	   Business development professionals with branded operators who have
     operational responsibility for real estate, investments, or management              professional interaction with owners
     contracts                                                                      •	   Lenders, investors, real estate professionals, and developers who seek
•	   General managers, asset manager and others with asset management                    entrance into the hospitality real estate market
     responsibilities
•	   Business development professionals with branded operators who have             Course Format
     professional interaction with owners
•	   Lenders, investors, real estate professionals, and developers who seek         This course contains the following modules:
                                                                                    •	   Operating Agreement Choices and Trends
     entrance into the hospitality real estate market
                                                                                    •	   Negotiating Contemporary Hotel Franchise Agreements
                                                                                    •	   Negotiating Contemporary Management Contracts
Course Format
This course contains the following modules:                                         Benefits to Learner
     The Hotel Owner-Operator-Lender Partnership
•	
                                                                                    Participants who complete this course will be able to:
•	   Evaluating the Deal: How Owners, Operators, and Lenders Evaluate               •	   Explain the factors contributing to deciding who controls the daily opera-
     Proposed Projects                                                                   tions of hotels and why
•	   Structuring the Deal: Current Equity and Debt Financing Structures             •	   Describe the key attributes of contemporary hotel leases and their applicabil-
                                                                                         ity in different international settings
Benefits to Learner                                                                 •	   Evaluate a proposed franchise agreement
Participants who complete this course will be able to:                              •	   Assemble term sheets for new management contracts
•	   Explain the varied motivations of owners, operators, and lenders in pursuing   •	   Analyze management contracts from the perspective of owners and
     real-estate investments                                                             operators
•	   Analyze and evaluate investment projects from the perspective of owners,       Certificate Information
     operators, and lenders                                                         This course can be applied to the following certificate:
•	   Structure hotel investments that meet the needs of all parties                 •	   Hotel Real Estate Investments and Asset Management
•	   Make informed decisions about the attractiveness of hotel investments,
     especially the decision to invest equity in a hotel
                                                                                    Sponsoring School
Certificate Information                                                             Cornell University’s School of Hotel Administration
This course can be applied to the following certificate:
•	   Hotel Real Estate Investments and Asset Management


Sponsoring School
Cornell University’s School of Hotel Administration




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SHA563 Valuing Hotel Investments Through                                         SHA564 Valuing Hotel Intellectual Property and
Effective Forecasting                                                            Structuring the Capital Stack
Hotel investment opportunities cannot be properly evaluated                      Accurately assessing the value of hotel intellectual property is
without accurate forecasts of the revenues and expenses the                      a critical component of structuring the most advantageous deal.
property is expected to produce. This course builds expertise in                 This course is designed to develop a high level of financial
producing accurate forecasts of occupancy, average rates, cash                   sophistication in valuing hotel management contracts and valuing
flows and real estate value needed to support hotel investment                   franchise agreements in addition to valuing the real assets.
and lending decisions.
                                                                                 Participants will value the intellectual property rights created in
Participants will learn to accurately forecast hotel occupancies                 management contracts and franchise agreements and learn how
both for new properties and for existing properties facing                       debt and equity capital markets are used to financially engineer
significant new competition. They will forecast daily occupancy                  enhancements in the value of the real estate. Participants will also
rates using a variety of contemporary techniques and tools,                      learn how to determine the cost of mortgage loans, be introduced
forecast hotel cash flows respecting the fixed and variable                      to the secondary mortgage market and lodging REIT structures,
revenue and cost structure of a hotel. Participants will estimate                and learn how to calculate the returns to private real estate fund
the value of individual hotels, taking into account the impact of                investors and sponsors.
new properties on existing properties. Given that forecasts are
only as accurate as the starting assumptions, participants learn                 Who Should Take This Course?
how to develop and gather data to support all of these forecasts.                This course is designed for:
                                                                                 •	   Managers and professionals in the hospitality industry with financial or
                                                                                      operational responsibility for real estate, investments, or management
Who Should Take This Course?                                                          contracts
This course is designed for:                                                     •	   General managers, asset manager and others with asset management
•	   Managers and professionals in the hospitality industry with financial or         responsibilities
     operational responsibility for real estate, investments, or management      •	   Business development professionals with branded operators who have
     contracts                                                                        professional interaction with owners
•	   General managers, asset manager and others with asset management            •	   Lenders, investors, real estate professionals, and developers who seek
     responsibilities                                                                 entrance into the hospitality real estate market
•	   Business development professionals with branded operators who have
     professional interaction with owners                                        Course Format
•	   Lenders, investors, real estate professionals, and developers who seek
     entrance into the hospitality real estate market                            This course contains the following modules:
                                                                                 •	   Modeling and Valuing Management Contracts and Franchise Agreements
                                                                                 •	   Debt Financing
Course Format                                                                    •	   Equity Financing
This course contains the following modules:
•	   Forecasting Hotel Occupancy                                                 Benefits to Learner
•	   Forecasting Revenues and Expenses
•	   Valuation                                                                   Participants who complete this course will be able to:
                                                                                 •	   Estimate the value of management contracts and their impact on shareholder
                                                                                      value
Benefits to Learner
                                                                                 •	   Estimate the value of franchise agreements and their impact on shareholder
Participants who complete this course will be able to:                                value
•	   Perform a market study for a particular property                            •	   Explain how capital markets can be used to create value in the real estate
•	   Forecast occupancy and average daily rates
                                                                                 •	   Use the tools of modern finance to create value for equity via the specific
•	   Produce accurate forecasts of income and expenses                                use of debt instruments
•	   Use the income approach to produce an estimate of market value              •	   Explain the role of public equity and private equity in capital markets
•	   Produce defensible and supportable estimates using the tools developed in   •	   Use the tools of investment analysis to understand a ‘promote structure’ in a
     this course                                                                      private equity real estate fund

Certificate Information                                                          Certificate Information
This course can be applied to the following certificate:                         This course can be applied to the following certificate:
•	   Hotel Real Estate Investments and Asset Management                          •	   Hotel Real Estate Investments and Asset Management


Sponsoring School                                                                Sponsoring School
Cornell University’s School of Hotel Administration                              Cornell University’s School of Hotel Administration




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SHA565 Developing an Asset Management                                               SHA566 Achieving Hotel Asset Management
Strategy                                                                            Objectives

The hotel asset manager is responsible for managing lodging in-                     Hotel asset management is the responsibility of managing the
vestments to meet the specific objectives of ownership. The asset                   lodging investment to meet the specific objectives of ownership.
manager’s role in building value is analyzed at both the portfolio                  This course introduces the latest asset management techniques
and the property level. This course focuses on the importance of                    and provides a set of practical tools and tactics that owners and
developing a strategic vision for asset management, and for using                   asset managers can use to achieve their strategic objectives.
the latest asset management techniques in pursuit of that strategic
vision.                                                                             Participants will learn how to administer and renegotiate manage-
                                                                                    ment contracts, evaluate capital expenditures and manage their
Participants will examine the role of the asset manager in real                     execution, and monitor expenses to reduce costs. They will learn
estate portfolio management and learn how to develop a strategic                    how to benchmark a property’s revenue and expense performance
vision for asset management. They will learn how to create an as-                   against the market, perform asset risk analyses tailored to current
set management plan designed to accomplish long-term financial                      market conditions, and evaluate various refinancing opportunities
goals, create forecasts, and build models that analyze sell versus                  to reduce debt costs or free up capital for other investment
hold alternatives and make optimal recommendations consistent                       opportunities.
with the asset management strategy and plan.
                                                                                    Who Should Take This Course?
Who Should Take This Course?                                                        This course is designed for:
This course is designed for:                                                        •	   Managers and professionals in the hospitality industry with financial or
•	   Managers and professionals in the hospitality industry with financial or            operational responsibility for real estate, investments, or management
     operational responsibility for real estate, investments, or management              contracts
     contracts                                                                      •	   General managers, asset manager and others with asset management
•	   General managers, asset manager and others with asset management                    responsibilities
     responsibilities                                                               •	   Business development professionals with branded operators who have
•	   Business development professionals with branded operators who have                  professional interaction with owners
     professional interaction with owners                                           •	   Lenders, investors, real estate professionals, and developers who seek
•	   Lenders, investors, real estate professionals, and developers who seek              entrance into the hospitality real estate market
     entrance into the hospitality real estate market
                                                                                    Course Format
Course Format                                                                       This course contains the following modules:
This course contains the following modules:                                         •	   Asset Managing Hotel Management Contracts
•	   Portfolio Management                                                           •	   Managing Capital Expenditures
           •	   Why Real Estate in the Portfolio?                                   •	   Benchmarking Hotel Performance
           •	    Economics of Portfolio Management                                  •	   Risk Analysis and Refinancing
•	   Asset Management
           •	   The Asset Management Process                                        Benefits to Learner
           •	   Highest and Best Use Forecasting                                    Participants who complete this course will be able to:
           •	   Creating the Asset Management Plan                                  •	   Manage contract administration and contract renegotiation
•	   Sell Versus Hold Decisions                                                     •	   Make capital expenditure decisions and manage their execution
           •	   Sell v. Hold Strategies                                             •	   Use industry-standard benchmarking tools to enhance revenues and reduce
           •	   Selling and Holding                                                      costs
           •	   Making the Decision                                                 •	   Perform risk analysis designed to calibrate risk by magnifying revenue
                                                                                         enhancement and minimizing costs according to market conditions
Benefits to Learner                                                                 •	   Perform a refinancing analysis in order to reduce debt cost and to liberate
Participants who complete this course will be able to:                                   illiquid equity for more productive investments
•	   Analyze the asset manager’s role in building value at both the portfolio and
     the property level                                                             Certificate Information
•	   Develop a strategic vision for asset management                                This course can be applied to the following certificate:
•	   Create an asset management plan for a property’s long-term needs               •	   Hotel Real Estate Investments and Asset Management
•	   Model the optimal holding period and make recommendations on selling
     versus holding the asset
                                                                                    Sponsoring School
Certificate Information                                                             Cornell University’s School of Hotel Administration
This course can be applied to the following certificate:
•	   Hotel Real Estate Investments and Asset Management


Sponsoring School
Cornell University’s School of Hotel Administration




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