Corporate Officer and Investor Perspectives

Catalog description

This course details the various processes involved in a hospitality real-estate investment. It addresses how potential investors determine the feasibility of a hospitality real-estate investment (market indicators, capital budgeting, and valuation methods). The topics include the various types of management agreements in use in the hospitality industry (franchising, management contracts, other types of affiliation, branding, and licensing), as well as the prevailing financing methods in the industry (mezzanine, recourse or non-recourse, and conduit loans). The course focuses on how investment and financing decisions can optimize firm value, the decision frameworks used to select various forms of financing, and hospitality asset valuations. The course also addresses the differing interests of the stakeholders involved in the investment process (owners/investors, financing entities or institutions, and operating companies).