Hospitality Real Estate

Catalog description

Ultimately, hospitality enterprises are location-based businesses requiring the deployment of real estate. To understand this important concept, hospitality students need to understand real estate in a hospitality industry environment. Students in HM 482 complete projects including feasibility studies for proposed hotels where they evaluate the competition, project hotel supply by future year, including evaluating and quantifying future supply additions. Then, students project hotel demand by future year by market segment, including estimating growth and any induced demand, and they calculate fair share by future year for proposed hotels. Students estimate penetration ratios by future year by market segment for proposed hotels, until stabilization, calculate occupancy by future year for proposed hotels, until stabilization, and estimate Average Daily Rate (ADR) by future year for proposed hotels, including estimating inflation. Students develop detailed financial projections by future year for proposed hotels, estimate market value for proposed hotels by applying the Income Approach, Cost Approach, and Sales Comparison Approach, conduct a Reconciliation to conclude a single, final Market Value Estimate, and compare the estimated market value of proposed hotels to the estimated development cost to conclude feasibility.