Hotel Valuation and Feasibilities Studies
For owners or developers, the value of a hotel property is important. The price at which one could sell a property, or what level of investment should be committed to developing a new hotel, are key questions. Answering them requires an understanding of what drives the market value of a hotel. However hotels are unique in that their value mostly depends on their ability to generate cash flows from operations on a daily basis. This creates complexity and uncertainty when attempting to forecast future sales, expenses and cash flows.
This course examines the techniques and concepts used to estimate future lodging demand and supply, and related operating expenses. It also addresses the study of the environment, especially of its cyclical behavior, and of how it relates to supply and demand. Forecasting operating cash flows, capital budgeting and selected valuation techniques are presented and applied to sample hotels. Methods for investment analysis and their application to feasibility studies are also applied.
Price : €2,300 (excl. tax)
|Duration:||2 days and a half|
|Date:||March 21, 2016|
|Location:||CNIT Paris La Défense|
ESSEC Hospitality Executive Education - Participants Testimonials - Finance & Real Estate
Nicolas Graf is on the faculty of ESSEC business school in Paris, where he teaches strategy and real estate finance. He received his Ph.D. from Virginia Polytechnic Institute and State University, with a concentration in corporate finance and strategic management and his MBA and bachelor’s degree from the Ecole hôtelière de Lausanne. Prior to his teaching and research, Dr. Graf spent several years in operations, managing individual restaurants in Switzerland and working in full-service hotels in the US. As a scholar, his research focuses on competitive strategy, product development and franchise systems in service industries. He has published in the International Journal of Hospitality Management, the Real Estate Finance Journal and the Journal of Retail and Leisure Property, as well as a number of applied articles in industry journals and newsletters. Dr. Graf has delivered executive education courses for hotel and restaurant companies in Asia, North and South America and Europe, and conducted consulting projects in the fields of asset management, strategic p...Topics include
- Using market studies for hotel valuation and feasibility studies.
- Demand, supply and cost drivers.
- Competitiveness and penetration rates.
- Competitive set characteristics.
- Forecasting revenue and expenses.
- Drivers of value.
- Market cycles.
- Valuation techniques – cost approach, sales comparison, income capitalization.
- Modeling uncertainty.
- The impact of financing.
Using real life case studies, the participants will develop an understanding of process and methodologies of hotel valuation and feasibility studies. Participants will also learn techniques to forecast revenue and expenses and be capable of estimating market value under uncertain market conditions.