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The ―Hospitality Business Valuation‖ Module will provide participants with the tools to effectively estimate the value of a hospitality property.
The emphasis is on hospitality property valuation methods—the cost approach, the sales comparison approach and various discounted cash-flow methods.
The course begins with an overview of how to estimate a hotel‘s ―fair share‖ of overnights and goes on to the details of estimating future cash flows using the structure of the USA (Uniform System of Accounts) to the selection of an appropriate discount rate for a discounted cashflow valuation.
The Module includes a case study application of the various techniques.
Acquired Knowledge & Skills
Explain how to value a hospitality property
Elaborate estimated future cash-flows of a hospitality property and select an appropriate cap or discount rate Competencies
Evaluate a hospitality property according to the: o Cost approach o Sales comparison approach o Discounted cash-flow approach Mindset
Explain the cost of capital of a hospitality property acquisition
Compare and contrast alternative methods of hospitality property evaluation