Course Description

In a three-step process, students will perform a detailed analysis of the existing demand, competition and perform demand projections. On this basis, revenues and expenses are forecasted, providing an estimation of cash flows for the projection period. Students will learn to read and interpret STR data reports and will review some fundamental concepts of hotel project valuation and financing.

In particular, this course covers the following topics:

  • Define the competitive set for a market by specifying the primary and secondary competitors, define relative competitiveness
  • Making informed estimation on the existing and latent demand, occupancy and segmentation
  • Forecasting occupancy and average daily rates for the competitive set
  • Explain implications of variable revenues and fixed costs on hotel profitability
  • Produce accurate forecasts of revenues, expenses and cash flows
  • Use the income approach to estimate market value of a hotel

Learning Objectives

This course provides students with an opportunity to deepen their understanding of benchmarking and forecasting hotel performance with the objective of valuing a hotel property. Ultimately, the students will be able to ascertain the value of a hotel project using a built-up approach to estimating demand and resulting cash flows.

To successfully complete this course students must:

  • Submit all required work in time and of satisfactory qualit
  • Actively engage in class and challenge the content of the course
  • Participate in group discussions and show willingness to contribute professional experience

Teaching Approach

The course combines sessions of interactive lectures with student-led discussions and hands-on exercises utilizing hotel valuation software. The aim of this course is to deepen knowledge in the field of hotel management and hotel valuation, thus student input during class and critical reflection of course content is imperative.