HOTEL INVESTMENT AND FINANCE - 2023/4

Module Overview

This module focuses on the Hotel Investment sector on hotel projects through the development phase, franchising and acquisition from the perspective of the owner, operator & lender. Lectures will cover the motivations of the owner, lender, and management company in the real estate investment. The module will explore the purpose of feasibility Studies, valuation, debt and equity financing structures such as joint ventures, management contracts, franchise agreements, operational analysis, & leases. Emphasis will also be placed on market analysis, transaction process, development process, type of ownership, asset management and such like.

This module adopts the University curriculum framework, which aims to develop learners with strong capabilities in Digital Capabilities, Employability, Global and Cultural Capabilities, Sustainability, and Resourcefulness and Resilience. This module contributes to the development of the following capabilities: Digital Capabilities: Global and Cultural Capabilities: Employability. 

Module provider

Hospitality & Tourism Management

Module Leader

GANBERT Sylvia (Hosp & Tour)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Module Availability

Semester 1

Prerequisites / Co-requisites

None

Module content

Indicative content includes:

Intermediate to advanced knowledge of hotel investment processes, stakeholders and the impact of this area

Introduction to real estate finance related to the hotel asset class sector

Hotel transaction analysis related to acquisition, development, asset management,  dispositions, & bankruptcy

Hotel Development – Feasibility studies, development and financing

Hotel investment/financial returns as well as benchmarking analysis

Hotel Management and Franchise Agreement Analysis

Hotel Financial Analysis

Captial Structuring, Debt, equity within the capital stack

Assessment pattern

Alternative Assessment

Alternative Assessment: In the event that the team project will not be suitable for re-assessment, an individual report will be assigned.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate all learning outcomes that are related to the topics delivered in various weeks. The assessments are designed to capture learning in all the topics covered in this module.

Thus, the summative assessment for this module consists of:

 The group assignment will use the tools and techniques learned in this module to analyze a destination/market (i.e.Development marketplace) that is hypothetical whereby the role of an owner, a lender, and management company must be carefully analyzed and presented. Sustainability and the longevity of the demand and marketplace must be analyzed accordingly. Transaction data will be provided by instructor.

 The individual assignment is a feasibility study based on an existing case study hotel. The information will be provided by the instructor whereby the role of the owner, lender and management company should be analyzed but also discuss the upside and downside risks and rewards of the transaction through strategic and critical thinking. The transaction and data for the individual assignment will be provided by the instructor. Once again this will assess the student’s abilities in various theoretical, strategic and advanced calculations-based competencies in hotel investment and financial analysis. The sustainability of business is key to this assessment.

Alternative Assessment

In the case of an alternative assessment being necessary, individual students will be provided with an alternative data set and be expected to carry out a similar set of analyses. The report from this will be up to 2000 words.

Formative assessment and feedback

Verbal and written feedback on group presentations

Written feedback on group reports

Peer assessment within and between groups. This is to ensure fairness within the group and help each student to understand their working practices and how it can impact team members in a positive or negative way.

Facilitation and feedback from the teaching team

Module aims

• Provide students with understanding of hotel investment and financial concepts together with understanding the varying owner profiles seen in the hotel investment landscape.
• Learn market- based analysis, strategy, techniques, models and transactions. The student will be engaged in hotel feasibility studies, and financial analysis techniques as well as understanding the various transactions in the industry which impacts the owner, lender and operator
• Help understanding of some of hotel investment and finance vocabulary and various contracting options such as operating contracts, leasing etc.

Learning outcomes

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

facilitate active learning and to support students in achieving the learning outcomes.

The learning and teaching methods include:

Weekly one two-hour lecture incorporating class-room participation for better understanding for the students. Discussion of the lecture material and case studies is integral for the fuller understanding of this complex topic.

Weekly one-hour seminar sessions for solving problems to explore in more depth content covered in lectures. These seminars cover worked examples which are an integral part of the module. The lecturer will provide the necessary support during these sessions for deeper understanding practical examples, articles, case studies and long problem solutions. This will benefit the students by putting real life case studies at the heart of the learning journey

SurreyLearn will be used for delivering a variety of case studies thereby giving the students an opportunity to get formative feedback.

Utilizing SurreyLearn as the main pool of resources including lecture handouts, tutorial problems, mock exercises, articles, case studies, and discussions.

Weekly office hours provided by lecturers.

Support of lecture material by directed reading and exercises selected.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MANM319

Other information

Global and Cultural Capabilities: Students will learn how to interpret results of business analytics and their implications to service business in a global context by extracting, comparing, and contrasting individual and group behaviours, as well as sectoral, national, and regional differences captured from big datasets. 

Digital Capabilities: This module focuses on developing students’ capabilities in analysing data and capturing business insights for managerial decision making. Students will develop their skills in using descriptive, predictive, and prescriptive analytics and data Virtualization. They will learn how to use a software to create business analytics. Module assessments require students to work collaboratively with peers to analyse datasets.

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2023/4 academic year.