HOTEL INVESTMENT - 2020/1
Module code: MAN3127
The module will cover the complete financial cycle of hotel investment analysis including development, lending; operations, investment analysis, renovation decisions, acquisition and disposition. Hotel valuation principles and procedures are explored with emphasis on the replacement cost, sales comparison, and income capitalization approaches. As well, the role and function of the asset manager is discussed with emphasis on investment underwriting, portfolio management, operations analysis, market strategy, management contracts, franchises, strategic investment analysis and the property management team.
Hospitality, Tourism & Events Management
GANBERT Sylvia (Hosp & Tour)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 6
JACs code: N862
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
MAN2125 (Applied Financial Management) or MAN2089 (Business Finance) are pre-requisites for this module
- Introduction to Hotel Financial Analysis
- Hotel Financial Analysis and Planning – includes profit and loss statement analysis.
- Capital Budgeting – Capital expenditure analysis and renovations process.
- Hotel Asset Valuation – DCF, Sales Approach, Cost Approach
- Hotel Development – Feasibility studies and Demand forecasting.
- Hotel Asset Management and benchmarking analysis.
- Hotel Management and Franchise Agreement Analysis
- Hotel Financing and lending.
|Assessment type||Unit of assessment||Weighting|
|Coursework||GROUP ASSIGNMENT AND PRESENTATION (2000 WORDS)||50|
|Coursework||INDIVIDUAL ASSIGNMENT (3000 WORDS)||50|
GROUP ASSIGNMENT AND PRESENTATION - Individual Assignment (2,500 words)
The module has number of learning outcomes that directly related to the topics delivered in various weeks. The assessments are designed to capture learning in all the topics. The individual assignment will use the tools and techniques learned in this module to analyse a hotel transaction of their choice (i.e. development, acquisition, and disposition) that is hypothetical. The group assessment will comprise of student being asked to interpret a hotel company investment. For this purpose students should form groups of 5-6 students. Each group must present in class, for formative feedback, as well as submit a written assignment, no later than the eleventh week of class. Each group will also be responsible for reading, understanding and reflecting on the various articles, case studies in the classroom. Once again this will assess the students in various theoretical and calculation based competencies in hotel financial analysis.
- This module aims to enhance students' understandings of hotel financial concepts and theories. The module also will allow students to learn contemporary hotel; financial analysis techniques/models. The student will be engaged in hotel appraisal techniques as well as understand the rationale behind hotel development, acquisition, dispositions. The student will be engaged in the various types of management and franchise agreements utilised in the hotel industry and learn the important role of the hotel asset manager.To pass this module the student will demonstrate a familiarity of business finance (corporate finance). The student should display some understanding of the relevant issues and some familiarity with the relevant theories and techniques.
|1||To provide basic techniques of evaluation of hotel financial and operating data.||K|
|2||Evaluate hotel capital, revenue and expenditures items.||KCP|
|3||Understand the various valuation techniques used to analyse hotels.||KC|
|4||Evaluate and interpret budgets for hotel operations.||CP|
|5||Understand (ROI) hotel capital expenditures and renovations.||K|
|6||Evaluate and understand the hotel acquisitions and dispositions process.||KC|
|7||Evaluate the hotel development process through feasibility studies.||C|
|8||Understand basic finance concepts and lending to the hotel industry.||K|
|9||Understand the equity investment acquisition underwriting process for ownership.||K|
|10||Understand the role of the hotel asset manager through buy, hold, sell strategies as well as hotel value enhancement.||K|
|11||Evaluate hotel operations analysis||CP|
|12||Understand the importance of hotel management and franchise agreement and negotiations.||K|
|13||Understand hotel property management operations.||K|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 116
Lecture Hours: 24
Tutorial Hours: 10
Methods of Teaching / Learning
The learning and teaching strategy is developed in this module to facilitate active learning and to support students in achieving the learning outcomes.
- Lectures incorporating class-room participation for better understanding.
- Tutorial sessions for solving problems to understand the contents covered in lectures. The tutorials cover worked examples which are an integral part of the module. Tutor will provide the necessary support during these sessions for deeper understanding practical examples, articles, case studies and long problem solutions.
- SurreyLearn discussion forums to address any issues related to the content, learning and teaching environment, and delivery of the module and/or specific topics.
- Utilizing SurreyLearn as the main pool of resources including lecture handouts, tutorial problems, mock exercises, articles, case studies, and discussions. Besides using SurreyLearn as the main means of communication to establish resource efficiency and communicational effectiveness.
- Weekly office hours provided by lecturers.
- Support of lecture material by directed reading in 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 for HOTEL INVESTMENT : http://aspire.surrey.ac.uk/modules/man3127
Programmes this module appears in
|International Hospitality Management BSc (Hons)||2||Optional||A weighted aggregate mark of 40% is required to pass the module|
|International Hospitality and Tourism Management BSc (Hons)||2||Optional||A weighted aggregate mark of 40% is required to pass the module|
|International Hospitality Management MBus||2||Optional||A weighted aggregate mark of 40% is required to pass the module|
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 2020/1 academic year.