HOTEL INVESTMENT AND FINANCE - 2020/1
Module code: MANM319
Focuses on real estate financing for hotel projects through development, franchise and acquisition financing. Lectures will cover the financial returns to the owner, lender, and management company in the lodging investment. Will measure rates of return for owner, lender and manager, purposes of feasibility, valuation, debt and equity financing structures such as joint ventures, management contracts, franchise agreements, operations analysis, & leases. Emphasis will also be placed on the strategic transaction process such as investment underwriting, portfolio management, acquisitions, dispositions, and bankruptcy as well as asset management functions.
Hospitality, Tourism & Events Management
GANBERT Sylvia (Hosp & Tour)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
JACs code: N321
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
Indicative content includes:
- Intermediate to advanced hotel investment and financial analysis skills
- Introduction to real estate finance related to the hotel asset class sector
- Hotel transaction analysis related to acquisition, development, asset management, dispositions, & bankruptcy
- Hotel Asset Valuation – DCF, Sales Approach, Cost Approach
- Hotel Development – Feasibility studies, construction financing
- Hotel investment/financial returns as well as benchmarking analysis
- Hotel Management and Franchise Agreement Analysis
- Hotel Financing and Lending
- Capital Structuring – Debt, Equity within the capital stack
|Assessment type||Unit of assessment||Weighting|
|Coursework||GROUP ASSIGNMENT & PRESENTATION 2000 WORDS||50|
|Coursework||INDIVIDUAL ASSIGNMENT 3000 WORDS||50|
GROUP ASSIGNMENT & PRESENTATION 2000 WORDS - Individual Assignment (2,000 words)
The assessment strategy is designed to provide students with the opportunity to demonstrate a number of learning outcomes that are directly 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 analyse a hotel transaction (i.e. development, acquisition, and disposition) that is hypothetical whereby the role of an owner, a lender, and management company must be carefully analysed and presented. Transaction data will be provided by instructor. For this purpose students should form groups of 3-5 students. Each group must present in class as well as a written assignment, no later than the tenth week of class. Each group will also be responsible for reading, understanding and refelcting on the various articles, case studies in the classroom. In the case of an alternative assessment being necessary, individual students will be provided with an alterative data set and be expected to carry out a similar set of analyses.The report from this will be uo to 2000 words.
- The individual assignment will again be asked to evaluate a transaction provided by the instructor whereby the role of the owner, lender and management company should be analysed but also discuss the upside and downside risks and rewards of the transaction through strategic and critical thinking. Use of transactional data may go as far back as 5-7 years. The transaction and data for the individual assignment will be provided by the instructor. Once again this will assess the students abilities in various theoretical, strategic and advanced calculations based competencies in hotel investment and financial analysis.
Formative assessment and feedback
- Verbal and written feedback on group presentations
- Written feedback on group reports
- 4 scheduled group tutorials
- Peer assessment within and between groups
- Facilitation and feedback from the teaching team
- provide students with understanding of hotel investment and finance concepts and theories.
- learn market based financial analysis, strategy, techniques, models and transactions. The student will be engaged in hotel valuation, and financial analysis techniques as well as understanding the various transaction in the industry which impacts the owner, lender and
- help understanding of some of hotel investment and finance vocabulary, including terms such as NOI, Mgmt/Franchise Fees, IRR, NPV, Cap Rates, DCF, EBITDA, LTV, Yield, LIBOR+spread, ROI, and ROE.
- To pass this module the student will demonstrate a familiarity with hotel investment and finance, The student should display some understanding of the relevant issues and some familiarity with the relevant theories and techniques such as the P&L, financial statements, financial ratios and transactions.
|1||Use techniques of evaluation of hotel financial and investment data.||KC|
|2||Evaluate hotel transactions through financial analysis and strategic decisions.||K|
|3||Critique the various valuation techniques used to analyse hotels from an owner, lender and management company.||CP|
|4||Evaluate and interpret transaction through financial analysis.||CPT|
|5||Appraise (ROI) hotel capital expenditures and renovations for acquisitions, repositioning, and bankruptcy.||KC|
|6||Evaluate and understand the hotel investment cycle which includes the development, acquisitions and dispositions process.||KC|
|7||Evaluate the hotel lifecycle and the impact for owner, lender and management company.||KC|
|8||Discuss advanced financial concepts and investment theory for the hotel industry.||KCP|
|9||Discuss the equity investment acquisition underwriting process for ownership.||KCP|
|10||Summarise the functions of the various investment and financial benchmarks and criteria required for owner, lender and management company.||KCP|
|11||Examine hotel transactions and transaction data||KCP|
|12||Evaluate the importance of hotel management and franchise agreement and negotiations.||KCP|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 117
Lecture Hours: 22
Tutorial Hours: 11
Methods of Teaching / Learning
The learning and teaching strategy is designed to:
The learning and teaching strategy is developed in this module 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.
- Weekly one-hour 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.
- SurreyLearn will be used for delivering optional mock MCQ examinations as well as case studies thereby giving the participants 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. 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 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 for HOTEL INVESTMENT AND FINANCE : http://aspire.surrey.ac.uk/modules/manm319
Programmes this module appears in
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.