HOTEL INVESTMENT PRINCIPLES & PRACTICE - 2020/1
Module code: MANM439
Focuses on understanding the development of the hotel industry and the current structure of the Hotel Industry. Will consider the varying perspectives of the owner, operator and lender. Focus on the advantages & disadvantages of joint ventures, management contracts, franchise agreements, operations analysis, & leases.
Emphasis will also be placed on the feasibility study and evaluation of a potential location as an investment prospect. Demand and Supply will be discussed from the perspective of forecasting revenues & expenses for periods of time to help understand the key investment rate of return.
Hospitality, Tourism & Events Management
GANBERT Sylvia (Hosp & Tour)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
JACs code: N340
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
Indicative content includes:
- Overview of the hotel investment Lifecycle
- Analysis real estate finance related to the hotel asset class sector
- Hotel transaction analysis related to acquisition, development, asset management, dispositions
- Hotel Development – Feasibility studies, construction financing, development
- Hotel Management and Franchise Agreement Analysis
- Market Demand and supply analysis
|Assessment type||Unit of assessment||Weighting|
|Coursework||Individual Essay (2,000 words)||50|
|Coursework||Individual Report (3,000 words)||50|
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.
- Knowledge and Understanding. Demonstrating a robust and wide-ranging knowledge and understanding of the various theoretical perspectives across core subject and their application within organisational contexts
- Professional, practical and transferable skills. Demonstrating a practical ability to work in a group; communication and research skills.
- Intellectual and cognitive skills. Demonstrating critical thinking and an ability to evaluate and select from alternative theoretical perspectives. The ability to apply and justify selected approaches to an identified sector related issue in asset management.
Thus, the summative assessment for this module consists of: two individual assignments an essay and a business report.
The assessment strategy is designed to apply principles and concepts in the specific industry context.
The assessment methods include two assessments. The first assessment is individual project based on property valuation and investment. The second assessment is an individual student project related to management of a property asset.
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
- To provide students with understanding of hotel investment lifecycle and some
finance concepts and theories such as understanding financial performance.
- To provide students with an understanding in to various ownership profiles, varied
operating agreements, motivations behind investment decisions and to understand
the development process.
- The Students will learn market based financial analysis, strategy, techniques,
models and transactions.
- 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.
|001||Evaluate and understand the hotel investment cycle which includes the development, acquisitions and dispositions process||CK|
|002||Evaluate the hotel lifecycle and the impact for owner, lender and management company.||CK|
|003||Discuss advanced financial concepts and investment theory for the hotel industry||CKP|
|004||Discuss the equity investment acquisition underwriting process for ownership||CKP|
|005||Summarise the functions of the various investment and financial benchmarks and criteria required for owner, lender and management company.||CKP|
|006||Examine hotel transactions and transaction data||CKP|
|007||Evaluate the importance of hotel management and franchise agreement and negotiations||CKP|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 117
Lecture Hours: 33
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 teaching and learning methods include guest speakers and case studies would be used to demonstrate how the key principles apply in practice. Students will be encouraged to discuss how the concepts apply to property in their geographical location, in order to highlight differences in culture and perceptions. It aims to incorporate a variety of learning methodologies to enable participation from a range of individual learning styles.
- 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 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, 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 PRINCIPLES & PRACTICE : http://aspire.surrey.ac.uk/modules/manm439
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.