Hotel Investments Analysis and Financing
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Course Details
- Introduction
- Objective
- Who should attend
Hotel investment analysis involves a detailed assessment of the financial performance and viability of hotel properties, using key financial metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and performance ratios to guide decision-making. Understanding cost behaviour and applying costing methods like Activity-Based Costing (ABC) is essential for optimizing financial control and planning in hotel operations. Additionally, advanced techniques such as Cost-Volume-Profit (CVP) analysis and risk analysis tools enable investors and managers to forecast financial outcomes and address potential uncertainties in hotel investments.
In the Hotel Investments Analysis and Financing course, participants will apply these financial principles and tools to real-world scenarios. They will learn how to evaluate hotel investments from multiple perspectives, including those of owners, managers, and lenders, and make informed decisions on capital investments and financing. The course will also cover strategies for optimizing capital structure using methods like Weighted Average Cost of Capital (WACC) and the Capital Asset Pricing Model (CAPM), while also exploring the implications of various financing options on the overall financial strategy.
Course Outline
Financial Performance in Hospitality
- Identifying types of information and data required for financial statements
- Describing the nature of financial statements and their usage in hospitality
- Definition of financial analysis and its role in decision-making
- Steps of conducting ratio analysis and creating pyramids of ratios to evaluate business performance
- Discussing the importance of evaluating business performance from multiple perspectives:
- Management’s point of view
- Owners’ point of view
- Lenders’ point of view
- Discussing the prediction of financial distress using metrics and indicators