Hotel Investments Analysis and Financing

Course Info

Length: 1 Week

City: Singapore

Type: In Classroom

Available Dates

  • Jan-27-2025

    Singapore

  • Apr-28-2025

    Singapore

  • July-28-2025

    Singapore

  • Oct-27-2025

    Singapore

Dates in Other Venues

  • Jan-27-2025

    Dubai

  • Jan-27-2025

    Istanbul

  • Jan-27-2025

    Paris

  • Jan-27-2025

    Kuala Lumpur

  • Jan-27-2025

    Barcelona

  • Jan-27-2025

    Amsterdam

  • Feb-24-2025

    London

  • Mar-17-2025

    Dubai

  • Apr-28-2025

    Amsterdam

  • Apr-28-2025

    Kuala Lumpur

  • Apr-28-2025

    London

  • Apr-28-2025

    Paris

  • Apr-28-2025

    Istanbul

  • Apr-28-2025

    Barcelona

  • May-26-2025

    Dubai

  • June-16-2025

    London

  • July-28-2025

    Barcelona

  • July-28-2025

    Istanbul

  • July-28-2025

    Amsterdam

  • July-28-2025

    Paris

  • July-28-2025

    Dubai

  • July-28-2025

    Kuala Lumpur

  • Aug-25-2025

    London

  • Sep-15-2025

    Dubai

  • Oct-27-2025

    Kuala Lumpur

  • Oct-27-2025

    Barcelona

  • Oct-27-2025

    London

  • Oct-27-2025

    Amsterdam

  • Oct-27-2025

    Paris

  • Oct-27-2025

    Istanbul

  • Nov-24-2025

    Dubai

  • Dec-15-2025

    London

Course Details

Course Outline

5 days course

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:


  1.     Management’s point of view
  2.     Owners’ point of view
  3.     Lenders’ point of view


  • Discussing the prediction of financial distress using metrics and indicators

Investment Decision Analysis Techniques  


  • Overview of investment decision analysis techniques and the adaption of strategic perspective
  • Understanding the way of evaluating investment opportunities using time-adjusted measures
  • Formulas for calculating investment appraisal to evaluate hotel investments:


  1.     Net Present Value (NPV)
  2.     Internal Rate of Return (IRR)
  3.     Economic Value Added (EVA)


  • Techniques for refining investment analysis:


  1.     Equivalent annual cost (EAC)
  2.     Modified internal rate of return (MIRR)


  • Discussing the impact of risks and uncertainty in hotel investment and the way of addressing them
  • Exploring risk analysis techniques used in investment-decision making:


  1.     Sensitivity Analysis
  2.     Scenario Analysis,
  3.     Simulation

Financing Strategies for Hotel Investments    


  • Distinguishing between long-term and short-term sources of finance available for hotel investments
  • Exploring types of equity capital and debt financing
  • Criteria for selecting the optimal capital structure
  • Steps of calculating of Weighted Cost of Capital (WACC) and The Capital Asset Pricing Model (CAPM)
  • Determining the appropriate situation for using WACC and CAPM
  • Discussing the implications of dividend decisions on financing strategy

Cost Analysis Techniques for Hospitality Management


  • Analyzation of cost behaviour and activities within hotel operations
  • Describing the classification of cost:


  1.     Fixed vs. variable costs
  2.     Direct vs. indirect costs


  • Distinguishing between product costs and period costs
  • Exploring techniques for cost allocation and absorption of overheads
  • Understanding costing methods:


  1.     Absorption costing
  2.     Marginal costing


  • Steps of performing Cost-Volume-Profit (CVP) analysis and what-if scenarios using Excel
  • Exploring cost management techniques:


  1.     Activity Based Costing (ABC)
  2.     Activity Based Management (ABM)

Budgeting and Performance Management 


  • Understanding the purpose and benefits of budgeting in the hospitality sector
  • Exploring key phases of the budgeting preparation process
  • Strategies for developing a master budget
  • Methods for effective budgetary control:


  1. Responsibility accounting
  2. Variance analysis


  • Discussing the advantages and disadvantages of budgeting in the hotel context