Valuing Hotel Investments Through Effective Forecasting

For a hotel investment to be successful, you must first have accurate and reliable data about the critical aspects of the hotel operation, such as occupancy, revenue, expenses, and cash flows. But how do you generate these detailed forecasts? In this course, Cornell University professor Jan deRoos leads you through this analysis using the Hotel Valuation Software he developed with HVS International. Perform a market study for a particular property Forecast occupancy and average daily rates Produce accurate forecasts of income and expenses Use the income approach to produce an estimate of market value Produce defensible and supportable estimates using the tools developed in this course Starting with the market study, you will forecast hotel occupancies for new properties and for existing properties and calculate average daily rates using a variety of cutting-edge techniques. Using the occupancy data, you will then forecast hotel cash flows, respecting the fixed and variable revenue and cost structure of a hotel. At the end of this course, you’ll estimate of the market value of the hotel, a critical component of any sound investment decision. Given that forecasts are only as accurate as the starting assumptions, you’ll learn how to develop data to support your forecasts. With step-by-step guidance and sophisticated software tools, you will walk away from this course with the skills necessary to conduct detailed forecasts and valuations for any hotel property. These courses are required to be completed prior to starting this course: Financial Analysis of Hotel Investments Control of Hotel Real Estate Developing an Asset Management Strategy Achieving Hotel Asset Management Objectives