General MBA / Overview

Forecasting and Benchmarking for Hotels and Hotel Asset Management

Course Description

In a three-step process, students will perform a detailed analysis of the existing demand, competition and perform demand projections. On this basis, revenues and expenses are forecasted, providing an estimation of cash flows for the projection period. Students will learn to read and interpret STR data reports and will review some fundamental concepts of hotel project valuation and financing.

In particular, this course covers the following topics:

  • Define the competitive set for a market by specifying the primary and secondary competitors, define relative competitiveness
  • Making informed estimation on the existing and latent demand, occupancy and segmentation
  • Forecasting occupancy and average daily rates for the competitive set
  • Explain implications of variable revenues and fixed costs on hotel profitability
  • Produce accurate forecasts of revenues, expenses and cash flows
  • Use the income approach to estimate market value of a hotel
  • Evolution of the hotel industry and key events
  • History and evolution of hotel asset management and ownership
  • The role and current state of the profession of asset management
  • Macroeconomic trends, hotel industry structure and investment cycle
  • Key industry trends impacting hotel asset performance asset management process: Asset management cycle and plan
  • Buy-sell-hold decisions
  • Principles of hotel investment decisions
  • Structuring hotel investments
  • Investment and operating performance tools
  • Understanding revenue and channel management: Key terms, tools and ratios
  • Understanding hotel management contracts
  • Understanding hotel franchise agreements
  • Understanding capital expenditure decisions and planning

Lecturer

Florian Aubke