Real estate decisions are critical to hotel investment and finance. This analytically-intensive course first builds the fundamental understanding of real estate finance. In doing so, this course approaches hotel investments from the perspective of hotel owners, potential investors, and debt financiers of hotel transactions. As a hotel`s real estate is generally its most valuable asset, it is important for hotel owners to track the market value of their investments. Therefore, the first part of this course focuses on state-of-the-art methods to determine the market value of hotels.
Next, the course takes the perspective of investors interested in acquiring new hotels. Due to the high capital intensity of hotel deals, transaction generally involve equity and debt financing. Students will learn how to structure the most advantageous hotel transactions deals using equity and debt and evaluate alternatives. In particular, this section familiarizes students with the impact of debt financing on after-tax equity returns. To structure successful deals, the requirements of the lenders also need to be met. To achieve this goal, the third and final part of this course focuses on the perspective of real estate debt investors. The concepts of loan-to-value (LTV), debt service coverage rates, and other factors are discussed to understand the pricing of real estate loans.
Further, the course builds on these concepts using advanced topics such as real estate capital markets, portfolio theory and investment analysis.
- Teacher (EHL): Vanessa CONCHA MADRID
- Teacher (EHL): Vedant GUPTA
- Teacher (EHL): René-Ojas WOLTERING
- Teaching Assistant (EHL): James Chung-Yuan LIU