Hospitality Asset Management

Curriculum Guideline

Effective Date:
Return to Course
Print Guideline
Course
HOSP 3140
Discontinued
No
Course Code
HOSP 3140
Descriptive
Hospitality Asset Management
Department
Hospitality Management
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
202030
PLAR
No
Semester Length
15 Weeks
Max Class Size
35
Contact Hours

Weekly Distribution:

  • Lecture/Seminar: 3 hours
  • Lab: 1 hour
Method(s) Of Instruction
Lecture
Lab
Seminar
Hybrid
Field Experience
Learning Activities

Combination of lecture/seminar, case analysis, asset management simulation exercise(s), and/or group work

Course Description
Today’s hotel industry is largely structured with hotel owners using hotel management companies to operate their businesses, and this may involve franchises and brand licenses as additional third parties. Owners use their asset managers to safeguard their interests and ensure that the profitability of their hotel operations is maximized so that they realize the highest possible returns on capital deployed. This course will explore the ways in which asset managers ensure that hotel assets are maximized for the desired financial results.
Course Content

  1. The role of asset management and the asset management cycle

  2. Franchise, chain affiliation programs and brand licensing agreements

  3. Hotel management agreement structures

  4. REITS and ownership

  5. Hotel valuation

  6. Capital structures

  7. Hotel development, construction and real estate cycle

  8. Principles of hotel investment

  9. Benchmarking and financial analysis

  10. Leases, licenses and related agreements

  11. Risk and reward

  12. Planning and managing capital expenditures

  13. Insurance, risk and crisis management essentials

Learning Outcomes

The successful student will be able to:

  1. Discuss corporate structures and title and form of ownership

  2. Describe the role of public equity and private equity in capital markets

  3. Appraise the value of a proposed hotel using a variety of methods

  4. Evaluate the appropriate size of a mortgage for all stakeholders

  5. Evaluate and critique a proposed franchise agreement

  6. Analyze and evaluate management contract(s) from the owner's and operator's perspectives

  7. Explain the components of a strategic asset management plan

  8. Propose enhanced assest value by conducting a PNA/SWOT

  9. Utilize industry-standard tools to benchmark expenses and revenues

  10. Interpret operating budgets, forecasts, capital plans, and cash flow reports

  11. Recommend and justify revenue enhancing, cost reducing, and sustainability practices

  12. Evaluate and select appropriate timing for divestment, refinancing and the impact of restructuring deals

  13. Examine key components of risk management and crisis management plans

  14. Examine lease renewal considerations

  15. Demonstrate team skills

  16. Demonstrate report writing and presentation skills

 

Means of Assessment

Case study(ies)                                                                                              10-20%

Critical thinking and application, through presentation(s) and group discussion(s)   10-20%

Group project(s) and presentation(s)                                                                 10-15%

Individual assignment(s)                                                                                 20-30%

Simulation exercise(s)                                                                                      5-10%

Final exam                                                                                                    25-40%

                                                                                                                     100%

 

Notes:
1.  A minimum of 50% of the overall grade must be achieved through individual assessments.

2.  To pass the course, students must achieve a cumulative grade of 50% in all non-group assessments as well as 50% overall in the course. In other words, students must have achieved at least 50% on their cumulative individual assessments in order to be eligible to earn marks from group work.

 

 

Textbook Materials

Nusgrove/Hotel Asset Management Principles and Practices, publisher: AHLEI (latest edition), or similar textbook as approved by the department and/or if no text assigned, selected readings to be assigned.

TI BA2 Plus business calculators to be used in compliance with Commerce and Business practice.

 

Prerequisites

Courses listed here must be completed prior to this course:


[(ACCT 1110 & ACCT 1210) or ACCT 1235], HOSP 2240 and HOSP 2330

or be currently active in one of the following:

(PBD Hospitality Services Management and ACCT 3008),

(PDD Hospitality Management and ACCT 3008), or

(PDD Hospitality Marketing and ACCT 3008).

 

Corequisites

Courses listed here must be completed either prior to or simultaneously with this course:

  • No corequisite courses
Equivalencies

Courses listed here are equivalent to this course and cannot be taken for further credit:

  • No equivalency courses