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.
The role of asset management and the asset management cycle
Franchise, chain affiliation programs and brand licensing agreements
Hotel management agreement structures
REITS and ownership
Hotel development, construction and real estate cycle
Principles of hotel investment
Benchmarking and financial analysis
Leases, licenses and related agreements
Risk and reward
Planning and managing capital expenditures
Insurance, risk and crisis management essentials
Methods of Instruction
Combination of lecture/seminar, case analysis, asset management simulation exercise(s), and/or group work
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%
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.
The successful student will be able to:
Discuss corporate structures and title and form of ownership
Describe the role of public equity and private equity in capital markets
Appraise the value of a proposed hotel using a variety of methods
Evaluate the appropriate size of a mortgage for all stakeholders
Evaluate and critique a proposed franchise agreement
Analyze and evaluate management contract(s) from the owner's and operator's perspectives
Explain the components of a strategic asset management plan
Propose enhanced assest value by conducting a PNA/SWOT
Utilize industry-standard tools to benchmark expenses and revenues
Interpret operating budgets, forecasts, capital plans, and cash flow reports
Recommend and justify revenue enhancing, cost reducing, and sustainability practices
Evaluate and select appropriate timing for divestment, refinancing and the impact of restructuring deals
Examine key components of risk management and crisis management plans
Examine lease renewal considerations
Demonstrate team skills
Demonstrate report writing and presentation skills
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).
Courses listed here must be completed either prior to or simultaneously with this course:
Courses listed here are equivalent to this course and cannot be taken for further credit:
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.