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Hotel Real Estate Investments and Asset Management

Certificate ID: SHAC6
This certificate series focuses on the formulation of real estate and management contracts and their execution by managers, real estate and development professionals, property owners, operators, and lenders.

A Cornell University
Certificate for as
little as $2640.00

Description

Well-structured hotel real estate investments create win-win situations, where all parties enjoy rewards and benefits. The best way to approach a real estate investment deal is to understand it from all sides and identify individual motivations. Understanding the financial and operational aspects of real estate investments, asset management, and management contracts is essential for mid-level and senior management in hospitality and real estate.

This certificate series focuses complex real estate and management contracts through the eyes of property owners, operators, and lenders. You’ll examine real-world leasing arrangements and learn about valuation, financing, equity structuring, exit strategies and much more about real estate investment and asset management.

Who Should Enroll in This Certificate?

This certificate series designed for managers and professionals in the hospitality industry with financial or operational responsibility, general managers and asset managers, business development and real estate professionals, lenders and investors.

Enrollment

To register, contact an Enrollment Counselor at info@ecornell.com or 1-866-326-7635 (+1-607-330-3200 from outside the United States).

Certificate programs are eligible for eCornell Payment Plans. Discounts are available for military personnel, veterans, and Cornell University Alumni. eCornell programs are not eligible for financial aid or federal Pell Grants. Contact an enrollment counselor for more information.

Courses in this Certificate

Financial Analysis of Hotel Investments
- A hotel's real estate is one if its most valuable assets and it is essential to be able to accurately value this critical investment. This course uses practical and theoretically grounded tools of investment analysis and valuation to introduce participants to contemporary practices in lodging investments. Participants will learn to evaluate hotel investments and hotel financing decisions and structure deals that meet the needs of the owner, the operator, and the lender.
  
  This course explores the multiple elements and factors involved in the hotel investment decision including the hotel owner-operator-lender partnership and the different ways each party will evaluate a real estate investment deal. This multi-party view will enable you to negotiate the most favorable agreement based on your priorities and requirements and evaluate alternatives. This course provides thorough coverage of how a deal is structured using debt and equity financing, and the impact of debt financing on equity returns.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - The Hotel Owner-Operator-Lender Partnership
  - Evaluating the Deal: How Owners, Operators, and Lenders Evaluate Proposed Projects
  - Structuring the Deal: Current Equity and Debt Financing Structures
  Benefits to the Learner
  Participants who complete this course will be able to:
  - Explain the varied motivations of owners, operators, and lenders in pursuing real-estate investments
  - Analyze and evaluate investment projects from the perspective of owners, operators, and lenders
  - Structure hotel investments that meet the needs of all parties
  - Make informed decisions about the attractiveness of hotel investments, especially the decision to invest equity in a hotel
Control of Hotel Real Estate
- In most hotels, the physical ownership of the property is separated from the control and management of the hotel. This course explores the ways in which hotel investors separate ownership from control of the hotel and examines the two major decisions faced by owners: first, what are the benefits and costs of franchise affiliation? Second, under what conditions should an owner hire a professional operator?
  
  Participants will learn how management contracts are negotiated and about the motivations of each negotiating party. They will learn to prepare term sheets from the perspectives of both owners and operators to provide insight into how to structure the most advantageous deal. This course also examines contemporary hotel leases prevalent around the world.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - Operating Agreement Choices and Trends
  - Negotiating Contemporary Hotel Franchise Agreements
  - Negotiating Contemporary Management Contracts
  Benefits to the Learner
  Participants who complete this course will be able to:
  - Explain the factors contributing to deciding who controls the daily operations of hotels and why
  - Describe the key attributes of contemporary hotel leases and their applicability in different international settings
  - Evaluate a proposed franchise agreement
  - Assemble term sheets for new management contracts
  - Analyze management contracts from the perspective of owners and operators
Valuing Hotel Investments Through Effective Forecasting
- Hotel investment opportunities cannot be properly evaluated without accurate forecasts of the revenues and expenses the property is expected to produce. This course builds expertise in producing accurate forecasts of occupancy, average rates, cash flows and real estate value needed to support hotel investment and lending decisions.
  
  Participants will learn to accurately forecast hotel occupancies both for new properties and for existing properties facing significant new competition. They will forecast daily occupancy rates using a variety of contemporary techniques and tools, forecast hotel cash flows respecting the fixed and variable revenue and cost structure of a hotel. Participants will estimate the value of individual hotels, taking into account the impact of new properties on existing properties. Given that forecasts are only as accurate as the starting assumptions, participants learn how to develop and gather data to support all of these forecasts.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - Forecasting Hotel Occupancy
  - Forecasting Revenues and Expenses
  - Valuation
  Benefits to the Learner
  Participants who complete this course will be able to:
  - 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
Valuing Hotel Intellectual Property and Structuring the Capital Stack
- Accurately assessing the value of hotel intellectual property is a critical component of structuring the most advantageous deal. This course is designed to develop a high level of financial sophistication in valuing hotel management contracts and valuing franchise agreements in addition to valuing the real assets.
  
  Participants will value the intellectual property rights created in management contracts and franchise agreements and learn how debt and equity capital markets are used to financially engineer enhancements in the value of the real estate. Participants will also learn how to determine the cost of mortgage loans, be introduced to the secondary mortgage market and lodging REIT structures, and learn how to calculate the returns to private real estate fund investors and sponsors. This course emphasizes the role of debt capital in creating value for equity and the role of public and private equity in modern real estate capital markets. Throughout the course, participants use sophisticated spreadsheet tools to support and quantify the analyses, all of which can be used to analyze real-life opportunities.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - Modeling and Valuing Management Contracts and Franchise Agreements
  - Debt Financing
  - Equity Financing
  Benefits to the Learner
  Participants who complete this course will be able to:
  - Estimate the value of management contracts and their impact on shareholder value
  - Estimate the value of franchise agreements and their impact on shareholder value
  - Explain how capital markets can be used to create value in the real estate
  - Use the tools of modern finance to create value for equity via the specific use of debt instruments
  - Explain the role of public equity and private equity in capital markets
  - Use the tools of investment analysis to understand a ‘promote structure’ in a private equity real estate fund
Developing an Asset Management Strategy
- The hotel asset manager is responsible for managing lodging investments to meet the specific objectives of ownership. The asset manager's role in building value is analyzed at both the portfolio and the property level. This course focuses on the importance of developing a strategic vision for asset management, and for using the latest asset management techniques in pursuit of that strategic vision.
  
  Participants will examine the role of the asset manager in real estate portfolio management and learn how to develop a strategic vision for asset management. They will learn how to create an asset management plan designed to accomplish long-term financial goals, create forecasts, and build models that analyze sell versus hold alternatives and make optimal recommendations consistent with the asset management strategy and plan.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - Portfolio Management
  - Asset Management
  - Sell Versus Hold Decisions
  Benefits to the Learner
  Participants who complete this course will be able to:
  - Analyze the asset manager’s role in building value at both the portfolio and the property level
  - Develop a strategic vision for asset management
  - Create an asset management plan for a property’s long-term needs
  - Model the optimal holding period and make recommendations on selling versus holding the asset
Achieving Hotel Asset Management Objectives
- Hotel asset management is the responsibility of managing the lodging investment to meet the specific objectives of ownership. This course introduces the latest asset management techniques and provides a set of practical tools and tactics that owners and asset managers can use to achieve their strategic objectives.
  
  Participants will learn how to administer and renegotiate management contracts, evaluate capital expenditures and manage their execution, and monitor expenses to reduce costs. They will learn how to benchmark a property's revenue and expense performance against the market, perform asset risk analyses tailored to current market conditions, and evaluate various refinancing opportunities to reduce debt costs or free up capital for other investment opportunities.
  Course Format
  All eCornell courses are delivered online and are self-paced. An eCornell instructor leads the online discussions, grades any course projects, and is available to answer specific questions about the course content.
  
  This course contains the following modules:
  - Asset Managing Hotel Management Contracts
  - Managing Capital Expenditures
  - Benchmarking Hotel Performance
  - Risk Analysis and Refinancing
  Benefits to the Learner
  Participants who complete this course will be able to:
  - Manage contract administration and contract renegotiation
  - Make capital expenditure decisions and manage their execution
  - Use industry-standard benchmarking tools to enhance revenues and reduce costs
  - Perform risk analysis designed to calibrate risk by magnifying revenue enhancement and minimizing costs according to market conditions
  - Perform a refinancing analysis in order to reduce debt cost and to liberate illiquid equity for more productive investments

Accreditation

Participants who successfully complete the six required courses in the series receive a Certificate in Hotel Real Estate Investments and Asset Management from Cornell University’s School of Hotel Administration.

"The course content is relevant and applicable to our real working world."
Student Testimonial,
Developing an Asset Management Strategy
"The course reinforced the importance of forecasting our incomes and expenses as we navigate through this financial storm."
Student Testimonial,
Valuing Hotel Investments Through Effective Forecasting
"It is an excellent course and a must for anyone who wants to make it 'big' in this industry."
Student Testimonial,
Valuing Hotel Intellectual Property and Structuring the Capital Stack
"This course illuminates the key issues of control and contracting. I strongly recommend it to any one who wants to professionally and successfully navigate the hotel industry landscape."
Student Testimonial,
Control of Hotel Real Estate
First experience with an eCornell course, and I was impressed with the content and presentation. Well done!
Michael McDonnell,
Financial Analysis of Hotel Investments
It was a great experience to learn from this outstanding eCornell program. The methods of studying, the case studies and the material in whole were up-to-date and useful for my future career and skills development. Thank you eCornell!
Lela Krstevska - CEO - Radika Resort from Gostivar, Republic of Macedonia,
Certificate: Hotel Real Estate Investment & Asset Management
I completed the Hotel Real Estate Investments & Asset Management certificate program in 2010 at eCornell and it was excellent. The program was very challenging and I've been in the hospitality industry for over 20 years. In my opinion the conversations with the instructors and the world experience you will get from the other students in the course is priceless.
Sean Wiggins - Director, Portfolio Management Services - Wyndham Worldwide from Jacksonville, Florida,
Certificate: Hotel Real Estate Investments & Asset Management
Apart from the great explanations within the content of the course, what contributed most to the learning was the in depth knowledge of some of the participants, specially on a course like this where much of the decision making is very subjective and dependent on many different variables not always covered in the case studies. Thank you for an enriching experience.
Sacha Bernal Coates,
Achieving Hotel Asset Management Objectives
This certificate program was invaluable in helping me to learn hotel underwriting, particularly as it relates to the many parties involved in asset management: owner, management company, brand management company, developer, property manager, etc. We formed Pharos with the intent to bridge the gap between real estate investors and hotel operators. These courses have prepared me to anticipate and meet the needs of all of our current and future partners. The courses taken through eCornell were priceless. Absolutely priceless.
Adam Zembruski, President Pharos Hospitality, LLC from Charlotte, North Carolina,
Certificate: Hotel Real Estate Investments & Asset Management
"What really made my learning experience great was the use of the case study. It brought all the different elements of the class together and made it easier to understand."
Student Testimonial,
Financial Analysis of Hotel Investments
"I strongly believe that the course materials are useful in many aspects. It truly helped to enhance my knowledge and point of view of the business."
Student Testimonial,
Achieving Hotel Asset Management Objectives
"I've looked over hotel appraisals and STR reports before but didn't really understand all the data I was given. Now, I comprehend how everything ties together and can actually use the data correctly."
Student Testimonial,
Valuing Hotel Investments Through Effective Forecasting
"I don't have formal education in the hospitality industry so learning how all the players involved in a hotel deal evaluate a project is crucial to my future growth. I look forward to applying what I have learned on my next venture."
Student Testimonial,
Financial Analysis of Hotel Investments
I am happy that the material covered touches issues that are part of my current job and responsibility. This course helped to understand my job better.
Lado Sakvarelidze,
Financial Analysis of Hotel Investments
"This course is a great opportunity to interact with our lodging industry colleagues from all over the world."
Student Testimonial,
Achieving Hotel Asset Management Objectives
"The online technology used works without any time delays or errors. The navigation and the different facilities of the course, like assessments, quizzes, discussions, and reading material, are excellent."
Student Testimonial,
Control of Hotel Real Estate
I really enjoyed my certificate program. It was the best organized learning I've come across.
Brian Brosnan - Owner, Principal at B3 HotelBroker - Owner/CEO at Bella Lanzarote Properties SL from Spain,
Certificate: Hotel Real Estate Investments & Asset Management

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