Hotel Investment & Valuation: From RevPAR to NOI, Departmental Profits, Management Fees, FF&E Reserve, Hotel Cap Rates & Hold-Period Returns
Value a hotel as an investment, not just as a business. You will build rooms and other revenues from RevPAR, work down departmental and undistributed costs, deduct management fees and an FF&E reserve, capitalise NOI, compare lease vs management structures, and model a five-year hold with refurbishment and exit, with every cell checked as you go.
One-time payment · lifetime access · lessons, labs, exam and certificate included · no subscription.
About this course
This course values a fictional 180-key city hotel the way an investor does, step by step in spreadsheet labs that check every cell. You build room nights, rooms revenue and RevPAR month by month, add food & beverage and other revenue per occupied room, and turn departmental revenue into departmental profit with variable and fixed costs. You deduct undistributed expenses to reach GOP and GOPPAR, subtract base and incentive management fees, an FF&E reserve and fixed charges to reach NOI, and capitalise it at a fictional cap rate with a sensitivity grid. Finally you compare a lease with a management contract, price a refurbishment and model a five-year hold with exit value and IRR.
Lessons
- Revenue Build-Up: Room Nights, ADR, RevPAR and Other Revenue Pro
- Departmental Profit: Variable and Fixed Costs in Rooms, F&B and Other Departments Pro
- Undistributed Costs and Gross Operating Profit (GOP) Pro
- Management Fees, FF&E Reserve and Net Operating Income (NOI) Pro
- Valuation: NOI ÷ Cap Rate, Value per Key and Sensitivity Pro
- Lease vs Management Contract: Who Carries the Risk? Pro
- Refurbishment: Capex per Key, RevPAR Uplift, Payback and Value Creation Pro
- Five-Year Hold: Purchase, Exit at a Terminal Cap Rate, IRR and Chart Pro