Description
Questions
1) The process during which an investment decision is made is called the _____________ process.
2) How is a market index calculated in the STR Trend report?
3) Describe what a Soft Brand is, and in what situations is is an attractive option for a hotel owner. List and describe 4 benefits of a soft brand.
4)Describe why the Franchisors (brands) do not own their hotels.
5) If you were to start a job as an Asset Manager for an ownership group that owned multiple properties, what would you do on Day 1 and why?
6) Why do owners often select an independant management company to manage their hotel over the brand management company?
7) OTAs have managed to obtain higher margins from hotel companies than traditional travel agents. Please discuss – in a full paragraph – why this has occurred.
8) In 2016, Marriott merged with Starwood Hotels, creating one of the largest hotel companies in the world. If you were the Asset Manager for an ownership company that owned both Marriott branded hotels AND Starwood branded hotels, list and describe three concerns you would have with this merger.
9) What is the billboard effect?
10) Why will lenders only lend to a certain percentage of the value of a hotel asset, say 60%?
11) What is an “Area of Protection” in a Franchise Agreement and why is it important?
12) Why are REIT’s attractive investments for individual investors?
13) List and describe 4 attributes of a market you would want to investigate before deciding to invest in a hotel asset in that market.
14) Assume that the current Capitalization rate is 7%. If you were able to improve cash flow by $25,000, how much would the value of the hotel increase?
15) What does POR stand for?
16) Describe the use of benchmarks to drive performance. How are they established?
17) Please provide two examples of how transportation has impacted hotel development.
