Make a reservation to join experts Art Marshall and Scott Brush for this five star session where they'll give a historical perspective on how the lodging industry has developed and an outlook on the current and future health of the industry, including the cycle of product supply. Avoid the pitfalls (and the bedbugs) with a discussion on the relationship between the real estate component and an operating business entity and how it impacts the valuation analysis. This webinar is completely booked with insight on some of the complexities of valuing a hospitality business, including the unique structure of industry financial statements, industry benchmarking terms used to determine value, brand/franchise data, and sources of additional industry information. Check in to this session and successfully un”lodge” the value of your next hotel valuation.

Evolution in the Industry

• Types of Hotels
• By Location (using PKF/STR divisions)
• By Demand Source
• Quality/Class/Price level (using STR divisions)
• Affiliation

Ownership Components of a Lodging Business

• Real Estate Ownership may be in various forms: Real Estate LLC, REIT, Corporate, Private, General Partnership
• Management (Operating) Entity may also be in various forms: Brand Manager, Third Party Operator, Owner Operator

Brand/Franchise

• Provides Reservation Support
• Sets operating, physical plant, and minimal performance standards
• Charges an initial upfront fee and ongoing fees (royalty, marketing, loyalty programs and others) based on sales.

Lodging Industry Terminology

• Uniform System of Accounts for the Lodging Industry (USALI) 11th Edition 2014
• Primary Metrics
  • Occupancy percentage
  • Average daily rate (ADR)
  • RevPAR (Revenue Per Available Room)

Current Status of the U.S. Hotel Industry

• Occupancy, ADR and RevPAR
  • 2015 Full Year
  • 2016 Year-to-Date
  • Historical Trends
• Room Supply and Demand
  • U.S. Pipeline (In Construction, Final Planning, Planning)
• Type of hotels being developed
  • Industry Outlook 2016 and 2017

Hotel Profit & Loss Statements

• Hotel P&L Format

Lodging Valuation Approaches

• Asset Approach
• Market Approach
• Income Approach
  • Discounted Cash Flow

Valuation Example

Hospitality Resources

• Gain a better understanding of the various types, brand affiliations, tiers and quality/class levels of the U.S. hotel industry
• Become familiar with the components of the lodging industry including real estate ownership, operations management and franchise or brand affiliation, and the economics of how all three interact.
• Learn specific industry terminology and how these terms impact revenue, expenses and profitability – key elements of a reliable projection or forecast.
• Learn about the Uniform System of Accounts for the Lodging Industry, enabling them to better understand lodging financial statements.
• Get exposed to the current status of the U.S. lodging industry – where are we in the cycle and what is in store for the future?