Review the Final Project Scenario in Appendix A.
Develop a 1,400- to 1,750- word paper using Appendixes A and C as your guide. Address the following in your paper:
Compare the Dreschler Hotel to the competing hotels listed in the Trend Report in Appendix C. Identify any issues that may be affecting how the Dreschler Hotel is performing.
Describe two potential improvements or additions to the property described in Appendix C that may help increase business and overall profit.
Assume that you will need to secure $1,500,000 in capital to complete these improvements. You are able to borrow $1,200,000 but the remaining amount will have to be equity financed. You have determined that these improvements will generate the following cash flows over the next five years.
Year 1 - 300,000
Year 2 - 400,000
Year 3 - 425,000
Year 4 - 452,000
Year 5 - 485,000
What is the Net Present Value of the total investment assuming a 10% cost of capital?
If the equity investor is to receive their proportional share of the cash flow what will be their Internal Rate of Return? You must show all your calculations to get full credit.
Explain two benefits and one disadvantage of converting the property into any one of the following financial schemes: timeshare, condominium, or mixed-use.
Choose a new name for the hotel to reflect the upgraded features that have been identified in this project. Make sure the name clearly reflects the upgrades or improvements you have made.
Create a 2- to 3-slide Microsoft PowerPoint presentation that provides interested guests an imaginative description of your new property's features and amenities. Also include an uncopyrighted image that demonstrates the vision you have for the property.
Associate Level Material
Appendix A
Final Project Overview and Timeline
Final Project Overview
The final project for this course is comprehensive, designed to apply all you have learned in this course to relevant issues concerning financial hospitality management. This assignment provides a personal sense of just a few of the financial issues incurred by many hospitality businesses today. Additionally, it demonstrates how to develop a plan to remedy that problem. This project incorporates your foundational knowledge-resulting from completion of discussion questions, CheckPoints, and assignments-into a final paper and Microsoft® PowerPoint® presentation. The scope of this project leads you to identify issues, create a plan for improvement, provide funding options, and thoroughly explain the benefits of your ideas.
Once you complete the project, the property will offer new features and boast an entirely different description. You may even choose a new name to give the hotel a fresh start. Your goal now is to figure out how to make it all happen.
Final Project Scenario
Within the last year, occupancy levels and overall revenue of the Dreschler Hotel have not been keeping up with projected numbers.
Although figures are higher than they were this time last year, so are the total costs. In fact, the hotel has ended up losing a small amount of money over the past 12 months. Luckily, the general manager saved enough money to help the Dreschler survive for a short time. Unfortunately, the owners are beginning to worry that, if this trend continues, they will encounter serious financial trouble. As a result, your consulting services have been employed to formulate a plan to help prevent the owners from filing for bankruptcy.
Final Project Timeline
You should budget your time wisely and work on your project throughout the course. As outlined below, some assignments in the course are designed to assist you in creating your final project. If you complete your course activities and use the feedback provided by the instructor, you will be on the right track to successfully complete your project.
Suggested in Week One: Read the final project description in Week Nine.
Suggested in Week Three: Review Appendix B. Research online how to calculate hotel occupancy percentages, average daily rates (ADR), and revenue per available room (RevPAR). Consider how occupancy and ADR affect the RevPAR. Additionally, assume the role of a hotel owner. Begin thinking about options you may have to increase the RevPAR and overall revenue for the Dreschler Hotel.
Suggested in Week Four: Begin to think of the financial options available to you if you have no working capital but need to improve or upgrade the property to remain competitive with other hotels in the area.
Suggested in Week Five: After completing this week's activities, you should understand the need to continuously think of areas where you can improve a business. Begin to think of potential improvements you would make to the Dreschler Hotel to make it more appealing to all types of travelers.
Suggested in Week Six: During this week's activities, you will be examining different types of financial schemes available and the two types of working capital. Begin to think about the funding options available to the Dreschler Hotel, assuming there is no working capital to put toward these projects.
Suggested in Week Eight: Review Appendix C, which you will use as the basis for your final project. Begin thinking of a new name for the Dreschler Hotel and any specific changes you would like to make.
75 words or more..
Which concept presented you with the most problems or challenges? Conversely, which concept did you find the easiest to understand? Which section--whether you prefer it or not--do you feel would be most beneficial to a hotel or restaurant manager? Is there more to running a hospitality business than you had previously thought? Why or why not? Are you now more hesitant or more encouraged to be in a managerial role using these concepts on a day-to-day basis?