Paid Publication Hotel Valuation Software: Version 4.0
Hotel Valuation Software Version 3.0 with Tabs is comprised of four sophisticated, state-of-the-art software models for performing hotel market studies, financial projections and valuations. Developed by Steve Rushmore and Suzanne Mellen of HVS and Professor Jan deRoos of the Cornell Hotel School, this software package is used by leading hotel chains and lenders around the world to assist with their hotel investment decisions. HVS is the exclusive distributor of the advanced "tabbed version" of the software. The tabbed version enables more enhanced financial analyses by providing user access to the calculation pages of the software. The flash disk contains the recently released version 3.0 of Hotel Valuation Software with Tabs which runs on Microsoft (not Apple) operating systems with Windows 7 and Excel 2007 or newer. Also included on the flash disk is the previous version 2.5 of the software which runs on both Microsoft and Apple operating systems.
Consisting of three modules, Hotel Valuation Software (HVS) significantly enhances the user’s ability to analyze and process data into a hotel market study and valuation. The three modules are described as follows:
-
Market Analysis, Occupancy and Average Daily Rate Forecasting Module (Room Night Analysis - RNAADR V3)
The Room Night Analysis program performs several functions:
- It enables the analyst to quantify the demand for transient accommodations within a defined market area. The program identifies both accommodated hotel demand and latent demand which includes unaccommodated and induced demand. This demand can be projected into the future.
- It identifies the existing and proposed supply of hotel rooms and enables the user to evaluate the various competitive factors such as occupancy, average room rate and market segmentation of all the hotels in the local market.
- Calculates the area-wide occupancy and average daily rate as well as the competitive market mix. Using competitive indices which measure the relative competitiveness of each hotel based on market segmentation the program produces a ten-year forecast of occupancy for each existing and proposed hotel identified by the analyst.
Based on the room night analysis the software will perform a projection of average daily rate based on a build-up segment by segment rate analysis.
-
Income and Expense Financial Forecasting Module (Fixed Variable FIXVAR V3)
The key to any hotel market study and valuation is a supportable forecast of revenues and expenses. Hotel revenue and expenses are comprised of many different components that display certain fixed and variable relationships to each other. This program enables the analyst to input comparable financial operating data and forecast a complete 11-year income and expense statement by defining the following inputs:
- The projected future occupancy and average rate levels for the subject hotel.
- Base year operating data from the subject property or a comparable hotel.
- Expected inflation rates for revenues and expenses.
The output 11-year income and expense statement is formatted in accordance with the Uniform System of Accounts for Hotels.
-
Mortgage Equity - DCF Hotel Valuation Model (HMEV Refi V3 and HMEV VarHoldV3)
A discounted cash flow valuation model utilizing the mortgage-equity technique forms the basis for this program. By inputting the terms of typical hotel financing, along with a forecast of revenue and expense, the program determines the value that provides the stated returns to the mortgage and equity components. The software allows the following assumptions:
- Mortgage component inputs - interest, amortization, loan to value ratio, payments per year, and refinancing of debt
- Equity inputs - equity yield
- General inputs - terminal capitalization rate, selling expenses, holding period, cash flow and inflation
The model values the cash flow based on the following three measures- loan to value ratio, debt coverage ratio and debt yield. There are two valuation software modules- one allows variable holding or projection periods and the other incorporates an inputted refinancing at some point during the projection period.
-
Tabbed Version of Hotel Valuation Software
Hotel Valuation Software comes in two versions - a tabbed version and a version without tabs. By purchasing the software through HVS, you will receive the enhanced tabbed version of the software. The tabbed version contains tabs along the bottom of each page that enables users to get into the calculation sections of the software. This allows you to view the actual calculations taking place within the software so you can make modifications when appropriate. For example, in the FIXVAR software which projects income and expense you can adjust the reserve for replacement calculation so the reserve for replacement percentage will build up each year, for example 3% in Year 1, 4% in Year 2 and 5% thereafter. In the untabbed version you cannot make these modifications.
This enhanced version of the Hotel Valuation Software is significantly more powerful than the untabbed version.
Additional Resources
In addition to Hotel Valuation Software, your flash disk contains several valuable bonuses which will provide tools and resources to enhance your skills and knowledge of the hotel and travel industry.
- Hotel Valuation Software (HVS) Live Instruction Seminar - Sit in on one of Steve Rushmore's seminars where he explains the logic and calculations behind Hotel Valuation Software using a case study. Steve explains the inner working of the three software models; the supply/demand and occupancy forecasting program, the 10-year income and expense projection program and the mortgage equity DCF valuation model. Experience the rare opportunity of listening to the actual software creator as he explains its use.
- HVS Library - Access more than 1,250 articles, research publications and textbooks written by the industry's leading professionals at HVS. These publications are considered essential reading for hotel owners, operators and investors. Every topic related to the hotel and travel industry is covered including valuations and market studies, management contracts and franchising, market overviews, human resources, economic trends and cycles, gaming, architecture and interior design, asset management, finance and transactions, food and beverage, hotel management, shared and fractional, risk management, convention centers, parking, sales and marketing. The HVS Library is fully searchable and user friendly. The articles and research can be downloaded from the flash disk and distributed to your business associates.
- Hotel Market Study and Valuation Seminar - Steve Rushmore has given hundreds of seminars to thousands of hotel owners, investors, and consultants throughout the world. His most popular presentation is the one-day seminar "Hotel Market Studies and Valuations" which teaches procedures and techniques. The flash disk contains Steve's complete PowerPoint presentation and hand out materials.
- HVS Demonstration Appraisals - As the leading hotel consulting firm performing thousands of hotel market studies and appraisals each year throughout the world, HVS has developed state-of-the-art hotel appraisal methodologies and software. Peruse six examples of HVS studies demonstrating the sophisticated analysis and forecasting techniques and procedures HVS pioneered.
- Hotel Investment Handbook - This "how-to" guide shares information on hotel investing, including from how to buy a hotel, how to negotiate a management contract, financing, selling a hotel and more.
For questions or to request information, please contact Steve Rushmore.
New textbook and software written and developed by Steve and Stephen Rushmore along with John O'Neill published by the Appraisal Institute shows how hotel market studies, financial projections and valuations are performed throughout the world. Hotel owners, operators, investors and lenders will find this book invaluable in analyzing hotel investments and financial performance.
What's new in this edition unlike its previous versions is the inclusion of the HVS Hotel Valuation Software, four state-of-the-art programs that enables hotel appraisers, consultants, owners and lenders to perform highly sophisticated hotel market analyses, financial projections and valuations. Very few books come with the software needed to perform the analyses set forth in the text. This package contains everything you need to perform a sophisticated hotel market study and valuation.
Hotel Market Analysis and Valuation: International Issues and Software Applications
The newest edition of Steve Rushmore's textbook with software provides an historic overview of the world-wide hotel industry with discussion of the various economic cycles and trends impacting hotel supply and demand. It details the steps for performing a hotel market study and valuation and the types of data required to perform a proper analysis, while also taking into consideration local competitive supply, occupancy and average rate, relative competitiveness of each hotel, and the specific location of the asset. It also includes an addendum that contains a complete reference library of hotel data and data sources from around the world.
The book is available in either hard copy or as a pdf download