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Nov 24, 2024

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Business Questions Outline A. Question 1 Match the Term with the appropriate statement B. Question 2 Marking the statements as True or False. C. Question 3 One real-life example of a hotel appraisal is CBRE Hotels Valuation & Advisory Services, the iconic Fontainebleau Miami Beach hotel in Florida. The five areas of the hotel appraisal and their contribution to the purpose and process of that valuation are as follows: property description and location, market analysis, income and expense analysis, replacement cost analysis, and valuation conclusion. D. Question 4 The real-life example of this question is the Subway franchise in the restaurant industry and the Hilton franchise in the hotel industry. The following are the six differences between these two franchises: location, business hours, staffing, equipment, menu/services, and guest experience. E. Question 5 A notable difference among the franchising fee arrangements of hotels and restaurants is that the former entails a more significant sum of upfront capital. Another difference is the higher ongoing royalties for hotel franchises. In conclusion, hotel and restaurant franchises maintain contrasting fee structures due to the varying investment required. F. Question6
Cash Flow from Operations $200,000 Cash Flow After Financing $85,000 Return on Assets 0.1 or 10% Financing Cost 0.0575 or 5.75% Return on Equity 0.5 or 50% G. Question 7 A real-life example of a hotel chain that uses different approaches to market segmentation is Marriott International. Demographic segmentation is one strategy of market segmentation used by Marriott International. Another market segmentation strategy that Marriott International uses is psychographic segmentation. Finally, Marriott International uses geographic segmentation, which divides the market based on location. H. Question 8 One example of a real-time hotel franchise is Marriott International, which offers franchisees its brand name and operating systems in exchange for a fee. An example of a real-time hotel management contract is the Hilton Management Services, which provides management services to hotel owners in exchange for a fee. Here are five differences between a hotel franchise and a hotel management contract: ownership, branding, fees, control, and support. I. Question 9
An example of a real-life Mortgage Agreement for a hotel company is the Mortgage Agreement between Marriott Hotels and JPMorgan Chase Bank. Here are five critical clauses in the agreement that Marriott should consider from the point of view of risk, default, breach, and company control: interest rates, default, collateral, prepayment penalty, and covenants. J. Question 10 Capital markets facilitate buying and selling securities such as stocks, bonds, and other financial instruments. Below are the different types of capital markets that a hospitality business can consider for financing: equity market, debt market, derivatives market, and commodities market. Two critical areas of difference between the different types of capital markets available for a hospitality business for financing are the risk and return profiles and the regulatory environment.
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