Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Financial Strategy Options Chapter 5.

Slides:

Advertisements

Similar presentations

Chapter 9 Introduction Capital budgeting is the decision-making process used in the acquisition of long-term physical assets. Traditional capital budgeting.

Advertisements

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Hospitality Financial Management By Robert E. Chatfield and Michael C. Dalbor ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ.

Chapter 5 Introduction This chapter introduces the topic of financial mathematics also known as the time value of money. This is a foundation topic relevant.

Corporate Valuation: List the two types of assets that a company owns.

Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 5 Profit,

Business Math, Eighth Edition Cleaves/Hobbs © 2009 Pearson Education, Inc. Upper Saddle River, NJ All Rights Reserved 20.1 The Balance Sheet Prepare.

© 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected by Copyright and written permission should be obtained.

© 2007 Pearson Education. Upper Saddle River, NJ, All Rights Reserved.Mariotti: Entrepreneurship Entrepreneurship Chapter 9 Cash Flow: The Lifeblood.

1 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 4: Buying an Existing.

2-1 CHAPTER 7 Financial Statements and CF Balance sheet Income statement Statement of cash flows Free Cash Flow Performance Analysis.

© 2007 Pearson Education. Upper Saddle River, NJ, All Rights Reserved.Mariotti: Entrepreneurship Entrepreneurship Chapter 7 Using an Income Statement.

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chapter 17 Accounting,

Hospitality Management Strategies©2005 Pearson Education, Inc. By R.A. NykielUpper Saddle River, N.J Business Development Strategies Chapter 4.

Hospitality Financial Management By Robert E. Chatfield and Michael C. Dalbor ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ.

Entrepreneurship and Small Business Management

Chapter 8 Using Financial Statements to Guide a Business

Corporate Valuation.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Chapter Thirteen Financial Statement Analysis Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Entrepreneurship and Small Business Management

© 2014 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected by Copyright and written permission should be obtained.

Financial Strategy and Financial Objectives “Running by the Numbers”

Hospitality Financial Management By Robert E. Chatfield and Michael C. Dalbor ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ.

Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 6 Forecasting.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.

ROE / ROIC By Brendan Mathews. Return on Equity Definition: ROE = One year’s earnings / Shareholder’s equity Driven by three things: 1. Profit margins.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Financial Statement.

$$ Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 3.

Hospitality Financial Management By Robert E. Chatfield and Michael C. Dalbor ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks 10-1 Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Capital.

© 2007 Pearson Education. Upper Saddle River, NJ, All Rights Reserved.Mariotti: Entrepreneurship Entrepreneurship Chapter 13 Franchising, Licensing,

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks PRENTICE HALL ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 9 Time.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks 5-1 Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Financial Health of Starbucks Coffee Presented By: Author Coffee House opened in 1971 in a small town in Seattle, Washington In 1987 Starbucks expanded.

$$ Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Capital Budgeting.

1 CHAPTER 15: Corporate Valuation, Value- Based Management, and Corporate Governance Corporate Valuation Value-Based Management Corporate Governance.

Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 3 Financial.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.

$$ Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 5.

Chapter Seventeen The Near Banks Copyright © 2004 Pearson Education Canada Inc. Slide 17–3 Near Banks Trust Companies Mortgage Loan Companies Credit.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Corporate Valuation and Value- Based Management Corporate Valuation Value-Based Management Corporate Governance.

1 Chapter 7 Accounting for Financial Management. 2 What is free cash flow (FCF)? Why is it important? FCF is the amount of cash available from operations.

Entrepreneurship Chapter 14 Franchising, Licensing, and Harvesting: Cashing in Your Brand.

1 Business Math Chapter 20: Financial Statements.

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Strategies Chapter 7.

Financial Management Chapter 17.

Figure A--1 Thomas L. Floyd Digital Fundamentals, 8e Copyright ©2003 by Pearson Education, Inc. Upper Saddle River, New Jersey All rights reserved.

$$ Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 2.

Hospitality Financial Management By Robert E. Chatfield and Michael C. Dalbor ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.

Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Financial Statements.

CHAPTER Section 3.1 Types of Business Section 3.2 Types of Business Ownership Types of Business & Business Ownership.

Andrew, Damitio, Schmidgall Financial Management for the Hospitality Industry ©2007 Pearson Education, Inc. Upper Saddle River, NJ Chapter 5 Financial.

CHAPTER Section 13.1 Start-Up Investment Section 13.2 Obtaining Financing Financing Your Business.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks PRENTICE HALL ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Capital Budgeting.

Andrew, Damitio, Schmidgall Financial Management for the Hospitality Industry ©2007 Pearson Education, Inc. Upper Saddle River, NJ Chapter 4 A Brief.

Human Resource Management Strategies

© 2015 Pearson Education, Inc.

© 2015 Pearson Education, Inc.

Chapter 2- Starting a Proprietorship

LEADERSHIP Chapter 18 Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J

External and Internal Driving Forces

Communications Chapter 15

Presentation transcript:

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Financial Strategy Options Chapter 5

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Strategy Selection ROI = return on invested capital Cash generated strategies Franchising Management contracts

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HSM - ROIC Formula Current ROIC = Average ROIC is a function of: remaining mortgage balances per year life of the investment average of “X” years profit Profit Current Investment $

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Return on Invested Capital (% / $) High 1. Management contracts 2. Roll-over asset 3. Room addition 4. Franchises 5. Management contract with limited equity Low

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Return on Invested Capital (% / $) (continued) High 6. Buy out of negative leases 7. Acquisitions 8. Joint-venture with more than 50% + management contracts 9. Joint-venture with less than 50% + management contracts 10. Ownership (new construction) Low

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Fastest Method to Improve Return on Investment Capital Roll-over of asset Management contracts Room addition Buy-out of negative leases Buy-in to joint with a management contract

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Slowest Methods to Improve Return on Investment Capital New construction/ownership New construction/joint-venture Acquisitions/solo

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Cash Generation (% / $) Greatest/Fastest 1. Roll-over of asset 2. Ownership (established) 3. Acquisition 4. Joint-venture 50% + management contract 5. Joint-venture 49% or less + management contract 6. Management contract 7. Franchise Least/Slowest