tailieunhanh - Lecture Hospitality financial management: Chapter 10 - DeFranco, Lattin

The tenth chapter delves into the need for an investment package. The authors discuss how a professional investment package is prepared to gain approval for funding. The components of an investment package and evaluation of investment package in explained in detail. | Chapter 10 The Investment Package Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview The Need for an Investment Package Components of an Investment Package Evaluation of an Investment Package Lender Owner/Investor Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Need for the Investment Package First step in gaining approval for funding is the preparation of a professional investment package The investment package should tell the story and sell the project to capital sources Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Parts of the Investment Package Executive summary Fact sheet Business plan Source and use of funds statement Photographs or renderings Third-party confirmation Project budget Qualifications of the project team Investment analysis Personal financial data Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Executive Summary Brief recap of the project stating: How much capital is needed Why the request should be approved Major operational and financial benefits of the deal When seeking debt financing the executive summary should include: Key loan terms being requested Highlight the project’s LTC, LTV, and DSCR Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Fact Sheet One-page description of the key components of the project Should succinctly answer the basic questions the reader wants answers to with regard to the project Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Sample Fact Sheet Hotel Information Location The Huntington Hotel is located in downtown Charleston, on the peninsula, one mile northwest of the city’s historical district. The hotel enjoys a wonderful location, overlooking the river and is only one block from the city’s minor league baseball park. The Citadel is one mile to the north and the state’s largest medical complex is only half a mile to the south. US Highway 17, the main highway providing access to the peninsula from the . | Chapter 10 The Investment Package Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview The Need for an Investment Package Components of an Investment Package Evaluation of an Investment Package Lender Owner/Investor Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Need for the Investment Package First step in gaining approval for funding is the preparation of a professional investment package The investment package should tell the story and sell the project to capital sources Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Parts of the Investment Package Executive summary Fact sheet Business plan Source and use of funds statement Photographs or renderings Third-party confirmation Project budget Qualifications of the project team Investment analysis Personal financial data Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Executive Summary Brief recap of the project stating: How much capital is needed Why the .