HTD 500 Lecture Notes - Lecture 5: Cash Flow, Analysis Of Variance, Obsolescence

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTD 500
• Professor: Richard Wade

Document Summary

Chapter 4 supply of transient accommodation- micro supply. Total guest room supply: consists existing area hotels + facilities currently under construction & proposed projects likely to be completed, sources of info about proposed hotels local building/ planning department. Economic development agencies chamber of commerce local hotel associations. Hotel managers real estate brokers lenders: key issue in evaluating proposed hotel: determine whether project will be developed. What is the current condition of hotel financing market: assign probability factor to the project based on chance of being developed total guest room supply for each projection year = total existing supply of hotel rooms. Actual room count: hotel consider primary competition. Total room nights available = total guest room supply * 365. Allocated to each market segment based on % relationship btw each segment"s latent demand & market"s total latent demand. Total usable latent demand: either total latent demand/ total accommodatable latent demand - unaccommodated demand.