Stephen Rushmore Releases New Hotel Valuation Software, Providing Industry Executives The Edge On Evaluating Hotel Properties
Software Manual and One Model Available Free on the Web
Stephen Rushmore, President and Founder of HVS International, has released Hospitality Valuation Software: Hotel Market Studies, Financial Projections & Valuations, a set of sophisticated Excel models designed to perform hotel/motel market feasibility studies and valuations. Users can access the program by logging onto the HVS International web site and downloading the complimentary software manual and one of three models at:
Based on the in-house software created by HVS International, a global hotel consulting organization, Hospitality Valuation Software assists hotel owners, lenders, operators, consultants, and appraisers in evaluating the dynamics of hotel supply and demand, forecasting revenue and expense, and developing an estimate of value.
"We want everyone to have access to our computer models so industry players can make informed decisions on when and where to invest their funds and efforts," remarked Rushmore. "Hotels are high-risk investments, so anything that facilitates a more thorough analysis can generally produce a competitive advantage for the user."
Hospitality Valuation Software was adapted by The Cornell Hotel School professor Jan deRoos from the actual models employed by HVS International. The set of Excel programs includes a detailed instruction manual incorporating a demonstration case study. "While this software is the most sophisticated set of hotel market analysis and valuations models I have seen, we have made it extremely simple and user-friendly," explained deRoos.
The first model is a Room Night Analysis Program, which quantifies the local market demand and measures the impact of new lodging supply. Using a sophisticated penetration algorithm, the relative competitiveness of each existing and proposed hotel is measured to determine the overall market dynamics. The final output consists of a ten-year occupancy projection for the subject property and its competitors. An important feature of the room night analysis program is the ability to evaluate the adverse impact on a property's occupancy from the addition of one or more new hotels to a market.
The Income and Expense Forecasting Program consists of a detailed ten-year profit and loss statement utilizing the Uniform System of Accounts for Hotels. This model works for both existing and proposed hotels, and incorporates a highly accurate fixed and variable forecasting routine that is easily adapted to any type of lodging facility. The program can also be used to develop annual operating budgets.
The Hotel Valuation Model takes the output from the Income and Expense Forecasting Program and converts it into an estimate of value. The discount rate is developed from the cost of debt and equity capital, and the value is calculated using either a loan-to-value or debt coverage approach. The output proves the value by showing the calculation of the unleveraged property yield, the leveraged equity yield, the mortgage yield, and the projected cash flow to equity. This cutting-edge valuation program works because it utilizes real world investor inputs rather than appraiser-divined capitalization and discount rates.
To purchase the complete software program (Room Night Analysis, Fixed and Variable Income and Expense Forecasting, and Hotel Valuation Models), contact Joan Raffetto at 516-248-8828, ext. 231, or
Hospitality Valuation Software was developed by Hotel Valuation Software, Inc., which is in no way associated with any HVS International entity. Use of these programs is subject to the terms of the software license agreement.