Investments & Financing in Hospitality
Course Info
Code IND15-102
Duration 5 Days
Format Online
Course Summary
Within the hospitality industry, there are a multitude of factors that can influence a business’ success. One of these many factors is effective finance management and intelligent investments.
Establishing investments and gaining investors is vital in ensuring the future of a hospitality business. To be able to invest efficiently, you must be fully competent in several areas of finance, including measuring performance, creating and maintaining budgets, analysing cost principles, and implementing proficient risk management.
Without these necessary skills, the process of investing will be incredibly unreliable. Investments greatly rely on the knowledge and capabilities to assess a business’ current financial standing. If a business does not effectively analyse current costs and income, then an incorrect investment can potentially cause great harm to the business in terms of resources and reputation.
Management relating to finance and investment is crucial for a business to maintain their position within the current market, and investing is one of the guaranteed ways to see the business expand and flourish.
- To understand the importance of investments within the hospitality industry.
- To appreciate the role of finance management when it comes to investments.
- To assess the value of long and short-term investments.
- To review various methods of measuring investment performances.
- To analyse capital investment and financing decisions using up-to-date techniques.
- To identify opportunities and threats when deciding on an investment.
- To utilise different forecasting techniques to gain a thorough understanding on ideal investments.
- To effectively create action plans detailing investment influences, including key success and risk factors.
- To implement financial risk management.
This course is designed for anyone with the responsibility of managing finance or establishing investments to advance their business. It would be most beneficial for:
- Finance Managers
- Finance Directors
- Operations Managers
- Project Managers
- Financial Advisors
- Planning and Control Personnels
- Sales/Marketing Directors
This course uses a variety of adult learning styles to aid full understanding and comprehension. Participants will review real-world examples of investment portfolios to highlight areas of success and potential risks.
They will be supplied with all the tools necessary to conduct the given learning exercises. They will also participate in presentations, group discussions and practical activities to further develop their understanding of the taught content. In groups, participants will also have the opportunity to develop their own investment portfolio in relation to their respective roles so they can demonstrate that they comprehend the concepts of cost analysis, budgeting, and risk management.
Course Content & Outline
- The vitality of measuring business performance.
- Optimal methods and techniques for measuring performance.
- The purpose of financial statements.
- Assessing the different perspectives and their influence on performance – management, owners, and lenders.
- Calculating ratio analysis and using ratios as a system.
- Comprehending key financial principles – net present value (NPV), internal rate of return (IRR) and economic value added (EVA).
- Applying time-adjusted measures.
- Calculating NPV, IRR and EVA to expand the understanding of investment capabilities.
- Conducting sensitivity and scenario analysis.
- Assessing risks associated with changing circumstances and carrying out risk audits.
- Evaluating short and long-term sources of income.
- Understanding equity capital.
- Reviewing the types of debt.
- Explaining the weight cost of capital (WACC) and the capital asset pricing model (CAPM).
- Determine the most appropriate situations where using WACC and CAPM would be beneficial.
- Establishing effective finance management to manage risks and balance finances ahead of investments.
- Investigating cost behaviour and activities.
- The difference between fixed and variable costs and direct and indirect costs.
- Balancing product costs and period costs.
- The process of cost allocation and cost absorption.
- Effective methods of cost analysis – feasibility, effectiveness, cost-benefit, and cost utility.
- Conducting a ‘what if’ analysis using various programs.
- The purpose of budgeting and consequences of poor budgeting.
- The stages of establishing an effective budget.
- Influential factors of a budget.
- Analysing the types of investment portfolios and their advantages.
- Methods to effective portfolio management – active, passive, discretionary and non-discretionary.
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