the analyst could obtain the comparative data needed to produce accurate estimates of occupancy, revenues, and expenses, and to ultimately arrive at a market valuation.
Consider an emerging hotel market in South Asia, such as Vietnam, or a similar developing market that you are familiar with. We expect hotel supply to grow as the economy stabilizes and grows. However, because of an historical lack of research by the large international consulting firms and the concentration of ownership in the hands of a few companies, the market is considered very opaque. Data in developing markets can be difficult to obtain, which makes it difficult to calculate defensible inputs for the three hotel valuation software programs.
Consider each of the three programs—the RNAADR, the Fixed and Variable Revenues and Expenses (FixVar), and the Hotel Mortgage-Equity Valuation (HMEV) model. Create a post that includes the following:
- Suggest one piece of the necessary data that you believe would be difficult to obtain for each program.
- Explain the possible impact of this difficulty.
- Describe how you would propose to work around the problem.