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| Preface | |
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| Acknowledgments | |
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| Finance and the Hospitality Industry | |
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| Introduction | |
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| Hospitality Industry Financial Challenges | |
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| Chapter Structure | |
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| Chapter Topics | |
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| Financial Reporting | |
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| Financial Reporting | |
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| Accounting as the Language of Business | |
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| Financial Statements | |
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| Management Reports | |
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| Accounting System-CP[superscript 3] System | |
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| Analyzing Financial Statements | |
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| Analysis of Financial Statements | |
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| Readers of Financial Statements | |
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| Types of Analyses | |
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| Management Decision Making | |
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| Readers of Financial Statements Beware! | |
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| Managing Working Capital and Controlling Cash | |
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| Managing Working Capital and Controlling Cash | |
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| Working Capital | |
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| Cash | |
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| Growing the Business | |
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| The Need for Growth | |
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| Shareholder Value | |
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| Other Benefits of Growth | |
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| Growth Strategies | |
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| Increase Sales and Productivity of Existing Properties | |
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| Expansion of Physical Facilities | |
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| Franchise Brand Rights | |
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| Secure Additional Management Contracts | |
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| Mergers and Acquisitions of Competitors | |
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| Going Public | |
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| Financing Growth | |
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| The Need for Capital | |
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| Capital | |
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| Loan Terminology | |
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| Types of Loans | |
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| Sources of Loans | |
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| Equity | |
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| Hotel Financing Trends and Schemes | |
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| The Golden Age of Hotel Financing | |
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| Savings and Loans | |
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| Investment Tax Credits | |
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| Influx of Foreign Capital | |
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| Accelerated Depreciation | |
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| Real Estate Tax Shelters | |
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| The Tax Reform Act of 1986 | |
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| The Resolution Trust Corporation (RTC) | |
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| New Financing Schemes | |
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| The Time Value of Money | |
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| Concept of Time Value of Money | |
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| Time Value of Money | |
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| Market Value | |
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| Calculating Time Value of Money | |
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| Time Period and Compounding | |
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| Investment Analysis | |
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| Investment Analysis | |
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| Weighted Average Cost of Capital (WACC) | |
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| Discount Rate | |
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| Capitalization Method of Valuation | |
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| Investment Analysis Tools | |
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| Factors Affecting Tools of Investment Decisions | |
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| Hospitality Industry Applications of Time Value of Money Concepts and Skills | |
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| Time Value of Money Applications | |
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| Loan Questions | |
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| Equity Questions | |
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| Use of Sensitivity Analysis | |
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| Hospitality Applications | |
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| Using ROI, NPV, and IRR | |
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| The Investment Package | |
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| The Need for an Investment Package | |
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| Executive Summary | |
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| Fact Sheet | |
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| Business Plan | |
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| Source and Use of Funds | |
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| Photographs or Renderings | |
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| Third-party Confirmation | |
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| Project Budget | |
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| Qualifications of Project Team | |
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| Investment Analysis | |
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| Personal Financial Data | |
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| Evaluation of the Investment Package | |
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| Lenders: Debt | |
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| Owner/Investor: Equity | |
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| Crafting and Negotiating the Deal | |
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| The New Business Venture | |
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| The Business Entity | |
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| The Debt and Equity Mix | |
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| Negotiating Loans with Lenders | |
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| Principal | |
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| Interest Rate | |
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| Points Charged | |
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| Additional Collateral | |
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| Personal Guarantees | |
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| Other Lender Issues | |
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| Deal Sponsor's Goals | |
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| Negotiating the Equity Investment | |
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| Amount of Equity | |
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| Percentage of Ownership | |
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| Investor Hurdle Rates | |
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| Exit Strategy and Decision-making Power on When to Sell | |
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| Negotiating Skills | |
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| Be Prepared | |
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| Be Professional | |
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| Use Proven Selling Skills | |
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| Tying It All Together | |
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| Introduction | |
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| Hospitality Industry Financial Challenges | |
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| Financial Reporting | |
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| Analysis of Financial Statements and Management Reports | |
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| Analysis of Financial Statements | |
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| Analysis of Industry Reports | |
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| Applications of Financial Analyses | |
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| Managing Working Capital | |
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| Growing the Business | |
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| Shareholder Value | |
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| Increasing Shareholder Value | |
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| Other Benefits of Growth | |
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| Growth Strategies | |
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| Financing Growth | |
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| Types of Capital | |
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| Cost of Capital | |
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| Mix of Capital | |
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| Investment Analysis | |
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| The Time Value of Money | |
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| Investment Analysis Methods | |
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| Favorable or Unfavorable? | |
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| Factors Impacting the Analysis | |
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| Hospitality Industry Applications | |
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| Debt and Equity Negotiations | |
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| The Investment Package | |
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| What Lenders Want to Know | |
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| What Equity Investors Want to Know | |
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| Crafting and Negotiating the Deal | |
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| Business Decisions to Make | |
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| Negotiating the Loan | |
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| Negotiating the Equity Investment | |
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| Negotiating Skills | |
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| Index | |