Hotel Perennial

2017 ◽  
pp. 1-19
Author(s):  
Denise Akason ◽  
Bill Bennett ◽  
Franco Famularo
Keyword(s):  
Real Estate ◽  
Work Experience ◽  
Private Equity ◽  
Investment Decision ◽  
Core Competencies ◽  
Investment Strategy ◽  
Real Estate Finance ◽  
Real Estate Industry ◽  
Strategic Objectives ◽  
The North

The Hotel Perennial case puts students in the shoes of Dan Jameson, founder and CEO of a boutique real estate private equity firm called EL Investments (ELI), as he wrestles with the decision of whether or not to acquire the distressed Hotel Perennial, a 194-room hotel on the north side of Chicago, Illinois. When making the investment decision, Jameson (and students) must consider various factors: What is ELI's implicit investment strategy, and what are the firm's core competencies? What are Jameson's goals for growing ELI, and how might the acquisition of the Hotel Perennial fit with those goals? What opportunities and challenges might ELI face if it decides to acquire the hotel? How much would a buyer likely have to pay for the Hotel Perennial to achieve an attractive return? In addition to containing a hotel valuation and modeling exercise, the Hotel Perennial case also exposes students to several real estate industry concepts and terminologies, including those regarding the hotel sector, equity sourcing, and distressed investing. The case material assumes that students have taken an introductory real estate finance course or have relevant work experience.-Show students how an investment decision can go beyond simply “crunching numbers” and projecting an internal rate of return to include considering an individual's or firm's strategic objectives and core competencies. Students should think through how to

scholarly journals INVESTMENT STRATEGIES OF INSTITUTIONAL INVESTORS: SOVEREIGN WEALTH FUNDS VS ENDOWMENTS

2013 ◽  
pp. 117-126
Author(s):  
E. S. Biryukov
Keyword(s):  
Real Estate ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Private Equity ◽  
Investment Strategy ◽  
High Yield ◽  
Income Volatility ◽  
Sovereign Wealth Funds ◽  
The World

The paper considers two main original approaches to investing the assets of institutional investors (the total amount of their assets in the world is about 100 trillion dollars) – the one of Norway's sovereign wealth fund Global and approach of Yale's endowment fund. Fund Global with assets of $ 716 billion dollars is the largest institutional investor in the world, its strategy is based on the assumption that markets are efficient and their long-term growth lies in the balance of investment in stocks , bonds, and , since more recent time - in real estate. Financiers of Yale in the 1990s revolutionized the approach to investment, firstly, by reducing the proportion of stocks and bonds in favor of private equity and real estate, and secondly , by shift from investments in the domestic market to foreign markets. Not all institutional investors are ready to follow these strategies because of the risk of negative returns in times of crises, but in the medium- and long-term, these approaches allow to beat inflation. For example, Yale's endowment has grown since 1985 to 2012 from 1.6 to 19 billion dollars, and high yield allows to transmit 1 billion dollars (!) to the budget of the university annually. Endowment funds are one of the key sources of revenues of leading American universities. Analysis of the investment policy of endowment funds and sovereign wealth funds shows that fundamental changes in the concept of investing began to occur since the late 1980s - early 1990s . Institutional investors of both these types ceased to focus on conservative instruments - bonds and deposits , and use other options: Global - stocks , Yale – private equity , hedge funds, real estate investments , etc. With the expand of the spectrum of instruments in which the funds are invested the income volatility increases either, and therefore the institutional investors should be both transparent and explain to the public the motives of investment strategy changes.

Pengaruh Corporate Governance terhadap Keputusan Investasi

2009 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Maria Gorethi Berek ◽  
Elok Pakaryaningsih
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Stock Exchange ◽  
Investment Decision ◽  
Institutional Ownership ◽  
Governance Mechanism ◽  
Real Estate Industry ◽  
Board Size ◽  
Corporate Governance Mechanism ◽  
Asset Growth

The objective of this research is to examine the effect of corporate governance mechanism on investment decision. Using two ways of measurement, namely, board size and institutional ownership, corporate governance is hypothesized to have an effect oninvestment decision in which measured by asset growth, equity growth and debt growth.Using real estate industry listed at Jakarta Stock Exchange as the sample, the result shows that both institutional ownership and board size do not affect investment decision.Keywords: Corporate governance, investment decision, institutional ownership, board size

Hemisphere Development LLC: Betting on a Brownfield

2017 ◽  
pp. 1-9
Author(s):  
Denise Akason ◽  
William M. Bennett
Keyword(s):  
Investment Decision ◽  
Core Competencies ◽  
Investment Strategy ◽  
List Type ◽  
Brownfield Redevelopment ◽  
Firm Finance ◽  
Contaminated Properties

The case puts students in the shoes of Todd Davis, founder and CEO of a boutique brownfield redevelopment firm, Hemisphere Development, in 2010. Davis is wrestling with decisions and processes surrounding the potential acquisition and redevelopment of the former Delphi Automotive plant in Columbus, Ohio. When making the investment decision, Davis (and students) must consider various factors: What is Hemisphere's implicit investment strategy, and what are the firm's core competencies? How should the firm finance this transaction to achieve an acceptable return? Practice creatively structuring and financing unique transactions Describe the importance of baseline analysis in dealing with contaminated or potentially contaminated properties, and understand that the timing of baseline analysis can be crucial in determining the viability of a transaction State the importance of each type of constituent in public-private transactions Recognize the benefits of specialized/niche expertise in deal-makin

Commercial Real Estate-Specific Approaches and Ethical Dilemmas in the Relationship Between Stakeholders

2020 ◽  
pp. 16-27
Author(s):  
Ionica Oncioiu ◽  
Dan Adrian Popovici ◽  
Hrisanta Cristina Ungureanu ◽  
Florentina Raluca Bîlcan
Keyword(s):  
Real Estate ◽  
Stock Exchange ◽  
Investment Decision ◽  
Moral Dilemmas ◽  
Commercial Real Estate ◽  
Sufficient Information ◽  
Real Estate Industry ◽  
Corporate Social ◽  
High Degree ◽  
The Relationship

The chapter considers a similarity between Maslow's and Corporate Social Responsibilities pyramids. Various groups of stakeholders may have opposite interests in relationship with related companies, generating moral dilemmas. An analysis of organizational and economic accounting patterns in commercial real estate is provided with examples of companies listed to Stock Exchange. These common patterns are in accordance with all professional standards, but still do not offer sufficient information for an informed investment decision of an average investor. The choice of accounting policy is one of the reasons why real estate industry is perceived as a high risk, as a high degree of subjectivity applies through the choices of accounting treatment. Conflicts between stakeholders should be avoided due to the direct impact on a company's development perspectives and value.

The Search for Property: Institutional Investment in Real Estate

2017 ◽  
pp. 1-18
Author(s):  
Craig Furfine
Keyword(s):  
Real Estate ◽  
Investment Decision ◽  
Investment Strategy ◽  
Portfolio Theory ◽  
List Type ◽  
Modern Portfolio Theory ◽  
Public And Private ◽  
Institutional Investment ◽  
Real Assets ◽  
Private Real Estate

In the summer of 2013, Whitney DeSoto had just been hired as managing director for real assets at the Overton Pension Fund (OPF). Her task was to provide recommendations to the board of trustees to introduce real estate into the fund's portfolio, which to date had been invested solely in stocks and bonds. Combining her knowledge of modern portfolio theory with her institutional expertise in real estate, DeSoto needed to decide what fraction of the fund should optimally be invested in real assets. She then faced the task of deciding whether to invest in public or private real estate. If she thought private real estate belonged in the portfolio, she would need to identify the best investment strategy, the best vehicle, and ultimately the specific investments to recommend. Apply modern portfolio theory to the investment decision of an institutional investor allocating its assets between stocks, bonds, and real estate Understand the limits of portfolio theory in a real estate context Analyze the benefits/costs of investments in both public and private real estate Understand the various vehicles in which one can invest in private real estate Argue for a set of investments that offer individual benefits/costs relative to a theoretically ideal investment

Building the Entertainment Machine: Charles L. Mee's Time to Burn and the Performance of Postindustrial Decay in Chicago

2016 ◽  
Vol 57 (2) ◽  
pp. 200-217
Author(s):  
Aaron Krall
Keyword(s):  
World War Ii ◽  
Real Estate ◽  
Labor Force ◽  
New Economy ◽  
Real Estate Finance ◽  
World War ◽  
Factory Workers ◽  
Post World War Ii ◽  
The North ◽  
The City

During his first mayoral campaign in January 1989, Richard M. Daley insisted that “Everybody talks about bringing manufacturing back. There aren't going to be any more soap factories on Clybourn Avenue[.] … The city is changing. You're not going to bring manufacturing back.” Although this was a controversial statement at the time and Mayor Daley later embraced promanufacturing policies, it reflected an awareness of a fundamental economic shift in Chicago. By the late 1980s, the city had lost over half of its post–World War II manufacturing jobs, and companies were continuing to leave the city for more space, lower taxes, and a less expensive labor force. In fact, only months after Daley's comments, Procter & Gamble announced that it would close its fifty-nine-year-old soap plant at 1232 West North Avenue on the North Branch of the Chicago River, eliminating 275 manufacturing jobs in the process. Deindustrialization was under way, causing anxiety for politicians and pain for factory workers, but a new economy that was focused on real estate, finance, and culture was emerging in Chicago.

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