Syllabus

Financial Analysis in the Hospitality Industry

1188-FIU01-HFT-4464-SECBHA-86179

    General Information

    Professor Information

    Professor Photo
    Robert Donato
    (305) 788-9714
    HM 210 (BBC)
    Mondays – Before or after
    class.

    Course Description And Purpose

    Understanding finance is vital to your success as a manager in this industry!

    In short, hotels (and all other businesses) are in business to make money! Your job as a manager is to run and efficient and profitable operation. Doing so requires you to understand the daily, monthly, and annual reports that you will read and will be required to produce for the hotel. Financial competence is one of the four tenets of managerial success. Topics discussed include decision-making based on ratio analysis, leverage, financing sources and other financial issues.

    This is a Hybrid course, what does this mean and what is the difference from a regular course?

    A hybrid course does not equal half the time, or even half the work. Rather, a hybrid course is separated into an in-class component and an out of class component. What this means for you is that our time in class will be focused on discussion and activities and key concepts related to our weekly topics, while out of class gives you time to read through the material and complete assignments according to your weekly schedule, but still allows you to communicate with me and with your classmates throughout the week via message and discussion boards.

    To prepare for success in this course, spend some time getting familiar with it. Learning how to navigate the course in Canvas will be a great help to you when it comes time to participate in discussions or to submit an assignment.

    Course Objectives

    At the conclusion of this course, students will be able to:

    • Use financial and managerial reports to judge managerial performance
    • Understand time value of money concepts and how these are used in investment analysis
    • Develop decision making models for analyzing investment projects.
    • Learn how to finance the firm.
    • Develop appropriate growth strategies for the firm.
    • Understand general valuation methods for publicly traded and privately held firms.
    • Explain financial ratios and how analyzing ratios helps managers manage.
    • To use financial reports to both, predict future financial outcomes, and create new business strategies to increase shareholder value.

    Learning Outcomes

    At the end of this course, the student should be able to:

    • Assess the past financial performance by analyzing financial and managerial statements.
    • Transform accounting data into financial ratios.
    • Describe different methods of debt and equity financing.
    • Compute present values and future values of single payments and annuities
    • Appraise new projects using NPV, IRR and MIRR methods.
    • Explain the significance of investment decision-making in the long term.
    • Explain how valuation can differ between different types of firms.

    Important Information

    Course Prerequisites

    HFT 3403 (or HFT 2401) Accounting for the Hospitality Industry.

    Review the Course Catalog for more information.

    Textbook

    Textbook Image
    Principles of Managerial Finance, Brief
    Chad J. Zutter, Scott B. Smart
    Publisher, 8th Edition, 2018
    ISBN-10: 0134476301
    ISBN-13: 9780134476308
    You may purchase your textbook online at the FIU Bookstore.

    ISBN for E- Text and Access Card: 9780134478104

    Note: Students must purchase access to Pearson MyLab!

    Policies

    Please review the FIU's Policies webpage. The policies webpage contains essential information regarding guidelines relevant to all courses at FIU, as well as additional information about acceptable netiquette for online courses.

    As a member of the FIU community you are expected to be knowledgeable about the behavioral expectations set forth in the FIU Student Code of Conduct.

    Technical Requirements and Skills

    One of the greatest barriers to taking an online course is a lack of basic computer literacy. By computer literacy we mean being able to manage and organize computer files efficiently, and learning to use your computer's operating system and software quickly and easily. Keep in mind that this is not a computer literacy course; but students enrolled in online courses are expected to have moderate proficiency using a computer. Please go to the "What's Required" webpage to find out more information on this subject.

    Additional Tools:

    1. MyLab online quiz and homework system

    • a. Register and access through CANVAS
    • b. Additional instructions on Student Registration document on Canvas.

    2. Textbooks with MyLab access

    3. Financial Calculator – Recommended brand: Texas Inst. BAII Plus Professional
    4. Harvard Business Review Case Studies (2 articles to purchase)

        Register at: https://hbsp.harvard.edu/import/554098

    Please visit our Technical Requirements webpage for additional information.

    Accessibility and Accommodation

    The Disability Resource Center collaborates with students, faculty, staff, and community members to create diverse learning environments that are usable, equitable, inclusive and sustainable. The DRC provides FIU students with disabilities the necessary support to successfully complete their education and participate in activities available to all students. If you have a diagnosed disability and plan to utilize academic accommodations, please contact the Center at 305-348-3532 or visit them at the Graham Center GC 190.

    Please visit our ADA Compliance webpage for information about accessibility involving the tools used in this course.

    Please visit the Canvas Accessibility webpage for more information:

    For additional assistance please contact FIU's Disability Resource Center.

    Academic Misconduct Statement

    Florida International University is a community dedicated to generating and imparting knowledge through excellent teaching and research, the rigorous and respectful exchange of ideas and community service. All students should respect the right of others to have an equitable opportunity to learn and honestly to demonstrate the quality of their learning. Therefore, all students are expected to adhere to a standard of academic conduct, which demonstrates respect for themselves, their fellow students, and the educational mission of the University. All students are deemed by the University to understand that if they are found responsible for academic misconduct, they will be subject to the Academic Misconduct procedures and sanctions, as outlined in the Student Handbook.

    Academic Misconduct includes: Cheating – The unauthorized use of books, notes, aids, electronic sources; or assistance from another person with respect to examinations, course assignments, field service reports, class recitations; or the unauthorized possession of examination papers or course materials, whether originally authorized or not. Plagiarism – The use and appropriation of another’s work without any indication of the source and the representation of such work as the student’s own. Any student who fails to give credit for ideas, expressions or materials taken from another source, including internet sources, is responsible for plagiarism. Please note that one of the measures of plagiarism is the Turnitin analysis percentage of 25% or more without citations.

    Learn more about the academic integrity policies and procedures as well as student resources that can help you prepare for a successful semester.

    Expectations of this Course

    It is expected that students will be engaged and fully participate in the learning process and the course material. I am here to help you succeed in this course and I value an open line of communication between me and my students. Students are expected to reach out to me with any questions or concerns about the materials or about their progress in the course.

    It is assumed that students have attained a level of maturity that motivates them to take responsibility for achieving the learning objectives of this course by using the learning tools provided. This course is designed to be completed successfully through the use of three learning tools:

    1. Doing the homework assignments on a timely basis
    2. Doing the reading assignments on a timely basis, and
    3. Attending all classes, taking appropriate notes and PARTICIPATING IN CLASS DISCUSSIONS. Since managers frequently engage in group presentations, as future managers you are expected to gain experience in developing and expressing your ideas before a group of your peers in the class. This being a learning environment, it is the instructor's intent to use class participation to enhance respect for each individual and help develop their self-confidence in a friendly setting. A student who does not use all three of the above tools appropriately and in a timely fashion runs the risk of falling behind and being unable to keep up with the rest of the class. More importantly, the student is wasting an opportunity to improve himself/herself.

    (A) If, after doing the reading and homework assignments, a student does not understand a topic that has been explained in class, it is the student's responsibility to visit the instructor during office hours to seek additional instructional assistance, or to seek such assistance from classmates, or from any other source that is available.
    (B) It is impossible to cover all assigned reading materials in class. Therefore, it is of particular importance that a student request further explanation of any assigned material that the student does not understand, and that is not covered in class. Students are responsible, in the relevant classes, and on the relevant examinations, for the corresponding material in the reading and homework assignments regardless of whether it is, or is not, covered in class.
    (C) In the unfortunate event that a student is obliged to miss a class for circumstances beyond his/her control, the student is responsible for taking any exceptional steps necessary to learn the material discussed in that class. Such steps may include obtaining assistance from classmates and/or requesting assistance from the instructor during office hours, going to tutoring sessions, or from any other available source.

    Course Detail

    Course Communication

    Communication in this course will take place via Email. Emails are sent to the students’ FIU email on record.

    Every effort will be made to respond to emails within 48 hours. Class assignments, homework, and exams will be graded within one week.

    Students should practice utilizing email in a professional manner. The following guidelines will be enforced during the semester when using e-mail. Failure to follow these guidelines may result in a late response:

    1. Subject line filled in relevant to content.
    2. Student signature and class information (required).
    3. Refrain from excessive use of capital letters.
    4. Use proper salutation.
    5. Use proper spelling, grammar, and punctuation.

    Discussion Forums

    Participating in discussion forums is an intricate part of this course. You are to respond to the weekly discussion question with an initial post on Monday of each week. The discussion question may comprise multiple questions, so be sure that your post addresses all questions. By Friday of the same week, you are required to respond to two of your colleague’s posts in a substantive fashion (see below for more information). Keep in mind that your discussion forum postings will likely be seen by other members of
    the course. Care should be taken when determining what to post.

    Discussion Forum Expectations:

    • There will be 13 discussion forums during the semester. One discussion per module.
    • Your original post should be at least 150 words.
    • Be sure to provide sources of information (references) as needed.
    • Read and respond in no fewer than 75 words to at least 2 of your classmate’s posts.
    • Correct grammar, spelling and punctuation are expected.
    • State your position on whether you agree or disagree with your colleagues’ statements.
    • Defend your position concrete examples from real website examples.

    Discussion posts will be graded according to the following rubric:
    Initial substantive post on time: 30 to 50 points
    First substantive post to colleagues: 15 to 25 points
    Second substantive post to colleagues: 15 to 25 points

    ** No credit will be given to response posts after the week has ended**

    Exams

    All Exams will be administered online on MyLab, which can be accessed directly from Canvas or via the Pearson website. Students will have access to the exam on the Monday after class of the exam week and will have until Sunday night 11:59 pm EST. of the same week to complete the exam. You will only have one opportunity to log in and complete the exam. You cannot log in twice, so please be sure you have the time needed to complete each exam.

    If a student fails to complete an exam by the due date, a 20-point grade deduction will be applied to the grade the student earns. Cases of unforeseen emergencies that involve the student or his or her immediate family, (e.g. sickness or death) will be evaluated on a case by case basis. Proper written documentation is required. Where possible, students are required to inform the instructor via email within 24 hours. Please note: if the event is planned (e.g. a wedding or family vacation) it will not be considered as an emergency and the student will be subject to the same point deduction. No exams will be accepted after the last day of class.

    Exam Expectations:

    • There will be 3 exams and 1 final during the semester.
    • Exams will be available on Monday until Sunday of the same week.
    • You will have 120 minutes to complete the exam.
    • Exam results will be available after the due date and you will be able to review the results.

    In order to mitigate any issues with your computer and online assessments, it is very important that you take the "Practice Quiz" from each computer you will be using to take your graded quizzes and exams. If you need further assistance please contact FIU Online Support Services.

    Assignments, Projects and Participation

    Assignments:

    • There will be 5 assignments valued at 3% each, totaling 15% of your final grade.
    • All assignments will be completed in Pearson MyLab.
    • Assignments will be available from the beginning of the course until the last day of the course.
    • All homework assignments received late are subject to a 20-point penalty.
    • All assignments are to be completed on an individual basis.

    Course Project:

    Hotel Financial Analysis
    Written Project Due: November 5, 2018
    PowerPoint Presentation Due: December 3, 2018

    Objective:
    To understand how to interpret financial reports and to use financial reports to both predict future financial outcomes, and create new business strategies to increase shareholder value.

    Assignment:
     

    Part I
    Select two publicly traded hotel companies to compare and contrast. Each group (max 5) will analyze and compare the financial statements of both companies. Your group will review the annual reports and 10K’s for 2017, 2016, and 2015. Be sure to all group members use the same forms. The areas of analysis must include the following:

    • An analysis overview which includes background information the company and the industry. This should include:
      • A summary of the firm’s history
      • The firm’s main customer’s and competition
      • Anything else you feel is important or that is unique to the company. 
      • A summary of the firm’s business strategy.
      • A financial analysis which should include:
      • Analysis of Assets and Liabilities using percentages and dollars.
      • Analysis of the organizations liquidity – current ratio, acid test ratio, accounts receivable turnover.
      • Analysis of solvency – debt/equity ratio and solvency ratio
      • Analysis of profitability. – profit margin, Flow-through, gross profit, operating income, net income
      • Analysis of the firm’s stock: Earnings per share and stock variance year over year. And P/E ratio

    o Compare and contrast the financial health of both companies

    Part II - Suggestions to increase shareholder value

    10 Ways to Create Shareholder Value and Reclaiming the Idea of Shareholder Value, which you will use
    to make recommendations for each company.

    • Research what initiatives that each company already implemented that creates shareholder value.
      • Recommend at least three methods from the article that each hotel could use to create shareholder value that they do not currently seem to be using.
      • Why do you recommend each method?
      • Suggest initiatives or projects to implement each method for each hotel.
      • What other areas will benefit from implementing each method?
      • A bibliography that reveals all sources of information you used. It is perfectly acceptable to use public information; however, it must be cited.

    Include in your summary:

    • A conclusion of your findings.
    • A forecast for each hotels future trajectory based on its history.
    • Include recommendations to improve predicted outcomes.

    THE LOG – To be presented in your slides
    Your team must download and use the Weekly Stock Log form to monitor and analyze the stock price of both selected companies each week. The last entry will be the Friday before the project is due. Be sure to distribute this information to all team members each week, to be used in our weekly class discussions. Be sure to fully complete the form and submit it as part of your final project.

    • Analyze the results of the $1million investment in both companies. Which performed better and why? Why did the second stock perform poorly?

    Submission requirements:

    Part I This minimum 10-page paper and PowerPoint presentation must be submitted to Canvas and turnitin in MS word and PowerPoint formats, and include spreadsheets as necessary. The project is due in its entirety, on the date specified by your instructor. Be sure to cite properly your references. Projects submitted after the due date are subject to a 20% grade penalty regardless of reason! One paper per entire group

    Part II Each entire group will present a brief summary of their project to the class using MS PowerPoint on the final day of class. You should include your stock log and analysis. Presentations should be a maximum of 10 minutes in length, and should sufficiently cover your findings. Please remember if your team member is not present, you will have to present the project alone.

    If a group member is absent that individual will be graded according to the performance of the team, but with a 20% grade deduction.

    All papers and presentations must observe APA formatting, be properly cited and include a cover page and reference page.

    NOTE: Your project will be checked for originality. Plagiarized work will receive a ZERO for the entire group.

    Project Grading Criteria: (See rubric for details)
    Content: 65%
    Creativity: 10%
    Presentation: 20%
    Participation & Teamwork: 5%
    Total:                                 100%*

    Course Project Rubric

    CATEGORY Excellent Good Fair Poor
    Content 65 points All key points of the assignment were
    addressed in a clear and concise manner.
    55 Points All key points of the assignment were
    addressed but required more content or were not clear and concise.
    45 Points Some key points of the assignment were
    addressed. The information was not clear and left room for doubt or ambiguity.
    Below 30 Points and below No key points were addressed. Group did not follow instructions. Information was unclear and difficult to understand.
    Creativity 10 Points The student exhibited "out of the box"
    thinking. The project had originality and a
    particular theme that carried throughout.
    8 Points The student showed thoughtful creativity but the theme/fashion did not flow throughout the project. 5 Points The student did not show originality.
    Key points were addressed in a manner that did not reflect a creative thread/theme.
    5 Points and below The project did not express

    any creative or original thought. No efforts were made to stand out.

    Presentation 20 Points The Student made an effort to make the
    presentation interesting. Information was easy to understand and delivery was fluid
    10 Points - The Student made an effort to
    make the presentation interesting. Some parts
    were unclear and delivery was fluid.
    5 Points - The Student made little effort to make   the presentation interesting. Information was unclear easy and delivery faltered. 2 points or less - The Student made no apparent
    effort to make the presentation interesting.
    Information was unclear and difficult to follow. Did not cover all topics required.
    Participation & Teamwork.
    Learning team evaluation scores are taken into consideration for this portion of
    the grade.
    5 Points – Student participated fully in both creating and presenting the project. 4 Points – Student participated but did not receive a
    perfect score from the team.
    3 points – Team evaluations indicate a lack of full
    participation and teamwork.
    2 points – Student did not actively participate
    as reflected in the team evaluations.

    Participation:
    Regular class attendance is essential for students to learn, practice and master the skills needed to succeed. To enhance the learning experience, all students are expected to participate in class discussions. Active engagement in class sessions is considered an important part of a student’s grade. Therefore, the best way for a student to obtain the maximum score for class participation is to attend every class session, actively participate in discussions, ask relevant questions pertaining to the lecture material, and take part  in any class or group activities that may be assigned by the instructor. Your participation score is comprised of your in-class participation and attendance. Each day that you are absent (unexcused) will result in a deduction off of your participation score at an average of 7.5% per occurrence (1/13 days).
    Note: Students seeking an excused absence must present proof (ex: a doctor’s note, or flight ticket in the case of an emergency).

    Grading

    Course Requirements Number of Items Points for Each Total Points Available Weight
    In-Class Participation 1 100 100 10%
    Discussion Posts 13 100 1300 10%
    Homework Assignments 5 100 500 15%
    Exams 3 100 300 20%
    Final Exam 1 100 100 15%

    Project - Written

    PowerPoint

    1

    1

    75

    25

    75

    25

    30%
    Total 25 N/A 2600 100%
    Letter Range (%) Letter Range (%) Letter Range (%)
    A 95 or above B 83 - 86 C 70 - 76
    A- 90 - 94 B- 80 - 82 D 60 - 69
    B+ 87 - 89 C+ 77 - 79 F 59 or less

    Course Calendar

    Weekly Schedule

    Module/Date In Class Out of Class

    Module 1

    8/20

    Orientation
    Topical Summary Ch. 1 – The Role of Managerial Finance

    In-Class Discussion and Activities

    1. Read Chapters 1,2,
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.

    Module 2

    8/27

    Topical Summary: Ch. 2 – The Financial Market Environment

    In-Class Discussion and Activities

    1. Read Chapters 3
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. HW # 1 Due
    9/3 LABOR DAY - NO CLASS  

    Module 3

    9/10

    Topical Summary: Ch. 3 – Financial Statements and Ratio Analysis

    Class Discussion and Activities

    Group and Co. Selection

    Begin Logging Your Stock Prices

    1. Read Chapter 4
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. Work on LT Charter
    4. Begin Logging your Stock

    Module 4

    9/17

    Topical Summary Ch. 4 – Long and Short Term Financial Planning

    In-Class Discussion and Activities

    1. Read Chapter 5
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. Submit your LT Charter Today

    Module 5

    9/24

    Topical Summary Ch. 5 – Time Value of Money

    In-Class Discussion and Activities

    1. Read Chapter 6/7
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. Test # 1 – Chapters 1-4

    Module 6

    10/1

    Topical Summary Ch. 6 and 7 Interest Rates, Bond Valuation, Stock Valuation

    In-Class Discussion and Activities

    1. Read Chapter 8
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. HW # 2 Due

    Module 7

    10/8

    Topical Summary Ch. 8 – Risk and Return

    In-Class Discussion and Activities

    1. Read Chapter 9
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.

    Module 8

    10/15

    Topical Summary Ch. 9 – Cost of Capital

    In-Class Discussion and Activities

    1. Read Chapter 10/11
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. HW # 3 - Due

    Module 9

    10/22

    Topical Summary Ch. 10 and 11 – Capital Budgeting Techniques and cash flows

    In-Class Discussion and Activities

    1. Read Chapter 12
    2. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    3. Test # 2 – Chapters 5 - 9

    Module 10

    10/29

    Topical Summary Ch.11 – Cash flows

    In-Class Group Meeting

    In-Class Discussion and Activities

    1. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    2. Finalize your projects
    3. HW # 4 - Due

    Module 11

    11/5

    Topical Summary Ch. 12 - Leverage and Capital Structure and

    Written Portion of Project Due

    In-Class Discussion and Activities

    1. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    2. Submit written project BEFORE the beginning of class.
    3. Test # 3 – Chapters 10 - 13
    11/12 VETERANS DAY - NO CLASS  

    Module 12

    11/19

    Topical Summary: 13 Payout Policy

    In-Class Discussion and Activities

    Final Exam Review

    1. Complete your weekly
      discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    2. HW # 5 - Due
    3. Final exam PRACTICE TEST

    Module 13

    11/26

    Topical Summary Ch.14 Working Capital and Current Assets Management

    FINAL EXAM OPENS

    1. Complete your weekly discussion post by 11:59pm on Monday. Respond to 2 colleagues by Friday of this week.
    2. Complete Final Exam
    3. Finalize your presentations.

    Module 14

    12/3

    Final Class
    Time and Room TBA
    Group Project Presentation Today
    1. Submit Presentations BEFORE the beginning of class. NO LATE ASSIGNMENTS ACCEPTED.
    2. Submit your LT Evals