Which of the following is false regarding a Feasibility Study ? A lodging feasibility study is the most common type of economic study used in the lodging industry a. credibility of the feasibility study relies on the independence of the preparer used primarily to secure external funding for a project from a financial institution b. The It is C. d. A feasibility study commonly includes a sensitivity analysis as part of the study Which of the following is true regarding Hotel Valuation methods ? The Cost Approach would likely be used on a hotel like The Greenbrier a. The Sales Comparison Approach compares the sales of the subject property to comparable hotel sales revenues for the past several years b. c Income Capitalization Approach is considered the most useful as it capitalizes the future income stream of the property The Multiple of Room Revenues Approach discussed in class is used on complex, larger full service properties d. ) If you were buying a hotel, which would be the least beneficial to know in your negotiations ? The motivation of the seller The PIP requirements The remaining years left on the current owner's bank loan The remaining life of the brand franchise contract term a. b. C. d. ) In buying a hotel, you and your equity partners have a required rate of return of 18% and the bank will loan you 70% of the cost of the project at 5% interest. what would your Cap Rate or Cost of Capital be? a. b. . d. 8.9% 7.4% 18.0% Cannot be calculated with the data provided 21) if the NOI (Income Stream) of a hotel is $1,200,000 annually and the Cap Rate is 6%, what is the market value of the property? a. $20,000,000 b. 7,200,000 c. $11,320,755 d. $16,000,000