Case ID: 800194     Solution ID: 1786     Words: 1661 Price $ 75

Astor Park Hotel Case Solution

Case Solution

Starwood Hotels, the world's biggest REIT, is keen on obtaining a failing to meet expectations lodging in the Pacific Northwest. Steve Goldman, Starwood's VP of acquisitions and advancement, is thinking about the amount to offer for the property and in what manner to reposition it.

Excel Calculations

·         Financial Assumptions for Repositioning of the Astor Park Hotel                                       

·         Occupancy

·         Average rate

·         RevPAR

·         Total revenue

·         Cash flows

·         Capital Expenditure for Repositioning

·         Repositioning as Westin

·         Repositioning as Sheraton

·         Repositioning as W

·         As Is

·         Cash Flow from Operations

·         Free Cash Flows

·         WACC

·         Terinal Growth rate

·         NPV

·         IRR

·         PI

·         NPV without terminal value

·         Weighted Average Cost of Capital                                       

·         Cash Flow Analysis   

Questions Covered

1.      Weighted Average Cost of Capital

2.      Summary of Results

3.      Sensitivity of W

4.      Sensitivity of Sheraton