Project Financial Evaluation Of MJ Estate Hotel

MJ Estate Hotel Project is a combination of real estate development and hotel operationsof the integrated projects, this article will conduct this project financial evaluation. FoshanSanshui HS Real Estate Development Co., Ltd.(hereinafter referred to as "HS Company "),is a local advantage enjoyed regional real estate development company in recent years in thereal estate field accumulated some experience and money. In order to avoid the future growthof the real estate market slowed down so that enterprises thrown into passivity, HS companyintends to invest in the development and operation of real estate MJ hotel projects, seekingcross-industry restructuring breakthrough opportunities.HS company plans to implement the project in two stages: the first stage, the2013full-year construction period for the project, with the HS in the field of real estatedevelopment advantages in the existing land use rights of the premise, to completeconstruction of the hotel MJ estate construction, equipment purchase and assembly, as hoteloperators do hardware and software preparation; second stage, from2014to2023(of10years) for the project operation period, through scientific and reasonable hotel operators forthe project investors HS the company ’s operating income in the long run, and the end of theoperation period of the project on the land use rights and construction of fixed assets forprocessing, recycling real estate investment value.Therefore, MJ estate hotel project from a general real estate investment projects, butalso from the general hotel operation project, which includes real estate development,investment and value estimates, but also includes the hotel ’s long-term operating cash flowestimates. So, how to carry out this project scientifically financial evaluation and analysis offactors that affect the sensitivity of investment income, the development of risk measures forHS company provides decision support, it is necessary to solve this problem.This article first hotel project MJ estate industry environment and project profiles wereanalyzed to determine the project ’s initial positioning and planning; and through informationsearch, expert interviews and site visits, to collect the data needed financial evaluation andevidence; utilization of the data and the basis for calculating project construction period andoperation period cash flow, then this article applies Behavioral Asset Pricing Model (BAPM)estimate the capital cost of the hotel MJ estate was9.87%, and then calculated the net presentvalue of8.73million yuan project, the internal rate of return of12.48%. Next, consider theimpact of the project financial evaluation factors, the use of single-factor sensitivity analysisto identify susceptibility factors, combined with the variability of these factors, the use of multi-factor sensitivity analysis to identify risks of impact; Finally, for each risk factordevelopment of risk analysis and countermeasures, the final judgment by the projectfinancially viable.As the real estate investment and hotel operations integrated projects and uncertainty,this paper applies Behavioral Asset Pricing Model (BAPM), estimated cash flows directmethod, univariate and multivariate sensitivity analysis and other theories on the financialevaluation MJ Estate Hotel, hoping HS company is the development and operation of theproject decision-making reference.