Center for Real Estate and Finance Tools
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The Cornell Center for Real Estate and Finance has developed a series of financial tools in support of the real estate investment and finance community. These tools are provided to help real estate investors make better decisions, our tools are focused on the hotel industry.
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Item HOTVal ToolkitLiu, Crocker H. (2020-01-27)HOTVal is a hotel valuation spreadsheet based on a regression model discussed in the Center for Real Estate and Finance at Cornell called Cornell Hotel Indices: Second Quarter 2012: The Trend is Our Friend by Crocker H. Liu, Adam D. Nowak, and Robert M. White, Jr. The model which will be continually updated, provides a rough estimation of the value of a hotel property once the user inputs information on whether the hotel is a large or small hotel, the year and quarter of the valuation, the state where the property is located, the number of rooms, the number of floors, the land area of the hotel property, the actual age of the hotel and whether the hotel is located in a Gateway city. For the first three inputs as well as the last input, if the user clicks on a cell highlighted in yellow, a pull down menu will appear to expedite inputting. The model is provided as a free public service by The Center for Real Estate and Finance at the School of Hotel Administration at Cornell University to academics and practitioners on an as-is, best-effort basis with no warranties or claims regarding its usefulness or implications. The estimates should be considered preliminary and subject to revision. *The January 2020 version updates the previous Hotel Valuation model, originally published in 2012, and provides valuation estimates up to and including the fourth quarter of 2019.Item The Commercial Lease Free Rent CalculatorLiu, Peng; Su, Luoyi; deRoos, Jan A. (2014-01-01)The Free Rent Calculator is a tool to help both tenants and landlords when negotiating concessions in a commercial lease. Using market rents as benchmark for negotiation, the actual lease contract information about the tenant’s desired free rent period (in months), tenant improvements, and moving costs; the tool calculates the effective rent that results. Information is presented both in tabular and graphical formats. Download the corresponding report: Guide to Using the Free Rent Calculator.Item Attribution Analysis ToolBoudry, Walter I.; Green, Matthew C.; Liu, Crocker H.; Ukhov, Andrey D. (2013-01-01)The attribution analysis spreadsheet is developed based on the model discussed in the Center for Real Estate and Finance at Cornell report called "Measuring the Value Added of Hotel REIT Managers Using MSA Benchmarks: A Return-Based Attribution Analysis Approach" by Walter I. Boudry, Crocker H. Liu, and Andrey D. Ukhov. Attribution analysis also known as style analysis allows investors and managers to assess the extent to which managers add value to their firm’s common stock returns. Given a set of passive indices, the excel worksheet constructs a benchmark portfolio that most closely replicates the actual performance of a manager’s portfolio over a specified time period. Management performance is then measured relative to this benchmark portfolio. For more detailed information on how attribution analysis is used with respect to the performance of real estate commingled real estate funds to ascertain if a manager possesses skill or is simply lucky in his or her acquisitions, please see the NCREIF. For a useful publication on how it is used in practice, please click here. .