ItemA Hybrid Approach to Short-term RentalsGregor, Robert (2023-09-25)The owners of a mom-and-pop hotel in Lake George, New York, devised and tested the idea of promoting their property both through traditional hotel channels and by listing the property’s rooms on Airbnb. To make the property more attractive to Airbnb customers, management downsized the hotel from 60 rooms to 35 rooms and added kitchenettes throughout. Even considering conversion costs, financial results were initially promising, with improved occupancy, average daily rate, and funds from operations. In addition to the financial outcomes, the hybrid approach addresses several social concerns about the Airbnb model. Most critically, the property is operating on a parcel zoned for commerce of this type, rather than occupying a house in a residential neighborhood. Consequently, the risk of additional regulation is low, and the property does not add to the real estate turbulence resulting from the purchase activities of would-be Airbnb investors. Finally, since the property is, in fact, a hotel, it is staffed around the clock to address any issues that arise, thus addressing another issue for Airbnb—namely, absentee rentals where guests may conduct rowdy parties. ItemHotel Il San Pietro di Positano: Strengthening an Extraordinary Independent BrandDev, Chekitan; Stroock, Laure Mougeot (2022-11-02)It was mid-June 2022 and Vito and Carlo Cinque, two brothers at the helm of the world-renowned Italian 5-star hotel Il San Pietro (ISP) since 1996, had reasons to rejoice. Located in Positano on the Amalfi Coast, south of Naples, their 56-room iconic property was enjoying its best year, as unprecedented numbers of pandemic-exhausted travelers were flocking again to Positano. Charging an average rate of €1,882 each night for a room, the hotel boasted a 99.9% occupancy rate1 and was fully booked until mid-October. This was in stark contrast with the preceding two years during the Covid-19 pandemic, when ISP struggled to keep staff onboard and attract guests as Italy endured a catastrophic drop in tourism. ItemReal Estate: Private Equity Investment in ShanghaiLiu, Peng; Loh, Terence (2021-10-22)In this case study, you are a consultant engaged to assess whether to invest in Project Innov Star, a Class A office project in Zhangjiang Shanghai, which currently is stalled. The hold up, and thus the opportunity to invest, arises due to a difference of opinion between the two partners. The majority investor (80%) seeks to sell its share, while the 20-percent minority investor would be willing to complete construction with a new partner, or might be open to selling the entire project. Your analysis will yield one of three recommendations: (1) pass on the investment, (2) purchase the majority, 80-percent share, or (3) purchase the entire project and engage a new construction partner. As part of the analysis, you are required to determine the value of the project, which is essentially the value of the land. ItemNeemrana Hotels: Building a Heritage Hospitality BrandDev, Chekitan; Stroock, Laure Mougeot (2020-10-06)Neemrana Hotels, a heritage hospitality brand in India with a portfolio of 18 unique historical properties, was celebrating its 28th anniversary. Aman Nath (Exhibit 1), its founder and co-chairman had reasons to be proud, as his company was not only one of the most successful heritage hotel brands in India and recipient of dozens of hospitality and architecture awards, but it was also credited for revitalizing heritage tourism in India.