Hotel investments, which have far-reaching impact on hotel companies' long term financial health, will continue to be the primary mode for hotel companies' survival and growth. However, top management has been facing a changing industry and investment community to which they are required to adapt. Consequently, the old fashioned gut-feeling types of decision making are no longer appropriate for sound hotel investments. It is the primary objective of this study to develop a model for hotel investment risk assessment and appropriate cost of capital estimation in the middle-price and economy hotel segments for the investment's capital budgeting purposes. The hotel investment risk assessment and cost of capital estimation model research was conducted using the focus group interview, the Delphi Technique, and the case study. As exploratory research, the focus group interview was conducted with the participation of hotel executives and general managers, hotel owners, and bank lenders from the Virginia area. Key investment risk factors were identified from the opinions of this panel, which represented different perspectives and needs. The summary findings laid out the foundation of the Delphi Technique survey_ The Delphi survey was conducted among hotel general managers, hotel executives, and hotel owners within three hotel chains in Virginia, Maryland and Delaware. They consisted of a professional panel of 19 members. The first task accomplished by the panel was to further validate the key risk factor profile developed by the focus group interview. The second task was to rate the level of influence of the identified factors using a five point likert-type scale (5=very influential, 1 = little influential). Three rounds of the survey allowed the panel members to achieve a consensus on the issues. A total of 36 hotel key investment risk factors in the middle-priced and economy segments were agreed to be included in the investment risk assessment framework. In addition, a ranking of all factors was produced based on each factor's importance and influence level. All the factors received a higher than average (rank scale 3) ranking. The empirical finding provided a valuable framework for the subjective risk assessment in the cost of capital estimation model. / Master of Science

This study is about assessing security measures in the hotel industry in Gauteng Province, South Africa. The researcher divided Gauteng into five regions (Mogale City; Tshwane; Central Johannesburg; Ekurhuleni; and Sedibeng). The researcher adopted the qualitative approach where one-on-one interviews were conducted with the participants. There were 20 hotels that were selected to participate in the study. From the 20 hotels, where only one participant from each was involved, the researcher conducted one-on-one interviews with twenty (20) Security Managers or anybody who was responsible for the security functions at senior level at the hotels. A semi-structured interview schedule with probing questions was used as a guide to obtain comprehensive information about security measures from the participants. Random sampling approach was used in the study. From the population of 70 hotels in Gauteng, where the sample of twenty (20) was derived, was the group within which the researcher was interested in for obtaining data. Since Gauteng Province is huge, the researcher only conducted research within the four metropolitan areas consisting of Johannesburg, Mogale City, Tshwane and Ekurhuleni. The aims and objectives of the research study are as follows: • Outline the nature of business that hotels are engaged in; • Investigate if there are security policies and procedures as part of effective security component; • Examine what important assets need to be protected at hotel facilities; • Uncover the risks facing assets in the hotel facilities; • Determine what incidents of loss took place in the hotel facilities; • Examine what assets are mainly targeted by perpetrators at hotels; • Uncover the profile and modus operandi of hotel perpetrators; • Examine the effectiveness of security measures and systems that are put in place at hotels; • Explore if security systems are integrated at hotels; • Determine the frequency of conducting risk assessment at hotels; • Check if pre and post-employment screening is conducted for security officers at hotels; • Find out if the guests inquire about security measures when making reservations; and • Find out how guests feel about security at the hotel facilities. The study revealed the following: • Hotels are business entities which attract different types of guests, nationally and internationally. Different services that are offered at the hotels which make hotels the main choice of destination to the guests are: accommodation for sleeping, leisure, and work commitments such as workshops or conferences. The study also revealed that most of the clientele comes from the corporate sector. • There are basic security measures in place in the hotels. These range from security policies, security procedures, physical security (for example, technological security such as Close Circuit Television (CCTV) surveillance system, adequate security lighting, security personnel (contract or in-house), alarm systems, armed response, access control systems and security fence or walls). The security measures were also appeared to be put in place in accordance with the location of the hotel. If the hotel was surrounded by other business areas, the level of security was more focused in the inner security layer. If the hotel was standing alone, the different security layers (the inner security layer, the outer and the middle security layers) were adequately protected. • Hotels are faced with different risks such as theft, prostitution, murder and assault, among others. Theft however was found to be across the board; for example, people were stealing the hoteliers’ property or the guests’ property. • Prostitution was found to be prevalent at hotels. Prominent people from political arena, corporate environment and other guests were interested in the prostitutes. Prostitutes were said to have their own modus operandi of using drugs to their prospective clients and then rob them of their money and belongings thereafter. • Most of the assets which are targeted by hotel perpetrators were found to be: guests/hotel money, hotel goods, guests’ cars, goods in guests’ cars, televisions, home music systems and mobile devices such as laptops and cell phones. • The profile and modus operandi of hotel perpetrators. • Security assessments are conducted at hotels so as to figure out what security risks are facing the hotels. • Hotels need to be protected at all times against criminality as it tarnishes their image. • Most of the guests do enquire about the safety of the hotel before making a booking. Some of the guests mainly from the corporate sector do send their security specialists to assess the level of security at the hotel prior to making a booking. As the findings on this study were based on aims and objectives, recommendations for crime combating, proactive protection and future research were identified. The recommendations will, hopefully, also improve any inadequate security measures that may have been revealed by the study. / Criminology and Security Science / M.A. (Criminal Justice)