Tham khảo tài liệu 'a new value investing playbook for a global age by jeffrey alan towson_7', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 164 What Would Ben Graham Do Now For example a Four Seasons management contract is a capability key that can add significant value to a hotel real estate or service apartment project almost anywhere in the world. Luxury hotel properties in places such as Africa India and Russia are fairly attractive businesses as they benefit from a combination of low local labor and construction costs and luxury pricinỴou can also sometimes create an additional upper pricing tier for foreign tourists as local luxury and international luxury are not necessarily the same. The limitation is that they are fixed asset-heavy so the return on equity is lower. And luxury hotels in emerging markets also tend to suffer operating losses quickly during economic downturns. But from an investor point of view the primary challenge with buying or building luxury hotels is acquiring the asset or location. A luxury hotel typically needs a prime location which means acquiring either an existing hotel or vacant land in a valuable location. Such prime locations are almost always tightly held by families companies or governments. In places such as India and Egypt such assets can be seen by their owners as not just assets but the íamilyồ lifeline and inheritance. An offer to buy a majority stake of a well-located hotel or plot of land is unlikely to be acceptedat-least not at the reasonable or low price you want. However a capability key can change this equation dramatically. Offering to buy a minority stake in such a hotel and to transform it into a Fairmont or Four Seasons is an attractive offer. The brand elevates the hotel to international luxury status and opens the business to a new class oWestern luxury hotel customers. This capability often also improves marketing management and reservations and operating systems. Recall the cases discussed in Chapter 3 where EPV AV EPV AV or EPV AV refer to Figure . In this situation we can likely increase the value in any of these three scenarios. In fact
