Efficient Utilization Of InterContinental New Orleans Hotel Resources After Hurricane Katrina: A Case Study

Abstract

A significant capital budgeting problem faced the InterContinental New Orleans Hotel after the wake of Hurricane Katrina in 2005. The problem was presented to students as a case study.  Students were provided firm specific and market data to perform a detailed discounted cash flow analysis, including estimation of the weighted average cost of capital and the corresponding sensitivity analysis.  The case is designed to be used in an upper level undergraduate corporate finance class.