Liburdi, Alessia (A.A. 2025/2026) Valuation of hotel investments using real options: the case of Mandarin Oriental Mayfair. Tesi di Laurea in Mathematical finance, Luiss Guido Carli, relatore Sara Biagini, pp. 50. [Bachelor's Degree Thesis]

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Abstract/Index

Theoretical framework: investment valuation under uncertainty. Introduction to real options analysis. Real options in the hospitality industry. Mathematical methodology: the binomial model. The Cox-ross-Rubinstein (CRR) model fundamentals. Constructing the binomial lattice. The solution method: backward induction. Case study: Mandarin Oriental Mayfair. Object of analysis: The project overview. Market context: the post-pandemic London luxury sector. Data collection methodology: the reverse engineering approach. Quantitative analysis and parameter estimation. Estimating the underlying asset value. Estimating the strike price: development costs. Volatility and risk-free rate estimation. The static baseline: traditional NPV results. Valuation results and discussion. Implementing the binomial tree. Valuation via backward induction. The expanded NPV: quantifying managerial flexibility.

References

Bibliografia: pp. 47-50.

Thesis Type:	Bachelor's Degree Thesis
Institution:	Luiss Guido Carli
Degree Program:	Bachelor's Degree Programs > Bachelor's Degree Program in Economics and Business, English language (L-33)
Chair:	Mathematical finance
Thesis Supervisor:	Biagini, Sara
Academic Year:	2025/2026
Session:	Summer
Deposited by:	Alessandro Perfetti
Date Deposited:	15 Oct 2026 09:29
Last Modified:	15 Oct 2026 09:29
URI:	https://tesi.luiss.it/id/eprint/46859

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