The case examines the issues of a hotel management and development company, as it tries to increase the return to shareholders face. The firm’s major shareholders have commented that they believe the company is currently undervalued, so management is considering various means of developing additional value. Due to the difficult economic conditions resulting from the global economic crisis, there are both many opportunities but also many risks for the alternatives they are considering. The case requirements … Read more »

The case examines the issues of a hotel management and development company, as it tries to increase the return to shareholders face. The firm’s major shareholders have commented that they believe the company is currently undervalued, so management is considering various means of developing additional value. Due to the difficult economic conditions resulting from the global economic crisis, there are both many opportunities but also many risks for the alternatives they are considering. The case offers both the opportunity to use different valuation methods to determine whether the company is, in fact, undervalued, and a discussion of several alternatives for unlocking value in the range of starting an active acquisition strategy to reorganize its corporate structure with either an updated capital structure or the conversion to a real estate income trusts.
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from
Stephen Sapp,
Kamal Patel
Source: Ivey Publishing
21 pages.
Release Date: 7 April 2011. Prod #: W11104-PDF-ENG
Northampton Group Inc.: How to Increase Shareholder Value HBR case solution