The celebrated Cheeger's Inequality \cite{am85,a86} establishes a bound on the expansion of a graph via its spectrum. This inequality is central to a rich spectral theory of graphs, based on studying the eigenvalues and eigenvectors of the adjacency matrix (and other related matrices) of graphs. It has remained open to define a suitable spectral model for hypergraphs whose spectra can be used to estimate various combinatorial properties of the hypergraph. In this paper we introduce a new hypergraph Laplacian operator (generalizing the Laplacian matrix of graphs)and study its spectra. We prove a Cheeger-type inequality for hypergraphs, relating the second smallest eigenvalue of this operator to the expansion of the hypergraph. We bound other hypergraph expansion parameters via higher eigenvalues of this operator. We give bounds on the diameter of the hypergraph as a function of the second smallest eigenvalue of the Laplacian operator. The Markov process underlying the Laplacian operator can be viewed as a dispersion process on the vertices of the hypergraph that might be of independent interest. We bound the {\em Mixing-time} of this process as a function of the second smallest eigenvalue of the Laplacian operator. All these results are generalizations of the corresponding results for graphs. We show that there can be no linear operator for hypergraphs whose spectra captures hypergraph expansion in a Cheeger-like manner. For any $k$, we give a polynomial time algorithm to compute an approximation to the $k^{th}$ smallest eigenvalue of the operator. We show that this approximation factor is optimal under the SSE hypothesis (introduced by \cite{rs10}) for constant values of $k$. Finally, using the factor preserving reduction from vertex expansion in graphs to hypergraph expansion, we show that all our results for hypergraphs extend to vertex expansion in graphs.