Here you will find opinion articles written by Patrick Landman
Sustainability is the future of the hospitality industry. It has grown to be a topic of massive interest to both hoteliers and investors. Its positive outcome is immeasurable no matter the scale of the hotel or resort. Looking through our perspective as a hotel management company, we have put together a list of reasons why hotel investment in sustainable real estate and eco-friendly hotels is essential. Find out why you should work on reducing your ecological and environmental footprint with your next hotel concept project.
Need to know what a hotel investment term means? Look it up in the XOTELS Glossary. With our expertise as a hotel revenue management consulting company, we explain definitions, terminology and industry lingo in [...]
Managing a hotel is not an easy nor a straightforward job, and hotel owners can often benefit from external hotel revenue management consulting services. The main goal of hotel consultants is to assess the current situation and develop a customized solution based on the client’s needs to improve the business performance.
Operating Expense Ratio
Using this KPI can help you evaluate whether an investment is worth your time by giving insight into how much it costs to manage / maintain the project. How? By taking the operational cost and rental income into account you will be able to compare the ratio (ideally under 80%) to make a well-informed decision for your investment opportunity. This step can´t be overlooked and our hotel revenue management consulting company always recommends calculating the Operating Expense Ratio to ensure the full potential and financial health of your projects.Payback Period
To start, our hotel management company always recommends determining the actual payback period, otherwise known as break-even, is essential for a real estate investment project and can help to pick better projects with a fast payback period. This can be achieved by determining the number of years it will take to pay back the amount invested.Tenant Turnover
This real estate KPI informs you at what rate your tenants are leaving, and will typically be calculated on an annual basis. Our hotel management company highly suggests knowing the tenant turnover rate will help you gain insight into which of your projects has a more stable tenant cycle. The lower the turnover rate the better since:
