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Calculation: LTV Ratio = Mortgage Amount / Appraised Property Value
When investing it is obviously favourable to accrue as little additional cost as possible while minimizing the amount of down payment on your loan to ensure you have plenty of cash on hand to manage your business and investments.Â
Average Mortgage Rate
This KPI helps investors to evaluate if properties require refinancing. Specifically, investors can compare their mortgage rates (by turning it into an average if they have multiple properties) to the current index mortgage rate. Our hotel management company always suggests making this comparison, as it will tell if the property is better off being refinanced.
Calculation: Equity to Value Ratio = Total Property Equity / Total Property Value Ideal ratio: ratios below 0.5 are an indication of a heavily leveraged business What is the Definition & Importance of ´Loan to Value Ratio´: The equity to value ratio is a key metric for investors to use in order to assess how leveraged a business is. It is [...]
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The previous two articles on Spa Revenue Management should have convinced you, that in order to generate more profit with this business unit, a more strategic approach will need to be implemented, comparable to the way revenue management is applied to hotel rooms. Key performance indicators have to be defined to help understand the patterns of demand and customer behavior. Now we will take a closer look at different pricing techniques.- Last month we discussed the apparent need for hotels to implement a Revenue Management strategy for their spa in order to maximize the profitability of their business. So let’s now take a closer look, and define the Key Performance Indicators that need to be measured.
Many hotel property owners and hotel management teams of city hotels, resorts, conference hotels and upscale country side B&B’s are adding a luxury Spa to their property. Why?Â
If OTA claim to bring incremental business, why do they advertise on hotel brand names? Shouldn’t they focus on destination searches instead? It seems the larger chains have convinced the OTA to refrain from this practice. However to independent hotels or hotel management groups they are not showing much consideration. This SEM hijacking or brand keyword robbery needs to stop.
Last week Thursday I moderated an expert panel at the BTO conference in Florence, #bto2010, discussing the state of revenue management within the hotel industry. Confirming Xotels’ 4 years of revenue management training and consulting we have come to a rather sad conclusion though; many revenue managers still lack basic skills..
On the Brink of Revolution!Sunday afternoon, a few clouds are setting over the terrace, a perfect time to put down on paper some thoughts on ‘dynamic pricing’ in hotels. Following the news lately I have come to think that we are on the brink of the dynamic pricing revolution in hotel revenue management ...Â
The previous two articles on Spa 
Last month we discussed the apparent need for hotels to implement a 
On the Brink of Revolution!