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Average Rent Price Per Property
As the name suggests, the KPI 'Average Rent Price Per Property' helps to keep track of your rental prices and is typically measured and recorded across various timeframes (i.e. weekly, monthly, quarterly and annual changes). Our hotel management company emphasizes on comparing the performance against the same period last year is crucial to ensure you're on the right track to create a successful investment project. You can also easily compare against other properties with this metric and see where opportunities are for your property.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.
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Do you know what the conversion % is of your hotel's reservations department? We seem to put a lot of focus on our website conversion statistics, but how many calls are we actually converting in to bookings. Phone sales is a very important direct sales channel for hotels, consumers are making the effort to contact you directly, and should be easy to convert. Why is it though that many hotels have such a poor sales process? Is hotel management not on the ball ?
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..
