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  • Need to know what a hotel investment term means? Look it up in theย XOTELSย 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 clientโ€™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?ย  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 canยดt 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:
  • 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).ย  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.

About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.