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Accommodation

What is the meaning / definition of Accommodation in the hospitality industry? The term accommodation refers to a room, building or lodging which provides shelter for [...]

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10 Solutions to Challenges the Hotel Industry faces in 2025

In 2024, there are many challenges faced by the hotel industry, which may quickly feel overwhelming to address. However, as a hotel revenue management consulting and hotel management company, we have seen that with the right approach, tech stack, and process streamlining, hotels can drive their success in 2024 and beyond.

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30+ Room Types & Types of Rooms in Hotels

In the hotel industry, the days of hotels only offering guests standard rooms are long gone! Nowadays, there is a myriad of room types in hotels [...]

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    Payback Period

    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.
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    Tenant Turnover

    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:
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    Average Rent Price Per Property

    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.
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    Loan to Value Ratio (LTV)

    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. 

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    Average Mortgage Rate

    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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    Equity to Value Ratio or Equity Ratio

    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 [...]

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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. XOTELS´ 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.