Hotel Investment KPIs

Need to know what a hotel investment term means? Look it up in the XOTELS Glossary.

With our expertise as a hotel management company, we explain definitions, terminology and industry lingo in the hospitality investment industry.

Average Mortgage Rate

Average Mortgage Rate: Calculation: Average Mortgage Rate = Sum of Mortgage Rates / Number of Mortgages   What is the Definition & Importance of ´Average Mortgage Rate´:   This KPI helps investors to evaluate if properties require refinancing….

Loan to Value Ratio (LTV)

Loan to Value Ratio (LTV) Calculation: LTV Ratio = Mortgage Amount / Appraised Property Value Ideal ratio: typically, 80% or lower LTV ratios will help you to obtain the most favorable / lowest rates   What is the Definition & Importance of ´Loan to…

Average Rent Price Per Property:  Calculation: Average Rent Price Per Property = Total Monthly Revenue / Total number of Properties   What is the Definition & Importance of ´Average Rent Price Per Property´:   As the name suggests, the KPI ‘Average…

Tenant Turnover

Tenant Turnover Calculation: Turnover Rate = (Number of Tenants Moved Out / Total Number of Tenants) * 100%   What is the Definition & Importance of ´Tenant Turnover´:   This real estate KPI informs you at what rate your tenants are leaving, and…

Payback Period Calculation: Initial Capital Cost for Project / Earnings from Project or Annual Savings   What is the Definition & Importance of ´Payback Period´:   Determining the actual payback period, otherwise known as break-even, is essential…

Return on Investment (ROI)

Return on Investment (ROI) Calculation: ROI = (Investment Revenue – Investment Cost) / (Investment Cost) or ROI = (Net Profit / Total Investment) * 100%   What is the Definition & Importance of ´Return on Investment (ROI)´:   Any time you´re making an…

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About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn independent hotels and resorts into local market leaders. XOTELS´ diverse expertise and deep-knowledge across revenue management consulting, hotel management, asset 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.
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