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 hotel management, hotel operator, asset management, hotel consulting, and revenue management services, enables them to drive results for independent boutique hotels, luxury eco-resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.
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