Payback Period

Calculation: Initial Capital Cost for Project / Earnings from Project or Annual Savings

What is the Definition & Importance of ยดPayback Periodยด:

To start, our hotel revenue management consulting 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.

Keep reading aboutย hotel investment KPIs, subscribe to our hotel revenue management consulting newsletter to read and learn more about hotel and revenue management articles below:

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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. 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.