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. 

Average Mortgage Rate

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 [...]

Looking for the best hospitality articles to read?

Well, then you have come to the right place...

We have compiled a list of our most read hotel management articles that will ensure you are fully up-to-date with the latest insights, tips, and best hospitality practices.

The sector-wide standard for hotel accounting practises, the Uniform System of Accounts for the Lodging Industry (USALI format) has been in operation in some form or other since 1926. With our experience as a hotel management company, we can say that these best practises are essential for any hotel to create higher uniformity and consistency in the presentation and understanding of a hotel´s performance. The primary functions of this uniform system of accounts for hotels has been to provide hotel managers, owners, and other relevant stakeholders with operating statements, and to be able to run comparative analyses across different business areas. The 11th edition of USALI was released in 2015, requiring hotels to update how they reported accounting and financial data and introducing many new changes. Now knowing the importance of the system, let's take a deeper look at the details and highlight what is most important to understand as a stakeholder for a hotel.

Capturing hotel guest data and information including email addresses and other contact details has become a fundamental part of any successful hotel management strategy. Central to a winning strategy is an intelligent, modern email marketing approach. Even with the rise of social media and other digital communication channels, email remains the channel of reference for hotels to build a well-rounded distribution strategy, drive direct sales, issue special offers, and promote online reputation management.

For many people, starting their own boutique hotel or luxury bed and breakfast is like a dream. Most are drawn by the charm of hospitality and see it as a chance to start a new beginning. But opening a hotel business , just like any new company, is more difficult than it might seem at first sight.

Particularly if you have never worked in the international hotel industry, you will be faced with many things you might have not considered or imagined before. The hotel business is highly competitive and achieving good financial results is not as easy as it seems.

In my experience at XOTELS – Hotel Revenue Management Consulting in dealing with entrepreneurs and investors, I have found that there is no shortage of creative ideas for innovative hotel concepts. The challenge, however, lies more in the strategic and organizational areas of the business.

In over ten years of helping hotels to open and remodel successfully as a Hotel Revenue Management Consulting and Hotel Management Company, we have seen time and again at XOTELS how indispensable a hotel feasibility study is.

We have also seen how many would-be hoteliers simply assume that their vision will succeed, without conducting any notable research on building a hotel business that will be consistently profitable and competitive.

In this article we look at the steps involved in carrying out an effective hotel feasibility study and provide practical examples on how to obtain one effectively.

Operating hotels for over more than a decade and a half with the Xotels team, we have noticed that many hotel owners and investors do not always see the need to engage with a hotel asset manager to oversee the strategic management of their lodging business. But if you're not an industry insider, or are not up to speed with the rapidly evolving complexity and competitiveness of the hospitality industry, you might find yourself with a missed opportunity of optimizing profitability as well as mitigating risk exposure. Hotel Asset Management plays a key role in achieving a strong return on investment.