{"id":22697,"date":"2020-04-14T07:00:44","date_gmt":"2020-04-14T07:00:44","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/roi-return-on-investment\/"},"modified":"2024-12-23T09:21:15","modified_gmt":"2024-12-23T09:21:15","slug":"return-on-investment","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/return-on-investment","title":{"rendered":"ROI &#8211; Return on Investment"},"content":{"rendered":"<p>What is the meaning \/ definition of ROI in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>ROI stands for: Return on Investment<\/p>\n<p>ROI is a profitability ratio used to evaluate the gain or loss generated on an investment. In other words, it indicates how much money was earned on an investment, expressed as a percentage of the purchasing price\/ initial investment.<\/p>\n<p><strong>How to calculate ROI:<\/strong><\/p>\n<p>Formula: ROI = (investment revenue \u2013 investment cost) \/ (investment cost)<\/p>\n<p>This formula is pretty simple and is adaptable to different kinds of investments such as <a href=\"\/?page_id=1048\">marketing campaigns<\/a> or <a href=\"\/?page_id=992\">hotel asset acquisitions<\/a>. However, its flexibility has a downside; this ratio can be manipulated according to one\u2019s perception. The use of the same inputs is essential, to have a good comparison.<\/p>\n<p>Also note that this indicator does not take the time value of money into consideration.<\/p>\n<p><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/internal-rate-of-return\">IRR<\/a><\/li>\n<li>Feasibility Study<\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/net-present-value\">NPV<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of ROI in the  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,47],"tags":[],"class_list":["post-22697","post","type-post","status-publish","format-standard","hentry","category-glossary","category-r"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ROI - Return on Investment Definition \/ Meaning<\/title>\n<meta name=\"description\" content=\"Definition: ROI is a profitability ratio used to evaluate the gain or loss generated on an investment. 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