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Lodging Industry Glossary

AvbbreviationFull TermDefition
GDPGross Domestic ProductTotal monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It includes the value produced by alien residents within the borders, while excluding that produced by residents out of the borders. GDP data used here are drawn from the 'GDP(Current LCU)' data series in World Bank Open Data.
GRDPGross Regional Domestic ProductTotal monetary or market value of all the finished goods and services produced within a Metropolitan Statistical Area's borders in a specific time period. It includes the value produced by alien residents within the borders, while excluding that produced by residents out of the borders. GRDP data used here are currently limited to South Korea and drawn from the 'GRDP(Administrative Districts)' data series in KOSIS.
CPI %Consumer Price Index % ChangeA percentage figure indicating changes in the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, which are expressed as indices to a benchmarking time point. CPI data used here are currently limited to South Korea and drawn from the 'CPI(2015=100, Aggregate, Monthly)' data series in KOSIS.
WSI %Wage & Salary Increase %A percentage figure indicating changes in wages and salaries per employee for a specific time period. Wage & Salary data used here are currently limited to South Korea and drawn from the 'Monthly Average Wage & Salary with Increase %' data series in KOSIS.
InterestInterest RateAn amount which a lender charges periodically for the use of the credit, expressed as a percentage of the principal amount.
Base InterestBase Interest RateA percentage value that central banks set as a guide for the financial sector as to define the price of credit in its currency. For South Korea, the Monetary Policy Board at the Bank of Korea determines the Base Interest Rate for KRW every month, and published on ECOS. For the other countries, each Central Bank determines and publishes it for its own currency. Typically, a Base Interest Rate represents the bottom-line price for the credit in a certain country's currency.
Lending InterestLending Interest RateAn average of bank rates that usually meets the short-term and medium-term financing needs of the private sector, the mount of which is calculated as the Interest Rate Spread added to the Base Interest Rate. Lending Interest Rate data used here are drawn from the 'Lending Interest Rate' data series in World Bank Open Data.
Interest SpreadInterest Rate SpreadThe difference between the average yield that a financial institution receives from loans and the average rate it pays on deposits and borrowings. It can be calculated as the Lending Interest Rate subtracted by the Base Interest Rate.
Demand StabilizationDemand Stabilization PeriodA duration for a lodging property to reach a sustainable level of demand flow after a rapid ramp-up. Typically, it ramps up faster than price and expense.
Price StabilizationPrice Stabilization PeriodA duration for a lodging property to reach a sustainable level of price positioning after a rapid ramp-up. It can be significantly delayed if the initial price is not positioned properly.
Expense StabilizationExpense Stabilization PeriodA duration for a lodging property to reach a sustainable level of operating expenses after a rapid ramp-up. Typically, it ramps up later than demand and price.
Time SeriesTime SeriesA sequence of numerical data points in successive order within a specific time period. Typically, it is used to find out changes of data points throughout a specific time period, such as market cycles.
IndexIndexAn indicator of a data point within specific data set, expressed as a multiple to the benchmarking set, representing changes of relative positioning. Hotelysis uses it as a limited scope to indicate the relative positioning of a data point within a specific time series data set, representing changes of relative positioning as it ages. (different from 'Penetration')
CycleMarket CycleA time period between the two adjacent peaks or troughs of a data set within a specific time series sample, when there are repetitive downward and upward trends within the sample.
PeakPeakAn inflection point at the peak of a time series sample, where an upward trend turns to a downward trend.
TroughTroughAn inflection point at the trough of a time series sample, where a downward trend turns to an upward trend.
TypeTypeA high-level classification of lodging properties based upon regulations, locations, facility mixes and price points. In South Korea, lodging properties are classified into two types: a Tourist Accommodation including hotels and timeshares in accordance with Tourism Promotion Act, and a General Accommodation including motel/inn and extended stay in accordance with Public Sanitary Act. In the USA, lodging properties are classified into Urban, Suburban, Small Town, Interstate, Airport and Resort by location, Full-Service, Select-Service and Limited-Service by facility mix, and Luxury, Upscale, Midprice, Economy and Budget by price point.
GradeGradeA detailed classification of lodging properties based upon demand, price and expense structure segmentations. In South Korea, hotels are classified into a Tourist Hotel with star-rating and a General Hotel such as traditional hotels, condo hotels, hostels, small hotels, floating hotels and medical hotels. In the USA, hotels are rated by FTG with stars or by AAA with diamonds, and classified into Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale and Economy by STR.
Comp SetCompetitive SetA group of properties that compete with a specific property for business, which is selected with the purpose of benchmarking the performance. Typically, properties within a competitive set have similar characters in location, facility mix, service level and price point in addition to district and grade.
ShareShareThe weight of a company's or a property's volume, such as supply, demand, revenue, expense and profit, expressed as a percentage to the total benchmarking set of companies or properties including the company or the property in question.
Supply ShareSupply Share (Fair Share)The share of capacity a company or a property is supplying to a market or a competitive set, expressed as a percentage figure. In the lodging industry, the supply of room products is measured by rooms available and that of non-room products is measured either by the number of seats or the other facility area.
Demand ShareDemand Share (Market Share)The share of demand a company or a property is absorbing in a market or a competitive set, expressed as a percentage figure. In the lodging industry, the demand for room products is measured by rooms occupied and that of non-room products is measured by the number of covers. If the demand share is greater than the supply share, the company or the property is deemed to absorb demand effectively.
Revenue ShareRevenue ShareThe share of revenue a company or a property is generating in a market or a competitive set, expressed as a percentage figure. If the revenue share is greater than the demand share, the company or the property is deemed to have a superior price positioning as compared to its competitive set.
PenetrationPenetrationAn indicator of a data point within specific data set, expressed as a multiple to the benchmarking set, representing changes of relative positioning. Hotelysis uses it as a limited scope to indicate the relative positioning of a data point within a specific competitive environment, representing superiority or inferiority in performance against its competitive set. (different from 'Index')
No. of RoomsNumber of RoomsThe number of guestrooms a lodging property offers to guests, representing the maximum capacity the lodging property can provide per day.
Avg. RoomsAverage Room Count Per PropertyThe average number of rooms per property of a specific set of lodging properties, representing the average of maximum capacity each lodging property can provide per day. It is calculated as total number of rooms of the properties divided by the number of properties.
Facility MixFacility MixThe mix of room facility area, other facility area and general common area of a property, expressed as percentage figures to the gross floor area. An optimal mix of different facilities plays the key role in maximizing the asset value as each facility has different revenue potential and operating efficiency.
RFARoom Facility AreaTotal area of guestroom floors, which includes common area attached to the floor such as staircases, elevators and corridors.
RFA PRRoom Facility Area Per RoomA quality indicator for room products of a lodging property, which is calculated as the Room Facility Area divided by the number of rooms. If the Room Facility Area Per Room is greater than its competitive set average, the property is likely to up-position its room product price against its competitive set.
OFAOther Facility AreaTotal area of revenue-generating non-room facilities, such as F&B outlets, banquets and fitness, including common area attached to the floor such as lobby and lounge.
OFA PROther Facility Area Per RoomA quality indicator for non-room products of a lodging property, which is calculated as the Other Facility Area divided by the number of rooms. If the Other Facility Area Per Room is greater than its competitive set average, the property is likely to up-position its non-room product price against its competitive set.
GCAGeneral Common AreaTotal area of common area other than that attached to guestroom floors and other facilities, which includes parking spaces, mechanical spaces and employee spaces.
GCA PRGeneral Common Area Per RoomAn asset efficiency indicator for a lodging property, which is calculated as the General Common Area divided by the number of rooms. If the General Common Area Per Room is greater than its competitive set average, the property is deemed to have opportunities to improve asset efficiency.
LFALodging Facility AreaTotal area used as a lodging facility, calculated as the sum of Room Facility Area, Other Facility Area and General Common Area. If the entire building is used as a lodging facility, it is equal to the Gross Floor Area.
LFA PRLodging Facility Area Per RoomA quality indicator for a lodging property, which is calculated as the Lodging Facility Area divided by the number of rooms. If the Lodging Facility Area Per Room is greater than its competitive set average, the property is likely to compete in the upper tier market.
NLFANon-Lodging Facility AreaTotal area of a property used other than lodging facility, which is calculated as the Gross Floor Area subtracted by the Lodging Facility Area.
NLFA PRNon-Lodging Facility Area Per RoomCalculated as the Non-Lodging Facility Area divided by the number of rooms. If the Non-Lodging Facility Area is used for purposes generating lodging demand, it is considered to enhance operating stability of a lodging property.
GFAGross Floor AreaTotal floor area of a property, including underground and overground floors. It is equal to the sum of the Lodging Facility Area and Non-Lodging Facility Area.
OGAOver-Ground AreaTotal area of overground floors, which is calculated as the Gross Floor Area subtracted by the underground floor area. It is used to calculate the Floor Area Ratio, representing density of land use.
SASite AreaThe area of a land lot which a lodging property is occupying, as shown in the deed. It includes the area of public open space within the boundary while excluding the area contributed to public for road, park, etc.
SA PRSite Area Per RoomA quality indicator for a lodging property, which is calculated as the Site Area divided by the number of rooms.
FARFloor Area RatioA density indicator of a property as compare to the Site Area, which is calculated as the Over-Ground Area divided by the Site Area. The maximum density is regulated by the Land Use Ordinance, which has a direct impact on the value of a land.
No. of SeatsNumber of SeatsTotal number of seats offered in non-room facilities, including restaurants and bars while excluding banquets as seating capacity varies by layout.
Seats PRNumber of Seats Per RoomAn indicator of facility mix efficiency, which is calculated as the number of seats divided by the number of rooms.
Seats PSQMNumber of Seats Per Other Facility AreaA quality indicator for non-room products of a lodging property, which is calculated as the number of seats divided by the Other Facility Area.
Rooms AvailableRooms Available, Room SupplyTotal volume of room nights supplied during a specific time period by a lodging property, which is calculated as the number of rooms multiplied by the days open. If a lodging property offered 100 rooms for 365 days, the Rooms Available were 36,500.
Rooms OccupiedRooms Occupied, Room DemandTotal volume of room nights sold during a specific time period by a lodging property. The Rooms Occupied cannot be greater than the Rooms Available.
Intl. Rooms OccupiedInternational Rooms OccupiedTotal number of room nights sold to international guests during a specific time period.
Dom. Rooms OccupiedDomestic Rooms OccupiedTotal number of room nights sold to domestic guests during a specific time period.
OCCOccupancyA productivity indicator of room products, which is calculated as the Rooms Occupied divided by the Rooms Available during a specific time period, expressed as a percentage figure. It represents the volume of demand for room products as compared to the volume of room product supply.
Intl. OCCInternational OccupancyA productivity indicator of room products consumed by international guests, which is calculated as the International Rooms Occupied divided by the Rooms Available during a specific time period. It is used to measure contribution of international demand to total demand for room products.
Dom. OCCDomestic OccupancyA productivity indicator of room products consumed by domestic guests, which is calculated as the Domestic Rooms Occupied divided by the Rooms Available during a specific time period. It is used to measure contribution of domestic demand to total demand for room products.
No. of GuestsNumber of GuestsTotal number of guests consuming room products during a specific time period. It does not necessarily match the Room Demand as the consumption pattern varies by guest. If a guest occupies a guestroom for two nights or two guestrooms for a night, the number of guests is counted as two.
Intl. GuestsNumber of International GuestsTotal number of international guests consuming room products during a specific time period. It does not necessarily match the International Room Demand as the consumption pattern varies by guest. If a guest occupies a guestroom for two nights or two guestrooms for a night, the number of guests is counted as two.
Dom. GuestsNumber of Domestic GuestsTotal number of domestic guests consuming room products during a specific time period. It does not necessarily match the Domestic Room Demand as the consumption pattern varies by guest. If a guest occupies a guestroom for two nights or two guestrooms for a night, the number of guests is counted as two.
Guests PORGuests Per Occupied RoomA positioning indicator for room products of a lodging property, which is calculated as the Number of Guests divided by the Rooms Occupied, representing how many guests stayed in a guestroom per night. The Number of Guests Per Occupied Room is lower if the price is higher, and vice versa.
Intl. Guests PORInternational Guests Per Occupied RoomThe average number of international guests per room occupied by international guests during a specific time period. It varies subject to the origin of guests.
Dom. Guests PORDomestic Guests Per Occupied RoomThe average number of domestic guests per room occupied by domestic guests during a specific time period. It varies subject to the purpose of travel.
Room RevenueRoom RevenueSum of Revenues generated by selling room products to guests. It does not include revenues from consumption of non-room products by room guests.
Intl. Room RevenueInternational Room RevenueRoom Revenue generated by International Guests during a specific time period.
Dom. Room RevenueDomestic Room RevenueRoom Revenue generated by Domestic Guests during a specific time period.
Room RevPARRoom Revenue Per Available RoomAverage Room Revenue generated per each available room, indicating a 'real price' positioning for room products with vacancy taken into account. It is calculated either as Room Revenue divided by Rooms Available or Occupancy multiplied by Average Daily Rate.
ADRAverage Daily RateAverage Room Revenue generated per each occupied room, indicating a 'nominal price' positioning for room products without vacancy taken into account. It is calculated either as Room Revenue divided by Rooms Occupied or Room Revenue Per Available Room divided by Occupancy.
International ADRInternational Average Daily RateAverage Room Revenue generated per each of Rooms Occupied by International Guests. It is calculated as International Room Revenue divided by International Rooms Occupied.
Domestic ADRDomestic Average Daily RateAverage Room Revenue generated per each of Rooms Occupied by Domestic Guests. It is calculated as Domestic Room Revenue divided by Domestic Rooms Occupied.
No. of CoversNumber of CoversTotal number of customers consuming non-room products during a specific time period. It represents the demand for non-room products. It can be classified into in-house customers who are room guests at the same time and outside customers who are not room guests.
Intl. CoversNumber of International CoversTotal number of International Covers, where in-house customers typically account for majority share.
Dom. CoversNumber of Domestic CoversTotal number of Domestic Covers, where outside customers typically account for majority share.
Covers PGCovers Per GuestA productivity indicator of non-room products per room guest, which is calculated as the Number of Covers divided by the Number of Guests. It shows how much the demand for non-room products expanded as in-house customers work as the basis for non-room product demand while outside customers represent expanded portion.
Intl. Covers PGInternational Covers Per GuestA productivity indicator of non-room products per international room guest calculated as the number of International Covers divided by the number of International Guests. Typically, it is stable while limited in expansion.
Dom. Covers PGDomestic Covers Per GuestA productivity indicator of non-room products per domestic room guest calculated as the number of Domestic Covers divided by the number of Domestic Guests. Typically, it expands significantly albeit unstable.
Covers PORCovers Per Occupied RoomA productivity indicator of non-room products per actual room demand, which is calculated as the Number of Covers divided by the Rooms Occupied. It shows how much the demand for non-room products expanded as compared to room demand itself.
Intl. Covers PORInternational Covers Per Occupied RoomA productivity indicator of non-room products per international room demand calculated as the number of International Covers divided by the International Rooms Occupied. Typically, it is dependent upon the International Guests Per Occupied Room.
Dom. Covers PORDomestic Covers Per Occupied RoomA productivity indicator of non-room products per domestic room demand calculated as the number of Domestic Covers divided by the Domestic Rooms Occupied. Typically, it is dependent upon the Domestic Guests Per Occupied Room.
Other RevenueOther RevenueSum of Revenues generated by selling non-room products to Covers. It includes all revenues from consumption of non-room products, such as restaurants, bars, banquets, retail, etc.
Intl. Other RevenueInternational Other RevenueOther Revenue generated by International Covers during a specific time period. Typically, it accounts only for minority share of Other Revenue as it is generated mostly from in-house demand.
Dom. Other RevenueDomestic Other RevenueOther Revenue generated by Domestic Covers during a specific time period. Typically, it accounts for majority share of Other Revenue as it expands significantly beyond in-house demand.
Other RevPOROther Revenue Per Occupied RoomAverage Other Revenue generated per each occupied room, indicating a 'real price' positioning for non-room products with productivity of room products taken into account. It is calculated either as the Other Revenue divided by the Rooms Occupied or the number of Covers Per Occupied Room multiplied by the Average Check.
Intl. Other RevPORInternational Other Revenue Per Occupied RoomAverage Other Revenue generated per each room occupied by international guests. It is calculated as the International Other Revenue divided by the International Rooms Occupied.
Dom. Other RevPORDomestic Other Revenue Per Occupied RoomAverage Other Revenue generated per each room occupied by domestic guests. It is calculated as the Domestic Other Revenue divided by Domestic Rooms Occupied.
Other RevPAROther Revenue Per Available RoomAverage Other Revenue generated per each available room, indicating a 'nominal price' positioning for non-room products without productivity of room products taken into account. It is calculated either as the Other Revenue divided by the Rooms Available or the number of Covers Per Available Room multiplied by the Average Check.
Avg. CheckAverage CheckAverage Other Revenue generated per each Cover, indicating a 'nominal price' positioning for non-room products. It is calculated as Other Revenue divided by the number of Covers. It does not represent the price for each F&B menu item as a Cover may consume multiple menu items at a time.
Intl. Avg. CheckInternational Average CheckAverage Other Revenue generated per each International Cover. It is calculated as the International Other Revenue divided by the number of International Covers. Typically, it is lower than the Domestic Average Check as the International Covers are concentrated on breakfast by in-house guests.
Dom. Avg. CheckDomestic Average CheckAverage Other Revenue generated per each Domestic Cover. It is calculated as the Domestic Other Revenue divided by the number of Domestic Covers. Typically, it is higher than the International Average Check as the Domestic Covers are concentrated on lunch and dinner by outside guests.
Total RevenueTotal RevenueAll revenues that a company or a property generated from operations during a specific time period. In the lodging industry, it is the sum of Room Revenue and Other Revenue.
Intl. Total RevenueInternational Total RevenueTotal Revenue generated by International Guests for room products and International Covers for non-room products, which is calculated as the sum of International Room Revenue and International Other Revenue.
Dom. Total RevenueDomestic Total RevenueTotal Revenue generated by Domestic Guests for room products and Domestic Covers for non-room products, which is calculated as the sum of Domestic Room Revenue and Domestic Other Revenue.
Total RevPARTotal Revenue Per Available RoomAverage Total Revenue a lodging property generated per each available room. It is calculated as the Total Revenue divided by the Rooms Available. It is used to evaluate the positioning of a lodging property as compared to its competitive set.
Rev. Mix by Dept.Revenue Mix by DepartmentMix of Room Revenue and Other Revenue generated at a lodging property or a group of lodging properties. If a lodging property generates more revenues from room products, it is considered more efficient in operations, and vice versa. The larger and upper-positioned properties are, the more they generate revenues from non-room products.
Rev. Mix by OriginRevenue Mix by OriginMix of International Revenue and Domestic Revenue generated at a lodging property or a group of lodging properties. The weight of International Revenue is heavier if a property generates more revenues from room products and the international room demand is larger than the domestic room demand.
OEOperating ExpenseSum of expenses spent by a company or a property to conduct its core business operations during a specific time period. It includes Direct Expenses related to its operating activities and Indirect Expenses incurred by holding assets.
LCLabor CostExpense spent to hire and retain employees, which is included in the Direct Expense during a specific time period. It includes salaries and wages paid for employees as well as benefits and relevant taxes.
EFTENumber of Effective Full-Time EmployeesTotal number of employees during a specific time period, including full-time employees and part-time employees. The number of part-time employees is converted into equivalent full-time employees based upon working hours. It does not include unpaid labor such as the owner and/or his/her family members working for the property without compensation.
EFTE PREffective Full-Time Employees Per RoomAn efficiency indicator in association with labor intensity, which is calculated as the number of EFTEs divided by the number of rooms. It is also a quality indicator as the level of services provided at a lodging property is tied to the number of employees.
LC/EFTELabor Cost Per Effective Full-Time EmployeeAn efficiency indicator to measure how much money is spent to hire and retain an employee. It is also a quality indicator as the level of services provided by each employee is correlated to the salary level of the employee.
Fxd. Exp.Fixed ExpenseExpense spent in association with operating activities and holding assets on a fixed amount basis, regardless of operating performance, for a specific time period. It includes Labor Cost, Fixed Charges, utility expense, etc.
Fxd. Exp. PARFixed Expense Per Available RoomFixed Expense expressed on a per-available-room basis, as the property size is relevant to the amount spent. It is used to compare across comparable companies or properties on the same basis.
Var. Exp.Variable ExpenseExpense spent in association with operating activities and holding assets on a variable amount basis, subject to operating performance, for a specific time period. It includes Distribution Charges, Management Fee and cost of goods sold, etc.
Var. Exp. PORVariable Expense Per Occupied RoomVariable Expense expressed on a per-occupied-room basis, as the operating performance is relevant to the amount spent. It is used to compare across comparable companies or properties on the same basis.
Direct Exp.Direct ExpenseExpenses a company or a property spent in association with activities related to producing goods and providing services during a specific time period, excluding costs associated with holding assets. Typically, it includes labor costs, costs of goods sold and utility costs, but Hotelysis also includes property-level overheads and sales & marketing expenses, given that 'services', intangible in nature, accounts for significant portion of lodging products.
Dept. Exp.Departmental ExpenseExpenses a company or a property spent in association with activities directly related to producing goods and providing services, including labor costs, costs of goods sold and sales & marketing expenses spent at revenue-generating departments, while excluding overheads.
Room ExpenseRoom ExpenseDepartmental Expense spent in Room Department. Typically, it is approximately 20-35% of Room Revenue, as room products are highly standardized in general.
Room EFTE PRRoom EFTE Per RoomAn efficiency indicator of operating activities at the room department, showing the number of EFTEs hired and retained in the room department. The Room EFTE Per Room decreases if a lodging property has a large room count and its service travel distance is short.
Room Fxd. Exp.Room Fixed ExpenseAn amount of the Fixed Expense within the Room Expense. Typically, the amount is larger than the Room Variable Expense and the Labor Cost accounts for majority of the Room Fixed Expense.
Room Fxd. Exp. PARRoom Fixed Expense Per Available RoomThe Room Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis.
Room Var. Exp.Room Variable ExpenseAn amount of the Variable Expense within the Room Expense. Typically, the amount is smaller than the Room Fixed Expense and includes reservation fee and travel agent commission.
Room Var. Exp. PORRoom Variable Expense Per Occupied RoomRoom Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis.
Other ExpenseOther ExpenseDepartmental Expense spent in Other Department. Typically, it is approximately 65-80% of Other Revenue, due to the nature of non-room products not standardized as much as room products, variety of menu items sold in the department and high turnover of customers within a shorter period of time.
Other EFTE PROther EFTE Per RoomAn efficiency indicator of operating activities at the non-room revenue-generating department, showing the number of EFTEs hired and retained in the other department. The Other EFTE Per Room decreases if a lodging property has a large other facility area and its service travel distance is short.
Other Fxd. Exp.Other Fixed ExpenseAn amount of the Fixed Expense within the Other Expense. Typically, the amount is smaller than the Other Variable Expense and the Labor Cost accounts for majority of the Other Fixed Expense.
Other Fxd. Exp. PAROther Fixed Expense Per Available RoomThe Other Fixed Expense expressed on a per-available-room basis, used to compare across comparable companies or properties on the same basis.
Other Var. Exp.Other Variable ExpenseAn amount of the Variable Expense within the Other Expense. Typically, the amount is larger than the Other Fixed Expense and cost of food and beverage material accounts for majority of the Other Variable Expense.
Other Var. Exp. POROther Variable Expense Per Occupied RoomThe Other Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis.
Undist. Exp.Undistributed ExpenseExpenses a company or a property spent to support and supervise activities related to producing goods and providing services, including property overheads, administrative labor costs and general sales & marketing expenses.
Undist. EFTE PRUndistributed Effective Full-Time Employees Per RoomAn efficiency indicator of operating activities at a lodging property, showing the number of EFTEs hired and retained as overheads. If the Undistributed EFTE Per Room is low, a lodging property is deemed to have a good operating efficiency. Typically it is lower at larger properties.
Undist. Fxd. Exp.Undistributed Fixed ExpenseAn amount of the Fixed Expense within the Undistributed Expense. Typically, the amount is larger than the Undistributed Variable Expense and includes the Labor Cost and utility expenses such as water, power, sewage, etc.
Undist. Fxd. Exp. PARUndistributed Fixed Expense Per Available RoomThe Undistributed Fixed Expense expressed on a per-available-room basis, used to compare across comparable companies or properties on the same basis.
Undist. Var. Exp.Undistributed Variable ExpenseAn amount of the Variable Expense within the Undistributed Expense. Typically, the amount is smaller than the Undistributed Fixed Expense and includes credit card commission, franchise royalty fee, marketing fee, etc.
Undist. Var. Exp. PORUndistributed Variable Expense Per Occupied RoomThe Undistributed Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis.
GOPGross Operating ProfitOperating profit after deducting expenses directly related to operations of the property, which is calculated as the Total Revenue subtracted by the Direct Expense. In case of a third-party management, it is the final monetary outcome of a third-party operator, which the owner receives from the operator.
GOP %Gross Operating Profit % to RevenueAn efficiency indicator for operating activities, calculated as the Gross Operating Profit divided by the Total Revenue, expressed as a percentage figure.
Indirect Exp.Indirect ExpenseExpenses a company or a property spent in association with holding assets. Typically, it includes property tax, liability insurance, rent as well as management fees in case the operations are commissioned to a third-party operator, while excluding depreciation expense, capital expenditure reserve and non-operating expense.
Dist. CostDistribution CostExpense spent to distribute products to customers, including travel agent commission, reservation fee and franchise royalty fee. Typically, reservation fees are included in the Room Variable Expense, and travel agent commission and franchise royalty fee are included in the Undistributed Variable Expense.
Dist. Cost PORDistribution Cost Per Occupied RoomAn efficiency indicator for distribution structure, which is calculated as the Distribution Charges divided by the Rooms Occupied, as majority of products at a lodging property are distributed on a room night basis. It represents how much money is spent to sell each room product.
Comm. FeeCommission FeeFees paid to third-party vendors providing services related to operation of a lodging property, including travel agent commission, management fee, royalty fee and credit card commission. Management fee accounts for majority in a third-party management structure.
Comm. Fee %Commission Fee % to RevenueAn efficiency indicator for third-party services, calculated as the Commission Fee divided by the Total Revenue. If a lodging property is paying a higher % of Commission Fee and its Gross Operating Profit % is also higher than its competitors, the services provided by third-party vendors are deemed to be efficient.
Fxd. ChargesFixed ChargesExpense incurred due to holding assets regardless of operating performance during a specific time period. It includes property tax, liability insurance and rent, which are fixed expenses by nature.
Fxd. Charges PARFixed Charges Per Available RoomThe Fixed Charges expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis.
EBITDAEarnings Before Interests, Taxes, Depreciation and AmortizationOperating profit after deducting expenses actually paid in cash at the property, which is calculated as the Gross Operating Profit subtracted by the Indirect Expense. It measures the ability to generate cash at a lodging property as it takes into account of all cash expense items.
EBITDA %Earnings Before Interests, Taxes, Depreciation and Amortization % to RevenueAn efficiency indicator showing how much cash is flowing through to the owner of a lodging property, calculated as EBITDA divided by the Total Revenue. If a lodging property has a higher EBITDA % than its competitors, the property is deemed to generate cash more efficiently.
CAPEX ReserveCapital Expenditure ReserveAn account in the Equity section of the Balance Sheet that can be used for contingencies or to offset capital losses. It is created in the Income Statement out of EBITDA and kept in the Balance Sheet as a restricted cash. Typically, a certain percentage to Total Revenue is reserved at a lodging property, although such percentage varies by age.
CAPEX Rsrv. %Capital Expenditure Reserve % to RevenueA ratio of the Capital Expenditure Reserve as compared to the Total Revenue, expressed as a percentage figure. Typically, it increases as the property ages.
NOINet Operating IncomeOperating profit after deducting all cash expense items and gain in restricted cash, which is calculated as EBITDA subtracted by the CAPEX Reserve or the Total Revenue subtracted by the Operating Expense and CAPEX Reserve. It represents a cash-on-hand generated at a lodging property, and is the cash flow basis for estimating the Income Value of a commercial real estate such as a lodging property.
NOI %Net Operating Income % to RevenueAn efficiency indicator showing how much cash is left at a lodging property as a result of operating activities, calculated as the Net Operating Income divided by the Total Revenue. It takes into account of both operating efficiency and asset efficiency, used as the basis to measure return on investment in commercial real estate such as a lodging property.
NOI PRNet Operating Income Per RoomA unit measure of the Net Operating Income calculated as the Net Operating Income divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
NOI/GOP %Net Operating Income % to Gross Operating ProfitAn efficiency indicator for utilization of assets at a lodging property, which is calculated as the Net Operating Income divided by the Gross Operating Profit. It represents how efficiently the assets are utilized as the difference between the Net Operating Income and the Gross Operating Profit is the expense associated with holding assets.
DepreciationDepreciation ExpenseThe allocated portion of the cost of non-current assets that are appropriate for a specific time period, which is recognized on the Income Statement as a non-cash expense that reduces the Net Income. It is added back to calculate cash flow from operations in the Cash Flow Statement.
Depr. LifeDepreciable LifeAn accounting estimate of the number of years a non-current asset is likely to remain in service for the purpose of cost-effective revenue generation. It is used to determine the amount of time during which an asset can be depreciated.
Non-Op. IncomeNon-Operating IncomeA business income derived from activities unrelated to its core business operations. It can include items such as dividend income, profits, or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs.
Non-Op. ExpenseNon-Operating ExpenseA business expense unrelated to the core operations. The most common types of non-operating expenses are interest charges and losses on the disposition of assets.
Bad DebtBad Debt ExpenseA written-off cost recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt.
NINet IncomeThe ultimate income of a company or a property, recorded in the Income Statement, which is calculated as the Net Operating Income subtracted by non-cash and non-operating expenses such as depreciation expense and interest expense. It is the basis for income tax and dividends for shareholders.
NI/NOI %Net Income % to Net Operating IncomeAn efficiency indicator for capital structure of a lodging property, which is calculated as the Net Income divided by the Net Operating Income, expressed as a percentage figure.
FSFinancial StatementsWritten records that convey the business activities and the financial performance of a company or a property. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include: Income Statement, Balance Sheet and Cash Flow Statement.
Accounting StandardsAccounting StandardsA common set of principles, standards and procedures that define the basis of financial accounting policies and practices. GAAP is widely accepted in the USA while IFRS is commonly used in the other countries.
ISIncome StatementA financial statement used for reporting a company's or a property's financial performance over a specific time period, which primarily focuses on the lodging property’s revenues and expenses.
BSBalance SheetA financial statement used for reporting a company's or a property's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for evaluating its capital structure.
CFCash Flow StatementA financial statement used for reporting aggregate data regarding all cash inflows a company or a property receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a specific time period.
Non-Cur. AssetNon-Current AssetA company's or a property's long-term investments including tangible assets and intangible assets, for which the value is depreciated for the remaining depreciable life and the full value will not be realized within the accounting year.
Non-Current Asset PRNon-Current Asset Per RoomA unit measure of Non-Current Asset calculated as the Non-Current Asset divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Tangible AssetTangible AssetPhysical assets owned by a company or a property, such as land, building, furniture and equipment, which are the main type of assets that companies use to produce their products and services.
Tangible Asset PRTangible Asset Per RoomA unit measure of Tangible Asset calculated as the Tangible Asset divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Intangible AssetIntangible AssetAn asset that is not physical in nature, including goodwill, brand recognition and intellectual properties such as patents, trademarks, and copyrights. It composes the Non-Current Asset together with Tangible Assets.
Intangible Asset PRIntangible Asset Per RoomA unit measure of Intangible Asset calculated as the Intangible Asset divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Current AssetCurrent AssetAll the assets of a company or a property that are expected to be conveniently sold, consumed, used, or exhausted within a year through standard business operations, including cash, financial instrument, account receivable, pre-paid expense and inventory. It is used to find out short-term solvency of a company or a property.
Current Asset PRCurrent Asset Per RoomA unit measure of Current Asset calculated as the Current Asset divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Total AssetTotal AssetThe accounting value of a company's or a property's entire assets, which is calculated as the sum of Current Asset and Non-Current Asset. It can be also calculated as the Acquisition Cost subtracted by accumulated depreciation expense and added by accumulated additional investments. It does not represent the market value of the company as external factors are not taken into account.
LiabilityLiabilityA sum of money that a company or a property owes, which are settled over time through the transfer of economic benefits including money, goods or services. It is recorded on the right side of the Balance Sheet, and includes Current Liability and Non-Current Liability. It helps to evaluate financial healthiness of a company or a property.
Liability PRLiability Per RoomA unit measure of Liability calculated as the Liability divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Non-Current LiabilityNon-Current LiabilityLong-term financial obligations due beyond twelve months in the future, which are listed on a company’s or a property's Balance Sheet. It includes bonds, advanced deposits, loans, severance provisions and deferred tax obligations. It helps to evaluate stability of a company's or a property's capital structure.
Non-Current Liability PRNon-Current Liability Per RoomA unit measure of Non-Current Liability calculated as the Non-Current Liability divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Current LiabilityCurrent LiabilityShort-term financial obligations due within a year in a normal operating cycle, the time taking to purchase inventory and convert it to cash from sales. It includes short-term borrowings, account payables, advanced payments and tax credits.
Current Liability PRCurrent Liability Per RoomA unit measure of Current Liability calculated as the Current Liability divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
EquityEquityThe amount of money that would be returned to a company’s shareholders if all of the assets of the company are liquidated and all of the company's liabilities are paid back. If the weight of Equity is higher, the capital structure is deemed more stable, while use of capital may be less efficient.
Equity PREquity Per RoomA unit measure of Equity calculated as the Equity divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
PI CapitalPaid-in CapitalThe amount of capital paid in by investors during common or preferred stock issuances, including the par value of the shares themselves plus amounts in excess of par value.
PI Capital PRPaid-in Capital Per RoomA unit measure of Paid-in Capital calculated as the Paid-in Capital divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Cap. SurplusCapital SurplusThe amount of surplus obtained when common stock is sold for more than its par value. Capital Surplus includes equity or net worth otherwise not classifiable as earnings surplus.
Cap. Surplus PRCapital Surplus Per RoomA unit measure of Capital Surplus calculated as the Capital Surplus divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Earn. SurplusEarnings SurplusThe amount of surplus obtained when a portion of net income is left over for the business after a company has paid out dividends to its shareholders. It is also know as the 'Retained Earnings'.
Earn. Surplus PRRetained Earnings Per RoomA unit measure of Earnings Surplus calculated as the Earnings Surplus divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Total L&EEquity and LiabilitySum of Equity and Liability, which is equal to Total Asset. It represents the amount of capital a company has sourced to secure assets used for producing goods and services.
Working Cap.Working CapitalThe difference between a company’s Current Asset and Current Liability. It represents the amount of capital used for managing the time difference between inflow and outflow of cash in association with its business.
Working Cap. PRWorking Capital Per RoomA unit measure of Working Capital calculated as the Working Capital divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Income ValueIncome ValueThe value of a property based on cash flows it generates or is expected to generate. It is calculated as the Net Operating Income divided by a relevant capitalization rate. It is the most commonly used indicator of the market value of commercial real estates such as lodging properties.
Cap %Capitalization RateA discount rate typically used to estimate the market value of commercial real estate properties or unlisted companies, indicating the rate of return expected to be generated on the property or the company. It is widely used as it is intuitive enough to be used easily, but has a limitation in that it does not capture long-term trends of cash flows.
Income Value PRIncome Value Per RoomA unit measure of Income Value of a company or a property calculated as the Income Value divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Book ValueBook ValueThe cost of carrying an asset on a company's Balance Sheet, which is calculated as the original acquisition cost subtracted by accumulated depreciation, amortization or impairment made against the asset. In stock markets, it typically represents the value of equity netting liabilities while representing total asset in most real estate markets.
Book Value PRBook Value Per RoomA unit measure of Book Value of a company or a property calculated as the Book Value divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Replacmnt. CostReplacement CostThe amount of money a business must currently spend to replace an essential asset like a real estate property, an investment security, a lien or another item, with one of the same or higher value. Insurance companies routinely use replacement costs to determine the value of an insured item.
Construction CostConstruction CostExpense incurred by a contractor, including costs for labor, material, equipment, services, utilities as well as overheads and contractor's profit, while excluding costs for land, architectural design, consultant and engineer's fee.
Construction Cost PRConstruction Cost Per RoomA unit measure of Construction Cost of a property calculated as the Construction Cost divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Pre-OpeningPre-Opening CostThe costs incurred when a decision to open the business or trade has been made, but before the business is actually started. It includes costs for advertising the business opening, promotional items for grand business opening, salaries for employee training, building and equipment repairing.
Pre-Opening PRPre-Opening Cost Per RoomA unit measure of Pre-Opening Cost of a lodging property calculated as the Pre-Opening Cost divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.
Replacmnt. Cost PRReplacement Cost Per RoomA unit measure of Replacement Cost of a property calculated as the Replacement Cost divided by the number of rooms. It is used to compare across comparable companies or properties on the same basis.

*Definitions of terms above may have meanings different from general interpretations either in IFRS or USALI. Please understand that they are not errors but an outcome of our effort to reconcile the differences without deteriorating the core concept of each term. We tried to provide as much further explanations as possible for interpretations likely to cause confusions, and we will keep updating them forward, in order to remove the possibility of confusions.

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