| Avbbreviation | Full Term | Defition |
|---|---|---|
| GDP | Gross Domestic Product | Total 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. |
| GRDP | Gross Regional Domestic Product | Total 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 % Change | A 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. |
| Interest | Interest Rate | An amount which a lender charges periodically for the use of the credit, expressed as a percentage of the principal amount. |
| Base Interest | Base Interest Rate | A 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 Interest | Lending Interest Rate | An 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 Spread | Interest Rate Spread | The 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 Stabilization | Demand Stabilization Period | A 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 Stabilization | Price Stabilization Period | A 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 Stabilization | Expense Stabilization Period | A 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 Series | Time Series | A 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. |
| Index | Index | An 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') |
| Cycle | Market Cycle | A 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. |
| Peak | Peak | An inflection point at the peak of a time series sample, where an upward trend turns to a downward trend. |
| Trough | Trough | An inflection point at the trough of a time series sample, where a downward trend turns to an upward trend. |
| Type | Type | A 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. |
| Grade | Grade | A 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 Set | Competitive Set | A 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. |
| Share | Share | The 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 Share | Supply 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 Share | Demand 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 Share | Revenue Share | The 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. |
| Penetration | Penetration | An 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 Rooms | Number of Rooms | The number of guestrooms a lodging property offers to guests, representing the maximum capacity the lodging property can provide per day. |
| Avg. Rooms | Average Room Count Per Property | The 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 Mix | Facility Mix | The 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. |
| RFA | Room Facility Area | Total area of guestroom floors, which includes common area attached to the floor such as staircases, elevators and corridors. |
| RFA PR | Room Facility Area Per Room | A 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. |
| OFA | Other Facility Area | Total 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 PR | Other Facility Area Per Room | A 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. |
| GCA | General Common Area | Total area of common area other than that attached to guestroom floors and other facilities, which includes parking spaces, mechanical spaces and employee spaces. |
| GCA PR | General Common Area Per Room | An 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. |
| LFA | Lodging Facility Area | Total 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 PR | Lodging Facility Area Per Room | A 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. |
| NLFA | Non-Lodging Facility Area | Total area of a property used other than lodging facility, which is calculated as the Gross Floor Area subtracted by the Lodging Facility Area. |
| NLFA PR | Non-Lodging Facility Area Per Room | Calculated 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. |
| GFA | Gross Floor Area | Total 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. |
| OGA | Over-Ground Area | Total 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. |
| SA | Site Area | The 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 PR | Site Area Per Room | A quality indicator for a lodging property, which is calculated as the Site Area divided by the number of rooms. |
| FAR | Floor Area Ratio | A 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 Seats | Number of Seats | Total number of seats offered in non-room facilities, including restaurants and bars while excluding banquets as seating capacity varies by layout. |
| Seats PR | Number of Seats Per Room | An indicator of facility mix efficiency, which is calculated as the number of seats divided by the number of rooms. |
| Seats PSQM | Number of Seats Per Other Facility Area | A 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 Available | Rooms Available, Room Supply | Total 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 Occupied | Rooms Occupied, Room Demand | Total 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 Occupied | International Rooms Occupied | Total number of room nights sold to international guests during a specific time period. |
| Dom. Rooms Occupied | Domestic Rooms Occupied | Total number of room nights sold to domestic guests during a specific time period. |
| OCC | Occupancy | A 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. OCC | International Occupancy | A 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. OCC | Domestic Occupancy | A 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 Guests | Number of Guests | Total 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. Guests | Number of International Guests | Total 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. Guests | Number of Domestic Guests | Total 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 POR | Guests Per Occupied Room | A 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 POR | International Guests Per Occupied Room | The 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 POR | Domestic Guests Per Occupied Room | The 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 Revenue | Room Revenue | Sum 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 Revenue | International Room Revenue | Room Revenue generated by International Guests during a specific time period. |
| Dom. Room Revenue | Domestic Room Revenue | Room Revenue generated by Domestic Guests during a specific time period. |
| Room RevPAR | Room Revenue Per Available Room | Average 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. |
| ADR | Average Daily Rate | Average 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 ADR | International Average Daily Rate | Average Room Revenue generated per each of Rooms Occupied by International Guests. It is calculated as International Room Revenue divided by International Rooms Occupied. |
| Domestic ADR | Domestic Average Daily Rate | Average 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 Covers | Number of Covers | Total 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. Covers | Number of International Covers | Total number of International Covers, where in-house customers typically account for majority share. |
| Dom. Covers | Number of Domestic Covers | Total number of Domestic Covers, where outside customers typically account for majority share. |
| Covers PG | Covers Per Guest | A 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 PG | International Covers Per Guest | A 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 PG | Domestic Covers Per Guest | A 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 POR | Covers Per Occupied Room | A 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 POR | International Covers Per Occupied Room | A 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 POR | Domestic Covers Per Occupied Room | A 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 Revenue | Other Revenue | Sum 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 Revenue | International Other Revenue | Other 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 Revenue | Domestic Other Revenue | Other 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 RevPOR | Other Revenue Per Occupied Room | Average 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 RevPOR | International Other Revenue Per Occupied Room | Average 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 RevPOR | Domestic Other Revenue Per Occupied Room | Average Other Revenue generated per each room occupied by domestic guests. It is calculated as the Domestic Other Revenue divided by Domestic Rooms Occupied. |
| Other RevPAR | Other Revenue Per Available Room | Average 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. Check | Average Check | Average 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. Check | International Average Check | Average 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. Check | Domestic Average Check | Average 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 Revenue | Total Revenue | All 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 Revenue | International Total Revenue | Total 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 Revenue | Domestic Total Revenue | Total 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 RevPAR | Total Revenue Per Available Room | Average 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 Department | Mix 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 Origin | Revenue Mix by Origin | Mix 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. |
| OE | Operating Expense | Sum 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. |
| LC | Labor Cost | Expense 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. |
| EFTE | Number of Effective Full-Time Employees | Total 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 PR | Effective Full-Time Employees Per Room | An 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/EFTE | Labor Cost Per Effective Full-Time Employee | An 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 Expense | Expense 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. PAR | Fixed Expense Per Available Room | Fixed 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 Expense | Expense 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. POR | Variable Expense Per Occupied Room | Variable 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 Expense | Expenses 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 Expense | Expenses 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 Expense | Room Expense | Departmental Expense spent in Room Department. Typically, it is approximately 20-35% of Room Revenue, as room products are highly standardized in general. |
| Room EFTE PR | Room EFTE Per Room | An 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 Expense | An 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. PAR | Room Fixed Expense Per Available Room | The 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 Expense | An 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. POR | Room Variable Expense Per Occupied Room | Room Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis. |
| Other Expense | Other Expense | Departmental 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 PR | Other EFTE Per Room | An 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 Expense | An 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. PAR | Other Fixed Expense Per Available Room | The 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 Expense | An 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. POR | Other Variable Expense Per Occupied Room | The 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 Expense | Expenses 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 PR | Undistributed Effective Full-Time Employees Per Room | An 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 Expense | An 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. PAR | Undistributed Fixed Expense Per Available Room | The 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 Expense | An 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. POR | Undistributed Variable Expense Per Occupied Room | The Undistributed Variable Expense expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis. |
| GOP | Gross Operating Profit | Operating 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 Revenue | An efficiency indicator for operating activities, calculated as the Gross Operating Profit divided by the Total Revenue, expressed as a percentage figure. |
| Indirect Exp. | Indirect Expense | Expenses 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. Cost | Distribution Cost | Expense 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 POR | Distribution Cost Per Occupied Room | An 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. Fee | Commission Fee | Fees 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 Revenue | An 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. Charges | Fixed Charges | Expense 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 PAR | Fixed Charges Per Available Room | The Fixed Charges expressed on a per-occupied-room basis, used to compare across comparable companies or properties on the same basis. |
| EBITDA | Earnings Before Interests, Taxes, Depreciation and Amortization | Operating 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 Revenue | An 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 Reserve | Capital Expenditure Reserve | An 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 Revenue | A ratio of the Capital Expenditure Reserve as compared to the Total Revenue, expressed as a percentage figure. Typically, it increases as the property ages. |
| NOI | Net Operating Income | Operating 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 Revenue | An 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 PR | Net Operating Income Per Room | A 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 Profit | An 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. |
| Depreciation | Depreciation Expense | The 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. Life | Depreciable Life | An 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. Income | Non-Operating Income | A 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. Expense | Non-Operating Expense | A 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 Debt | Bad Debt Expense | A 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. |
| NI | Net Income | The 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 Income | An 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. |
| FS | Financial Statements | Written 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 Standards | Accounting Standards | A 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. |
| IS | Income Statement | A 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. |
| BS | Balance Sheet | A 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. |
| CF | Cash Flow Statement | A 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. Asset | Non-Current Asset | A 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 PR | Non-Current Asset Per Room | A 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 Asset | Tangible Asset | Physical 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 PR | Tangible Asset Per Room | A 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 Asset | Intangible Asset | An 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 PR | Intangible Asset Per Room | A 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 Asset | Current Asset | All 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 PR | Current Asset Per Room | A 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 Asset | Total Asset | The 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. |
| Liability | Liability | A 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 PR | Liability Per Room | A 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 Liability | Non-Current Liability | Long-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 PR | Non-Current Liability Per Room | A 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 Liability | Current Liability | Short-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 PR | Current Liability Per Room | A 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. |
| Equity | Equity | The 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 PR | Equity Per Room | A 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 Capital | Paid-in Capital | The 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 PR | Paid-in Capital Per Room | A 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. Surplus | Capital Surplus | The 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 PR | Capital Surplus Per Room | A 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. Surplus | Earnings Surplus | The 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 PR | Retained Earnings Per Room | A 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&E | Equity and Liability | Sum 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 Capital | The 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. PR | Working Capital Per Room | A 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 Value | Income Value | The 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 Rate | A 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 PR | Income Value Per Room | A 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 Value | Book Value | The 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 PR | Book Value Per Room | A 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. Cost | Replacement Cost | The 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 Cost | Construction Cost | Expense 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 PR | Construction Cost Per Room | A 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-Opening | Pre-Opening Cost | The 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 PR | Pre-Opening Cost Per Room | A 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 PR | Replacement Cost Per Room | A 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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