Hotel Glossar

AJAX progress indicator
  • Term
    Definition
  • ABC analysis is a tool for analytically weighting objects based on selected parameters. The objects are divided into classes A, B and C, providing information about the current situation within a company. Typically, this business management method summarises objects using two-dimensional(...)
  • The abbreviation ADR stands for ‘Average Daily Rate’ and describes a business indicator used to assess the average room rate of a business. The ADR is calculated purely on the basis of the room price, which means that no other costs such as breakfast etc. are included. Calculation of the(...)
  • In revenue management, so-called advance purchase rates are often set up. These usually refer to special offers that provide guests with a lower rate on the condition that they pay in advance during the booking process and cannot cancel their stay free of charge.
  • Depreciation for wear and tear (AfA) or amortization is a term used in tax law. Depreciation relates to the acquisition and production costs of depreciable fixed assets spread over the normal useful life of the asset. This ensures that acquisition goods exceeding a certain value are not(...)
  • In the hotel industry, the term A&G (Administration & General) is used in connection with management and administrative tasks.
  • Adjusted gross operating profit is a measure that represents a company's adjusted operating profit after taking into account management and franchise fees.
  • All-inclusive is a type of accommodation in a hotel or similar accommodation, which includes at least three meals per day, including all amenities such as drinks, activities, etc. Meals are provided for the entire duration of the trip.
  • Allotment is a contingent or contract between a hotelier and a contractual partner, such as travel agencies, tour operators (OTA`s). A hotelier agrees to make a certain number of rooms available at an agreed price over a fixed period of time. The contract partner resells his room contingent(...)
  • The key figure ALOS stands for Average Length of Stay and expresses the average length of stay of guests at the hotel.
  • Alternative investments refer to forms of investment that fall outside traditional asset classes such as equities, bonds and cash. These include, among others: private equity (investments in unlisted companies), hedge funds (active investment strategies involving derivatives, short selling,(...)
  • The Average Rate Index (ARI) is a key figure used to calculate the average rate performance of a hotel and serves as a benchmark value. It compares the ADR achieved by a defined set of competitors (CompSet) with the ADR achieved by the hotel itself. Calculation of the ARI:ARI = (ADR of the(...)
  • The term ARR stands for ‘average room rate’ and describes the average rate paid by hotel guests per room sold. Calculation of ARR: ARR = accommodation revenue / number of overnight stays sold
  • From a macroeconomic perspective, the term ‘asset classes’ refers to a subdivision of asset segments in the financial market, such as securities, equities, funds, commodities or real estate. Within the real estate industry, individual segments are also differentiated according to parameters(...)
  • The abbreviation B2B (Business to Business) denotes relationships or business from company to company. Private hotel guests are not included in this category.
  • B2C (Business to Customer) describes the relationship between companies and customers.
  • The BAR (= best available rate) is the best possible room rate available at the time of booking and can change dynamically depending on demand. It is a very flexible rate.
  • The base fee is a fee paid to the operator under the management contract. It is generally a contractually agreed percentage of gross turnover.
  • Basis points (BPs) are a common unit of measurement used to indicate changes in interest rates or yields in financial markets. One basis point corresponds to 0.01% or 1/100 of a percentage point. The CREEM Path helps investors, developers and operators to systematically structure and(...)
  • A bed and breakfast hotel is a type of hotel that primarily offers accommodation and breakfast, sometimes supplemented by drinks and light meals, but without the classic restaurant service of a full-service hotel. The term bed and breakfast comes from French and means ‘equipped hostel’.
  • The term ‘benchmark’ is used for competitive analysis and the continuous comparison of hotel products by comparing key figures in order to systematically close the performance gap between one's own offering and that of the competition.
  • BOB (= Business on Books) or "On the Books" is a key figure that describes the current booking status in the PMS system (Property Management System) and is used, among other things, for forecasts.
  • The abbreviation BoH stands for ‘Back of the House’ and describes those areas that are not accessible to hotel guests but are only used by hotel staff, such as the kitchen, storage rooms, etc.
  • The "bottom line" in the hotel industry refers to the net profit of a hotel after deducting all expenses and costs. It represents the actual profit that the hotel makes after all operating costs, interest, taxes, depreciation, etc. have been taken into account.
  • The abbreviation CAGR stands for ‘compound annual growth rate’ and describes the annual growth rate of a key figure in the observation period, which is usually fixed. CAGR is mostly used in market analyses and investment calculations.
  • The cap rate or capitalization rate describes the ratio of net income to the current market price (= value) of a property. The cap rate is often used by investors to evaluate the return on an investment in a hotel.
  • CapEx (= Capital Expenditure), an important internal indicator, expresses a company's capital expenditure on long-term assets such as real estate, machinery, buildings, equipment or IT systems. Capital expenditures also increase the asset side of the balance sheet and can be used to assess(...)
  • The capitalised earnings value is a concept that represents the value of an investment at a future point in time. It enables investors to estimate how profitable an investment is and what risk is associated with it.
  • Cash flow is a relevant economic indicator for assessing the financial strength of a hotel. It shows the cash flow generated within a selected period as the difference between inflows and outflows within the company. Calculation of cash flow:Net income or net loss for the(...)
  • The visitor's tax, also known as the local tax or city tax, is a tourism levy that is used to preserve the environment or to invest in facilities and events that benefit tourists.
  • A Channel Management System (CMS) is software that helps hotels manage room rates and availability automatically and centrally on various online booking portals (e.g. Booking.com, Expedia). This prevents overbookings and significantly reduces administrative costs.
  • Co-living concepts describe hotel-like facilities where guests stay in hotel rooms but can also use so-called community spaces. These include shared kitchens, offices, recreation rooms and event areas.
  • The term ´carbon footprint´ refers to the total greenhouse gas emissions measured in CO2 equivalents for a specific entity such as a company, the life cycle or part of the life cycle of a product or service. Reducing the carbon footprint can be achieved through measures such as the use of(...)
  • Carbon offsetting is a mechanism whereby a company or individual offsets by purchasing carbon credits or financing projects that reduce or avoid CO2 emissions. This process is part of carbon neutrality and carbon footprint reduction strategies. It is intended to help reduce the net CO2(...)
  • A competitive intensity is the strength of competition in a certain predefined hotel market. The higher the intensity, the stronger the competitive pressure due to competitors.
  • Competitive intensity refers to the strength of competition in a specific, predefined hotel market. The higher the intensity, the stronger the competitive pressure from competitors.
  • A CompSet refers to a predefined number of competitors in the hotel industry that have a comparable star rating and appeal to a similar target group. CompSets are based on a self-selected basis for comparison and use this to provide information about a company's own market share compared to(...)
  • The conversion rate (CRV) is an important metric in online marketing. It indicates the ratio of website visitors to actual actions taken, such as hotel bookings. A low conversion rate can have various causes, e.g. a confusing booking process, an unfavourable price-performance ratio,(...)
  • The ‘core’ risk class in real estate valuation refers to an investment with the relatively lowest probability of default for investors. Properties in the ‘core’ category primarily include office, hotel or retail properties, which are characterised by their prime location and long-term leases.(...)
  • The risk class ‘core’ in property valuation refers to an investment with moderate risk and relatively low expected returns. Most aspects of a core property also apply to core plus properties, which are located in 1B locations, have higher vacancy rates and usually have slightly shorter-term(...)
  • The corporate rate is a specific rate for corporate customers. The rate is predefined in a corresponding corporate contract and applies to the corresponding hotel or hotel chain and its partners.
  • COS (= Cost of Sale) summarizes all costs incurred in a hotel business for a booking. The costs can arise, for example, from GDS-distribution fees (= a global distribution system), commissions, etc.
  • CPA (= cost per acquisition) refers to the average costs incurred to acquire a new customer. CPA helps marketing teams better assess, understand, and draw conclusions about the effectiveness of their spend.
  • The CPI (= consumer price index) reflects the current changes in prices in the hotel industry. Thus, it serves as an indicator to measure the price changes for accommodation and restaurant services in a specific region or country.
  • The CREEM path is an assessment model for reducing CO₂ emissions from real estate in line with the Paris climate targets. It shows how much CO₂ a building is allowed to emit per year – and thus also defines the point at which an asset becomes a ‘stranded asset’. In the hotel real estate(...)
  • The abbreviation CRM stands for ‘customer relationship management’ and refers to targeted customer relationship management, which helps companies stay connected with their customers and optimise processes in the long term.
  • CRO (= Central Reservation Office) is a reservation center. The central office is operated mainly by international hotel chains, furthermore, from this central contact point, all reservations are coordinated and bundled.
  • Unlike upselling, cross-selling does not involve offering the customer a higher-value product, but rather an additional item that goes beyond that.
  • The abbreviation CRS stands for ‘Central Reservation System’, which is a hotel's central reservation system. It bundles availability and prices and makes them available in real time as booking software for a wide variety of channels. It also functions as a database with an interface to the(...)
  • CSR or Corporate Social Responsibility is the independent responsibility of companies to include social and ecological aspects in their business activities on a voluntary basis and to comply with ethical standards. In the hotel industry, for example, this means taking into account(...)
  • The CSRD (Corporate Sustainability Reporting Directive) is an EU directive that requires companies to produce more comprehensive and standardised reports on their sustainability practices (e.g. environmental, social, corporate governance). The aim is to create greater transparency and provide(...)
  • In hotel revenue management, ‘Closed to Arrival’ (CTA) refers to a well-known restriction in the form of an availability block. On this day, no arrivals are possible at the hotel and the booking options are adjusted accordingly. Departures on this day or multi-day bookings that extend beyond(...)
  • Ein „Closed To Departure“ (CTD) bezeichnet im Rahmen des Revenue Managements eines Hotels eine bekannte Restriktion in Form einer Verfügbarkeitssperre. In Anlehnung an den CTA ist an Terminen mit dieser Restriktion keine Abreise möglich und die Buchungsoptionen sind entsprechend angepasst.(...)
  • ´Carbon Value at Risk´ (CVaR) refers to the potential financial burden that can result for a company from taking climate risks into account. It is a metric that quantifies the loss of value due to CO2 emission risks in different scenarios, and thus assesses the risk to the company that may(...)
  • The delimitation list serves as an interface between building services, construction and the resulting operational facilities. A delimitation list does not reflect a target performance, but serves as an indicator of which party is responsible for the initial equipment and which for maintenance.
  • The term ‘deposit’ refers to the advance payment required for a hotel stay. The hotel has the option of requesting a deposit when the reservation is made – a fixed percentage throughout the year or the total amount for special rates.
  • The DCF method is used to determine the value of a company. It is based on the assumption that the value of a company depends mainly on the expected future cash flows or results from discounting the cash flows (= future cash flows are discounted to their present value).
  • In revenue management, decisions must be made daily to ensure the best possible occupancy and price control for a hotel. This includes, in particular, decisions regarding the placement of groups. Incoming enquiries from groups should always be analysed to determine the total revenue generated(...)
  • Distressed properties are properties that are in distress due to financial difficulties. This may be due to the owner's payment difficulties, insolvency, or other financial problems. Distressed properties are often offered at a reduced price because they may be in need of repair or maintenance.
  • The abbreviation DOF stands for ‘double occupancy factor’ and describes the average double occupancy of a room, i.e. how many people stay in a room at the same time.
  • Due diligence in the hotel sector is an examination prior to a transaction or purchase decision of a property, which provides the buyer with information about strengths, weaknesses and risks of the hotel. It is an important tool for an informed decision before the purchase and serves as a(...)
  • Dynamic pricing refers to a flexible pricing strategy in which hotel room prices are adjusted in real time based on supply and demand, market conditions and other factors. Important influencing factors include booking status, seasonal fluctuations, competitor prices and booking time. By using(...)
  • E-commerce refers to electronic commerce, which is often also referred to as a virtual or electronic marketplace. The focus here is not exclusively on sales via the internet, but encompasses all online-based hotel activities.
  • The capitalized earnings value is a concept that represents the value of an investment at a future point in time. It enables investors to estimate how profitable an investment is and what risk is associated with it.
  • The abbreviation EBIT stands for ‘Earnings Before Interest and Tax’ and describes a business indicator that shows earnings before interest and taxes and is used as a measure of profitability.
  • The abbreviation EBITDA/NOI stands for ‘Earnings before Interest, Taxes, Depreciation, Amortisation / Net Operating Income’ and describes business indicators used to assess a company's operating income. EBITDA describes profit before taxes, interest and depreciation.
  • An EMA refers to a booking that is made electronically by means of an e-mail.
  • This key figure measures the employee turnover of a company. It is about the employees who leave or join the hotel within an observation period. The fluctuation can also refer within the company between individual departments.
  • The term ESG (Environment, Social, Governance) refers to non-financial factors such as environmental, social and good corporate governance, which should be taken into account in the investment process in the future.
  • The term ESG (Environment, Social, Governance) refers to non-financial factors such as environmental, social and good corporate governance, which should be taken into account in the investment process in the future.
  • Ethical investing is an investment strategy that focuses not only on financial returns but also on ethical, moral or social aspects. The aim is to make investments that have a positive impact on society and the environment.
  • Regulation (EU) 2020/852, which was adopted by the European Parliament and Council, aims to establish a framework to promote sustainable investments and to amend Regulation 2019/2088. The EU taxonomy represents a classification system that contains a list of environmentally sustainable(...)
  • The exit yield is used to assess the expected return on an investment, particularly with regard to the timing of the exit or sale of the investment. It indicates how much profit an investor can expect in relation to the debt capital invested.
  • The term ‘extended stay’ refers to hotel stays over a longer period of time, usually more than seven days. Weekend rates are quoted for extended stays.
  • A family office is a company that manages and administers the assets of one or more wealthy families. It offers comprehensive services in the areas of asset management, financial planning, tax optimisation, succession planning and often philanthropy. Family offices aim to preserve and grow(...)
  • The term stands for Food & Beverage. The F&B area is one of the largest departments in the hotel, along with the front office, housekeeping, etc.
  • A feasibility study is a tool used to assess the feasibility and viability of projects. In the form of a short or full study, it analyses possible solutions, risks and potential. Among other things, a feasibility study aims to identify specific goals, means of implementation and ways to(...)
  • The abbreviation FF&E stands for ‘Furniture, Fixtures and Equipment’ and describes all items in a hotel that are not part of the building itself but relate to its furnishings (e.g. chairs, beds, etc.).
  • FF&E reserves are usually set up by the hotel operator. They are used to replace faulty or broken items in the hotel as needed.
  • The abbreviation FoH stands for the English expression ‘Front of the House’. The term refers to the publicly accessible areas/rooms for hotel guests. This contrasts with the expression BoH.
  • In revenue management, a forecast is a prediction of a hotel's future performance. In addition to a reliable evaluation of historical data, continuous market analysis with regard to future developments is also necessary for targeted positioning and an efficient pricing strategy. The(...)
  • This term expresses the time value that a full time equivalent worker provides. At the same time, the key figure is of great importance for personnel recruiting and provides an important basis for further analyses.
  • Full board is a type of accommodation in a hotel or similar accommodation. It includes three meals a day, and meals are provided for the entire duration of the trip.
  • Full occupancy days are a key figure that determines the number of days when all the hotel's rooms are fully occupied (= 100%). Furthermore, a distinction can be made between bed full occupancy days and room full occupancy days.
  • FY (=Full Year) refers to the full fiscal year.
  • A merger in the hotel sector refers to the merger of at least two legally independent hotels into one economic and legal entity. Each merger in the hotel sector is individually designed by the companies involved, which means that the exact conditions and effects vary from case to case.
  • The abbreviation GDS stands for Global Distribution System. These are global databases of tourist services that are available to a large network of providers. They can use the GDS to make direct bookings at the desired hotel, giving it access to international guests. The best-known providers(...)
  • FAR stands for floor area ratio and indicates how much usable floor area of a building may be erected on a specific plot of land. The index thus determines the maximum structural utilization of a plot of land and indicates the ratio of building area to plot area.
  • The abbreviation GM stands for ‘General Manager’ and describes the position of hotel director, also known as hotel manager.
  • The abbreviation GOP stands for ‘Gross Operating Profit’ and describes the gross operating result, i.e. the surplus of operating income over operating expenses. By representing the operating result of a business, GOP is one of the most important key figures in the hotel industry.
  • GOPPAR (= Gross Operating Profit per Available Room) refers to gross operating profit per available room. It is an important KPI used for revenue management.
  • The abbreviation GFA stands for ‘gross floor area’ and describes the sum of the available boundary areas of all floor plans, as specified in the DIN 277 standard.
  • This includes hotel guests with a negotiated group rate.
  • Unlike full board, half board is a different type of accommodation in a hotel or similar accommodation. It includes breakfast in the morning and, in most cases, dinner. Meals are provided for the entire duration of the trip.
  • Headcount refers to the number of employees in the hotel or, for example, in a particular area.
  • The abbreviation HoT stands for ‘Head of Terms’ and thus literally refers to a preliminary agreement between two or more parties. This agreement is drawn up after an LOI has been submitted, once the parties have agreed to enter into exclusive contract negotiations with each other.
  • A hotel real estate fund is an investment fund that invests specifically in hotel properties. These funds pool capital from investors to acquire, develop or operate hotels. They offer investors the opportunity to participate in the growth of the hotel market without having to own or manage(...)
  • The abbreviation IBE stands for Internet Booking Engine and refers to an application for booking (tourist) services on the Internet. The IBE provides rates and availability in real time and allows guests to make direct bookings and receive immediate confirmation. IBEs can also bundle various(...)
  • The incentive fee is a type of remuneration that the manager receives when a certain agreed revenue threshold is exceeded, thereby ensuring greater management efficiency.
  • An institutional investor is a company or organisation that invests large amounts of capital in various asset classes. These include banks, insurance companies, pension funds, investment companies, foundations and family offices. Unlike private investors, institutional investors have(...)
  • The management of a hotel business is handed over by the owner to the interim manager (e.g. external company) for a certain period of time. Interim managers make decisions regarding personnel planning, budget planning and control, and revenue generation, among other things.
  • An investment fund is an investment vehicle that pools capital from multiple investors and invests it in various assets such as stocks, bonds, real estate, or other financial instruments according to a specific investment strategy. An investment fund is managed by a fund management company,(...)
  • A joint venture in the hotel industry is a collaboration between two or more companies to jointly develop and operate a hotel project, for example. Each participating company contributes its expertise, own resources and capital to successfully realize the hotel project. Joint ventures can be(...)
  • This involves the acquisition of new customers with whom no business relationship previously existed and whom one does not know personally. It involves making contact with the aim of convincing these potential customers of the products/services and establishing a business relationship.(...)
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  • The abbreviation KPI stands for “Key Performance Indicator” and describes business metrics used to assess the performance of a company. Their purpose is to represent the company and its sub-areas in terms of performance using key figures, thereby controlling and evaluating a wide variety of(...)
  • The abbreviation LCR stands for “lease coverage ratio” and refers to the lease coverage factor. The higher the value, the lower the default risk.
  • In the hotel industry, lead time refers to the period between booking completion and arrival at the hotel. It is important for hoteliers to know the average lead time for their establishment in order to better assess booking trends and respond with appropriate revenue management measures.
  • A Letter of Intent (LOI) is a contract signed by two or more parties expressing their interest in entering contract negotiations or concluding a contract. It can be regarded as a kind of preliminary contract documenting the declarations of intent of the parties involved.
  • The term “long stay” refers to a booked period of time that is longer than usual. As a rule, guests stay for up to four weeks. Long stays are particularly common in serviced apartments or boarding houses.
  • Loyalty programs aim to strengthen guests' loyalty to the accommodation provider and to encourage them to make bookings or become regular guests. Such programs are particularly widespread in the international hotel industry. Guests collect points with each stay, which they can then redeem for(...)
  • Last Room Availability (LRA) refers to a contractual condition agreed upon with (corporate) customers. The contractual conditions set apply to this customer until the last room is sold, regardless of category.
  • In a business context, the abbreviation M&A stands for mergers and acquisitions and generally refers to a merger of companies. A merger involves two independent companies that merge or amalgamate to form a single economic and legal entity.An acquisition refers to the purchase of an entire(...)
  • In a management contract, the hotel owner commissions an operator to manage a specific property on his behalf. In return, the operator (e.g. hotel chains) receives a fixed or performance-based management fee. However, the responsibility and economic risk remain on the side of the owner.
  • The management fee is an amount paid by the management provider to the management recipient under a hotel property management agreement. The management fee is regulated by contract.
  • Mezzanine capital is a form of financing consisting of a mixture of equity and debt and represents a balance sheet-friendly form of capital procurement.
  • The abbreviation MICE stands for “meetings, incentives, conventions, and events” and describes different aspects of business tourism. The MICE industry includes trade fairs, congresses, and conference centers, among other things.
  • The English term MLOS stands for “minimum length of stay” and is an operational control function that ensures that the guest making the booking does not stay for less than the specified length of stay, e.g., 4 days.
  • The abbreviation MNE stands for “multinational enterprises,” i.e., international companies. Unlike companies that operate nationally, MNEs engage in cross-border business activities, with assets and employees in more than one country.
  • The Market Penetration Index (MPI) is a key figure used to calculate the market penetration of a hotel and serves as a benchmark value. It compares the occupancy rate of a defined set of competitors (CompSet) with the occupancy rate of the hotel itself. The MPI indicates the occupancy(...)
  • The abbreviation MTD (= Month to Date) refers to the period from the beginning of the month to the current time.
  • A mystery check or also called mystery guesting is a method to evaluate the service quality, standards and various procedures of a hotel business from the perspective of an expert or hotel guest. An anonymous hotel tester is used who visits the establishment without prior notice and evaluates(...)
  • This includes aspects relating to environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery. Governance refers to aspects of good corporate management.
  • These are environmental, social, or governance events or conditions that, if they occur, may have an actual or potential significant negative impact on the value of an investment.
  • The abbreviation NDA stands for “non-disclosure agreement” and is mostly used in the context of hotel projects under development. It is also referred to as a confidentiality agreement.
  • The net initial yield in the hotel industry allows investors to analyze the profitability of a hotel property and compare different investment opportunities. It is, in simplified terms, the ratio of net rental income to the total purchase price of the property.
  • Net floor area (NFA) is the sum of all usable space in a building and is a component of the area that can be used for commercial purposes.
  • Net operating income (NOI) in the hotel industry is a significant financial indicator for measuring the profitability and performance of a hotel. It represents the net operating income and is calculated by deducting operating costs from the hotel's gross revenues.
  • The abbreviation OCC stands for “occupancy” and describes a business indicator that assesses the occupancy rate of a hotel. To calculate the occupancy rate of a business, the number of available rooms is divided by the number of rooms actually booked.
  • The Guidelines for Multinational Enterprises, established by the Organisation for Economic Co-operation and Development (OECD), provide a framework for action by international companies seeking to ensure responsible corporate governance.
  • Regulation (EU) 2019/2088 of the European Parliament and of the Council of 29 November 2019 on sustainability-related disclosure requirements in the financial services sector.
  • ODD (= Online Distribution Data), the database from the provider Pegasus for online distribution, bundles the prices incl. availabilities from the majority of hotel CRS (= Central Reservation Systems), through which e.g. OTA or IDS pull their hotel content.
  • In an OpCo structure, the OpCo is usually the owner of a hotel business, but not the owner of the property.
  • The term “operating expenses” refers to the costs of running a hotel, but not to ownership expenses.
  • OpEx (=Operational Expenditures), are ongoing operating costs or expenses that serve the daily operational business in the hotel. Costs here are, for example, salaries, insurance, administrative costs, energy and water consumption, etc.
  • The risk class “opportunistic” in real estate valuation refers to an investment with a very high risk due to its peripheral location and building structures in need of renovation. However, if the renovation, development, or repositioning is successful, opportunistic real estate promises high(...)
  • The abbreviation OS&E stands for “Operating Supplies and Equipment” and describes all items in a hotel that are considered consumables (e.g., towels, sheets, hair dryers, etc.).
  • The abbreviation OTA stands for “online travel agency.” OTAs are digital platforms that enable guests to book travel online with a wide variety of providers. Well-known examples include Booking.com, Expedia, and the HRS Group.
  • The abbreviation OTB refers to a hotel's booking status within the PMS. It defines the hotel's “on the books” figures and thus all definitive bookings within the system. These are used to analyze previous booking history and to create forecasts.
  • "Outsourcing" is a corporate strategy in which certain services or tasks are outsourced by a company to external service providers rather than being performed by the company itself. This subsequently reduces certain costs in various areas.
  • Overbooking is the sale of rooms in excess of the available room capacity. Here, hoteliers try to generate an occupancy as full as possible due to cancellations or no-shows.
  • An owner-operator vehicle is a business structure in which the owner of a property is also its operator. In the hotel industry, this means that a hotel investor not only owns the property but also manages the operational business themselves, rather than outsourcing it to an external hotel(...)
  • A lease is an agreement between an owner and an operator whereby the operator pays a monthly rent to the owner for the use of the property including FF&E (= facilities). The operator has full responsibility for operations while the owner retains certain control rights. Leases are considered a(...)
  • The term “pax” is used in the hotel industry to refer to the number of people, e.g., 2 people = 2 pax.
  • Payroll is an umbrella term for the monthly payroll. This is the source of all payments made to employees in a company.
  • In the hotel industry, the term “performance” refers to the overall performance of a hotel or hotel chain in terms of various operational and economic indicators. These include, among other things, revenue (income from guest accommodation, restaurants, events, and other services offered),(...)
  • The hotel pick-up refers to the daily recording of the current booking status compared to the previous day for the current year. It provides an overview of future booking trends and helps identify booking patterns and optimization opportunities. Together with RevPAR, occupancy and ADR, the(...)
  • The term “pipeline” refers to all future hotel projects at the location in question, regardless of their opening date, location, etc. The pipeline is a relevant factor in competitive analysis and the development of new hotel projects in a destination.
  • P&L, also known as Profit & Loss Statement, corresponds to the German P&L and is used to determine the financial performance or profitability of the company. A P&L is often prepared on an annual basis and provides an important basis for further analysis and corporate decisions. The most(...)
  • The abbreviation PMS stands for “property management system.” PMS is a software platform that enables the management of reservations, payment processing, etc. The aim is to bundle data from all areas of the hotel and use it to provide a digital, structured control and decision-making function.
  • POM (= Production and Operations Management) is a central component of operational and corporate management. In the hotel industry, it is aboperout the operational design and management of a hotel business.
  • The POR (Profitability-Operational Ratio) per occupied room is used as a measure to assess the profitability of a hotel in terms of the number of occupied rooms.
  • In the hotel industry, the term portfolio refers to all hotels belonging to a hotel group, chain, or operator. It encompasses various categories of hotels, which may differ in terms of location, brand, star rating, target group, or concept. A hotel portfolio can include owned hotels,(...)
  • Pre-opening refers to all activities that take place before the hotel opens but after the property has been completed. These include, for example, equipping the kitchen, setting up marketing activities, project support and monitoring, etc.
  • PAIS or PAI indicators denote the priority adverse impacts of investment decisions on sustainability factors, including environmental, social and labor concerns, human rights issues, and corruption and bribery practices.
  • Private equity refers to off-exchange equity capital invested by investment companies or funds in unlisted companies. These investments are usually made with the aim of increasing the value of the company through strategic measures and later selling it at a profit, for example through a sale(...)
  • A profit center is a delimited area within the hotel for which a separate profit is determined for a specific period.
  • The rack rate is the official price that a hotel product advertises for a room, without taking into account special offers or discounts.
  • The term ‘renewable energy source’ refers to energy sources that are not based on fossil fuels and are derived from renewable sources. These include, in particular, wind, solar (solar thermal and photovoltaic), geothermal energy, ambient energy, tidal, wave and other marine energy,(...)
  • A Replacement Reserve refers to the amount "set aside" for future maintenance and replacement of worn building components or equipment in a commercial property. This amount is used as a reserve to ensure that sufficient funds are available to make the necessary repairs and replacements.
  • In the hotel industry, reporting refers to the creation and analysis of reports based on data and key performance indicators. The purpose of reporting is to provide hotels with a basis for decision-making in order to optimize their operations and increase profitability. Modern reporting tools(...)
  • In finance and real estate, return refers to the income generated by an investment in relation to the capital invested. It is usually expressed as a percentage and serves as a key indicator for assessing the profitability of an investment. A high return indicates a profitable investment,(...)
  • The abbreviation RevPAR stands for “revenue per available room” and describes a business indicator used to assess the revenue per available room of a business. RevPAR is calculated by multiplying the ADR by the OCC.
  • The RevPAR index (= Revenue per Available Room) serves as an indicator of the hotel's own performance. This key figure expresses the revenue per available room in comparison to the competitors existing on the market. It is important to note that the RevPAR index is influenced not only by room(...)
  • The Revenue Generation Index (RGI) is a key figure used to calculate a hotel's revenue-related market share and serves as a benchmark value. It compares the RevPAR achieved by a defined set of competitors (CompSet) with the RevPAR achieved by the hotel itself. Calculation of the RGI:RGI =(...)
  • RICS a leading global professional organization in real estate, construction and infrastructure. As a member of the Royal Institution of Chartered Surveyors (MRICS), compliance with RICS valuation and valuation standards is mandatory for professionals. Through these standards, international(...)
  • There are various investment styles in the real estate industry that can be applied to properties. The risk classes assigned to a property provide information about the relationship between risk and expected returns. A distinction is made between core, core plus, value-added, and(...)
  • Repair & Maintenance activities are summarized under this term.
  • The abbreviation RN stands for “room night” and refers to a hotel room occupied by guests for one night.
  • The abbreviation ROI stands for “return on investment” and is a business indicator that shows the ratio between invested capital and profit. It is often used as a measure of the profitability of a property.
  • A roll-out-strategy in the hotel industry refers to the targeted introduction of new processes, technologies or concepts in various hotels or hotel chains. This strategic approach enables efficient and coordinated implementation of changes with the aim of optimizing operations.
  • The term “(chain) scale” refers to scaling segments for the hotel industry, which can be used to categorize both hotel chains and independent hotels according to their average room rates. Against this backdrop, a distinction is made between the following categories: luxury, upper upscale,(...)
  • The Scope 1, 2 and 3 categories are used to delimit and classify greenhouse gas emissions, specifically CO2 emissions. Scope 1 includes direct CO2 emissions from sources controlled by the issuing company, such as emissions from combustion processes. In contrast, Scope 2 emissions refer to(...)
  • The goal of SEO (= Search Engine Optimization) is to place the hotel website in the top positions of the search results in search engines like Google. For this purpose, various measures must be taken to optimize the website so that it complies with the algorithms of the search engines.(...)
  • A serviced apartment is a furnished accommodation designed for short- or long-term stays and offering hotel-like services. These apartments combine the advantages of a private apartment with the comfort of a hotel. Typical features of a serviced apartment include a fully equipped kitchen or(...)
  • Source codes are linked to an accompanying booking to determine from which source this booking originates. Useful source codes are for example: private, company, group, seminar, walk-in, etc. The purpose of linking source codes to a reservation in the hotel industry is to create statistical(...)
  • The standard land value describes the average property value within a zone. It is determined by purchase prices, taking into account the location and special features of the site.
  • STLY (= Same Time Last Year) means that key figures or data at a specific point in time in the current year are compared with those at the same point in time in the previous year. This method helps to analyze developments and trends compared to the previous year.
  • Founded in 1985, STR provides key market insights for hospitality companies. Some of their services are: Data benchmarking, various analytics and reports; CompSet analysis, etc.
  • Stranded assets are assets that become worthless or unexpectedly lose value. Devaluation can be caused by a variety of factors, including regulatory, economic or market changes, technological substitution, price and demand, supply-side factors or cost structures. To limit global warming, much(...)
  • Sustainable investment refers to an investment strategy that takes into account not only financial indicators but also environmental, social, and ethical criteria (ESG criteria: environmental, social, governance). The aim is to make economically successful long-term investments that also make(...)
  • A SWOT analysis examines the strengths and weaknesses (= internal factors) of a company or hotel, as well as the opportunities and threats (= external factors). The SWOT analysis is a systematic method for gathering information that can help in the strategic planning of a company. By looking(...)
  • TGA refers to the technical building equipment. The technical building equipment includes all technical facilities of a building that contribute to the functional use of the property.
  • The "top line" refers to a company's total revenue or sales before expenses and costs are deducted.
  • The transaction volume in the hotel industry refers to the total value of all real estate transactions that take place in the hotel sector within a given period. It comprises the financial value of all purchase and sale transactions involving hotels or hotel-related real estate.
  • Transient Guests are hotel guests without a pre-negotiated room rate. They do not belong to any particular company. They can be sold the BAR (=Best Available Rate).
  • The CO2 efficiency of a portfolio, determined by measuring the amount of CO2 equivalents per company turnover (in million euros) invested in (tons of CO2/million euros).
  • The abbreviation TRevPAR stands for “total revenue per available room” and describes a business indicator used to assess the total revenue per available room of a business. The number of available rooms is divided by the total revenue.
  • The term TSA stands for “Technical Service Agreement” and refers to accompanying project consulting or support for developers/architects “as representatives” from planning and design to opening. This service can be used by both builders and operators.
  • The ten principles of the United Nations Global Compact represent an initiative launched by the United Nations to promote change processes in the areas of human rights, labor standards, the environment, and corruption prevention. These principles are closely linked to the Sustainable(...)
  • Upselling is used, among other things, to offer guests a higher-value product than they previously booked. Through targeted arguments and sales skills, the advantages of direct booking of selected products or services are highlighted and booking incentives are created to increase revenue from(...)
  • The Uniform System of Accounts for the Lodging Industry, or USALI for short, describes a standardized chart of accounts for the hotel and hospitality industry. USALI is based on the direct costing principle: it distinguishes between directly attributable and non-attributable costs (cost(...)
  • The risk class “value added” in real estate valuation refers to an investment with a relatively high expected return and a high risk of default. These properties generally require renovation and reorientation efforts due to their location in B locations and their average building quality.(...)
  • Investment approach that considers ESG opportunities and risks and uses proxy engagement and voting to generate sustainable, long-term financial returns.
  • Venture capital (VC) is a form of equity capital that is invested in young, fast-growing companies that have high growth potential but also carry increased risk. These companies are often start-ups that are developing innovative business models or technologies. Venture capital plays a crucial(...)
  • VOICE are bookings made by phone or directly at the front office.
  • "Walk In" in the hotel industry refers to guests who come to the hotel without a prior reservation and wish to occupy a room at short notice. This type of guest is usually more common in city hotels.
  • A white label operator is a company that offers hotel services in the name of another company, using the branding of the partner. The advantage is that an individually managed operation gains access to central reservation, sales and customer loyalty programs of an international hotel chain,(...)
  • The term “yield” is frequently used in asset management and refers to the hotel's revenue. Yield management aims to maximize revenue based on supply and demand forecasts. Yield management originated in the aviation industry. In the hotel industry, the term “revenue management” is more(...)
  • The abbreviation YTD (= Year to Date) refers to the period from the beginning of the current year to the present date.

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mrp hotels Vienna
Getreidemarkt 14/29
1010 Vienna, Austria
vienna@mrp-hotels.com
+43 (0) 1 8906661

mrp hotels Munich
Streitfeldstraße 25b
81673 Munich, Germany
munich@mrp-hotels.com
+49 (0)30 343 47 40

mrp hotels Berlin
Savignyplatz 9/10
10623 Berlin, Germany
berlin@mrp-hotels.com
+49 (0)30 343 47 40

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Yuki Pape, MRP Hotels

Yuki Pape

Yuki Pape ist Junior Consultant im Wiener Team von mrp hotels. Sie verfügt über internationale Erfahrung in der Luxushotellerie, die sie während und nach ihrem Studium am Glion Institute of Higher Education sammelte. Berufliche Stationen führten sie unter anderem nach Tokio und Dubai; zuletzt absolvierte sie ein Management Training im Bereich Business Development im Waldorf Astoria Berlin.

Bei mrp hotels unterstützt sie in den Bereichen Asset Management sowie Strategy & Advisory – mit einem besonderen Blick für operative und strategische Optimierungspotenziale im Hotelbetrieb.

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