Going to kick of #HotelTwit with a running glossary of terms. I’ll keep adding as we go, and keep pinned on my profile. If you have requests for add’l terms, just drop ‘em in the thread!
Occ:
Occupancy. The percent of room s occupied in any stated time period. Occupied Room Nights ➗ Available Room Nights
Occupancy. The percent of room s occupied in any stated time period. Occupied Room Nights ➗ Available Room Nights
ADR:
Average Daily Rate (sometimes, just Rate). The average rate charged for occupied room nights in any stated time period. Gross Rooms Revenue ➗ Occupied Room Nights
Average Daily Rate (sometimes, just Rate). The average rate charged for occupied room nights in any stated time period. Gross Rooms Revenue ➗ Occupied Room Nights
RevPAR:
Revenue Per Available Room. The total revenue generated by all the guest rooms in the house. Gross Rooms Revenue ➗ Available Room Nights
Revenue Per Available Room. The total revenue generated by all the guest rooms in the house. Gross Rooms Revenue ➗ Available Room Nights
Available Room Nights:
number of room nights available to be rented over a period of time. Ex: a 200 key hotel has 200 available rooms per night, and 73,000 per year
number of room nights available to be rented over a period of time. Ex: a 200 key hotel has 200 available rooms per night, and 73,000 per year
Occupied Room Night:
One room occupied for one night. A 200 room hotel that is 75% occupied on a given night will have had 150 Occupied Room Nights. 75% for the year would be 54,750 Occupied Room Nights
One room occupied for one night. A 200 room hotel that is 75% occupied on a given night will have had 150 Occupied Room Nights. 75% for the year would be 54,750 Occupied Room Nights
GRR:
Gross Rooms Revenue. Total revenue generated from the rental of rooms at the hotel
Gross Rooms Revenue. Total revenue generated from the rental of rooms at the hotel
GOR:
Gross Operating Revenue. Total revenue generated from the operations of the hotel. Includes things like F&B, parking, concessions, etc…
Gross Operating Revenue. Total revenue generated from the operations of the hotel. Includes things like F&B, parking, concessions, etc…
GOP:
Gross Operating Profit. Gross Rooms Revenue less Departmental Expenses (e.g., Rooms, F&B) and Undistributed Expenses (e.g., Admin & General, Sales & Marketing, Utilities)
Gross Operating Profit. Gross Rooms Revenue less Departmental Expenses (e.g., Rooms, F&B) and Undistributed Expenses (e.g., Admin & General, Sales & Marketing, Utilities)
NOI:
Net Operating Income. In short, EBITDA less Replacement Reserve
Net Operating Income. In short, EBITDA less Replacement Reserve
Replacement Reserve:
An amount set aside annually (usually 4% of GOR) to fund replacements of FF&E and renovation work. Amount generally driven by brand and lender
An amount set aside annually (usually 4% of GOR) to fund replacements of FF&E and renovation work. Amount generally driven by brand and lender
FF&E:
Furniture, Fixtures, and Equipment. Think desks, arm chairs, bed frames, etc.
Furniture, Fixtures, and Equipment. Think desks, arm chairs, bed frames, etc.
OS&E:
Operating Supplies & Equipment. Think cleaning supplies, guest supplies (e.g., toilet paper), and even some longer-term consumables (e.g., TVs, mattresses) as well as operating equipment
Operating Supplies & Equipment. Think cleaning supplies, guest supplies (e.g., toilet paper), and even some longer-term consumables (e.g., TVs, mattresses) as well as operating equipment
POR:
Per Occupied Room. A ratio whereby a revenue or expense line item is divided by the Occupied Room Nights for its period. Typically done to interrogate expenses seen as variable (changing with Occ)
Per Occupied Room. A ratio whereby a revenue or expense line item is divided by the Occupied Room Nights for its period. Typically done to interrogate expenses seen as variable (changing with Occ)
PAR:
Per Available Room. A ratio whereby a revenue or expense line item is divided by the number of rooms in the hotel. Typically done to interrogate expenses seen as fixed (changing based on the size of the hotel, not Occ)
Per Available Room. A ratio whereby a revenue or expense line item is divided by the number of rooms in the hotel. Typically done to interrogate expenses seen as fixed (changing based on the size of the hotel, not Occ)
PSF:
Per Square Foot. A ratio whereby a revenue or expense line item is divided by the number of square feet it is affected by. Typically done for things like event revenue from meeting space, to help normalize and compare across hotels
Per Square Foot. A ratio whereby a revenue or expense line item is divided by the number of square feet it is affected by. Typically done for things like event revenue from meeting space, to help normalize and compare across hotels
STR:
STR, a CoStar owned company. Used to stand for Smith Travel Research. STR compiles, consolidates, anonymizes, and reports on hotel performance data. Couldn’t do my job (easily) w/o ‘em.
CC @STR_Data
STR, a CoStar owned company. Used to stand for Smith Travel Research. STR compiles, consolidates, anonymizes, and reports on hotel performance data. Couldn’t do my job (easily) w/o ‘em.
CC @STR_Data
Brand / Flag:
The flag on the Hotel. Think: Sheraton, Waldorf-Astoria, Hyatt Place
The flag on the Hotel. Think: Sheraton, Waldorf-Astoria, Hyatt Place
Brand Family:
The parent company of the Brand. Think Marriott, Hilton, Hyatt, Choice, Wyndham, IHG
The parent company of the Brand. Think Marriott, Hilton, Hyatt, Choice, Wyndham, IHG
Chain Scale: Classification of brand based on its ADR. STR sets / maintains.
They are:
Luxury (e.g., Four Seasons), Upper Upscale (Westin), Upscale (Hilton Garden Inn), Upper Midscale (Fairfield Inn), Midscale (Ramada), Economy (Motel 6), and Independent (not flagged)
They are:
Luxury (e.g., Four Seasons), Upper Upscale (Westin), Upscale (Hilton Garden Inn), Upper Midscale (Fairfield Inn), Midscale (Ramada), Economy (Motel 6), and Independent (not flagged)
Comp Set:
The local direct competitors to the hotel being analyzed. If the Comp Set meets STR’s definitions to enable anonymization of data, you can buy a Trend Report showing long term historical performance & set up an ESTAR report for monthly ongoing comparison
The local direct competitors to the hotel being analyzed. If the Comp Set meets STR’s definitions to enable anonymization of data, you can buy a Trend Report showing long term historical performance & set up an ESTAR report for monthly ongoing comparison
Segmentation:
Classification of rooms revenue based on the type of reservation. E.g., a corporate meeting of 50 people for 2 nights would be 100 nights in the Corporate Group segment. No clear industry-wide definition of each segment, but general consistency
Classification of rooms revenue based on the type of reservation. E.g., a corporate meeting of 50 people for 2 nights would be 100 nights in the Corporate Group segment. No clear industry-wide definition of each segment, but general consistency
Channel:
Classification of rooms revenue based on the source of reservation. E.g., a reservation booked direct online is classified in the Web Internal Channel. No clear industry-wide definition of each channel, but general consistency
Classification of rooms revenue based on the source of reservation. E.g., a reservation booked direct online is classified in the Web Internal Channel. No clear industry-wide definition of each channel, but general consistency
FTE:
Full Time Equivalent. Essentially, 2,080 hours per year of labor. Helps to calculate how many full and part time employees you need in order to staff a certain number of shifts
Full Time Equivalent. Essentially, 2,080 hours per year of labor. Helps to calculate how many full and part time employees you need in order to staff a certain number of shifts
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