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Hospitality Financial Leadership – What Are CAP Rates and How to Use Them

Hotel Financial Coach Blog

A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about.

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Improve Hotel Bottom Line with Hotel Profitability Analysis

eZee Absolute

Hotel profitability analysis is a multifaceted approach that considers revenue generation, cost management, and operational efficiency. These metrics help in distributing the income, expenses as well as profit your property is making for all its inventory. GOPPAR GOPPAR stands for Gross Operating Profit per Available Room.

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IDeaS report reveals investors high on revenue management tech

Hotel Business

High investor satisfaction with revenue management software: Hoteliers are largely happy with their revenue management software investments, with 83% of surveyed describing the ROI for revenue management technology as “high” or “very high.”

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DiamondRock acquires Chico Hot Springs Resort

Hotel Business

Chico was acquired from an individual owner-operator and is an independent resort, completely unencumbered by brand and management agreements. capitalization rate on 2022 net operating income (NOI). The purchase price for the resort and adjacent ranch is $33 million.

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What are CAP rates and how to use them

eHotelier

Remember the golden rule, the lower the cap rate the higher the purchase price paid and at the same time the lower the expected returns on that investment in the future because the price paid was higher.