noi
Hospitality Financial Leadership: What Are CAP Rates and How to Use Them
David Lund | November 4, 2024
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. It also must be said from the get-go that understanding cap rates is not so difficult. “Normally” NOI is calculated using all income less all operating expenses but does not include costs for debt, depreciation, amortization, reserve for capital expense or income taxes. That’s the typical basis for the calculation of the hotel’s value, est...
Independent Hotels Can Beat OTAs Using Real-Time Data
John Smallwood | February 4, 2016
By John Smallwood If you have 60 seconds, I have 300 words that might help at the NOI line. To an independent hotelier, the phrase "Big Data" might be something that causes confusion – or perhaps it's simply met with a shrug. It's fair to say that in terms of hotel revenue generation, Big Data has largely become the domain of the OTAs. By monitoring browsing and purchasing habits across the web, OTAs have been able to build complex profiles that help them package personalized offers and offer deals to meet the specific desires of customers. But a recent article by HeBS Digital suggested that independent hotels can gain a significa...
Use a Lack of Confidence in OTA Sites to Your Advantage
John Smallwood | January 21, 2016
By John Smallwood If you have 60 seconds, I have 300 words that might help at the NOI line. A recent report from the Association of British Travel Agents (ABTA) revealed an increase in complaints about false OTA websites created by fraudulent travel companies. Many customers have lost money to these sites, while others are calling hotels directly to ensure that they are indeed making a reservation at the hotel as intended. This apparent trend of dwindling consumer confidence matches the booming growth of the online travel sector. While customers now have unparalleled choice and freedom to compare a range of deals, they're also faced wit...
Capture a Customer’s Interest When They Call for Rates
John Smallwood | December 7, 2015
By John Smallwood If you have 60 seconds, I have 300 words that might help at the NOI line. As hotels face escalating guest acquisition costs, it's becoming increasingly important to find cost-effective ways to attract fresh leads. For hoteliers, this means developing "smart marketing" tactics and being resourceful in connecting with and converting new customers. When deployed effectively, smart marketing is about targeting customers with specific offers and a personalized approach that appeals to their unique preferences and requirements. Analyzing online data and website browsing behavior of potential guests is one approach, but when ...
It’s Time to Be Crystal-Clear on Pricing
John Smallwood | November 11, 2015
By John Smallwood If you have 60 seconds, I have 300 words that might help at the NOI line. A recent survey by Travelers United revealed that 80% of travelers want mandatory resort fees included in the advertised price. It's hardly surprising. A number of hotels do not include these fees in their room rates, and fail to make them sufficiently obvious in the booking process. This lack of transparency can be damaging when a customer realizes they have to pay extra for their room. At best, it can leave them feeling irritated and confused. At worst? Misled and overcharged. So, how can you ensure that your guests are 100% certain about the r...
Hotels Should Take It Personally
John Smallwood | October 28, 2015
By John Smallwood If you have 60 seconds, I have 300 words that might help at the NOI line. According to a recent study by American Express, 85% of travelers want a personalized travel itinerary. It's a statistic that speaks volumes. And for travel brands, the message is clear: catering to the modern day traveler requires providing tailor-made experiences. And nowhere is this truer than in the hotel industry. Providing a personalized service can begin at check-in. Asking questions about a customer's needs and preferences can help hotels tailor their service and provide rewarding experiences that lead to more satisfied customers. Montage...
