return on investment
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...
Why Smart Hospitality Companies Are Accelerating CapEx Digital Transformation
Johannes Vocke | August 27, 2024
How modern capital expenditure solutions lead to efficiency, savings and long-term growth By Johannes Vocke, FutureLog Chief Financial Officer Historically, hospitality professionals have viewed procurement as a cost centre. But now, after years of social, economic, and political upheaval, procurement is evolving into a strategic function that helps hospitality organisations realise their broader business goals. Look no further than CapEx- Capital Expenditures, funds used to obtain or maintain assets with a useful lifespan exceeding one year. According to McKinsey research, strategic CapEx management can reduce overall capital spen...
Hospitality Asset Managers Association (HAMA) Opens 2024 Student Case Competition
HAMA | August 12, 2024
More than 40 Undergraduate and Graduate-Level Programs Invited to Participate NEWTON, Mass., Aug. 12, 2024—Officials of the Hospitality Asset Managers Association (“HAMA”) today announced that it has now accepting submissions for the 19th Annual HAMA Student Case Competition. Participating students from more than 40 undergraduate and graduate programs nationwide are given a return on investment scenario to analyze and formulate a recommendation to improve the business. This year, HAMA has partnered with HotStats for benchmarking data and LARC for a market forecast of Boston. These industry leading firms have provided critical rep...
Hospitality Financial Leadership – How Can You Turn $250 Savings into $1,000,000 In Asset Value
David Lund | October 3, 2017
By David Lund That's right, your eyes and the headline are not fooling you. I learned this from a client in a backward kind of way and now I want to share it with you. It is a powerful way to justify and prove a return on investment (ROI) for financial leadership training. I use this story as well to show my clients what they are leaving on table in the way of profits and asset value if they are not using financial leadership in their hotel. I had just finished a half-day hospitality financial leadership workshop for a client, one of a series of six that they had contracted me to do. The General Manager got up and thanked me and ask...
