The owner's hotel investment glossary.

Rate and volume metrics · مؤشرات السعر والإشغال

ADR — متوسط السعر اليومي

The average room rate achieved per sold room night. ADR × occupancy gives RevPAR, so every pricing decision lands here first. Push ADR with segmentation and rate gates, not with blanket rises that damage occupancy. Used in the Investment Studio and tracked in AOIP Lite.

Occupancy — نسبة الإشغال

Sold room nights divided by available room nights. Occupancy alone says nothing about profit — a hotel can be full at rates below its cost to serve. Always read it next to ADR and GOPPAR.

RevPAR — الإيراد لكل غرفة متاحة

ADR × occupancy, or rooms revenue ÷ available room nights. The standard top-line metric because it mixes rate and volume into one number. It still says nothing about costs — that is what GOPPAR adds. Tracked in AOIP Lite.

TRevPAR — إجمالي الإيراد لكل غرفة متاحة

Total revenue — rooms, F&B, spa, parking — divided by available room nights. The fairest way to compare hotels with different ancillary businesses. A hotel with banquet halls can win TRevPAR while losing RevPAR.

Ramp-up — فترة الانطلاق

The years between opening (or renovating) and reaching stabilised occupancy and rate. The model in the Investment Studio applies year-1 and year-2 factors and shows the funding gap the ramp creates.

Profit metrics · مؤشرات الربحية

GOP — الربح التشغيلي الإجمالي

Gross operating profit: revenue minus operating costs, before management fees, fixed charges and reserve. The operator's incentive fee usually hangs off this number — which is why its definition matters in the HMA scorecard.

GOPPAR — الربح التشغيلي لكل غرفة متاحة

GOP ÷ available room nights. The owner's truth serum: it shows what survives the cost base. RevPAR can rise while GOPPAR falls — that is cost discipline failing. Watch both in AOIP Lite.

NOI — صافي الدخل التشغيلي

GOP minus management fees, fixed charges and the FF&E reserve — the owner's income before debt service and tax. Valuation, DSCR and every return metric in the Investment Studio are built on it.

Payroll ratio — نسبة الرواتب من الإيراد

Payroll ÷ revenue. The largest controllable cost in most hotels, typically around 30% of revenue with wide variation by service level. Tracked monthly in AOIP Lite against your target.

Budget variance — انحراف الموازنة

Actual result minus budget, in value or percentage. Persistent negative variance on revenue with positive variance on costs is the classic pattern that precedes a cash crisis. Flagged automatically in AOIP Lite.

FF&E reserve — احتياطي الأثاث والتجهيزات

A share of revenue (commonly a few percent) set aside yearly for furniture, fixtures and equipment replacement. Setting it to zero flatters yield today and forces the owner to fund renovations from equity tomorrow. Modelled in the Investment Studio.

Comp-set indices · مؤشرات المنافسين

MPI — مؤشر اختراق السوق

Your occupancy ÷ comp-set occupancy × 100. Above 100 means you capture more than a fair share of demand. Read with ARI: high MPI with weak ARI often means you are buying occupancy with discounts. In AOIP Lite.

ARI — مؤشر متوسط السعر

Your ADR ÷ comp-set ADR × 100. Shows whether you price above or below the market you compete in. Persistent ARI below 100 with healthy occupancy signals untapped pricing power.

RGI / RevPAR index — مؤشر الإيراد

Your RevPAR ÷ comp-set RevPAR × 100 — also called RevPAR index. The one number that answers "is the operator winning the market?". A falling RGI is usually the first visible sign before NOI disappoints. In AOIP Lite.

Returns and valuation · العوائد والتقييم

Cap rate — معدل رسملة التخارج

Stabilised NOI ÷ property value. Income property is valued the other way: NOI ÷ market cap rate. A one-point cap-rate move can swing value by double-digit percentages — which is why the Investment Studio gives you a cap-rate sensitivity grid.

Yield on cost — العائد على التكلفة

Stabilised NOI ÷ total development cost. Compare it with the exit cap rate: if the yield is not comfortably above the cap, building does not create value. The difference is the development spread.

Development spread — هامش التطوير

Yield on cost minus exit cap rate, in basis points. A common rule of thumb asks for 150–250 bps to pay for construction and leasing risk. You can set your own minimum in the Investment Studio.

IRR — معدل العائد الداخلي

The annual rate at which a project's cash flows — cost in year 0, income, sale — have zero net present value. The single most quoted return metric, and the easiest to flatter with optimistic exits. Read IRR next to NPV and payback in the Investment Studio.

NPV — صافي القيمة الحالية

The value today of all future cash flows discounted at your required return. Positive NPV means the project clears your hurdle with a surplus; negative means your money works harder elsewhere.

Equity multiple — مضاعف حقوق الملكية

Total cash returned to equity ÷ equity invested. Simple and useful, but blind to timing: a 1.8× over 20 years is far weaker than 1.8× over 7. The Investment Studio shows it beside equity IRR for exactly that reason.

Cash-on-cash — العائد النقدي

Annual cash to equity ÷ equity invested, after debt service. The income investor's metric. Stabilised cash-on-cash in the Investment Studio shows what the asset pays while you hold it.

Debt terms · مصطلحات التمويل

DSCR — نسبة تغطية خدمة الدين

NOI ÷ debt service (interest + principal). Below 1.0 the hotel cannot pay its debt from its own income. Lenders commonly underwrite around 1.25× or higher — you can set your own threshold in the Investment Studio.

LTV / loan-to-cost — نسبة التمويل إلى التكلفة

The loan as a share of cost or value. Leverage lifts equity returns when the project earns more than the debt costs — and deepens losses when it does not. The Studio shows both unlevered and levered IRR.

Break-even occupancy — الإشغال التعادلي

The occupancy at which NOI exactly covers debt service. The gap between it and your expected occupancy is your downside safety margin — the number lenders watch hardest. Solved by the Investment Studio on the same model as your base case.

Operator contract terms · مصطلحات عقد المشغل

HMA — عقد إدارة الفندق

The Hotel Management Agreement: fees, term, performance test, exit rights and controls between owner and operator. Its small clauses decide big money. Score yours in the free HMA red-flag scorecard.

Base fee — الأتعاب الأساسية

The operator's fixed fee, usually a percentage of total revenue. Above roughly 3% it deserves scrutiny, especially when stacked with royalty, marketing and loyalty fees. Model its effect in the Investment Studio.

Incentive fee — أتعاب الحوافز

The operator's share of GOP, often without an owner-priority hurdle — meaning it is earned before the owner makes a return. Ask for an owner priority so incentives start after you are paid. Covered in the HMA scorecard.

Key money — مبلغ المفتاح

A payment by the operator or brand to the owner to secure the management mandate. Treat it as prepaid consideration: tie it to term, amortise it over the years, and expect to repay only the unamortised balance if you terminate early — never on operator-default termination. In the HMA scorecard.

Performance test — اختبار الأداء

The clause that lets an owner change an underperforming operator, typically a two-year RevPAR index test against a defined comp set. No performance test means no realistic exit. The HMA scorecard checks how strong yours is.

PIP — خطة تحسين العقار

A Property Improvement Plan: renovation work a brand requires, with deadlines and budgets. Size it honestly — the redevelopment tab of the Investment Studio tests whether the spend pays back.

Every term above is computed the same way inside our free tools: the Investment Studio for returns and debt, AOIP Lite for operating performance, and the HMA scorecard for the operator contract. The formulas are documented on the methodology page.