Hi, I am studying front office services, but I think there is something wrong with how they taught us how to get the total revenue. In your example there are total of 50 rooms in the hotel and 40 are occupied, 20 rooms cost $105 and the other 20 is $115, so basically, you multiple 20*105 and 20*115, then you get the result which is $4400. In our class they taught us to add the total occupied rooms which is 20+20=40 and add the total cost which is 105+115=220, then they say to multiple the result, so 40*220=8,800. The results are different. Is this computation also correct? Please enlighten me. Thanks in advance.
20 room, each room price $105 20 room, each room price $115 if you combine together like this (20room + 20room) ($105 + $115) 40 room, each room price $220 then the result is higher and also wrong the answer. because you times each room for amount $220 instead of separate $105 & $115.
When buying a hotel... I really need to know the Cap Rate. Only then can I assess what kind of return I'll get on my investment. If I know the asking price, and I know the NOI (Net Operating Income)... that's all I really need to know. RevPar gives me no indication of what expenses are like.
Paul, thanks for pointing out other metrics that investors may find helpful in gauging the strength of their next hotel investment. And yes, a cap rate will give you quick indication of net operating income compared to the purchase price, but experienced hotel owners, operators, and sponsors don't always assume that the property's operating expenses will remain the same after new ownership. Experienced and larger operators can often operate the property more efficiently than others, and therefore cap rate is only a small part of the picture.
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Great presentation! You saved me from my assessment. Best of luck!
You made studying for my final exam so much easier! Thank you!
You really helped my study!! Thank you from Tokyo🇯🇵
Wonderful. This was well put together. Thanks for the visuals
great one.. can understand perfectly
Great presentation you made my assignment task easier. ❤️
wow ang galing mag explain. direct to the point nagets ko agad
Gonna be able to write my paper now!
Great content thanks
NICE VIDEO
greatly thought thnkz
Hi what’s the difference between ARR and ADR pls?? Thanks
ADR = Room Revenue / Room Sold
ARR = Room Revenue / Room Occupied
Room Sold = Room Occupied - House Use - Complimentary
Thank you!
Hi, I am studying front office services, but I think there is something wrong with how they taught us how to get the total revenue.
In your example there are total of 50 rooms in the hotel and 40 are occupied, 20 rooms cost $105 and the other 20 is $115, so basically, you multiple 20*105 and 20*115, then you get the result which is $4400.
In our class they taught us to add the total occupied rooms which is 20+20=40 and add the total cost which is 105+115=220, then they say to multiple the result, so 40*220=8,800. The results are different. Is this computation also correct? Please enlighten me. Thanks in advance.
20 room, each room price $105
20 room, each room price $115
if you combine together like this
(20room + 20room) ($105 + $115)
40 room, each room price $220 then the result is higher and also wrong the answer.
because you times each room for amount $220 instead of separate $105 & $115.
👍
When buying a hotel... I really need to know the Cap Rate. Only then can I assess what kind of return I'll get on my investment.
If I know the asking price, and I know the NOI (Net Operating Income)... that's all I really need to know.
RevPar gives me no indication of what expenses are like.
Paul, thanks for pointing out other metrics that investors may find helpful in gauging the strength of their next hotel investment. And yes, a cap rate will give you quick indication of net operating income compared to the purchase price, but experienced hotel owners, operators, and sponsors don't always assume that the property's operating expenses will remain the same after new ownership. Experienced and larger operators can often operate the property more efficiently than others, and therefore cap rate is only a small part of the picture.
Wht is ADR
I m not understanding how I can describe in front of interviewer if they are asking from me
is he shy ? why don't look in the camera haha
HI
I m not understanding how I can describe in front of interviewer if they are asking from me