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29 Cards in this Set
- Front
- Back
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the percentage rate of return achieved on the money invested in a hotel property |
return on investment (ROI) |
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how to calculate ROI |
hotel income after taxes -------------------------------------- total hotel investment |
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money remaining after expenses are paid |
profit |
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reduction in value of an asset as it wears out "tax write-off" |
depreciation |
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increase in the value of an asset not taxed unless asset is sold |
appreciation |
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a hotel investor who manages/ operates the hotel |
owner/operator |
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the individual at a hotel who is responsible for making final decisions regarding operating policies and procedures leader of the hotel's management team |
general manager (GM) |
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an organization that operates a hotel for a fee "contract company" |
management company |
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when occupancy rates and/or ADRs are significantly below historical levels |
depressed market |
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when a property is taken back be seller or lender usually because the buyer didn't pay |
repossession |
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management companies that operate hotels for owners using the management company's trade name as the hotel brand |
first tier |
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management companies that operate hotels for owners and do not use the management company name as part of the hotel name |
second tier |
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legally bound to compensate for injury or loss |
liable |
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agreement between owners and management company stating that management company operates the hotel |
management contract |
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both parties in a contract agree to end the contract early as a result of one party paying the other the agreed-upon financial compensation |
buy-out |
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an arrangement whereby one party allows another party to use its logo, brand name, systems, and resources in exchange for a fee |
franchise |
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an organization that manages a brand and sells the right to use the brand name |
franchisor |
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buyer, under specific terms/conditions, buys the right to use a brand name for a fixed period of time and agreed-upon price |
franchisee |
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name of a specific hotel group |
brand |
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hotels operated by a group of franchisees who have all franchised the same hotel brand name |
chain |
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changing of a hotel from one brand to another |
conversion |
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to describe a characteristic of all hotels within a single brand |
system-wide |
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contract between hotel owner and brand manager that describes the duties and responsibilities of each in the franchise relationship |
franchise agreement |
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government agency that enforces federal antitrust and consumer protection laws |
federal trade commission (FTC) |
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franchise disclosure document prepared by a franchisor and registered and filed with the state governmental agency responsible for administering franchise relationships |
franchise offering circular (FOC) |
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a hotel service or feature that must be offered by any property entering or remaining in a specific hotel brand |
brand standard |
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an association of hotel owners who, through an exchange of ideas, seek to promote professionalism and excellence in hotel ownership |
Asian American Hotel Owners Association (AAHOA) |
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percentage of a total market (dollars spent) captured by a property |
market share |
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representative of a franchise brand who interacts directly with a hotel franchisee different brands may title this important position somewhat differently, but each will have a comparable position |
franchise services director (FSD) |
