Current Ratio

Current ratio applies to hotel liquidity. It is a metric that is often considered by investors and analysts to determine a hotel’s ability to maximize current assets on its balance sheet. A hotel’s ability to maximize these assets plays a huge part in its ability to...

Demand Calendar

A Demand Calendar is a hotel revenue management tool that shows multiple demand indicators. It helps managers more accurately evaluate market situations in order to make decisions on prices, promotions, and more. Common metrics used to create an accurate Demand...

Displacement Calculations

Displacement Calculations are used in hotel revenue management cost-benefit analysis. They are a calculation of the value of a group bookings versus the value of transient (or walk-in) bookings. Making these calculations requires day-to-day analysis of how a hotel’s...

EBITDA

EBITDA is an acronym that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a good indicator of a hotel’s financial performance and allows revenue managers to compare hotel profitability against competitors or sister properties. What is...

EBITDAR

EBITDAR stands for Earnings Before Interest, Taxes, Depreciation and Amortization, and Restructuring or Rent Costs. Like EBITDA, it is a key metric for evaluating a hotel’s profitability and performance. However, EBITDAR is more widely used for hotels or properties...