Glossary Of Terms

Manhattan Hotels For Sale

ADR - refers to the average daily room rate. This figure is a hotel revenue measurement and is calculated by dividing the gross room revenue by the number of occupied room nights sold during a specified time.

RevPAR - refers to the revenue generating effectiveness of a hotel property. It is calculated by multiplying the average daily room rate (ADR) by the occupancy rate.

Cash Available for Distribution - is calculated by deducting a provision for capital replacement from cash flows from total operations. The Trust designates a portion of its capital expenditure budget for capital replacement to be funded from cash flows from operating activities. This provision is calculated as 4.0% of rooms and food and beverage revenue.

Full Service Property - a full service hotel provides additional services that add revenue. Examples of services include restaurants, banquets and conference facilities, business centres, etc.

Gross Book Value - the book value of Domain Hotel Properties assets plus the amount of accumulated depreciation and amortization.

Hotel Businesses - the various businesses carried on at the hotel properties. This consists of all the assets involved in the operations of these properties (i.e. licenses, contracts, inventory and goodwill).

Hotel Management Agreements - hotel management agreements between each of the holding companies and the General Managers of the hotels. This agreement provides that the General Manager is retained by the holding companies.

Hotel Portfolio - includes the hotel properties and the associated businesses.

Hotel Properties - the real property, buildings, attached equipment and leasehold interests in Domain Hotel Properties properties. This excludes the hotel businesses as described under "The Hotel Portfolio - Property Descriptions".

Limited Service Property - a limited service hotel is primarily considered to be only the room. However, it may also include limited dining facilities such as continental breakfast services.

Occupancy Rate (%) - the occupancy rate of a hotel measures the number of hotel nights sold as a percentage of the number of room nights available. It is calculated by dividing the total number of rooms sold by the number of rooms available.

 

More Terms used in the Hotel Industry
Central Costs Central Costs represent costs for corporate and regional functions, such as Executive Management, Finance, Business Development, Legal, Communication & Investor Relations, Technical Development, Human Resources, Operations, IT, Brand Management & Development, and Purchasing. These costs are incurred to the benefit of all hotels within the TOP Hotel Brokers of NYC Hotels, i.e. leased, managed and franchised.
Development brand Brand that still is under development, and that currently does not have many hotels in operation.
Debt/equity ratio Net debt divided by total equity.
Earnings per share Profit for the period, before allocation to minority interest divided by the weighted average number of shares outstanding.
Equity/assets ratio Total equity divided by total assets
FF&E Furniture, Fittings and Equipment.
Free cash flow Cash flow from operating activities, investments, financial items and tax and the effect of restructuring measures on cash flow.
Free cash flow per share Free cash flow divided by the weighted average number of shares outstanding.
General Manager This title refers to the position as hotel manager.
Return on shareholders' equity Profit for the period, attributable to equity holders of the parent as a percentage of average shareholders’ equity, excluding minority interests.
Yield Dividend as a percentage of the market price.

OPERATIONAL KEY FIGURES

AHR Average-House Rate – Rooms revenue in relation with the number of rooms sold.
Capital employed Total assets less interest-bearing financial assets and cash and cash equivalents and non-interest-bearing operating liabilities, including pension liabilities, and excluding tax assets and tax liabilities.
EBIT Operating profit before net financial items and tax.
EBITDA Operating profit before depreciation and amortisation and gain on sale of shares and fixed assets and net financial items and tax (for 2006 excluding IPO related costs).
EBITDA margin EBITDA as a percentage of Revenue (for 2006 excluding IPO related costs).
EBITDAR Operating profit before rental expense and share of income in associates and before depreciation and amortisation and gain on sale of shares and of fixed assets and net financial items and tax.
Like-for-like hotels Comparable hotels in operation during the same previous period compared.
Occupancy (%) Number of rooms sold in relation to the numbers of rooms available for sale.
Operating cash flow EBITDA excluding share of income in associated companies, cash flow effect of restructuring measures and net investments and including changes in working capital and dividend from associated companies.
Operating cash flow per share Operating cash flow divided by average number of shares outstanding.
Return on capital employed (ROA - Return on Assets)
Operating profit, excluding restructuring costs and impairment losses divided by average capital employed.
Revenue All related business revenue (including Rooms revenue, Food & Beverage revenue, Other hotel revenue and Fee revenue).
RevPAR Revenue Per Available Room – Rooms revenue in relation with the rooms available.
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