Hotel News Now’s compendium of important hotel industry terms has been updated with new entries, including bleisure, global distribution system, direct booking and several more. Editor’s note: This article has been updated to include several new entries, hotel room investment usa bleisure, global distribution system, direct booking, year over year and several more.
If you have any suggestions for additional terms or have questions, please e-mail the editors. AAA – The highest rating given to bonds by bond-rating agencies. AAA bonds are thought to have almost no default risk. Poor’s are the most widely used rating agencies. A measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold. An ADR Index of 100 equals fair share of ADR, compared to the aggregated group of hotels.
An ADR Index greater than 100 represents more than a fair share of the aggregated group’s ADR performance. 50, the subject hotel’s index would total 100. 60, its index would be 120, indicating the hotel has captured more than its fair share. A payment structure seen with online travel agencies that requires a hotel to pay the online travel agency a commission for a guest’s booking.
Accommodations other than hotels such as: vacation home rentals, cruise ships, home-sharing rentals, timeshares, hostels and serviced apartments. A system in which potential buyers place competitive bids on assets and services. The asset or service in question will sell to the party that places the highest bid. In most cases, sellers will pay a listing fee to the auctioneer, regardless of whether the item sells for the desired price. The Internet has increased the amount of exposure auctions have, and bidders no longer have to be present to participate. Hotel industry example: The Watergate Hotel in Washington, D. When hotels in our census database do not report data to STR, an estimate of actual average daily rate is derived using published rates.
A legal proceeding involving a person or business that’s unable to repay outstanding debts. All of the debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that can’t be paid while offering creditors a chance to obtain some measure of repayment based on what assets are available. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and providing creditors with a measure of debt repayment. Hotel industry example: The hotel chain Extended Stay Hotels filed for Chapter 11 bankruptcy protection, citing massive debt stemming from its 2007 acquisition by Lightstone Group and a sharp drop in business travel because of the recession. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.