Resort Properties Industry Terminology

The mean room revenue earned per sold room, calculated as Rooms Revenue ÷ Rooms Sold. Used to gauge pricing power and mix, excluding complimentary rooms. Examples: 1) “Raising ADR by $12 without hurting occupancy lifted RevPAR 6%.” 2) “Group mix pressured ADR last quarter because of discounted contracts.” 3) “Package rates complicate ADR—allocate the room component correctly.”

A resort pricing model where accommodation, meals, beverages, activities, and often gratuities are included in a single rate tier (sometimes with premium upsells). Examples: 1) “Shifting to a premium all-inclusive model boosted TRevPAR.” 2) “We need clear inclusions to avoid guest disputes at check‑out.” 3) “Upsell the top-shelf beverage package at check‑in.”

Non-room income generated by amenities and services such as spa, golf, F&B outlets, retail, excursions, and transportation. Examples: 1) “Spa packages increased ancillary revenue per occupied room.” 2) “Shuttle fees and cabanas offset low season ADR.” 3) “Personalized pre‑arrival emails drive ancillary bookings.”

The lowest unrestricted, publicly available rate for a given date and room type, typically dynamic and yield-managed. Examples: 1) “Keep BAR parity across brand.com and OTAs.” 2) “Weekend BAR is up due to event demand.” 3) “Corporate negotiated rates should fence below BAR.”

A government tax applied per occupied room night or as a percentage of room revenue; collected from guests and remitted by the property. Examples: 1) “Quote net of bed tax in proposals.” 2) “We must register for the new county transient tax.” 3) “Packages must show tax on the room component only.”

A smaller, design-led resort (often <150 keys) emphasizing unique identity, personalized service, and experiential offerings. Examples: 1) “Our boutique positioning supports higher ADR.” 2) “Programming is curated rather than standardized brand activations.” 3) “Smaller key count means tighter labor scheduling.”

An investor’s yield metric: NOI ÷ Property Value. Lower cap rates imply higher valuations and perceived lower risk. Examples: 1) “Waterfront resorts trade at lower cap rates.” 2) “Cap rate expansion reduced our appraised value.” 3) “Stabilized NOI supports a 7.0% cap assumption.”

The platform that stores rates, inventory, and restrictions, and distributes them to brand.com, GDS, OTAs, and call centers; often integrated with PMS and channel managers. Examples: 1) “Push the new package to CRS with proper rate fences.” 2) “CRS-PMS mapping errors caused availability mismatches.” 3) “Use CRS to set blackout dates for promo codes.”

The practice and technology for controlling rates, inventory, and content across distribution channels (brand.com, OTAs, wholesalers, metasearch) to avoid errors and ensure parity. Examples: 1) “Close double queens on OTAs, keep open on direct.” 2) “Static wholesale rates leaked online—tighten contracts.” 3) “Automate stop‑sell rules in the channel manager.”

Loans pooled and securitized into bonds backed by commercial properties, including resorts; governed by servicing agreements that affect flexibility. Examples: 1) “Our CMBS covenants restrict additional debt.” 2) “A cash management sweep triggers if DSCR falls.” 3) “Special servicer approval is needed for the PIP.”

Real‑time or frequent rate adjustments based on demand, booking pace, competitor set behavior, and inventory position. Examples: 1) “Tighten restrictions and increase rates for festival weekend.” 2) “Deploy length‑of‑stay pricing to smooth shoulder nights.” 3) “Price fences protect BAR from promo dilution.”

Earnings before interest, taxes, depreciation, and amortization; a proxy for operating cash flow used in valuation and debt covenants. Examples: 1) “Renegotiate management fees to lift EBITDA margin.” 2) “EBITDA multiple expanded with brand reflagging.” 3) “Weather volatility impacted quarterly EBITDA.”

Movable items not part of the building shell, budgeted for replacement cycles and often funded via a reserve (e.g., 4–5% of revenues). Examples: 1) “Guestroom FF&E is due for a soft goods refresh.” 2) “Charge the new treadmills to FF&E reserve.” 3) “Supply chain delays are extending FF&E lead times.”

A contract licensing a brand’s flag, standards, distribution, and support in exchange for fees (royalty, marketing, reservation, frequent guest program). Examples: 1) “The franchise PIP is required at transfer.” 2) “Royalty fee escalates with RevPAR index.” 3) “Ensure area of protection in the franchise deal.”

Computerized reservation networks (e.g., Sabre, Amadeus, Travelport) used by travel advisors and TMCs to access rates and availability. Examples: 1) “Load corporate rates with correct GDS rate codes.” 2) “We saw a pickup from TMCs via GDS after the RFP season.” 3) “Content parity on GDS imagery helps conversion.”

GOP ÷ Available Rooms; profitability metric that captures both revenue and controllable expenses, unlike RevPAR. Examples: 1) “Energy savings improved GOPPAR despite flat RevPAR.” 2) “Labor optimization lifted GOPPAR 200 bps.” 3) “All‑inclusive drives TRevPAR, but watch flow‑through to GOPPAR.”

A set of rooms held for a group at contracted rates and dates, with cutoff dates, attrition, and pick‑up terms. Examples: 1) “Extend the cutoff to drive group pick‑up.” 2) “Attrition penalties apply if they don’t meet 80% pick‑up.” 3) “Audit the block for shoulder night opportunities.”

A systematic preventive approach to food safety used in resort kitchens and banquets to manage biological, chemical, and physical hazards. Examples: 1) “Update HACCP logs for the sushi bar.” 2) “Banquet plating must follow HACCP holding temps.” 3) “Audit critical control points before summer season.”

The governing body for condo‑hotel or vacation ownership units that manages common areas, fees, and rules affecting resort operations. Examples: 1) “HOA approval is required for pool renovations.” 2) “Dues increases fund rising insurance costs.” 3) “Align rental program policies with the HOA bylaws.”

Contract under which an operator manages a resort on behalf of the owner for fees, often with performance tests, budget approvals, and FF&E reserves. Examples: 1) “We tripped the HMA performance test; cure plan required.” 2) “Owner approval needed for the annual capex budget.” 3) “Incentive fees kick in above a GOP threshold.”

The discount rate that sets a project’s NPV to zero; used to evaluate development, renovations, and acquisitions. Examples: 1) “The wellness wing renovation underwrites to a 15% IRR.” 2) “IRR sensitivity to occupancy is high in off‑season months.” 3) “Extend hold period to improve levered IRR.”

Quantifiable measures that track operational and financial performance (e.g., RevPAR index, guest satisfaction, labor cost per occupied room). Examples: 1) “Align department KPIs with GOPPAR targets.” 2) “Daily stand‑ups review three KPIs: ADR, pick‑up, labor hours.” 3) “Tie bonuses to balanced KPIs, not just revenue.”

A third‑party green building rating (Certified to Platinum) recognizing sustainable design and operations; can reduce utility costs and attract eco‑minded guests. Examples: 1) “Pursue LEED Silver for the new wing.” 2) “LEED credits require sub‑metering chilled water.” 3) “Market our LEED status in group RFPs.”

Number of nights a guest or segment stays; managed via minimum and maximum LOS restrictions to optimize shoulder dates and housekeeping loads. Examples: 1) “Apply a 3‑night min LOS over the holiday.” 2) “Extend LOS with fourth‑night‑free promos.” 3) “WALOS improved after adjusting group shoulder rates.”

Capital expenditures required to maintain asset quality and brand standards (roofs, chillers, soft goods), distinct from ROI/expansion capex. Examples: 1) “Prioritize life‑safety capex before amenities.” 2) “Deferred maintenance is hurting guest scores.” 3) “Stage the soft‑goods refresh floor by floor.”

High‑value group demand served by ballrooms, breakout spaces, AV, catering, and group sales. Examples: 1) “Invest in ballroom tech to win MICE RFPs.” 2) “Incentive groups spend heavily on F&B and spa.” 3) “MICE helps fill midweek shoulder periods.”

Operating revenues minus operating expenses before debt service, capital expenditures, and taxes; core metric for valuation. Examples: 1) “Utility savings flow directly to NOI.” 2) “NOI margin expanded 180 bps post‑reflag.” 3) “Storm closures reduced quarterly NOI.”

Proportion of available rooms sold during a period: Rooms Sold ÷ Rooms Available. Examples: 1) “Occupancy hit 82% in peak season.” 2) “Compression nights allow stronger rate gains.” 3) “Watch oversell levels based on expected no‑shows.”

Third‑party booking platforms (e.g., Booking.com, Expedia) that sell rooms for commission, expanding reach but adding distribution cost. Examples: 1) “Shift mix from OTAs to direct to lower CAC.” 2) “Prefer fenced OTA promos to protect BAR.” 3) “Manage content scores to improve OTA ranking.”

Selling more rooms than physical capacity to offset expected cancellations and no‑shows; requires careful forecasting and walk procedures. Examples: 1) “Set oversell limits by room type.” 2) “Secure walk agreements with nearby hotels.” 3) “Monitor same‑day cancellation trends before closing inventory.”

A forward‑looking booking pace analysis comparing on‑the‑books rooms/revenue to prior periods or budgets by date, segment, and channel. Examples: 1) “June pace is 8% behind—launch a targeted offer.” 2) “Group pace is strong; throttle back OTA promos.” 3) “Adjust staffing based on pace by day of week.”

Financial statement summarizing revenues, departmental and undistributed expenses, and profit lines (per USALI standards in hospitality). Examples: 1) “Housekeeping credits improved rooms P&L.” 2) “Benchmark undistributed expenses vs comp set.” 3) “Flow‑through analysis ties revenue to P&L impact.”

Target quantity of operating supplies (linens, amenities, F&B items) required to support operations between ordering cycles. Examples: 1) “Increase towel PAR for peak season.” 2) “Low amenity PAR caused service delays.” 3) “Set separate PARs for villas vs standard rooms.”

Brand‑mandated renovation scope and timelines required at conversion, relicensing, or periodic refresh cycles. Examples: 1) “The PIP includes guestroom casegoods and lobby.” 2) “Negotiate PIP deferrals tied to seasonality.” 3) “Coordinate PIP work with minimal out‑of‑order rooms.”

Core hotel system managing reservations, inventory, check‑in/out, folios, and integrations with POS, CRS, and door locks. Examples: 1) “PMS outage—activate manual check‑in procedures.” 2) “Map new room types in PMS before opening.” 3) “Use PMS data to target upsell offers.”

Practice of maintaining consistent public rates across distribution channels to prevent undercutting and brand erosion. Examples: 1) “Fix parity leaks from wholesalers.” 2) “Geo‑fence mobile rates to preserve parity.” 3) “Parity monitoring alerts flagged a mismatch.”

Formal solicitation from corporate or group buyers seeking negotiated rates, concessions, and space for events or volume travel. Examples: 1) “Submit our 2026 corporate RFPs via GDS tools.” 2) “Bundle spa credits to sweeten the RFP.” 3) “Clarify attrition and cancellation terms in the RFP.”

A mandatory daily fee covering amenities (Wi‑Fi, fitness center, beach chairs, activities); must be transparently disclosed and compliant with local regulations. Examples: 1) “Audit inclusions to justify the resort fee.” 2) “Bundle kids’ activities to enhance fee value perception.” 3) “Disclose fees upfront on all channels.”

Rooms Revenue ÷ Rooms Available, or ADR × Occupancy; core revenue productivity metric. Examples: 1) “Focus on RevPAR index vs comp set.” 2) “RevPAR grew despite lower occupancy due to ADR gains.” 3) “Group displacement analysis is based on RevPAR impact.”

One room occupied for one night; used to measure demand, contracts, and production. Examples: 1) “The conference generated 1,200 room nights.” 2) “Tour series guarantees 300 room nights per month.” 3) “Track room nights by segment for mix analysis.”

Periods between peak and low seasons with moderate demand; targeted for promotions and group base building. Examples: 1) “Offer third‑night‑free in shoulder months.” 2) “MICE helps stabilize shoulder season occupancy.” 3) “Schedule PIP work in the spring shoulder.”

A benchmarking report comparing your hotel’s occupancy, ADR, and RevPAR to a competitive set and market, daily/weekly/monthly. Examples: 1) “Our RevPAR index hit 112 in July.” 2) “Adjust comp set to reflect new beachfront competitor.” 3) “Use STR day‑of‑week trends for rate strategy.”

A shared ownership model selling time‑based usage (weeks or points) in resort accommodations, with exchange options and HOA dues. Examples: 1) “Points‑based timeshare improves flexibility for owners.” 2) “Coordinate hotel inventory with the timeshare rental pool.” 3) “Sales galleries must align with resort guest flow.”

Total hotel revenue (rooms, F&B, spa, golf, ancillary) ÷ Rooms Available; measures total commercial performance beyond rooms. Examples: 1) “All‑inclusive strategy increased TRevPAR.” 2) “Add cabanas and day passes to lift TRevPAR.” 3) “Cross‑selling boosted TRevPAR per stay.”

Encouraging guests to purchase higher‑priced options or add‑ons (room upgrades, experiences, F&B packages) to increase revenue per stay. Examples: 1) “Automate pre‑arrival upgrade offers.” 2) “Train front desk on value‑based upselling.” 3) “Bundle spa and dining for anniversary stays.”

A branded vacation ownership program offering points or weeks across a portfolio of resorts, with owner benefits and exchange networks. Examples: 1) “The club drives repeat visitation and ancillary spend.” 2) “Offer owners priority windows and discounts.” 3) “Align club inventory with peak demand.”

A guest holding a valid reservation who is relocated to another property due to oversell or out‑of‑order rooms; requires compensation and seamless handling. Examples: 1) “Activate the walk matrix for oceanfront kings.” 2) “Provide transport, first night free, and upgrade at sister hotel.” 3) “Track walk incidents and root causes.”

Data exchange standard enabling direct connections between CRS/PMS and OTAs/metasearch for rates, availability, reservations, and content. Examples: 1) “Implement XML to reduce manual extranets.” 2) “Mapping errors in XML caused failed bookings.” 3) “Use XML push for real‑time inventory updates.”

The practice of controlling inventory and price to maximize revenue, focusing on demand forecasting, fences, and restrictions; precursor to revenue management. Examples: 1) “Close discounts on compression nights.” 2) “Use minimum LOS to protect high‑yield weekends.” 3) “Displace low‑rated groups for higher‑yield transient.”

Administrative relief allowing a deviation from zoning rules (setbacks, height, density), often critical for resort development on coastal or mountainous sites. Examples: 1) “Seek a variance for beachfront setback.” 2) “Height variance enables better ocean views.” 3) “Community engagement is key to variance approvals.”