An arrangement where an operator runs a hotel for a fee while the owner retains ownership.
Related terms
- Market penetration index (MPI)
A hotel's occupancy divided by its competitive set's occupancy, indexed to 100; it isolates share of demand (heads in beds) separately from rate performance.
- Occupancy
The share of available rooms sold in a period.
- Pipeline (hotel)
The set of hotels signed, under construction, or approved but not yet open in a market; a heavy pipeline signals future supply pressure on occupancy and rate,…
- Rack rate
A hotel's published, undiscounted room rate before any corporate, negotiated, or promotional deal; almost no guest pays it, but it sets the ceiling against whi…
- Ramp-up
The period after opening during which a hotel builds toward stabilised performance.
- RevPAR
Revenue per available room - occupancy multiplied by ADR; the headline hotel metric.
- RevPAR index
A hotel's revenue per available room divided by that of its competitive set, indexed to 100; above 100 means the hotel is capturing more than its fair share of…
- Seasonality
The variation in demand across the year, critical in leisure and tourism markets.