Demand drivers
Performance depends on a balanced view of business, leisure, group and event demand.
- Market segmentation and seasonality
- Air access and demand generators
- Events, universities and healthcare
- Competitive set and new rooms
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Real estate powered by daily operations
Hospitality
Hospitality combines location and physical product with a service business whose revenue changes every day.
Underwriting lens
Room revenue is only the start of a hotel operating model.
- Occupancy, ADR and RevPAR
- Departmental and undistributed expenses
- Brand, franchise and management fees
- Renovation and furniture reserves
Execution risks
Operating volatility requires liquidity and experienced management.
- Demand shocks and seasonality
- Labor and service execution
- Brand standards and renovation cycles
- Management alignment